Bitcoin experienced a notable drop this morning, momentarily falling below $104,000. This downturn coincides with a pervasive sense of “extreme fear” gripping the markets, primarily driven by ongoing concerns regarding U.S. regional banks and escalating trade tensions with China.
In the latest developments within the cryptocurrency space, Ripple is said to be spearheading an initiative to raise $1 billion aimed at establishing a new digital asset treasury focused on XRP. As reported by Bloomberg, the fundraising endeavor will likely take shape through a special purpose acquisition company (SPAC), with Ripple planning to leverage a significant portion of its own XRP holdings in the process. Although specific details about the transaction are still under discussion and might change, if successful, this new entity could emerge as the largest dedicated XRP digital asset treasury to date. This move comes amid waning enthusiasm for digital asset treasury (DAT) firms, some of which are currently trading at valuations below their net crypto asset worth. Notably, XRP, which ranks as the fifth-largest cryptocurrency globally, has seen its value dip by 5.8% over the past 24 hours, now trading at $2.27.
In another significant development, MegaETH has undertaken a buyback of 4.75% of its equity and token warrants from pre-seed investors as it gears up for its mainnet and token launch later this year. Although the specifics of the buyback deal were not disclosed, co-founder Shuyao Kong emphasized that the transaction was approved by major stakeholders, including investment firms Dragonfly and Echo. The buyback, completed at a valuation exceeding $20 million, reflects MegaETH’s commitment to aligned ownership and governance, especially as it prepares for an upcoming public token sale on Cobie’s Sonar platform.
Market trends show that Bitcoin ETFs experienced their largest one-day outflows since August, with a total of $536 million withdrawn on Thursday. Leading this outflow were Ark Invest’s ARKB and Fidelity’s FBTC. This trend indicates rising risk aversion among investors, exacerbated by U.S.-China trade tensions and a broader deleveraging in the crypto market, according to Nick Ruck, Director at LVRG Research. Ruck warned that these ETF outflows could lead to increased market fragility and suggested that cryptocurrency prices may face additional downward pressure. Meanwhile, spot Ethereum ETFs also saw a shift, recording $56.9 million in net outflows following two days of gains.
In the realm of private equity, Arthur Hayes’ family office, Maelstrom, is aiming to raise over $250 million for a new fund focused on mid-sized crypto firms. Managing Partner Akshat Vaidya indicated that the fund will invest between $40 million and $75 million annually, particularly targeting blockchain service providers involved in trading infrastructure and analytics. This fundraising effort comes against a backdrop of increased merger and acquisition activity within the crypto sector, with notable firms like Ripple, Coinbase, and Stripe pursuing significant deals.
Additionally, FIFA faces scrutiny as the Swiss gambling regulator GESPA has filed a criminal complaint against the organization, alleging that its World Cup NFT platform is operating illegal gambling services without the necessary licenses. A recent investigation concluded that FIFA Collect’s competitions involve monetary stakes, cash prizes, and chance-based outcomes that qualify as lotteries or sports betting. Initially built on Algorand and later transitioning to Polygon, FIFA’s NFT collections are now set to move to their proprietary Avalanche-based “FIFA Blockchain.”
In anticipation of next week, key events are lined up including the release of UK and U.S. CPI inflation data, and speeches from ECB President Christine Lagarde. Several crypto projects are also scheduled for token unlocks, and notable conferences such as Zebu Live in London and the Blockchain Africa Conference will commence.
