Weekly Update: 25th of July
What happened between the 17th and the 25th of July?
- Trump signs GENIUS Act for fully backed stablecoins with monthly audits and protection for holders under federal legislation, with the goal to strengthen the position of the US dollar. Read more
- Institutional Ethereum reserves surpass $7 billion, as 61 companies add well over 2 million ETH to their reserves, a doubling in approximately one month. Read more
- Goldman and BNY Mellon launch tokenized money-market funds, focused on more efficient settlement, fractional ownership and collateral management. Read more
- Crypto ETFs continue steady development with record inflows for ETH, new altcoin ETF applications and potential in-kind redemptions for institutional investors. Read more
Trump signs GENIUS Act for stablecoin regulation
On July 17, the U.S. House passed three key crypto bills, including the GENIUS Act, the Anti-CBDC Surveillance State Act, and the Digital Asset Market Clarity Act. The GENIUS Act, signed into law on July 18, mandates full one-to-one backing of payment stablecoins with liquid assets and establishes a hybrid federal and state oversight framework. This provides much-needed clarity for institutional players and enhances consumer protection, paving the way for widespread adoption through banks, corporates and asset managers.
The move is expected to attract a broad wave of entrants, with companies like Tether and Circle having already demonstrated the profitability of stablecoin issuance. However, the Act also restricts the issuance of interest-bearing stablecoins, a regulatory challenge that will push market participants to develop alternative yield strategies.
Strategic Ethereum reserves surpass $7 billion
Institutional Ethereum holdings have crossed a significant milestone, exceeding $7 billion in value, represented by over 2 million ETH, approximately 1.55% of total supply. This surge signals growing institutional conviction, supported by accumulation across 61 identified organizations.
While part of the increase is attributable to price appreciation, even when adjusting for ETH price, the number of ETH held has more than doubled since June 8. A notable strategic trend. We expect institutional interest in Ethereum to grow further in the coming months, as a wide range of DeFi activity, including the largest stablecoin issuers, continues to concentrate on the Ethereum network.
Goldman Sachs and BNY Mellon launch tokenized funds
On July 23, Goldman Sachs and BNY Mellon launched tokenized money-market funds via BNY’s LiquidityDirect platform and Goldman’s private blockchain. Supported by financial giants including BlackRock, Fidelity and Federated Hermes, this initiative digitizes fund ownership into blockchain-based tokens.
Benefits include faster settlement, fractional ownership and more efficient collateral management. However, these tokenized funds are currently limited to institutional clients and operate on permissioned infrastructure. This contrasts with BlackRock’s BUIDL fund, which is live on Ethereum and accessible on public infrastructure. Despite these differences, both models signal growing momentum in integrating blockchain into traditional finance.
ETF market continues steady evolution
Ethereum spot ETFs saw record inflows of $2.18 billion last week, pushing the two-week cumulative total to nearly $4 billion. A rotation trend emerged, with several days showing Bitcoin ETF outflows offset by Ethereum ETF inflows.
Additionally, five major ETF issuers (Ark, VanEck, Fidelity, Invesco and WisdomTree) have filed amendments with the SEC to allow in-kind creations and redemptions, a structure common in equity ETFs that enhances tax efficiency and appeal to institutional investors. Meanwhile, new filings for altcoin ETFs continue to emerge, including 21Shares’ application for an Ondo ETF. This diversification indicates a maturing market and broadening institutional demand.
In other digital assets news
- Trump Media revealed it has added over $2 billion in Bitcoin to its corporate reserves.
- The launch of the PUMP token experienced high volatility, ending with a roughly 50% price drop.
- The UK is reportedly considering the sale of $7 billion in seized Bitcoin. Germany executed a similar sale last year, with Bitcoin doubling in value since.
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