•Solana Surpasses Ethereum in Total Economic Value for a Single Day 💵
According to U.Today, Solana, a blockchain network, generated more Total Economic Value (TEV) than Ethereum on May 12, marking a first in its history. Blockworks Research reported that Solana's TEV reached $2,248,681, outpacing Ethereum's $1,977,416. TEV, a metric combining transaction fees and miner/extractor value (MEV), is often used to gauge the utility and adoption of a blockchain network.
Chris Burniske, a former Ark Invest analyst, commented on this development, suggesting that its important to monitor L1s that maintain their annual expansion in the form of TEV. A higher TEV can indicate increased usage and demand, potentially offering more flexibility in a network's economic policies.
However, this achievement has sparked debate among Solana and Ethereum users. Critics argue that comparing Solana's TEV with Ethereum's without considering layer-2 (L2) solutions is misleading. L2 solutions, built on top of Ethereum to enhance scalability and reduce fees, offload some activity from the main Ethereum blockchain (L1) while remaining a crucial part of it. Critics suggest that since some Ethereum activity has moved to L2s, these should be included in the comparison.
Despite the criticism, Burniske maintains that comparing TEV across blockchains remains valuable. He explained that each L2 operates in its own blockspace environment, and TEV comparisons are typically made on an L1-to-L1 basis. However, some may disagree with this approach and consider L2s an inseparable part of larger ecosystems like Ethereum, which has struggled with high fees in the past. Currently, Ethereum fees sometimes drop even below those of Tron. 💵
According to Odaily, hedge fund Millennium Management has revealed its investment portfolio in Bitcoin ETF, which is worth $2 billion. The firm's substantial investment in the digital currency ETF demonstrates its confidence in the potential of Bitcoin and its related financial products. This move by Millennium Management is a significant indicator of the growing acceptance and integration of cryptocurrency in mainstream finance. However, its important to note that investing in cryptocurrencies, including Bitcoin, carries inherent risks due to their volatile nature. Investors should always conduct thorough research and consider their risk tolerance before investing in such assets. 💵
•Pine Ridge Advisers Holds $205 Million in BlackRock IBIT, Fidelity FBTC, and Bitwise BITB 💵
According to Odaily, Pine Ridge Advisers, an investment advisory firm, holds $205 million in BlackRock IBIT, Fidelity FBTC, and Bitwise BITB. This was disclosed by Eric Balchunas, a senior ETF analyst, on platform X. The holdings represent 23% of the total assets managed by Pine Ridge Advisers.
Balchunas did not provide further details about the distribution of the holdings among the three assets. However, the substantial investment in these three assets indicates the firm's confidence in their potential. BlackRock IBIT, Fidelity FBTC, and Bitwise BITB are all well-known in the investment community, and their performance could significantly impact the overall portfolio of Pine Ridge Advisers.
This news comes at a time when more and more investment advisory firms are showing interest in digital assets. The move by Pine Ridge Advisers could be seen as a strategic decision to diversify their portfolio and tap into the potential of these assets. However, its important to note that investing in such assets also comes with its own set of risks and challenges. 💵
💥🔥European Regulators Considers Crypto's Inclusion in €12T Investment Market🔥💥
The European Union's security watchdog, the ESMA, is actively exploring the possibility of integrating cryptocurrencies into the vast €12 trillion investment product market. In an effort to gather insights, the ESMA has reached out to industry experts to seek their opinions on whether Undertakings for Collective Investment in Transferable Securities (UCITS) can incorporate various asset classes, including crypto assets, commodities, structured loans, emission allowances, catastrophe bonds, and unlisted equities.
UCITS are investment funds designed to streamline and safeguard investment transactions, encompassing mutual funds, exchange-traded funds, and money market funds. While these funds are governed by EU regulations, non-EU investors can also participate in them. Unlike solely crypto-focused spot BTC ETFs, UCITS investments encompass a variety of fund types, each with its own asset allocation based on risk profiles. If approved, it is unlikely that there will be independent UCITS funds with a 100% allocation to cryptocurrencies. Instead, multiple UCITS funds would likely feature a percentage allocation to crypto assets.
