Crypto Currents: Strategy buys $1.25B more bitcoin

The digital asset landscape is seeing a divergence between corporate accumulation and institutional caution. While Strategy continues its aggressive acquisition strategy and major banks prepare to enter the brokerage space, investment products are facing significant outflows amid shifting monetary policy expectations. Stay up on the crypto news that matters with “Crypto Currents,” daily from The Fly. Join us at 2 PM ET for your essential briefing on the fast-moving world of cryptocurrency on FlyCast radio.

STRATEGY BUYS ONE BILLION DOLLARS IN BITCOIN: Strategy (MSTR) has executed a massive acquisition, purchasing another $1.25B worth of bitcoin (BTC-USD). In a regulatory filing, the company announced the addition of 13,627 bitcoin to its treasury last week. This strategic move cements the firm’s position as the largest corporate holder of the asset, pushing its total holdings near the 690,000 BTC mark.

STANDARD CHARTERED DEVELOPING CRYPTO BROKERAGE: Bloomberg reports that Standard Chartered (SCBFF) is creating a crypto prime brokerage platform to service institutional demand. Despite this infrastructure build-out, the bank has simultaneously lowered its near-term price forecasts for ether (ETH-USD), citing a cautious market outlook.

COINBASE FIGHTS BANKS ON STABLECOIN YIELDS: A conflict is brewing between crypto platforms and the banking sector over yield-bearing products. Bloomberg reports that Coinbase (COIN) is resisting pressure from banks regarding its stablecoin reward programs. This dispute underscores the competitive tension as crypto firms offer yields that rival traditional banking services. Meanwhile, analysts at Bernstein believe the political window for passing a crypto market structure bill is currently open, though the debate over stablecoin rewards remains a primary obstacle.

SEC DELAYS T ROWE PRICE AND PENGU DECISIONS: The regulatory approval process for new investment vehicles faces further delays. The SEC has extended its decision deadlines for ETFs proposed by PENGU and T. Rowe Price (TROW). Furthermore, the regulator has opened a comment period regarding Grayscale, extending the timeline for potential spot market product approvals.

CRYPTO PRODUCTS SEE MILLIONS IN OUTFLOWS: Institutional sentiment has dampened amid shifting monetary policy expectations. Weekly outflows from crypto exchange-traded products hit $454M as hopes for Federal Reserve easing began to fade. Data from CoinShares suggests that the broader market pullback is causing institutional capital to retreat temporarily.

BITGO TARGETS VALUATION IN IPO LAUNCH: In the private markets, crypto custodian BitGo is preparing to go public. The company has launched an IPO targeting a valuation of $1.96B. 

PRICE ACTION: At the time of writing, bitcoin (BTC-USD) is trading at $92,043.99 and ether (ETH-USD) is trading at $3,127.53, according to price data from TipRanks.