Here are highlights of last week’s crypto industry developments: Bitcoin ETFs rebound after recovering lost capital; the US SEC apologizes for “confusion” around “crypto assets securities”; MicroStrategy buys more Bitcoin as XRP trust launches.
US SEC Apologizes for “Crypto Assets Securities” Tag
Last week, the US Securities and Exchange Commission (SEC) filed an amended complaint in the Binance lawsuit apologizing for classifying certifying specific cryptocurrencies in the case as "crypto asset securities." The withdrawn term had reportedly confused issues surrounding the case.
The development occurred only 24 hours after the SEC finalized an agreement with eToro that restricted the trading platform's crypto offerings. eToro can only facilitate trading in Bitcoin (BTC), Ethereum (ETH), and Bitcoin Cash (BCH) while bagging a $1.5 million fine.
A recently released report showed that SEC fines on crypto firms grew significantly by 3.018% in the past twelve months. In 2024 alone, the regulatory body collected $4.68 billion worth of fines from crypto firms, a staggering 68% of the regulator's total fines since its establishment.
Bitcoin ETFs Recover After Losing Capital
Spot Bitcoin ETFs made significant gains last week, recording $28.6 million in net inflows on September 9, ending an eight-day losing streak. Twenty-four hours later, spot Bitcoin ETFs registered a 400% increase in inflows equivalent to a $117 million total.
Introduced investment products on September 11 led to intraday outflows of $43.9 million. However, the next 24 hours witnessed a rebound, adding up to four green days last week and a total cumulative net inflows of $403.9 million.
Finally, MicroStrategy Buys More Bitcoin as XRP Trust Launches
Business intelligence company MIcroStrategy boosted its Bitcoin stash last week as the CEO Michael Saylor announced the acquisition of 18,300 BTC for $1.1 billion. The most recent acquisition marked the firm’s largest BTC acquisition since 2021.
Based on the purchase, MicroStrategy's total BTC stash now stands at $14.725 billion as it seeks to build on its BTC profit margin of $5.27 billion. Following Saylor's announcement on the purchase, MicroStrategy shares jumped more than 8% on Friday. Over the last week, MicroStrategy shares were up 24% for the week and are now 124% in 2024.
The 1989-founded company has subsidiaries in enterprise software and cloud-based service but has shifted most of its value to its BTC ownership, making it a proxy for the world's largest cryptocurrency by market capitalization. No other BTC corporate holder has more of the asset than MicroStrategy.
In another development, Grayscale Investments launched its Ripple (XRP) Trust fund only one month after the final ruling in the Ripple vs SEC suit. The funds aim to provide accredited investors exposure to XRP.
Grayscale's XRP Trust launch is the first of four phases of investment products experience before becoming a full-fledged ETF. The investment firm took the same steps in launching its Bitcoin and Ethereum ETFs.
Final Thoughts
A recap of last week's crypto news highlights saw MicroStrategy expand its BTC holdings by 18,300 BTC worth $1.1 billion, Grayscale launch its Ripple (XRP) Trust Fund, Bitcoin ETFs recover lost capital while the SEC apologizes for the "confusion" it caused by tagging certain virtual assets as crypto assets securities.