BlackRock has recently surpassed Grayscale to become the top holder of cryptocurrency ETFs, marking a significant change in the investment landscape. As the largest asset manager globally, BlackRock now leads in crypto ETFs with $21.2 billion in assets, just ahead of Grayscale.

Previously, the BlackRock Ethereum ETF, known as $ETHA, was listed on the Depository Trust and Clearing Corporation (DTCC), following approval by the United States Securities and Exchange Commission (SEC). The move came shortly after the SEC approved several spot Ether ETFs.

BlackRock Over Grayscale

The success of BlackRock is largely due to its two key funds, the IBIT (spot Bitcoin ETF) and the ETHA (spot Ethereum ETF). In comparison, Grayscale offers four funds but has fallen behind in ETF holdings, despite maintaining a larger overall balance thanks to its GDLC fund, which holds $460 million.

Since its January launch, the IBIT has shown strong performance, with minimal outflows, helping it become a preferred choice for Bitcoin investors. Meanwhile, GBTC has struggled, facing a net outflow of $19.65 billion and losing its leading position. Major investment banks like Morgan Stanley and Goldman Sachs have also shifted their support to BlackRock and its iShares Bitcoin ETF. This trend highlights a growing institutional preference for more stable crypto ETFs.

Bitcoin Over Ethereum

While Bitcoin ETFs perform well, Ethereum ETFs have faced challenges, with a recent net outflow of $14.17 million compared to Bitcoin which has $32.57 million inflow. This indicates stronger market acceptance of Bitcoin ETFs over Ethereum.

The rise of BlackRock is expected to intensify competition among asset managers, driving further innovation in the market. However, the ongoing issues with Ethereum ETFs suggest that balancing risk and reward will be crucial as the market evolves. The ascension of BlackRock to the top of the crypto ETF market marks a major shift, with strong institutional backing positioning it for future leadership, while Grayscale works to regain its footing.

Indian authorities have arrested Shailesh Babulal Bhatt, who is accused of kidnapping two people linked to the collapsed BitConnect crypto scheme to recoup his investment. On August 17th, the Enforcement Directorate (ED) revealed Bhatt had lost money in BitConnect Coin, a cryptocurrency tied to the now-defunct BitConnect platform, deemed a global Ponzi scheme.

A Lengthy Investigation

Allegedly, Bhatt and his accomplices abducted two employees of Satish Kumbhani, the founder of BitConnect, demanding a ransom of 2,091 Bitcoin, 11,000 Litecoin, and roughly $1.7 million USD.  During the investigation, Bhatt admitted to paying his accomplices $34 million, which was used to buy properties, gold, and other assets.

After a lengthy investigation by local authorities, Bhaty was arrested on August 13th under the Prevention of Money-Laundering Act (PMLA) and remains in custody after a court appearance in Ahmedabad, India. The investigation followed reports filed by the State Crime Investigation Department (CID) in Surat. So far, the agency has seized assets worth $52 million, with the probe still ongoing.

An Infamous Scam

BitConnect, launched in 2016 and collapsing in 2018, defrauded 4,000 people across 95 countries, resulting in losses of about $2.4 billion. The scheme has been accused of being a major Ponzi operation. BitConnect founder Satish Kumbhani faces charges in the US for running the scheme and remains unaccounted for.

In addition, key figures involved in BitConnect have faced legal action. Glenn Arcaro, a prominent US promoter, was sentenced to 38 months in prison in September 2022. John Bigatton, another major promoter, was convicted in July for providing unlicensed financial advice.

Holonym Foundation secured $5.50M in Seed funding with help by Paper Ventures. Holonym is a privacy-focused digital identity platform that uses zero-knowledge proofs to enable users to verify their identity without revealing personal information.

CrunchDAO closed a $3.50M Seed round with support by Multicoin Capital. CrunchDAO is an AI research community made up of data scientists who participate in distributed machine learning competitions.

WSPN raised a whopping $30.00M in Seed funding led by Foresight Ventures. WSPN is a global digital payments company that offers transparent, fast, and efficient payment solutions using Distributed Ledger Technology (DLT).

KIP Protocol raised $5.00M in a Private Token Sale with support by Animoca Brands. KIP Protocol is a foundational layer in the world of Web3, designed to enable AI models, applications, and data owners to securely transact and monetize their assets.

