Key Highlights

• Security Matters shares advanced 4.51% following platform introduction.
• New system emphasizes verified recycled plastic with enhanced monitoring capabilities.
• Digital Material Passports enable transparent recycled plastic commerce.
• Company registry designed to authenticate recycled plastic standards and availability.
• Plastic Cycle Token system provides digital oversight for recycling verification.

Security Matters (SMX) experienced upward momentum on Wednesday following the introduction of its Circularity-as-a-Service solution designed for the worldwide plastics sector. Shares reached $13.68, climbing 4.51%, as initial trading fluctuations transitioned into more stable afternoon activity. This debut establishes the company’s focus on authenticated recycled materials, transparent supply networks, and digital infrastructure for market operations.

SMX (Security Matters) Public Limited Company, SMX

Security Matters Debuts Circular Economy Platform for Plastics

SMX announced the solution is designed to transform recycled plastic into an authenticated and commercially viable industrial commodity. The infrastructure integrates molecular identification technology, reader networks, Digital Material Passports, and a comprehensive recycled materials registry. Additionally, it incorporates marketplace functionality and Plastic Cycle Tokens to validate recycling achievements.

The platform was developed in response to a plastics industry confronting increased financial pressures and supply uncertainties. Geopolitical conflicts, petroleum price instability, petrochemical production interruptions, trade restrictions, and environmental levies have fundamentally altered manufacturing economics. Consequently, producers now require documented evidence of recycled composition, provenance, and custody documentation.

Security Matters characterizes this transformation as the Age of Parity, wherein recycled plastics compete beyond environmental marketing narratives. The organization contends that authenticated recycled materials can achieve enhanced economic standing as virgin plastic pricing remains volatile. Accordingly, the solution emphasizes documentation, certification, and quantifiable circular economy metrics.

System Monitors Provenance, Standards and Regulatory Adherence

Every recycled material batch can receive a Digital Material Passport within the Security Matters framework. These passports document polymer classification, recycled percentage, origin point, quality grade, quantity, and authentication records. They additionally monitor reprocessing cycles, commercial exchanges, and regulatory compliance information for industry stakeholders.

The infrastructure addresses multiple segments throughout the plastics ecosystem. Participants include collection operations, sorting facilities, material recovery centers, reprocessing plants, compounding operations, pellet manufacturers and resin suppliers. The platform also accommodates converting operations, packaging producers, brand managers, retail organizations, and commodity trading firms.

The SMX Recycled Plastic Registry and Marketplace constitute core platform components. The registry catalogs authenticated recycled plastics and facilitates access for approved purchasers. It further enables enhanced transparency regarding quality specifications, geographic location, inventory levels, transaction records, and recycled material composition.

Security Matters Stock Advances as Industry Attention Intensifies

Security Matters equity appreciated as the platform introduction provided an updated commercial strategy centered on verified circular materials. Shares migrated toward the upper portion of the session’s trading band following an inconsistent opening. This movement reflected strengthening afternoon interest as market participants absorbed the announcement details.

The context surrounding this launch carries significance given mounting worldwide pressures facing plastic markets. Petrochemical supply chain disruptions, raw material scarcity, and packaging expense escalation have amplified uncertainty throughout the industry. Regulatory authorities and purchasers increasingly demand substantiated evidence supporting recycled content assertions.

SMX seeks to bridge this verification deficit through infrastructure built upon traceability protocols, registry documentation, and digital authentication mechanisms. The Plastic Cycle Token structure introduces an additional verification dimension for monitoring certified recycling performance. Through this approach, the company endeavors to make recycled plastics quantifiable, investment-grade, and more accessible for commercial transactions.

Welcome to our institutional newsletter, Crypto Long & Short. This week:

• To win over big investors, DeFi builders must act like accountable money managers, not just software developers, writes Ben Nadareski.
• Bitcoin holders can survive crashes and protect their assets by earning income through reinsurance, says Stephen Stonberg.
• Top headlines institutions should pay attention to by Helene Braun.
• “Hyperliquid’s 70% Rally: What Drove HYPE from $40 to $75 in Six Weeks” in Chart of the Week.

-Alexandra Levis

Expert Insights

Who answers the 3am call when DeFi breaks?

