The Crypto Compass Issue #71

Hello readers,

The probability of an Ethereum ETF being approved has surged from 25% to 75%, signaling a significant potential shift in the cryptocurrency market. If approved, an Ethereum ETF could bring a wave of institutional investment, driving up demand and potentially leading to higher prices. Overall, this development could catalyze broader acceptance and integration of cryptocurrencies into traditional financial markets, fostering innovation and growth within the sector.

SEC Signals Possible Progress on Ether ETFs with Updated Filing Requests

The U.S. Securities and Exchange Commission (SEC) is updating its approach to ether exchange-traded funds (ETFs) by requesting swift updates to key filings from exchanges, indicating potential progress towards approval. Previously anticipated to reject these ETF applications, the SEC's request raises hopes, as highlighted by Bloomberg Intelligence analysts who recently increased the likelihood of approval from 25% to 75%. This optimism is tempered by ongoing investigations into whether ether should be classified as a security, especially after Ethereum's shift to a proof-of-stake mechanism. This classification could significantly impact the approval process for ether ETFs.

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Wisconsin Dives into Bitcoin with $100 Million Investment in BlackRock's IBIT

Wisconsin has taken a significant step into the cryptocurrency space, purchasing 94,562 shares of BlackRock’s iShares Bitcoin Trust (IBIT) valued at nearly $100 million, according to their recent SEC filing. This move marks Wisconsin as the first U.S. state to officially disclose a substantial acquisition of bitcoin, reflecting a growing institutional interest in the cryptocurrency. Despite a slight uptick in Bitcoin’s price following the news, the overall market reacted cautiously as fresh inflation data indicated higher economic pressures. The state’s investment decision could potentially signal a broader trend of institutional adoption, as noted by Bloomberg Intelligence's Eric Balchunas, suggesting that other entities may follow suit.

Vitalik Buterin Addresses Ethereum's Centralization Concerns in New Blog Post

Vitalik Buterin, Ethereum's co-founder, has addressed concerns about centralization in Ethereum's ecosystem in a recent blog post. He tackles three primary issues: MEV (Miner Extractable Value), liquid staking, and the high costs associated with running a solo node. Buterin highlights the ongoing efforts to manage MEV effectively, using techniques like transaction inclusion lists to limit potential centralization. He also discusses the challenges and potential solutions for reducing barriers to solo staking, such as lowering the 32 ETH requirement and simplifying the node setup process. Buterin emphasizes the importance of tackling these tough questions to prevent Ethereum from mirroring traditional financial systems and maintain its unique properties as it evolves.

Happenings of the week

• Solana DEX Drift opens airdrop claims for 120 million tokens with bonus

• LayerZero Labs CEO announces pause of Sybil 'bounty-hunter' process after influx of reports

• Telegram CEO Pavel Durov appears to endorse Notcoin following launch on TON blockchain

• Ethereum Layer-2 Network Blast Reveals Airdrop Details

Former Employee and Alleged Exploiter of Memecoin Platform Pump.fun Arrested and Released on Bail

Jarrett Dunn, formerly associated with Solana-based Pump.fun, was arrested in the UK after allegedly exploiting the platform for $1.9 million using admin privileges and flash loans. Released on bail, Dunn claimed the funds were "ill-gotten gains" and called for legal action against Pump.fun’s corporate entity. He awaits a court appearance in August and is currently communicating from a hospital. Pump.fun has not yet responded to the incident.

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