Taiwan has taken a major step forward in overseeing its digital asset sector by enacting comprehensive new regulations for cryptocurrency operations.
On Tuesday, lawmakers in the Legislative Yuan approved the Virtual Asset Service Act during its third reading, forwarding it to President Lai Ching-te for formal signing, which is anticipated within the next ten days.
Once signed, the Executive Yuan will set the official start date for the rules.
The legislation requires all virtual asset service providers, including cryptocurrency exchanges and platforms, to secure explicit licensing from the Financial Supervisory Commission (FSC) before they can legally operate in the country.
It also brings in tougher standards around cybersecurity protections, keeping customer funds separate from company assets, and strengthening internal governance and risk management.
Platforms that are already registered for anti-money laundering compliance will receive a 12-month grace period to submit license applications and up to 21 months in total to obtain full FSC approval and any other required permits. Until now, crypto businesses operating in Taiwan only needed to register for anti-money laundering compliance.
Strategy (MSTR) stock is set to end the month around 41% lower, its worst monthly performance since 2022, with one trading day remaining.
MSTR is on course to mark its 11th negative month out of the last 12. Shares traded as low as nearly $80 on Friday before rallying more than 12% on Monday following the company’s announcement of its new capital management framework.
The stock reached an all time high of $540 per share in November 2024, before a sustained decline began the following July, coinciding with the debut of its perpetual preferred security, STRC.
STRC sits above the common stock in the capital structure and so offered investors a lower volatility alternative to owning MSTR shares. At the same time, the need for continued issuance of common stock to help fund STRC’s dividend obligations increased dilution concerns, contributing to the stock’s prolonged underperformance.
Since STRC’s IPO, bitcoin BTC$59,260.51 has fallen by almost 50%, while MSTR has declined by roughly 77%.
Meanwhile, bitcoin is on track to post its third consecutive negative quarter and has fallen 20% in June.
Bitcoin BTC$59,003.62 fell 1.5% on Tuesday after failing to hold above $60,000 on Monday. It now trades at $59,250, looking set to challenge the weekend lows of $58,800. Ether (ETH) is down by 1.73% since midnight UTC, trading at $1,580 after failing to break through $1,640.
Both assets are now testing critical multiyear support levels. Ether has bounced from this level twice before, in April 2025 and October 2023, while bitcoin is trading around its lowest point since late 2024. A failure to hold would leave both tokens without an obvious floor.
The altcoin market saw exaggerated downside on Tuesday, with DeFi tokens ethena (ENA), jupiter (JUP) and ether.fi (ETHFI) all falling between 3.3% and 7.5% as risk appetite continues to wane.
The weakness stands in contrast to traditional markets, where U.S. equities have been steady since midnight. The S&P 500 and Nasdaq 100 futures posted gains of 0.03%, while the Dollar Index (DXY) added 0.25%.
Derivatives positioning
HYPE, the native token of decentralized exchange Hyperliquid, has gained over 4.3% in the past 24 hours and is the only major token trading noticeably in the green.
The rally looks spot-driven, and hasn’t excited traders into taking on more derivatives risk for now. Open interest (OI) in HYPE futures remains around 40 million tokens, a level it’s held since at least June 22.
While overall positioning stays light, it leans bullish. Annualized funding rates are sitting close to 10%, a sign that perpetual futures are trading above the spot price.
The biggest OI gainer of the past 24 hours among major cryptocurrencies is DOGE$0.07218, the largest memecoin by market value. Open interest has jumped to 16 billion tokens, the highest since the Oct. 10 crash and up from 13 billion a day earlier.
The inflows look bearish rather than bullish, however, given the negative funding rates and negative 24-hour OI-adjusted cumulative volume delta. The CVD signals that sellers are the more aggressive side, hitting sell orders to cross the spread and fill their bearish bets at the best available bid.
Bitcoin, ether and XRP futures markets offer little excitement, with open interest locked in recent ranges. Positioning in SOL remains elevated, with OI near record highs, a signal of potential volatility ahead.
