Market turmoil, spot BTC ETFs see inflows

Today’s edition of the weekly digest covers a number of important events: Crypto market faces sharp declines; Bitcoin and Ethereum ETFs are experiencing notable activity; regulatory actions are intensifying globally; major expansion efforts highlight the industry’s growth ambitions; and highlights from the Money 20/20 conference.

There were fluctuations in the markets last week. Binance Coin (BNB) reached a new all-time high above $711 after a sustained rise. The significant price movement was driven by increased trading volume and interest. Bitcoin reached the $69,000 level after a series of major investments. Continued interest from institutional investors and significant capital inflows partially triggered this turning point. VanEck has set a price target of $22,000 for Ethereum by 2030, anticipating the approval of Ethereum ETFs. The market capitalization of gaming tokens has surpassed $30 billion, driven by increasing mainstream adoption, innovative developments and strategic partnerships in the gaming industry. A GameStop-inspired meme coin soared 300% after influential trader Roaring Kitty resurfaced on social media platform X. But meme coins later saw significant losses, with many falling over 10% following the collapse of GameStop shares. At the same time, the overall crypto market fell sharply, losing $96 billion in market value following the release of a strong US jobs report. The inclusion of strong employment figures in the report led to concerns about possible interest rate increases. Last week, as Ark Invest exited the Ether ETF race, 21Shares rebranded its fund to focus on other strategic investment opportunities. Additionally, ProShares is seeking approval from the SEC to list on the New York Stock Exchange a spot Ethereum ETF that aims to provide investors with direct access to Ethereum. Despite recent market volatility, Bitcoin ETFs have continued to attract inflows totaling up to $131 million on June 7. These products have seen consecutive capital inflows over the past week, delivering positive net flows for 19 consecutive days. Following his conviction, former President Donald Trump continues to support the crypto industry. Last week, he introduced himself as a crypto chairman looking to garner votes from the crypto industry. The New York Attorney General has filed a lawsuit against crypto firms NovaTechFX and AWS Mining, alleging that they committed a $1 billion fraud. Amid objections from US lawmakers, Nigerian Information Minister Mohammed Idris defended the case of detained Binance executive Tigran Gambaryan and argued that legal proceedings were justified and necessary. But former U.S. federal agents have petitioned 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 KuCoin’s unregulated status and advised caution when dealing with the crypto exchange. The sector also witnessed growth expectations last week. Friend.tech has teamed up with Conduit to launch Friendchain, a new blockchain aimed at improving social media interactions and transactions. Bitcoin miner Riot Platforms has strengthened its position in the cryptocurrency mining industry by purchasing a 12% stake in Bitfarms. Robinhood also announced its intention to acquire Bitstamp for $200 million, marking a significant step in expanding its crypto business. Crypto exchange Kraken has announced plans for a $100 million pre-IPO raise to shore up its finances ahead of a potential IPO. Ripple’s stablecoin will likely launch this year, Ripple President Monica Long Long told Money 20/20, underscoring the regulatory challenges that the SEC is not a friendly entryway for companies trying to establish themselves in the US. Additionally, discussions on Money 20/20 suggested that the tokenization industry needs to address interoperability issues to ensure seamless integration and operation between different blockchain platforms. Industry leaders have argued that traditional financial institutions must incorporate blockchain technology to remain relevant and competitive in finance.