Bitcoin ETFs in the US See $62 Million in Net Inflows Despite Low Trading Volume
On August 19, 2024, Bitcoin ETFs in the US recorded $61.98 million in net inflows, while total trading volume dropped to $779.87 million, the lowest since February. The decline in volume, significantly below August’s $5.24 billion, is attributed to weak market sentiment and anticipation of new information from the Fed meeting.
Spot ether ETFs saw their lowest trading volume since launch, with $124 million on Monday. Net outflows totaled $13.52 million, primarily from Grayscale (AMEX:ETHE), which saw $20.30 million in outflows. Grayscale’s mini trust (AMEX:ETH) had $4.92 million in net inflows, while Bitwise’s ETF (AMEX:ETHW) saw an increase of $1.87 million.
In the past 24 hours, Bitcoin (COIN:BTCUSD) slightly fell to around $59,410 after hitting $61,491 the previous day. Most of the over $50 million liquidation in the market occurred on OKX and Binance, with long positions being the most affected.
According to a CryptoQuant survey, Bitcoin needs more demand to reach new all-time highs. The analysis indicates that whale accumulation has dropped from 6% in February to just 1% currently, with demand metrics remaining weak. While whales have reduced their acquisitions, permanent holders continue to accumulate BTC, increasing their exposure at a record rate.
Ethereum (COIN:ETHUSD) fell 1.4% in the last 24 hours to $2,602, while Solana (COIN:SOLUSD) declined by -0.2%, priced at $144. On the other hand, BNB (COIN:BNBUSD), Dogecoin (COIN:DOGEUSD), and Ripple (COIN:XRPUSD) managed to maintain recent gains.
FLOKI token and Valhalla game to gain visibility in Premier League
The FLOKI token (COIN:FLOKIUSD) and the Valhalla game will be promoted on English Premier League properties as part of a one-year contract, aiming to increase the visibility of the $1.3 billion token. FLOKI will be the cryptocurrency partner of Nottingham Forest and will have advertisements at Sunderland AFC. After the announcement, FLOKI rose 7.7% to $0.000126. Floki expects these partnerships to enhance brand recognition and boost its ecosystem.
State Street launches digital asset platform for institutions
State Street (NYSE:STT), with $4.3 trillion in assets under management, announced on August 20 a new digital asset platform for institutional clients. In partnership with Taurus, the platform will offer tokenization, custody, and node management services. The collaboration aims to streamline the issuance and maintenance of digital assets such as bonds and funds. Institutional interest in digital assets is growing, with Bitcoin and Ether ETFs attracting more investment, while State Street strengthens its position in the digital assets market.
Chainlink faces bearish challenges due to lack of activity and negative indicators
Chainlink is facing difficulties due to the lack of network activity and bearish signals. The NVT ratio reached its highest level in nearly five years, suggesting that the network’s value may be excessive relative to transaction volume. Additionally, the Relative Strength Index (RSI) is negative, indicating weak momentum. The price of LINK (COIN:LINKUSD) is at $10.21, struggling to surpass $11.00, and has accumulated -27% losses for the month.
Binance avoids $2.4 billion in fraud losses in 2024
Binance, the largest cryptocurrency exchange by volume, prevented potential losses of over $2.4 billion in the first seven months of 2024. Of these, $1.1 billion (45%) were related to suspicious fraud withdrawals. Recently, Binance recovered $73 million stolen and strengthened its global compliance practices.
Coinbase’s Base hits record active addresses, boosts “Onchain Summer” campaign
Coinbase’s layer 2 solution, Base, reached a record high of 4 million active addresses last week. This milestone comes during the “Onchain Summer” campaign, which encourages building on the network. In 2023, the event brought 700,000 NFTs and $242 million in transactions. In 2024, Base allocated 600 Ether ($2 million) to reward developers and collaborated with AtariX to bring classic games to the blockchain, despite questions about true onchain integration.
Clearpool launches Ozean blockchain in the Optimism ecosystem
Clearpool is developing Ozean, a layer 2 blockchain integrated into the Optimism (COIN:OPUSD) ecosystem and powered by Caldera. Utilizing the OP Stack, Ozean aims to connect real-world assets to DeFi, offering native yield through staking with the CPOOL token (COIN:CPOOLUSD). Clearpool, which also launched the stablecoins USDX and ozUSD, seeks to attract institutional investors, expanding its presence in DeFi.
