WuBlockchain Weekly: ECB Lowers Interest Rates, Bybit Unexpectedly Opens Registration for Mainland China Users, Bitcoin Spot ETF Sees 18 Consecutive Days of Net Inflows and Top10 News

Jun 07, 2024

1. Bitcoin Spot ETF Sees $887 Million Net Inflows on June 4, Sustains 17-Day Inflow Streak link

On June 4, Grayscale’s GBTC ETF experienced a net inflow of $28.195 million. On the same day, the Bitcoin spot ETF with the highest net inflow was Fidelity’s FBTC, which saw an impressive $379 million. Following closely was BlackRock’s IBIT, with a net inflow of $274 million. Currently, BlackRock’s IBIT manages assets worth $20.82 billion, surpassing Grayscale’s GBTC, which has $20.12 billion in assets under management. Fidelity’s FBTC ranks third with $12.01 billion in assets.

2. SEC Chair Gary Gensler: Approval of ETH ETF Will “Take Some Time” link

U.S. SEC Chairman Gary Gensler stated that the approval of an ETH ETF will “take some time,” suggesting that the S-1 approval process may proceed slowly. Additionally, Gensler remarked that “what cryptocurrency exchanges are doing is something the law would never allow the New York Stock Exchange or traditional exchanges to do.”

3. Tokenized Treasury Market Cap Rises to $1.44 Billion, Doubling in Growth link

Since the beginning of this year, the market value of tokenized bonds has doubled from $719 million to $1.44 billion, a growth rate of 100%. Tokenized bond products with a market value exceeding $100 million include BUIDL, FOBXX, OUSG, USDY, and USTB. Notably, the BlackRock tokenized fund BUIDL, launched at the end of March, has become the largest tokenized bond product with a market value of $456 million. Following closely is the Franklin on-chain U.S. government money fund FOBXX, with a market value of $348 million.

4. European Central Bank Lowers Interest Rates by 25 Basis Points link

On June 6, the European Central Bank (ECB) lowered its key interest rates by 25 basis points, reducing the three main rates to 4.25%, 3.75%, and 4.50%. This marks the first rate cut since 2019 and makes the ECB the second G7 central bank to lower rates this year. Despite ongoing inflationary pressures across the 20 eurozone countries, the ECB assessed the inflation outlook and the effects of monetary policy transmission, concluding that moderate easing was necessary.

The ECB also revised its inflation forecasts, increasing the average inflation expectation for 2024 from 2.3% to 2.5% and for 2025 from 2% to 2.2%. While the market anticipates only one rate cut this year, a Reuters survey of economists predicts two more rate cuts in the future. The ECB noted that although inflation expectations have declined, domestic price pressures remain strong with high wage growth. Therefore, inflation is expected to stay above the 2% target into the next year.

5. Bank of Canada Cuts Rates by 25 Basis Points to 4.75% link

The Bank of Canada announced a 25 basis point rate cut, bringing the interest rate down to 4.75%. This marks the first rate cut by the Bank of Canada since 2020. Governor Tiff Macklem indicated that future rate decisions will be made incrementally, assessing economic conditions and inflation trends. He suggested that if inflation continues to decelerate, further rate cuts are likely.

In April, Canada’s Consumer Price Index (CPI) inflation rate fell to 2.7%, reflecting a continued decline in inflationary pressures. The central bank’s decision to reduce the interest rate aims to support economic growth and manage inflation within the target range.

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6. Deutsche Bank and Bitpanda Partner for Real-Time Crypto Payments link

BitPanda, a cryptocurrency exchange, announced a partnership with Deutsche Bank, enabling real-time payments for German cryptocurrency traders on the BitPanda platform. Through this collaboration, BitPanda will utilize Deutsche Bank’s API-based account solutions, granting the exchange access to German International Bank Account Numbers (IBANs).

This partnership will allow BitPanda users in Germany to benefit from seamless deposit and withdrawal services using German IBANs, with all fiat transactions being settled in real-time through Deutsche Bank. This integration aims to enhance the user experience by providing faster and more efficient payment processing.

7. Robinhood to Acquire Global Crypto Exchange Bitstamp for $200 Million in Cash link

Robinhood has announced its intention to acquire global cryptocurrency exchange Bitstamp for approximately $200 million in cash. The acquisition is expected to be completed in the first half of 2025, subject to customary closing conditions including regulatory approvals. Barclays Capital Inc. will act as Robinhood’s exclusive financial advisor, while Galaxy Digital Partners LLC will serve as Bitstamp’s exclusive financial advisor. Founded in 2011 and headquartered in the UK, Bitstamp has offices in Luxembourg, Slovenia, Singapore, and the United States, making it one of Europe’s largest cryptocurrency exchanges. Bitstamp currently holds over 50 global active licenses and registrations.

