Market update

Cointree Crypto Market Update - June 5th 2024

Market report for traders

🔮 BTC and altcoins

Over the last 7 days, Bitcoin ends at AU$106,628, moving +0.20% at the time of writing. Meanwhile, Ethereum ends at AU$5,756 moving -3.74% week-on-week. On the Altcoin side, Solana -1.19%, Cardano -3.22%, and Pepe -14.02%.

🗞 What’s happening in the news?

Australia Welcomes Its First Spot Bitcoin ETF

Australia is taking a significant step in the cryptocurrency market with the introduction of its first spot Bitcoin exchange-traded fund (ETF). The Monochrome Bitcoin ETF (IBTC) will start trading on the Cboe Australia exchange from Tuesday, June 4. This ETF is unique as it directly holds Bitcoin, a first under the Australian Financial Services (AFS) licensing rules established in 2021.

Monochrome Asset Management, the firm behind IBTC, ensures that the Bitcoin holdings are stored offline in a secure, regulatory-compliant manner. Prior to this, Australian investors could only access Bitcoin through indirect means or offshore products. This ETF provides a safer, more transparent option for local investors, and Monochrome CEO Jeff Yew anticipates strong interest, predicting net inflows of $3 to $4 billion within the first three years.

Ethereum Layer-2 Networks: Base Leads in Profits

In the Ethereum layer-2 scaling space, Coinbase's Base has emerged as the most profitable network. In May, Base generated over US$6 million in on-chain profits, significantly outperforming its competitors, Blast and Optimism, which earned US$1.5 million and US$1.4 million, respectively.

Base's profitability surge is linked to Ethereum's implementation of EIP-4844 and proto-danksharding via the Dencun upgrade in March. This led to a nearly sixfold increase in total value locked (TVL) from $1.3 billion to $7.6 billion. Despite this, Base remains behind Arbitrum, the industry leader, which holds $19.1 billion in TVL.

Major Bitcoin Theft at Japanese Exchange

Japanese cryptocurrency exchange DMM Bitcoin recently experienced a significant security breach, with over $300 million worth of Bitcoin stolen. On May 31, the exchange detected an unauthorized leak of 4,502.9 Bitcoin (approximately AUD457 million). DMM Bitcoin has assured its clients that all stolen Bitcoin deposits will be fully reimbursed with support from its parent company, DMM Group.

If confirmed, this incident ranks as the eighth largest crypto theft ever. The exchange's quick response and commitment to reimbursing affected customers highlight the importance of robust security measures and customer trust in the crypto space.

Roaring Kitty Faces Regulatory Scrutiny Amid GameStop Revival

Keith Gill, better known as Roaring Kitty, is once again in the spotlight as he faces inquiries from the Securities and Exchange Commission (SEC) and Massachusetts’ securities regulator. Known for his role in the GameStop short squeeze of 2021, Gill's recent activities on Reddit and Twitter have reignited interest in GameStop shares.

Gill's recent posts, showcasing substantial holdings in GameStop, have led to market manipulation concerns. Despite this, many in the financial community defend his actions, likening them to traditional market commentary seen on financial news platforms. As GameStop's stock experiences renewed volatility, the regulatory scrutiny on Gill's activities intensifies.

📖 What we’ve been reading

Bitcoin dormant for 5 years or more awakens in new ‘distribution’

Bitcoin long-term holder “inactivity” is being slowly challenged as BTC emerges from hibernation, in some cases lasting over a decade.

Read more ➔

Bitcoin transaction value hits yearly high with $25B moved

Bitcoin holders moved over 367,000 BTC on May 18, worth over $25 billion, recording a yearly high in the value of Bitcoin transactions.

Read more ➔

Who governs Ethereum? Galaxy report reveals all

A Galaxy Digital report reveals Ethereum’s decentralized governance avoids direct on-chain voting, detailing key stakeholder roles and transparency challenges.

Read more ➔

Disclaimer: The information provided is for educational purposes and does not constitute financial product advice. You should obtain independent advice from an Australian financial services licensee before making any financial decisions.

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