MyShell.ai secured an undisclosed amount which was funded by Binance Labs. MyShell is a Web3 enabled AI platform that lets users create personalized chatbots called Shells. The platform is for both content creators and consumers.

Chaos Labs completed a massive $55.00M Series A round with Haun Ventures. Chaos Labs is a platform that focuses on providing advanced risk management solutions for DeFi protocols.

Orderly Network raised $5.00M in a Strategic round with help by OKX Ventures. Orderly Network is a combination of an orderbook based trading infrastructure and a robust liquidity layer offering spot and perpetual futures orderbooks.

Satflow achieved $7.60M in Seed funding with help by Variant. Satflow provides infrastructure tailored for market makers and high-frequency traders.

Sling Money completed a $15.00M Series A with support by Ribbit Capital. Sling is an app designed to make sending and receiving money effortless.

Rivalz Network secured $9.00M with support by Delphi Ventures. Rivalz Network is an AI-driven DePin RollApp built on Dymesion.

Sahara AI raised $37.00M in Series A funding with support by Polychain Capital. Sahara is a decentralized AI network designed to create personalized Knowledge Agents (KA) for both individuals and businesses.

Rhinestone secured $5.00M in Seed funding with support by 1kx. Rhinestone provides distribution through a module marketplace and turnkey business models for monetization.

Parfin secured $10.00M in Series A with help by ParaFi Capital. Parfin is a digital asset management platform that provides secure and compliant solutions for managing cryptocurrencies and digital assets.

Autoverse Studios Inc. raised $8.00M with White Star Capital. Autoverse is a Web3 game studio that developed Auto Legends, a racing game that can be played on PC, Mac, iOS, and Android platforms.

The price of Bitcoin (BTC) recently has been steadily recovering and approaching a key resistance level, despite recent drops. Currently, it is hovering around $59,000 after nearly hitting $60,000 once again.

Extreme Fear

Although there has been a 1.3% rise in the past 24 hours, BTC remains 2.6% down over the last week. Market sentiment has worsened, with the Cryptocurrency Fear & Greed Index showing extreme fear with a value of 25.

Moreover, while many large-cap altcoins are struggling, some are seeing gains. Helium (HNT) is up 5%, dYdX (DYDX) has risen by 4%, and AAVE has increased by 3.3%. Overall, the market is still uncertain, with about $111 million in liquidated positions. The broader cryptocurrency market shows mixed performance, with many major altcoins trading lower. Noteworthy examples include SHIB, DOGE, ADA, SOL, XRP, LINK, BNB, and ETH.

Other Markets

Recent developments in Shenzhen highlight a significant shift for Chinese stock market investors, who have lost a key tool for measuring market sentiment. The CSI 300 Index has dropped over 9% since its peak in May, largely due to unmet expectations for earnings recovery and inadequate policy support.

Meanwhile, Wall Street is keenly watching for signs that US consumers are maintaining their spending habits, but recent inspections suggest that consumer spending might not be as robust as hoped. Goldman Sachs has revised its outlook on the risk of a US recession, thanks to new retail sales and job data. As Fed Chair Powell prepares to speak at Jackson Hole, market watchers are eager for insights on the economy.

Additionally, NFL owners and executives are set to discuss the future of private equity investments in their teams, while the New York Stock Exchange is grappling with a decline in stock values. The rise of Payment-in-Kind (PIK) instruments signals potential trouble ahead for private markets. In Central Gaza, displaced Palestinians are dealing with severe challenges, even as Israel cautiously welcomes a new US proposal for a ceasefire.

Health concerns are also making headlines in France, with ongoing discussions about monkeypox vaccines, and Pakistan has started screening all travelers for the Mpox virus. Lastly, in Russia, Novatek is preparing to unveil its second LNG unit at a sanctioned Arctic facility, underscoring the dynamic nature of the local energy sector.

The Trump Organization is reportedly launching a new cryptocurrency project. Eric Trump, the executive Vice President of the organization, recently shared details about the initiative, which involves digital real estate and allows users to lend or borrow funds on the platform.

Revolutionizing Banking

Eric Trump expressed his excitement for DeFi on X, stating that he adamantly supports crypto just like his father and that his supporters should stay tuned for a big announcement soon. This has generated curiosity about the potential impact that the project may have on the financial sector.

