Reviewing The Developments Exciting The Ethereum Community
The Daily Crypto Update for Institutional Investors
Ethereum’s native currency ETH remains ~46% below its 2021 record high despite developments seemingly conducive to the asset’s thesis - We review the developments exciting the asset’s community and supporters
ETH remains the dominant network in terms of on-chain market conditions: In March, we pointed out that Ethereum ‘dominates DeFi liquidity and stablecoin distribution compared to other blockchains.’ For instance, according to DeFiLlama, of the USD 254.60B stablecoin market cap Ethereum accounts for just under half of this market. Tron, which comes in second based on the metric, hosts a third of the total stablecoin market. According to DeFiLlama’s estimate of the total capital deployed in DeFi, USD 116.42B, Ethereum accounts for ~56%. This translates to more efficient market conditions on Ethereum. For example, borrowers can tap into significantly deeper liquidity on Ethereum without affecting lending rates.
The full value proposition of ETH is becoming more accessible via public markets: Yesterday, the first SOL ETF offering exposure to the asset and staking, REX-OSPREY SOL + Staking ETF (CBOEBZX: SSK), debuted in the US. The approval of the product opens the door for ETFs that offer exposure to ETH staking. For proof-of-stake assets like ETH and SOL, the full value proposition is holding the asset and earning a yield via staking. Additionally, emergent public company ‘Ethereum treasury’ strategies, like SharpLink Gaming (NASDAQ: SBET), may offer a new avenue for investors to participate in the crypto economy. Commenting on the SOL staking ETF, FRNT’s head of Data and Analytics told Bloomberg: ‘It’s yet another example of how the Trump Administration is opening the door for crypto to become an integrated part of the US economy via public markets, rather than a pariah asset class that was difficult for traditional investors to access.’
US Treasury Secretary Scott Bessent thinks the stablecoin market could grow to USD 3.7T by the end of the decade: The Trump Administration has taken unprecedented measures to support the crypto industry. These include relatively unexpected measures like lifting sanctions against Ethereum-based mixing service Tornado Cash. These measures are partly driven by the strategic incentives involved with stablecoin proliferation. In this context, blockchains like Ethereum are conducive to the US’ emergent support for stablecoins. This angle also provides additional context for the approval of staking ETFs; via these ETFs, investors can become involved in processing transactions of blockchain-based dollars.
The Ethereum ecosystem benefits from US regulatory reprieve: Under the Biden Administration, the SEC had taken a highly antagonistic approach to digital assets. Former SEC Chairman Gary Gensler went so far as to question the fundamental usefulness of BTC and other digital assets. Under Trump, the entire Ethereum ecosystem is enjoying regulatory reprieve.
CRYPTO HEADLINES
JD.com and Ant Group lobbied the People's Bank of China to authorize offshore yuan-based stablecoins in Hong Kong, according to Reuters. The effort is reportedly motivated by countering the global dominance of US dollar denominated stablecoins, sources said. Both firms already plan Hong Kong dollar stablecoins, with the move described as supporting yuan internationalization. - link - @Reuters
BlackRock’s iShares Bitcoin Trust ETF (NASDAQ: IBIT) generated an estimated USD 187.2M in annual fees, surpassing its iShares Core S&P 500 ETF (NYSEARCA: IVV). The spot BTC ETF has seen inflows in all but one of the last 18 months, amassing USD ~75B in assets since its launch in January 2024. - link - @Bloomberg
Ripple filed an application for a national banking license with the US OCC, according to sources cited by the WSJ. The registration would place its stablecoin RLUSD under OCC regulation, and prompt the firm to consider expanding crypto services. - link - @WSJ
The IMF rejected Pakistan’s repeated proposals to subsidize electricity for BTC mining and other energy-intensive industries due to concerns about market distortions. Pakistan planned to allocate 2,000 MW at 23-24 rupees per kWh from its surplus, but prior similar incentives were said to have failed. - link - @CoinDesk
Swiss AMINA Bank became the first global bank to offer custody and trading services for Ripple's RLUSD stablecoin. The bank indicated it would limit custody and trading for RLUSD for institutional clients and professional investors. - link - @CoinDesk
The SEC halted Grayscale's conversion of its Digital Large Cap Fund (GDLC) to an ETF for further review after initial staff approval. The fund holds USD 755M in BTC, ETH, XRP, SOL, and ADA. The order is stayed pending commission action. - link - @CoinDesk
BTC miner Hut 8 (NASDAQ | TSX: HUT) announced its joint venture Far North Power secured five-year capacity contracts for four Ontario gas plants totaling 310 MW. The contracts, co-owned with Macquarie Equipment Finance Ltd., were awarded by Ontario’s Independent Electricity System Operator and begin May 1, 2026. - link - @HUT
Blockchain-based gaming developer Distinct Possibility Studios raised USD 30.5M in funding led by Bitkraft and Brevan Howard. The proceeds will go towards building Reaper Actual, an open-world shooter with in-game transactions powered by Tezos’s Etherlink layer-2. A test version with onchain assets is expected in the coming weeks. - link - @Cointelegraph
TOP ARTICLES
OPEN-SOURCE RESEARCH / LONG-READ OF THE DAY
Trump’s $620 Million Of Quick Crypto Riches Reshapes His Fortune, Bloomberg, July 2, 2025
Bloomberg discusses the Trump families growing involvement in crypto.
CRYPTO MULTIMEDIA
SEC Chairman Paul Atkins On Regulating Booming Crypto Industry, Bloomberg, July 2, 2025
SEC Chairman Paul Atkins discusses crypto regulation.
CHART OF THE DAY
The value of crypto deployed in Ethereum-based DeFi is currently USD ~65B, according to DeFiLlama. This figure is ~40% below levels seen in 2021.
About FRNT Financial
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