Ethereum ETFs close week in red, end 5-day inflow streak
Ethereum exchange-traded funds ended a five-session run of daily net inflows, according to SoSoValue data. Over the five sessions beginning July 17, those Ethereum funds had taken in $211.25 million on a net basis. Even with that daily streak ending, Ethereum ETFs recorded $103.9 million in net inflows for the week ended Friday. The same claim set says Ethereum ETFs stretched their weekly inflow run to three straight weeks. It also states that these funds have brought in $337.74 million in net inflows so far in July. Bitcoin ETFs registered a second straight day of outflows, while also extending their weekly net inflow streak to three weeks. A related claim says Bitcoin ETFs had ended a seven-day inflow streak on Thursday before posting $240.08 million in net outflows on Friday. For the week ended Friday, Bitcoin ETFs added $103.90 million in net inflows. The supplied claims also say Bitcoin ETFs have accumulated $233.96 million so far in July. In the same material, US-listed ETFs are described as representing most assets and trading volumes, despite similar funds having launched in places including Hong Kong.
Bitcoin is now fighting the ECB’s €51.8 billion bond wall for a shrinking pool of capital
The ECB left its three key interest rates unchanged, with the deposit facility at 2.25%, the main refinancing rate at 2.40%, and the marginal lending facility at 2.65%. The July decision also preserved the 25-basis-point increase made in June, and the ECB said its APP and PEPP portfolios would keep shrinking as principal from maturing securities passed through without reinvestment. For the month, the ECB listed expected redemptions of €27.039 billion in APP and €24.714 billion in PEPP, giving a combined €51.753 billion, while noting that the realized value may differ as securities mature and accounting adjustments move through the portfolios. Official monthly figures showed the APP and PEPP holdings fell by a combined €39.447 billion in June. Weekly data further indicated that the two portfolios were down by about another €31.1 billion by July 17. The ECB has said that when a bond it holds reaches maturity, the issuer repays the Eurosystem, and reinvestment of that payment would return the central bank to the bond market as a buyer. A bond that rolls off reduces the ECB’s assets and places more of the replacement debt with private investors. The effect on banking system reserves depends on how each repayment and refinancing transaction settles. The portfolio effect is described as more direct because private investors must hold more government debt as the ECB gradually withdraws recurring demand. Banks in the EU still held ample reserves, and the ECB characterized the balance-sheet decline as measured and predictable.
North Korea arrests hackers accused of laundering stolen funds from country's bank via crypto
North Korean authorities arrested former military hackers accused of taking state funds from two banks and laundering the proceeds through cryptocurrency. A Daily NK report, citing an anonymous source in Pyongyang, said the group allegedly penetrated the internal systems of the Central Bank of the DPRK and the Foreign Trade Bank. That report said they diverted foreign-currency and state trade funds and transferred the money to overseas crypto wallets. According to the report, North Korea’s National Intelligence Agency detained the suspects at a safe house in Pyongyang on July 12. The same account said officials had identified irregularities in foreign-currency payment approvals and suspicious IP activity from overseas before the arrests. Daily NK also said Chinese brokers converted the digital assets into U.S. dollars and yuan. It said contacts in the border cities of Sinuiju and Hyesan allegedly swapped the cryptocurrency for cash in real time. The report added that the transfers were broken into small amounts to reduce detection risk and that encrypted messaging apps, unregistered phones, and Chinese wireless equipment were used. A multinational sanctions-monitoring report said Chinese over-the-counter traders and financial institutions play a central role in turning crypto stolen by Pyongyang-linked operators into fiat currency. The report on the arrests could not be independently verified.
Bitcoin Policy Institute, Palantir and Anduril join US State Department’s Freedom Tech Excellence Program
The State Department has introduced the Freedom Tech Excellence Program, identified as FTEP, and named the Bitcoin Policy Institute, Palantir Technologies, Anduril Industries, and the Victims of Communism Memorial Foundation among its founding partners. FTEP is described as a talent-exchange arrangement within the State Department that places private-sector employees into diplomatic work. A government announcement issued Friday said the program is aimed at diplomatic efforts concerning digital freedom and freedom of expression. The Bitcoin Policy Institute said Friday on X that FTEP brings private-sector experts such as BPI into the department for work on online freedom of expression, privacy-enhancing technologies, countering digital surveillance, and responsible AI governance. The State Department said assignments may also involve protecting First Amendment principles online and addressing online scams, along with other stated goals. The department wrote that private-sector participants receive firsthand exposure to foreign policy and development while contributing specialized skills in areas where the department may not have enough internal expertise. According to the announcement, participating employees will serve limited-term assignments and will remain employees of their home organizations. The agency said the program does not provide a route to full-time government employment. BPI says it was launched in 2021 and describes itself as a non-profit, non-partisan think tank focused on advancing Bitcoin policy through research, education, and direct engagement with policymakers. A separate claim identifies David Zell as president of the Bitcoin Policy Institute.
Morgan Stanley Bitcoin ETF Nearly Notches $400M in Assets
Morgan Stanley’s Bitcoin exchange-traded fund has accumulated a little under $400 million in assets under management since its April launch. Farside Investors data says the product drew $15.7 million of new money this week. One claim states that investors were withdrawing money from Bitcoin ETFs this week, while Morgan Stanley’s fund still attracted inflows. Another claim says Bitcoin ETF products in the United States took in $274 million over the past seven days after earlier weeks of outflows. The NYSE Arca-listed fund is described as the first ETF by a bank, and it collected more than $33 million in fresh cash on its debut day. A separate claim puts the fund’s current asset total at more than $391 million. Until Thursday, the funds had logged almost $1 billion across seven days, and then every ETF posted outflows except Morgan Stanley’s product. In 2021, Morgan Stanley began giving wealthy clients Bitcoin exposure through funds including offerings from Galaxy Digital. Last year, chief executive and chairman Ted Pick said the bank was working with regulators on how it could provide crypto safely. In April, Morgan Stanley head of digital assets Amy Oldenburg said the main challenge for Bitcoin adoption was educating clients rather than designing products.
Reader comments