May 26, 2024
Weekly: Latest Updates and Insights
SEC Approves Eight Spot Ethereum ETFs, Recognizing ETH as a Commodity: On Thursday evening, the U.S. Securities and Exchange Commission (SEC) approved Form 19b-4 filings for eight issuers of Ethereum ETFs, including major firms like BlackRock, Fidelity, and Grayscale, marking a significant regulatory milestone. This decision indicates the SEC’s recognition of ETH as a commodity, contrasting with its previous stance, and while trading cannot commence until S-1 registration statements are effective, the approval is seen as a step toward clearer regulations in the cryptocurrency space.
OKX Predicts $500 Million Institutional Investment in Ethereum ETF Following SEC Approval: OKX analysis suggests that if the SEC approves a spot Ethereum ETF, institutional investors could inject $500 million in the first week, with Global Chief Commercial Officer Lennix Lai stating that this approval could be more significant than that of a Bitcoin ETF. Lai highlights the potential for Ethereum to become a tradable proxy within traditional finance, which could ignite a new wave of institutional demand and drive ETH prices to new all-time highs, especially given the recent 24% surge in Ethereum’s value.
Market Reactions to SEC’s Ethereum ETF Approval: Staking Concerns and Institutional Interest: Bloomberg reports that many in the crypto market view the recent modifications to spot Ethereum ETF applications, particularly the removal of staking plans by issuers like Fidelity and Ark, as beneficial for the Ethereum blockchain but detrimental to the ETF products themselves. The lack of staking functionality has led some market participants to argue that the appeal of these ETFs is diminished compared to directly purchasing stakable Ethereum, with Fox reporter Eleanor Terrett noting that issuers like CoinShares and Valkyrie have opted not to apply for spot ETH ETFs due to these limitations, while Hong Kong considers allowing staking for its Ethereum ETFs.
Haseeb Qureshi Predicts Biden Will Ease Crypto Regulations Ahead of Election: Dragonfly partner Haseeb Qureshi has suggested that President Biden may soften his cryptocurrency policies before the upcoming election to avoid losing votes in a competitive race, with the recent approval of an Ether ETF serving as the first indication of this shift. He anticipates that while this won’t be a complete policy reversal, it could lead to a more favorable environment for the crypto community as other institutions may also relax their regulations in the coming months.
Trump Campaign Embraces Cryptocurrency Donations to Build a ‘Crypto Army’: The Trump campaign has announced its acceptance of cryptocurrency donations, aiming to rally support against what it describes as “socialistic control” and to build a “crypto army” of supporters. This strategic move allows contributions through Coinbase Commerce, positioning Trump in opposition to critics like Sen. Elizabeth Warren, who has advocated for restrictions on cryptocurrencies, while also seeking to engage younger, tech-savvy voters ahead of the 2024 election.
U.S. House Passes Landmark FIT21 Bill to Regulate Crypto Markets with Bipartisan Support: The U.S. House of Representatives has approved the Financial Innovation and Technology for the 21st Century Act (FIT21) with a 279-136 vote, marking a significant legislative victory for the cryptocurrency industry. The bill aims to establish a regulatory framework for digital assets, designating the Commodity Futures Trading Commission (CFTC) as the primary regulator, although its future in the Senate remains uncertain amid mixed support.
Brazil’s Central Bank to Introduce Cryptocurrency Regulatory Framework by Year-End: The Central Bank of Brazil has announced plans to unveil a regulatory framework for cryptocurrencies by the end of 2024, with the development process divided into several phases. This initiative aims to provide clarity for token creators and virtual asset service providers, although the timeline for implementation has been pushed back from previous expectations.
Vitalik Buterin Outlines Vision for Unified Layer 2 Ecosystem and Decentralized Cross-L2 Asset Transfers: Vitalik Buterin has emphasized the need for an open, decentralized protocol to facilitate swift asset transfers between Layer 2 (L2) solutions and integrate this functionality into standard wallet interfaces. He highlighted the current user experience challenges, noting that while improvements have been made, the L2 ecosystem still lacks the cohesive feel of a unified Ethereum, and he identified essential features like token transfers and Ethereum Name Service (ENS) integration as priorities for development.
Uniswap Defends Itself Against SEC Enforcement Action in 43-Page Submission: Decentralized finance platform Uniswap Labs has responded to the Securities and Exchange Commission’s Wells notice, arguing that the SEC lacks the authority to regulate bitcoin, ether, or stablecoins traded on the Uniswap protocol and that bringing legal action would discourage innovation in the crypto industry. Uniswap emphasized that its decentralized nature complicates the SEC’s push for increased transparency and regulatory oversight, and stated that Congressional intervention is needed to regulate the crypto industry.
Coinbase to Launch Retail-Sized Futures Contracts for Gold and Oil: Coinbase has announced the upcoming launch of retail-sized futures contracts for gold and oil, set to begin on June 3rd, according to Coinbase Derivatives. The new contracts, which will be sized at 10 barrels of oil and 1 troy ounce of gold, aim to provide enhanced trading opportunities in traditional markets while continuing to focus on crypto derivatives.
Magic Eden Leverages Coinbase for Efficient Small Output Handling in Bitcoin NFT Marketplace: Magic Eden, the largest Bitcoin NFT marketplace, has announced its collaboration with Coinbase to enhance the handling of small outputs, improving transaction efficiency for users. This integration aims to streamline the buying and selling processes of Bitcoin NFTs, making it easier for collectors and creators to engage with the platform.
Fundraising
Farcaster Announces $150 Million Fundraise and Surge in Activity: Farcaster has successfully raised $150 million in a funding round led by Paradigm, with participation from notable investors including a16z crypto and Haun, following a significant increase in network activity since becoming permissionless last October. The platform has seen 350,000 paid sign-ups and a 50x growth in usage, with hundreds of developers actively building applications on the protocol.
