Crypto Currents: Institutions buy in as global crypto regulation tightens

As Bitcoin navigates market crosscurrents and the broader crypto landscape undergoes rapid evolution, legal, institutional, and technological developments are constantly 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, available to subscribers at TheFly.com. Also, subscribe to our YouTube channel for the Crypto Currents Fly By weekly recap.

INSTITUTIONS FORGE AHEAD: Despite a complex regulatory environment, institutional money continued to pour into the digital asset space this week. U.S. Bitcoin spot ETFs saw a surge of confidence, with over $500M in net inflows on a single day. Fidelity’s FBTC and BlackRock’s IBIT led the charge, pulling in $166M and $153M, respectively. Corporate adoption also hit major milestones, as design software powerhouse Figma (FIG) revealed in its IPO filing a significant holding of $70M in Bitcoin ETFs. Over in Europe, the trend was just as strong. Germany’s largest financial group, Sparkassen, announced it plans to provide cryptocurrency trading to its retail customers by summer 2026, while banking giant Deutsche Bank (DB) is proceeding with its initiative to introduce a crypto custody service in the same year.

A WEEK OF REGULATORY RECKONING: Regulators and lawmakers globally made their presence felt this week. In the United States, New York Attorney General Letitia James publicly urged Congress to enact more robust federal regulations to bolster investor protections. On the enforcement side, the U.S. Treasury Department sanctioned a cryptocurrency wallet identified in connection with a ransomware attack, signaling a tougher stance on illicit activities. In another move toward greater oversight, stablecoin issuer Circle is pursuing a U.S. National Trust Bank charter. Internationally, Turkey’s Financial Crime Investigation Board announced strict new rules for crypto platforms, requiring detailed source and purpose checks for transactions. In contrast, the European Union’s new MiCA regulations are fostering growth, attracting exchanges like Bybit and OKX to broaden their services in the region.

RIPPLE’S DUAL STRATEGY: Ripple, the company behind XRP, was at the center of two major developments this week. In a move that could finally end a years-long legal saga, the company dropped its cross-appeal against the U.S. Securities and Exchange Commission. In a separate, major strategic push, Ripple announced it is applying for a national bank charter from the OCC and a Fed Master Account. This forward-looking move aims to allow Ripple to hold reserves for its stablecoin directly with the Federal Reserve, a strategy designed to set a new benchmark for trust in the stablecoin market.

BRIDGING TRADITIONAL AND DECENTRALIZED FINANCE: The trend of merging traditional assets with blockchain technology gained serious momentum. In a pioneering move, U.S. company Everything Blockchain (EBZT) announced its intention to become the first publicly-traded OTC firm to fully tokenize its stock on a blockchain. In a similar development that brings a major traditional asset onto the blockchain, shares of the prominent chipmaker Nvidia (NVDA) are now tradable on the Solana (SOL) blockchain in the form of tokenized stocks. On the consumer front, Bitget Wallet partnered with Mastercard (MA) and Immersve to launch new zero-fee crypto cards, aiming to simplify the process of using crypto for daily purchases.

PRICE ACTION: As of the time of writing, Bitcoin (BTC) was trading at $109,489.79, while Ethereum (ETH) was trading at $2,573.89,