Today's crypto news is a testament to the dynamic nature of the crypto market, with developments spanning from regulatory shifts to institutional trends and ecosystem patterns.
The stark contrast between bearish Ethereum options activity and bullish institutional inflows reveals a market torn between short-term hedging strategies and long-term bullish accumulation. This dichotomy, evident in data from Deribit and the influx into Ethereum ETFs, underscores the need for a strategic approach to risk management in the face of market volatility.
Meanwhile, the introduction of a dynamic fee model on Solana token launchpad, Pump.fun, signals a significant shift in the creator economy. This move, which has seen a substantial increase in earnings for creators, highlights the potential of blockchain technology to disrupt traditional revenue models and empower content creators.
In regulatory news, the joint statement from the SEC and CFTC opens the door for registered U.S. exchanges to facilitate trading in certain spot crypto products. This development, part of the SEC’s Project Crypto and the CFTC’s Crypto Sprint initiatives, represents a shift from "enforcement first" to "coordination first", indicating a more accommodative stance towards crypto trading. This move is expected to bring crypto trading into the mainstream in the U.S., under a regulated framework, and could have significant implications for fund structuring and compliance.
Galaxy's move to tokenize its stock on the Solana blockchain via Superstate, a company specializing in compliant tokenization infrastructure, illustrates the potential of blockchain technology to improve market accessibility. This development could serve as a model for other listed companies looking to leverage blockchain technology for equity issuance.
Finally, the call from ECB President Christine Lagarde for stronger legislation targeting the risks associated with stablecoins highlights the need for robust regulatory frameworks in the rapidly evolving crypto space. This underscores the importance of international coordination to police the emerging industry and prevent regional arbitrage.
These developments underscore the importance of staying informed and strategically navigating the ever-evolving crypto landscape. As legal and financial professionals exploring the Web3 space, understanding these shifts can provide valuable insights for decision-making and strategic planning.
The following article summaries have been sourced from Decrypt, CryptoSlate, NewsBTC, and Crypto Briefing. Each summary includes a direct link to the original source.
The crypto market is witnessing a stark contrast between bearish Ethereum options activity and bullish institutional inflows. Experts have reported a significant increase in bearish Ethereum options activity, suggesting that traders are cautious about a potential price drop. This pessimism is in direct conflict with the considerable institutional investment being channeled into new spot Ethereum ETFs. The market appears to be split between short-term hedging strategies and long-term bullish accumulation. The perpetual open interest in Ethereum, the second-largest crypto by market capitalization, has dipped by 2% from $24.6 billion to $24.1 billion since the start of September.
The bearish positioning of Ethereum is evident in data from Deribit, which shows a substantial increase in open interest of puts since the end of August. This rush to buy protection is noticeably altering the market, causing the price of bearish bets to become more expensive than bullish ones. This trend, which began with Bitcoin, has now extended to Ethereum, indicating that investors are becoming increasingly cautious. On the other hand, Ethereum exchange-traded fund (ETF) inflows display confidence, with August flows reaching $3.87 billion and an additional $1.08 billion arriving in the last week alone. This performance significantly outpaces Bitcoin ETFs, which saw net outflows of $751.12 million for August despite a positive $440.71 million last week.
Pump.fun, a popular Solana token launchpad, has introduced a dynamic fee model that significantly increases the earnings of creators on the platform. This new model has been hailed as a major step towards the platform rivaling established platforms like Twitch, as Pump.fun's earnings for small creators look to outsize non-crypto livestreaming platforms. In the first 24 hours following the update, $2 million was distributed to creators on the platform, a significant increase from the $198,000 handed out to creators under the previous fee structure.
The boost in earnings is a result of Pump.fun's new dynamic fee model, a part of a broader series of updates in what the platform brands as Project Ascend. Under this model, upon every trade of a token, the creator of that token earns a percentage of the total fees. The percentage shifts based on the total market cap of the creator’s token. Creators of tokens between a market cap of $88,000 and $300,000 will earn the largest percentage fee of 0.95% per trade, slowly scaling down to 0.05% at a $20 million market cap. The new fee model has been lauded as a step in the right direction for creator incentives.
Pump.fun started as a simple token creation platform in January 2024, and as it grew, it added livestreaming as a native feature. Despite some controversy, livestreaming has returned to the platform and has become a bustling environment for streamers to find an audience and create content. The platform's fee restructuring has turbocharged the earnings of creators, and livestreamers believe it will be a game-changer for the platform. Streamers on Pump.fun earn by viewers purchasing their token in the hope that it’ll increase in value, a unique approach that sets it apart from traditional platforms.