Eric believes the new cryptocurrency venture could revolutionize banking by offering financial independence to those without access to traditional services. He criticized the current financial system, claiming it has some serious flaws and expressed a preference for algorithm-based loan approvals.

Changing Narratives

The Trump family has become increasingly engaged with crypto, with Donald Trump himself recently accepting donations in various digital currencies for his presidential campaign. This marks a significant shift compared to his previous criticism of cryptocurrencies in 2019.

As the Trump Organization prepares to reveal more about this project, it is clear that their stance on digital currencies has evolved. Eric Trump sees cryptocurrency as a way to promote financial freedom and challenge traditional banking norms.

With the 2024 presidential race approaching, the new cryptocurrency initiative could attract significant  attention via both supporters and critics, potentially influencing the political and financial landscape of the United States.

Binance Labs has led a $43 million investment in Sahara AI, a promising decentralized AI startup, showcasing the merging of AI and blockchain technologies. This Series A funding round emphasizes the confidence Binance has in the potential of AI to drive innovation well into the future.

Bullish Sentiment

Since its launch in April 2023, Sahara AI has quickly made an impact by partnering with major companies like Microsoft, Amazon, and Snap. The new funding, supported by Pantera Capital, Polychain Capital, Samsung NEXT, and Matrix Partners, will help Sahara AI expand globally, enhance its platform, and address key issues such as copyright and privacy through AI and blockchain integration.

A user on X (formerly Twitter) called the investment round one of the most bullish seen, reflecting strong investor and tech enthusiast support. Sahara AI invites those interested in AI and technology to join its collaborative economy.

The Future Of Decentralized AI

The leading role that Binance Labs has in this investment highlights its belief in the potential of decentralized AI. Beyond Sahara AI, Binance Labs also supports other blockchain projects like Solayer, Rango, Aarc, FluxLayer, and TonTon Games, aiming to foster industry advancements despite ongoing regulatory challenges, such as a recent fine imposed by the Brazilian SEC.

Overall, Binance Labs made a $43 million investment in Sahara AI which underscores its commitment to the future of decentralized AI, with the company poised to be a significant player in the tech world while navigating regulatory issues.

Crypto criminals are increasingly targeting centralized exchanges, stealing over $1.5 billion in the first half of the year, according to Chainalysis.

Advanced Social Engineering

This marks a shift after four years of focusing on decentralized platforms, attributed to the growing sophistication of attackers using advanced social engineering. Some, including those linked to North Korea, have even applied for IT jobs to gain access to centralized exchanges, which, despite their robust security, offer larger rewards.

A Chainalysis report highlights an 84% increase in the value of stolen crypto, reaching $1.58 billion, following a 50% decrease last year. While the number of hacking incidents has only slightly increased, the value per incident has surged by 79%, showing a shift to higher-value targets.

Legitimacy Triumphs

Ransomware remains a threat, with total ransoms paid this year reaching $459.8 million. Organized groups, including those linked to North Korea, are behind some of the largest heists, using sophisticated techniques to breach crypto businesses and launder stolen assets.

Despite the rise in crime, legitimate blockchain transactions are growing faster than illicit activities. Chainalysis reported a 19.6% decrease in aggregate illicit transactions, indicating a shift toward mainstream adoption of cryptocurrency.

Circle, the firm behind the USDC stablecoin, is set to introduce tap-and-go payments on iPhones now that Apple has opened access to secure payment technologies for third-party developers. Circle CEO Jeremy Allaire said that users will soon be able to tap to pay with USDC via their iPhones and that wallet developers should prepare accordingly.

Key Details

The new feature will use two notable Apple features, namely the NFC chip and Secure Element (SE), which were previously exclusive to Apple Pay and the Apple Wallet app. This will enable direct USDC payments at points of sale through iPhone wallet apps, which will prompt users to confirm transactions using FaceID.

Allaire emphasized that this development could create a powerful new channel for USDC payments by integrating iPhone technology with efficient blockchain networks. The implications extend beyond USDC, potentially impacting NFTs, other stablecoins like EURC, and various digital certificates. However, the feature will initially launch in select countries, including Australia, Brazil, Canada, Japan, New Zealand, the UK, and the US, with no mention of the EU.

