Crypto Firms Embrace Traditional Finance
The lines between traditional finance (TradFi) and the cryptocurrency world are blurring as crypto firms launch more Wall Street-style offerings. This trend reflects the growing demand for flexible investment products that bridge the gap between these two financial paradigms. As Gracy Chen, CEO of Bitget, the world’s sixth-largest crypto exchange, puts it, “There’s a growing synergy between traditional financial investments and the emerging crypto space. Crypto players are now checking out traditional finance as they see the opportunity to bridge it.”
This convergence is driven by investor appetite for products that straddle both worlds. “Investors want flexibility, and products that can straddle both worlds are naturally attractive,” Chen added. “Some players see TradFi as a safety net; others, like Bitget, see it as a launchpad for broader adoption.”
Securitize and Mantle Launch Institutional Crypto Fund
Securitize, a tokenization platform, has partnered with Mantle, a decentralized finance (DeFi) protocol, to launch an institutional fund designed to generate yield on a diverse basket of cryptocurrencies. The Mantle Index Four (MI4) Fund aims to provide investors with exposure to major cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), and Solana (SOL), as well as stablecoins pegged to the US dollar.
This fund is similar to a traditional index fund that tracks a mix of stocks, but with a crypto twist. It also includes liquid staking tokens, like Mantle‘s mETH, Bybit’s bbSOL, and Ethena’s USDe, to enhance returns with onchain yield. This move comes as both retail and institutional investors are increasingly looking to cryptocurrencies, particularly Bitcoin, as a hedge against macroeconomic uncertainty.
Symbiotic Raises $29 Million for Staking-Based Coordination Layer
Symbiotic, a cryptocurrency staking protocol, has secured $29 million in Series A funding led by Web3-focused investment firms, including Pantera Capital and Coinbase Ventures. The funding will be used to launch a new economic coordination layer designed to bolster blockchain security through staking.
Symbiotic’s Universal Staking Framework aims to provide a flexible and modular approach to securing blockchains, allowing protocols to utilize any combination of cryptocurrencies, including layer-1 and layer-2 blockchains. This “empowers protocols at every stage of their lifecycle to evolve their security models seamlessly without rebuilding infrastructure,” explained Symbiotic co-founder Misha Putiatin.
SEC Delays Polkadot ETF Decision
The US Securities and Exchange Commission (SEC) has delayed a decision on whether to approve a proposed exchange-traded fund (ETF) holding Polkadot’s native token. This delay, extending the deadline to June 11, comes nearly four months after Nasdaq sought permission to list Grayscale Polkadot Trust.
Grayscale’s ETF filing is one of many awaiting SEC approval, including funds holding altcoins, memecoins, and crypto-related financial derivatives. As Bloomberg analyst Eric Balchunas noted, asset managers are seeking to launch ETFs for “everything from XRP, Litecoin and Solana to Penguins, Doge and 2x Melania and everything in between.” 21Shares is also awaiting permission to list its own Polkadot ETF.
DeFi Market Overview
The DeFi market continues to see growth, with most of the top 100 cryptocurrencies by market capitalization ending the week in the green. The Official Trump (TRUMP) token led the charge, soaring over 73% after the president announced an exclusive in-person dinner for the top tokenholders. The Sui (SUI) token followed closely, gaining over 69%.