The U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have issued a joint statement, indicating that registered U.S. exchanges are not prohibited from facilitating trading in certain spot crypto products. This implies that spot trading for Bitcoin (BTC) and Ethereum (ETH) is likely to be introduced soon, along with several other major cryptocurrencies. While the statement is merely staff guidance and not a rule, it does invite filings and requests for relief, outlining the factors that regulators will evaluate, such as margin/clearing/settlement, surveillance of underlying markets, and public trade-data dissemination.
This development is part of the SEC’s Project Crypto and the CFTC’s Crypto Sprint initiatives. It opens the door for SEC-registered national securities exchanges like the NYSE, Nasdaq, and CBOE, as well as CFTC-registered designated contract markets like the CME, to list spot crypto, subject to approval. This move is seen as a significant step forward, providing market participants with more freedom to choose where they trade spot crypto assets. The development also represents a shift in approach from the administration, moving from "enforcement first" to "coordination first", indicating more bullish announcements are likely to follow. This move is expected to bring crypto trading into the mainstream in the U.S., under a regulated framework.
In other news, Bitcoin ETFs saw $332.8M in net inflows on Monday, their highest total since August 8, while ETH ETFs experienced a $135M outflow. Gemini shared plans to IPO at a $2.3B valuation, aiming to raise up to $317M if successful. Coinbase unveiled a new Mag7 + Crypto Equity Index Futures product for trading, a hybrid index linking COIN, big-tech stocks, and BTC/ETH ETFs. Solana Alpenglow passed a validator vote, targeting major speed gains and faster finality in upcoming releases. Ondo Finance announced that tokenized stocks and ETFs will go live for trading on Ethereum today, and Galaxy Digital announced it will tokenize its SEC-registered shares on Solana.
Galaxy Research projects that the market for tokenized equities could reach nearly $190 trillion within the next 20 years. This prediction comes after Galaxy became one of the first public companies to tokenize its stock on the Solana blockchain via Superstate, a company specializing in compliant tokenization infrastructure. Alex Thorn, Galaxy’s Head of Research, stated that owning the on-chain GLXY token equates to owning common equity in Galaxy, marking a first for a publicly traded company in the US. As of the time of reporting, 32,374 Galaxy Class A shares had been issued on Solana, held by 21 token holders.
Galaxy believes this move demonstrates the viability of tokenization and could serve as a potential model for how listed companies can improve market accessibility. The firm has modeled bear, base, and bull scenarios to illustrate how blockchain adoption may transform financial markets once decentralized trading reaches critical mass. Galaxy refers to this tipping point as a “Uniswap moment,” when on-chain trading is widely seen as fairer, faster, cheaper, and safer than traditional structures, leading to a gradual shift from centralized exchanges to blockchain-based platforms. In the short term, Galaxy expects tokenized equities to represent between 0.7% and 4.6% of US market capitalization within the first two years of adoption, equivalent to $0.5 trillion to $3.3 trillion.
CryptoSlate has introduced a new feature called CryptoSlate Alpha, which requires a one-time purchase of a membership NFT (non-fungible token) using SOL, the native token of Solana. To complete the purchase, users will need to connect their Solana wallet. This new feature aims to provide users with an enhanced experience on the platform.
However, CryptoSlate has made it clear that by purchasing the CryptoSlate Alpha membership, users are bound by the terms and conditions of their third-party digital wallet provider, as well as any applicable terms and conditions of the Access Foundation. CryptoSlate also clarified that it will not bear any responsibility or liability concerning the provision, access, use, security, integrity, value, or legal status of the user's digital wallet.
European Central Bank (ECB) President Christine Lagarde has urged policymakers to hasten the development of legislation targeting the risks associated with stablecoins. Speaking at the European Systemic Risk Board (ESRB) conference, Lagarde warned that stablecoins, while innovative, reintroduce well-known financial vulnerabilities in new forms. She emphasized that the risks created by stablecoins are not new but are long familiar to supervisors and regulators. Lagarde identified liquidity as the most immediate concern in the emerging sector, explaining that stablecoin issuers often promise instant redemption at par while investing in assets that may not be liquid enough to support sudden demand.
Lagarde also highlighted loopholes in the EU’s Markets in Crypto-Assets (MiCA) regulation’s “multi-issuance schemes.” Under this scheme, an EU and non-EU entity could jointly issue fungible stablecoins. However, MiCA requirements do not apply to the non-EU issuer. This means that if investors rush to redeem their holdings, pressure would fall disproportionately on the EU issuer reserves, which may prove insufficient in the market. Lagarde pointed out that this scenario mirrors problems seen in cross-border banking groups. She concluded that Europe risks becoming the weak link in global redemption flows without stronger safeguards.