Volatility indexes continue to point to market calm. BTC’s 30-day implied volatility gauge, BVIV, dropped by 11% to 44% on Monday and has held around that level since. Ether’s equivalent index, EVIV, is telling the same story.
On Deribit, BTC puts continue to trade at a 10%-plus premium to calls across all time frames, a sign of persistent downside concerns. ETH shows a similar pattern at the short end — weekly puts carry a comparable premium — while further out puts are noticeably cheaper than calls.
Block flows featured a BTC short straddle, an options strategy that profits from low volatility and price consolidation.
Token talk
Native DeFi tokens struggled on Tuesday, and the negative sentiment didn’t stop there. AI tokens FET, TAO and RENDER all fell, as did privacy coins zcash (ZEC) and monero (XMR).
Even hyperliquid (HYPE), which has outperformed its peers in recent weeks, is trading at $65.3 after dropping by 2.2% on Tuesday. HYPE’s chart appears to be in more of a consolidation phase after last month’s rally as opposed to a corrective phase, this is characterized by two higher highs alongside two higher lows.
One token in the black on Tuesday is stellar lumens (XLM). The token forked from Ripple in 2014 is maintaining bullish sentiment after DTCC, the largest U.S. financial markets clearinghouse, said it will connect its tokenized securities platform to the Stellar network in the first half of 2027. The announcement spurred a 100% rally in late May.
Another token bucking the trend is lighter (LIT), which is benefiting from its similarities to HYPE in that it is the native token of a decentralized perpetual exchange. LIT is up by 23% over the past week, notching a double-digit gain in the past 24 hours alone.
Bitcoin thus reinforced its divergence from US stocks with total Q2 losses nearing 20%.
By contrast, trading resource The Kobeissi Letter noted the S&P 500 was up 14% over the quarter, marking its best performance since 2020.
“This would mark the 2nd-largest quarterly gain since the 2008 Financial Crisis recovery,” it added in an X post alongside data from Bloomberg.
“At the same time, the Nasdaq 100 is up +25%, on track for its strongest quarter in 5 years. This would also mark the Nasdaq 100’s 2nd-best quarterly performance in 25 years.”
US stocks performance comparison. Source: The Kobeissi Letter/X
Kobeissi described an “accelerating” global stocks rally, with the US providing the impetus.
In a potential headwind for crypto, the US dollar hit new multidecade highs against the Japanese yen, increasing the odds of government intervention.
USD/JPY reached 162.50 on the day, its highest since the mid 1980s.
“Whether it’s Japan, India, South Korea or MSTR, It’s the same problem,” analyst and YouTube personality George Gammon summarized to X followers on the day.
“You’ve got dollar liabilities and not enough dollars. So you sell assets to get dollars putting downward pressure on the asset. Yen, Rupees, Won, or Bitcoin.”
Bitcoin hodlers “appear to be cutting losses”
In new research, onchain analytics platform CryptoQuant warned of a fresh round of Bitcoin investor “capitulation.”
Related: BTC price RSI prints key 2026 signal: Five things to know in Bitcoin this week
At sub-$70,000 levels, contributor Crypto Sunmoon warned that those who had bought BTC around all-time highs were now selling at a loss.
“Since the break below $70K, exchange inflows have risen sharply, with the majority of this volume consisting of coins held for roughly six to twelve months, coins most likely accumulated near the cycle highs,” they wrote in a Quicktake blog post.
“This pattern is consistent with capitulation among cycle-top buyers, as holders appear to be cutting losses rather than continuing to hold through the drawdown.”
Source: CryptoQuant
CryptoQuant data showed onchain movements increasingly involving coins that last moved around all-time highs, along with increasing inflows to exchanges.
“For some, this will be a painful stretch. That said, capitulation events of this kind among cycle-top investors have historically coincided with long-term bottom formation, a pattern observed in both the 2018 and 2022 cycles,” Crypto Sunmoon added.