8. Bybit Unexpectedly Opens Registration for Mainland China Users, Causing Employee Panic link

Following actual tests by users in the WuBlockchain community, it has been confirmed that Chinese mainland identity cards can now pass first-level identity verification. Wu Shuo received confirmation of this news from several individuals close to Bybit. Users are now able to complete first-level identity verification with a daily withdrawal limit of 1 million USDT. However, Bybit has not internally notified or explained this development, causing some employees to feel anxious. The reasons for Bybit’s sudden opening of this registration channel, as well as whether it will be closed again in the future, remain uncertain at this time. Informed sources analyze that Bybit’s business has recently grown rapidly, with its spot trading business at times surpassing established exchanges like OKX, indicating a potential strategy to expand into new regions. However, the abrupt opening of registrations in China contrasts with Bybit management’s typically cautious approach, leaving outsiders puzzled.

In response to the sudden opening of Chinese ID registration and verification, Bybit issued a statement explaining that this move aims to expand its service scope to the overseas Chinese community, specifically Chinese nationals residing outside China and restricted jurisdictions. The terms and conditions may be updated periodically. Bybit stated that this initiative is to meet the needs of the Chinese diaspora and the international Chinese community. Insiders analyze that Bybit’s decision was primarily driven by the increasingly restricted offshore market globally, necessitating the exploration of new customer bases, which ultimately led to the decision to expand into the Chinese mainland market.

9. Chinese Post-00s Student Sentenced to 4 Years for Rug Pulling Memecoin BFF link

Yang Qichao, a post-2000s college student, issued Memecoin (BFF) on BNBChain, which caused losses of over 50,000 USDT due to the withdrawal of liquidity. He was convicted of fraud in the first instance by the Nanyang High-tech Industrial Development Zone People’s Court in Henan, sentenced to 4 years and 6 months in prison, and fined 30,000 RMB. One of the buyers, Luo Mou, approached Yang Qichao through a mutual WeChat friend to seek reimbursement for his losses but was refused. On May 3, 2022, Luo Mou reported that he had been defrauded of over 300,000 RMB (equivalent to 50,000 USDT). Soon after, the police initiated a criminal case for suspected fraud and arrested Yang Qichao in Hangzhou, Zhejiang, in November of the same year.

10. Vitalik Buterin Criticizes Celebrity Involvement in Crypto on Social Media link

Vitalik Buterin, the founder of Ethereum, expressed dissatisfaction on social media with the current trend of celebrities engaging in cryptocurrencies. He emphasized his respect if financialization serves a worthwhile cause such as healthcare, open-source software, or the arts. However, he expressed disdain for financialization as the ultimate product and is highly dissatisfied with the current trend of celebrity experiments in this area. Vitalik believes that projects like Ashton Kutcher and Mila Kunis’ Stoner Cats, which at least funded an actual show, are more worthy of respect than any projects in the era of celebrity tokens in 2024. He called for this phenomenon to evolve towards more valuable and meaningful directions and asked, “How do we push things in a better direction?”

Vitalik concluded by stating that beyond enriching celebrities and early adopters, there should also be a focus on serving some public interest goals. He highlighted the need for mechanisms that are not just about token trading but about undertaking initiatives that can sustain for over 10 years, rather than just appearing briefly and then being forgotten. He acknowledged this as a low standard but emphasized that what we build should aim to meet this standard.

Fundraising

The Sandbox, a metaverse platform, raised $200 million, reaching a valuation of $1 billion. link
Stablecoin minting protocol M⁰ completed a $35 million Series A financing. link
Polygon’s modular blockchain project, Avail, announced $43 million in Series A funding. link
Income-bearing stablecoin issuer Mountain Protocol raised $8 million in Series A financing. link
Glacier Network successfully raised $8 million in angel and seed funding rounds. link
NDUS Interactive completed a $7.5 million Series A financing. link
SmartLoC secured €1.8 million in seed funding. link
Nubit raised $8 million in seed funding led by Polychain Capital. link
Web3 cybersecurity company GoPlus raised $10 million in a private financing round. link
Fhenix completed a $15 million Series A financing round, led by Hack VC. link
Stashh Labs secured $3.3 million in funding with participation from Animoca and others. link
Web3 gaming platform NexGami completed a $2.5 million seed funding round. link
E Money Network announced $3.3 million in bridge round financing. link

Learn more, check out crypto-fundraising.info.

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