Business intelligence company MicroStrategy Inc. has announced that it has acquired an additional 12,333 Bitcoins, an investment valued at around $347 million at the time of the transaction. This transaction underscores MicroStrategy's ongoing commitment to Bitcoin, a strategy largely driven by the firm's CEO, Michael Saylor, who is a well-known advocate for the flagship cryptocurrency

Coinbase has taken a legal stand against the U.S. Securities and Exchange Commission (SEC), asserting that the digital assets listed on its platform are not within the regulator's jurisdiction. 

Canada-based digital asset manager 3iQ has announced the addition of staking options to its two Ethereum exchange-traded funds (ETFs) – The Ether Fund and The 3iQ Ether ETF. This marks the first instance of ETFs offering a staking service, with the new feature expected to be available to clients in August.

Top stories in the Crypto Roundup today:

• MicroStrategy Buys $347m Worth of Bitcoin
• Coinbase Claims SEC Has No Jurisdiction Over Cryptos on Its Platform
• 3iQ Adds Staking Options to Its Two Ethereum ETFs
• Digital Asset AUM & Volumes Rebound Amid Flurry of ETF Applications

MicroStrategy Buys $347m Worth of Bitcoin

Business intelligence company MicroStrategy Inc. has announced that it has acquired an additional 12,333 Bitcoins, an investment valued at around $347 million at the time of the transaction. This transaction underscores MicroStrategy's ongoing commitment to Bitcoin, a strategy largely driven by the firm's CEO, Michael Saylor, who is a well-known advocate for the flagship cryptocurrency.

This purchase, conducted between April 27 and June 27, bolsters the firm's cryptocurrency portfolio to a total of 152,333 Bitcoins, a stash currently worth around $4.52 billion. The average purchase price of these Bitcoins is approximately $29,668 each.

To finance this significant acquisition, MicroStrategy turned to the issuance of new shares. According to the company, “On May 1, 2023, MicroStrategy entered into a Sales Agreement with Cowen and Company, LLC and Canaccord Genuity LLC, as sales agents, pursuant to which MicroStrategy may issue and sell shares of its class A common stock, par value $0.001 per share (“Shares”), having an aggregate offering price of up to $625.0 million from time to time through the Agents.”

Despite the volatility inherent in the cryptocurrency markets, Saylor and MicroStrategy continue to demonstrate their conviction in Bitcoin as a valuable strategic asset. Interestingly, the firm's strategic approach to accumulate Bitcoin irrespective of the market cycles looks to be paying off.

Coinbase Claims SEC Has No Jurisdiction Over Cryptos On Its Platform

Coinbase has taken a legal stand against the U.S. Securities and Exchange Commission (SEC), asserting that the digital assets listed on its platform are not within the regulator's jurisdiction. This statement came in response to the lawsuit filed by the SEC against Coinbase earlier in June, accusing the exchange of offering a dozen unregistered securities through its wallet and trading platforms.

In its initial legal response, Coinbase insisted that the cryptocurrencies listed on its platform do not qualify as investment contracts; hence, they should not be categorized as securities. Coinbase's defense emphasized that the cryptocurrencies traded on its secondary market platform are not part of any contract-based arrangements with a promoter selling an asset. 

The company further asserted that the token issuers owe no obligations to the investors, which, according to the filing, suggests that the transactions do not classify as securities transactions.

Coinbase's reply to the SEC’s complaint went further to challenge the SEC's interpretation of its own regulatory authority, pointing out a shift in SEC Chair Gary Gensler's stance on the regulator's power over cryptocurrencies since he assumed office in April 2021. Coinbase emphasized its own proactive compliance efforts, highlighting how it has willingly submitted to multiple overlapping regulatory bodies' authority and adhered to both public and limited formal guidance from the SEC, senior SEC staff, and the courts.

3iQ Adds Staking Options to Its Two Ethereum ETFs

Canada-based digital asset manager 3iQ has announced the addition of staking options to its two Ethereum exchange-traded funds (ETFs) – The Ether Fund and The 3iQ Ether ETF. This marks the first instance of ETFs offering a staking service, with the new feature expected to be available to clients in August.

Staking is a process that involves participants in the cryptocurrency ecosystem "locking up" their crypto assets to support the operation of a blockchain network. In the case of Proof-of-Stake (PoS) assets like Ethereum (ETH), holders can pledge their assets to the network, receiving rewards in return.

3iQ clarified that through staking the funds will earn rewards in the form of ETH. These rewards will contribute to the net asset value of the funds by producing yield, thus enhancing the funds' exposure to ETH. To facilitate ETH staking in its products, 3iQ will be utilizing Coinbase's institutional staking infrastructure. 

Exchange-Traded Funds (ETFs) are investment tools that track the value of an underlying asset, such as gold, foreign currencies, or cryptocurrencies. 3iQ, based in Toronto, provides its clients with ETFs that grant investors exposure to ETH, the world's second-largest digital asset by market capitalization. The two Ethereum-centric ETFs by 3iQ are listed on the Toronto Stock Exchange and are currently available to Canadian investors.

Digital Asset AUM & Volumes Rebound Amid Flurry of ETF Applications

June was marked by several significant developments across the digital asset investment product sector. Most notably, BlackRock filed its first spot Bitcoin ETF application, sparking a wave of optimism in the markets, with Bitcoin reaching the $31,400 level for the first time since June 2022. Historically, BlackRock has submitted 578 ETF applications, with only 1 rejection. 

Additionally, the launch of EDX Market by Fidelity, Charles Schwab, and Citadel further enhanced market optimism. Total AUM for digital asset products saw a 9.05% increase, reaching $33.4bn. Average daily aggregate volumes of digital asset investment products also rebounded, increasing by 6.77%.

In June, the market for Bitcoin-based products experienced a notable surge, with assets under management (AUM) increasing by 12.4% to $24.4 billion. This growth resulted in Bitcoin-based products capturing a market share of 73.1%, a 3.0% increase from 70.1% in May. On the other hand, Ethereum-based products saw a comparatively smaller increase of 2.68%, leading to a market share of 23.1% (down from 24.5% in May).

State of the Crypto by Top Tier Exchange Volume

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