🚨ETH ETF APPROVED🚨

Week in Review:

ETH ETF:

• Out of seemingly nowhere, the ETH ETF was approved Thursday. There were many surprises, but none bigger than this. How did we get here? We heard earlier this week rumblings that the regulatory tides on crypto were starting to shift. Coinbase released a report saying an ETH ETF is more likely than experts are estimating (they gave it ~10% odds). Polymarket odds of approval went from 11% to 69% in a day. The ETHE discount shrunk to -7%. But, on Thursday, it became official.

• This was a huge moment for someone who has been in ETH since 2016. Actual legitimacy from Wall Street that ETH is not a security and all the benefits that go along with ETFs - access to more money, different investors, and removal of regulatory scrutiny. Banana Zone loading.

Regulation:

• We had a seismic shift in the US regulatory stance towards crypto. On Wed, President Biden withdrew his opposition to FIT21 - a bipartisan bill to regulate cryptocurrencies. This follows multiple positive regulatory pivots from the administration:

  • Congress passed its first crypto bill (SAB 121) with 21 House Democrats and 12 Senate Democrats breaking rank.

  • The firing of FDIC Chairman Martin Gruenberg (Leader of Operation Chokepoint 2.0)

  • Donald Trump's presidential campaign took a surprising turn as it started accepting cryptocurrency, pledging to form a "Crypto army." This move was a direct response to Elizabeth Warren's promise to build an "Anti-crypto army" earlier this year, highlighting the intense political dynamics at play.

• Donald Trump's poll numbers clearly forced Democrats to ease their stance on crypto. While they still hate crypto, at this point, they need to pander for votes and save their jobs. Still, the speed of reversal was shocking to many, including myself. "There are weeks when decades happen" certainly applies to this week.

• ZkSync, an Ethereum L2, is planning its token generation event this week, with an airdrop expected around June 13. The outstanding supply is 21B tokens. ZK technology is cited as the “endgame” for its privacy and scaling capabilities. Here is a tweet that caught fire from Matter Labs founder Alex G. & Vitalik Butern. Most airdrops have been disappointing, but with a combination of markets pumping and enthusiasm, this could be different. Airdrop criteria should come soon.

Now that the ETH ETF is official degens are immediately looking to higher beta assets for higher returns. Check out my thread on four high beta ETH sectors.

🤑 Notable Raises

• Farcaster - $150M Private. Sector: DeFi. Lead investor was Paradigm. Notable investors include a16z & Haun.

• KelpDao - $9M Private. Sector: DeFi. Lead investors were SCB Limited & Normura. Notable investors include Bankless.

• Aria - Undisclosed. Sector: Gaming. Lead investors include Folius Ventures, Merit Circle, & Spartan.

• Pencils Protocol - $2.1M Seed. Sector: Launchpad. Notable investors include OKX & Galxe.

• RunesTerminal - Undisclosed. Sector:BTC. Lead Investor was Cogitent Ventures. Notable investors include CMS & DuckDao.

👊 Quick Hits

• Taiko: Announces airdrop with eligibility checker.

• Eclipse: CEO Neel Somani has been replaced by Vijay Chetty.

• DOJ: Indicts brothers for $25M MEV-boost attack.

• Initia: Public testnet is live.

• Metamask: Rumors it is adding BTC to its wallet.

• LayerZero: Labels 800K wallets as Sybil in controversial airdrop process.

• MakerDao: Unveils two new stablecoins.

• Uniswap: Introduces ERC-7683 for cross-chain intents

• Arthur Hayes: latest essay “The Easy Button” details the road to $1M BTC

🫡 Chart of the Week

20% candle out of nowhere. Many who forgot about ETH were reminded who’s boss. Banana Zone loading…

See you next week,

Mid-Curve Team

The Mid-Curve newsletter is intended purely for educational and informational purposes and should not be construed as financial advice. We encourage all our readers to conduct their own research or seek advice from a certified financial advisor before making any investment decisions. Please note that members of the Mid-Curve team may hold positions in some of the investments discussed in our newsletter.