TL;DR

SEC clears liquid staking tokens; Bitcoin ETFs see $1.25B outflows; Ethena’s USDe jumps to #3 stablecoin.

Highlights

• SEC clarifies most liquid staking tokens are not securities, enabling potential staking features in spot Ether ETFs1.
• Bitcoin ETFs see $1.25B in outflows over four days; options markets show strong downside hedging4.
• MicroStrategy buys 21,021 BTC ($2.46B); short-term holders drive $18B in sell pressure, while whales accumulate35.
• Fundstrat’s Tom Lee amasses $3B in ETH , targeting up to 5% of supply18; BlackRock rotates into Ether, Michigan pension triples Bitcoin ETF exposure17.
• Ethena’s USDe becomes third-largest stablecoin at $9.3B supply as stablecoin yields and volumes hit records8.
• China to approve first RMB stablecoin in Hong Kong, aiming to internationalize the renminbi in crypto markets7.
• MetaMask to launch mmUSD stablecoin via Stripe, integrates Sei Network (100M users, $600M TVL)9.
• Coinbase ’s Base Layer-2 suffers 33-minute outage due to sequencer issue6; Coinbase plans $2B convertible note raise13, expands PayPal crypto payments to Canada20.
• PancakeSwap launches on-chain US stock perpetuals (AAPL , AMZN , TSLA ) with up to 25x leverage15; Pendle debuts Boros for on-chain BTC /ETH funding rate trading16.
• SBI Holdings files for Japan’s first Bitcoin /XRP ETFs10; Indonesia studies adding Bitcoin to sovereign reserves11.
• Tether’s USDT accounts for 40% of blockchain fees across nine networks, highlighting its DeFi dominance19.
• Tornado Cash co-founder convicted for unlicensed money transmission; jury undecided on laundering charges2.

Commentary

The SEC’s statement that most liquid staking tokens are not securities removes a major regulatory hurdle for DeFi protocols and could accelerate the inclusion of staking features in spot Ether ETFs1. This is particularly relevant for protocols like Lido and Jito, and may drive renewed institutional and retail interest in liquid staking and related DeFi products.

Despite corporate and whale accumulation—evidenced by MicroStrategy ’s $2.46B Bitcoin purchase3 and Fundstrat’s $3B Ethereum build-up18—ETF flows remain negative, with $1.25B in outflows from Bitcoin ETFs and a bearish tilt in options markets4. Short-term holders are driving sell pressure5, while long-term investors and large entities are accumulating, suggesting a divergence in market conviction. The derivatives market is positioned defensively, with options traders favoring downside protection into key macro events4.

Stablecoins continue to show robust growth. Ethena’s USDe has surged to the third-largest stablecoin by supply8, and Tether’s USDT remains the primary driver of blockchain fee activity19. Regulatory developments are shaping the landscape: the US GENIUS Act restricts yield payments8, while China’s pending RMB stablecoin in Hong Kong signals a push for non-dollar alternatives in global crypto flows7. MetaMask’s mmUSD launch and Sei Network integration further expand stablecoin competition and Layer-1/Layer-2 interoperability9.

On-chain derivatives are expanding rapidly. PancakeSwap’s launch of US stock perpetuals (AAPL , AMZN , TSLA )15 and Pendle’s Boros platform for trading funding rates on BTC and ETH 16 highlight DeFi’s efforts to capture new trading flows and bridge traditional and crypto markets. However, infrastructure risks persist, as seen in the Base Layer-2 outage6, underscoring the need for robust reliability as user adoption grows.

Traders should watch for shifts in ETF flows417, whale accumulation trends3518, and the impact of new derivatives and stablecoin products on liquidity and volatility81516. Regulatory and macroeconomic developments remain key drivers for sector rotation and sentiment across DeFi, Layer-1s, and stablecoins178.