The Crypto Compass Issue #78

Hello readers,

This week brings significant developments highlighting contrasting approaches to cryptocurrency regulation and management in different parts of the world. In Germany, the government has continued its aggressive sell-off of bitcoin, reducing its holdings significantly. Meanwhile, in the U.S., the Republican National Committee has adopted a pro-crypto platform, signaling a potential shift in policy if the party gains power in the upcoming elections. These contrasting stances underscore the global diversity in regulatory approaches and the evolving landscape of digital asset management.

Ethereum ETFs Amend Filings, Eye July Launch

Seven spot Ethereum ETF applicants, including Franklin Templeton, VanEck, Invesco Galaxy, BlackRock, 21Shares, and Fidelity, have amended their registration statements with the SEC, fueling expectations for a possible early July launch. Bloomberg analyst Eric Balchunas predicts a July 2 launch date, though he expects Ethereum ETFs to attract less than 20% of the AUM that Bitcoin ETFs have garnered. The updated filings revealed sponsor fees, with Franklin Templeton and VanEck disclosing 0.19% and 0.20% fees respectively, putting pressure on BlackRock to announce competitive fees.

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Republican National Committee Adopts Pro-Crypto Policy Platform

The Republican National Committee has unveiled a new policy platform that supports cryptocurrency innovation and opposes the creation of a central bank digital currency (CBDC). The platform reflects former President Donald Trump and other GOP leaders' growing interest in digital assets as they approach the November election. Key promises include defending the right to mine Bitcoin, ensuring Americans can self-custody digital assets, and opposing government surveillance in crypto transactions. This stance marks a shift for Trump, who has become a staunch supporter of cryptocurrency, even launching his own branded NFTs and accepting crypto donations for his campaign.

German Government Continues Bitcoin Sell-Off, Less Than Half Remains

The German government has continued its bitcoin selling spree, sending $339.2 million worth of bitcoin to exchanges and market makers on Tuesday. Following the seizure of 50,000 bitcoins from Movie2k in January, the government now holds 22,846 bitcoins, down from 50,000. Recent transactions include sending 800 BTC to Kraken, 5,000 BTC to B2C2 Group, and 107 BTC to Cumberland DRW. Additionally, it received 1,692 BTC back from Bitstamp. This activity has sparked criticism from German Bundestag member Joana Cotar, who urged the government to retain the bitcoin as a strategic reserve asset.

Happenings of the week

• BlackRock's BUIDL Fund Tops $500M as Tokenized Treasury Market Soars

• Staked Ethereum Hits 27% of Supply as ETF Trading Start Looms

• Bitcoin Climbs Over $57K, With Some Saying Mt. Gox Sales Already ‘Priced In’

• Bitcoin's correlation to equities is currently the lowest it's been in over 4.5 years

Celsius Seeks to Recover $100 Million from Pre-Bankruptcy Withdrawals

Celsius' bankruptcy administration has filed legal action to recover $100 million from over 1,500 users who withdrew funds in the 90 days before the company's collapse. The Celsius Litigation Administrator argues that these withdrawals unfairly benefited early withdrawers at the expense of others. The legal action targets those with more than $100,000 in withdrawal preference exposure (WPE). Users have expressed concerns, claiming they are being unfairly targeted for legitimate transactions and that the litigation team is using current market rates rather than those from the time of the withdrawals.

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