By Ben Nadareski, co-founder and CEO of Solstice

Last week, I shared something with CoinDesk that I want to sit with a little longer. A few minutes in an interview didn’t do it justice. My suggestion is that anyone building in DeFi should think of themselves as a financial asset manager who happens to write code, rather than as a software team that handles money.

A few people pushed back, so let me take one step further: the thing institutions really want from us has almost nothing to do with the code. They want to answer an age-old question: “When something goes wrong, who picks up the phone?”

So far, the answer has been nobody. The code is law: no company, no jurisdiction and no name on the door. For a while, we pushed that as the unique selling proposition (USP), and I understand the appeal. “Trust the contract, not the human” can feel like the safer bet, but if you spend time with a risk committee, you’ll see how strange it sounds to them.

They don’t underwrite code; they assess people and processes. They want to know who signed off, who can move funds, what happens at 3am when a key is compromised and whose responsibility it is to have considered those risks. If you hand them a brilliant protocol written by an anonymous team, with a multi-signature wallet (multisig) controlled by a group of people who have never met each other, the committee will not view it as an innovation. Instead, they will see it as an operational risk they can’t yet price.

And here’s where I’ve landed: the accountability they’re asking for is what lets decentralisation grow up. You get to keep the openness, the composability and the permissionless rails — all of it — while still answering the basic questions any serious financial steward should be able to address.

What does that look like in practice? It means having reserves you can verify in real time, allowing anyone to check solvency rather than relying on assertions in a blog post or press release. It includes controls to ensure that no single person can move significant amounts of money alone, because that’s standard practice in well-run institutions (and it should embarrass us that most protocols don’t adhere to this). None of this is a big ask; it’s the bare minimum.

I get the skepticism. People might say this is how you compromise on the speed that makes crypto alluring. I see it differently, though. Moving fast on what you build is a gift, whereas moving fast with other people’s money (with no one willing to be accountable for it) isn’t speed, it’s just risk waiting for a deadline. April showed us some of those deadlines, and there will be more.

The audience for getting this right has already changed. The institutions everyone keeps waiting for aren’t on their way. They’re already here, managing real money on these rails right now while half the industry debates whether they belong. The platforms that win in the next few years will be the ones that can include a Galaxy or Susquehanna alongside someone opening their first wallet in Lagos. Both should have the same access and the same protections, and both should know who is accountable when it counts.

That’s the bar I want us to be measured against, and I want it set higher than the banks — not on the same level. Not because regulators are coming, although they are. The harder question is whether we’ll build it ourselves or wait for someone else to force our hand.

Principled Perspectives

The centuries-old structure solving bitcoin’s yield problem

By Stephen Stonberg, CEO and co-founder, Tabit Insurance

Bitcoin holders face a dilemma: how do you preserve ownership through market stress without being forced into actions that destroy long-term value? The answer is not another “crypto yield wrapper”. As bitcoin BTC$62,285.48 adoption matures, a centuries-old financial structure is emerging as a compelling alternative: reinsurance.

BTC is currently trading well below its 2025 highs, and the drawdown is testing conviction across the investor spectrum. The investors who build lasting wealth are not those who predict bottoms or avoid drawdowns; they are the ones who can hold through corrections without being forced to sell. That requires a way to generate income from a long-term bitcoin position without relying on bitcoin’s price direction.

Why the traditional bitcoin yield playbook fails when you need it most

Most yield offerings fall into two buckets: options strategies that monetize volatility, and lending platforms that rehypothecate assets. Both tend to break precisely when stress arrives. Options strategies expose holders to path dependency, volatility regime shifts and counterparty risk, with yield that vanishes when margin calls hit. Lending platforms can be worse: bitcoin disappears into opaque collateral chains, and when liquidity dries up, so does the capital behind it.

Reinsurance is a different source of yield entirely

Reinsurance is insurance for insurance companies, allowing primary insurers to transfer portions of their risk portfolio to limit exposure to large-scale events. These contracts operate independently of financial markets, creating a structurally different return profile that combines underwriting profits with conservative leverage, a time-tested approach that predates cryptocurrency by centuries.

