Latest news with #ethereum
Yahoo
a day ago
- Business
- Yahoo
Crypto Currents: Trump signs executive order to allow crypto in 401(k) plans
As bitcoin, ethereum and other cryptocurrencies see major legal, institutional, and technological developments, the financial landscape continues to adapt. Stay up on the crypto news that matters with the 'Crypto Currents' weekly from The Fly. Also, join us for your essential daily recap, every day at 2 PM ET on FlyCast radio. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. TRUMP SIGNS ORDER TO ALLOW CRYPTO IN 401K PLANS: President Donald Trump signed (CLSK) reported third quarter earnings per share of 90c on a revenue of $198.6M, which compared to a loss per share of ($1.03) last year and analyst revenue consensus of $200.34M. 'This was the most successful quarter in CleanSpark's history, and it reflects the strength of our strategy, the discipline of our execution, and the tireless commitment of our team,' said CEO Zach Bradford. 'We reached 50 EH/s of operational hashrate in June, becoming the first public company to do so exclusively with American infrastructure, while achieving record basic EPS of 90c and nearly $200M in revenue. We also grew our bitcoin treasury to over $1B in value, all without raising capital through equity offerings since November 2024. Having achieved 5.8% of global hashrate under management and over one gigawatt of power contracted, CleanSpark is proving that our vertically integrated model is built not just for growth, but for leadership. We believe the future of Bitcoin will be defined by those who build with purpose, and CleanSpark is setting the standard'. On Friday, B. Riley raised the firm's price target on CleanSpark to $17 from $16 and kept a Buy rating on the shares. The firm updated the company's model post the fiscal Q3 report. On Tuesday, Galaxy Digital (GLXY) reported Q2 EPS of 8c on a revenue of $9.06M, which compared to analyst estimates of 23c and $19.83M, respectively. The company said, 'July marked the strongest monthly financial performance for our Digital Assets operating business in the firm's history, with record results in Global Markets and steady progress in Asset Management & Infrastructure Solutions.' Following the report, BTIG raised the firm's price target on Galaxy Digital to $35 from $26.50 and kept a Buy rating on the shares. Galaxy Digital's Q2 operating income was significantly higher than Q1 as BTC rallied 40% since the end of Q1, the analyst said. Galaxy's current BTC balance makes them the eighth largest BTC holder among U.S. public companies and positions the company as a diversified play on the secular growth in digital assets, the firm said. Meanwhile, Rosenblatt lowered the firm's price target on Galaxy Digital to $35 from $36 and kept a Buy rating on the shares. The firm said that while the company reported weaker than expected Q2 results, its remains bullish on the shares. clear progress and encouraging trends. Although the company's trading volumes and blockchain activity fell sharply last quarter, they are off to a record start in Q3, the analyst said. Benchmark raised the firm's price target on Galaxy Digital to $40 from $38 and kept a Buy rating on the shares. The Q2 report, Galaxy Digital's first quarterly print since redomiciling in the U.S. and listing its shares on Nasdaq, 'offered a clear signal that the company is entering a new era,' the analyst said. The firm believes the downdraft post-earnings was a 'sell-the-news' reaction after shares had almost tripled since early April, but added that the report 'reflected the company's accelerated evolution as a hybrid digital asset/AI data center platform.' Canaccord also raised the firm's price target on Galaxy Digital to $34 from $33 and kept a Buy rating on the shares. The firm said Galaxy remains a solid portfolio play across two of the most exciting growth sectors out there, crypto-related financial services combined with what is evolving as one of the best data center portfolios out there, focused on AI hosting. Additionally on Thursday, DDC Enterprise (DDC) a collaboration with Galaxy. The partnership with Galaxy will provide DDC with seamless trading access and a secure, regulated platform to manage DDC's corporate bitcoin holdings. Also on Thursday, Mill City Ventures III (MCVT) announced a strategic partnership with Galaxy. Galaxy Asset Management will serve as the asset manager for the $450M SUI treasury strategy at Mill City. On Wednesday, Hut 8 (HUT) reported Q2 EPS of $1.18 on revenue of $41.3M, which compared to analyst views of a loss per share of (14c) and revenue of $49.83M. 