This move by ESMA coincides with the recent approvals of spot Bitcoin exchange-traded funds (ETFs) in the United States and Hong Kong. It appears that regulators worldwide are gradually becoming more receptive to incorporating crypto exposure into traditional investment avenues.
Stakeholders involved in UCITS have been given until August 7 to submit their feedback. If approved, the inclusion of crypto assets within UCITS would mark a significant milestone, potentially establishing them as one of the largest mainstream investment vehicles with exposure to cryptocurrencies. 🔥
•Only Four Top 20 Validators Have Upgraded to Solana's Latest Patch, Says Helius CEO 💵
According to PANews, Mert Mumtaz, the CEO of Helius, a development platform within the Solana ecosystem, has stated that only four out of the top 20 staking validators have upgraded to the latest patch of the Solana network, v1.17.3. This patch is designed to address congestion issues within the network.
In addition, trent.sol, a core developer from the Anza team responsible for handling congestion issues on the Solana network, reported that the adoption rate of the Solana Mainnet Beta v1.17.33 version has reached 32.4%. This information highlights the ongoing efforts to improve and stabilize the Solana network, as well as the challenges faced in getting all validators to adopt the latest patches. 💵
According to U.Today, JPMorgan Chase, the largest bank in the US, has revealed its holdings in Bitcoin exchange-traded funds (ETFs) in a recent filing. Despite the bank's total Bitcoin ETF holdings being a modest $1.2 million, this move is seen as another indication of the growing acceptance of Bitcoin. Robert Mitchnick of BlackRock recently stated that major financial institutions, including pension funds, are gearing up to invest in Bitcoin ETFs. Mitchnick downplayed the recent slowdown in inflows, asserting that the financial giant continues to witness robust demand for Bitcoin exposure.
In related news, Edmond de Rothschild (Suisse) S.A. now holds $4.2 million worth of Bitcoin ETF shares. Wells Fargo, another leading US bank, also revealed its Bitcoin ETF holdings in a regulatory filing. Despite these developments, JPMorgan CEO Jamie Dimon remains a vocal critic of Bitcoin. In December, he suggested that the US government should consider shutting down the leading cryptocurrency. He recently referred to the flagship cryptocurrency as a 'ponzi scheme.' Despite Dimon's criticism, JPMorgan launched a passively managed Bitcoin fund for its wealth clients in 2021. The bank was also listed among the authorized participants for BlackRock's record-breaking Bitcoin ETF last year.
On Thursday, Bitcoin ETFs reported mixed flows. Grayscale's GBTC experienced significant outflows of over $43 million, which were not offset by BlackRock's relatively modest inflows of $14.2 million. Despite the negative ETF data, Bitcoin managed to bounce back to the $63,000 level before falling again. 💵
•Hong Kong Bitcoin Spot ETF Sees First Net Redemption, Ethereum Spot ETF Continues Net Purchase 💵
According to PANews, data from SoSo Value indicates that the Hong Kong Bitcoin Spot ETF experienced its first net redemption since it began trading on April 30. On May 6, the single-day net redemption of Bitcoin was 75.36, with a total Bitcoin holding of 4,150. The single-day transaction amount was $8.6 million, and the total net assets were $266 million.
In contrast, the Hong Kong Ethereum Spot ETF maintained a single-day net purchase for four consecutive trading days. On the same day, the single-day net purchase of Ethereum was 999.75, with a total Ethereum holding of 17,280. The single-day transaction amount was $1.8 million, and the total net assets were $54.87 million.
It's worth noting that the Hong Kong crypto ETF supports a spot application and redemption mechanism. Net purchase refers to a positive difference between the purchase amount and the redemption amount within a certain period, meaning more purchases than sales. Conversely, net redemption means more sales than purchases. 💵