Quick Take

• BTC and ETH balances on centralised exchanges saw a three-year low; SEC Chairman sees U.S. Spot Ether ETF S-1 approvals in summer 2024; Australian Securities Exchange approved first spot Bitcoin ETF 

• U.S. Spot Bitcoin ETFs broke their streak of inflows last week, with a weekly net outflow (past five trading days) totaling US$581 million, compared to a $1,829 million net inflow the week before. Grayscale Bitcoin Trust ETF’s (GBTC) weekly net outflow settled at $274 million. 

• On the macro side, the U.S. CPI held flat in May and increased 3.3% year-on-year, lower than expectations. The U.S. Fed kept interest rates unchanged, in-line with expectations while signaling that only one rate cut is expected in 2024. The Bank of Japan kept interest rates unchanged at 0%-0.1%, and is expected to announce a detailed plan on bond tapering in the July meeting. 

• Notable updates: EigenLabs, company behind EigenLayer (EIGEN), acquired Rio Network; Artificial Superintelligence Alliance (ASI) postponed its ASI token merger to July; the Crypto.com App listed Toncoin (TON), Pirate Nation (PIRATE), Nyan Heroes (NYAN), Aethir (ATH) and io.net (IO).

• Notable events in the coming week: Interest rate decisions from Australia’s RBA, China’s PBoC, United Kingdom’s BoE, and Switzerland’s SNB.

Weekly Market Index

Price and volume indices decreased by -4.10% and -4.14% last week, while volatility index increased significantly by +145.31%. Volatility changes were led by ONDO (+243.74%), ETH (+230.21%) and BTC (+139.18%). 

Check price

Chart of the Week

Data suggested that both BTC and ETH balances in centralised exchanges hit a three-year low. As of 16 June 2024, total BTC balance was 2.8 million ($188 billion), down 15% from three years ago. The total ETH balance was 16.7 million ($60 billion), down 49% from three years ago. 

Withdrawal from centralised exchanges may be interpreted as bullish as investors may have less tendency to trade their BTC or ETH balances for other assets. 

Weekly Performance

BTC and ETH decreased by -4.5% and -2.9%, respectively, in the past seven days. The price action for all selected top market cap tokens was negative except LDO (+12.2%). ICP (-14.6%) led the drop.

Selected key categories were all down in terms of market capitalisation changes in the past seven days, with the artificial intelligence category leading the drop.

Notable Token Updates

News Highlights

• U.S. SEC Chairman  Gary Gensler sees U.S. Spot Ether ETF S-1 approvals to occur in summer 2024. He made this comment during a hearing in the U.S. Senate Committee on Appropriations on 13 June. 

• Australian Securities Exchange (ASX) approved its first spot Bitcoin ETF. VanEck will be the issuer of the ETF, named VanEck Bitcoin ETF (VBTC), and will commence trading on 20 June. 

• Fidelity International tokenised shares of its money market fund through JPMorgan’s Tokenized Collateral Network (TCN). TCN sits on Onyx Digital Assets, JPMorgan’s private blockchain network based on Ethereum.

• MicroStrategy announced pricing of a new $700 million convertible senior notes offering for Bitcoin purchases and corporate purposes. The offering was upsized from the previously announced $500 million to $700 million.  

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. 

• Research Roundup Newsletter [May 2024]: We present to you our latest issue of Research Roundup, featuring our deep dives into points farming and SocialFi, and many more.

Recent University Article

• 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 Streamr (DATA) and How to Buy It: Streamr democratises the Web3 data economy by allowing users to collectively monetise their data. Here’s how it works.

Catalyst Calendar

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