Crypto Market UpdateTable of ContentsBitcoin and Ethereum UpdatesBitcoin's ETF Inflows and Market StabilityEthereum Surges Amid ETF SpeculationMajor Asset Managers Update Ethereum ETF ApplicationsBitcoin and Ethereum ETFs Record InflowsMarket TrendsMemecoins See Gains Amid Ethereum ETF SpeculationRegulatory NewsWhite House's Stance on FIT21 Crypto BillWisdomTree Approved for Bitcoin and Ether ETPsUniswap Challenges SEC's Token ClassificationPrivacy and SecurityHong Kong Bans Worldcoin's Data CollectionVitalik Buterin Uses Railgun for PrivacyExchange and Platform DevelopmentsMetaMask to Integrate Bitcoin SupportZkSync Prepares for Token Generation EventStarkWare Introduces zkEVM for StarknetAI and TechnologyLivepeer's AI Video Generation SubnetCasper Labs and IBM Enhance AI GovernanceNear's AI Agent for DApp DevelopmentFunding and InvestmentKelp DAO's Private Sale for ExpansionLegal and Criminal CasesSam Bankman-Fried's Prison TransferNFT MarketMilady Maker Tops NFT Sales ChartAzuki x Satoshi Nakamoto Hoodie TokenizedBitcoin's ETF Inflows and Market StabilityBitcoin hovered around $70,000 after BlackRock’s spot bitcoin ETF saw month-high inflows of over $290 million. Celebrating Bitcoin Pizza Day highlighted Bitcoin’s 17,400% growth since its 2010 inception, as Bitcoin whales spent $6.3 billion in one day, accumulating nearly 9,000 BTC, while smaller investors sold. Bitfinex noted that 55,000 BTC outflows from exchanges didn't affect Bitcoin's stability, attributing its consistent high closes to strong ETF inflows. The upcoming FOMC Meeting Minutes release today is also expected to have an impact on price.Ethereum Surges Amid ETF SpeculationEthereum experienced a significant surge to its two-month high with over a 30% weekly gain, spurred by talks of potential ETF approval. Analysts from Lyra predict a 20% chance of ETH hitting $5,000 by the end of June. Market volatility increased as traders deposited $231M in ETH on exchanges amid ETF speculation. ETH's market cap grew substantially, adding nearly the entire Solana blockchain's value in one day. According to some analysts, the SEC's potential approval of spot Ether ETFs is considered underpriced. Total staked Ethereum exceeded 32 million, indicating a supply crunch and price rally. Ethereum futures ETFs saw record daily trading volumes, and options expiries indicated a bullish bias.Major Asset Managers Update Ethereum ETF ApplicationsBlackRock, Bitwise, VanEck, Fidelity, and other major asset managers have updated their spot Ethereum ETF applications to address SEC feedback, notably removing staking provisions. The SEC’s stance has shifted, increasing approval odds from 25% to 75%. VanEck’s ETF is listed on the DTCC, pending SEC approval. Analysts predict that the ETFs could launch within weeks, potentially boosting Ethereum's market value to new highs. Grayscale's ETHE discount to NAV hit its lowest since 2021 amid growing optimism. Political factors, including the upcoming US election, may influence these regulatory decisions.Bitcoin and Ethereum ETFs Record InflowsOn May 21, Bitcoin ETFs saw a $305.7 million surge, with BlackRock's IBIT ETF leading with $290 million, raising its total to $16 billion ahead of the SEC's Ethereum ETF deadline. In Hong Kong, Ether ETFs recorded their highest daily inflow, driven by potential US SEC approval, with ChinaAMC's fund seeing HK$5 million.Memecoins See Gains Amid Ethereum ETF SpeculationMemecoin continues to be the top winning sector as traders leverage the speculation of potential Ethereum spot ETF approval. Today PEPE surged 22.41% to a new ATH, while a BlockTower Capital-linked address sold all its PEPE tokens for $2.79 million, gaining $569,000. Shiba Inu whales acquired 5.58 trillion SHIB worth $145.48 million, and nearly 681 million DOGE worth $65.5 million was transferred to Coinbase and Robinhood amid a 12% price increase.White House's Stance on FIT21 Crypto BillWhite House announced it would not veto the FIT21 crypto bill, despite opposing it for insufficient consumer protections. The bill, aimed at regulating digital assets, faces significant opposition. SEC Chair Gary Gensler criticized it for weakening SEC oversight and risking investor protection. Key Democrats and Republicans are divided, with some bipartisan support emerging.WisdomTree Approved for Bitcoin and Ether ETPsWisdomTree received approval to list bitcoin and ether ETPs on the London Stock Exchange, with products scheduled to start trading on May 28, exclusively for professional investors. The FCA lifted the ban on ETPs for professional investors, allowing the listing of Physical Bitcoin (BTCW) and Physical Ethereum (ETHW) ETPs, while retail investors remain excluded. The products will carry fees of 35 basis points.Uniswap Challenges SEC's Token ClassificationUniswap Labs refutes SEC’s Wells Notice, challenging token classification as securities. Chief Legal Officer argues tokens as value files, not securities. SEC's intensified crypto scrutiny targets Ethereum and DeFi players. Distinction between tokens and securities pivotal. Uniswap Labs ready to litigate. SEC faces precedent risk in Uniswap case. UNI token gained 20% after the news. Hong Kong Bans Worldcoin's Data CollectionHong Kong's Privacy Commissioner prohibits Worldcoin from iris and facial image collection due to privacy violation concerns, citing unnecessary data gathering and lack of transparency. The crypto project faces enforcement actions in various countries