ETF Inflows Strengthen, Grayscale Withdraws Filings

Weekly market review

The week opened to the downside: on Monday 3 August bitcoin opened at $63,497 but slipped to $62,643 in morning trading, even though the United States had announced on Sunday that it was suspending planned strikes on Iran.

The geopolitical relief was not enough to turn sentiment, as regulatory gridlock and security concerns weighed on the market. Ether moved in step, falling from $1,883 to $1,841.

Friday's turn after the jobs data

The turning point came on Friday 7 August, when the July employment report showed the economy had lost 23,000 jobs instead of the roughly 80,000 gain that had been forecast, with the unemployment rate rising to 4.1%.

The weak labour data reduced expectations of a Fed rate hike, and futures markets priced in roughly a 56% probability of a pause at the 16 September meeting. Bitcoin rose as high as $65,300 after the release and ended around $64,940, some 2.8% above the previous week. Ether strengthened at the same time towards $1,910. (Reuters)

ETF flows stayed strong

In the week of 3–7 August, bitcoin spot ETFs gathered $854 million in net inflows and Ethereum spot ETFs $245 million, marking a fifth consecutive positive week.

Solana, XRP and HYPE spot ETFs also saw net inflows: $144,900, $1.01 million and $2.84 million respectively. Demand clearly broadened well beyond bitcoin and ether. (CoinDesk)

Grayscale withdrew three ETF filings

According to SEC filings, Grayscale submitted three Form RW notices on 7 August, withdrawing the S-1 registration statements for planned ETF products tied to its Cardano, Hedera and Polkadot trusts.

The withdrawal suggests that demand for smaller-altcoin ETF products has so far fallen short of issuer expectations. Investors should keep the basics of diversification in mind as the product range shifts.

FCA prepares a framework for tokenised gold

According to the Financial Times, the UK regulator FCA is in discussions with major banks and other industry participants about a regulatory framework for tokenised gold.

The framework could allow tokenised gold to be used as collateral in wholesale markets, with standards expected in the coming months. London accounts for roughly 70% of global gold trading volume, and the UK is seeking to improve market efficiency through tokenisation.

NYSE is building an on-chain settlement platform

NYSE CEO Lynn Martin said the exchange is developing an on-chain settlement platform for tokenised securities and took part in the DTC tokenisation pilot in July.

According to Martin, NYSE continues to explore the technology as core infrastructure for global financial markets and as a bridge between traditional finance and decentralised finance. (The Block)

Empery Digital trims its bitcoin treasury

According to CryptoSlate, bitcoin treasury company Empery Digital sold 1,635 BTC for about $102.2 million between 1 July and 6 August, reducing its total holdings to 1,279 BTC.

Of those, 954 BTC are pledged against $35 million of debt, leaving only 325 BTC unencumbered, down from 1,375 BTC at the end of June. The company also faces a possible $62.1 million payment obligation related to a data-centre property acquisition, tightening the balance sheet further.

Looking ahead

The overall picture turned positive: a weakening labour market raised expectations of easier monetary policy, and institutional flows returned strongly to both bitcoin and ether.

At the same time the product range is thinning out for smaller altcoins while traditional finance builds its own tokenisation infrastructure. Attention now turns to the 16 September rate meeting. For the bigger picture, use our complete guide to crypto investing.

Keep stacking — with discipline.