The Crypto Compass Issue #64

Hello readers,

This week in the crypto world, institutions are making bold moves with Ethereum and Bitcoin. BlackRock is bullish on Ethereum ETF (a way to invest in Ethereum through the stock market), even though there might be new rules coming. At the same time, Tether, a big player in stablecoins, bought a huge amount of Bitcoin worth $600 million. These events highlight that institutions are really interested in cryptocurrencies, pointing to a future where more people might invest in them, despite the challenges and rules they might face.

BlackRock's CEO Sees Potential for Ether ETF Amid SEC Scrutiny

BlackRock CEO Larry Fink expressed optimism about the possibility of listing an Ethereum ETF, even if the SEC classifies Ether as a security. This stance introduces a hopeful outlook for Ether amidst increasing regulatory scrutiny. The SEC's current deliberations on Ether's classification have raised concerns about the feasibility of an Ether ETF in the U.S. As the market awaits the SEC's decision, BlackRock's bullish stance on digital assets underscores the growing institutional interest in cryptocurrency's long-term viability.

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Tether Expands Bitcoin Holdings with $600 Million Purchase

Stablecoin giant Tether has made a significant addition to its Bitcoin treasury, acquiring 8,888 BTC, valued at approximately $600 million. This move, captured through on-chain data from a transaction between Bitfinex and an undisclosed Tether wallet, reflects the company's ongoing strategy to diversify its reserves and capitalize on Bitcoin's potential. Now holding over 75,000 BTC worth $5.3 billion, Tether positions itself as a formidable entity in the cryptocurrency market, underscoring Bitcoin's increasing mainstream acceptance.

Liquid Restaking Tokens Near $8 Billion in Total Value Locked

The total value locked (TVL) in liquid restaking tokens (LRTs) has surged to nearly $8 billion, driven by substantial growth in protocols like Etherfi, Renzo, Kelp, Puffer, and others, leveraging EigenLayer to allow users access to their funds while staked. Etherfi leads with a TVL exceeding $3.2 billion, followed by significant holdings in Renzo, Puffer, and others, reflecting a shift towards utilizing liquid staking solutions for enhanced economic security and accessibility.

Happenings of the week

• Base transactions and DEX volumes surge to new all-time highs

• Crypto Hiring: McKinsey exec joins Ondo Finance

• Vitalik Buterin emphasizes need for parallelization, internal scaling in Ethereum rollups

• Telegram to Enable Ad Purchases Using Toncoin

Munchables Web3 Gaming Platform Suffers $60 Million Exploit

Munchables, a web3 gaming platform built on the Blast Ethereum Layer 2 network, experienced a significant security breach, resulting in a loss of over $60 million. The platform disclosed the exploit on X at 5:37 p.m. ET, with crypto investigator ZachXBT identifying the exploiter's address, which held nearly 17,411 ETH worth $62.5 million. The hacker has since returned all the exploited funds as of the time of this article.

Stay tuned for more updates next week! If you haven't yet, hit that subscribe button to ensure you never miss an issue. Found value in this edition? Please consider sharing it with your friends, colleagues, and fellow crypto enthusiasts. Together, let's navigate the world of crypto with clarity and insight!