Cryptocurrency ETFs rebound, MicroStrategy, XRP Investment Trust

The U.S. Securities and Exchange Commission (SEC) has issued an apology for the confusion caused by its use of the term “crypto asset securities” in the Binance case. This move came shortly after the SEC reached an agreement with eToro, mandating the platform to limit its crypto offerings to Bitcoin (BTC), Bitcoin Cash (BCH), and Ethereum (ETH), along with imposing a $1.5 million fine.

Recent data revealed a staggering 3,018% increase in fines imposed by the SEC on crypto companies over the past year. In 2024 alone, the agency collected $4.68 billion in fines from crypto firms, representing 68% of the total fines since its establishment.

In a positive turn of events, spot Bitcoin Exchange-Traded Funds (ETFs) saw a recovery last week. These products experienced net inflows of $28.6 million on September 9, ending an eight-day streak of losses. The following day, they recorded a significant four-fold increase in inflows, totaling $117 million.

Despite intraday outflows of $43.9 million on September 11, spot Bitcoin ETFs rebounded the next day. Overall, these ETFs witnessed four days of gains last week, accumulating total net inflows of $403.9 million.

In the realm of politics, Vice President Kamala Harris was favored over former President Donald Trump by Polymarket users following a debate between the two. Initially tied in election odds after the debate, Harris has since gained a slight edge with 51% odds compared to Trump’s 49%.

Meanwhile, former President Trump announced the upcoming launch of a new crypto project named World Liberty Financial on September 16. Approximately 70% of the World Liberty Financial token will be reserved for “insiders,” including Trump, raising concerns among experts about the venture’s intentions.

MicroStrategy, a business intelligence firm, expanded its Bitcoin holdings by acquiring an additional 18,300 BTC for $1.11 billion. This purchase brought their total Bitcoin holdings to 244,800 tokens, valued at $14.725 billion and yielding a profit of $5.27 billion on their initial Bitcoin investment.

In the wake of the Ripple vs. SEC lawsuit, Grayscale Investments introduced its Ripple (XRP) fund, aiming to provide accredited investors with exposure to XRP. This launch marks the initial phase of a four-step process for the investment product to potentially evolve into a fully-fledged Exchange-Traded Fund (ETF), following the footsteps of Grayscale’s Bitcoin and Ethereum ETFs.