Spot Bitcoin ETFs see $219M inflows after six-day outflow streak
Spot Bitcoin exchange-traded funds (ETFs) broke a six-day streak of outflows on Monday, recording $219 million in net inflows, according to ETF data provider SoSoValue. The rebound marks a positive shift in sentiment after investors had pulled billions from crypto funds in the past week.
The outflow trend began on August 15, coinciding with a correction in Bitcoin’s price following record highs. On August 14, Bitcoin reached a new all-time high of $124,128, but quickly fell 11% to around $110,186. Outflows peaked at $523.31 million on August 19, with another significant withdrawal of $311.57 million on Wednesday. These movements reflected heightened market uncertainty, largely tied to U.S. monetary policy.
Leading Monday’s recovery were Fidelity and BlackRock, whose ETFs attracted the largest inflows. Fidelity’s Wise Origin Bitcoin Fund (FBTC) added $65.56 million, while BlackRock’s iShares Bitcoin Trust (IBIT) pulled in $63.38 million. ARK Invest’s ARK 21Shares Bitcoin ETF (ARKB) also contributed strongly, with $61.21 million in inflows.
Other issuers saw more modest, but still positive, contributions. Bitwise’s BITB posted $15.18 million in inflows, while Grayscale’s Bitcoin Trust (GBTC) added $7.35 million and VanEck’s HODL ETF gained $6.32 million.
The return of inflows suggests investors may be regaining confidence after last week’s turbulence. Analysts pointed to shifting sentiment following comments from U.S. Federal Reserve Chair Jerome Powell. On Saturday, Powell delivered remarks that were widely interpreted as more dovish than expected, sparking optimism about a possible interest rate cut in September.
James Butterfill, head of research at CoinShares, explained that the prior week of heavy outflows, amounting to $2 billion, the largest since March, was driven by “increasingly polarized” sentiment around U.S. monetary policy. Investors concerned about high rates had turned risk-averse, but Powell’s comments appear to have eased those fears.
Reflecting this change, the Crypto Fear & Greed Index climbed to a reading of 60 on Saturday, placing it in the “Greed” category. This index, widely tracked as a gauge of crypto market psychology, indicated that investors were showing a stronger appetite for risk and more willingness to buy back into the market.
The renewed inflows into spot Bitcoin ETFs highlight the growing role of institutional products in shaping crypto market trends. With Fidelity and BlackRock leading the way, investor demand appears to be stabilizing despite ongoing volatility in Bitcoin’s price.
Source: Cointelegraph
Trump Media strikes $6.4B deal with Crypto.com to launch CRO treasury
Trump Media and Technology Group, the company behind Donald Trump’s Truth Social platform, has announced a landmark business combination with cryptocurrency exchange Crypto.com and blank check firm Yorkville Acquisition. The new entity, called Trump Media Group CRO Strategy, aims to become the largest publicly traded digital asset treasury focused on the Cronos (CRO) token.
According to Tuesday’s announcement, the company will be majority-owned by Trump Media, Crypto.com, and Yorkville. Its primary purpose is to build a digital asset treasury worth at least $6.42 billion, funded through a mix of cash, tokens, warrants, and credit facilities. Specifically, the funding includes $1 billion in CRO tokens, $420 million in cash and warrants, and a $5 billion credit line from a Yorkville affiliate.
The partners claim this will create the “first and largest publicly traded CRO treasury company” and potentially the “largest digital asset treasury-to-market-cap ratio in history.” Yorkville will apply to list its Class A shares on Nasdaq under the ticker symbol MCGA.
CRO Strategy’s business plan goes beyond simple token accumulation. The firm intends to allocate nearly all of its cash reserves into acquiring CRO, focusing on yield-generating assets rather than traditional cash holdings. Central to its approach is the establishment of a validator node on the Cronos proof-of-stake (PoS) blockchain. Operating this node will allow the company to directly participate in network security and governance while generating staking rewards. These rewards would then be reinvested to grow its CRO treasury further, while also attracting delegation from other CRO holders.
Cronos, developed by Crypto.com, launched in 2021 and was designed to support decentralized finance (DeFi), non-fungible tokens (NFTs), and metaverse applications. Crypto.com has emerged as a close Trump administration partner, having been among just 20 invitees at President Trump’s first White House Crypto Summit earlier this year. Trump Technology Group has also signed a non-binding agreement with Crypto.com to explore U.S.-based digital asset ETFs.
However, the deal faces skepticism. Crypto.com has been criticized for governance concerns, including reversing a planned 70 billion CRO token burn and allegedly controlling up to 80% of voting power. Noted on-chain investigator ZachXBT has accused the exchange of supply manipulation, calling CRO “no different from a scam.” In reaction to the Trump Media deal, ZachXBT also suggested Crypto.com had previously covered up a major incident without disclosure.
The Trump Media–Crypto.com partnership underscores both the growing ties between politics and digital assets and the controversies that continue to shadow major crypto projects.
Source: Cointelegraph
Kanye West’s YZY token collapse wipes out $75M, few wallets profit big
The launch of Kanye West’s YZY token, a Solana-based memecoin introduced earlier this month, has quickly turned into a high-profile example of the risks tied to celebrity-backed cryptocurrencies. Data from blockchain analytics firm Bubblemaps shows that a majority of investors lost money, with only a small number of wallets capturing outsized profits.
According to Bubblemaps, out of 70,201 total wallets that traded YZY, 51,862 or nearly 74% recorded losses. Collectively, these losses amounted to about $74.8 million. Over 1,000 wallets lost more than $10,000 each. In contrast, 18,333 wallets did make money, with combined profits exceeding $66.6 million. Yet most of these gains were relatively small: more than 86% of profitable wallets earned less than $1,000.
The largest profits, however, were highly concentrated. Nearly 30% of all gains went to just 11 wallets, with some profiting more than $1 million each. Bubblemaps and other observers suggest this distribution indicates insider advantages and automated “sniping,” a practice where bots purchase tokens immediately after launch to secure large portions of supply before retail investors can react.
YZY, short for “Yeezy Money,” was launched and promoted by West through his website and social media channels. The token claimed to empower users by removing centralized control over money. However, within hours of its debut, YZY’s value collapsed by almost 70%. Analysts attributed the crash to manipulation and early accumulation by insiders.
Bubblemaps pointed to two controversial figures connected to the launch. A pseudonymous trader known as “Naseem,” a notorious memecoin sniper who reportedly profited $100 million from Donald Trump’s token, was identified as YZY’s first investor. Another trader, Hayden Davis, linked to previous projects such as Libra that collapsed shortly after launching, was alleged to have made $12 million from YZY.
In a post on X, Bubblemaps criticized the recurring pattern in which the same actors exploit major token launches: “The playbook is simple: Infiltrate big launches, get in early, and extract millions. It’s happening in plain sight, and no one is stopping it.”
The fiasco underscores both the risks of speculative memecoin trading and the challenges regulators face in addressing manipulation in fast-moving crypto markets. Ironically, West had previously dismissed the idea of launching a token, warning that celebrity memecoins “prey on the fans with hype.” His eventual entry into the space, and the immediate crash of YZY, has reinforced skepticism about celebrity-driven crypto ventures.
Source: The Block