Institutional winds power BTC's comeback

Dear member,

Last week showcased a roaring bullish sentiment in the crypto space, led by Bitcoin. With $199 million surging back into Bitcoin, marking the largest weekly fund inflow in a year, investors are catching the drift. What’s fuelling this surge? Well, the anticipation of Bitcoin ETFs submitted to the SEC has a role, and institutional investors are not shying away from a piece of the action. And data backs it up – 96.9% of Bitcoin's short-term holders are now in profit.

Let's take a minute to talk about correlations between Bitcoin and the tech-heavy Nasdaq 100. They’re parting ways, hitting their lowest correlation in 3 years. But gold, the age-old safe harbor, is cozying up with Bitcoin, the duo hitting their highest correlation in years.

Taking a glance at Web3’s promising ventures, here are highlighted fund raises that occurred in this past week:

Now, from the financial bastions, let's paddle to the shores of Web2's recent transition into the Web3 wave. From FC Barcelona to Alibaba Cloud, a constant flow of traditional players embracing the decentralized, tokenized future. Further cementing this increasing adoption is a recent research that some 65% of Fortune 100 companies have onboarded blockchain initiatives into their businesses.

Asia is surging forward in the crypto realm, thanks to accommodating regulations and a tech-savvy population. This momentum may give Asia an edge over the U.S. in luring authentic Web3 innovators into a structured setting. Importantly, the IMF suggests a tilt towards sensible regulation over blanket prohibitions. Striking the right balance in government approaches to crypto regulation is imperative.

While the SEC recently asked BlackRock to re-file its ETF application, the crypto market took a quick plunge. Nevertheless, no other tradfi entity has had a record of ETF approvals like BlackRock. If the mere news of their filing (or request to re-file) could move the market to such degrees, imagine what happens when trillions of dollars of institutional money pours into Web3.

Best regards from the Future,
RFTF.ai 

Market Intel

Bitcoin investment sentiment turned bullish after the largest weekly fund inflow in a year, with $199 million reversing nearly half of the previous nine consecutive weeks of outflows. The renewed positive sentiment is attributed to recent filings for physically backed ETFs with the U.S. Securities & Exchange Commission.

Crypto market pumped despite SEC classifying certain cryptocurrencies as securities, which could lead to a significant increase in regulatory oversight. The probe is focused on "pump and dump" schemes.

Increasing interest from institutional investors is a bullish sign, says CEO of SEBA Bank. He believes that the increasing institutional adoption of digital assets is a key factor in the ongoing growth and maturity of the crypto sector.

96.9% of Bitcoin short-term holders are now in profit, based on on-chain data. Bitcoin investors locked in $537m profits following the recent rally above the $30,000 level, marking the second-largest profit-taking event of the year. The surge in profits could potentially lead to a risk of mass selling if a large number of holders decide to realize their gains.

Bitcoin and Nasdaq 100 correlation has hit its lowest level in three years, indicating a possible decoupling. Meanwhile, Bitcoin and gold hit the highest correlation in several years last week, with both assets rallying in 2023.

Volume of Ether staked on the Ethereum network has surpassed 23 million in June, amounting to $43.1 billion and representing nearly 20% of the current $220 billion supply of ETH. The increase in staking activity follows the network's Shapella upgrade in April, which allowed validators to withdraw their staked Ether from the Beacon Chain.

Funding Trends

Mythical Games has secured $37 million in funding in a Series C extension round led by Scytale Digital, with participation from ARK Invest, Andreessen Horowitz, and Animoca Brands. The Web3 gaming studio will utilize the funds for platform updates, infrastructure developments, and the launch of additional games.

One Trading closes a $32.7 million Series A funding round led by Peter Thiel’s Valar Ventures. Previously known as Bitpanda Pro, the funds will be used to hire new talent for the development of products and services in the Web3 space.

Startale Labs raises $3.5 million in a seed round from Sony Network Communications. Singapore Web3 tech giant will use the funds to set up the necessary infrastructure to back the global adoption of Web3.

Pixion Games secured $5.5 million in new investment as an extension of the Company’s seed round. The funds will be used by the gaming studio to accelerate the development of its flagship game, Fableborne, that utilizes on-chain in-game assets.

Web2 → Web3 Immersion

65% of Fortune 100 companies have some form of blockchain engagement, with financial services leading the way, based on a report. It also showed that 50% of Fortune 100 companies have been in pre-launch stage or already launched blockchain initiatives since the start of 2022.

Crypto adoption is higher in poorer African countries due to the high cost of remittances and the instability of local currencies. The study also found that countries with high inflation rates are more likely to adopt cryptocurrencies.

FC Barcelona is partnering with World of Women (WoW) for an upcoming NFT release, aiming to promote gender equality and inclusivity in the sports industry. The collaboration will see WoW create NFTs featuring female football players from FC Barcelona.