The key insight is that reinsurance returns are driven by real-world risk selection and pricing rather than bitcoin’s price direction. Hurricane risk in Florida does not care if bitcoin is trading at $40,000 or $100,000. This creates historically low correlation to both crypto markets and public equity beta with genuine diversification, rather than repackaging the same underlying exposures.

The mechanics

The structure is simple: post bitcoin as capital in a regulated (re)insurance vehicle, write USD-denominated policies and collect premiums in dollars. Reserves are held in cash and cash equivalents, using standard trust and custody mechanics, keeping the bitcoin ring-fenced as capital, not rehypothecated. Reinsurance is structurally advantaged here. BTC remains in institutional-grade custody within a corporate structure with legal segregation intended to isolate different investors’ assets, with investors able to have 24/7 on-chain proof of their bitcoin capital. This preserves the core objective: maintaining BTC exposure for long-term appreciation, while generating dollar cash flows from uncorrelated reinsurance premiums.

Why institutions should consider reinsurance

Recent 13F filings suggest that long-duration institutional investors are not all running for the exit. Select endowments, public pension plans and sovereign wealth-backed investors have added or maintained bitcoin ETF exposure through the drawdown, underscoring that sophisticated allocators are increasingly treating regulated bitcoin exposure as a long-term portfolio position rather than a purely tactical trade.

But staying the course is easier to justify when a bitcoin position can produce cash flow without depending on price appreciation alone. Reinsurance operates within established regulatory perimeters, supported by actuarial discipline, underwriting controls and capital adequacy standards. For institutions thinking in decades, that distinction matters. The objective is not to chase incremental yield by taking on more crypto-native risk. It is to keep bitcoin exposure intact, earn dollar-denominated income from an independent risk pool and reduce the likelihood that market stress forces a sale at precisely the wrong time.

Headlines of the week

By Helene Braun

A dormant Satoshi-era bitcoin wallet moved after 14 years as the owner became the target of a $285 billion lawsuit, with notice served through Bitcoin’s blockchain; institutional investors continued pulling money from bitcoin ETFs even as BTC revisited the $60,000 level that attracted buyers earlier this year; and DFG CEO James Wo, who built a billion-dollar crypto investment firm from a $20 million family-backed start, said he remains bullish on bitcoin while questioning some of the market’s most aggressive ether price forecasts.

Chart of the Week

Hyperliquid’s 70% rally: what drove HYPE from $40 to $75 in six weeks

HYPE ran from ~$44 to an ATH of $75.52 in six weeks (early May to June 3), as spot ETF launches from Bitwise and 21Shares drove over $130 million; the ATH broke on June 2–3 as TD Securities published the first major bank report documenting Hyperliquid beating CME to oil price discovery, with Grayscale’s HYPG ETF launching the same day.

Listen. Read. Watch. Engage.

• Listen: $3 billion leaves Bitcoin ETFs. Why Wall Street isn’t panicking. Jennifer Sanasie is joined by David LaValle to unpack a $2.97 billion outflow streak from Bitcoin ETFs, Bloomberg’s Eric Balchunas explains why the recent outflows may be more noise than signal and Stellar Development Foundation CEO Denelle Dixon discusses DTCC’s decision to select Stellar.
• Read: In “Crypto for Advisors”, Beth Haddock reviews the three due diligence questions advisors should be asking in 2026. Then, Aaron Brogan reviews the GENIUS Act implementation timeline and how things will change once it’s here.
• Watch: “I will not vote for CLARITY until we address ethics.” Senator Angela Alsobrooks joins CoinDesk Policy Protocol hosts Rebecca Rettig and Renato Mariotti to discuss the three outstanding issues she needs resolved before voting the CLARITY Act off the Senate floor.
• Engage: The CoinDesk: Policy & Regulation event is heading back to Washington, D.C. on September 24. This one-day event connects law makers with chief legal officers, compliance officers and policy experts to discuss the future of digital asset industry standards.

Looking for more? Receive the latest crypto news from coindesk.com and market updates from coindesk.com/institutions.

Note: The views expressed in this column are those of the author and do not necessarily reflect those of CoinDesk, Inc., CoinDesk Indices or its owners and affiliates.

Bitcoin (BTC) erased its intraday losses and rose by around 2.5% to $62,410 immediately after the US inflation report, even as the headline Consumer Price Index (CPI) hit its highest level in more than three years.