Competition Heating Up

Meanwhile, MetaMask is advancing in payments with a self-custody debit card pilot in partnership with Mastercard and Baanx, enabling UK and EU users to spend directly from crypto wallets. Stripe has also resumed cryptocurrency payments, starting with USDC on Solana, Ethereum, and Polygon blockchains, after previously halting support for Bitcoin in 2018.

Additionally, Singapore-based Triple-A plans to add PYUSD, the stablecoin introduced by PayPal, to its supported tokens by the end of June next year, alongside Bitcoin, Ether, and stablecoins by Tether and Circle.

Cronos Labs, a leading Web3 accelerator, has announced a collaboration with Matter Labs to launch Cronos zkEVM on the Ethereum mainnet. This zkEVM is the first Layer-2 ZK chain beyond the ZKsync Era. According to the announcement, Matter Labs, which is known for ZKsync, along with Crypto.com, VVS Finance, Fulcrom Finance, Veno Finance, and 20 other digital asset entities, will spearhead the introduction of Cronos zkEVM on Ethereum (ETH) mainnet.

Harnessing Top Blockchain Technologies

Introduced in February 2023, Cronos zkEVM has already reached 3 million unique addresses and processed millions of transactions. The new addition to the Ethereum mainnet will join Cronos EVM and Cronos POS within the Cronos ecosystem, which boasts user assets exceeding $6 billion.

Kem Timsit of Cronos Labs stated that the Cronos team excels at harnessing top blockchain technologies to create innovative use cases while contributing to open-source projects. With the launch of Cronos zkEVM and the integration with ZKsync, Cronos aims to advance Ethereum in terms of infinite scalability and widespread adoption.

Furthermore, Cronos zkEVM will leverage CROFam, providing a long-term boost to the scaling solution. The official press release noted that the ecosystem encompasses around 100 million people, with top developers planning to expand to the new chain.

Several Benefits

The Cronos DeFi ecosystem offers various transaction fees and triple yield benefits. Users can earn returns by staking tokens like zkCRO, vETH, and vUSD, benefiting via DeFi applications on the blockchain, and receiving loyalty points for various activities within the Cronos ecosystem.

Cronos zkEVM will also feature the Pioneer Program, rewarding end-users with loyalty points for active participation and specific actions. The reward pool includes 5 million ZK tokens collected through the ZK Nation airdrop.

The release outlined that users can complete quests such as bridging funds, sending transactions, and using eligible dApps to earn points, which can later be redeemed in various participating cryptocurrencies. The alpha phase of the Cronos zkEVM mainnet will run until late September 2024, after which the transition to the beta phase will mark a significant milestone for the blockchain ecosystem.

The Australian Securities and Investments Commission (ASIC) has taken legal action against ASX, a local stock exchange, in Federal Court, accusing it of making misleading and deceptive claims about its now-canceled initiative to upgrade its outdated systems using blockchain technology.

On August 14th, ASIC stated that the Australian Securities Exchange (ASX) misrepresented the status of its project to replace the Clearing House Electronic Subregister System (CHESS) trading platform. ASX had claimed that the project was on track for go-live in April 2023 and was progressing well, but ASIC contends that these statements were misleading.

Lack Of Progress

According to the regulator, the project was not adhering to the planned schedule when the aforementioned statements were issued in early February 2022, and that ASX had no reasonable basis to suggest that it would be completed by that time.

ASIC Chair Joe Longo remarked that the project was indeed not progressing well as of February 10th, 2022, contrary to what ASX said. He added that the current situation reflects a collective failure by the ASX Board and senior executives at the time. ASIC has yet to decide on the specific penalties it will pursue.

Change Of Plans

In response, ASX referenced a statement by Managing Director and CEO Helen Lofthouse, who acknowledged the significance and serious nature of these proceedings. Lofthouse stated that they fully cooperated with the investigation and are now carefully reviewing and considering the allegations.

The exchange initially planned to replace CHESS with blockchain technology, a plan which began in early 2016, aiming to update the system used for managing share transactions and holdings since the mid-1990s. After nearly two years, it opted for a distributed ledger technology-based system.

