Crypto Currents: SEC greenlights first multi-asset spot ETF

As positive regulatory news fuels market strength, the broader crypto landscape undergoes rapid evolution, with legal, institutional, and technological developments constantly reshaping the financial world. Stay up on the crypto news that matters with “Crypto Currents,” daily from The Fly. Join us at 2 PM daily for your essential briefing on the fast-moving world of cryptocurrency on FlyCast radio, available to subscribers. Also, subscribe to our YouTube channel for the Crypto Fly By weekly recap.

A MAJOR REGULATORY BREAKTHROUGH: The digital asset space celebrated a landmark decision from the Securities and Exchange Commission today. In a move that significantly advances crypto adoption on Wall Street, the SEC officially approved an application from Grayscale Investments to convert its Digital Large Cap Fund into a spot ETF. This development is monumental as it marks the first multi-asset spot crypto ETF in the United States. While investors have flocked to single-asset products since their launch, this new fund provides exposure to a diversified basket of top-tier cryptocurrencies through a single, regulated investment vehicle. The news comes as Washington prepares for “Crypto Week,” which was announced for next week. A key congressional exchange is being held today to help shape U.S. strategy on A.I. and crypto, setting the stage for crucial legislative debates.

INSTITUTIONAL APPETITE GROWS: The market has responded with a show of strength to these positive developments. Following a brief weekend dip, Bitcoin (BTC) is holding steady above the $108,000 mark. This stability is underpinned by clear indicators of sustained institutional demand. BlackRock (BLK) announced a significant milestone for its iShares Bitcoin Trust, which has now surpassed 700,000 Bitcoin in assets under management, underscoring the unabated appetite that began with the launch of spot Bitcoin ETFs earlier this year. In a further sign of evolving corporate strategy, U.S.-based miner Bit Digital (BTBT) announced a pivot to an Ethereum-focused treasury. The company plans to liquidate a portion of its Bitcoin holdings to purchase Ethereum (ETH), a move that highlights a growing trend of institutions diversifying their digital asset holdings beyond Bitcoin.

DEFI GETS AN UPGRADE: The decentralized finance sector received a major technological boost today. Uniswap, a leading decentralized exchange, announced its new “Uniswap X” protocol. This next-generation system is designed to aggregate liquidity from various on-chain sources to provide users with superior pricing on trades. The protocol also introduces features for gas-free swaps and crucial protections against Maximal Extractable Value, or MEV, a persistent issue that has long plagued DeFi traders by exploiting transaction ordering.

PRICE ACTION: As of the time of writing, Bitcoin (BTC) was trading just above $108,000, while Ethereum (ETH) was trading at approximately $2,500.