BTC/USD hourly chart. Source: TradingView

Key takeaways:

• Bitcoin rose as the latest US CPI reading matched economists’ expectations.
• BTC still faces short-term downside risks as it trades below strong resistance levels.

May US inflation matched expectations

The US CPI rose 4.2% year over year in May. On a monthly basis, headline inflation increased 0.5%, while core inflation, which excludes food and energy, rose 2.9% annually and 0.2% month over month.

US headline and core CPI. Source: Bureau of Labor Statistics/Yahoo Finance

The headline jump came largely from higher energy and gasoline prices, as renewed Middle East tensions lifted oil prices and reignited inflation concerns.

At first glance, the report looked bearish for Bitcoin. Higher inflation usually reduces the odds of Federal Reserve rate cuts, keeps Treasury yields elevated, and tightens financial conditions. That typically pressures risk assets, including crypto.

But BTC rallied because the inflation print did not come in worse than feared.

Economists had already expected headline CPI to hit 4.2%. The actual number matched that forecast, removing the risk of a hotter surprise.

Traders did not see the report as strong enough to force the Fed into a tougher stance, giving them room to buy risk assets again.

That gave Bitcoin the chance to bounce from long-term support zones, including the 200-week exponential moving average (200-week EMA, the blue line) and the psychological $60,000–$62,000 price floor area, as shown below.

BTC/USD weekly chart. Source: TradingView

Is Bitcoin undergoing a bullish reversal?

Bitcoin’s post-CPI rebound does not yet confirm a full bullish reversal.

From a technical perspective, BTC still trades below key short-term resistance levels, including the 20-period SMA, shown in green, and the 50-period SMA, shown in red, on the four-hour chart.

BTC/USD four-hour chart. Source: TradingView

BTC also appears to be consolidating inside a bear flag pattern.

This setup forms when the price rebounds inside an upward-sloping parallel channel after a sharp decline. In simple terms, the bounce may only be a pause before the next leg lower, not the start of a new uptrend.

As a rule of technical analysis, a bear flag confirms when price breaks below the flag’s lower trend line. The measured downside target equals the height of the previous sell-off, projected from the breakdown point.

That puts Bitcoin’s bearish target near $57,800 in June, down about 7.6% from current levels.

Bitcoin relief bounce scenario also in play

Conversely, a clear breakout above the resistance confluence, comprising the 20-period SMA, the 50-period SMA, and the flag’s upper trend line, would weaken the bear flag structure and invalidate the immediate downside setup.

BTC/USD four-hour chart. Source: TradingView

In that scenario, Bitcoin could extend its recovery toward the $64,000–$68,000 range in June, aligning with the 0.236 and 0.318 Fibonacci retracement lines.

Key Takeaways

• Massachusetts Senator Elizabeth Warren has formally requested the SEC postpone SpaceX’s planned June 12 public offering.
• The company aims to achieve a valuation as high as $2 trillion while securing $75 billion in capital.
• Key issues raised include Elon Musk’s concentrated voting power, dual-class stock structure, and limited shareholder protections.
• Despite political opposition, investor interest has exceeded $250 billion — surpassing the target by more than three times.
• Financial regulators are expected to proceed unless significant legal or disclosure problems emerge.

SpaceX stands on the verge of executing one of Wall Street’s most anticipated public offerings. However, a prominent lawmaker is calling for federal oversight before the launch proceeds.

Senator Elizabeth Warren of Massachusetts delivered a formal request to SEC Chairman Paul Atkins on June 10, pushing for a postponement of the SpaceX initial public offering. The aerospace company plans to price its shares Thursday evening, with public trading commencing Friday, June 12.

If successful, the offering would establish SpaceX’s market capitalization near $2 trillion while generating approximately $75 billion from new shareholders.

The Democratic senator expressed alarm that the transaction creates disproportionate risk for retail investors and pension funds, while predominantly benefiting company executives and early backers.

Corporate Structure Under the Microscope

Warren’s correspondence focuses heavily on SpaceX’s internal governance framework.

Her letter highlights Musk’s outsized voting authority, the implementation of multi-tiered share classes, forced arbitration requirements, and restrictions on stockholder proposals. These mechanisms, Warren contends, would severely constrain the influence of public market participants once shares begin trading.