However, by November 2022, following five years of development, several delays, and an expenditure of $170 million, ASX decided to pause the project after consulting firm Accenture identified significant challenges with the solution design and its ability to meet the necessary requirements. The exchange eventually abandoned its blockchain initiative to consider more traditional solutions.

BYDFi Exchange has doubled its user base to 30 million by offering no-KYC access and focusing on meme coins, successfully navigating crypto market challenges.

The meme coin sector, driven by tokens inspired by animals, celebrities, and political figures, has become a billion-dollar industry and significantly influenced the $2.2 trillion cryptocurrency market. Despite this growth, regulatory barriers can hinder access for many users.

Accessibility Is Key

BYDFi addresses the aforementioned challenges by providing a platform that is accessible globally, regardless of local regulations. After going through a rebrand in 2023, BYDFi operates under the motto BUIDL Your Dream Finance and is known for its lack of KYC requirements, which allows users to engage without mandatory identity verification. Users can trade up to 10 BTC daily by providing additional information.

With a user base of over half a million across more than 150 countries, including those with stringent crypto regulations like the U.S., Canada, and the Netherlands, BYDFi facilitates KYC compliance where needed. The platform offers features like crypto deposits and withdrawals, copy trading, P2P trading, and crypto derivatives trading, with a native point system rewarding BYD points for trading.

No KYC 

The no-KYC policy appeals to users seeking privacy and fewer regulatory barriers, aligning with the demand for less restrictive crypto platforms. BYDFi also features a section dedicated to meme tokens on its Spot trading page, including popular ones like DOGE and SHIB, allowing users to invest in this growing sector.

Security is paramount for BYDFi, which protects assets with offline cold wallets and two-factor authentication (2FA). The no-KYC approach helps maintain user anonymity and reduces data theft risks. The platform also has a fast onboarding system that simplifies account creation and crypto purchases which help distinguish it compared to other platforms with more complex registration processes.

Telegram Messenger raised $1M for Televerse in its Seed round with support by Summer Capital. Televerse is building a gaming infrastructure on the TON blockchain. It provides developer gamekits and a gamebox platform for mini-games, enabling Web2 game developers to easily bridge and publish their games to Telegram while integrating blockchain technology.

BasedVC garnered $2M in Seed funding with Crypto Banter leading the way. BasedVC is a decentralized venture capital tool that allows retail investors to invest alongside major venture funds like a16z crypto and Coinbase Ventures. 

375ai received $5M in Seed funding with help by 6th Man Ventures. 375ai is developing a decentralized edge data intelligence network that utilizes AI and blockchain for real-time data processing and analysis. 

Pentagon Games brought in a whopping $6M in Seed funding with support by The Spartan Group. Pentagon Games is a zkEVM chain game publisher focused on powering the XR Metaverse through deep learning and Web3 technologies.

TONX raised $4M supported by SNZ Holding. TONX is a platform focused on leveraging AI technology to enhance productivity and automation. It aims to provide solutions that optimize workflows, improve decision-making, and streamline operations across various industries. 

Quantlytica completed a Private Token Sale, raising $1.09M with backing by P2 Ventures. Quantilytica is an assets management platform helping individuals, DAOs, and other protocols automate capital flow.

Moonveil Entertainment raised $3.6M in Pre-Series A funding with help by The Spartan Group. Moonveil is comprised of a team of seasoned professionals with extensive expertise in the gaming industry.

Blockscout secured $3M in Seed funding with support by 1kx. Blockscout is an open-source blockchain explorer designed to provide insights, transaction confirmations, and analytics across multiple blockchain networks.

DeAgentAI raised $6M in Seed funding with Waterdrip Capital on board. DeagentAI is an AI-based layer dedicated to building a fully decentralized network platform.

Andrena (DAWN) achieved an impressive $18M in Extended Series A, led by Dragonfly Capital. Andrena is the developer of a Solana based decentralized physical infrastructure network (DePIN) protocol aimed at providing decentralized internet services.

Solayer Labs received an undisclosed amount of funding with support by Binance Labs. Solayer leverages economic security and premium execution to enable a higher degree of consensus and blockspace customization for application developers.

Curio Research raised $5.7M in Seed funding with support by Bain Capital Crypto. Curio is a gaming studio building foundational infrastructure for composable on chain crypto games, starting with its own social strategy title.