TL;DR

Ethereum hits new ATH; $1B exits BTC ETFs, $290M enters ETH ETFs; major whale rotates BTC to ETH.

Highlights

• Ethereum hit a new all-time high above $4,880, triggering $350M in ETH short liquidations and $550M in total crypto futures liquidations 12.
• Bitcoin rebounded to $117,000 after Fed Chair Powell’s dovish Jackson Hole comments, with broad crypto market gains 3.
• Bitcoin ETFs saw $1B in outflows over five days, while spot Ether ETFs attracted up to $290M in daily inflows; BlackRock led the rotation 56.
• A Bitcoin whale sold $348M BTC and accumulated $790M in ETH (spot and 10x leveraged longs), signaling a shift from BTC to ETH 4.
• Bitwise completed the first in-kind creation for a U.S. spot Bitcoin ETF, potentially lowering costs and improving ETF structure 8.
• VanEck filed for the first U.S. ETF backed by a Solana liquid staking token (JitoSOL) 7.
• Stablecoin developments: MetaMask announced Stripe-backed mUSD; Circle minted $750M USDC on Solana ; Ripple and SBI plan RLUSD launch in Japan; Coinbase to list Trump-linked USD1 9101118.
• EU is considering Ethereum or Solana public blockchains for the digital euro, accelerating plans after new U.S. stablecoin regulation 12.
• DOJ will not pursue money-transmitter charges against neutral DeFi developers; CFTC launched a "Crypto Sprint" to fast-track U.S. digital asset rules 1314.
• Coinbase is rolling out in-app DEX trading for all Base tokens, expanding on-chain access for users 15.
• China Renaissance committed $100M to Binance Coin (BNB) , becoming the first HK-listed company to hold BNB on its balance sheet 16.
• Aave expanded to Aptos , marking its first deployment outside Ethereum-compatible networks 17.
• High-risk trading on Hyperliquid: a trader turned $125K into $6.86M profit on ETH , then lost $6.22M, highlighting leverage risks 19.
• BlackRock’s Bitcoin ETF now holds 781,000 BTC , surpassing all exchanges as the largest custodian 20.

Commentary

Ethereum ’s breakout to new highs, coupled with a record $350M in short liquidations, was the dominant event, driven by a sharp reversal in sentiment following dovish Fed signals and sustained ETF inflows 12. The scale of forced covering in ETH, alongside a $550M wipeout in crypto futures, highlights the risks of one-sided positioning in leveraged markets 1. Bitcoin also rallied, but ETH outperformed, supported by a visible rotation of institutional capital 36.

ETF flows underscored this shift: Bitcoin ETFs saw $1B in outflows over five days, while Ether funds—especially BlackRock’s—recorded strong inflows 56. A major Bitcoin whale mirrored this trend, selling BTC and building large spot and leveraged ETH positions 4. Bitwise’s in-kind ETF creation may improve operational efficiency for spot Bitcoin products, potentially narrowing spreads and reducing costs 8.

DeFi and stablecoin infrastructure saw notable developments. MetaMask’s announcement of mUSD (backed by Stripe) 9, Circle’s $750M USDC mint on Solana 10, and Ripple/SBI’s RLUSD expansion into Japan 11 suggest stablecoin competition is intensifying across jurisdictions and networks. The EU’s consideration of Ethereum or Solana for the digital euro signals a possible shift toward public blockchains for central bank digital currencies, likely accelerating integration with existing crypto infrastructure 12.

On the regulatory front, the DOJ’s clarification that neutral DeFi developers will not face money-transmitter charges 13 and the CFTC’s new "Crypto Sprint" suggest a more constructive U.S. policy environment 14. Coinbase ’s in-app DEX rollout for Base tokens 15, Aave ’s move to Aptos 17, and China Renaissance’s $100M BNB allocation 16 all point to growing institutional and developer activity across Layer 1s, Layer 2s, and exchange tokens.

Traders should remain alert to continued volatility, especially in ETH and BTC , as leverage remains high and positioning crowded 19. Monitor ETF flows, whale activity, and regulatory headlines for near-term direction. Stablecoin launches and cross-chain DeFi adoption are likely to remain key themes.