The Chicago Mercantile Exchange (CME), a derivatives giant, has reported unprecedented engagement from large traders in Bitcoin and Ether futures during the second quarter of the year.

Renowned venture capital firm Sequoia Capital has downsized its cryptocurrency investment fund to $200 million, a sharp drop from the previously pledged $585 million. The decision was reportedly revealed to investors in March and came in response to the prolonged market downturn.

Cryptocurrency fund manager Grayscale has petitioned the U.S. Securities and Exchange Commission (SEC) to simultaneously approve all spot Bitcoin exchange-traded funds (ETFs) currently under review to avoid any single one from gaining an undue advantage.

Top stories in the Crypto Roundup today:

• Bitcoin and Ether Futures on CME Attract Record Number of Large Traders
• Sequoia Capital Trims Crypto Fund by 65% Amid Market Slump
• Grayscale Asks SEC to Approve All Bitcoin Spot ETFs at Same Time
• Crypto Market Movers MKR, COMP, XLM

Bitcoin and Ether Futures on CME Attract Record Number of Large Traders

The Chicago Mercantile Exchange (CME), a derivatives giant, has reported unprecedented engagement from large traders in Bitcoin and Ether futures during the second quarter of the year.

The CME has reportedly revealed that the average number of large open interest holders, defined as entities holding at least 25 Bitcoin futures contracts, hit a record 107 during the second quarter, while Ether saw its large open interest holders average 62 over Q2.

The exchange said that institutional interest in Bitcoin futures kept on growing throughout the quarter, with investors increasingly seeking regulated avenues and products to hedge against mounting market volatility and manage risk and exposure.

CME's futures fall under the regulatory purview of the Commodity Futures Trading Commission (CFTC). The standard Bitcoin futures contract is pegged to 5 BTC, while the micro contract stands at one-tenth of a single BTC. Similarly, Ether futures contracts have a 50 ETH size, while micro futures are equivalent to one-tenth of 1 ETH.

The derivatives giant also revealed that rising demand for hedging tools has driven trading volumes and open interest in BTC and ETH futures and options to new heights in the first half of the year.

Sequoia Capital Trims Crypto Fund by 65% Amid Market Slump

Renowned venture capital firm Sequoia Capital has downsized its cryptocurrency investment fund to $200 million, a sharp drop from the previously pledged $585 million. The decision was reportedly revealed to investors in March and came in response to the prolonged market downturn.

In addition to the contraction of the cryptocurrency fund, Sequoia has also halved its ecosystem fund, which primarily invests in other venture funds, down to $450 million from its original size of $900 million.

The firm’s strategy appears to be a pivot towards a more targeted approach, honing in on fledgling startups in the crypto sector rather than the larger, more established firms grappling with the current unfavorable market climate.

The funds, first announced in 2022, have faced significant changes since their inception. Sequoia’s inaugural crypto-specific fund had originally earmarked up to $600 million for investments in “liquid tokens.”

In a notable setback, Sequoia was forced last year to write off its investment in the beleaguered crypto exchange FTX to zero.

Grayscale Asks SEC to Approve All Bitcoin Spot ETFs at Same Time

Cryptocurrency fund manager Grayscale has petitioned the U.S. Securities and Exchange Commission (SEC) to simultaneously approve all spot Bitcoin exchange-traded funds (ETFs) currently under review to avoid any single one from gaining an undue advantage.

Grayscale's Chief Legal Officer, Craig Salm, has revealed in a blog post that the firm's legal team submitted a letter addressing eight proposed spot Bitcoin ETFs, including Grayscale's own proposal, arguing that it would be improper for the SEC to pick "winners and losers" and called for a fair and orderly decision.

Drawing a link between Bitcoin spot ETFs and futures ETFs, Grayscale's letter suggested the SEC could justify approval of the former based on previous endorsements of the latter, claiming these fund types are "inextricably linked."

Grayscale has also addressed the surveillance share agreements (SSAs) between Coinbase and several spot ETF providers, saying they’re “not a new idea,” and claiming they “would neither satisfy nor be necessary” under the SEC’s standards.

The fund manager reasoned that Coinbase isn't registered with the SEC as a securities exchange or broker-dealer, or with the Commodity Futures Trading Commission as a futures exchange.

To the firm, the SEC approving a spot ETF would mark a “positive but sudden and significant change” in the enforcement of its standards and could “improperly grant an unfairly discriminatory and prejudicial first-mover advantage to these proposals.”

It's worth noting the SEC has in the past rejected Grayscale’s application to convert its flagship fund, the Grayscale Bitcoin Trust (GBTC), to a spot Bitcoin ETF, prompting the fund manager to sue the regulator.

Crypto Market Movers MKR, COMP, XLM

Several tokens are leading the charge in the last 7-day period. Some of these are well-known cryptocurrencies with more liquid trading pairs, so we’ll be focusing on these over low-cap cryptos that may have higher percentage changes.

Maker (MKR) - MakerDAO is an open-source project on the Ethereum blockchain and a Decentralized Autonomous Organization created in 2014. The project is managed by people around the world who hold its governance token, MKR, who manage the Maker Protocol and the financial risks of DAI to ensure its stability, transparency, and efficiency.

Compound (COMP) - Compound Governance Token (COMP) is the native token of the Compound protocol, a decentralized lending and borrowing platform built on the Ethereum blockchain. The platform allows users to lend and borrow a variety of cryptocurrencies, including Ethereum, USDC, and DAI. COMP token holders have the power to govern the Compound protocol by proposing and voting on changes to the platform's parameters and features.

Stellar (XLM) - Stellar is an open-source, decentralized blockchain network designed to facilitate the transfer of money and other assets between people and institutions across the world. It was created to enable fast and efficient cross-border transactions, with low fees and without the need for traditional financial intermediaries. The network's native cryptocurrency is called the lumen (XLM), which serves as a digital asset for denominating network requirements.

State of the Crypto by Top Tier Exchange Volume

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