Quick Take

• Open interest of BTC futures in centralised exchanges reached a record high of $31.4 billion on 6 June; Crypto.com receives Virtual Asset Service Provider Registration from the Central Bank of Ireland; Ripple partners with National Bank of Georgia to digitise local economy.

• U.S. Spot Bitcoin ETFs had nineteen straight days of inflows, which marks the longest streak of net inflows since the ETFs launched. They also marked their second largest daily net inflow of $887 million on 4 June. Weekly net inflow (past five trading days) totaled US$1,829 million, up from $423 million net inflow the week before. Grayscale Bitcoin Trust ETF’s (GBTC) weekly net outflow settled at $31 million. 

• On the macro side, Canada became the first G7 nation to cut interest rates to 4.75% from 5%, in line with expectations. The European Central Bank also cut interest rates for the first time in five years by 0.25% to 3.75%, in-line with expectations. On the other hand, the U.S. announced larger-than-expected nonfarm payrolls of 272,000 in May, signaling a strong labour market and potentially delaying the Fed’s decision to cut interest rates. 

• Notable updates: Stacks (STX) announced Nakamoto progress update; the Crypto.com App listed Taiko (TAIKO), Nosana (NOS), and Loaf Token (LOAF).

• Notable events in the coming week: U.S. Fed and Japan’s BoJ interest rate decision.

Weekly Market Index

Price and volume indices increased slightly by +0.32% and +1.21% last week, while volatility index decreased by -16.19%. Volatility changes were led by ONDO (-44.43%) and ETH (-38.86%).

Check price

Chart of the Week

Aggregated open interest of BTC futures in centralised exchanges reached a record high of $31.4 billion on 6 June since August 2020. Open interest (OI) is used to measure the total value of all outstanding futures contracts across exchanges and indicate market activity and trader sentiment around one asset. This coincided with a surge in BTC price mid-last-week to over $71,000. 

At the same time, U.S. Spot Bitcoin ETFs also saw their second largest day of net inflow with $887 million on 4 June, setting a record streak of nineteen consecutive days of net inflow since launch. 

Weekly Performance

BTC increased slightly by +0.9% while ETH decreased by -2.4% in the past seven days. The price action for other selected top market cap tokens was mostly negative. LDO (-18.5%) led the drop while INJ (+15.0%) led the gains, coinciding with INJ’s release of its first comprehensive paper on tokenomics.

Selected key categories were mostly down in terms of market capitalisation changes in the past seven days, with the exception of Layer-1.

Notable Token Updates

News Highlights

• Crypto.com receives Virtual Asset Service Provider (VASP) Registration from the Central Bank of Ireland. This approval follows a thorough review of Crypto.com’s commitment to compliance, and will enable Crypto.com to further its offering in Ireland, including crypto to fiat exchanges and fiat wallets.

• Ripple partners with the National Bank of Georgia (NBG) to explore ways to digitise the local economy. Ripple is currently serving as the technological partner of NBG, for its pilot CBDC project named digital lari.

• Project mBridge, a multi-central bank digital currency (multi-CBDC) initiative by the Bank for International Settlements (BIS), is inviting private sector participation as it enters the MVP stage. The project aims to create a blockchain to address inefficiencies in cross-border fiat payments. Central banks of Saudi Arabia, China, Hong Kong, Thailand, and the United Arab Emirates are amongst the participants. 

• The Volatility Shares 2x Ether ETF, launched by Volatility Shares, will begin trading on 4 June. This is the first leveraged Ether ETF in the U.S., launched around one year after the Volatility Shares 2x Bitcoin fund launched in June 2023.

• Paxos International announced the launch of an interest-bearing stablecoin, Lift Dollar (USDL) that will not be available in the United States. USDL will be regulated by the Abu Dhabi Global Market and backed 1:1 by liquid U.S. government securities and cash equivalents. At launch, USDL will be available in Argentina.

• Thailand SEC approved its first Spot Bitcoin ETF limited to institutional investors. One Asset Management (ONEAM) is expected to launch its ETF, ONE Bitcoin ETF Fund of Funds Unhedged and not for Retail Investors (ONE-BTCETFOF-UI), between 31 May and 6 June. 

Recent Research Reports

• Points Farming – Development, Significance, and Controversies: Points farming has become ubiquitous in crypto recently. Our report looks into its development and two examples Friend.tech and EigenLayer, before delving into its significance and controversies.

• SocialFi – Business Models and New Developments: SocialFi in Web3 empowers users with enhanced data control and direct creator compensation without intermediaries, leveraging blockchain for better user engagement and innovative monetisation methods. 

• Alpha Navigator: Quest for Alpha [May 2024]: Asset classes were all up in May. Cryptocurrencies led the increase, which coincided with US SEC’s approval of Spot Ether ETFs.

Recent University Articles

• What Is Arweave and How to Buy AR: Arweave utilises blockweave architecture and Proof of Access consensus to ensure permanent and sustainable data storage. Here’s how it works.

• Crypto Fear & Greed Index: What It Is and How to Use It: Learn all about the crypto Fear & Greed Index that measures how human emotions affect and interfere with market dynamics.

• What Is Internet Computer Protocol and How to Buy ICP Token: Internet Computer Protocol aims to revolutionise how blockchains and dapps interact. Here’s how the popular ICP crypto token works.

Catalyst Calendar

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