'In Q2, we delivered strong revenue and margin performance while advancing a fundamental shift in our asset commercialization profile,' said CEO Asher Genoot. 'Strategic wins across our Power and Digital Infrastructure segments increased the share of energy capacity under management commercialized under executed agreements with terms of one year or longer to nearly 90% at quarter-end, up from less than 30% a year ago, driving a meaningful shift from merchant exposure to long-term, contracted fees. These milestones build on the restructuring of our mining business with the launch of American Bitcoin. In addition to completing an oversubscribed private placement and advancing toward a Nasdaq listing, American Bitcoin is now a dedicated anchor tenant for our Power and Digital Infrastructure segments…As we work to commercialize AI data center opportunities, we continue to apply the power-first, innovation-driven approach that has long defined our strategy and enabled us to build such partnerships. Initially energized during the quarter, Vega is a clear expression of that strategy: designed in-house and increasingly viewed by prospective partners as a prototype for next-generation AI infrastructure.' Following the report, B. Riley raised the firm's price target on Hut 8 to $26 from $25 and kept a Buy rating on the shares. The company reported a soft Q2 but has a strong development pipeline, the analyst said. Riley cited Hut's expanded power pipeline for the target increase. CORPAY, CIRCLE TO COLLABORATE ON STABLECOIN PAYMENTS: Corpay (CPAY) announced Thursday a new (CRCL), to expand stablecoin access across global payment channels. They will work together to embed USDC across Corpay's cross-border pay-in and pay-out rails allowing companies to access blockchain's 24/7 settlement and programmability. Corpay will integrate Circle Mint and related APIs, enabling clients to access and manage USDC directly through Corpay's platform. Clients will be able to fund Corpay-branded digital wallets, powered by Circle Wallets, instantly, enabling onchain settlement and seamless currency conversion alongside traditional fiat balances. 'Working with Corpay represents the next evolution of how businesses move money globally, faster, more transparently, and with the power of blockchain infrastructure,' said Kash Razzaghi, Chief Business Officer at Circle. 'By embedding USDC into Corpay's robust network, we're delivering enterprise-grade stablecoin utility across card payments and cross-border FX, all while upholding the compliance and reliability standards that global businesses demand.' COINBASE DOWNGRADE: Compass Point downgraded Coinbase (COIN) on Sunday to Sell from Neutral with a price target of $248, down from $330. The firm remains constructive on the current crypto cycle but expects a 'choppy' Q3 with weak August and September seasonality along with waning retail interest in crypto treasury stocks. In addition, increasing stablecoin competition will weigh on both Coinbase and Circle Internet's valuations in the second half of 2025, the analyst said, Compass Point believes Coinbase's Q2 and Q3 trends show weakening earnings despite the ongoing crypto bull market. The firm sees limited valuation support for Coinbase if crypto markets sell off further. Additionally on Sunday, BofA lowered the firm's price target on Coinbase to $369 from $383 and kept a Neutral rating on the shares. The firm updated models in the brokers, asset managers and exchanges group to reflect the Q2 reports. It reduced estimates for Coinbase following the earnings miss. Meanwhile on Monday, Keefe Bruyette lowered the firm's price target on Coinbase to $335 from $355 and kept a Market Perform rating on the shares. Coinbase also announced on Tuesday that Canadian users can now select PayPal (PYPL) as a payment option, making it easier to buy and sell cryptocurrencies. The company said, 'With nearly 10 million active PayPal accounts across the country, Canadians have long trusted PayPal for their financial needs – whether its shopping, running their business, sending money or managing their funds online. We're now adding another layer of convenience for Canadian crypto holders by integrating PayPal with Coinbase, allowing users to buy and sell using PayPal. This collaboration supports our global goal of onboarding one billion people to the cryptoeconomy and marks a meaningful step in our continued expansion across priority markets like Canada. The timing reflects growing momentum, with more than five million Canadians owning crypto.' MICROSTRATEGY BUYS MORE BITCOIN: