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Spot Ethereum exchange-traded funds (ETFs) started trading in the US market last week, attracting $2.2 billion in inflows, but faced selling pressure from incumbent products. As reported by asset management firm CoinShares, the newly issued ETFs saw some of the largest inflows since December 2020, while trading volumes in ETH ETP rose by 542%.

However, Grayscale’s incumbent trust experienced $1.5 billion in outflows as some investors cashed out, resulting in a net outflow of $285 million for Ethereum products last week. This situation mirrors the Bitcoin trust outflows during the January 2024 ETF launches.

Overall, digital asset investment products saw $245 million in inflows, with trading volumes reaching $14.8 billion, the highest since May. Total assets under management rose to $99.1 billion, while year-to-date inflows hit a record $20.5 billion.

Notably, Bitcoin continued to attract investor interest, with $519 million in inflows last week, bringing its month-to-date inflows to $3.6 billion and year-to-date inflows to a record $19 billion.

The renewed investor confidence in Bitcoin is attributed to US election comments about its potential as a strategic reserve asset and increased chances for a rate cut by the Federal Reserve in September 2024.

Regionally, the US took the lead with $272 million in inflows last week, followed by Switzerland’s $40.6 million, Canada’s $2.5 million, and Australia’s $1.7 million. Meanwhile, Germany and Brazil saw outflows of $59.6 million and $5.6 million, respectively.

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• MetaMask and Mastercard launches a self-custody debit card pilot program in the UK and EU.
• The card converts crypto to fiat at the point of transaction using a smart contract.
• The card aims at increasing financial inclusion and will expand to other regions over time.

MetaMask, a leading crypto wallet company, has partnered with Mastercard and digital payments company Baanx to launch a self-custody debit card pilot program.

Initially available to users in the United Kingdom and the European Union, the card will allow customers to securely hold their digital assets until the exact moment of a transaction when they are automatically converted into fiat currency for payments.

The pilot program is expected to expand to other regions over time, potentially revolutionizing the way crypto assets are used in everyday transactions.

How will the MetaMask debit card work?

The self-custody debit card represents a significant advancement in the integration of cryptocurrency into mainstream financial systems.

When a MetaMask card is used at a retail outlet, online store, or other merchant, an on-chain transaction is initiated, transferring tokens from the user’s wallet to the “Crypto Life” smart contract. This smart contract authorizes the transaction through the point-of-sale system, ensuring seamless conversion from crypto to fiat currency, which is then processed through Mastercard’s payment network.

Users have the flexibility to choose which crypto assets to use for payment and can also decide where to store their private keys.

Increasing financial inclusion

The MetaMask debit card aligns with broader goals of increasing financial inclusion, particularly for the world’s unbanked population, which, according to the World Bank, exceeds one billion people.

Simon Jones, Chief Commercial Officer at Baanx, highlighted the potential of this technology to bring essential financial services to anyone with a mobile phone, a vision that could dramatically improve access in regions with limited banking infrastructure.

Moreover, with inflation rates skyrocketing in countries like Argentina, this card offers a practical solution for individuals seeking to protect their wealth by converting crypto assets into stable fiat currencies.

The MetaMask pilot could be a significant step toward the mainstream adoption of cryptocurrency for everyday use, especially in high-inflation environments.