TL;DR

Bitcoin tops $118K on ETF inflows; Ethereum, Solana rally; U.S. eases DeFi tax rules.

Highlights

• Bitcoin hit a record $118,000, triggering $2.4B in short liquidations; Ethereum rallied 7% to over $3,000 12.
• BlackRock’s iShares Bitcoin Trust became the fastest ETF to surpass $80B in assets under management 6.
• U.S. spot Bitcoin and Ethereum ETFs saw combined net inflows of $1.5B in a day, with Ethereum ETF flows nearing Bitcoin ’s 2.
• The U.S. Treasury repealed Form 1099-DA, easing tax compliance for DeFi and non-custodial crypto platforms 4.
• China is considering a regulatory framework for yuan-backed stablecoins, signaling a possible shift from its crypto ban 5.
• Solana ecosystem developments: BIT Mining plans $200M–$300M SOL treasury and validator operation; Robinhood reopens Solana staking for U.S. users 1015.
• Pump.fun’s $1B PUMP token sale drew early derivatives trading and led to the acquisition of wallet tracker Kolscan, sparking a rally in related Solana memecoins 79.
• Circle launched CCTP V2 on Polygon PoS and Sei , enabling native USDC cross-chain transfers; Sei token up 113% in a month 11.
• Aptos RWA deposits surged 55% to $538M, making it the No. 3 real-world-asset blockchain by TVL 8.
• a16z and Plasma Foundation’s X accounts were compromised in separate phishing attacks, highlighting persistent social engineering risks 12.
• U.S. Congress is advancing the GENIUS Act and Clarity Act, aiming to establish clearer digital asset regulation 20.
• Florida AG opened an investigation into Robinhood Crypto over alleged deceptive pricing claims 17.

Commentary

ETF-driven flows continue to dominate market structure, with Bitcoin ’s new all-time high above $118,000 and Ethereum ’s rally over $3,000 both propelled by near-record spot ETF inflows 12. The narrowing gap between Bitcoin and Ethereum fund flows, alongside BlackRock’s iShares Bitcoin Trust reaching $80B AUM in record time, underscores deepening institutional adoption 26. The $2.4B in short liquidations signals ongoing volatility and the risk of further unwinding in derivatives markets 1.

Regulatory clarity is incrementally improving. The U.S. Treasury’s repeal of Form 1099-DA removes a major reporting burden for DeFi and non-custodial platforms, likely supporting continued innovation and on-chain activity 4. In parallel, the advancement of the GENIUS and Clarity Acts in Congress suggests bipartisan momentum for a more defined U.S. digital asset framework 20. Internationally, China’s consideration of yuan-backed stablecoins could reshape global stablecoin markets if implemented, though policy direction remains uncertain 5.

Solana remains a focal point for both institutional and retail flows. BIT Mining ’s planned $200M–$300M pivot to SOL treasury and validator operations, Robinhood ’s reintroduction of Solana staking, and speculative activity around Pump.fun’s PUMP token launch highlight Solana ’s growing traction 91015. Related memecoin rallies and infrastructure moves, such as the Kolscan acquisition, further support this trend 9.

Elsewhere, Circle’s CCTP V2 rollout on Polygon and Sei is driving cross-chain USDC adoption and DeFi growth, with Sei ’s token seeing outsized gains and regulatory milestones 11. Aptos ’s surge in RWA deposits reflects ongoing interest in real-world asset tokenization 8. Security remains a concern, as demonstrated by high-profile X account breaches at a16z and Plasma Foundation 12. Traders should monitor ETF flows, derivatives positioning, and evolving regulatory signals for near-term market direction.