Dex-Trade News Digest: Cardano's Sustainability Indicators and Record Bitcoin ETF Inflows
Cardano Foundation Releases Sustainability Indicators to Comply with EU MiCA Regulations
The Cardano Foundation, in collaboration with the Crypto Carbon Ratings Institute (CCRI), has launched a comprehensive set of sustainability indicators to meet the Markets in Crypto-Assets (MiCA) regulation requirements in the European Union. This initiative underscores Cardano’s commitment to transparency, sustainability, and regulatory compliance, setting a new standard for the broader crypto industry in the EU.
Aligning with MiCA Regulations
On July 2, the CCRI released a detailed report on Cardano, aligning with the MiCA mandate, which requires crypto asset issuers and service providers to disclose sustainability indicators. This adherence is in line with MiCA’s Articles 6 (1) and 66 (5), which demand detailed environmental impact information for both token issuers and crypto-asset service providers.
The Cardano Foundation collaborated with CCRI to ensure rigorous blockchain monitoring and data collection. The report highlights Cardano’s energy-efficient consensus protocol, which consumes significantly less electricity compared to energy-intensive Proof of Work (PoW) protocols like Bitcoin. As of May 2024, the network’s total annualized electricity consumption was reported at 704.91 MWh.
Key Metrics and Compliance
Key metrics in the report include electricity consumption, carbon footprint, and marginal power demand per transaction per second. These metrics align with the draft regulatory technical standards (RTS) set by the European Securities and Markets Authority (ESMA) under the MiCA framework.
Frederik Gregaard, CEO of the Cardano Foundation, emphasized the importance of these efforts in building trust with regulators, investors, and users, facilitating the wider adoption of blockchain technology sustainably.
MiCA’s Impact on Service Providers
The initial phase of MiCA regulations focuses on stablecoins, with additional regulations for crypto asset service providers to be introduced in December. This will impact ecosystems such as Cardano, Circle, Bitstamp, and Binance, as they adapt to comply with the new regulatory framework.
Spot Bitcoin ETFs See $129 Million in Inflows, Largest in Almost a Month
Spot Bitcoin exchange-traded funds (ETFs) witnessed $129.45 million in daily net inflows on Monday, marking the fifth consecutive day of positive flows and the highest level of fund intake since June 7. Leading the inflows was Fidelity’s FBTC with $65 million, followed by Bitwise’s BITB with $41 million, and Ark Invest and 21Shares’ ARKB with $13 million.
Digital Asset Investment Products Experience Outflows
Conversely, digital asset investment products experienced outflows for the third consecutive week, totaling $30 million. Despite the outflows, trading volumes for digital asset investment products rose by 43% week-on-week, reaching $6.2 billion.
Geographically, the United States, Brazil, and Australia saw inflows, while Germany, Hong Kong, Canada, and Switzerland experienced outflows. Ethereum faced its largest outflows since August 2022, totaling $61 million last week, making it the worst-performing asset in terms of net flows year-to-date.
Analysts Bullish on Bitcoin in July
Analysts from QCP Capital suggest that both Bitcoin and Ether historically perform well in July due to positive seasonality. They noted a median return of 9.6% for Bitcoin in July, especially following a negative June.
QCP Capital proposed a potential trade idea involving a BTC Accumulator with an expiry of 20SEP24, benefiting from the expected bullish momentum in July. The strategy involves buying BTC below the $60,000 mark, with a strike price set at $59,000 and a barrier at $71,000.
