The Crypto Compass Issue #74

Hello readers,

This week brings significant developments in the financial and crypto landscapes. Robinhood is set to acquire Bitstamp, a move poised to expand its global crypto footprint and introduce a reputable institutional business to its platform. Meanwhile, former President Donald Trump has continued to openly endorse cryptocurrency, positioning himself as a champion for the sector while criticizing current regulatory approaches. These moves highlight the growing importance and influence of cryptocurrency in both corporate strategy and political discourse.

Robinhood to Acquire Bitstamp in Strategic Expansion Move

Robinhood Markets, Inc. has announced its agreement to acquire Bitstamp Ltd., a global cryptocurrency exchange, in a bid to enhance its crypto offerings and expand internationally. This acquisition, expected to close in the first half of 2025 pending regulatory approvals, will integrate Bitstamp's extensive licenses and customer base across the EU, UK, US, and Asia into Robinhood's platform. The move will also introduce Robinhood's first institutional business, leveraging Bitstamp's established reputation and robust infrastructure in the crypto market.

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Trump Champions Cryptocurrency at San Francisco Fundraiser

At a San Francisco fundraiser, Donald Trump positioned himself as a strong advocate for cryptocurrency, criticizing Democratic regulatory efforts and raising $12 million. Hosted by venture capitalists David Sacks and Chamath Palihapitiya, Trump promised to be the "crypto president," appealing to an industry facing increased scrutiny following major bankruptcies in 2022. Trump assured supporters that, if elected, he would halt the regulatory actions spearheaded by the Biden administration and SEC Chair Gary Gensler. The event attracted significant figures from the crypto world, including executives from Coinbase and the Winklevoss twins.

Hong Kong Asset Managers Push for Staking in Ether ETFs

Hong Kong asset managers are working to include staking in their spot ether ETFs, aiming for approval this year, according to Animoca Brands Chairman Yat Siu. Discussions are ongoing, and there's optimism that Hong Kong will approve ether staking before the U.S. HashKey, co-managing ETFs with Bosera, is formulating a staking proposal designed to earn rewards without added risk. Blockchain infrastructure provider Blockdaemon is also in talks with Hong Kong ETF issuers and custodians about offering staking services. Industry participants are hopeful that the staking feature will be approved soon, filling a significant gap in the market.

Happenings of the week

• Ethereum’s Pectra Upgrade May Be Split Into Two Forks

• Arbitrum DAO votes to approve $215 million gaming ecosystem fund

• GameStop Down 30% After Disappointing Q1 Report Released Early

• Spot Ethereum ETFs could capture up to 20% of Bitcoin ETF flows, analyst predicts

Ethereum Layer-2 Network Base Surpasses $8 Billion TVL

The Ethereum layer-2 network Base has exceeded $8 billion in total value locked (TVL), surpassing Optimism’s OP Mainnet. According to L2Beat data, Base's TVL reached $8.05 billion on June 10, with $2.14 billion in canonically bridged value and $5.92 billion in natively minted assets. Supported by Coinbase, Base is now the second-largest Ethereum scaler in TVL, behind Arbitrum One. Since its launch in August 2023, Base has rapidly grown, leading all Ethereum layer-2 networks in transactions per second and on-chain profits, despite a recent dip in monthly earnings.

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