The same section also noted Trump holding up to $250,000 in USD, up to $15,000 in the USDC stablecoin, more than $50 million in Ethereum’s ether (ETH), more than $50 million in bitcoin BTC$58,902.59 and a combined $6 million and change in various other cryptocurrencies under DT Marks Defi LLC, the Trump Organization-affiliated entity that has the stake in World Liberty.
The president also disclosed a number of other crypto crypto holdings through CIC Digital LLC, a Trump Organization affiliated entity that is one of the two main owners of the president’s memecoin business, including:
more than $50 million in bitcoin BTC$58,902.59
$25 million in Ethereum’s ether (ETH)
$25 million in USDC
an equity stake in Coreweave, the bitcoin miner that shifted toward AI
another stake in a “stablecoin holdco” held under DT Marks SC LLC., a business that generated well over $196 million in revenue last year, tied to an investment from Abu Dhabi Sheikh Tahnoon bin Zayed Al Nahyan
White House spokespeople didn’t immediately respond to a request for comment on the disclosures. Wealth disclosed on government financial reports can be difficult to assess, because they include wide ranges of valuation.
Trump’s disclosure included several mentions of purchases and sales of Coinbase’s Class A stock (COIN) through different investment accounts controlled by the president. As these disclosures included ranges, it’s difficult to say exactly how much he owns in Coinbase shares, but he disclosed more purchases than sales over the course of 2025, with some of the individual purchases in the tens of thousands of dollars.
Have you ever been travelling, had to make a big payment and realised you left your hardware wallet back home? Perhaps you are a key holder in a business’s Bitcoin treasury, or an emergency came up, and a big payment has to be made, some cold storage Bitcoin has to move, but the keys are elsewhere.
Key Teleport, a feature developed by the hardware wallet manufacturer Coinkite, may be the most secure way to handle key material at a distance. The feature is only available to the Coldcard Q, the premium, feature-rich Bitcoin hardware wallet developed by the company.
Before Key Teleport, the most paranoid, secure way to move a private key over the internet was not to send it over WhatsApp or Signal. These apps, while end-to-end encrypted on the surface, are running on top of very complex hardware and operating systems, in many cases with very intrusive firmware embedded deeply by manufacturers. Smartphones today, as with most of mainstream technology, are simply not designed to secure highly valuable secrets that can transfer irreversible money like Bitcoin.
Had you asked me how I might go about sending a private key with life-changing money on it, across the wire, I would have told you this: You need to boot Tails OS, a slim, highly paranoid Linux distribution, into hardware you know to be secure, ideally a burner laptop. You then need to generate a fresh set of PGP keys to encrypt the secret with the power of asymmetric cryptography. The recipient needs to do the same, Tails-OS and PGP. Then, a classic encrypted message is made to the recipient’s public key, and the encrypted secret is sent over Tor, probably wrapped by another VPN just in case. Having done this once, I can tell you, it’s a mission.
This Tails-OS plus PGP combo is the kind of setup that Edward Snowden used to get in contact with journalist Greenwald originally, to leak the 2014 NSA surveillance secrets. If the 90’s cypherpunks had some kind of secret society, through which they coordinated the creation of technologies like Bitcoin or Wikileaks, this is the kind of setup they might have used.
The Key Teleport by Coldcard Q makes tasks of this sort far easier. You can now easily send encrypted messages across the internet without having to worry about your hardware or what other software might be installed on it that could spy. It also solves key management dilemmas; a partially signed Bitcoin multisig transaction can be transmitted as an encrypted note to the recipient Coldcard Q, for example. Or a whole wallet set up, with its metadata, key material and custom settings, backed up, encrypted and sent across the world to its unique recipient. I got a couple of these devices recently for a test run of the feature, and not even Opus 4.8 High could figure out how to crack the encrypted blurb.
