Good morning!
Here’s what’s making headlines today:
- Major cryptocurrencies took a hit overnight, dipping 3-6%. Bitcoin is sitting at $115,000.
- Gemini plans to file a ticker, details of which will be announced later.
- BTCS is set to be the first Ministry of Finance to launch “Vivid” and offer blockchain dividends.
- Adam Back’s Bitcoin Standard Treasuryco will become accessible for 30,000 BTC plus $1.5 billion.
- Light Weekend Eco-Ray is gearing up to challenge the latest launchpad contender.
🏦 Wall Street’s Enthusiasm for Bitcoin via ETF
Some of the largest financial institutions have invested billions into Bitcoin funds. Yet, it seems that the average fund manager remains cautious. What’s going on here?
📌 What’s Happening?
During the second quarter, Wall Street ramped up its Bitcoin investments significantly, channeling billions into spot ETFs like BlackRock (IBIT) and various crypto stocks.
SEC filings indicate that major players such as Brevan Howard, Goldman Sachs, and even the Norwegian Sovereign Wealth Fund have significantly increased their Bitcoin positions, indicating more comfort with BTC.
Here are some noteworthy moves:
- Brevan Howard: Their holdings in IBIT nearly doubled to 37.9 million shares, valued at around $2.6 billion.
- Goldman Sachs: Reported an accumulation of $3.3 billion in IBIT and Fidelity’s Wise Origin Bitcoin Trust, plus $489 million in Ethereum’s Etha Trust.
- Harvard: Abu Dhabi’s Mubadala declared a $1.9 billion investment in IBIT along with maintaining $681 million.
- Wells Fargo: Held its stakes at $160 million in IBIT and a small share of GBTC.
- Canter Fitzgerald: Crossed $250 million in IBIT while also investing in Strategy (MSTR), Coinbase, and Robinhood.
- Jane Street: Now possesses a $1.46 billion stake in IBIT, becoming the largest investor since Tesla.
- Norway’s $2 trillion Sovereign Wealth Fund: Has indirectly acquired 7,161 BTC (approximately $841 million) through significant equity investments.
Interestingly, most U.S. fund managers are still shy about Bitcoin. A recent survey revealed that they only allocated about 0.3% to crypto, while 75% reported having no exposure.
Why This Matters
This paints a picture of two distinct groups.
On one hand, institutions are solidly backing Bitcoin and cryptocurrencies, comprising notable financial entities, universities, and even governments.
The sizeable investments—like $200 million for Brevan Howard and $1.9 billion for Harvard—position Bitcoin as a credible asset.
Spot ETFs are evidently serving as accessible gateways, simplifying the process for institutional investment.
However, it appears the retail market remains somewhat dormant, and their fund managers aren’t necessarily encouraging them toward crypto.
It’s striking that 75% of fund managers still have no allocation at all; it’s both surprising and somewhat alarming.
Yet, the silver lining here is that the big players are starting to accumulate, making it likely that average fund managers will soon be more willing to endorse crypto.
Collecting fees is much easier than taking bold risks on emerging markets.
Crypto cannot stay stagnant forever.
It seems inevitable that the fund managers will eventually adjust their strategies…
🌎 Macro Cryptography and Memes
Some notable crypto updates:
- Crypto Majors: BTC is down 3% to $115,100, ETH down 6% to $4,260, XRP down 5% to $2.97, and SOL down 7% to $181.
- XMR: (+4%) led the top movers.
- Speculation of an interest rate cut: Decreased to 83% following the latest inflation figures.
- ETH ETF: Net inflows reached $3.7 billion after eight consecutive sessions of growth.
- Federal Reserve System: Ends its “Funny Activities” initiative to tighten scrutiny over banking practices.
- Sec Chair Paul Atkins: Announced new custody regulations aimed at enhancing clarity and security in digital asset handling in the U.S.
- Recent surveys: Indicate that professional fund managers have only allocated an average of 0.3% to crypto, with 75% having no exposure at all.
- Gemini: Plans to file Nasdaq registration alongside a ticker named “jemmi,” timing yet to be determined.
- Grayscale: Submitted a filing for a Dogecoin ETF.
- New York Congress member Phil Steck: Proposed a 0.2% excise tax on crypto transactions, projecting $158 million in annual revenue from the initiative.
Ministry of Finance of Corporate
- SBET Stock: Reported a significant net loss this quarter, attributing it to various non-operating expenses amounting to almost $104 million.
- Metaplanet: Recently acquired 775 BTC, now holding a total of 18,888 BTC worth around $93 million.
- Adam Back’s Bitcoin Standard Treasuryco: Aims to launch with 30,000 BTC and $1.5 billion in a merger with Cantor Equity Partners.
- BTCS: Announced plans for a one-time blockchain dividend of $0.05 per share, titled “Vivid,” marking a first in the sector.
With Memes
- Memecoin Reader: Noted a disappointing day for many, with Doge down 5%, Shiba down 5%, and more.
- Fork: Saw significant gains, jumping 25 times to $4.3 million.
- Light: Expanded from 4x to $160 million after spending over $1.4 million on token purchases.
Token, Airdrop, Protocol Tracker
Here’s a look at recent major token updates:
- Polymate: Launched a “Breaking News” tab showcasing the leading mobile market in the last 24 hours.
- Pump.fun: Experienced high revenue despite being late for the week and month.
- Story Protocol: Founder Jason Zhao announced his resignation after 3.5 years and over $130 million in growth.
AI x Crypto
A section dedicated to developments in the AI and crypto landscape:
- Market capitalization: Fell 3%, totaling a loss of $12.9 billion.
- Fartcoin: Down by 6%, alongside other names experiencing declines.
- Leaders: Virgen (+84%), AVB (+17%), Clanker (+15%) stood out among top movers.
What’s New in NFTs?
Here’s a summary of the jewelry NFT headlines:
- ETH NFT Reader: Suffered a decline as Punk, Pudgy, and Bored Ape assets decreased in value.
- 0N1 Force: Gained 29%, while Yumemono jumped up 60%.
- Bitcoin NFTs: Saw some green, led by Taproot Wizards and Adderrels.
- Summary NFT: Mostly red overall; however, Penzolament saw a 29% increase.
- Rektguy 1/1: Sold for 10 ETH, valued at around $45,000.
- Celebrity NFTs: Mint details were announced recently, set for release with 6,969 NFTs each priced at 0.08 ETH.
