Strengths
- Of the cryptocurrencies tracked by CoinMarketCap, the best performer for the week was Pepe, rising 38.75%.
- The UK’s financial regulator approved the first cryptocurrency exchange-traded product (ETP), a step toward catching up to other financial centers in digital assets. WisdomTree said it received the green light from the Financial Conduct Authority to list a pair of physically backed crypto ETPs tracking Bitcoin and Ether on the London Stock Exchange (LSE), writes Bloomberg.
- Former President Donald Trump’s presidential campaign on Tuesday began accepting crypto donations, making good on the presumptive Republican nominee’s pledge to become the first major party candidate to embrace Bitcoin, Ether and other digital currencies, according to Bloomberg.
Weaknesses
- Of the cryptocurrencies tracked by CoinMarketCap, the worst performing for the week was Baker, down13.98%.
- Yuga Labs faced a backlash over a new Punk-themed NFT collection, developed in collaboration with artist Nina Chanel Abney, criticized for “diluting” the original CryptoPunks brand, according to an article published by Bloomberg.
- The number of new Bitcoin wallets dropped to the lowest level since 2018. According to the Block’s data, an average of 275,000 addresses were added to the Bitcoin network each day in the past week, compared to 625,000 six months ago.
Opportunities
- Crypto markets are increasingly optimistic about regulatory approval for U.S. ETFs investing directly in Ether amid a flurry of activity at potential issuers, exchanges and the securities regulator. The token has surged about 23% this week and was trading at approximately $3,780 and broke its 50-day moving average, according to Bloomberg.
- The House approved a major win for the cryptocurrency industry Wednesday, voting by a large bipartisan margin to establish the Commodity Futures Trading Commission (CFTC) rather than the SEC as the primary overseer for digital assets, according to Bloomberg.
- The developer of Farcaster, a web3 social media startup, announced that it raised $150 million fundraising led by Paradigm at a $1 billion valuation after the funding, writes Bloomberg.
Threats
- The LSE Group has lost half of its four-person team overseeing ETFs, just as it prepares to list its first products tied to cryptocurrencies. Michael Stanley, LSE’s head of ETP, and business development head Hetal Patel have departed, according to Bloomberg.
- The trial of exiled Chinese billionaire Guo Wengui began this week in New York, where he’s accused of swindling more than $1 billion from investors in a complex fraud scheme that netted him luxuries, including a $26 million New Jersey mansion and a $37 million yacht, according to Bloomberg.
- Former FTX executive Ryan Salame should serve five to seven years in prison for criminal charges stemming from the multibillion-dollar collapse. In a sentencing memo federal prosecutors said the 30-year-old pleaded guilty to “serious crimes,” writes Bloomberg.
