KVANTS DAILY NEWSLETTER - JUL 29, 2025

Today, major crypto industry shifts include Bitmain launching a US-based ASIC chip factory amid heightened US-China tech tensions, and Cboe filing for a staked Injective ETF, signaling ETF market evolution. ARK Invest intensified its focus on direct crypto treasuries, notably with BitMine, while Bakkt moved to become a pure-play digital asset provider by selling its loyalty unit. Google searches and institutional interest in stablecoins surged following new US regulation, and South Korean parties raced to regulate won-based stablecoins.

Bitmain to open first US-based ASIC chip factory: Bloomberg

Bitmain, the dominant producer of application specific integrated circuit chips for Bitcoin mining, will launch its first United States manufacturing plant with production beginning in early 2026. The company also aims to establish a new headquarters in Texas or Florida by late 2025, a move designed to strengthen service and logistics for customers in the United States market. This development occurs amidst escalating trade tensions between the United States and China. LINK

IMPORTANCE

Bitmain’s decision to build a domestic manufacturing base in the United States is highly significant for the global Bitcoin mining industry, especially considering the firm’s dominant market share in ASIC hardware. Bitmain strategically mitigates geopolitical risks related to trade barriers, delivery delays, and regulatory uncertainty. This also positions Bitmain to benefit from ongoing US incentives for domestic high tech manufacture while supporting continuity of critical infrastructure for North American mining leaders such as MARA Holdings, Core Scientific, CleanSpark and Riot Platforms.

Cboe files to list staked Injective ETF from Canary Capital

Cboe has submitted a formal application to list Canary Capital’s staked Injective exchange traded fund, signaling the introduction of another innovative crypto ETF product in the United States. This ETF seeks to combine exposure to the price of the Injective token with the additional yield generated from staking rewards, utilizing an approved staking platform to facilitate these returns. The filing follows Canary Capital’s recent registration with the Securities and Exchange Commission for this product, making it a candidate to become the third staked crypto ETF in the country after similar products tracking Ethereum and Solana. LINK

IMPORTANCE

The growing pipeline of staked crypto ETFs in the United States highlights a significant maturation within digital asset markets, with regulated venues like Cboe positioning themselves at the forefront of this shift. By enabling investors to access both price exposure and staking yields within a compliant framework, these products could broaden participation and accelerate capital inflows into next generation blockchain ecosystems. The inclusion of Injective also marks diversification beyond the largest blockchains.

ARK Invest adds $20M in BitMine, trims Coinbase, Block, Robinhood holdings

ARK Invest has significantly increased its holdings in BitMine Immersion Technologies by acquiring over 570000 shares and investing more than 20 million dollars through its various ETFs. This move coincides with a reduction of exposure to Coinbase Block and Robinhood as ARK Invest undertakes a strategic reshuffling of its crypto-focused portfolio. BitMine recently publicized that its Ether holdings surpassed 2 billion dollars within just over two weeks positioning the firm as the top Ether treasury holder with more than 566800 ETH. LINK

IMPORTANCE

The shift by ARK Invest to allocate further capital into BitMine reflects growing institutional confidence in firms that hold significant reserves of Ether and are building infrastructure around the Ethereum network. This rebalancing indicates a tactical move to seek exposure to direct crypto asset treasuries rather than relying solely on intermediaries such as exchanges and traditional fintech platforms.

Bakkt sells loyalty business to focus on being ‘pure-play crypto’

Bakkt has finalized an agreement to sell its loyalty services segment for 11 million dollars to Project Labrador Holdco, a subsidiary of Roman DBDR Technology Advisors. The divestiture aligns with Bakkt's strategic move to concentrate solely on providing infrastructure for digital assets and focus its resources on the core aspects of crypto custody and trading. The transaction is structured with provisions for working capital, existing debt and a short term cash loan. LINK

IMPORTANCE

This development marks a significant shift for Bakkt as it pivots away from diversification toward specialization within the digital asset ecosystem. By offloading non-core operations, Bakkt aims to streamline its business, potentially boosting operational efficiencies and enhancing competitive positioning in the increasingly contested crypto infrastructure market. This move could signal a greater commitment to regulatory compliance and scalable crypto solutions as Bakkt concentrates capital and executive attention toward custody, trading and related services.

Google search volume for stablecoins hit peak amid ‘parabolic’ growth

Google search activity for stablecoins has reached unprecedented levels as the total stablecoin market capitalization achieved a record 270 billion dollars. This surge in online interest closely follows the recent enactment of the Guiding and Empowering Nations Innovation for US Stablecoins Act which catalyzed new supply issuance and prompted rising institutional engagement in launching fiat-based digital tokens. The current spike in engagement notably surpasses the previous search activity peak seen after the May 2022 depegging event of the Terra stablecoin. LINK

IMPORTANCE

The strong increase in search volume and capital flows toward stablecoins signals heightened public and institutional appetite for these digital assets in the post GENIUS Act landscape. Regulatory certainty now serves as a clear catalyst for both innovation and risk mitigation in the stablecoin space ultimately impacting both the liquidity dynamics and potential adoption of digital assets as transactional instruments.

South Korea’s Ruling, Opposition Parties Clash Over Stablecoin Regulation

South Korea's main political parties are advancing separate bills aimed at regulating Korean won based stablecoins, signifying heightened legislative focus on digital assets. The ruling and opposition parties are competing to introduce comprehensive legal frameworks that address the issuance, circulation and oversight of stablecoins as each party seeks to gain regulatory leadership. The latest proposal from the Democratic Party offers a dedicated approach to stablecoins while the People Power Party has indicated it will propose similar legislation imminently. LINK

IMPORTANCE

The competition between South Korea's leading parties to regulate stablecoins is an important milestone for both local investors and international stakeholders seeking predictable policies in major cryptocurrency markets. By moving quickly to develop specialized regulatory measures for won pegged stablecoins, South Korean lawmakers demonstrate both awareness of market growth and the risks associated with digital asset volatility.

US seeks to claim $2.4M in Bitcoin seized from ransomware group

The United States government has initiated legal action to seize 20.2 Bitcoin valued at approximately 2.4 million dollars from the Chaos ransomware group following an operation by the Dallas FBI. Authorities assert the Bitcoin was generated through illicit ransomware activities and this forfeiture supports efforts to create a proposed national strategic Bitcoin reserve. The Bitcoin was confiscated on April 15 and the complaint was filed in the Northern District of Texas. LINK

IMPORTANCE

The seizure highlights the increasing role of cryptocurrencies in both criminal activities and government asset management strategies. By attempting to recover and incorporate seized Bitcoin into a strategic reserve, US authorities are demonstrating an evolving approach to both deterrence and digital asset accumulation.

RAKBANK becomes the first UAE bank to offer crypto trading for retail

RAKBANK has launched a crypto brokerage service for retail customers by integrating with Bitpanda into its mobile banking app. This enables UAE residents to buy sell and swap popular cryptocurrencies directly using their dirham accounts in a secured and regulated environment. The move signals increased mainstream adoption of digital assets within the UAE's traditional financial system. LINK

IMPORTANCE

The integration by RAKBANK presents a significant milestone for the convergence of traditional banking and digital assets in a region known for its proactive regulatory stance toward crypto innovation. This breakthrough is particularly relevant as it demonstrates commitment by established financial institutions to expand beyond legacy offerings and meet customer demand for regulated crypto access. As more banks experiment with similar solutions, the UAE's reputation as a crypto friendly jurisdiction is likely to intensify.