The Daily: 'Promising' spot bitcoin ETF inflows, Worldcoin launches operations in Malaysia and more

Happy Friday! In today's Daily, we look at Worldcoin human verification tech launching in Malaysia, the "promising" rise of spot bitcoin ETF inflows, illegal onchain crypto activity decreasing and more. Let's get started. Worldcoin launches operations in Malaysia Malaysians can now use Worldcoin technology to verify their humanity through iris scans. A memorandum of understanding (MoU) has been signed between the Worldcoin Foundation, Tools for Humanity and the Malaysian government to launch Worldcoin operations in Malaysia. The Worldcoin project aims to preserve the future of the internet by distinguishing between human and non-human actors, providing individuals with World IDs after an iris scan. Despite facing privacy concerns, Worldcoin has expanded its partnerships globally, including recent agreements with nations like Austria. The MoU includes discussions on manufacturing iris-scanning orbs in Malaysia and potentially integrating Worldcoin’s World Chain protocol with Malaysia's blockchain infrastructure. The MoU was signed by Malaysia’s MIMOS Berhad, following earlier meetings between Worldcoin co-founders Sam Altman, Alex Blania and Malaysian officials in April. 'Promising' spot bitcoin ETF inflows Updated 13F filings indicate growing institutional interest in U.S. spot bitcoin ETFs. Coinbase analysts noted that rising inflows into spot bitcoin ETFs, even during bitcoin's underperformance, suggest sustained interest from new capital pools. The percentage of institutional ownership in bitcoin ETFs increased from 21.4% to 24.0% in Q2 2024, driven by growing interest from investment advisors. While hedge fund bitcoin ETF holdings decreased, the decline may reflect a cash and carry arbitrage strategy as open interest in bitcoin futures on the CME rose by 15% to $2.75 billion in Q2. Illicit crypto activity onchain down 20% Illicit cryptocurrency activity has decreased by 19.6% since the start of 2024, with inflows dropping from $20.9 billion to $16.7 billion, according to Chainalysis' mid-year Crypto Crime report. The report highlights that inflows into legitimate cryptocurrency services are at their highest level since the 2021 bull market, signaling continued global adoption of crypto. Despite the overall decline in crypto crime, inflows from stolen funds and ransomware jumped to $1.58 billion and $459.8 million, respectively. The report also notes a rise in the average value of stolen cryptocurrency per heist, partly due to higher bitcoin prices, and warns that 2024 could set a new record for ransomware payments. Bitcoin sidechain developers unveil BitVM2 whitepaper A new whitepaper on BitVM2 and the updated BitVM Bridge was released by Bitcoin scaling developers. The whitepaper outlines efforts to improve transaction efficiency on the Bitcoin network, focusing on enhanced transaction handling and updated cryptographic methods. BitVM2 aims to increase Bitcoin's transaction capacity without altering its core principles, utilizing optimistic computation to scale with sidechains. The whitepaper also introduces a permissionless system for challenging suspicious transactions and enhances the BitVM Bridge by reducing capital requirements and asset lock-up periods for faster transfers between networks. SERA taps Base for NFT drop that could bring a holder to space The Space Exploration &amp; Research Agency (SERA) has tapped Coinbase's Base network for a Space Summer NFT drop , offering buyers a chance to win a seat on a Blue Origin flight to low Earth orbit. Holders can participate in SERA's astronaut selection program by purchasing the NFTs, with opportunities to earn one of six seats on the New Shepard rocket and fast-track their progress through the selection process. The selection and voting process for astronauts will be conducted onchain, ensuring transparency and fairness while advancing SERA's mission to democratize access to space. A look at next week Aug. 19 marks the start of the Web3 Summit in Berlin and Coinfest Asia starts in Bali on Aug. 23 The Eurozone Consumer Price Index (CPI) will be released on Aug. 20 Never miss a beat with The Block's daily digest of the most influential events happening across the digital asset ecosystem. Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures .