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1. Brazil approves ETH ETF

The Facts:

  • The Brazilian securities regulator has approved an Ether ETF to trade on Brazil’s B3 stock exchange.
  • The approval comes shortly after a Bitcoin ETF had been approved in Brazil.
  • Meanwhile, the SEC has further delayed its decision on another Bitcoin ETF application.

Why it’s important:

  • Similar to the Bitcoin ETF, this ETF will further clarify the regulatory status of Ether in Latin America and provide an easy vehicle to gain exposure.
  • The space of investable products allowing exposure to cryptocurrencies beyond Bitcoin is expanding and illustrates investor demand.

 

2. Uniswap on Optimism

The Facts:

  • Uniswap, a leading decentralized exchange, has launched their alpha version of Uniswap on Optimism, a second layer scaling solution.
  • This will further improve and simplify position management of liquidity provided to Uniswap v3.
  • It is, however, still in alpha stage – meaning that complications are to be expected, such as downtime during which no fees can be earned by liquidity providers (while still taking on price risk).

Why it’s important:

  • Uniswap v3 allows to manage provided liquidity precisely in pre-defined ranges. This means that more fees can be earned with less capital invested, but also maximizes impermanent loss over the range. Adjusting the position relatively frequently and actively is more relevant compared to Uniswap v2.
  • The low fees and near-instant execution on Optimism allow for this and might lead to a further professionalization of liquidity provision.
S01E20_UniswapOptimism
Source: Twitter

3. S&P launches crypto indices

The Facts:

  • S&P Dow Jones Indices has launched its digital market indices.
  • Three indices have been launched, tracking Bitcoin, Ether, and a market cap weighted combination of the two.
  • Further indices comprising more of the digital asset space will be launched later this year.

Why it’s important:

  • The indices provide regulated benchmarks to build products with Bitcoin or Ether as underlying assets.
  • As a trusted price source, it might also benefit Bitcoin ETF applications and address price manipulation concerns of the SEC.
  • DAO’s are emerging from their trough of disillusionment. They are dynamic, they are non-jurisdictional, and they are shockingly powerful.
    Erik Voorhees

4. Miners continue to move

The Facts:

  • China continues to clamp down on miners – three additional provinces have orderedto halt crypto mining.
  • Bitcoin’s hash rate currently sits at ca. 96 million TH/s, slightly higher than its lows at 85 million TH/s.
  • On the other hand, a Bitcoin mining operation in Ohio is planning to start in December using nuclear power.

Why it’s important:

  • Miners in China continue to be pressured out of the country. The developments there are relevant due to the large amount of hash rate that China hosted, which has now dropped considerably.
  • Other miners are seizing the opportunity: With Bitcoin’s mining difficulty dropping, miners are becoming more profitable elsewhere and are incentivized to add hash rate to their operations.
  • Number of the Week
    $59 million
    Protocol revenue of Axie Infinity over the past 30 days according to tokenterminal

5. ECB progresses on digital euro

The Facts:

  • The European Central Bank approved an “Investigation Phase” to a digital euro.
  • The phase will last 24 months and will investigate issues such as distribution and design of the currency.
  • Future decisions on a potential large-scale implementation will be decided afterwards and might lead to a European CBDC within five years.

Why it’s important:

  • The ECB undertakes steps towards a digital currency since it sees risks in not doing so, such as loss of monetary authority to (foreign) payment providers or technology companies.
  • Europe is, however, behind China in its plans for a CBDC, which has already conducted several pilots.

 

In other news

  • British police seize $408 million worth of crypto (via Reuters)
  • Italian regulator says Binance is unauthorized (via CoinDesk)
  • Grayscale’s main fund becomes an SEC-reporting company (via TheBlock)
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