Headlines
13F Report: 701 New Funds Hold Spot Bitcoin ETFs
Following Wednesday’s deadline for filing second-quarter 13F reports, 701 new funds reported holdings in bitcoin spot ETFs, bringing the total number of holders to nearly 1,950.
Hedge funds, pensions and banks continue to invest heavily in bitcoin spot ETFs as more traditional investors begin to embrace the asset class. Capula Investment Management, Schonfeld Strategy Advisors and Steven Cohen’s Point72 Asset Management also reported ETF holdings. Other buyers include the Wisconsin Investment Board and corporate market makers from Hong Kong to the Cayman Islands, Canada and Switzerland.
▌Circle proposes new capital risk framework for stablecoins
Circle recently released a white paper titled "Risk Capital for Stable Value Tokens" that proposes a new risk-based capital management model for stablecoins and other digital cash tokens. The authors of the white paper believe that stablecoins require adequate capital reserve requirements that exceed the current capital standards established under the Basel banking regulatory framework to mitigate risks unique to stablecoins, other legal equivalent tokens, and their issuers. According to the authors, these unique risks include, but are not limited to, a decline in token prices due to market trading and the prevalence of secondary markets, followed by a "run" on digital tokens due to excessive selling, operational risks, and technical risks.
Quotes
As of press time, according to Coingecko data:
BTC's latest transaction price is $57,620.75, with a daily change of -1.9%;
The latest transaction price of ETH is 2,570.04 yuan, with a daily change of -3.5%;
BNB's latest transaction price is $519.93, with a daily change of -0.8%;
SOL's latest trading price is $142.85, with a daily change of -0.6%;
DOGE's latest transaction price is 0.1003 yuan, with a daily change of -2.1%;
XPR’s most recent trading price was $0.561, with a daily change of -1.3%.
policy
▌JPMorgan Chase: Stablecoin regulation could pose a major challenge to Tether’s market dominance
In a research report on Wednesday, JPMorgan Chase pointed out that increasingly stringent stablecoin regulations may pose a major challenge to Tether's market dominance. According to the European Crypto-Asset Markets Act (MiCA), 60% of stablecoin reserves must be kept in European banks, which may force Tether to adjust its reserve management strategy. Tether has previously been subject to regulatory scrutiny for its lack of transparency in the composition of its reserves, and the new regulations will further increase its pressure to disclose detailed information and conduct audits. JPMorgan Chase believes that if these new regulations cannot be complied with, Tether's dominance in the stablecoin market will be threatened.
Blockchain Applications
▌Developer Robin Linus releases "BitVM2" to improve Bitcoin programmability
Bitcoin developer Robin Linus released "BitVM2", an improved version of last year's "BitVM" paradigm, which aims to improve Bitcoin's programmability and push the concept closer to real-world applications. "BitVM2" introduces a "permissionless challenge" feature that allows anyone to question suspicious transactions, solving key deficiencies in the original version. The project uses advanced cryptography and new designs to create a secure "bridge" that enables Bitcoin to be transferred from the main network to a secondary network called "rollups" and eventually back to the main network. Linus' project is seen as a breakthrough because it does not require changes to Bitcoin's underlying code. The new design simplifies bridge operations and improves capital efficiency, and is expected to bring broader application prospects to the Bitcoin ecosystem.
Cryptocurrency
▌Gift card giant Raise partners with WalletConnect to launch crypto payment function
Gift card company giant Raise has partnered with WalletConnect to add support for multiple major digital wallets, including MetaMask, Phantom, and Coinbase Wallet. With this integration, users will be able to use ETH, DOT, BTC, and SOL tokens, as well as USDC and USDT stablecoins for in-app payments, with plans to add support for more cryptocurrencies.
Founded in 2012, the company has more than 6 million customers and direct partnerships with more than 1,000 major retailers. The company has facilitated more than $10 billion in transactions through its consumer applications, exchange, and B2B business. Raise also plans to integrate blockchain more deeply into its technology stack and expand its crypto payment options to 30 countries by the end of this year.
▌Donald Trump Jr. opens Telegram channel "The DeFiant Ones" for his crypto project
Donald Trump Jr. announced the opening of the Telegram channel "The DeFiant Ones" on the X platform to introduce upcoming crypto projects. In a post on X, he said: "There are a lot of rumors about our crypto project. To find out the real situation and stay up to date with official announcements, join our official Telegram channel. Don't rely on speculation – get news directly here!"
The channel’s name, “The Defiant Ones,” matches recent trademark applications. In July, a company called AMG Software Solutions filed trademark applications for “Be DeFiant,” “World Liberty,” and “World Liberty Financial.” According to its application, this third trademark is for “providing financial information in the decentralized finance (DeFi) space.”
Coinbase returns to Hawaii to focus on European market expansion
Coinbase is shifting its focus back to the EU and the UK after returning to the Hawaii market. Previously, Coinbase withdrew from the state in 2017 due to Hawaii's regulatory requirements, but the company re-entered the Hawaii market as new regulations on July 1, 2024 eliminated the money transmission license required for digital currency activities.
Faryar Shirzad, chief policy officer of Coinbase, said that this move reflects the trend of gradual clarification of cryptocurrency regulation around the world. Coinbase is now able to provide services in all 50 states in the United States and plans to expand its business in the European Union and the United Kingdom, especially in the context of the EU's "Markets in Crypto Assets" (MiCA) regulations coming into effect in 2024. Coinbase has also obtained licenses in Germany, Ireland and other places, and is committed to developing the European Union into its main market outside the United States.
