Quick Take

• ETH open interest reached an all-time high of US$70.13 billion; Crypto.com Custody enabled staked assets as collateral for margin trading; Crypto.com partnered with the VeChain Foundation to provide secure custody support
• US spot BTC ETFs had a net outflow of $1.2 billion last week compared to a net inflow of $548 million the week before. Spot ETH ETFs saw a net outflow of $241 million in the same period, compared to a net inflow of $2.9 billion the week before.
• On the macro side, US Fed Chairman Powell mentioned that the current outlook “may warrant” adjustments to the Fed’s policy stance. The latest CME FedWatch Tool showed an 87% probability of a rate cut in September, compared to 85% the week before. S&P Global's flash US Composite PMI Output Index accelerated to 55.4 in August, higher than July’s 55.1, signaling broad-based growth, especially in the manufacturing sector. The Reserve Bank of New Zealand reduced interest rates by 0.25% to 3.00%. 
• Notable updates: Polkadot launched Polkadot Capital Group to connect traditional finance to the Polkadot ecosystem; Aave went live on Aptos.
• Notable events in the coming week: US Core Personal Consumption Expenditures Price Index

Weekly Market Index

Price and volume indices were down by -1.72%, and -10.70%, respectively, last week.  The volatility index was up by +58.74%.

Most tokens retraced earlier in the week as investors braced for uncertainties around the US FOMC minutes and Powell’s speech. Prices rallied after Powell signalled the possibility of an interest rate cut. 

BTC (+54.05%) and ETH (+47.14%) led the increase in volatility. ETH reached an all-time high above $4,900 over the weekend. 

Chart of the Week

ETH reached an all-time high above $4,900 on 25 August, breaking its previous price record set in 2021. Its rally was driven by institutional adoption, ETF inflows, and major corporate treasury accumulation, with around a 67% increase in strategic ETH holdings by public companies week-over-week. This signals growing confidence in ETH as a treasury asset. 

Aggregated open interest for ETH futures also reached a record $70.13 billion on August 23, indicating strong bullish sentiment among derivatives traders. 

Weekly Performance

Top-cap tokens showed mixed price changes last week. BTC decreased by -2.5% and ETH increased by +10.7%, respectively. 

SOL and ETH led the price increase. The European Central Bank is reportedly considering building the digital euro on a public blockchain like Ethereum or Solana.

Most key categories decreased in market capitalisation in the last seven days, except for DeFi.

Notable Updates

News Highlights

Crypto.com News 

• Crypto.com Custody enabled the use of staked assets as collateral for margin trading, doubling their utility on yield-bearing assets. Staked assets are held in secure custody with multiple assets being supported, including CRO, ETH, and SOL. This service is available in select jurisdictions. 
• Crypto.com partnered with the VeChain Foundation to provide secure custody support for VeChain (VET) and VeThor (VTHO), the native tokens of the VeChainThor blockchain. This collaboration expands institutional access to the VeChainThor network.

Adoption

• The European Central Bank is reportedly considering building the digital euro on a public blockchain, such as Ethereum or Solana, shifting away from private networks. 
• The Wyoming Stable Token Commission introduced the Frontier Stable Token (FRNT) stablecoin, the first US state-issued stablecoin. It is fully collateralised and backed by short-term US Treasury bills and US dollars. It is Visa-supported and available on seven blockchains. 
• State Street joined JPMorgan’s tokenised debt platform, Digital Debt Service, as its first third-party custodian. It aims to bring on-chain debt securities custody to institutional clients. 

Investment Vehicles

• VanEck filed with the US Securities and Exchange Commission (SEC) to launch the VanEck JitoSOL ETF, the first US ETF tied to a Solana liquid staking token. 
• DBS Bank issued tokenised structured notes on Ethereum to widen access for investors. Instead of having a typical $100,000 minimum investment, these notes are issued in $1,000 denominations and are more flexible for investors. 
• SBI Holdings partnered with Startale to launch an on-chain tokenised stock and real-world asset platform that offers 24/7 trading. The company also partnered with Circle and Ripple to promote adoption of the USDC and RLUSD stablecoins. 

Regulation

• US SEC Chair Paul Atkins reaffirmed support for ‘Project Crypto’, aimed at attracting crypto businesses to the US and to embrace innovation. He also made comments that most crypto tokens are not securities by their nature. 
• China is reportedly weighing the launch of yuan-backed stablecoins to promote global use of its currency, including catching up with the US’s push on stablecoins. The State Council may review and approve a roadmap later this month. 
• The US Commodity Futures Trading Commission (CFTC) launched its second ‘Crypto Sprint; initiative, seeking public input on spot crypto market regulation. The move aligns with recommendations from the President’s Working Group on Digital Asset Markets to advance the administration’s crypto agenda. 
• The US House inserted a ban on a Federal Reserve central bank digital currency into its defense policy bill for the 2026 fiscal year. In July, it passed a similar bill, the Anti-CBDC Surveillance State Act, which was passed to the Senate.
• Japan's Financial Services Agency (FSA) is considering a flat 20% tax on crypto trading profits as part of broader tax reforms, down from the current progressive tax rate of up to 55%. The change could make it easier for the launch of domestic crypto ETFs.

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