Franklin Templeton Proposes New Bitcoin-Ethereum ETF

Franklin Templeton Proposes New Bitcoin-Ethereum ETF

Franklin Templeton has filed a proposal with the US SEC for a new exchange-traded fund (ETF), named the Franklin Crypto Index ETF, which will hold both Bitcoin and Ethereum, trading under the ticker EZPZ. The ETF's allocation will be based on the market capitalization of these digital assets, though the exact ratio remains unspecified. Coinbase is set to be the digital asset custodian for this fund.

The ETF could expand to include additional cryptocurrencies in the future, pending regulatory approval. This filing comes on the heels of Hashdex's similar ETF proposal, which is currently awaiting a decision from the SEC. So far US Bitcoin ETFs hold $56.54 billion with BlackRock's IBIT topping the list with $20.75 billion. Ethereum ETFs, on the other hand have a combined AUM of $7.41 billion.

‍

MakerDAO Freezes WBTC Loans Over Custody Concerns

MakerDAO has approved a governance proposal to halt new borrowing against BitGo’s wrapped Bitcoin (WBTC) by reducing the WBTC debt ceiling to zero DAI, effectively preventing any new loans using WBTC as collateral. MakerDAO contributors raised concerns about BitGo's partnership with BiT Global, potentially leading to WBTC custody centralization in Hong Kong and Singapore.

Existing loans backed by WBTC will not be affected as the liquidation threshold remains unchanged. The move reflects growing apprehension within MakerDAO regarding the security and decentralization of WBTC under BitGo’s new management structure. BitGo’s CEO has defended the firm’s commitment to security despite these concerns.

‍

Optimism Reverts to Permissioned System After Bugs

Just two months after launching its permissionless fraud proof system, Optimism has reverted to a permissioned system due to vulnerabilities discovered during community-driven audits. The initial rollout was a key step towards achieving greater decentralization on the network, allowing any user to contest potentially fraudulent transactions.

However, the identification of several bugs, including two high-severity issues, led to the activation of fallback mechanisms to ensure user assets remained secure. To address these vulnerabilities, OP Labs has proposed an upgrade named "Granite," which includes a hard fork scheduled for September 10. Decentralized systems struggle to balance innovation and security, as this cautious approach shows.

‍

Worldcoin Expands Iris Scanning to Malaysia

Worldcoin has signed a memorandum of understanding with the Malaysian government to introduce its iris-based human verification technology in the country, marking a significant step in its global expansion. This collaboration aims to integrate Worldcoin's World Chain protocol with Malaysia's blockchain infrastructure and explore the local manufacturing of the orbs used for iris scans.

The project, co-founded by OpenAI CEO Sam Altman, seeks to distinguish human users from AI actors online, rewarding participants with cryptocurrency upon verification. Despite facing scrutiny over privacy concerns, Worldcoin continues to forge partnerships with countries like Austria and now Malaysia. The agreement signifies mutual interest but remains non-binding, reflecting early-stage cooperation.

‍

Data of the Day

Illegal cryptocurrency activity has decreased by nearly 20% year-to-date, as inflows to legitimate services reach their highest since the 2021 bull market, according to a new report by Chainalysis. However, this overall decline masks troubling trends in specific categories.

The report highlights that the average value of stolen crypto per incident has surged by almost 80%, driven in part by the increasing value of BTC. Additionally, off-chain methods, particularly those involving North Korean cybercriminals, are becoming increasingly sophisticated and challenging.

‍

More Breaking News

• The Arbitrum DAO has overwhelmingly approved a temperature check proposal for allowing staking, delegation, and a new liquid staked token system.
• WazirX has restored investor balances following a $234 million hack, but users remain frustrated due to continued uncertainty about fund withdrawals.
• Turkey's crypto sector is undergoing major changes as 76 companies, including Coinbase and KuCoin, apply for licenses under new regulatory frameworks.
• South Korea’s Pension Fund expanded its BTC exposure by buying $33.7M in MicroStrategy shares and upping its Coinbase holdings to $51M.
• Bitget Wallet has reached 30 million users and set a new record for downloads in July 2024, surpassing MetaMask and becoming the most used Web3 wallet.
• BlackRock has surpassed Grayscale as the largest holder of onchain Bitcoin and Ethereum assets, managing over $21.6 billion across its IBIT and ETHA funds.

For the latest updates on digital asset markets, follow us on X @Datawalletcom.