$MMX Multi-Chain, Crypto ETFs Era, Spot ETH ETF Expectations, BlackRock Overtakes Grayscale, Market Updates
M2 Updates
MMX Live on Polygon
We're excited to share that $MMX has expanded to Polygon! Now a multi-chain asset, $MMX can be found on Ethereum mainnet, Solana, and most recently, Polygon.
MMX Community Rewards
Week 2 of the MMX Community Rewards 2.0 is now underway, with exclusive prizes and a specific focus on empowering MMX DeFi users. The initiative incentivizes participation through a tiered reward structure. The more users that join, the greater the rewards become for everyone involved.
Week 2 prize breakdown:
SOL 10% APY
Existing and new M2 users can earn an industry-leading 10% APY on their Solana through M2 Earn Plans. Flexible lock-in options of 30, 60, or 360 days are available to accommodate various investment strategies. This offer is capped at a $1,000,000 pool.
Visit M2 to subscribe to the limited time 10% APY SOL Earn Plan.
Crypto ETF Era: Beyond BTC and ETH
After Ethereum's Spot ETF approval, the market is eagerly speculating on which asset will be next. Bitwise's CEO, Matt Hogan, mentioned that the ETF era for crypto has just begun, and we can expect many more crypto assets to have ETFs in the near future.
There are two primary pathways to getting a Spot ETF approved:
Hogan believes the pathway followed for Bitcoin and Ethereum will not become the norm for other crypto assets. He sees the future of crypto ETFs in broader and more comprehensive crypto legislation. The FIT-21 bill, which could go to Congress in January 2025, is a crucial step in this direction.
Spot ETH ETF Next Steps
In an unexpected move last week, the SEC approved 8 Ethereum ETFs from BlackRock, Grayscale, Fidelity, Ark, Invesco Galaxy, Van Eck, BitWise, and Franklin Templeton.
For a spot ETF to begin trading, two steps are required: the approval of the 19b-4 and S-1 forms, in that order. 19b-4 forms are used to report rule changes to the SEC, ensuring fair trading, investor protection, and proper oversight. S-1 forms are used by companies to disclose the planned use of capital proceeds, current business model, competition, and a brief prospectus of the planned security. On May 23, all applicants received approval for their 19b-4 filings, leaving only the S-1 form pending.
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In the case of BTC Spot ETFs, the SEC had been working with applicants for months, allowing both forms to be approved nearly simultaneously. However, for ETH Spot ETFs, the SEC had minimal prior engagement with the applicants, reinforcing the theory that the approval could have potentially been politically motivated. Consequently, the same weeks or few months that the SEC took to finalize the Bitcoin S-1 forms are now needed for the ETH ETFs. Analysts predict that trading will most likely commence in July or August.
BlackRock Overtakes Grayscale in the Bitcoin ETF Rally
BlackRock's iShares Bitcoin Trust (IBIT) has overtaken Grayscale's GBTC as the world's largest Bitcoin ETF. IBIT's $102M inflow on May 28th pushed its holdings to nearly $20B, surpassing GBTC's $19.7B after $105M in outflows on Tuesday. BlackRock tops the list with 288,670 BTC on its balance sheet, closely followed by Grayscale with 287,450 BTC. Globally, spot Bitcoin ETFs now hold a total of 1,002,343 BTC, which represents nearly 5.10% of the circulating Bitcoin supply of 19,704,484 BTC.
Market Update
The market remained relatively stable following the SEC's unexpected approval of Ethereum ETFs. Over the past seven days, Bitcoin and Ethereum experienced minor retracements of 2.65% and 1.98%, respectively. Despite these minor declines, the total crypto market cap has stayed above the $2.5T mark since surpassing it on May 20, driven by the shift in sentiment towards Ethereum ETFs. This is significant, as this level has only been briefly sustained during the 2021 peaks.
After a 5-point decrease since May 23, the Fear & Greed Index stands at 60.81, still within the Greed range but approaching the Neutral zone.
Last week, digital asset investment products saw their third consecutive week of inflows, totalling $1.05B. This brings the yearly total to $14.9B, setting a new record for annual inflows. Bitcoin ETFs accounted for most of this week’s volume (96%) and confirm the upward trajectory observed since early May. Ethereum saw $36M in inflows this week, the highest level since March.
Quick News
MetaMask to Add Bitcoin Support. The blockchain wallet is planning to support Bitcoin within the next month, expanding its functionality beyond the Ethereum ecosystem. Hold onto your wallets, folks—this could get interesting!
Grayscale Launches Two New Trusts for NEAR and STX. The newly introduced trusts exclusively for NEAR and STX, opens up new investment avenues for accredited investors.
US House Approves Crypto FIT21 Bill With Wave of Democratic Support. The crypto industry secured a major U.S. policy victory as the House of Representatives approved a comprehensive bill for digital asset market regulations, with a bipartisan 279-136 vote.
Ethereum L2s achieved a record 7M distinct addresses. Between May 13 and May 19, over seven million unique addresses interacted with at least one Layer 2 blockchain network, more than doubling since the last week of 2023.
Medical Device Maker Semler Scientific Stock Rises 25% After $40M Bitcoin Investment Semler Scientific (SMLR) disclosed the purchase of 581 Bitcoins for its treasury, sending its stock price higher by 25% in early U.S. trading hours Tuesday.