Daily Edition · Page 6

THE DAILY INDEX

Technology, AI, software, security, crypto and business

MARKETS & BUSINESS

TLDR Crypto

SPOT ETH ETFS ADD $729M IN SECOND-BIGGEST DAILY INFLOW

U.S. spot Ethereum ETFs pulled in $729.1M on Wednesday, the second-largest daily inflow since launch, led by BlackRock's ETHA with $500.9M. The increase follows Monday's $1.02B record and Tuesday's $523.9M, pushing ETH to $4,743, just shy of its all-time high. With Standard Chartered now targeting $7,500 by year-end, ETF demand is helping cement Ethereum's role as a cornerstone of institutional crypto exposure.

INTRODUCING THE GEMINI WALLET

Gemini launched a self-custody wallet featuring a hybrid design that functions as both an embedded wallet for dApps and a portable wallet for users, powered by passkey authentication to eliminate seed phrases and app downloads. Gemini Wallet includes gas fee sponsorship from launch partners Arbitrum, Polygon, Optimism, and Base, free ENS subdomains for all users, and integration with the Gemini exchange for seamless trading once fully deployed later this year. Key partnerships with Blockaid for security, WalletConnect for connectivity, Bungee for cross-chain swaps, and Morpho for DeFi yield opportunities demonstrate Gemini's comprehensive approach to wallet infrastructure. The launch represents Gemini's strategic push into self-custody solutions, positioning passkey-based smart wallets as the key to onboarding mainstream users by removing traditional crypto wallet friction points.

COINBASE CUTS USDC ON-RAMP FEES ON BASE AS CIRCLE BUILDS STABLECOIN L1

Coinbase and Mercuryo have partnered to slash USDC on-ramping fees by ~50% for MetaMask users on Base, as Circle plans a USDC-native Layer 1. The move comes amid growing institutional interest in stablecoins post-GENIUS Act and Circle's report of 90% YoY USDC supply growth to $61.3B. With Base gaining traction and Circle leaning into vertical integration, USDC is positioning as the central rail for stablecoin-native infrastructure.

AUTONOMOUS AGENTS WILL BE ETHEREUM'S POWER USERS

AI agents are becoming increasingly prevalent across our society. However, they remain limited in functionality and without the ability to pay for API calls, storage, or services. x402, an open payments protocol from Coinbase Developer Platform, aims to create a way for agents to pay for services across the internet via onchain microtransactions. It uses the HTTP 402 status code “payment required” to allow any service on the internet to gate access behind a crypto paywall, which can be seamlessly paid by agents. Applications include agents that run autonomous businesses, pay for their own upkeep, and web browsers paying to read gated content. x402 and Ethereum will be the backbone for the first “proto-digital lifeforms.”

PANTERA BLOCKCHAIN LETTER: DAT VALUE CREATION

Pantera has deployed over $300 million across DAT companies that generate yield to grow net asset value per share, with its BitMine investment gaining 1,100% in one month while becoming the largest ETH treasury globally. There is a prediction market renaissance driven by Polymarket and Kalshi's success, regulatory clarity, and growing retail speculation demand, expecting growth in markets with high frequency, leverage, and outcome value. Crypto markets are entering "phase 2" of the bull cycle, where altcoins historically outperform bitcoin and account for 55-66% of total market growth, with regulatory tailwinds now extending beyond Bitcoin to benefit altcoins through initiatives like the GENIUS Act and CLARITY Act.

STABLECOINS, TOKENIZED DEPOSITS, AND CBDCS AREN'T COMPETING, THEY'RE CONVERGING

Stablecoins, tokenized deposits, and wholesale CBDCs serve distinct roles but are converging on a shared onchain financial infrastructure. Stablecoins (e.g., USDC) power global payouts and treasury ops for startups and SMBs, tokenized deposits from banks like JPMorgan offer regulated USD rails for corporates, and CBDCs provide 24/7 settlement with zero credit risk for institutions. With the GENIUS Act unlocking regulatory clarity, Global Systemically Import Banks (GSIBs) are embracing all three formats as complementary rails, making TradFi backward-compatible with DeFi. The result isn't a winner-take-all, it's a unified digital money stack.

BITCOIN EXTENDS SUMMER RALLY TO HIT RECORD HIGH

Bitcoin reached a new all-time high of $124,480 on Thursday, extending its year-to-date gains to 30% driven by two key factors: widespread corporate adoption of "bitcoin treasury" strategies and supportive Trump administration policies. The rally was fueled by 165 public companies now holding bitcoin and Trump's executive order allowing the $9 trillion US retirement market to invest in cryptocurrencies, with companies like Trump's family media business raising $2 billion specifically for bitcoin purchases. Analysts note these bitcoin treasury companies are creating "structural buying pressure" through debt and equity raises, though they warn of potential brutal drawdowns if market conditions deteriorate or capital access tightens.

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