This past week in the cryptocurrency sector was marked by a series of exciting developments. Notable happenings included updates on Ethereum ETFs, Terraform Labs’ strategic moves, Jump Trading’s latest decisions, South Korea’s National Pension Service investing in Coinbase, and a remarkable transaction surge on Polygon’s network. Let’s delve into the details of these top stories.

Ethereum ETFs: A Glimpse at the Future

Two major asset management firms, BlackRock and Fidelity, have recently filed with the U.S. Securities and Exchange Commission (SEC) for the creation of spot Ethereum ETFs. BlackRock aims to mirror Ethereum’s price with its iShares Ethereum Trust, appointing Coinbase as the custodian. Fidelity emphasized the significance of these ETFs in safeguarding U.S. investors, who currently seek riskier exposure methods. However, the SEC has postponed its verdict on the Hashdex Nasdaq Ethereum ETF, a blend of spot ether and futures, until January 2024. This delay reflects the SEC’s need for thorough consideration, affecting not only Ethereum but also a bitcoin futures ETF application by Hashdex.

Terraform Labs’ Acquisition Amidst Legal Challenges

In a bold move, Terraform Labs has acquired Pulsar Finance, a cross-chain portfolio management startup, even as its original co-founder, Do Kwon, remains incarcerated. The acquisition, led by CEO Chris Amani, is set to boost Terraform’s technological capabilities and foster the development of cross-chain applications. Pulsar, established in 2021, supports a vast array of networks and protocols, offering comprehensive tools for tracking tokens, DeFi positions, and NFTs.

South Korea’s National Pension Service Dives into Crypto 

The National Pension Service of South Korea, holding the title of the world’s third-largest pension fund, made a landmark decision to invest $19.9 million in Coinbase shares. This investment, a first in crypto-related securities for the fund, aligns with its policy of indirect crypto asset involvement. The NPS, managing assets of $755 billion as of June, had previously expressed interest in crypto exchanges but steered clear of direct crypto investments.

Jump Trading’s Strategic Shift 

Jump Trading has announced the separation of its cross-chain protocol, Wormhole, into an independent entity. This decision comes amidst a reevaluation of Jump Crypto, its cryptocurrency division, which has reduced its workforce by half from its 2022 peak. The firm’s refocus away from crypto is influenced by regulatory uncertainties in the U.S. and the termination of its partnership with Robinhood. Notably, Jump Crypto played a crucial role in recovering $323 million in ETH following a significant Wormhole hack and has been impacted by the FTX exchange collapse and Terra’s stablecoin troubles.

Polygon’s Transaction Surge 

Polygon’s network witnessed a dramatic increase in transaction volumes, primarily due to the mass minting of “PRC-20” tokens, akin to Ethereum’s Ordinals. This surge, escalating daily transactions to over 6 million, temporarily spiked gas fees to 7,000 Gwei. Despite this, Polygon maintained lower transaction costs compared to Ethereum’s mainnet, underscoring its efficiency and affordability in blockchain transactions.