In response to these concerns, Lagarde called for stronger legislation to close these gaps by restricting stablecoin schemes that lack equivalent protections in other jurisdictions. She argued that concrete legislation is necessary to ensure stability and prevent regional arbitrage. Lagarde emphasized the importance of international coordination to police the emerging industry, warning that without global standards, risks could shift toward jurisdictions with the weakest rules, potentially undermining Europe’s financial safeguards.
Ray Dalio, founder of Bridgewater Associates, has recently released a detailed rebuttal to what he deems as the Financial Times' "mischaracterizations" of his views on the US debt cycle. In his statement, Dalio reiterates his "Big Debt Cycle" framework, arguing that the escalating US debt, threats to the Federal Reserve's independence, and increasing geopolitical tensions are undermining the dollar's role as a store of wealth. He believes these conditions are bolstering the value of gold and cryptocurrencies.
Dalio describes the US fiscal situation as being in a dangerous late-cycle stage, predicting a debt-induced crisis in the near future. He estimates the annual interest to be around $1 trillion, with about $9 trillion needed to roll over the debt. He also points to a shortfall in revenues, necessitating an additional $2 trillion in debt. Dalio warns that the expanding supply of debt, coupled with weakening demand when investors question the value of bonds, could lead to a decline in the value of money. He suggests that if the Federal Reserve's independence is compromised due to political pressure, the dollar and bonds could lose their value and cease to be effective stores of wealth.
Dalio also draws parallels between the current situation and the period from 1928 to 1938, noting that the policies enacted post-2008 and especially post-2020 have accelerated the late-cycle pattern. He predicts that the interplay of debt, domestic politics, geopolitics, natural events, and technology will bring about significant changes in the next five years. In this context, Dalio positions cryptocurrencies as an alternative currency with a limited supply. He links the recent rise in gold and cryptocurrency prices to the poor debt situations of reserve currency governments and reiterates his focus on stores of wealth. He also addresses the risk of crypto stablecoins, stating that a fall in the real purchasing power of Treasuries is the real danger, which can be mitigated if they are well-regulated.
Crypto analyst Jonathan Carter has identified a technical pattern for Shiba Inu, suggesting a potential breakout to the upside. Carter predicts that the meme coin could soon surpass the $0.00002 level, opening the path for higher prices. He confirmed that Shiba Inu has successfully broken above the descending channel and is currently consolidating just below the MA 50 on the daily timeframe. Carter suggests that this could lead to a rally of over 100% for SHIB.
Carter also suggested that if SHIB moves above the MA, it could trigger a significant rise towards targets at $0.00001400, $0.00001750, $0.00002050, and $0.00002500. He further indicated that Shiba Inu could rally to $0.000033 if it successfully breaks above $0.000025, although the $0.000033 level would present a significant resistance. This prediction aligns with that of crypto analyst Javon Marks, who recently forecasted that Shiba Inu could rally over 163% to the $0.00003 range. Marks identified a bullish pattern in a regular bull divergence, confirmed by the MACD Histogram, suggesting a potential reversal with the meme coin rallying to the upside.
Despite the bullish predictions, there is a bearish sentiment towards the Shiba Inu price, which has underperformed the broader crypto market and is down over 42% year-to-date (YTD). However, crypto analyst Shib Spain remains bullish on the meme coin, stating that the longer the meme coin’s accumulation continues, the more powerful the explosion will be. Crypto analyst CobraVanguard also noted that the Shiba Inu price is at a crossroads, highlighting a triangle pattern that could break in the direction it is breached, and the price would then move in that direction. He identified $0.000012251 as the key level to watch as the meme coin decides its next move.
Bitcoin is once again testing a critical support zone, leading to speculation about whether September's downturn could set the stage for a Q4 rally. This speculation is based on historical patterns that often show September dips followed by strong Q4 rallies. In his latest update, Benjamin Cowen noted that Bitcoin recently touched the bull market support band just days before September began. This level has historically acted as an important pivot zone, where bulls often attempt to defend the broader market structure. Cowen suggests that maintaining strength above this band could be crucial in preserving bullish sentiment.
Cowen further explained that August established a local high, suggesting that September may be shaping up to form a local low. This type of alternating cycle between highs and lows is common in Bitcoin’s price behavior, especially during transitional market phases. Cowen also noted that the beginning of September saw Bitcoin trading lower than any level observed in August, highlighting how quickly market conditions can change. He stated that the best-case scenario would be if Bitcoin's monthly low had already been established on September 1st. If that's the case, it could stabilize price action around the bull market support band, potentially setting the stage for another leg higher as the month progresses.
