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What to know:

By Omkar Godbole (All times ET unless indicated otherwise)

The global crypto corporate-adoption narrative is thriving even as bitcoin and the wider crypto market take a bull breather, potentially establishing a base for a new high.

Méliuz, a publicly listed Brazilian fintech firm, announced Thursday the purchase of 274.52 BTC. It now holds 320.2 BTC worth over $33.3 million. On Wednesday, Bahrain-listed A1 Abraaj Restaurants Group disclosed an initial purchase of 5 BTC with plans to scale holdings significantly.

Eric Trump, the second-eldest son of President Donald Trump, captured the feeling on day 2 of CoinDesk's Consensus Toronto event: "I'm traveling. I'm on a plane. Everybody in the world is trying to hoard bitcoin right now. Everybody. I hear it from sovereign wealth funds. I hear it from the wealthiest families. I hear from the biggest companies."

While the global adoption race no doubt favors a continued bull market, some recent developments, such as the crumbling bipartisan support for the GENUIS Act aimed at creating a national regulatory framework for payment stablecoins and the Coinbase (COIN) data breach, are concerning.

"While many are cheering COIN's entry into the S&P 500, it's been quite the week otherwise," Quinn Thompson, chief investment officer at Lekker Capital, said on X. "Obstructing the stablecoin bill to prolonging their regulatory capture at the industry's expense, losing customer funds and jeopardizing personal data and now an SEC investigation. What amazing timing, too, that this was all announced after the S&P 500 inclusion pump that insiders sold into."

On Thursday, Coinbase's shares tanked 7% as the exchange confirmed an ongoing SEC investigation into potentially inflated user metrics from 2021.

Add to the pot that inflows into U.S.-listed spot BTC exchange-traded funds (ETFs) have slowed (see Chart of the Day), alongside large sell orders at around $105,000. FTX creditors are set to receive over $5 billion in distributions starting May 30, as part of the second phase of the bankrupt exchange’s court-approved recovery plan.

All this indicates scope for price volatility in the short term. Stay alert!

Grayscale’s New Income-Focused ETFs

Grayscale, the world’s largest crypto-native asset manager, now offers two new income-focused ETFs:

• Grayscale Bitcoin Covered Call ETF (BTCC) seeks to maximize potential income generation, and is designed to serve as a complement to existing Bitcoin ownership.
• Grayscale Bitcoin Premium Income ETF (BPI) seeks to balance upside participation with income generation, and is designed to serve as an alternative to direct Bitcoin ownership.

Through two different approaches to systematic covered call writing on Bitcoin, these two products deliver an alternative income stream for investors that’s less correlated to traditional income-oriented investments.

BTCC and BPI both offer monthly distributions for investors.* See the latest distribution amount on their respective product pages at etfs.grayscale.com

Important Disclosures

*The Funds intend to pay out dividends from net investment income, if any, and distribute any net unrealized capital gains to their shareholders at least annually.

Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the Funds, please call (866)-775-0313 or visit our websites at etfs.grayscale.com/btcc and etfs.grayscale.com/bpi. Read the prospectuses or summary prospectuses carefully before investing.

Investing involves risk and possible loss of principal. There is no guarantee the investment strategy will be successful. The Fund is considered to be non-diversified. The Fund is actively managed and its performance reflects the investment decisions that the Adviser makes for the Fund.

Grayscale Bitcoin Covered Call ETF (“BTCC”) and Grayscale premium Income ETF ("BPI") (collectively, the "Funds") will not invest in digital assets directly. The Funds also will not invest in initial coin offerings. The Funds will, however, have indirect exposure to digital assets by virtue of its investments in derivatives on exchange-traded vehicles that hold digital assets as investments. Because the Funds will not invest directly in any digital assets, they may not track price movements of any digital assets.

BTCC and BPI are distributed by Foreside Fund Services, LLC and Grayscale Advisors, LLC is the adviser. Foreside is not related to GSA or its affiliates.

Crypto:

• May 16, 9:30 a.m.: Galaxy Digital Class A shares begin trading on the Nasdaq under the ticker symbol GLXY.
• May 19: CME Group is expected to launch its cash-settled XRP futures.
• May 19: Coinbase Global (COIN) will replace Discover Financial Services (DFS) in the S&P 500, effective before the opening of trading.
• May 22: Bitcoin Pizza Day.
• May 22: Top 220 TRUMP token holders will attend a gala dinner hosted by the U.S. president at the Trump National Golf Club in Washington.
• May 30: The second round of FTX repayments starts.

Macro

• May 16, 10 a.m.: The University of Michigan releases (preliminary) May U.S. consumer sentiment data.
  • Michigan Consumer Sentiment Est. 53 vs. Prev. 52.2
• May 20, 8:30 a.m.: Statistics Canada releases April consumer price inflation data.
  • Core Inflation Rate MoM Prev. 0.1%
  • Core Inflation Rate YoY Prev. 2.2%
  • Inflation Rate MoM Prev. 0.3%
  • Inflation Rate YoY Prev. 2.3%

Earnings (Estimates based on FactSet data)

• May 20: Canaan (CAN), pre-market
• May 28: NVIDIA (NVDA), post-market, $0.88

Governance Votes & Calls

Unlocks

Token Launches