TL;DR

Israel-Iran conflict triggers $1B crypto sell-off; BlackRock, ETH ETFs see record inflows; SEC pulls key rules.

Highlights

• Israel’s airstrikes on Iran triggered a $1B+ crypto market sell-off; Bitcoin dropped to $103,000, Ether fell nearly 10%, and over 246,000 traders were liquidated114.
• BlackRock added $570M in ETH and $278M in BTC over two days; SharpLink acquired $463M in ETH but saw its stock plunge 70%218.
• Ethereum ETFs logged $240M daily inflow, outpacing Bitcoin ETFs; ETH futures open interest hit a record $20B3.
• The SEC withdrew Gensler-era proposals on crypto custody, DeFi exchange regulation, and ESG disclosures, signaling a regulatory shift4.
• Invesco and Galaxy registered a spot Solana ETF in Delaware; Grayscale, Fidelity, and others revised Solana ETF filings as SEC reviews accelerate519.
• Coinbase plans to launch U.S. perpetual futures, potentially as soon as June 14, bringing high-leverage derivatives onshore6.
• Shopify enabled crypto checkout via Coinbase ; Amazon and Walmart are exploring USD-backed stablecoins, impacting Visa and Mastercard shares15.
• Stablecoin market cap reached $250B (up 55% YoY); Circle added USDC to World Chain and XRP Ledger179.
• Centralized treasuries now hold 31% of Bitcoin supply, concentrated in 216 wallets, raising market structure concerns16.
• Tether acquired a 32% stake in Elemental Altus and launched a self-custodial wallet kit13.
• Tony G Co-Investment added Hyperliquid’s HYPE token to its treasury, sending its stock up 742%11.
• The SEC and Ripple jointly requested court approval to split a $125M penalty, reflecting a policy shift10.

Commentary

Crypto markets faced significant volatility following Israel’s strike on Iran, driving a sharp sell-off and over $1 billion in liquidations, with Bitcoin and Ether both experiencing steep declines114. This underscores the ongoing sensitivity of digital assets to geopolitical shocks and the high leverage still present in derivatives markets.

Despite the risk-off move, institutional activity remains strong. BlackRock continued heavy buying in both Bitcoin and Ethereum, while Ethereum ETFs saw record inflows and futures open interest hit new highs2318. The accumulation by centralized treasuries—now holding nearly a third of Bitcoin supply—highlights the increasing institutionalization of the market, but also raises questions about future liquidity and volatility should large holders move assets16.

On the regulatory front, the SEC’s withdrawal of major Gensler-era proposals reduces immediate compliance uncertainty for DeFi and custody platforms4. Meanwhile, the race for spot Solana ETFs is intensifying, with multiple asset managers updating filings and the SEC expediting reviews519. Approval could further diversify ETF flows beyond Bitcoin and Ethereum.

Stablecoins continue to expand rapidly, with market cap reaching $250B and growing integration into both retail and institutional infrastructure17. Circle’s USDC expansion and Tether’s diversification moves reflect ongoing competition in the stablecoin and infrastructure space913. The entrance of major retailers and payment networks into stablecoin discussions signals potential shifts in payment rails and on-chain liquidity15.

Traders should monitor ongoing geopolitical risk, ETF inflows (especially for Ethereum and Solana ), regulatory developments, and leverage in derivatives markets. Market structure remains dynamic, with institutional flows and regulatory clarity likely to drive near-term price action across major L1s, DeFi, and exchange tokens.