In a Monday regulatory filing, Strategy (MSTR) disclosed that the company acquired 21,021 bitcoin for an aggregate purchase price of $2.46B during the period of July 28 to August 3. The company's aggregate bitcoin holdings amount to 628,791 as of August 3, the filing stated. Additionally on Monday, Clear Street raised the firm's price target on Strategy to $537 from $508 and kept a Buy rating on the shares. The firm's 'more constructive view' reflects stronger bitcoin yield expectations as well as expectations for continued 'robust' demand for Strategy securities offerings, the analyst said. OTHER CRYPTO NEWS: Riot Platforms (RIOT) initiated with a Neutral at Citi, upgraded to Buy from Hold at JonesResearch Bakkt (BKKT) to acquire 30% of MarushoHotta Semler Scientific (SMLR) reports Q2 EPS $5.04 vs. $0 last year TeraWulf (WULF) reports Q2 EPS (5c), consensus (7c) Block (XYZ) reports Q2 bitcoin revenue $2.144B CRYPTO STOCK PLAYS: Publicly traded companies in the space include Bit Digital (BTBT), Coinbase, Core Scientific (CORZ), Greenidge Generation (GREE), Mara Holdings (MARA), Strategy, Riot Platforms and TeraWulf. PRICE ACTION: As time of writing, bitcoin rose roughly 1% this week to $116,909 in U.S. dollars, according to CoinDesk. Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See Insiders' Hot Stocks on TipRanks >> Read More on BTBT: Disclaimer & DisclosureReport an Issue Trump signs order to allow 401(k) investors to access alternative assets Mixed options sentiment in Bit Digital with shares down 15.7% WhiteFiber opens at $25, IPO priced at $17 per share WhiteFiber indicated to open at $25.50, IPO priced at $17 per share 3 Best Crypto Stocks to Buy with Over 100% Upside, According to Analysts Sign in to access your portfolio
Forbes
a day ago
- Business
- Forbes
Trump Just Dropped A $12.2 Trillion Crypto Price Bombshell—Sending Bitcoin, Ethereum And XRP Sharply Higher
Bitcoin has seen its price rocket higher this year, topping an explosive 2024 that saw Wall Street charge into crypto—though some are predicting the bitcoin price bull run could be just getting started. Sign up now for CryptoCodex—A free newsletter for the crypto-curious The bitcoin price has doubled since this time last year, with the crypto market looking 'eerily similar' to the situation last summer that catapulted bitcoin and other major cryptocurrencies including ethereum and XRP higher. Now, as JPMorgan suddenly flips on what could be a bitcoin price game-changer, U.S. president Donald Trump has signed an executive order that will make it easier for bitcoin, crypto and other alternative assets like private equity and real estate to be included in 401(k) retirement accounts—which hold a combined $12.2 trillion. Sign up now for the free CryptoCodex—A daily five-minute newsletter for traders, investors and the crypto-curious that will get you up to date and keep you ahead of the bitcoin and crypto market bull run "Alternative assets, such as private equity, real estate, and digital assets, offer competitive returns and diversification benefits," a White House fact sheet read. Trump signing the long-rumored order has boosted the bitcoin price, pushing it toward $120,000 per bitcoin for the first time since last month, while ethereum has surged 21% this week, breaking back above $4,000 per ether for the first time since December last year. XRP, one of the best performing major cryptocurrencies over the last year with a near 500% gain, has climbed 12% this week, helping the combined crypto market top $4 trillion. 'This could mark a major milestone in bringing digital assets into the mainstream financial infrastructure, opening the door to long-term adoption by everyday Americans,' Antony Agoshkov, cofounder of Marvel Capital, said in emailed comments. The order gives the Department of Labor 180 days to review rules with any changes not expected to be seen immediately in bitcoin and crypto markets. 'The Trump executive order opening the door to the inclusion of crypto and private assets in 401(k) retirement plans opens the way to greater choice and gives investors more options," Katalin Tischhauser, head of research at Sygnum Bank, said via email. 'It is another bullish driver for the crypto market as the relatively small market capitalisation means fund flows can have a significant impact on price." In May, the Department of Labor scrapped guidance from 2022 that urged "extreme care" before any investment companies added crypto to retirement account options. 