In his analysis, Cowen explained that the ideal scenario for Bitcoin would be to hold steady at the 20-week Simple Moving Average (SMA) throughout September. He noted that in previous bull cycles, including 2013, 2017, 2020, and 2021, Bitcoin successfully maintained this level before climbing to new highs in Q4. If Bitcoin fails to sustain the 20W SMA, attention should shift to the 50W SMA, which has consistently served as a strong foundation during the ongoing bull market. As of September 3, 2025, Bitcoin is trading around $111,053, reflecting moderate volatility and healthy market activity.
American Bitcoin Corporation, a company backed by President Trump's sons and Hut 8, has made its debut on Nasdaq under the ticker ABTC. The company, which merged with Gryphon Digital Mining in a stock-for-stock deal, focuses on Bitcoin accumulation through self-mining and strategic partnerships. According to a recent SEC filing, American Bitcoin holds 2,443 BTC, valued at nearly $273 million, a significant increase from its initial holding of 152 BTC. The company plans to sell up to $2.1 billion of Class A common stock and use the proceeds to purchase Bitcoin, acquire Bitcoin mining ASICs, and for general corporate purposes.
The company's stock saw a 72% increase in early trading on the day of its Nasdaq debut. Co-founder Eric Trump stated that the company serves as a leading public vehicle for investors seeking Bitcoin exposure, calling Bitcoin "the defining asset class of our time." The company's dual accumulation strategy involves self-mining operations and opportunistic Bitcoin purchases. Through its partnership with Hut 8, American Bitcoin uses next-generation ASIC technology and leverages Hut 8’s colocation infrastructure platform for mining operations. Asher Genoot, executive chairman of American Bitcoin and CEO of Hut 8, believes the Nasdaq debut positions the company as a leader in Bitcoin accumulation.
US Bancorp has resumed its Bitcoin custody services for institutional investment managers, in collaboration with NYDIG. The bank is considering expanding its custody offerings to include more cryptocurrencies as market demand increases and standards are met. The bank's senior executive vice president and chief digital officer, Dominic Venturo, stated that expanding their capabilities opens up new opportunities to provide innovative solutions to their clients in digital finance. The bank also plans to extend its platform to support Bitcoin exchange-traded funds to meet the growing demand from fund managers.
The crypto custody program was first introduced by the Minneapolis-based commercial bank, the fifth-largest in the US, in 2021. However, it was put on hold due to regulatory concerns, particularly after the US Securities and Exchange Commission issued accounting guidance, Staff Accounting Bulletin No. 121 (SAB 121), which made it capital-intensive for banks to hold crypto assets like Bitcoin for their clients. This guidance was rescinded earlier this year with the introduction of SAB 122, which eased accounting challenges for banks and financial institutions and encouraged the expansion of crypto custody services. Following this, US Bancorp CEO Gunjan Kedia announced at the Morgan Stanley US Financials Conference in June that the bank's crypto custody service was returning as regulatory clarity improved. She also noted that the current trend is shifting towards payments and stablecoins, which the bank is actively exploring through pilots and potential partnerships. With the relaunch, US Bank joins a small but growing group of traditional financial institutions competing with crypto-native firms in the custody space.
Galaxy Digital has partnered with fintech startup Superstate to launch tokenized shares of its equity on the Solana blockchain. This marks the first time a Nasdaq-listed company registered with the SEC has tokenized its shares on a major public blockchain. Superstate, a San Francisco-based company founded in 2023, specializes in creating tokenized investment products that bridge traditional finance with crypto markets. It operates the "Opening Bell" platform, which facilitates the issuance and trading of SEC-registered shares on blockchain networks.
The tokenization initiative allows Galaxy's public shares to be managed on-chain using Superstate's Opening Bell platform. Unlike other tokenized stock offerings that use wrapper or synthetic models, these tokens represent actual Galaxy Digital Class A Common Stock with full shareholder rights. The tokenized shares maintain full compliance while gaining the advantages of blockchain technology, including 24/7 market potential and near-instant settlement. Superstate serves as the SEC-registered transfer agent, recording legal ownership on-chain in real-time as tokens are transferred. Investors who complete KYC verification can purchase Galaxy Digital’s tokenized shares through Superstate’s Opening Bell platform. These shares, issued as Solana-based tokens, can be held in personal wallets and transferred between approved participants.
