There’s never a dull moment on the blockchain. Here’s what you need to know this week:

Bitcoin

$114,867.21

󰢸

2.90%

Ethereum

$4,185.60

󰢸

6.30%

Tether

$1.00

󰍾

0.01%

BNB

$1,156.48

󰢸

3.11%

XRP

$2.65

󰢸

1.34%

Solana

$203.64

󰢸

5.51%

See the latest prices

MARKET BYTES

What’s next for ETH ETFs, Runes bounce back, and more news to know

Crypto prices ticked upward this week, with BTC breaking above $70,000 and ETH hovering around $3,800. Despite a brief pullback as some traders seemingly sold for a profit on Tuesday morning, BTC regained momentum and jumped above $71,000 on Wednesday.

Meanwhile, a spot BTC ETF debuted on Australia’s largest stock market; spot BTC ETFs in the U.S. have seen 16 straight days of inflows; and some memecoins rallied following the reemergence of Roaring Kitty, the Reddit user whose GameStop investments helped spark the memestock craze of 2021.

Here’s more crypto news you should know.

1. Ethereum ETF launch inches closer 

The U.S. Securities and Exchange Commission (SEC) surprised markets on May 23 by approving a key step in the eventual arrival of spot ETH ETFs from applicants including BlackRock and Fidelity. Now, all eyes are focused on when the products will actually launch.

Last week, the SEC received registration documents from prospective ETF issuers. Analysts suggest that the SEC and applicants will go through several rounds of notes and amendments, putting the likely launch date several weeks, or potentially months, away.

New fund details have also emerged in the filings: BlackRock will be seeding its ETF with $10 million, and VanEck received $100,000 to seed its product. Franklin Templeton disclosed a 0.19% annual fee for its ETF — the same percentage it charges for its bitcoin ETF, which has the lowest fee on the market.

• ETH season… In advance of the ETH ETFs, institutional investors are seemingly already ramping up their exposure to Ethereum. Last week, Ethereum investment products saw more than $33 million of inflows, their second straight week in the green after months of minimal net activity. 

2. Bitcoin Runes see major resurgence

The Runes protocol, which launched alongside the BTC halving earlier this spring, allows users to create tokens on top of Bitcoin’s network, much like you can on blockchains including Ethereum and Solana. 

After its initial buzz, the protocol saw transaction counts plummet around 90% in the following weeks. 

But don’t count Runes out yet. 

This week, a wide range of Runes-based memecoins clocked double digit gains (with one closing in on a billion-dollar market cap as of Tuesday.) And on June 3, nearly 50% of all activity on the Bitcoin blockchain came from Runes transactions, up from just 12% on May 29.

• Runes return… Some of the new interest can seemingly be attributed to institutional investors in Asia. One Hong Kong-based firm, the Newman Group, is actively pushing its portfolio companies to utilize the protocol, which it thinks could become the “preferred choice for institutions looking to access DeFi on Bitcoin.”

3. President Biden vetoed a bipartisan crypto custody bill 

In May, the SEC surprised markets by giving a thumbs-up to spot ETH ETFs. And in recent weeks, a growing number of members from both political parties have been working together to move crypto legislation forward in Congress. 

One seeming recent win for crypto was the bipartisan vote in both the House and Senate to repeal a controversial SEC rule called SAB 121 that makes it difficult for financial institutions to hold crypto for customers like they would any other asset. 

But even though the SAB 121 repeal passed with votes from Senate Majority Leader Chuck Schumer (D-N.Y.) and other leading Dems, President Biden followed through on his promised veto of the measure over the weekend. 

• Winning issue… Despite Biden’s veto, a growing group of Democrats are working with Republican leadership to pass the Financial Innovation and Technology for the 21st Century Act (FIT21), which moved to the Senate last month after passing in the House. Among many other things, FIT21 would clarify questions around which agencies (the SEC or the CFTC) have the responsibility to regulate various aspects of the crypto industry, create consumer protections for the 52 million Americans who own crypto, and give web3 developers looking to launch projects in the U.S. clear rules of the road. All of these moves are happening against a backdrop of crypto becoming a campaign issue. For example, Donald Trump revealed a set of strongly pro-crypto campaign promises. All of this leaves some market watchers hoping that political winds across both party lines are shifting in favor of crypto. 