The senator also challenged the company’s price tag. Her statement referenced market analysts who characterized the $2 trillion figure as “completely disconnected from reality” and “financial engineering,” particularly when measured against SpaceX’s approximately $19 billion in yearly sales.

Warren emphasized that the SEC “has an obligation to examine whether index fund managers and financial institutions participating in this offering are fulfilling their fiduciary duties to investors.”

Given SpaceX’s role as a significant Defense Department supplier, Warren additionally voiced apprehension about possible foreign capital entering the company following its market debut.

Market Enthusiasm Remains Robust

Regardless of congressional opposition, institutional interest in the offering has proven exceptional.

According to a June 9 Reuters report, SpaceX has secured commitments exceeding $250 billion from prospective investors — representing between 3.5 and 4 times the intended capital raise.

The Securities and Exchange Commission has completed its examination of SpaceX’s registration materials. Market participants are fully informed about Musk’s operational control, and the filing documents enumerate extensive risk disclosures.

Securities law specialists indicate that regulatory intervention would require evidence of material omissions, fraudulent accounting practices, or statutory breaches. An aggressive price target by itself doesn’t provide sufficient grounds for federal action.

Warren has set a June 23 deadline for the SEC’s response, requesting information about valuation methodology, corporate governance standards, protections for passive investment vehicles, arbitration policies, and allegations regarding premature information disclosure.

This represents another chapter in the ongoing tension between Warren and Musk. The pair have previously clashed over executive compensation, social media platform acquisitions, and government efficiency initiatives.

Investment commitments are scheduled to finalize Wednesday. The public offering currently remains on its original timeline.

TLDR

• Jim Cramer advised a Mad Money viewer to “buy some here” on Costco shares near $968, though he’d prefer seeing a modest pullback for better value
• Motley Fool Asset Management expanded its Costco holdings by 20.8% during Q4, purchasing 10,429 additional shares to total 60,650
• Several institutional funds expanded their Costco positions throughout Q4 and Q2, with institutions controlling 68.48% of outstanding shares
• The warehouse retailer’s most recent quarter delivered $70.53B in revenue, surpassing forecasts, though earnings per share fell short by $0.01 at $4.93
• Wall Street analysts assign an average “Moderate Buy” recommendation with a consensus price objective of $1,060.41, significantly higher than present trading levels

Costco (COST) shares began Wednesday’s session at $968.59, declining 0.6% intraday and remaining notably beneath the 52-week peak of $1,096.50.

Costco Wholesale Corporation, COST

During a recent Mad Money segment on CNBC, Jim Cramer responded to a viewer inquiry regarding the optimal timing for establishing a long-term stake. His advice was direct: purchase some shares now, while remaining hopeful for additional downside.

“I want value just like I want value at a store,” Cramer explained. He suggested the downside scenario involves the stock rallying directly to $1,025 with shareholders participating in the gains.

Cramer observed the shares currently command a 47x earnings multiple and recommended strategic patience, allowing the price to “come in a little” instead of deploying capital at a single level.

Institutional Accumulation Continues

As individual investors contemplate timing, institutional capital has been flowing into the stock. Motley Fool Asset Management expanded its stake by 20.8% throughout Q4, acquiring 10,429 shares to reach a total holding of 60,650, valued at approximately $52.3 million.

The asset manager wasn’t the only buyer. Brighton Jones increased its allocation by 12.3% during Q4. Revolve Wealth Partners grew its position by 13.1%. Additional funds elevated their holdings during Q2 as well. Collectively, institutional ownership now represents 68.48% of the company.

The stock’s 50-day moving average currently rests at $1,006.30, while the 200-day moving average stands at $965.46 — indicating shares are trading near their long-term technical support.

Quarterly Results and Dividend Increase

Costco disclosed quarterly results on May 28th. Revenue reached $70.53 billion, exceeding analyst projections of $70.12 billion. However, earnings per share of $4.93 fell one penny short of the $4.94 Wall Street consensus.

The retailer simultaneously announced a dividend increase from $1.30 to $1.47 per share quarterly, distributed on May 15th. The annualized dividend now totals $5.88, representing approximately a 0.6% yield.

