3Commas Weekly Crypto Industry Updates July 12th, 2024

Ethereum ETF could hit $10B inflow post launch says Analyst

Tom Dunleavy, a managing partner at crypto investment firm MV Global believes ETH’s spot price will respond positively to ETF inflows than BTC’s, says crypto.

“We saw $15 billion in flows for Bitcoin. I think we’re probably going to see $5 billion to $10 billion for Ethereum,” Dunleavy said. “I expect a very positive price impact sending us to new all-time highs by early Q4.”

Eight spot Ether ETFs are still awaiting a final approval from United States regulators and are expected to begin trading immediately. Approvals are widely expected to happen between July and September.

Why does it matter? Investors and analysts believe that Ethereum spot etf trading approval on the United States market can potentially record more success than Bitcoin spot etf.

Bank of Italy to release crypto rules in the coming days 

The governor of the apex bank of Italy shares how the country should apply the EU’s MiCA crypto laws. 

Bank of Italy Governor Fabio Panetta said on Tuesday, July 9 that the MiCA rule has two primary requirements to meet for a token to be used in payments. The two categories include; 

• Asset-Reference Tokens (ARTs)
• Electronic Money Tokens (EMTs)

An EMT’s value is linked to a single official currency such as a United States dollar-backed stablecoin. An ART’s value is pegged to one or more assets, such as the gold-backed token Tether Gold.

A decree showed its plans on fines range from 5,000 euros ($5,400) to 5 million euros ($5.4 million) for market manipulation and insider trading violations.

Why does it matter? MiCA rules are now being adopted by European regions and you should know what it entails in your country to stay compliant. 

Germany's Bitcoin selling spree could be over soon 

After yesterday's transactions, the wallets holding Bitcoins linked to the German government held only 4,925 BTC worth $285 million at current prices. 

The German government held 50,000 BTC worth nearly $3 billion before they began selling it off  three weeks ago when they started selling. So far, roughly 30,000 Bitcoins worth over $2.5B have been sold at the open market.

Why does it matter? Investors’ fears about this negatively impacting Bitcoin prices will subside and possibly see Bitcoin have an upward trend.

Tokenized treasuries are growing faster than stablecoins.

Securitize CEO Carlos Domingo says that tokenized treasury bills are growing way faster than stablecoins. 

Domingo thinks BlackRock's BUIDL (BlackRock USD Institutional Digital Liquidity) Fund which has crossed $500M in tokenized money market funds will potentially hit its next $500 million milestone in just a few months.

Currently, the total value of the tokenized treasuries market, which includes BUIDL, sits at $1.85 billion according to rwa.xyz onchain data. BUIDL has $523M while Ondo Finance, the second largest tokenized treasuries has $496.2M in funds.

Domingo believes that the tokenized treasury market can achieve 10% to 20% of the stablecoins $160B market capitalization. 

Why does it matter? Tokenization is a new money market in crypto that can potentially impact market performance. As a trader, you should stay updated and know about this new instrument. 

The new Bitcoin buyer in town, Metaplanet makes Bitcoin a reserve asset 

Tokyo-listed Metaplanet has adopted Bitcoin (BTC) as a strategic reserve asset. The Japanese Microstrategy is buying Bitcoin as a hedge against Japan's debt burden and the resulting volatility in Yen.

Following the strategy pursued by the U.S.-listed MicroStrategy (MSTR), Metaplanet has acquired 203.7 BTC worth $11.6 million per Bitcointreasuries.net

The Japanese firm started its acquisition on April 23, 2024, acquiring 97.85 Bitcoins. Metaplanet has now acquired a total of 203.7 BTC in 5 different purchases as of the last purchase on July 8, 2024.

Why does it matter? The new Bitcoin acquisitions from a new player in the Asian market suggests an increasing interest from the Asian companies.