CRYPTO WEEKLY REPORT 18-24/11/2024: BITCOIN NEARS $100K, MAJOR FUNDING ROUNDS

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Bitcoin approaches $100K as ETF inflows hit a record. Key funding rounds and regulatory moves signal continued growth and evolution in the crypto market this week.

The cryptocurrency industry is seeing rapid growth, with record inflows into Bitcoin spot ETFs, major funding rounds for new projects, and significant regulatory shifts. Institutions like MicroStrategy continue to increase their Bitcoin holdings, while governments, such as the UK, are preparing to introduce comprehensive crypto regulations. These developments signal an exciting new phase for the market, with both private and public sectors playing a key role in its evolution.

1. BITCOIN ETFS SAW $3.35 BILLION IN INFLOWS LAST WEEK, PUSHING BTC TO AN ATH

According to data from Farside Investors, US Bitcoin spot ETF funds ended the third week of November with a total inflow of $3.353 billion, officially surpassing the previous record set during the peak period of March 2024, marking the highest weekly inflow ever.

All five trading sessions in the past week saw positive inflows, with three of those days experiencing inflows of $750 million or more.

The leader remains the buying power from BlackRock’s IBIT fund, with a total value of $2.05 billion last week, followed by Fidelity’s FBTC with $772 million and ARK’s ARKB with $301 million.

The amount of Bitcoin held by Bitcoin ETFs has exceeded $100 billion this week, with a net purchase value of over 447,000 BTC just 11 months after their launch.

Thanks to the buying power of Bitcoin ETFs, combined with the fact that these ETFs are now supported for options trading, and a record $4.6 billion purchase by MicroStrategy, the price of BTC surged last week from $89,000 to an all-time high of $99,400, just a small distance away from the historic $100,000 mark.

2. SOME PROJECTS HAVE JUST BEEN FUNDED THIS WEEK

2.1. Exponent Finance Raises $2.1M – Fixed Yields for Solana DeFi

The world of Solana DeFi just reached a new milestone. Exponent Finance has secured $2.1 million in funding to establish Solana’s first fixed-rate DeFi market, setting the stage for predictable and stable yields within the ecosystem.  

2.2. Aptos Labs Leads $10M Ecosystem Round to Fuel KGeN’s Vision for Gamers

KGeN (Kratos Gamer Network), the decentralized gamer network focused on redefining data ownership, has announced a successful $10 million ecosystem round, led by Aptos Labs, with participation from Polygon and Game7. This new funding brings KGeN’s total capital raised to $30 million. The investment will support KGeN’s expansion and its innovative approach to data sovereignty in the $250 billion gaming industry.

2.3. 20VC-backed Crypto Wallet Deblock Raises £13.3M Amid Crypto’s New Boom

Deblock, a crypto wallet developed by former Revolut and Ledger executives, has secured an additional £13.3 million in seed funding, according to Companies House filings this month. An earlier filing in October revealed that Headline, Hoxton, 20VC, and Chalfen were the lead investors in the round. Sifted previously reported that the startup had quietly raised €12 million last year.

2.4. Monkey Tilt Raises $30 Million to Make Online Gambling More Social

Monkey Tilt, an online gambling platform that blends entertainment with betting, has raised $30 million in a Series A funding round led by Pantera Capital. As online gambling shifts from a solitary activity to a more social experience, investors are backing platforms like Monkey Tilt, which aim to enhance the social aspects of betting alongside traditional gameplay.

3. STARKNET AIMS TO BECOME THE CHEAPEST LAYER-2

Starknet plans to quadruple its transaction processing speed (TPS) and reduce transaction fees by five times. CEO Eli Ben Sasson shared at DevCon 2024 in Bangkok last week that these improvements will be achieved by optimizing the “compilation and execution processes” on Cairo, Starknet’s smart contract programming language. The network aims to surpass 1,000 TPS, directly competing with Solana, which processes between 800 to 1,050 TPS. Sasson confirmed that this goal is nearly certain to be achieved.

4. COINBASE TO DELIST WBTC

The largest cryptocurrency exchange in the US, Coinbase, will stop supporting Wrapped Bitcoin (WBTC) trading from December 19, 2024. Coinbase has determined that WBTC no longer meets its listing standards. Currently, Coinbase has halted market trading for WBTC, only allowing limit orders. Users will still be able to access and withdraw WBTC at any time after trading is suspended.

5. MAGIC EDEN ANNOUNCES TOKENOMICS AND 12.5% ME AIRDROP FOR USERS

In August 2024, NFT marketplace Magic Eden announced its ME ecosystem token. Now, the project has revealed detailed information about the token distribution and airdrop.

With a total supply of 1 billion tokens, ME will be distributed over 4 years, with more than half allocated to the community.

• TGE: Airdrop of 12.5% of the total supply
• Community and Ecosystem: 37.7%
• Contributors: 26.2%
• Strategic Investors: 23.6%

6. TRUMP PLANS TO APPOINT CRYPTO POLICY ADVISOR

President-elect Donald Trump is reportedly looking to create a new position in the White House focused on cryptocurrency policy. This would be the first time a U.S. president appoints a dedicated crypto advisor, marking a significant step for the industry. The role may act as a liaison between the White House, Congress, and regulatory bodies like the SEC and CFTC.

7. UK TO INTRODUCE COMPREHENSIVE CRYPTO LEGAL FRAMEWORK BY 2025

On November 21, the UK government officially announced plans to implement a comprehensive legal framework for the cryptocurrency sector by early 2025. The announcement was made at the City & Financial Global’s Tokenisation Summit in London. This move is seen as an effort by the Labour Party to accelerate the regulation of the crypto market, addressing delays compared to other global jurisdictions. 

According to Tulip Siddiq, the UK Treasury’s Economic Secretary, the new framework will include detailed regulations on cryptocurrencies, stablecoins, and staking activities. She emphasized that creating a cohesive legal structure will be more effective and consistent than issuing separate regulations.

8. MICROSTRATEGY SUCCESSFULLY RAISES $3 BILLION TO CONTINUE BITCOIN PURCHASES

On November 22, 2024, software company MicroStrategy announced the completion of its latest fundraising round, issuing $3 billion in debt bonds due in 2029.

The company had initially aimed to raise $1.75 billion through the bond sale, but the offering included an option for investors to purchase additional bonds, bringing the total raised to $3 billion. This means all of MicroStrategy’s latest investors opted to buy more bonds.

Although the bonds are non-interest-bearing, they are convertible into MicroStrategy shares at a price up to 55% higher than the current market price. MicroStrategy stated that the funds raised will be used to purchase more Bitcoin and cover operational expenses.

CONCLUSION

The landscape of the crypto market is evolving rapidly, with both private projects and governmental actions influencing its trajectory. Institutional investments, regulatory developments, and the introduction of new financial products are setting the stage for the next phase of growth in the crypto space. As the market matures, these movements will play a key role in shaping the future of digital assets and their integration into the broader financial ecosystem.