Welcome to this week’s edition of This Week in Crypto! In a groundbreaking move, Australia has launched its first direct Bitcoin holding ETF, set to change how traditional investors engage with cryptocurrencies down under. Meanwhile, the Bitcoin network experienced a surge in transaction value, hitting a staggering $25 billion in a single day, marking a record high for the year. Over in the payment tech sphere, PayPal has expanded the reach of its PYUSD stablecoin to the Solana blockchain, enhancing transaction speeds and introducing innovative features like confidential transfers. Dive into this week’s newsletter for a deeper look at these developments in the cryptocurrency world.
Australia Debuts First Directly-Held Bitcoin ETF
Australia is set to launch its first spot Bitcoin exchange-traded fund (ETF), which will start trading on the Cboe Australia exchange this Tuesday. This ETF, unlike previous exchange-traded products in Australia that only offered indirect exposure to Bitcoin, will directly hold the cryptocurrency, complying with the new crypto asset licensing category under the Australian Financial Services (AFS) licensing rules established in 2021. Monochrome Asset Management, the firm behind IBTC, highlighted that this allows for enhanced security as Bitcoin holdings are stored offline and adhere to Australian institutional custody standards.
Monochrome CEO Jeff Yew expressed optimism about the launch, noting the growing interest in Bitcoin products and the firm’s readiness to expand into other digital assets, including a direct-hold Ether ETF. This launch marks a significant step for Australian investors, offering them a regulated Bitcoin product that meets local investment safety standards and broadens their options in the evolving digital asset space.
Over $25 Billion in Bitcoin Moved in Single Day, Setting Annual Record
On May 28, Bitcoin holders moved approximately 367,000 BTC, which had a market value of over $25 billion, marking the highest dollar value of transactions recorded over the past year. This surge in transaction value on the blockchain contrasts with the quantity of Bitcoin transferred on June 13, 2022, when 519,000 BTC were moved, valued at nearly $14 billion at the time. The significant difference in transaction value is attributed to the current higher Bitcoin price, approximately $69,374 per BTC.
Despite this peak in transaction value, the number of individual Bitcoin transactions on May 28 remained within typical daily volumes, with Bitcoin transaction tracker YCharts noting a total of 596,790 transactions. This metric, while not exceeding norms, underscores the stability of transaction activity even as the total dollar amount transferred reached a new yearly high.
PayPal Expands PYUSD Stablecoin to Solana for Faster, Cheaper Transactions
PayPal has expanded its PayPal USD (PYUSD) stablecoin to the Solana blockchain, having previously launched only on Ethereum. This move leverages Solana’s ability to handle up to 65,000 transactions per second at costs as low as $0.0025, aimed at making PYUSD a practical option for everyday transactions. The expansion also introduces confidential transfers, allowing merchants to hide the amount of a transaction from consumers while maintaining necessary transparency for regulators. This feature ensures PayPal and Venmo users experience seamless usability across both networks.
Despite its enhanced transaction capabilities, Solana has experienced challenges such as network outages, with a significant disruption on February 9 that lasted nearly five hours. An upgrade named Firedancer is planned to address these reliability and scalability issues. Solana’s appeal for stablecoin transfers has grown, with the network recording $1.5 trillion in transfer volume over the past year, significantly surpassing Ethereum’s $885 billion. PayPal’s strategy to adopt a chain-agnostic approach indicates a broader vision to integrate PYUSD seamlessly into the digital economy, backed by secure and efficient blockchain technology.
