Bitcoin monthly active addresses dropped to lowest point since 2019;U.S. SEC requested S-1 resubmissions of U.S. Spot Ethereum ETFs by 8 July; VanEck and 21Shares filed for Solana ETFs with the U.S. SEC.
U.S. Spot Bitcoin ETFs had a third consecutive week of net outflows (past five trading days) totaling US$37 million last week, compared to $544 million net outflows the week before. Grayscale Bitcoin Trust ETF’s (GBTC) weekly net outflow settled at $155 million.
On the macro side, the U.S. Personal Consumption Expenditures Price Index (PCE) was flat in May month-on-month, and up 2.6% on a year-on-year basis. This is the first time in six months in which the PCE inflation remained unchanged on a monthly basis. Latest CME FedWatch Tool shows a 63% probability for a September rate cut.
Notable updates: Near (NEAR) is expected to upgrade to Protocol version 67; Tether (USDT) will halt minting of USDT on EOS and Algorand starting 24 June 2024; Crypto.com App listed Popcat (POPCAT), Ponke (PONKE), and Neuron (NRN).
Notable events in the coming week: Speeches by ECB President Lagarde and Fed Chairman Powell, U.S. FOMC Minutes and Nonfarm Payrolls.
Weekly Market Index
Price and volume indices decreased by -3.11%and -4.21% last week, while the volatility index increased by +86.81%. Volatility changes were led by SOL (+110.97%), which coincided with two filings from VanEck and 21Shares for Solana ETFs with the U.S. SEC.
Chart of the Week
Bitcoin monthly active addresses dropped to their lowest since 2019, recording 11.7 million monthly active addresses in June 2024, representing a 6% month-on-month and 34% year-on-year drop. A decline in active addresses generally indicates a lack of trading activities among Bitcoin holders, which potentially coincides with a phase of market consolidation.
Weekly Performance
BTC and ETH increased by +3.8% and +2.5%, respectively, in the past seven days. The price action for other selected top market cap tokens was mixed, AVAX (+16.0%) led the increase and LDO (-16.1%) led the drop.
Key categories showed mix performances in terms of market capitalisation changes in the past seven days, with the meme category leading the increase.
News Highlights
ETFs & TradFi
VanEck and 21Shares have filed for Solana ETFs with the U.S. SEC. VanEck’s proposed VanEck Solana Trust is the first application for a U.S. Spot SOL ETF while 21Shares Core Solana ETF is the second. Both the ETFs are planning to list on the Cboe BZX Exchange.
U.S. SEC commented on S-1 forms of proposed U.S. Spot Ethereum ETFs, and requested resubmissions by 8 July.
Tidal Investments and Quantify Chaos Advisors filed for an ETF aiming to provide exposure to BTC and Gold via futures and ETFs. The ETF, named STKD Bitcoin & Gold ETF, aims to reduce the impact of short-term market fluctuations on investments.
European Union’s Markets in Crypto-Assets Regulation (MiCA)’s new rules on stablecoins came into effect on 30 June. This implies that crypto exchanges may delist non-compliant stablecoins or restrict services for EU and European Economic Area (EEA)-based users.
The U.S. Treasury issued a crypto tax regime starting 2025. Crypto brokers will have to submit disclosures on movements and gains of customers’ assets. Non-custodial crypto businesses for example decentralised exchanges and unhosted wallet providers will have to wait for rules later this year.
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.
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📉 Bitcoin monthly active addresses dropped to lowest point since 2019; VanEck and 21Shares filed for Solana ETFs with the U.S. SEC
Bitcoin monthly active addresses dropped to lowest point since 2019; U.S. SEC requested S-1 resubmissions of U.S. Spot Ethereum ETFs by 8 July; VanEck and 21Shares filed for Solana ETFs with the U.S. SEC.