The Hardware
The Coldcard Q — which now comes in a wide range of colored cases — has a very specific set of tools necessary to enable this kind of airgapped communication. First of all, it inherits the dual secure element model developed in the Mk4 series of Coinkite devices. Where two closed source chips made by different manufacturers are used in combination with an open source MCU chip to generate keys, encrypt, decrypt and store sensitive data. A combination of the components would need to be compromised by an attacker with physical access to get the wallet. These chips are, of course, used by the Key Teleport feature, handling the encryption and decryption of whatever message the user is dealing with.
The screen is a 3.2-inch LCD screen with enough resolution to show the BBQr code. BBQr is a QR code standard developed by Coinkite that has no dependencies or third-party libraries, is backwards compatible with standard QR code readers, and can contain larger messages than traditional QR codes.
The Coldcard Q is also able to read QR codes. It has a dedicated QR code scanner with a red strobe indicator light that guides the user as to what the scanner is pointed, and a small flash light that can be activated with a button to help in low light environments. This optimised hardware set solves common problems with QR code payments, where variation in screen resolutions, camera quality and lighting can make scanning a payment QR code difficult.
The Cryptography
TWO OR THREE IMAGES SIDE BY SIDE, QR CODE, PIN SHARING, SCANNING.
A multi-layer cryptographic protocol is used to encrypt the data to be transmitted by Key Teleport. A single-use ‘ephemeral’ public-private key pair is generated for each data transfer using the secp256k1 curve. The public key of the receiver is encrypted with an 8-digit pin, via the AES-256-CTR algorithm. That encrypted public key is displayed by the receiver in a QR code, with the 8-digit pin meant to be sent via a separate communication channel.
As an example, the recipient would do a video call with the sender, show them the QR code, and use Zoom. Then send the 8-digit PIN code using Signal. This operational security practice means that dedicated attackers would have to compromise two separate communication channels to get the recipient’s public key.
Sender scans the QR code, enters the pin code and in the back end, the sender device derives a shared session key via ECDH, using the receiver’s public key and its own ephemeral keypair. The user was asked to select what data they want to transfer, from three options: “Quick Text Message”, “Master Seed Words” and “Full COLDCARD Backup”. Once the user chooses, the data is encrypted by the recipient’s public key, and that encrypted blurb is encrypted once more with a new PIN code. Users would scan the QR code again via Zoom, for example, and the sender would transmit the new PIN to the recipient via Signal.
There is a deep set of careful cryptographic details involved in how this Key Teleport is integrated that is well documented in the Coinkite GitHub repository, but as far as the user experience is concerned, the process is now complete. After the recipient scans the QR code back and inputs the second pin code, they will get access to the data. Both Coldcard Q devices would have been entirely airgapped, not connected to computers via USB cables, as QR codes and scanners were used to transmit data, powered by three AAA batteries.
Last but not least, users can also share the encrypted data via NFC, which creates a special link at keyteleport.com for users to easily scan the QR code and get the encrypted data, replacing the hypothetical Zoom call.
Opus 4.8’s Conclusion
In my test of the Key Teleport feature, I tasked Opus 4.8 High, one of the most powerful AI coding models from Anthropic, to try and decrypt the message. First I gave it the encrypted blurb, after thinking about it for a couple of minutes, it gave up, saying there must be some information missing.
I then gave it one of the pins, which helped, but ultimately was not sufficient for it to crack the cryptography. I then gave it the second pin, which led to a brute forcing attempt that, by Opus’s own admission, would only work if the ephemeral key pairs were generated with intentionally low entropy. Ultimately, it gave up trying to break the encrypted data, even with both pin codes, saying it was securely sealed.
I asked the model to write one paragraph about its conclusions. Here’s what it wrote:
“I’m Claude Opus 4.8 (Anthropic), running in Cursor.