'The announcement has fueled optimism around future institutional inflows, especially given the size of the U.S. defined contribution market, which totals around $10 trillion," Joel Kruger, market strategist at LMAX Group, said in emailed comments. "A more favorable regulatory tone is taking shape in Washington. The Trump executive order follows a series of signals from lawmakers aimed at establishing clearer guardrails around digital asset classification and access.' While there is currently no prohibition on retirement plan operators adding these types of investments, the order is expected to result in a more diverse range of options for people. 'This order isn't about the government saying 'crypto belongs in 401(k)s.' It's about the government getting out of the way and letting people make their own decisions,' Matt Hougan, chief investment officer at Bitwise, said in an emailed note. Sign up now for CryptoCodex—A free newsletter for the crypto-curious The latest bullish signal out of the Trump White House—following Trump dismantling Biden-era crypto restrictions on Wall Street, Trump ordering the creation of a bitcoin strategic reserve and crypto stockpile that's expected to include ethereum and XRP among others, and the passage of the Genius Act stablecoin bill—are helping to 'shift sentiment' among traders, but have yet to translate into meaningful price moves. 'Trump's latest moves—from expanding 401(k) access to crypto, to pushing gold into the spotlight—could shift sentiment, but so far the response has been muted,' 10x Research founder Markus Thielen said in an emailed note. 'Ethereum, meanwhile, is flashing record address activity and surging prices, yet much of the move appears narrative-driven rather than grounded in fundamentals. Both assets are now pressing against key technical boundaries where momentum could either accelerate or stall sharply." Bitcoin and crypto market watchers remain bullish for the rest of 2025, however, some are warning the bitcoin price and crypto market could crash next year. 'My view is that once we complete the bull cycle at circa $140,000-$145,000, we will see a corrective bear market in 2026, but I am not looking for a deep correct, but likely a move to $90,000 to $100,000,' John Glover, chief investment officer of Ledn, said in emailed comments, adding: 'I know this goes against the popular view that we are going to hit the extreme prognosticator's views of $250,000, $500,000, or even $1 million in 2025 or 2026." Meanwhile, Trump also signed a separate executive order targeting the 'debanking' of people and businesses on political grounds, which will 'ensure that Federal regulators do not promote policies and practices that allow financial institutions to deny or restrict services based on political beliefs, religious beliefs or lawful business activities, ensuring fair access to banking for all Americans.' The "digital assets industry has also been the target of unfair debanking initiatives," according to a White House fact sheet, with Caitlin Long, the chief executive of crypto-focused Custodia Bank, cheering the addition of the Small Business Administration as an overseer of the federal banking regulators.
Yahoo
02-08-2025
- Business
- Yahoo
Asia Morning Briefing: SEC's In-Kind BTC, ETH ETF Redemption Shift Happened Years Ago in Hong Kong
Good Morning, Asia. Here's what's making news in the markets: Welcome to Asia Morning Briefing, a daily summary of top stories during U.S. hours and an overview of market moves and analysis. For a detailed overview of U.S. markets, see CoinDesk's Crypto Daybook Wednesday in the U.S., the Securities and Exchange Commission announced that investors are now allowed to do in-kind redemptions for bitcoin and ether exchange-traded funds (ETFs). The decision lets institutional traders create and redeem ETF shares directly in BTC or ETH, improving efficiency by avoiding fiat conversions. But in Hong Kong, this isn't anything new. In late 2023, during the early days of the regulatory process to bring crypto ETFs to the market (they launched in April 2024), the Securities and Futures Commission – the city's markets regulator – mentioned in a circular that in-kind redemptions would be allowed. Part of the reason why they were allowed was a technical one: ETF issuers were required to partner with licensed local crypto exchanges and use custody solutions. This wasn't the case in Ontario, Canada, which had crypto ETFs first, nor the U.S. In Hong Kong there wasn't the same debate about the status of Ether as a security as there was in the U.S. In contrast, U.S. regulators wrestled with concerns over custody, anti-money laundering risks, and potential market manipulation. While