for similar privacy breaches but continues to gain traction. Worldcoin has been lauded for its recent strides in data privacy, with praise from Ethereum co-founder Vitalik Buterin. Vitalik Buterin Uses Railgun for PrivacyEthereum co-founder Vitalik Buterin recently transacted 80 ETH (nearly $300,000) through Railgun's privacy protocol, engaging with it for months. Railgun uses ZK-SNARKs to conceal wallet addresses. Buterin endorses its privacy features, emphasizing its security advantages over Tornado Cash. However, Railgun faced misuse allegations but refuted claims of association with North Korean hackers.MetaMask to Integrate Bitcoin SupportMetaMask reportedly seeks to integrate Bitcoin, intending to bridge the tribal divides in the crypto space. The exact timeline remains unclear, but functional support for Bitcoin could arrive within a month. With over 30 million monthly users, MetaMask is known for Ethereum support. This move hints at embracing a multi-chain web3 environment. The development is led by Consensys, championed by Ethereum co-founder Joe Lubin.ZkSync Prepares for Token Generation EventZkSync is reportedly gearing up for its token generation event (TGE) with a substantial supply of 21 billion tokens. The TGE includes an airdrop anticipated by June 13 and a governance model launch. Despite a ticker conflict with Polyhedra Network for 'ZK', ZkSync persists. Notably, the network emphasizes decentralization, community control, and pioneering ZK-rollups technology. StarkWare Introduces zkEVM for StarknetStarkWare introduces Kakarot, a zkEVM for Starknet, enhancing Ethereum compatibility. Kakarot, currently in testing, allows developers to code in Solidity, expanding project opportunities. The move signifies Starknet's growth and flexibility, catering to diverse developer preferences. CEO Ben-Sasson hails the move, noting Starknet's commitment to innovation and accommodating different coding languages. Livepeer's AI Video Generation SubnetLivepeer introduces an AI video generation subnet within its decentralized video distribution network, sharing GPU resources for AI tasks. LPT tokens turn slightly inflationary. Livepeer's project treasury grows, aiding AI capabilities. LPT's price surges post-AI announcement. Grayscale features Livepeer Trust trading above LPT prices. Livepeer coins rise sharply in May. Casper Labs and IBM Enhance AI GovernanceCasper Labs and IBM integrated Prove AI with "watsonx.governance" platform to enhance security and versioning. Prove AI aids in AI data set auditing, offering features like security, version control, and audit logs. The governance solution, developed with IBM Consulting, focuses on de-risking AI initiatives, aligning with regulatory demands, including the EU's AI Act. GreyscaleAI is the first design partner for Prove AI. Near's AI Agent for DApp DevelopmentNear co-founder Illia Polosukhin envisions an AI agent that will empower non-technical users with the ability to create decentralized applications (DApps). This set-up is designed to grant individuals the capacity to bring their project ideas to life without a need for coding skills. The AI will enable end-to-end DApp development, covering various aspects from coding to user-interface development. Polosukhin also addressed the risks associated with AI, emphasizing a need for user-owned AI models optimized for user well-being and open-source principles. Kelp DAO's Private Sale for ExpansionKelp DAO closed a $9 million private sale led by SCB Limited and Laser Digital, with participation from various investors. The capital will bolster the platform, aiding its expansion to ecosystems like Solana and Bitcoin. Notable crypto figures, such as Scott and Alex, backed the initiative. The focus is on enhancing user experience and driving innovation in restaking solutions. Sam Bankman-Fried's Prison TransferReports indicated Sam Bankman-Fried (SBF), former FTX CEO, will be transferred from Brooklyn's MDC to California's Federal Correctional Institution in Mendota, despite his appeal. SBF was sentenced to 25 years for seven felony counts in March. Ryan Salame, former FTX executive, pleaded guilty to campaign finance violations and unlicensed money transmission. Prosecutors seek a 5-7 year sentence for Salame, who funneled over $100 million illegally and aided SBF and FTX's political aims. Salame’s sentencing is set for May 28. Top Altcoin Gainers and LosersGainers: dogwifhat WIF (+14.02%) BOOK OF MEME BOME (+12.56%) Gala GALA (+9.69%) Losers:Pendle PENDLE (-7.48%) Lido DAO Token LDO (-6.89%) Core DAO CORE (-5.86%) NFT Market MapMilady Maker Tops NFT Sales ChartMilady Maker dominated CryptoSlam's daily NFT sales with US$1.07 million, surging from US$267,554. A new Yuga Labs NFT collection sparked backlash. CryptoPunks ranks second with US$737,526 in sales from five transactions and 14 transfers. Ethereum blockchain led with US$8.47 million in NFT sales, while Bitcoin, Polygon, and Mythos Chain also saw substantial activity. Azuki x Satoshi Nakamoto Hoodie TokenizedAzuki and Magic Eden partnered to tokenize the limited edition "Satoshi Nakamoto Enduro Hoodie" as a dual-chain NFT product on both Ethereum and Bitcoin blockchains. The hoodie, honoring Bitcoin's creator, has just 98 pieces, each embedding a chip for minting NFTs on both chains. Azuki's Physical Backed Token tech ensures secure ownership transfers with decentralized verification. This article has been refined and enhanced by ChatGPT.