E-commerce revenue surged more than 21% during the period, while gasoline volume reached all-time highs. Despite these operational highlights, shares declined roughly 5% following the announcement — suggesting the market prioritized valuation concerns over fundamental performance.

Costco also discreetly reduced prices across four Kirkland Signature items spanning food, household products, and sporting goods categories.

Wall Street sentiment remains predominantly bullish. Deutsche Bank elevated its price objective to $1,106 with a Buy recommendation. BTIG Research maintains a $1,125 target. Both Evercore and HC Wainwright continue advocating Buy ratings.

The consensus analyst price target reaches $1,060.41, supported by 22 Buy ratings, 11 Hold ratings, and a single Sell rating.

The stock trades at a PE ratio of 48.72, commanding a market capitalization of $429.55 billion. Analysts forecast full-year earnings per share of $20.38.

Key Highlights

• UBS analysts elevated CAVA’s rating from Neutral to Buy with a new price target of $90, up from $85
• Shares gained more than 7% during trading despite broader market weakness
• Company unveiled “Flavor Your Future” workforce campaign, planning to recruit 2,500+ employees for 75+ new locations in 2026
• First quarter 2026 revenue climbed 32.2% compared to the prior year; comparable restaurant sales increased 9.7%
• Chief Legal Officer Joseph Kadow purchased $70,000 in company shares on the open market

Shares of CAVA Group (CAVA) rallied more than 7% during Tuesday’s session following an analyst upgrade from UBS, which moved the Mediterranean fast-casual restaurant chain to a Buy rating from Neutral while lifting its price objective to $90 from the previous $85.

CAVA Group, Inc., CAVA

The positive movement stands in sharp contrast to broader market conditions. Pre-market indicators showed the S&P 500 declining 0.3%, the Nasdaq tumbling nearly 1%, and the Dow achieving only marginal gains. CAVA’s impressive rally was clearly company-specific rather than market-driven.

According to UBS, the primary catalyst for the upgrade centers on CAVA’s sustained outperformance in comparable store sales relative to industry competitors. The investment firm recognizes a brand generating genuine customer traffic increases during a period when numerous restaurant operators face headwinds from cautious consumer spending patterns.

The timing of this upgrade reflects accumulated positive momentum. CAVA has delivered a series of encouraging operational results in recent weeks.

During the first quarter of 2026, total revenue expanded 32.2% on a year-over-year basis. Comparable store sales registered a 9.7% increase, with guest traffic contributing 6.8 percentage points to that gain — demonstrating growth beyond simple menu price adjustments. Management subsequently elevated its full-year projections across virtually all key performance indicators.

Traffic-driven expansion of this magnitude represents precisely what the investment community seeks in the current environment.

Aggressive Growth Trajectory

The Mediterranean chain recently rolled out its “Flavor Your Future” employment initiative, setting ambitious targets of recruiting over 2,500 team members to support the opening of more than 75 restaurants throughout 2026. Company executives indicate they’re already making solid progress toward achieving these objectives.

This aggressive expansion schedule demonstrates management’s confidence in the underlying profitability and sustainability of individual restaurant locations. Increasing store count, rising customer visits, and upgraded financial guidance create a compelling growth narrative.

Supporting the positive sentiment, Chief Legal Officer Joseph John Kadow executed an open-market transaction acquiring $70,000 in CAVA stock. Insider purchases of this magnitude typically attract investor attention, and this transaction strengthened the increasingly bullish perspective surrounding the company.

Trading Below Peak Levels

Despite Tuesday’s significant gain, CAVA shares remain considerably below their recent peak valuations, which partially explains why the UBS upgrade resonates with investors. The firm’s analysis suggests meaningful appreciation potential from present price levels, with the $90 target embodying this optimistic outlook.

For the year-to-date period, CAVA stock has advanced nearly 30%, accompanied by average daily trading activity of approximately 3 million shares. The company’s market capitalization currently stands at roughly $8.88 billion.

Technical indicators for the stock show a Hold signal, suggesting the UBS fundamental upgrade contrasts with a more neutral short-term technical setup. Today’s price action indicates investors are prioritizing fundamental metrics over technical patterns.

With CAVA’s valuation at $8.88 billion, the UBS price objective of $90 implies additional upside opportunity from current trading ranges.