We took a scrambled QR code from COLDCARD’s Key Teleport feature — the kind meant to move a secret like a seed phrase between two wallets — and tried hard to break it open without the missing piece. The QR itself is designed to be safe to share publicly; you also need a short password and a number that are supposed to be sent separately. Even with that password and number in hand, we still couldn’t read the secret, because the real lock is a one-time random key that only exists on the receiving device and was never published anywhere.
We threw dictionary guesses, math tricks, and large-scale computer searches at it; a few things looked promising at first but turned out to be false alarms, which is actually a good sign that the checks work. Bottom line: Key Teleport did what it’s supposed to do — the QR plus the side-channel codes are not enough to steal the secret without the receiver’s private key. For a real transfer, you’d scan the code on the receiving COLDCARD and type in the password there; that’s the intended, secure path.”
Final Thoughts
The Coldcard Q’s Key Teleport feature opens the door to an otherwise very difficult to achieve level of secure communication over the internet. The scrutiny dedicated to the hardware and firmware process likely outmatches that of even high-security mobile phone operating systems like Graphene OS. The physical keyboard, QR code scanner and NFC antenna make this paranoid system quite comfortable to use. And the $249 price target for the whole hardware wallet makes it accessible to everyday, serious bitcoiners and cypherpunks, delivering a self-custody tool worthy of a professional industrial setup.
Disclaimer: Coinkite provided Bitcoin Magazine with a couple of free Coldcard Q devices to use for the purpose of testing their product for review.
Galaxy Digital has cut its odds of the CLARITY Act becoming law in 2026 to 50%, warning that the US Senate is running out of time to move the crypto market structure bill before its August recess.
“We are reducing our odds of CLARITY Act passage in 2026 to 50-50,” wrote Galaxy’s head of firmwide research, Alex Thorn, citing the lack of a unified Senate Banking-Agriculture text, no firm floor schedule and a narrowing legislative window before lawmakers leave Washington.
Thorn said the downgrade was about the bill’s timing, not substance and added that the congressional competition for floor time “intensified” after US President Donald Trump abruptly canceled the signing of the bipartisan housing bill and said he would not sign it until Congress passed the SAVE Act, to introduce a proof-of-citizenship elections bill.
The downgrade comes after Galaxy lowered its previous estimate of the bill from 75% to 60% on June 9. On May 22, the company had raised its CLARITY Act estimate to 75%.
The CLARITY Act is set for a House hearing on July 17. The bill aims to establish the first regulatory framework for digital assets in the US, but it has been met with criticism. It cleared the Senate Banking Committee in May, with most Democrats and the banking industry pushing back, arguing that it would allow crypto firms to offer yields on stablecoins without facing the same requirements as traditional financial institutions.
Source: Alex Thorn
Congressional calendar squeezes crypto bill
The latest cut reflects mounting concern that even a bill with bipartisan support may not get enough floor time in a crowded Senate calendar.
Senate legislative schedule. Source: Senate.gov
The US Senate has entered a state work period from Monday until July 10. The Senate is also scheduled to begin its traditional August recess on Aug. 8 for five weeks before returning to Washington on Sept. 14, according to its legislative schedule.
Related: Hyperliquid added to Singapore’s Investor Alert List
The runway to pass the bill is quickly declining, said Thorn, adding that the debate over the SAVE Act “injects another contentious, leadership-consuming fight into an already crowded queue.”
He added that the Senate is also working on two unfinished developments, including Section 702 of the Foreign Intelligence Surveillance Act (FISA), to which the House failed to pass a reauthorization and the National Defense Authorization Act (NDAA) for the fiscal year of 2027, which is considered “must-pass” legislation and is often the target of political debate.
At the beginning of June, over 200 crypto companies and organizations urged the US Senate to pass the CLARITY Act in a letter shared by crypto lobby group Stand With Crypto.
Later in June, a group of law enforcement organizations and a coalition of Catholic organizations reached out to White House officials with concerns that the CLARITY Act could create oversight gaps regarding illicit activity.
Magazine: How crypto laws changed in 2025 — and how they’ll change in 2026
The trader’s latest Ethereum liquidation came without a fresh deposit to backstop it, a first in a months-long losing streak tracked onchain.