the SEC never explicitly banned in-kind redemptions, ETF sponsors were required to remove them from early filings. The Commission favored a cash-only approach as a cautious first step, citing untested operational processes and uncertainty over how to securely settle large crypto transfers. That stance wasn't without internal pushback. SEC Commissioner Mark Uyeda publicly criticized the agency's approach during the January 2024 approval of spot bitcoin ETFs. He pointed out that commodity-based ETFs, like those backed by gold, routinely use in-kind redemptions and questioned why crypto was being treated differently. Uyeda argued that the SEC failed to explain why it considered cash-only redemptions 'non-novel,' despite the clear deviation from standard ETF practice, and warned that the lack of reasoning set a troubling precedent. The episode highlights how Hong Kong's regulator moved with greater clarity and cohesion from the start as it brought these products to market. By enabling in-kind redemptions early on, and pairing them with strict licensing and custody requirements, the SFC avoided the internal contradictions and policy drift that defined the U.S. rollout. However, there's going to be one side effect from all of this: tracking flows. Crypto data aggregator SoSoValue, which provides daily flow updates for crypto ETFs, warns that "subscriptions of physical bitcoin do not generate cash inflows for the [ETFs], so they cannot be simply counted in daily net inflow statistics." They've tried to create methods and models to work around this, but say they have been unsuccessful so far. So unless ETF issuers in the U.S. publish daily flow in cash and crypto, tracking this metric is going to be an issue. And it's an important one to track, as it shows investor sentiment for the asset class. Market Movements BTC: Bitcoin is trading above $117,500 after a modest rebound, but momentum remains weak as ETF outflows persist, whales take profit near $118K, and macro headwinds, including a firm dollar and hawkish Fed expectations, continue to limit upside. ETH: ETH is trading above $3,700. "Ethereum has proven in parallel with BTC since its inception to be the second most battle-tested network, and very likely institutions now see Ether the token as a formidable asymmetric bet alongside bitcoin," said March Zheng, General Partner of Bizantine Capital, in a note to CoinDesk. Gold: Gold rebounded to $3,334 on Tuesday, snapping a four-day losing streak ahead of the Fed meeting, as traders priced in steady rates despite weak U.S. job data Nikkei 225: Asia-Pacific markets opened mixed as U.S. Commerce Secretary Howard Lutnick confirmed Trump's Friday tariff deadline will proceed as planned, with Japan's Nikkei 225 flat at the open. S&P 500: U.S. stocks closed lower Tuesday, with the S&P 500 ending a six-day record streak, as investors weighed earnings, economic data, and the upcoming Fed rate decision. Elsewhere in Crypto: Tornado Cash Developer Roman Storm Will Not Take the Stand, Lawyers Say (CoinDesk) Cornell Tech Professor Warns AI Agents And Crypto Spell Trouble (Bloomberg) Sen. Lummis introduces bill requiring Fannie Mae and Freddie Mac to consider crypto as an asset for mortgages (The Block)
Irish Times
02-08-2025
- Business
- Irish Times
Five things investors should ponder on crypto
A decade ago half a dozen mavericks assembled in a Swiss house to launch ethereum – a piece of the crypto ecosystem that acts as a distributed computing platform, using the ether token. It initially looked likely to fail: the founding tribe imploded after bitter internal fights; ethereum suffered a large cyber hack; scandals erupted and, like bitcoin, ether's price became crazily volatile, surging from nothing to $5,000, before collapsing. But this week something striking occurred: just as the White House was issuing a report about the Golden Age of Crypto, the Nasdaq exchange celebrated ethereum's 10th birthday. 