Welcome, this is The Crypto Explorer, your crypto tour guide.

The US government and Coinabse have sealed their crypto business with a $32.52 million-dollar contract!

Here’s what we got for you today:

• 🤑 US Government Awards Coinbase a Multi-Million Dollar Contract!

• 😱 Why is Grayscale Bitcoin ETF losing millions?

• 🧱 Around The Block: Dapper Labs agrees to a $4M settlement in class action securities suit.

🤑 US Government Awards Coinbase a Multi-Million Dollar Contract!

The US government has chosen Coinbase to handle and manage its digital assets! Yes, you read that right!

Specifically, the U.S. Marshals Service (a sub-tier of the Department of Justice) will team up with Coinbase to manage "Class 1" cryptocurrencies seized in legal actions.

This partnership aims to streamline custody, management, and disposal processes for cryptocurrency assets, allowing for broader management of various types of crypto assets.

And get this - the contract is valued at a staggering $32.52 million!

Imagine scoring a 30-some million-dollar government contract just to help them push the sell button. It’s completely Amazing!

But here’s the amusing part:

Despite the government's use of Coinbase for holding and trading cryptocurrencies, the exchange is currently facing legal challenges from the SEC over allegations of selling unregistered securities.

The irony, right?

Well, here’s the overall moral of the story: Don't commit crimes with Bitcoin – they'll always catch you.

To learn more, click here!

 😱 Why is Grayscale Bitcoin ETF Losing Millions?

Grayscale was among the first to push for spot Bitcoin ETF approval, but ironically, their own Bitcoin ETF hasn’t been doing well!

In June alone, they saw outflows of over $450 million, including a significant $27 million on June 28th.

And since their ETF's launch on January 11th, they’ve experienced a staggering $14 billion in outflows.

The reason? Their fees!

Grayscale charges a hefty 1.5% annual fee, much higher than the 0.30% average of other Bitcoin ETFs. This high fee has sent investors running for cheaper alternatives.

And if you’re wondering why their fees are so high, Jim Bianco, Research founder and former Wall Street analyst, has two reasons!

One is that Grayscale analyzed its GBTC holders’ tax bill and came to the conclusion that they are “stuck” because leaving is too costly.

Plus, they are betting on Bitcoin’s price rising above $100k within a year or two to increase their assets and offset these outflows!

That could be the reason, or, as a Reddit user suggested, Grayscale wants to wait until Blackrock surpasses them in AUM before lowering its fees.

But who really knows at this point?🤷‍♀️

One thing is for sure, though: Grayscale needs to shake things up if they want to turn the tide.

Click here to dive into the details!

🧱 Around The Block:

Dapper Labs agrees to a $4M settlement in class action securities suit.

• Dapper Labs agrees to a $4M settlement in class action securities suit.

• German and U.S. governments move significant amounts of Bitcoin and Ether.

• Polymarket logs first $100M month as election drama heats up.

• Evolve Bank leak has the personal data of Bitfinex, Copper, and Nomad users.

• Token merger of SingularityNET, Fetch.ai, and Ocean Protocol goes live.

• MiCA’s stablecoin regime takes effect amid uncertainty.

That's all we've got for you today.

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In any case, see you tomorrow, or on Twitter, if you're there: @danielakpobare

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell assets or make financial decisions. Please be NEW”