TUNE IN

ARK Invest’s Cathie Wood on the rise of a new asset class

On the latest episode of “Evolving Money,” Coinbase’s new podcast created in collaboration with Bloomberg Media Studios, ARK Invest CEO Cathie Wood joins to talk about the roles crypto is playing in modern portfolios and why bitcoin can be thought of as both a risk-on and a risk-off asset. The episode also explores what the invention of bitcoin has in common with the launch of the world’s first stock market.

SAFETY FIRST

Five simple security tips that can protect your crypto from hackers and scammers

This has been a big year for crypto: With bitcoin sitting near all-time highs, there are now an estimated 560 million crypto users around the globe. 

But as crypto markets grow and evolve during this bull cycle, it's also crucial to brush up on your cybersecurity habits to keep any would-be bad actors at bay.

So whether you’re a brand-new BTC trader or a seasoned DeFi pro, here are five easy tips for making your crypto (and the rest of your digital footprint) more secure.

1. Use a password manager

Remembering passwords isn’t easy, which is why many people repeatedly use the same simple phrases across multiple accounts (a big no no!). A password manager can generate strong, secure passwords, while also storing them for you with no memorization required. And if you’re worried about any of your accounts potentially being exposed to a data breach, check out haveibeenpwned.com.

2. Enable 2-factor authentication (2FA) across all your important accounts

2FA can protect your accounts even if a hacker steals your password. It's recommended that you utilize an authenticator app, or a hardware security key. You can also use SMS-based 2FA, but this is widely considered to be the least secure of the three options due to the increased risk of “SIM-swapping,” in which your phone number is transferred to another device, and hackers can steal your texts to see your authentication code.

3. Protect your recovery phrase. 

Recovery phrases are literally the key to self-custody crypto wallets like Coinbase Wallet. This string of 12-to-24 words is what grants you access to your wallet, and anyone with access to your recovery phrase has access to the crypto in that wallet. If you delete your wallet, you can always restore it with this phrase. But if you lose your recovery phrase, you lose your crypto. (For many users, keeping crypto in the “hosted wallet” that comes with every Coinbase account is a more convenient option. You can add another layer of security without having to manage recovery phrases by moving some crypto into a Coinbase Vault.)

4. Keep your devices up to date.

Make sure all of your devices are running the newest operating systems, and keep your web browsers and other software up to date. Also consider uninstalling questionable or unnecessary pieces of software, especially tools that allow remote access. An ad blocker can help protect you from malicious ads, but it’s also key to practice safe web browsing habits — never click on suspicious links, download suspicious programs, or install browser plug-ins developed by unknown third-parties.

5. Don’t brag.

In the sage words of Kendrick Lamar: be humble. Just like a brand new Lambo in your driveway could make you a target for burglars, flashing your gains (or losses!) online could make you a target for cybercriminals.

NUMBERS TO KNOW

$70 million

Amount of capital raised by bitcoin-staking protocol Babylon in a new funding round. Babylon makes it possible for BTC holders to use some of their crypto to help secure proof-of-stake blockchains like Ethereum or Solana in exchange for rewards. 

$5 million

Amount that the University of Austin aims to raise for its new bitcoin endowment, which it launched in partnership with BTC financial service firm Unchained. Said one faculty member, “Bitcoin provides a unique opportunity for advancing UATX’s commitment to cultivating future generations of leaders and innovators.”

455,000

All-time high number of new tokens that were launched on the Solana blockchain in May as the surging popularity of memecoins met new tools that make creating a token nearly as easy as sending an email.

316

Approximate age of a Stradivarius violin that has been tokenized and put on a blockchain, potentially allowing traders to buy shares in the estimated $9 million instrument. The tokenization of real-world assets is predicted to grow into a $10 trillion industry by 2030. As BlackRock CEO Larry Fink has put it, tokenization represents “the next generation for markets.”

TOKEN TRIVIA

How many Americans own crypto?

Find the answer below.

Trivia Answer