'Ethereum has demonstrated itself ... as the definition of antifragile,' enthused Joe Lubin, one former inhabitant of that founding house, who presents the platform as 'a reliable trust layer for our fast-growing digital world'. Cynics will undoubtedly wince in horror, while enthusiasts will cheer. No wonder: crypto is arguably the single most divisive issue in finance today. [ Crypto investors need more detailed warnings about risks involved - Central Bank Opens in new window ] However, I would suggest that this anniversary should spark a more realistic – and subtle – judgment. For the past decade has revealed at least five key points about crypto that investors should ponder. First, and most obviously, digital assets are not homogenous (even if detractors hate them all). Bitcoin is a one-dimensional phenomenon that fans liken to 'digital gold', while ethereum is a multifaceted infrastructure. Memecoins (like $TRUMP) only float on crazy hype, but stablecoins are supposed to be backed by assets, like treasuries. This matters. Second, we need to move beyond black-and-white thinking with crypto. The evangelists who declared a decade ago that distributed finance would transform the world were wrong – thus far digital assets are still too clunky, costly and energy-guzzling to displace most mainstream payment options, and too volatile to be a reliable store of value. Criminality has been rife. Just think of the saga of Sam Bankman-Fried, or regulatory censure of the tether stablecoin. But doomsayers who predicted crypto's demise were equally wrong. Digital asset prices have just soared (again), pushing ethereum and bitcoin's market capitalisation up to $455 billion (€398.6 billion) and $2.3 trillion respectively. And the $270 billion-odd worth of stablecoins in circulation are supported by as many transactions as the Visa credit card network in the last year, as Glenn Hutchins, a long-time tech investor, tells me. Why? Greed (or speculation) is one factor. But crypto is founded on an interesting innovation (blockchain) that can sometimes be useful (say, for some cross-border payments). Moreover, some key players and regulators are raising standards in response to past scandals and networks like ethereum are slashing energy usage. [ A lesson from The Godfather as Wall Street backs crypto assets it once dismissed as a 'fraud' Opens in new window ] Third, mainstream finance is moving in. This is ironic, given that early crypto evangelists promised that distributed finance would depose incumbents. But it is driving the current boom. Consider the fact that a top BlackRock executive has just joined an ethereum investment group; or that traditional asset managers like Fidelity, BlackRock and Vanguard are launching crypto funds; or how mainstream investors are increasingly using crypto as a diversification play, while banks such as JPMorgan are running their own blockchains and launching stablecoins. Fourth, the geopolitics of crypto are shifting – fast. In the past decade, most innovation occurred outside the United States, in places such as Hong Kong. But this week Paul Atkins, chairman of the Securities and Exchange Commission, said he wanted to pull it onshore. Why? One reason is that the Trump family itself is invested in crypto. Another is grubby politics: crypto groups were such big Trump donors in 2024 that luminaries tell me they won the election for him. But geofinance matters too. Treasury secretary Scott Bessent hopes that dollar-based stablecoins will create a new source of demand for treasuries, and promote more dollar usage around the world. Consider this a new policy twist on Bretton Woods in the Silicon Valley age. Finally, crypto's second-order effects could turn out to be even more striking than the digital assets themselves. For what the innovation does is enable us to imagine alternatives to the financial and geopolitical status quo – for instance, by asking if we need to rely on the Swift payment system, or dollar dominance. Don't get me wrong: by making these five points, I am not downplaying the risks. The Trump administration's conflicts of interest with crypto are shameful. The potential for consumer harm is real. There are financial stability risks due to crypto's growing links with mainstream finance, and the use of treasuries to back stablecoins. Criminality and grift exists. But it is possible to worry about these risks – and want better regulation – but at the same time to recognise that the underlying technology can be useful as a geopolitical and financial diversification tool. For these reasons, ethereum's 'birthday' should prompt enthusiasts and doomsayers alike to realise that neither of them is entirely right. Life is rarely black and white – in finance or anywhere else. That will not change even if (or when) ethereum turns 20. – Copyright The Financial Times Limited 2025
Yahoo
31-07-2025
- Business
- Yahoo
Asia Morning Briefing: SEC's In-Kind BTC, ETH ETF Redemption Shift Happened Years Ago in Hong Kong