NFL Rivals has reached 1 million downloads. The NFT-based mobile game allows players to collect, trade, and play with officially licensed NFL player NFTs.

Kendall Jenner and J Balvin will judge an NFT competition to raise funds for AIDS charity. The competition, organized by NFT platform OneOf, will see artists create NFTs inspired by the fight against AIDS.

Near Protocol partners with Alibaba Cloud, leading to its token $NEAR rising to a three-week high of $1.60.

Eloop and Peaq Network have tokenized 100 Teslas, allowing users to own a fraction of the fleet and share the revenue the cars generate from daily rideshare operations. This initiative aims to democratize and decentralize Web3 ride sharing.

Mastercard is piloting a tokenized bank deposits program called the Multi-Token Network (MTN) in the UK. The initiative will also explore the use of central bank digital currencies and regulated stablecoins.

Warner Music Group is partnering with Polygon Labs to launch a music accelerator program that aims to onboard the next generation of blockchain music projects and decentralized applications on the Polygon network.

Mercado Libre offers Paxos’ Pax Dollar (USDP) to Mexican users of its fintech arm, Mercado Pago. This move by Latin America's leading online marketplace provides users with a stable digital asset pegged to the U.S. dollar.

Byte City set to honor martial arts legend Bruce Lee in the digital universe. Spurred by the next-generation social gaming platform for digital collectibles, this marks the first-ever appearance of Bruce Lee in the metaverse.

Sotheby's is launching an on-chain generative art program this summer, highlighting artists in the digital art field through fully on-chain sales. The first sale will honor generative art pioneer Vera Molnar, who is considered by many scholars to be the first female digital artist.

Regulatory Round-up

APAC

Asia is emerging as a winner in the global crypto race, with countries like China, Singapore, and South Korea leading in blockchain and crypto adoption. This is due to favorable regulations and a high level of tech literacy.

Global stablecoin may be launched by Japan’s largest bank, Mitsubishi UFJ Financial Group. The bank is exploring the use of blockchain technology to reduce costs and improve efficiency.

The Monetary Authority of Singapore and 11 financial firms evaluated models to streamline tokenized asset trading. Singapore’s central bank looks deeper into the potential of blockchain for automating and streamlining financial processes.

Indonesia classified 501 cryptocurrencies as commodities, paving the way for regional adoption.

Australia shifts to a tech-agnostic approach on token mapping, focusing on the function of a token rather than its underlying technology.

EU

Bank of England stated that the UK needs a digital pound to compete with other nations' central bank digital currencies (CBDCs).

Crypto.com granted a Virtual Asset Service Provider (VASP) registration by Spain's central bank, allowing the company to provide a range of crypto-related services in the country.

Swiss National Bank launched a wholesale CBDC pilot to explore the use of a digital Swiss franc in settling transactions between financial institutions.

International

IMF stated that bans on Bitcoin and other cryptocurrencies are not effective, suggesting that regulation and oversight are more practical approaches.

United Nations proposed a digital ID system tied to bank accounts and mobile payment platforms. The system aims to provide a universal digital identity for every global citizen by 2030.

US

SEC approved the first leveraged Bitcoin futures ETF, ProShares Bitcoin Strategy ETF, marking a significant step in the acceptance of cryptocurrencies by mainstream finance.

US Supreme Court ruled in favor of Coinbase, marking the first time a crypto company case has reached the top level of the US judiciary. The details of the case were not disclosed.

The Raven Also Spotted

Over 50% of the Fortune 100 companies are developing blockchain initiatives to stay competitive. The initiatives span various sectors, including finance, supply chain, and healthcare.

Jim Cramer is now not against crypto. The popular host of CNBC's Mad Money believes that cryptocurrencies are a legitimate investment class and should be part of a diversified portfolio.

Robert F. Kennedy Jr. pledged to enforce pro-Bitcoin laws if he becomes president. The Democrat’s presidential candidate believes that cryptocurrencies can provide financial freedom and help reduce income inequality.

BlackRock foresees a long road to institutional DeFi. The world's largest asset manager believes that regulatory clarity and technological advancements are needed for institutional investors to fully embrace DeFi.

Co-founders of Three Arrows Capital launched a new VC fund focused on crypto investments. The fund aims to capitalize on the growing opportunities in the crypto market.

Tether expected to generate more profits than BlackRock in 2023, according to analysts. The prediction is based on growing adoption of the world's largest stablecoin and the increasing demand for stablecoins.

$27 trillion in institutional assets could flow into crypto, suggests CoinShares CSO Meltem Demirors, signaling a new chapter for the industry. This follows the entry of large financial institutions into the digital asset space.