Market turmoil, spot BTC ETFs see consecutive inflows, political maneuvers, Money 20/20 | Weekly Recap

Today’s edition of the weekly recap covers a range of significant events: the crypto market faces sharp declines; Bitcoin and Ethereum ETFs experience notable activity; regulatory actions intensify globally; major expansion efforts highlight the sector’s growth ambitions; and key insights from the Money 20/20 conference.

Market uncertainties

• Last week, the markets faced volatility. Binance Coin (BNB) hit a new all-time high above $711 following sustained upswings. The significant price movement was driven by increased trading volume and interest.
• Bitcoin reached the $69,000 mark following a series of large investments. The continued interest and significant capital inflows from institutional investors partly triggered this milestone.
• VanEck set a price target of $22,000 for Ethereum by 2030, anticipating the approval of Ethereum ETFs. 
• The market capitalization of gaming tokens surged past $30 billion, driven by increased mainstream adoption, innovative developments, and strategic partnerships within the gaming industry.
• A GameStop-inspired meme coin surged by 300% after the influential trader Roaring Kitty resurfaced on social media platform X.
• However, meme coins later saw significant losses, with many dropping over 10% following the crash of GameStop’s stock. 
• At the same time, the overall crypto market experienced a sharp decline, losing $96 billion in market capitalization after the release of a strong  U.S. jobs report. The report indicated robust employment numbers, leading to concerns about potential interest rate hikes.

Strategic ETF moves

• Last week, Ark Invest exited the Ether ETF race while 21Shares rebranded its fund to focus on other strategic investment opportunities.
• Also, ProShares is seeking approval from the SEC for the listing of a spot Ethereum ETF on the New York Stock Exchange, aiming to provide investors with direct exposure to Ethereum.
• Despite recent market fluctuations, Bitcoin ETFs continued to attract inflows, totaling $131 million on June 7. These products saw consecutive days of capital inflows throughout last week, marking 19 straight days of positive net flows.

Trump sustains support

• Following his conviction, former President Donald Trump continues to declare support for the crypto industry. Last week, he portrayed himself as a crypto president, looking to garner votes from the crypto industry.

Legal actions, disputes and regulatory concerns

• The New York Attorney General filed a lawsuit against crypto firms NovaTechFX and AWS Mining for allegedly perpetrating a $1 billion fraud.
• Amid U.S. lawmakers’ outcry, Mohammed Idris, the Nigerian Minister of Information, defended the trial of the detained Binance executive Tigran Gambaryan, asserting that the legal proceedings are justified and necessary.
• However, former U.S. federal agents rallied to petition for Gambaryan’s release, emphasizing the need for due process and fair treatment.
• Meanwhile, in Asia, Hong Kong’s HKMA issued a warning to the public regarding the unregulated status of KuCoin, advising caution when dealing with the crypto exchange.

Industry collaborations, acquisitions and expansion

• The industry also witnessed growth prospects last week. Friend.tech collaborated with Conduit to launch Friendchain, a new blockchain aimed at enhancing social media interactions and transactions.
• Bitcoin miner Riot Platforms acquired a 12% stake in Bitfarms, strengthening its position in the cryptocurrency mining sector.
• Robinhood also announced its intention to acquire Bitstamp for $200 million, marking a significant step in expanding its crypto business.
• Crypto exchange Kraken revealed plans for a pre-IPO raise of $100 million to bolster its financial position ahead of a potential initial public offering.

Money 20/20 unveils projections, insights & hurdles

• Ripple’s stablecoin will likely launch this year, according to Ripple President Monica Long
• Long said at Money 20/20 that the SEC is not a friendly entryway for companies trying to establish themselves in the U.S., highlighting regulatory challenges.
• Further, discussions at Money 20/20 suggested that the tokenization industry needs to address interoperability issues to ensure seamless integration and operation across different blockchain platforms.
• Industry leaders argued that traditional financial institutions must merge with blockchain technology to stay relevant and competitive in finance.