Good Morning, Asia. Here's what's making news in the markets: Welcome to Asia Morning Briefing, a daily summary of top stories during U.S. hours and an overview of market moves and analysis. For a detailed overview of U.S. markets, see CoinDesk's Crypto Daybook Wednesday in the U.S., the Securities and Exchange Commission announced that investors are now allowed to do in-kind redemptions for bitcoin and ether exchange-traded funds (ETFs). Invest in Gold Priority Gold: Up to $15k in Free Silver + Zero Account Fees on Qualifying Purchase American Hartford Gold: #1 Precious Metals Dealer in the Nation Thor Metals Group: Best Overall Gold IRA The decision lets institutional traders create and redeem ETF shares directly in BTC or ETH, improving efficiency by avoiding fiat conversions. But in Hong Kong, this isn't anything new. In late 2023, during the early days of the regulatory process to bring crypto ETFs to the market (they launched in April 2024), the Securities and Futures Commission – the city's markets regulator – mentioned in a circular that in-kind redemptions would be allowed. Part of the reason why they were allowed was a technical one: ETF issuers were required to partner with licensed local crypto exchanges and use custody solutions. This wasn't the case in Ontario, Canada, which had crypto ETFs first, nor the U.S. In Hong Kong there wasn't the same debate about the status of Ether as a security as there was in the U.S. In contrast, U.S. regulators wrestled with concerns over custody, anti-money laundering risks, and potential market manipulation. While the SEC never explicitly banned in-kind redemptions, ETF sponsors were required to remove them from early filings. The Commission favored a cash-only approach as a cautious first step, citing untested operational processes and uncertainty over how to securely settle large crypto transfers. That stance wasn't without internal pushback. SEC Commissioner Mark Uyeda publicly criticized the agency's approach during the January 2024 approval of spot bitcoin ETFs. He pointed out that commodity-based ETFs, like those backed by gold, routinely use in-kind redemptions and questioned why crypto was being treated differently. Uyeda argued that the SEC failed to explain why it considered cash-only redemptions 'non-novel,' despite the clear deviation from standard ETF practice, and warned that the lack of reasoning set a troubling precedent. The episode highlights how Hong Kong's regulator moved with greater clarity and cohesion from the start as it brought these products to market. By enabling in-kind redemptions early on, and pairing them with strict licensing and custody requirements, the SFC avoided the internal contradictions and policy drift that defined the U.S. rollout. However, there's going to be one side effect from all of this: tracking flows. Crypto data aggregator SoSoValue, which provides daily flow updates for crypto ETFs, warns that "subscriptions of physical bitcoin do not generate cash inflows for the [ETFs], so they cannot be simply counted in daily net inflow statistics." They've tried to create methods and models to work around this, but say they have been unsuccessful so far. So unless ETF issuers in the U.S. publish daily flow in cash and crypto, tracking this metric is going to be an issue. And it's an important one to track, as it shows investor sentiment for the asset class. Market Movements BTC: Bitcoin is trading above $117,500 after a modest rebound, but momentum remains weak as ETF outflows persist, whales take profit near $118K, and macro headwinds, including a firm dollar and hawkish Fed expectations, continue to limit upside. ETH: ETH is trading above $3,700. "Ethereum has proven in parallel with BTC since its inception to be the second most battle-tested network, and very likely institutions now see Ether the token as a formidable asymmetric bet alongside bitcoin," said March Zheng, General Partner of Bizantine Capital, in a note to CoinDesk. Gold: Gold rebounded to $3,334 on Tuesday, snapping a four-day losing streak ahead of the Fed meeting, as traders priced in steady rates despite weak U.S. job data Nikkei 225: Asia-Pacific markets opened mixed as U.S. Commerce Secretary Howard Lutnick confirmed Trump's Friday tariff deadline will proceed as planned, with Japan's Nikkei 225 flat at the open. S&P 500: U.S. stocks closed lower Tuesday, with the S&P 500 ending a six-day record streak, as investors weighed earnings, economic data, and the upcoming Fed rate decision. Elsewhere in Crypto: Tornado Cash Developer Roman Storm Will Not Take the Stand, Lawyers Say (CoinDesk) Cornell Tech Professor Warns AI Agents And Crypto Spell Trouble (Bloomberg) Sen. Lummis introduces bill requiring Fannie Mae and Freddie Mac to consider crypto as an asset for mortgages (The Block) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