Tether boosts liquidity with $1 billion USDT issuance on TRON
Tether, the largest stablecoin issuer, minted $1 billion in USDT (COIN:USDTUSD) on the TRON blockchain, potentially raising its market cap to $117 billion. The tokens were minted on August 20 and directed to Tether’s treasury address. Although the circulating amount on TRON seems unchanged, this could strengthen TRON’s position as a leader in USDT, surpassing Ethereum and other networks. Tether’s CEO confirmed that the market capitalization is now $117 billion.
MangoDAO approves SEC settlement to resolve securities violations
MangoDAO, of the Solana-based DeFi protocol, approved a proposal to resolve a securities violation case with the SEC. On August 19, the DAO agreed to pay $223,228, destroy MNGO tokens, and halt trading of these tokens in the US. The proposal received over 110 million favorable votes but neither admits nor denies wrongdoing. Mango Markets, which was exploited in 2022, faces ongoing challenges and regulatory investigations.
BitFuFu reports strong revenue growth but faces high mining costs
BitFuFu (NASDAQ:FUFU) reported a 69.7% increase in revenue in Q2 2024, reaching $129.4 million, with significant growth in cloud mining solutions and self-mining of Bitcoin. However, net income fell to $1.3 million, impacted by an unrealized loss of $16.4 million in Bitcoin. The cost to mine one Bitcoin rose to $51,887, compared to $19,344 in 2023, reflecting higher operational expenses and the Bitcoin halving. Mining capacity expanded 62.5%, reaching 24.7 EH/s.
US-listed Bitcoin miners have financial edge over international competitors
According to a Bernstein report, US-listed Bitcoin miners have a competitive advantage over their unlisted counterparts due to better access to financing. This allows them to raise capital more easily, which is crucial in a capital-intensive industry. Recently, companies like Marathon Digital (NASDAQ:MARA) and Riot Platforms (NASDAQ:RIOT) announced large capital offerings, highlighting this advantage. Bernstein believes these listed miners are well-positioned to lead industry consolidation and predicts BTC prices could reach $200,000 by 2025.
Metaplanet expands Bitcoin investments with $3.4 million purchase
Metaplanet (TSX:3350) purchased 57,273 BTC for approximately $3.4 million (¥ 500 million), increasing its total to 360,368 BTC, valued at over $23 million. The acquisition, funded by a loan from MMXX Ventures, completes its ¥ 1 billion investment plan. The company aims to raise $70 million for future acquisitions, with $58.76 million earmarked for more Bitcoin.
Nigeria SEC plans to license crypto exchanges to enhance regulation
The Nigerian Securities and Exchange Commission (SEC) plans to issue licenses for cryptocurrency exchanges to improve the regulatory environment. In June, the SEC amended its rules for digital assets and trading platforms. Director-General Emomotimi Agama expects changes to happen swiftly, highlighting the fintech sector’s potential in the country. Nigeria, one of the fastest-growing cryptocurrency economies, is adjusting after the lifting of banking restrictions and facing recent regulatory challenges.
Binance returns to India facing regulatory and tax challenges
Binance returned to India, coinciding with the 78th Independence Day of the country, seeking to revitalize its presence in the cryptocurrency market. However, the exchange faces a tax demand of $86 million, in addition to penalties for violating anti-money laundering regulations. Binance has taken steps to align with local requirements, including paying fines and committing to strict tax reporting. Despite uncertainties, experts see potential for innovation and increased competition in the Indian market.
Ledn secures $50 million Bitcoin-backed loan from Sygnum
Ledn, a cryptocurrency lending platform, secured a $50 million syndicated loan, backed by Bitcoin, from Swiss bank Sygnum. This financing will strengthen Ledn’s retail lending operations, offering greater access to capital and solidifying Bitcoin’s legitimacy as an asset. With notable growth in its retail lending, Ledn plans to use this liquidity to expand its financial offerings, promoting transparency and security.
YeagerAI raises $7.5 million for GenLayer
YeagerAI, the developer of the decentralized AI network GenLayer, raised $7.5 million in an initial round led by North Island Ventures, with participation from various investors, including Node Capital and Arrington Capital. GenLayer uses smart contracts and language models to create dynamic solutions that respond to external data, innovating in subjective decision consensus and delegated proof of stake.