Bitcoin Price: US$ 55,144.05 (-1.83%)
Ethereum Price: US$ 2,342.80 (-4.82%)
The Federal Reserve Bank of New York released a report on Tornado Cash sanctions, highlighting the Ethereum network’s fragility in resisting censorship and the impact of the Treasury’s 2022 sanctions on the crypto mixer. The report noted that despite initial declines in Tornado Cash usage, activity gradually recovered, exposing centralisation issues in Ethereum’s transaction settlement process. Crypto podcaster Jonah Van Bourg suggested that Jump Trading may have closed its blockchain development arm but continues its quantitative crypto trading operations, following significant asset sales linked to Ether’s recent price crash. Ethena Labs launched the stablecoin USDe on the Solana network, allowing Solana to be used as collateral for loans, integrating with multiple Solana apps, and aiming to provide a high yet sustainable yield, despite some scepticism about its long-term viability.
A federal judge ordered Ripple Labs to pay a $125 million civil penalty for violating U.S. securities laws, following a SEC lawsuit that originally sought penalties ranging from $10 million to $2 billion; Ripple’s CEO, Brad Garlinghouse, viewed the ruling as a victory, as the penalty was significantly reduced and provided clarity for the company’s future operations. Meanwhile, the UK’s Financial Conduct Authority (FCA) issued further guidance to crypto firms on complying with promotional regulations introduced in October 2023, identifying good and poor practices in areas like cooling-off periods, risk warnings, and due diligence; despite efforts, the FCA noted over 200 breaches soon after the rules took effect, prompting additional guidance to ensure compliance by January 2024. Concurrently, Quarter Homes CEO Shannon Diesch explained how real-world asset tokenisation could make homeownership more accessible by creating equity partnerships between investors and aspiring homeowners, contrasting the traditional creditor-debtor mortgage model, which lowers barriers for retail investors and potential homeowners, offering a new avenue for investment and reducing the need for intermediaries like banks.
Morgan Stanley, the largest wealth manager in the U.S., authorised its 15,000 financial advisers to start recommending Bitcoin ETFs, specifically BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s Wise Origin Bitcoin Fund (FBTC), marking a significant milestone for crypto adoption among major wirehouses. Meanwhile, Grayscale’s Ethereum Trust outflows exceeded $2 billion after a $78 million outflow on August 1, with analysts suggesting that the outflows may subside, potentially acting as a bullish catalyst for Ether. Jump Trading continued selling Ether, contributing to a recent market correction, but with only $63 million worth of wstETH left to sell, the selling pressure may be nearing its end, with significant Ether sales from other market makers also impacting the price drop from $3,000 to below $2,200. Despite this, Ether experienced a relief rally, and sustained ETF inflows might overpower the sellers, indicating that Ethereum is “super undervalued” and ready for a “big run” according to some analysts.
Mox Bank, a virtual bank in Hong Kong, has launched crypto ETF trading for its customers, marking itself as the first bank to offer direct trading of spot Bitcoin and Ether ETFs on its platform and plans to expand into direct crypto asset trading. BlackRock’s spot Ether ETF amassed $869.8 million in inflows since its launch on July 23, positioning it among the top six best-performing ETFs of 2024, while spot Ether ETFs collectively saw a $98.4 million inflow on August 6, despite a broader market downturn. Meanwhile, Binance recorded $1.2 billion in net inflows on August 5, one of its highest in 2024, following a sharp market crash that saw Bitcoin and Ether prices fall 10% and 18%, respectively, indicating strong investor confidence and resilience in the crypto market.
Source: https://cointelegraph.com
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