1. Spot Bitcoin ETFs Surpass $12 Billion in Inflows, Drive BTC to New Peaks
After launching in early January, spot Bitcoin exchange-traded funds from BlackRock, Fidelity, ARK 21Shares and others have drawn over $12 billion in cumulative inflows. According to CoinDesk’s ETF tracker, BlackRock’s iShares Bitcoin Trust (IBIT) leads with $4.5 billion under management, while Fidelity’s Wise Origin Bitcoin Fund (FBTC) has amassed $3 billion. Strong daily purchases—totaling nearly $500 million in mid-June—have rekindled rally FOMO: Bitcoin broke above $113,000 this week for the first time since November 2021. Analysts attribute the rush to institutional portfolio rebalancing, growing retail ETF access, and expectations of renewed spot-BTC demand (via Bloomberg, reported by CoinDesk).
2. EU’s MiCA Stablecoin Rules Go Live July 30, Reshaping Issuer Landscape
The European Union’s landmark Markets in Crypto-Assets regulation (MiCA) takes effect July 30, introducing a comprehensive rulebook for “e-money tokens” (e.g., stablecoins pegged to fiat). Under MiCA, issuers must hold 1:1 reserves in high-quality assets, conduct annual audits, comply with strict liquidity buffers, and secure authorization from a designated EU regulator. Non-compliance carries fines up to €5 million or 5 percent of global turnover. Tether (USDT) and Circle (USDC) have both notified EU authorities of their intent to seek registration. Observers expect the new framework to bolster confidence in on-chain payments but warn smaller issuers could be squeezed out by compliance costs (via Reuters).
3. Multichain Bridge Exploited for $72 Million in Flash-Loan Hack
On June 18, attackers drained approximately $72 million from the Multichain cross-chain bridge by exploiting a flash-loan vulnerability. The hacker borrowed large volumes of USDC, manipulated internal price oracles, and then swapped the undervalued tokens for ETH and other assets. Multichain’s team halted all bridge deposits and withdrawals within three hours of detecting the breach, and has begun a forensic audit with blockchain security firm PeckShield. Victims include decentralized finance (DeFi) protocols that had staked liquidity in Multichain pools. The incident underscores persistent security risks in bridges, which have now lost over $2 billion to hacks this year alone (via CoinTelegraph).
4. U.S. Treasury Proposes Sweeping AML Rules for Self-Custodied Crypto Wallets
The U.S. Department of the Treasury on June 20 unveiled a proposal to expand anti-money-laundering (AML) requirements to crypto self-custody services and decentralized applications (dApps). Under the draft rule, wallet providers and certain smart contracts with over 5,000 monthly transactions would need to collect customer identity information, report suspicious activity, and retain records for five years. The proposal aims to plug perceived “travel rule” gaps and mirror banking regulations. Industry groups, including the Blockchain Association, have warned the plan could stifle innovation and infringe on user privacy. A 60-day public comment period begins upon the rule’s Federal Register publication (via The Block, citing Reuters).
5. Ethereum’s Proto-Danksharding (EIP-4844) Nears Approval for Q3 Upgrade
Ethereum core developers signaled on June 22 that EIP-4844—better known as proto-danksharding—will be activated in the upcoming “Cancun” upgrade, currently slated for Q3 2024. EIP-4844 introduces “blobs,” a new data type that dramatically lowers Layer-2 transaction costs by offloading rollup data from the main chain, potentially cutting fees by up to 90 percent. Testnet deployments have shown stable performance, and major Layer-2 projects such as Optimism and zkSync have pledged swift integration. If all goes to plan, proto-danksharding could further entrench Ethereum’s lead in scalable smart-contract platforms (via The Block).