The week's key investment highlights include major developments across AI, IT, Web3, and cryptocurrency markets (06-10.04)
In Brief
May was a breakout month for the crypto and Web3 sectors, marked by significant investments like Arch Labs securing $7 million for their Bitcoin DeFi framework, $28 million for Arbelos Markets, and a notable $118 million for the first ETF liquidity fund in Hong Kong.
As May commenced, the crypto and Web3 industries experienced a burst of investment activity. Arch Labs raised $7 million, spearheaded by Multicoin Capital, to develop a native Bitcoin DeFi platform. Meanwhile, Arbelos Markets attracted $28 million to improve its cryptocurrency futures and options offerings, with key backing from Dragonfly Capital. Additionally, Hong Kong unveiled its first-ever ETF liquidity fund, valued at HK$1 billion ($118 million), aimed at enhancing the trading landscape for cryptocurrency ETFs. Tether also proceeded with an investment in CityPay.io, aiming to expand cryptocurrency utility in Eastern Europe.
Arch Labs Achieves $7 Million Funding for New Native Bitcoin DeFi Platform: Multicoin Capital at the Helm
Arch Labs has successfully secured $7 million to develop a unique application platform specifically designed for Bitcoin. Multicoin Capital was the driving force behind the seed funding round. These funds will be utilized to facilitate the creation of decentralized applications (dApps) directly on the Bitcoin blockchain, eliminating the need for intermediaries. Arch Labs aims to speed up the advancement and deployment of decentralized applications by bringing on board seasoned engineers. Their platform is notable for featuring a decentralized verification network and a uniquely parallelized PoS mechanism, all supported by a zkVM created in Rust.
Arbelos Markets Secures $28 Million to Enhance Cryptocurrency Futures and Options Trading, with Dragonfly Capital Steering Investment
Anticipated a financing round, Arbelos Markets, a pivotal player in cryptocurrency trading, has successfully raised $28 million. The aim is to bridge the gap for seasoned investors by offering tailored cryptocurrency futures and options, thereby addressing the needs for hedging and liquidity that emerged amid recent market instabilities. The funding structure includes both debt and seed equity, with Dragonfly Capital, a renowned venture capital firm in the cryptocurrency sphere, taking a major role. Already recognized as a leading source of options block liquidity across centralized and decentralized exchanges, Arbelos reported over $25 billion in derivatives trading during the year's first half. The continued influx of venture capital investment in the crypto space has exceeded $1 billion for two consecutive months, reflecting a persistent appetite for growth among investors.
Hong Kong Introduces HK$1 Billion ETF Liquidity Fund to Stimulate Cryptocurrency ETF Trading
The first-ever Hong Kong has inaugurated a significant ETF liquidity fund valued at HK$1 billion (approximately $118 million). The fund's inception was a collaborative effort by LD Capital, Antalpha Ventures, and the quantitative trading firm Highblock, all designed to invigorate trading activities in the cryptocurrency exchange-traded funds (ETFs) space. ETF liquidity funds function as market makers, pooling investor capital to facilitate the buying and selling of ETF shares, hence fostering a more vibrant trading environment for the specific ETFs. This launch aligns with Hong Kong's ambitions to establish itself as a digital asset hub; notably, $230 million in assets have already been allocated to several Bitcoin ETFs. China Asset Management leads the charge with notable investments of $116 million and $19 million in its Ethereum and Bitcoin ETFs, respectively.
Tether Expands Its Presence in Eastern Europe Through Investment in CityPay.io
In its strategy to amplify its operations in Eastern Europe, Tether has escalated its investment in CityPay.io, a payment processor based in Georgia specializing in Bitcoin. CityPay.io allows users to utilize cryptocurrencies for various services. Over the next two years, the company intends to roll out its card and digital wallet services. Additionally, it plans to establish over 500,000 cryptocurrency payment outlets in authorized areas. This latest investment reinforces Tether's prior successful collaboration with CityPay.io, which has effectively enhanced cryptocurrency applications within Georgia.
Digest
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