▌Early before the summer plunge, billionaires such as Soros’ investment companies had already reduced their holdings in the “Big Seven” technology stocks
George Soros and Stanley Druckenmiller’s investment firms cut their holdings in the “Big Seven” tech stocks long before this year’s euphoric rally in tech stocks turned to a sharp decline in mid-July. Soros Fund Management sold a portion of its Alphabet holdings totaling $58 million, as well as about $15 million of Amazon stock, according to regulatory filings for the three months ending in June. Druckenmiller was among the investors to trim Nvidia’s stake. The chipmaker’s stock price has surged as enthusiasm for artificial intelligence companies has followed suit. His Duquesne Family Office reduced its holdings by more than 1.5 million shares, filings show. Meanwhile, David Tepper’s Appaloosa Management trimmed its three largest positions — Amazon, Microsoft and Meta — following similar reductions disclosed in late March. David Bonderman’s Wildcat Capital Management also trimmed its Meta holdings during the quarter, dumping $24 million worth of stock.
▌Bitcoin L2 protocol GOAT Network releases economic model
GOAT Network, which bills itself as “the first Bitcoin layer 2 with shared network ownership,” has released its economic model. According to the team: “The brief outlines GOAT Network’s economic model, reveals how its BTC layer 2 addresses challenges around security and limited BTC revenue, and leverages a decentralized collator framework with shared rewards to create sustainable BTC yields in BTC numeraire for BTC holders.”
GOAT Network said: “GOAT Network uses decentralized sorters, BitVM2, and zkVM technology to create a platform that inherits the security of the BTC mainnet while meeting the diverse financial needs of investors.”
▌After Bitcoin halving, listed mining companies raised a total of $2.2 billion to cope with cash flow tightening
After the Bitcoin halving, listed mining companies are turning to debt financing to increase cash flow. According to data from BlocksBridge Consulting based on earnings reports, 9 of the 13 US listed companies raised a total of US$1.25 billion through stock issuance in the second quarter of 2024. These include Bitdeer, Bitfarms, Cipher, CleanSpark, Core, HIVE, Marathon, Riot and Terawulf.
Additionally, Iris Energy raised $458 million in the last quarter, bringing the total raised by miners to more than $1.7 billion. A further $530 million was raised so far in the third quarter, bringing the total to more than $2.2 billion.
▌Analysis: Bitcoin's divergence from the U.S. stock market today may be related to the crypto market's concerns about Mt.Gox liquidation and distribution
Adam Button, an analyst at financial website Forexlive, believes that the encryption market is usually the leader in stock market sentiment, but this is not the case today. Bitcoin prices fell 3%, but stocks were at the day's highs, with the Nasdaq 100 up 2.5%. This disagreement may be related to the crypto market’s concerns about the liquidation and distribution of Mt.Gox. Regardless, the Nasdaq is now almost back to its July 31 closing level. At that time, the Fed's decision caused the Nasdaq to rebound sharply, but then a brutal global collapse occurred. The rebound of the Nasdaq since last Monday has been very significant, especially compared with the intraday low on August 5. The Nasdaq has risen by 12% since then. For most fund managers, this is a rich year. Return. Part of the reason behind this rebound trade is the renaissance of artificial intelligence trading, but it is mainly due to renewed confidence that global economic growth is in good shape.
Important economic developments
▌Agency: Strong U.S. consumer spending dispels concerns about recession
U.S. retail sales spending rose 1% from the previous month to $709.7 billion in July, dispelling concerns that the economy could be heading for a recession. While a slowdown in hiring sparked a brief but sharp market scare last week, the strong retail data suggests that the impact of any contraction has not spread to consumers. "The slowdown is happening, but it's definitely measured and there's really nothing to worry about," said Jeffrey Roach, chief economist at LPL Financial.
▌U.S. money market fund assets hit a record high
After a global sell-off in risky assets last week sent investors scurrying to cash, U.S. money market funds hit a new high as money further flocked to quality assets. About $28.4 billion flowed into U.S. money market funds in the week ended Aug. 14, pushing total assets to a record high of $6.22 trillion, according to the Investment Company Institute. Retail investors have been piling into money funds since the Federal Reserve began one of its most aggressive tightening cycles in decades in 2022. So far, inflows have continued even as investors expect the Fed to start cutting interest rates soon.
▌The probability of the Federal Reserve cutting interest rates by 25 basis points in September has risen to 74%
According to CME's "Fed Watch", the probability of the Fed cutting interest rates by 25 basis points in September is 74%, and the probability of cutting interest rates by 50 basis points is 26%. The probability of the Fed cutting interest rates by 50 basis points by November is 63.8%, the probability of cutting interest rates by 75 basis points is 32.6%, and the probability of cutting interest rates by 100 basis points is 3.6%.
▌Powell will have a window to set the tone for the September rate cut next Friday
Fed Chairman Jerome Powell is scheduled to speak on the economic outlook at 10:00 p.m. Beijing time next Friday, the first full day of the Kansas City Fed's annual economic symposium in Jackson Hole, Wyoming. The annual global central bank meeting provides Powell with an opportunity to make an updated assessment of the U.S. economic trajectory and monetary policy outlook between the Fed's July and September policy meetings. Last month, he said the Fed may consider cutting interest rates at its next meeting if inflation and the labor market continue to cool.
Golden Encyclopedia
What is Zero-Knowledge Proof?
Zero-knowledge proof (ZKP) is a cryptographic method that allows multiple parties to verify the authenticity of a statement without revealing information other than the statement itself. Many blockchains leverage ZKP to improve the security of interactions involving sensitive data. As a result, participants in a blockchain with ZKP can interact with greater confidence because private information is less likely to be leaked or exploited by malicious actors.
Disclaimer: As a blockchain information platform, Golden Finance publishes articles for information reference only and is not intended as actual investment advice. Please establish a correct investment philosophy and be sure to raise your risk awareness.
