Australian investors are getting access to a new type of Bitcoin investment vehicle with the launch of the country's first exchange-traded fund (ETF) that directly holds Bitcoin.

The founder of leading cryptocurrency exchange Binance, Changpeng Zhao, has reported to a federal prison in California to begin a four-month sentence after pleading guilty in November to violating the Bank Secrecy Act for failing to implement adequate safeguards against money laundering at Binance.

Coinbase, the largest cryptocurrency exchange in the United States, has announced a $25 million donation to the pro-crypto super Political Action Committee (PAC) Fairshake, mirroring contributions from other major crypto players including Ripple and venture capital firm Andreessen Horowitz.

Top stories in the Crypto Roundup today:

• Australia’s First Spot Bitcoin ETF Goes Live
• Binance Founder Changpeng Zhao Begins Four-Month Prison Sentence
• Coinbase Donates $25 Million to Pro-Crypto Super PAC Fairshake
• Tether Registers Historic Quarterly Profit As Market Capitalisation Continues to Rise

Australia’s First Spot Bitcoin ETF Goes Live

Australian investors are getting access to a new type of Bitcoin investment vehicle with the launch of the country's first exchange-traded fund (ETF) that directly holds Bitcoin.

The Monochrome Bitcoin ETF, trading under the ticker IBTC, started trading on the Cboe Australia exchange today, June 4, in a significant step for the Australian cryptocurrency market, as previous Bitcoin ETFs offered only indirect exposure to it.

The approval for IBTC stems from a new crypto asset licensing category established under the Australian Financial Services (AFS) licensing framework in 2021, which allows the fund to directly hold the underlying BTC. The funds are stored offline in a secure custody solution.

Unlike similar spot Bitcoin ETFs in the United States, IBTC allows for in-kind redemption, meaning investors can directly receive Bitcoin in exchange for their ETF shares.

Binance Founder Changpeng Zhao Begins Four-Month Prison Sentence

The founder of leading cryptocurrency exchange Binance, Changpeng Zhao, has reported to a federal prison in California to begin a four-month sentence after pleading guilty in November to violating the Bank Secrecy Act for failing to implement adequate safeguards against money laundering at Binance.

The four-month sentence was a compromise between federal prosecutors who sought a three-year term and Zhao's defense team who argued for probation but is harsher than the sentence given to other cryptocurrency executives, including BitMEX’s CEO Arthur Hayes, for the same crime.

Zhao, a Canadian citizen with a net worth estimated at $36.5 billion, is believed to be the wealthiest person ever incarcerated in the United States. Along with the prison sentence, he was fined $50 million and agreed to step down from his role as CEO of Binance, with the exchange itself pleading guilty to money laundering and sanctions violations and settling the charges with a $4.3 billion fine and the appointment of a compliance monitor.

The former CEO of Binance will serve his sentence at Lompoc II, a low-security federal prison in Santa Barbara County located on California's central coast, housing roughly 2,160 inmates and offering some the opportunity to work on a nearby farm.

Coinbase Donates $25 Million to Pro-Crypto Super PAC Fairshake

Coinbase, the largest cryptocurrency exchange in the United States, has announced a $25 million donation to the pro-crypto super Political Action Committee (PAC) Fairshake, mirroring contributions from other major crypto players including Ripple and venture capital firm Andreessen Horowitz.

The donation helped grow Fairshake’s coffers up to $160 million, making it one of the largest super PACs over this election cycle. The organization primarily allocates funding to advertising campaigns, and has already spent over $40 million backing pro-crypto candidates running in key House and Senate races.

Its goal is to help secure victories that will translate into friendly policies for firms and individuals dealing with cryptocurrencies in the United States. In a blog post, Coinbase CEO Brian Armstrong has said the “best way to get regulatory clarity in democratic countries is to elect pro-crypto candidates” and to “vote anti-crypto candidates out of office.”

Armstrong further urged the need to send a “strong message in November by electing candidates who represent our values.” His exchange has been a crypto advocate in Washington D.C., lobbying for inclusive regulatory treatment.

The exchange started a non-profit advocacy group called Stand with Crypto, which encourages its supporters to get directly involved in the legislative process. It has amassed nearly 1 million supporters over time, and has raised $87 million for its own political action committee.

Tether Registers Historic Quarterly Profit As Market Capitalisation Continues to Rise

In May, TetherUSD (USDT) saw its market capitalization rise 0.98% to $111 billion, a new all-time high for the leading stablecoin. Currently, USDT holds a dominant position, accounting for 69.3% of the stablecoin market while representing 77% of transactions on centralized exchanges among the top 10 stablecoins.

On May 2nd, USDT’s issuer Tether Holdings released its quarterly reserves report, unveiling a profit of $4.52 billion during Q1 2024. Notably, $1 billion of that figure was attributed to its holdings of US Treasury Bills, which grew by 17.3% to reach $74 billion. Its net profit surpassed the earnings of major financial institutions including Goldman Sachs and Morgan Stanley during the same period.

Dig deeper into the stablecoin sector through CCData’s latest Stablecoins & CBDCs report.

State of the Crypto by Top Tier Exchange Volume

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