Sentinel Launches “Sentinel Shield dVPN” App for Android, Expanding Decentralized Privacy Solutions: Sentinel has released its “Sentinel Shield dVPN” app for Android devices, with plans for Apple iOS support to follow, marking its first flagship product since transitioning to a Cosmos-based chain. The open-source app aims to democratize access to secure and private internet connections through a peer-to-peer network, enhancing user privacy and reducing costs associated with traditional VPN services.
Plume Network Raises $10 Million in Seed Funding to Enhance RWA Infrastructure: Plume Network, a modular Layer 2 network focused on integrating real-world assets (RWAs) on-chain, has successfully secured $10 million in a seed funding round led by Haun Ventures, with participation from several notable investors. The funding will support the development of its platform, which aims to provide a compliant infrastructure for various asset classes, allowing users to earn yield, borrow, lend, and trade RWAs efficiently.
Fantom Foundation Launches Sonic Foundation with $10 Million Funding Round: The Fantom Foundation has announced the establishment of the Sonic Foundation and Sonic Labs, aimed at managing governance and fostering decentralized application development on the upcoming Sonic blockchain, which promises high-performance capabilities and sub-second finality. This initiative is backed by a successful $10 million funding round led by Hashed, with contributions from various investors, to enhance liquidity and attract users from Ethereum and other Layer 2 networks.
Tradeweb Partners with Alphaledger to Develop Blockchain Solutions for Fixed Income Markets: Tradeweb Markets has entered into a collaboration with blockchain startup Alphaledger to jointly develop new products utilizing Alphaledger’s blockchain technology, enhancing the trading of fixed income securities. This partnership follows Tradeweb’s recent investments in blockchain initiatives, further solidifying its commitment to leveraging innovative technologies in the financial sector.
Decentralized governance infrastructure Dora Factory announced the completion of a new $10 million strategic financing round. link
Dora Factory Raises $10 Million in Strategic Funding to Advance Decentralized Governance Infrastructure: Dora Factory, a leading decentralized governance infrastructure provider, has secured $10 million in a strategic funding round led by prominent investors including Nomad Capital, No Limit Holdings, and Singapore’s UOB-Signum Blockchain Fund. The funding will accelerate the adoption and expansion of Dora Factory’s technology stack, which includes innovative solutions for decentralized governance, public goods funding, and privacy-preserving voting.
Mighty Jaxx Secures $11 Million in Series A Extension to Expand Globally: Mighty Jaxx, a Singapore-based collectibles and lifestyle brand, has raised an additional $11 million in its Series A funding round, bringing the total to $16 million, to drive its growth in the United States and Europe. The company plans to use the funds to expand its team, enhance its platform, and further develop its product offerings to cater to the growing demand for high-quality collectibles and lifestyle products worldwide.
Stripchain Raises $10 Million to Enhance Blockchain User Experience: Stripchain has successfully secured $10 million in funding to develop its interoperability protocol aimed at simplifying the blockchain user experience by enabling chain abstraction. The funding round, led by Sora Ventures and supported by several notable investors, will help the startup create a system that allows developers to perform cross-chain transactions without needing to understand the underlying blockchain complexities.
Kelp DAO Raises $9 Million in Private Token Sale, Valued at $90 Million: Kelp DAO, an Ethereum liquid restaking platform, has raised $9 million in a private token sale, achieving a fully diluted valuation of $90 million. The funding round, led by SCB Limited and Laser Digital, will support Kelp’s expansion into liquid restaking services for other blockchains, including Bitcoin and Solana, with plans to launch these services in the third quarter of this year.
ELFi Protocol Secures $5 Million in Strategic Financing and Launches on Arbitrum Testnet: ELFi Protocol, a decentralized derivatives trading platform, has successfully raised a total of $5 million through two rounds of strategic financing, led by IDG Capital and KuCoin Ventures. The platform has also launched on the Arbitrum testnet, where it is currently conducting an open beta test of its Genesis NFTs, aiming to enhance its trading functionalities and risk management systems.
Blockless Raises $8 Million in Pre-Seed and Seed Funding for Decentralized Computing Network: Blockless, a decentralized physical infrastructure network (DePIN) project focused on providing computing power support, has raised $8 million in pre-seed and seed funding rounds led by NGC Ventures, M31 Capital, and Frachtis. The project plans to launch its testnet in the coming weeks and its mainnet and native token, BLESS, in the third quarter of this year, aiming to enable users to automatically provide computing power to their applications via its network.
Focus Tree Completes $2 Million Seed Funding Round: Web3 productivity application Focus Tree has successfully completed a $2 million seed funding round, as announced on its official X platform. The app aims to combat social media addiction by rewarding users for minimizing phone usage, targeting a market of over 250 million students looking to enhance their productivity.
FantaGoal Secures $3 Million in Funding for Web3 Soccer Game Development: Web3 soccer game FantaGoal has announced the completion of a $3 million financing round, led by IDG Capital, with participation from KuCoin Ventures and other notable investors. The funding will support the development of FantaGoal’s innovative football ecosystem, which combines elements of fantasy sports with blockchain technology, aiming to enhance user engagement and create a seamless transition for traditional football fans into the Web3 gaming space.
Binance Labs Invests in Aevo to Propel Layer 2 Blockchain Innovations: Binance Labs has announced its investment in Aevo, a platform focused on enhancing Layer 2 blockchain solutions, to support the future of decentralized applications and scalability. This partnership aims to foster innovation in the blockchain space, enabling developers to build more efficient and user-friendly applications on Layer 2 networks.