cropped-Weekly_Wrap_Article_Image-scaled-4.jpg

1. Bitcoin ETF in Brazil

The Facts:

  • On Wednesday, June 23, a Bitcoin ETF went live for trading on the Brazil stock exchange.
  • This marks the first time a Bitcoin ETF is tradeable in Latin America.
  • In the U.S., the SEC has delayed its decision on Valkyrie’s Bitcoin ETF until August.

Why it’s important:

  • The ETF will allow more investors to access the crypto markets through traditional financial markets.
  • It also provides regulatory clarity for institutional investors from the Latin America region.

 

2. EIP-1559 is one step closer

The Facts:

  • The Ethereum Ropsten testnet successfully hard forked to a version including EIP-1559.
  • On the Ethereum mainnet, EIP-1559 is scheduled to go live with the London hardfork.
  • Holders of ETH do not need to take action because of the upgrade.

Why it’s important:

  • EIP-1559 will improve the user experience on Ethereum by allowing for more predictable fees.
  • In addition, part of the transaction fees will be burned, decreasing the annual net issuance of new ETH to pay for protocol security.
S01E17_ETHFees
Source: etherscan.io, Bitcoin Suisse Research.

 

3. Taproot coming to Bitcoin

The Facts:

  • The Taproot upgrade for Bitcoin has found sufficient support from miners, and will activate at block height 709’632 (ca. in November).
  • Taproot will enable Schnorr signatures, which comes with privacy and scaling benefits.
  • For example, it allows for multi-signature transactions to be indistinguishable in terms of signature size from single-signature transactions.

Why it’s important:

  • Taproot is the most anticipated upgrade coming to Bitcoin since years. The improved privacy and scalability features will enable developers to further improve user experience on Bitcoin.
  • It brings benefits for the Lightning Network, Bitcoin’s second layer scaling approach, and allow more privacy when opening and closing channels.
  • Number of the Week
    70’000
    Bitcoin options expiring on June 25

 

4. BIS and Israel on CBDCs

The Facts:

  • The Bank for International Settlements (BIS) supports the implementation of central bank digital currencies (CBDCs).
  • CBDCs would take the role of “modernizing finance and ensuring Big Tech does not take control of money”.
  • The Bank of Israel is testing Ethereum’s technology for their digital shekel.

Why it’s important:

  • More and more countries join the race for the first fully functional and widely used CBDC. China certainly still leads this race, with multiple pilots and small-scale implementations already in progress.
  • Nonetheless, other countries are making progress, and almost every major central bank globally is looking into the topic and exploring options.
  • Disintermediating can be quite helpful for financial stability.
    Hester Peirce on DeFi

 

5. Iran seizes mining gear

The Facts:

  • Iran seized around 7’000 mining machines on June 22.
  • This comes after Iran had banned Bitcoin mining in late May to reduce the number of power blackouts.
  • Besides Iran, China continues to enforce their regulation on mining, forcing many mining farms to shut down.

Why it’s important:

  • Iran hosts about 4.5% of the total Bitcoin mining hash rate according to Elliptic. China’s actions are certainly more impactful, but Iran’s stance on mining should not be neglected.
  • Bitcoin miners are typically highly mobile, though, and are attracted to wherever energy is cheaply available to maximize their profit margins.

 

In other news

  • a16z launches new $2.2 billion crypto venture fund (via The Block)
  • Crypto data firm Kaiko closes $24 million funding round (via CoinDesk)
  • StakeHound sues Fireblocks for loss of $75 million worth of ETH (via The Block)
  1. Homepage
  2. Research
  3. The Weekly Wrap – 2...