Crypto Currents: Institutional buying continues as D.C. clashes over crypto week

As Bitcoin holds firm after significant on-chain movements and the broader crypto landscape undergoes rapid evolution, diverging regulatory paths, unabated institutional adoption, and constant technological innovation are reshaping the financial world. Stay up on the crypto news that matters with “Crypto Currents,” daily from The Fly. Join us 2PM daily for your essential briefing on the fast-moving world of cryptocurrency on FlyCast radio. Also, subscribe to our YouTube channel for the Crypto Currents Fly By weekly recap.

INSTITUTIONAL AND CORPORATE ADOPTION ACCELERATES: Global financial giant Standard Chartered (SCBFF) made a landmark move by officially launching a spot Bitcoin (BTC) and Ethereum (ETH) trading desk in London, providing its institutional clients with direct access to digital assets. The institutional floodgates appear to be open, as BlackRock (BLK) reported that its crypto-focused funds saw net inflows surge by an astonishing 370% in Q2. Corporate treasuries are also taking a more aggressive stance. MARA Holdings (MARA) acquired an equity stake in digital asset manager, Two Prime, that includes 2,000 Bitcoin for a yield strategy, while crypto miner Bit Digital (BTBT) announced plans to raise $67.3M to purchase more Ethereum. Capping the trend, SharpLink Gaming (SBET) was also reported to have acquired $73M in Ethereum through Coinbase (COIN) Prime.

A GLOBAL REGULATORY DIVIDE: Lawmakers and regulators worldwide are taking decisive, but starkly different, actions. In the United States, Representative Maxine Waters has come out in strong opposition to a slate of pro-crypto bills being debated this week, warning they could “open the floodgates to fraud” and creating a contentious environment for “Crypto Week” in Washington. The international scene is equally dramatic. Hungary’s parliament passed a new law that criminalizes unauthorized crypto trading with potential two-year prison sentences. In sharp contrast, a South Korean court acquitted a former CEO of gaming company Wemade on charges of token manipulation, providing a degree of relief to the local industry and showcasing a vastly different regulatory philosophy.

MAJOR ON-CHAIN MARKET MOVERS: The blockchain itself told some of the biggest stories this week. The crypto world was captivated by the movement of approximately $4.6B in Bitcoin from a “Satoshi-era” wallet that had been dormant for 14 years, sparking widespread speculation. In a related and highly significant transaction, that same whale wallet transferred over $2B worth of Bitcoin to an institutional custody account at Galaxy Digital (GLXY). Analysts note this move suggests a sophisticated financial strategy rather than simple selling pressure, pointing to a maturation of how large, early holders are managing their assets.

INNOVATION AND RISK IN THE ON-CHAIN ECOSYSTEM: The pace of technological development continues to accelerate. In a major step for interoperability, a new protocol named Tac launched its mainnet, creating a bridge between the Ethereum and The Open Network (TON) ecosystems, potentially linking Telegram’s user base with DeFi. This innovation is not without risk, as DeFi protocol Arcadia Finance was exploited for $3.5M on the Base Layer-2 network.

PRICE ACTION: As of the time of writing, Bitcoin (BTC) was trading at $118,329.72, while Ethereum (ETH) was trading at $3,065.01.