Why Zcash Beats Bitcoin: Cardano Creator Explains; XRP Breaks 2026 ETF Record With 16% Jump Over April; Strategy Set to Disclose $1.2 Billion BTC Acquisition – Morning Crypto Report

TL;DR

• Hoskinson Backs Zcash: Cardano founder states Zcash ideologically defeats Bitcoin by preserving original cypherpunk anonymity via zk-SNARKs.
• XRP ETF Record: U.S. spot XRP ETF inflows hit $94.71M in May, jumping 16% over April to set a new 2026 milestone.
• $1.2B Bitcoin Buy: Corporate whale Strategy acquired 15,466 BTC using STRC preferred shares, raising total reserves to 834,335 BTC.
• Crypto Market Outlook: Bitcoin tests crucial support near $78,000 following $995M in weekly ETF outflows ahead of FOMC minutes.

Cardano founder explains why Zcash ideologically surpasses Bitcoin

Amid a new wave of Wall Street interest in privacy-focused assets, Cardano founder Charles Hoskinson stated that Zcash (ZEC) is far closer to the original philosophy of digital cash than modern Bitcoin. According to Hoskinson, if coins are evaluated through the lens of the legendary cypherpunk manifestos, Zcash conceptually defeats BTC.

Hoskinson’s main argument is that Bitcoin has lost its most important original element – anonymity. Today, BTC has become too public, institutionalized and transparent. Meanwhile, thanks to its zero-knowledge proof technology (zk-SNARKs), Zcash fully conceals transaction participants and amounts. 

Hoskinson also cited writings by Hal Finney from 1993, in which he described electronic cash as a tool that returns control over personal information to individuals outside the reach of the state. Technically, Zcash implemented this concept more accurately than Bitcoin’s open blockchain, according to the Cardano founder.

Hoskinson’s attempt to place Zcash on a pedestal triggered fierce backlash from Bitcoin maximalists. Critics pointed to what they describe as Zcash’s fundamental flaw, arguing that it can never surpass Bitcoin in terms of trust because 25% of the reward from every mined block was automatically directed to the developers’ wallet. The community often refers to this as a “hidden premine”, contrasting it with Bitcoin’s launch.

They also called Hoskinson’s arguments a marketing move, emphasizing that Hal Finney died long before Zcash was created, never supported it, and that his family publicly identifies as Bitcoin supporters.

This debate is unfolding at a time when Zcash is experiencing an institutional renaissance. Major players, including the Winklevoss twins and Barry Silbert, are once again accumulating the asset, while Grayscale is exploring the conversion of its Zcash Trust into a full-fledged spot ETF.

Spot US XRP ETF inflows jumped 16% vs April, setting a new 2026 record

Institutional investors continue to increase their exposure to XRP. According to the latest data from SoSoValue, net inflows into U.S. spot XRP ETFs reached $94.71 million in incomplete May trading, surpassing April’s total result of $81.59 million by 16% and marking a new monthly record for 2026.

Investor interest was distributed unevenly across the market, with funds from Bitwise, Canary and Franklin emerging as the primary beneficiaries of May inflows. Against this backdrop, the combined net assets under management (AUM) of U.S. XRP ETFs approached the $1.18 billion mark.

Alongside institutional inflows, activity on the XRP Ledger (XRPL) also accelerated. According to analysts at Santiment, daily XRPL activity surged to 48,453 active addresses, the strongest result since late March. In addition, the network added 3,317 new wallets in 24 hours, while the total number of activated accounts reached 7,856,080, bringing the blockchain closer to the historic 8 million milestone.

The key feature of the current record is the sharp divergence between retail speculation and long-term capital. While the XRP price tested a local two-month high above $1.54 before returning to its familiar May consolidation corridor between $1.30 and $1.50, major players systematically absorbed supply through regulated funds.

Technical experts note that current ETF accumulation is building a strong foundation beneath a multi-year resistance level, and if this barrier falls and the breakout is confirmed, long-term Fibonacci targets open the path toward the psychological $8 level at the peak of the current market cycle.

Strategy adds another 15,466 BTC to its portfolio

Corporate Bitcoin whale Strategy continues aggressively accumulating BTC using the unique mechanics of its Stretch (STRC) preferred shares. According to final data from strc.live, between May 11 and May 15, Strategy added another 15,466.30 BTC to its balance sheet, equivalent to more than $1.2 billion. 

Purchases were made in the $79,000-$82,000 price corridor, and if the figure is confirmed, the company’s total reserves will rise to 834,335 BTC.

For comparison, one week earlier the company announced the purchase of only 535 BTC. The last time Strategy used the STRC parity mechanism near the $100 level in mid-April, the company managed to acquire 34,164 BTC while Bitcoin traded in the $70,000-$77,000 range.

Nevertheless, the model continues to trigger fierce debate on Wall Street. Well-known critic Peter Schiff has already described the STRC structure as a “classic centralized financial pyramid”. According to Schiff, investors are making a mistake by exiting Bitcoin itself and redirecting liquidity into Strategy shares in pursuit of double-digit yields.

Crypto market outlook: Bitcoin and the Warsh Factor 

Bitcoin is holding its ground amid Kevin Warsh’s arrival at the Federal Reserve and record ETF outflows, while investors await key inflation tests. 

Key checkpoints:

• Bitcoin price outlook: BTC is testing support near $78,000 after weekly ETF outflows reached $995 million. Strong buying interest is concentrated around $77,300, though a breakdown would open the door to a deeper correction.
• Macroeconomic triggers: The main focus this week is the FOMC minutes on May 20 at 22:00, which may reveal the Fed’s plans regarding interest rates. Markets will then monitor building permits data on May 21 at 16:30, while the main volatility event is expected on May 28 at 16:30 with the release of Core PCE data (previous: 0.3%) and U.S. GDP figures (previous: 0.5%).
• The Kevin Warsh factor: The new Federal Reserve chairman has officially replaced Jerome Powell. Market consensus views Warsh as supportive of crypto innovation, though inflation at 3.8% and pressure from the White House demanding lower rates are putting his independence under scrutiny.
• CLARITY Act breakthrough: The digital asset market structure bill passed the U.S. Senate Banking Committee by a 15-9 vote and is now awaiting a full Senate vote. The legislation lays the groundwork for legal institutional custody, while U.S. leadership is demanding a finalized bill ready for signature before July 4.
• Japan opens the gates: Financial giants SBI Securities and Rakuten Securities are preparing to launch crypto investment trusts (ETF-like products) by 2027.

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