The supply of both Bitcoin (BTC) and Ethereum (ETH) on cryptocurrency exchanges contracted in June, as investors gravitated towards self-custody solutions as regulations ramped up.

The UK’s House of Lords is moving forward with a bill meant to broaden the government's reach to tackle the use of cryptocurrencies in illicit activities, adding to the increasing regulatory scrutiny the crypto space is facing globally.

The cryptocurrency market’s rise, set off partly due to the euphoria set off by BlackRock's unexpected filing for a spot bitcoin exchange-traded fund (ETF), has led to a surge in investments into the futures-based Bitcoin ETF BITO, which now has over $1 billion in assets under management.

Top stories in the Crypto Roundup today:

• Bitcoin and Ethereum Supply on Exchanges Dropped in June
• UK House of Lords Advances Bill to Crack Down on Crypto Crime, Empower Crypto Seizure
• ProShares Bitcoin Strategy ETF Hits $1 Billion AUM
• Visualizing MicroStrategy’s BTC Holdings And Average Purchasing Price

Bitcoin and Ethereum Supply on Exchanges Dropped in June

The supply of both Bitcoin (BTC) and Ethereum (ETH) on cryptocurrency exchanges contracted in June, as investors gravitated towards self-custody solutions as regulations ramped up.

According to a report from Goldman Sachs citing on-chain data, the supply of the largest cryptocurrency by market capitalization, Bitcoin, tumbled on exchanges by 4%, approaching levels recorded in December 2022. This was the lowest level witnessed since November 2020, immediately prior to the 2021 bull market.

Goldman Sachs’ report also noted that Ether’s supply on exchanges dropped by 5.8%, reaching a level that hasn’t been seen since May 2018. This propensity towards self custody is propelled by a convergence of factors, the banking giant stated. These include spot exchanges facing regulatory headwinds, and cyber hacks and theft remaining a concern.

For Ether specifically, Ether staked Ether withdrawals have “resulted in investors’ preference to stake ether, instead of passively holding on exchanges.”

According to Goldman’s report, June witnessed an unprecedented volume of Bitcoin inventory sales by miners, who seized the opportunity provided by the cryptocurrency’s positive price performance. The total monthly influx of Bitcoin from miners to exchanges almost doubled from the previous month, reaching $99 million

In the wake of a normalization of transaction fees in June, following the network congestion observed in May, there was a resurgence in monthly address activity for both Bitcoin and Ether, which grew by 15.5% and 37.5% respectively, Goldman's report noted.

UK House of Lords Advances Bill to Crack Down on Crypto Crime, Empower Crypto Seizure

The UK’s House of Lords is moving forward with a bill meant to broaden the government's reach to tackle the use of cryptocurrencies in illicit activities, adding to the increasing regulatory scrutiny the crypto space is facing globally.

In a recent meeting, the House of Lords carried out a third reading of the Economic Crime and Corporate Transparency Bill, an initiative introduced in September 2022 to enhance law enforcement's jurisdiction over crypto-related financial misconduct.

During this most recent reading, the Lords did not propose any major changes concerning crypto regulation, framing suggestions as "minor" amendments. An iteration of the bill from June 27 encompassed clauses to modify existing legislation, allowing for more elasticity in the seizure and civil recovery of crypto assets.

The bill has delineated governmental control over digital assets “destined for use in terrorism” or similar purposes. Before the bill is passed into law, modifications will be taken into consideration by UK legislators.

On June 19, the House of Lords also performed a third reading of the Financial Services and Markets Bill. Signed into law on June 29, this bill aimed to further the adoption of crypto assets within the country.

ProShares Bitcoin Strategy ETF Hits $1 Billion AUM

The cryptocurrency market’s rise, set off partly due to the euphoria set off by BlackRock's unexpected filing for a spot bitcoin exchange-traded fund (ETF), has led to a surge in investments into the futures-based Bitcoin ETF BITO, which now has over $1 billion in assets under management.

The ProShares Bitcoin Strategy ETF, which uses futures contracts to provide exposure to the cryptocurrency, has seen inflows of $14.9 million on June 29, and $11.9 million on July 3 to the point its assets under management are now at $1.04 billion.

Notably, the fund's assets under management, on June 15 — the very day when BlackRock lodged its ETF application — were a comparatively modest $822 million. The ETF, which was introduced in late 2021, was one of the pioneers in the crypto ETF sector.

Visualizing MicroStrategy’s BTC Holdings And Average Purchasing Price

MicroStrategy (NASDAQ: MSTR) recently announced a significant acquisition of 12,333 bitcoins (BTC), at an average price of $28,136, amounting to a sizable investment of $347 million.

The firm is one of the largest holders of Bitcoin, and has now grown its cryptocurrency portfolio to an astounding 152,333 BTC, a cache valued at over $4.52 billion. It's notable that the firm's average entry price per bitcoin stands at $29,668.

State of the Crypto by Top Tier Exchange Volume

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