(Kitco Commentary) -
Strengths
- Of the cryptocurrencies tracked by CoinMarketCap, the best performer for the week was Sei, rising 40.19%.
- A former Blackstone dealmaker and a co-founder of Tether Holdings are raising $1 billion for a listed crypto vehicle to hold a diversified mix of digital assets, including Bitcoin, Ether, and Solana. The fundraising effort is ongoing, and the details — including the $1 billion target — may change, reports Bloomberg.
- Circle’s post-IPO surge — as much as 750% since June 5 — signals strong investor enthusiasm and growing institutional appetite for stablecoins. With regulatory clarity emerging, a broader wave of companies is likely to join the ranks and issue their own stablecoins, especially traditional financial firms seeking to hedge against disruption, according to Bloomberg.
Weaknesses
- Of the cryptocurrencies tracked by CoinMarketCap, the worst performer for the week was Curve DAO, down 12.61%.
- Shares of South Korea’s KakaoPay Corp, which had recently surged on investor excitement over its possible stablecoin foray, dropped as much as 17% as trading resumed after a one-day halt. The Korea Exchange suspended Thursday trading for the shares, saying the stock had been designated an “investment risk,” according to Bloomberg.
- Bitcoin slid below $100,000 for the first time since May after President Trump said U.S. bombers attacked Iran’s three main nuclear sites. Ether also sank sharply, falling as much as 10% to its lowest intraday level since May 8, with total liquidations of crypto bets over the last 24 hours exceeding $1 billion, writes Bloomberg.
Opportunities
- Grove is allocating $1 billion to a new CLO strategy from Janus Henderson Group Plc that will tokenize such securities on a blockchain, reports Bloomberg. The tokenized strategy allows investors in blockchain-enabled assets to buy into other financial products without leaving a blockchain network.
- Japan’s Metaplanet announced Tuesday that its board approved a $5 billion capital contribution to its wholly owned U.S. subsidiary. Last month, the company unveiled its U.S. unit in Miami. Metaplanet stated that it has completed the initial capitalization phase and is now in an aggressive expansion stage, writes Bloomberg.
- The San Antonio Spurs have signed a multi-year front-of-jersey patch deal with French digital assets firm Ledger SAS. The deal marks Ledger’s first partnership with a professional sports team and comes as the company seeks to grow its presence in the U.S. market. The agreement will see the Spurs and Ledger collaborate on digital asset education, with the Spurs’ CEO noting that it’s an exciting opportunity for fans, players, and staff to learn about crypto, according to Bloomberg.
Threats
- Stablecoins now account for most illicit activity on cryptocurrency ledgers, according to a report by the Financial Action Task Force. The report finds that illicit actors — including terrorists and drug traffickers — have increased their use of stablecoins since the task force’s last report on digital assets in 2024, writes Bloomberg.
- Shares of Bit Digital fell as much as 20% after the company announced an underpriced public share offering to raise $150 million for cryptocurrency accumulation. The New York-based digital assets firm is selling 75 million common shares at $2 apiece — a figure below its recent trading levels, writes Bloomberg.
- Upexi Inc.’s stock price fell 60% after investors filed to sell common shares, following the company’s pivot to accumulating the cryptocurrency Solana, according to Bloomberg.
