As the first month of the second half of the year comes to an end, let’s take a closer look at some of the major developments happening in the Web3 sector this month. July 2024 has been a month of notable developments, with the debut of the US Spot Ethereum ETF’s, significant political endorsements for the industry, and a notable resilience in Web3 amidst one of the largest cybersecurity outages seen to date. Join us in this month’s Core Fund update as we take a deep dive into these key events.
Official Debut of Ethereum on Wall Street
At the end of July, the Web3 sector saw another significant milestone with the official launch of U.S. spot ether ETFs. These ETFs made a strong debut, trading $1.07 billion worth of shares on their first day. This follows the highly successful launch of spot bitcoin ETFs in January 2024, which is known as the most successful ETF launches ever in the U.S. Now, Wall Street institutions and U.S. investors are not only buying Bitcoin via a regulated product but also Ethereum, further validating the space for those concerned about regulatory hurdles. The most actively traded ether ETFs included Grayscale’s Ethereum Trust with $450 million in turnover, iShares Ethereum Trust with $245 million, and Fidelity Advantage Ether ETF with $137 million. The success of the US Ethereum ETFs showcases a growing confidence and expanding interest from “traditional” investors and institutes in digital assets beyond Bitcoin.
That being said, Europe has had Ethereum and other Web3 digital asset financial products available via exchange-traded products for several years. This established framework in Europe has set a precedent for the U.S., which is now rapidly expanding its own offerings. In a recent development, VanEck filed for a spot Solana ETF with the U.S. Securities and Exchange Commission. The VanEck Solana Trust ETF, if approved, would track the performance of Solana’s price and be listed on the Cboe BZX exchange. Interest and intent to launch Solana ETFs show that there is evident demand for Web3 assets further than Bitcoin and Ethereum. Analysts expect many other Web3 projects follow suit in the longer term. 
Trump Pro-Crypto Campaign
In a turn of events, former President Donald Trump has started a pro-Web3 campaign for the 2024 elections. Once skeptical of web3 and blockchain technology, Trump now supports their potential. While in office, Trump was very critical of crypto. In 2019, he called digital assets “highly volatile and based on thin air.” He also said, “Unregulated Crypto Assets can facilitate unlawful behavior, including drug trade.” However, Trump has recently changed his stance and now strongly supports crypto.
During his keynote address at the Bitcoin 2024 conference in Nashville, Tennessee, Trump outlined his vision for the United States to become the “crypto capital of the planet.” He announced plans to create a Bitcoin “strategic reserve” and remove SEC Chair Gary Gensler if elected. Additionally, Trump has received endorsements from major Silicon Valley figures who support the web3 space, including Tesla CEO Elon Musk and billionaire crypto entrepreneurs Cameron and Tyler Winklevoss. Furthermore, Trump’s choice for his vice-president, JD Vance, is openly known to have a very strong pro-crypto stance. These moves have generated optimism across the Web3 community, suggesting potential favorable regulatory changes and increased mainstream acceptance of the web3 space. Trump’s public support for Bitcoin has also fueled speculation about the potential impacts on the Web3 market if he were to win the election. 
Global Cybersecurity Outage – Web3 Remains Unaffected
July also witnessed a significant cybersecurity event with a major outage at CrowdStrike, a leading cybersecurity firm. Despite the shutdown of many critical services globally, blockchain networks like Bitcoin and Ethereum continued to run smoothly, demonstrating the security of decentralized systems. Members of the Web3 community highlighted the contrast between centralized services and blockchain, emphasizing that decentralized nature allowed them to remain unaffected. Pro-crypto US Senator Cynthia Lummis also praised Bitcoin’s resilience, stating that “Strength in Numbers” is evident in the thousands of validator nodes that keep the network secure. This incident is a key showcase of the importance of blockchain technology in maintaining network secruity.
Conclusion
In conclusion, July has been a month marked by significant milestones for the industry. Month after month, the sector continues to mature at unprecedented rates and confidence in Web3 is ever-growing among both retailers and institutions. The debut of the US Spot Ethereum ETF, political endorsements for the sector, and the unaffected status of Web3 amidst a major cybersecurity outage all demonstrate the ongoing growth of the Web3 industry. The Six Capital team remains committed to leveraging these developments to maximize returns for our investors. As we move forward, we are excited about the opportunities that lie ahead and invite you to join us on this journey.
As the age-old saying goes, “The best time to plant a tree was twenty years ago. The second best time is now.”
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