Crypto Scoop: Crypto Market Experiences $50 Billion Surge Amid Price Gains

Price gains continue this week as we see exciting partnerships and new crypto initiatives. In this edition of the Crypto Scoop, we review the following:

• Crypto market’s $50billion surge
• Cardano’s update delay explained
• Global crypto initiatives and regulations. 

Cryptocurrency Market Experiences A $50Billion Surge as Bitcoin Hits 18-Month High

The cryptocurrency market experienced a staggering $50 billion surge, driven by Bitcoin's meteoric rise to an 18-month high of $37,000. Simultaneously, Ethereum saw an unexpected 8% rally, breaking the $2,000 barrier and reaching a six-month high. This surge coincided with BlackRock's revelation of plans to create an ETF that holds Ethereum's ether (ETH), underscoring the asset manager's deepening commitment to the crypto space.

Further intensifying the momentum, Cathie Wood's Ark Invest announced a strategic collaboration with 21Shares to introduce innovative exchange-traded funds (ETFs). These ETFs aim to provide investors with diversified exposure to digital assets, including Bitcoin and Ethereum futures contracts, along with investments in blockchain-related companies.

The Ripple ecosystem added to the enthusiasm as its native token, XRP, surged over 10%, securing its position as the fourth-largest cryptocurrency by market capitalisation. In a noteworthy development, Dubai's financial regulator approved XRP for use within the Dubai International Financial Centre (DIFC), opening doors for licensed virtual asset firms to incorporate XRP into their services.

CoinShares reported a remarkable six-week inflow of $767 million into crypto funds, the highest since the 2021 bull market. Bitcoin funds garnered the most demand, while ether funds witnessed their largest inflows since August 2022. This surge in crypto fund inflows surpasses the total from the previous year by over $30 million, showcasing sustained investor confidence.

Representative Tom Emmer proposed an amendment to the House GOP spending bill that aims to block the SEC from using government funds to pursue crypto companies until Congress determines jurisdiction over crypto. The amendment, attached to the Financial Services and General Government Appropriations Act, signals a pro-crypto stance within Congress.

Cardano CEO Explains Cardano Upgrade Delays Are Tied To Measured Academic Approach

Cardano Foundation CEO Frederik Gregaard addressed criticisms over delays in the platform's feature rollout and network upgrades, emphasising that Cardano's measured and academic approach is intentional. Gregaard explained Cardano's delays were due to its reliance on academic reviewed papers, which have been years in the making. 

He expressed pride in the fact that other blockchain platforms already use the research and principles developed by Cardano, contributing to the resilience and adaptability of global blockchains. Gregaard acknowledged the importance of this trend, especially in the context of increasing artificial intelligence adoption. Despite being labelled as "boring," Gregaard highlighted Cardano's status as one of the oldest and most active projects, emphasising its stability and consistent performance over the last 2000 days. The CEO concluded that sometimes being "boring" is a positive attribute for the project.

Global Developments in Crypto Regulation and Innovation Unfold Across Continents

In a groundbreaking move, Kenyan lawmakers have tasked the Blockchain Association of Kenya (BAK) with developing the first draft of a regulatory framework for crypto. The National Assembly's Committee on Finance and National Planning directed the BAK to prepare a "virtual asset service provider's bill," recognising Kenya's digital prominence in Africa and the need for a clear regulatory framework to secure its position in the global crypto landscape.

Simultaneously, El Salvador is set to enhance its Bitcoin ATM network with a Lightning Network upgrade. Athena Bitcoin plans to integrate Lightning Network technology into 100 of its crypto ATMs, enabling faster transactions with minimised fees. This move aligns with El Salvador's continued efforts to embrace cryptocurrency, marking a significant step in the widespread adoption of innovative payment solutions.

Meanwhile, Hong Kong's Securities and Futures Commission (SFC) is contemplating the approval of spot crypto Exchange Traded Funds (ETFs) for retail investors. This comes after recent updates to financial regulations allowing retail investors to buy spot crypto ETFs. SFC Chief Executive Officer Julia Leung expressed a welcoming attitude toward innovative technology that enhances efficiency and customer experience, showcasing Hong Kong's progressive stance on crypto regulations.