In a week marked by significant developments in the cryptocurrency sector, the U.S. Securities and Exchange Commission (SEC) made headlines by issuing an apology, Bitcoin ETFs rebounded, and major companies expanded their crypto investments.
SEC Amends Binance Lawsuit Complaint
The U.S. SEC apologized for causing confusion over its terminology in the ongoing Binance lawsuit. The regulatory agency retracted its use of the term “crypto asset securities” in the case, a classification that had caused uncertainty among industry participants. This move came shortly after the SEC reached an agreement with eToro, a trading platform, to limit its crypto offerings to Bitcoin (BTC), Bitcoin Cash (BCH), and Ethereum (ETH). The platform also agreed to pay a $1.5 million fine.
A recent report revealed that fines imposed on crypto companies by the SEC skyrocketed by over 3,000% in the past year. In 2024 alone, the regulator collected $4.68 billion in fines, a figure that represents 68% of the total fines levied on the crypto industry since the SEC’s inception.
Bitcoin ETFs Regain Momentum
Bitcoin exchange-traded funds (ETFs) made a notable recovery after weeks of losses. Spot Bitcoin ETFs saw net inflows of $28.6 million on September 9, breaking an eight-day streak of net outflows. This upward trend continued the next day with a four-fold increase in inflows, totaling $117 million. While there were intraday outflows of $43.9 million on September 11, the funds rebounded the following day. The cumulative net inflows reached $403.9 million, making it a promising week for Bitcoin ETFs.
MicroStrategy’s Billion-Dollar Bitcoin Purchase
MicroStrategy, the business intelligence firm known for its large Bitcoin investments, expanded its holdings last week. Company Chairman Michael Saylor announced the acquisition of 18,300 BTC for $1.11 billion. This purchase brings the firm’s total Bitcoin holdings to 244,800 BTC, acquired for approximately $9.45 billion. With the current value of these assets standing at $14.725 billion, MicroStrategy has gained a staggering $5.27 billion on its investment.
XRP Trust by Grayscale
Grayscale Investments made waves in the market by launching its Ripple (XRP) Trust. The fund aims to provide accredited investors exposure to XRP, marking the first phase toward developing a full-fledged ETF. This move follows Grayscale’s similar approach in the creation of its Bitcoin and Ethereum ETFs, indicating that Ripple may soon join these products as a major crypto investment vehicle.
Harris Gains on Trump Amid Crypto Discussions
In the political sphere, Vice President Kamala Harris gained ground on former President Donald Trump in the crypto betting markets following a recent debate. Crypto bettors on Polymarket placed Harris’ odds at 51%, slightly ahead of Trump’s 49%. The political betting momentum shifted after Trump announced plans to launch World Liberty Financial, a crypto project set to be unveiled on September 16. Adam O’Neill, Chief Marketing Officer at Bitrue, expressed skepticism about Trump’s move, saying, “It feels more like an attempt to cash in on hype rather than a serious venture into the crypto world.”
Venture Capital Continues Crypto Investment Surge
Meanwhile, venture capital continued to pour into the crypto sector. Huma Finance, a platform for tokenized real-world assets, raised $38 million in a funding round led by Distributed Global. Other prominent participants included Hashkey Capital and the Stellar Foundation. London-based decentralized energy developer Fuse also raised $12 million to support its renewable energy project, while AI infrastructure company PIN AI secured $10 million in pre-seed funding.
As the crypto space continues to evolve, these developments mark a significant shift in both regulatory and investment trends, reflecting the sector’s resilience and growing institutional interest.
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