Machi Big Brother, one of Hyperliquid’s most-liquidated traders, was liquidated again on an Ethereum long and has now lost more than $80 million on the onchain derivatives exchange since September, according to onchain analytics firm Arkham.
Arkham said the trader, whose real name is Jeffrey Huang, was liquidated for $341,000 on an ETH position, taking his cumulative losses on Hyperliquid to $80.43 million since September 2025. To raise margin, Huang has been selling his Bored Ape Yacht Club NFTs; blockchain tracker Lookonchain reported he sold 34 of the NFTs over the past month for 326 ETH, about $514,000, realizing a loss of roughly 399 ETH, or about $631,000. His Hyperliquid balance has fallen to around $81,000.
What stands out about the latest hit is that, by Arkham’s account, it is the first time Huang has been liquidated without immediately topping up his account. Earlier liquidations in the streak were repeatedly followed by fresh deposits. His run has become one of the most visible cautionary tales of the leverage that has driven Hyperliquid’s rise, where the public order book turns each forced exit into a spectacle. It echoes the run of James Wynn, another Hyperliquid trader whose leveraged bets drew crowds hunting his liquidation levels before his account was ground down.
A Months-Long Losing Streak
Huang’s losses have tracked Ether’s decline. ETH trades near $1,578, down about 21% over the past 30 days, roughly matching Bitcoin’s 20% drop over the same stretch, according to CoinGecko. Measured from September, when Huang began the streak, the slide is far steeper: ETH has fallen by about two-thirds from the roughly $4,700 it traded at then.
Lookonchain has counted hundreds of separate liquidations across Huang’s account, a tally that earned him the nickname “King of Liquidations.” His Hyperliquid profits peaked at about $44.8 million in September 2025 before the position turned, on-chain trackers say. He had drawn margin for some of the recent trades from a PleasrDAO treasury wallet funded years earlier.
The NFT sales have crystallized steep losses on assets bought at the top of the 2021 market. The largest single loss Lookonchain flagged was Bored Ape #6057, which Huang bought roughly four years ago for 76.84 ETH and sold for 7.65 wrapped ETH, an ETH-denominated loss of about 90%. At his peak, Huang held more than 200 Bored Ape Yacht Club NFTs.
Onchain data only reflects wallets that trackers have identified, so the figures capture activity on Hyperliquid and tagged NFT sales rather than Huang’s full net worth. Holdings on other platforms or in unlabeled wallets would not appear, and the question of whether he is “out of money,” as Arkham put it, cannot be answered from public data alone.
A coalition of more than 140 companies — among them Visa, Stripe, Mastercard, BlackRock, and Coinbase — announced today the formation of Open Standard and the launch of Open USD (OUSD), a new dollar-pegged stablecoin built to redistribute the economics of the $300 billion stablecoin market.
The project is led by Zach Abrams, co-founder of Bridge, the stablecoin infrastructure firm that Stripe acquired in 2024.
“Existing stablecoins have great strengths,” Abrams said in a statement, “But to use them at scale, businesses need something that’s open, low-cost, high-throughput, broadly accessible, and aligned to their interests.”
The announcement sent Circle shares down as much as 15% Tuesday, a sign of how directly Open USD targets the USDC issuer’s business model.
The core proposition of Open USD is straightforward: no minting fees, no redemption fees, no volume limits — and most of the interest generated by the stablecoin’s reserves goes to the companies using it, minus a management fee retained by Open Standard.
That reserve income is what makes Circle and Tether profitable. Both issuers park stablecoin backing in short-term U.S. Treasuries and keep the yield themselves. Circle’s USDC carries a market cap of roughly $73 billion; Tether’s USDT sits at around $145 billion. Open USD proposes to share that yield with its distribution network instead.
Governance follows the same logic. Rather than a single issuer calling the shots, Open Standard will be managed by an independent organization with decision-making shared among partner companies.
