$MMX Community Rewards, Solana Partnerships, Biden Vetoes Pro-Crypto Bill, Ethereum ETF Concerns, Market Update
M2 UPDATES?
MMX Community Rewards Week 3?
Week 3 of the MMX Community Rewards 2.0 program is live! As we remain committed to empowering MMX DeFi users, this week's focus is on enhancing community engagement and participation. The greater the number of participants, the higher the rewards for everyone.?
Join us for another rewarding week:?
Complete a few simple tasks to secure your rewards.?
Web2 Teams Up with Solana??
Solana addresses a critical challenge in the crypto space: slow and costly transactions. Its innovative architecture enables rapid and cost-effective processing of large transaction volumes, attracting both users and developers. Its emphasis on speed and affordability is complemented by the seamless incorporation of stablecoins, simplifying crypto payments to the ease of a tap.?
This has caught the eye of payments-focused institutions that view blockchain, mainly Solana, as their next frontier for innovation:?
Biden Vetoes Pro-Crypto SAB 121 Bill??
President Joe Biden has vetoed the pro-crypto SAB121 bill, stating, "My administration will not support measures that jeopardize the well-being of consumers and investors."?
The bill aimed to set clear accounting standards for firms that handle crypto, offering a defined path for institutions wanting to provide these services. Critics argue this would concentrate too much control in the hands of a few well-regulated entities, increasing risks for investors and the industry as a whole.?
Last week's approval of Ethereum ETFs was seen as a sign of a potentially more crypto-friendly stance within the Democratic party. The industry was hopeful that regulatory barriers were easing, making Biden's veto of SAB121 particularly disappointing for the crypto community. Criticism came from various parts of the financial sector, including Wall Street banks, which collectively stated that this move "threatens the industry's ability to provide its customers with safe and sound custody of digital assets."?
Spot Ethereum ETFs: Excitement with a Side of Caution?
The crypto community is eagerly anticipating the launch of Spot Ethereum ETFs. However, there is a significant concern that might dampen the enthusiasm. Grayscale could neutralize a substantial part of the inflows with its closed-end fund ETHE, which currently holds more than $11B in Ether. Investors fear that a scenario similar to Grayscale’s GBTC situation could unfold. Notably, the GBTC exodus resulted in the sale of over 300,000 BTC within just five months of the spot Bitcoin ETF being live, exerting significant selling pressure on Bitcoin's price. ?
If ETHE experiences a similar percentage of asset outflows as the Grayscale Bitcoin Trust (GBTC) did—around 47%—this could lead to approximately $5B in outflows over the first four months. ?
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Why would investors sell their ETHE holdings? ?
However, analysts suggest that the possibility of another widespread sell-off remains uncertain. Grayscale is determined to avoid this situation happening again, recognizing its loss of competitive ground. They have applied for new "spin-off ETFs" featuring highly competitive fees and are actively exploring fee reductions for their primary ETF to persuade investors to stay. ?
Market Updates??
Bitcoin and Ethereum are showing positive momentum on the 7-day chart. Bitcoin is currently trading above $71,000, standing just 4% below its ATH. Similarly, Ethereum is consolidating above the $3,700 mark marking higher lows and approaching the psychological $4,000 line. The total crypto market cap has added $120B only in the last week, coinciding with a rise on the Fear & Greed index of 6 points to reach 66 (Greed). ?
Digital Asset investment products registered the 4th consecutive week of inflows with $185M, closing May with $2B net positive. Bitcoin ETFs account for most of the volume (78%), although Ethereum gains traction with more than $33M in inflows. ?
Quick News?
Thailand Approved Its First Spot Bitcoin ETF: Thailand's regulatory authorities have taken note of the increasing interest from local institutions in integrating Bitcoin into their investment portfolios. This development aligns Thailand with other jurisdictions, including Hong Kong, Australia, the UK, and the US.?
Van Eck CEO Predicts Bitcoin Will Achieve Half the Market Cap of Gold - Jan VanEck has forecasted that within the next 5 to 10 years, Bitcoin could potentially reach at least 50% of Gold's market capitalization ($8T). This projection suggests a significant increase, approximately 5.7 times the current market cap of Bitcoin.?