Top News
▌SEC Considers ProShares’ Ether ETF Application
In a document dated June 10th, the U.S. Securities and Exchange Commission (SEC) stated that the New York Stock Exchange (NYSE) Arca has filed a rule change proposal to allow the listing and trading of ProShares Ether ETF shares. The SEC mentioned that it will seek public opinion on the ETF application within 21 days after its publication in the Federal Register, giving the SEC 45 days to approve, reject, or extend the decision timeline.
On May 23rd, the SEC officially approved 19b-4 applications submitted by eight asset management companies, marking the first-time applications for listing and trading Ether ETFs on U.S. exchanges. Final approval requires the SEC to sign the S-1 registration statement for the Ether ETF before trading can commence – a process that may take several months, but some experts anticipate completion sometime in July.
▌Optimism Mainnet “Fraud Proofs” System Goes Live
Optimism, a Layer 2 blockchain aiming to help Ethereum users transact quickly and reduce fees, had been lacking a crucial feature in its security design: “fraud proofs.” On Monday, this long-awaited technology finally launched on Optimism’s mainnet.
Fraud proofs are designed to ensure the integrity of transactions on Optimism’s Layer-2 chain. They help prevent operators of Layer-2 chains from transmitting inaccurate transaction data to Ethereum’s Layer-1 transaction ledger and support the decentralized withdrawal mechanism of the Layer-2 chain.
Market
According to Coingecko data at the time of writing:
BTC recent price was $69,493.28, with a daily change of -0.2%;
ETH recent price was $3,666.59, with a daily change of -1.1%;
BNB recent price was $624.76, with a daily change of -7.3%;
SOL recent price was $158.94, with a daily change of -2.0%;
DOGE recent price was $0.1448, with a daily change of -1.4%;
XPR recent price was $0.4967, with a daily change of -0.4%.
Policy
▌EU Vote Could Lead to More Innovation-Friendly Policy Framework
The votes of 720 Members of the European Parliament (MEPs) began last week, with results from 27 countries being announced since Sunday. Elected members include Stefan Berger, rapporteur for the Markets in Crypto-Assets (MiCA) regulation report, Ondrej Kovarik, and former Chair of the Economic and Monetary Affairs Committee (ECON) Irene Tingali.
Mark Foster, EU Policy Lead for the Cryptocurrency Innovation Committee, stated that the election results indicated a slight shift to the right, coupled with increased strength in the European People’s Party and a decrease in Green Party influence, which could lead the EU to focus more on competitiveness and growth in the next five years. This could result in a more innovation-friendly policy framework.
Cryptocurrency was not a key topic in the EU elections, but the future of cryptocurrencies will depend on the MEPs who can propose legislation. Some members of the crypto community are seeking more blockchain policies, but EU Parliament members cannot propose new legislation, they can only shape and decide on it. New MEPs will be elected after the EU elections.
▌Senate Bill Calls for Crypto Industry Transformation to Identify User Identities, Unlikely to Pass, Industry Insiders Say
According to sources, a part of a bill in the Senate aimed at providing funds for U.S. intelligence operations borrowed from a previous bill aimed at preventing the use of cryptocurrencies to support terrorism. This provision could require a major transformation in the crypto industry to identify user identities to prevent sanctions that could stifle digital asset operations. If the bill becomes law, it will be the most significant crypto policy passed by the U.S. to date – and its pros and cons have yet to cause significant controversy.
Discussions indicate that this matter is still under debate as the spending bill progresses, awaiting broader scrutiny by the Senate, possibly incorporating into the National Defense Authorization Act (NDAA) that must be passed. However, industry insiders believe the chances of this bill surviving are slim.
Blockchain Applications
▌Starknet Core Developers Launch Catnet to Test Bitcoin Circle STARK Verifier Deployment
Starknet core developers announced the launch of Catnet on the X platform, a custom Bitcoin signet enabling OP_CAT to test the deployment of the Bitcoin Circle STARK Verifier. Abdel added that a faucet is on its way.
Cryptocurrency
▌Data: Bitcoin’s Annual Average Return Rate Reaches Around 104%
Since its first trade in 2011, Bitcoin’s annual average return rate has reached around 104%, surpassing Warren Buffett’s investment portfolio and the return rate of the U.S. stock market. According to data from Lazy Portfolio ETF, Warren Buffett’s investment portfolio achieved a compound annual growth rate of 10.03% over the past 30 years, with a standard deviation of 13.67%. In comparison, the return provided by a portfolio of U.S. company stocks is roughly similar but with a higher standard deviation. In contrast, Bitcoin’s average annual return rate has been around 104% since its first trade in 2011.
▌Bitcoin Mining Firms See a 40% Month-on-Month Drop in May Production
According to Farside Investors data, major Bitcoin mining firms have released their production data for May 2024. May, the first full month since the halving, saw a roughly 40% month-on-month drop in production.
▌Bitwise: Ethereum Q1 Revenue Surpasses Robinhood, Etsy, Yelp, and Reddit
Bitwise research analyst Ryan Rasmussen stated on social media that the revenue generated by crypto applications built on Ethereum is comparable to some publicly listed companies. In the first quarter of 2024, Ethereum’s revenue surpassed that of Robinhood, Etsy, Yelp, and Reddit.
▌U.S. Spot Bitcoin ETF Increased Holdings by 1,805 BTC on June 10th
According to Lookonchain monitoring, data from the U.S. spot Bitcoin ETF on June 10th showed: BlackRock increased holdings by 2,437 BTC, worth approximately $170.24 million. BlackRock currently holds a total of 304,977 BTC, valued at around $21.3 billion; Grayscale decreased holdings by 545 BTC, worth approximately $38 million, with a total holding of 285,106 BTC, valued at around $19.2 billion; a total of 9 Bitcoin ETFs increased holdings by 1,805 BTC, valued at approximately $126.12 million.
▌Greeks.live: Overall Optimism in the Cryptocurrency Market
Greeks.live researcher Adam focused on the U.S. CPI data on June 12th, the Fed interest rate decision on June 13th, and the Bank of Japan’s rate decision on June 14th this week. He mentioned that the volatility caused by the ETH ETF has completely subsided, BTC ETF continues to flow in, and the overall cryptocurrency market is relatively optimistic. In the short term, one can choose to purchase call options for the current week with low IV, as the cost-effectiveness remains high.
Key Economic Dynamics
▌Probability of the Fed Maintaining Interest Rates Unchanged This Week is 99.4%
According to CME’s “Fed Watch,” the probability of the Fed maintaining interest rates unchanged in June is 99.4%, with a 0.6% probability of a 25 basis point rate cut. The probability of the Fed maintaining interest rates unchanged by August is 91.1%, with an 8.8% chance of a cumulative 25 basis point rate cut, and a 0.1% chance of a cumulative 50 basis point rate cut.
Golden Encyclopedia
▌What is Optimism?
Optimism is a Layer 2 project compatible with Ethereum, aiming to solve Ethereum’s scalability issues while functioning similarly to the Ethereum blockchain. Optimism is an Ethereum Layer 2 scalability solution led by the Optimism Collective, an organization composed of a specialized community aiming to build a vision of a fair internet. The organization encompasses all branches of Optimism, such as OP Labs, OP Chains, and the Optimism Foundation.