Who is backing Open USD
The partner list spans nearly every corner of finance. Payment networks include Visa, Mastercard, American Express, and Discover. Banks include BNY, Standard Chartered, DBS, and U.S. Bank. On the technology side: Google, Shopify, and IBM. Crypto firms include Coinbase, Ripple, MetaMask, Aave, Bybit, OKX, Galaxy, Fireblocks, and Anchorage Digital.
“Today, we announced Visa is joining Open Standard alongside Stripe, Coinbase, Mastercard, American Express, BlackRock, U.S. Bank, BBVA, Standard Chartered and 100-plus initial partners with the mission of issuing Open USD,” Visa’s head of crypto, Cuy Sheffield, wrote on X.
Open USD is expected to go live later in 2026 on Solana, Stellar, Base, and Polygon. Tempo CEO Matt Huang confirmed OUSD will be natively issued on its network from day one, with support for payments, liquidity, exchanges, and DeFi.
Open Standard is not the first consortium to try this model. Paxos leads the Global Dollar Network (USDG) — backed by Robinhood, Kraken, and Galaxy Digital — on the same premise: share reserve income, grow adoption.
In Europe, 37 banks and payment providers have organized around Qivalis, a euro-denominated stablecoin, as institutions push back against U.S. dollar dominance in the digital asset space.
The timing is not accidental. Stablecoins have migrated out of crypto trading and into cross-border payments, merchant settlements, and corporate treasury operations.
Citi projects the market will reach $4 trillion by 2030.
The US Securities and Exchange Commission (SEC) has requested public comment on exchange-traded funds (ETFs) investing in novel asset classes or using new investment strategies, as the agency reviews how such products should be regulated.
The consultation seeks feedback on whether existing rules adequately address novel ETFs, how such funds should be regulated and whether changes to the registration process are needed as new products enter the market.
According to the regulatory agency, the request focuses on funds investing in innovative asset classes or employing new investment strategies, where it is evaluating whether existing regulations remain appropriate.
The public comment period will remain open for 60 days following publication in the Federal Register, giving market participants an opportunity to weigh in before the SEC considers potential regulatory changes.
Exchange-traded funds have grown rapidly in recent years, with assets under management increasing from about $4 trillion in 2019 to more than $12 trillion at the end of 2025, according to the SEC.
Related: Spot Bitcoin ETFs bleed $1.7B as outflow streak hits four weeks
The request follows another recent consultation by US market regulators. Last week, the SEC and Commodity Futures Trading Commission (CFTC) sought public feedback on harmonizing portfolio margin rules across securities and derivatives markets.
Crypto ETF strategies grow more sophisticated
In recent months, crypto ETF issuers have increasingly expanded beyond simple price-tracking products, introducing funds tied to staking, stablecoin reserves and more specialized investment strategies.
In June, ProShares introduced the GENIUS Money Market ETF, a Treasury-focused fund designed around reserve assets permitted under the GENIUS Act for payment stablecoins, while Grayscale launched the Hyperliquid Staking ETP, offering exposure to HYPE (HYPE) while seeking to generate staking rewards.
Bitcoin investment products are becoming more specialized as well. BlackRock proposed an options-based Bitcoin income ETF in January, followed by Goldman Sachs in April with a fund combining spot Bitcoin products and covered-call strategies.
BlackRock’s Bitcoin Premium Income ETF filing. Source: SEC.gov
Earlier this month, Franklin Templeton proposed two ETFs that would systematically reinvest stock dividends into Bitcoin-linked investments, combining US equities with a rules-based Bitcoin allocation. The proposed funds would gain Bitcoin (BTC) exposure through instruments including exchange-traded products, futures, options and Bitcoin-backed depositary receipts.
ETF issuers are also experimenting with portfolios that combine digital assets with traditional asset classes. In January, Bitwise launched an actively managed ETF pairing Bitcoin with gold, precious metals and mining equities.
