KVANTS DAILY NEWSLETTER - JUL 23, 2025

Today, regulatory shifts and institutional adoption are accelerating in the crypto sector: CoinShares’ MiCA license cements EU leadership; spot Ether ETFs draw over $4B, signaling a move beyond Bitcoin; and 21Shares seeks to bridge DeFi with traditional markets via an ONDO ETF filing. DigitalX increases its Bitcoin treasury, while South Korean regulators urge reduced crypto exposure, highlighting divergent national approaches. The Bank of England reconsiders CBDCs, SEC's abrupt ETF pause for Bitwise reflects U.S. regulatory uncertainty, and a major crypto scam case exposes procedural and compliance risks amid high-profile legal scrutiny.

CoinShares secures French MiCA license, cementing EU presence

CoinShares has achieved a new milestone by securing a Markets in Crypto Assets Regulation license via its French subsidiary, CoinShares Asset Management. This development recognizes CoinShares as the first regulated asset management company in continental Europe to qualify under the new MiCA framework, enhancing its operational footprint within the European Union. The firm has also expanded its reach into the United States since 2023. LINK

IMPORTANCE

This move represents a significant competitive advantage for CoinShares in a rapidly evolving regulatory landscape in Europe, providing both first mover leverage and credibility as MiCA becomes the standard across EU markets. Attaining this qualification positions CoinShares to attract institutional capital and structured products clients who demand regulatory certainty and robust compliance, which are increasingly critical for onboarding large scale investment. The combination of its newly formalized EU credentials and strategic push into the US market reinforces CoinShares as a transatlantic player.

Spot Ether ETFs attract $533M, extend 13-day inflow streak to over $4B

Spot Ethereum exchange traded funds registered 533 million US dollars in net inflows in a single day, marking the thirteenth consecutive trading session of positive flows and pushing cumulative net inflows past 4 billion US dollars. BlackRock's iShares Ethereum Trust attracted the largest share with over 426 million US dollars in new investment while Fidelity also saw strong participation, further confirming rising institutional interest in Ethereum. LINK

IMPORTANCE

This wave of capital into spot Ether ETFs marks a structural shift in the digital asset landscape, representing a broadening of institutional exposure beyond Bitcoin and cementing Ethereum's role as a primary vehicle for capital allocation in crypto portfolios. The outsized flows into BlackRock and Fidelity offerings highlight robust investor confidence. For institutional investors and asset managers, the persistence of sizable ETH ETF inflows offers both tactical and strategic signals for portfolio construction

21Shares files with SEC for spot ONDO ETF

21Shares has submitted a preliminary prospectus to United States regulators to launch an exchange traded fund that will directly hold ONDO tokens from the Ondo Finance platform. The proposed vehicle will track the price performance of the token using the CME CF Ondo Finance Dollar Reference Rate with Coinbase acting as the custody provider for held assets. This fund is structured as a passive investment product with no active speculation. LINK

IMPORTANCE

The filing by 21Shares represents a significant step in bridging decentralized finance assets into traditional financial markets through regulated structures. If approved by the Securities and Exchange Commission this could set precedent for future ETFs based on emerging blockchain projects and digital assets beyond established cryptocurrencies. This product enhances access to ONDO for institutional and retail investors.

ASX-Listed DigitalX Leans Into Bitcoin Treasury Strategy With Latest $8.8M Buy

DigitalX has expanded its Bitcoin reserves by acquiring approximately 8.8 million dollars worth of the asset, bringing its total holdings close to 500 Bitcoin. This move puts DigitalX among a new wave of publicly listed firms that are diversifying corporate treasuries with digital assets as a hedge and value proposition. LINK

IMPORTANCE

DigitalX's increasing investment in Bitcoin marks a notable endorsement for the asset class within the corporate world, signaling further normalization of digital assets on public balance sheets. This news points to a wider acceptance of Bitcoin beyond speculative trading, with potential long term implications for corporate risk management and portfolio diversification practices.

South Korean regulator urges asset managers to limit crypto exposure

South Korea’s Financial Supervisory Service delivered informal guidance to asset managers urging them to curtail significant positions in equities related to crypto companies such as Coinbase and firms linked to the digital asset sector. This caution comes amid an evolving regulatory landscape as authorities aim to reduce systemic risk within local portfolios. Although this advice is not a formal order, the structure of South Korean passive exchange traded funds adds complexity since constituent changes require consent from index providers. LINK

IMPORTANCE

The advisory stance from the Financial Supervisory Service underscores heightened regulatory sensitivity regarding digital asset exposure within institutional portfolios. For investment managers, it signals an increased focus on compliance and may prompt preemptive internal reviews of portfolio allocations to crypto adjacent equities, especially as market volatility and international spillover risks remain top concerns.

Bank of England mulls canning CBDC plan: Report

The Bank of England is reexamining the value of launching a central bank digital currency as doubts increase about its necessity and effectiveness for the UK economy. Recent internal communication suggests that Governor Andrew Bailey and other top officials are becoming more open to letting commercial banks and private sector innovations drive improvements in digital payments rather than proceeding with a state backed digital pound. LINK

IMPORTANCE

This consideration by the Bank of England signals a significant pivot in central bank strategy and has notable implications for the digital payments landscape both in the UK and globally. By emphasizing private sector led innovation over government led digital currencies the UK could foster more rapid advancements in payments technology. Institutional stakeholders are monitoring how the Bank of England's changing posture affects regulatory discussions investment priorities and the competitive dynamics between incumbent banks and fintech disruptors.

SEC approves, then instantly pauses Bitwise’s ETF conversion

The United States Securities and Exchange Commission granted swift approval for Bitwise to transform its crypto index fund into an exchange traded fund, allowing it to potentially enter broader financial markets. However, only hours later the agency suddenly paused this conversion, placing the process under further review and effectively freezing Bitwise’s plans. LINK

IMPORTANCE

This development signifies that US regulators remain cautious about the full integration of crypto products into mainstream investment vehicles. The abrupt change in the SEC’s stance signals ongoing internal debates about digital asset oversight and hints at the unresolved status of crypto regulations in the United States. Institutional investors seeking crypto exposure through ETFs must interpret this as proof that regulatory unpredictability is a key risk in the space.

DOJ Blames Court Error After Trump-Linked Crypto Scam Docket Briefly Sealed

Jeanine Pirro serving as interim US Attorney for the District of Columbia attributed a brief sealing of the entire federal court docket in a prominent crypto investment scam case to clerical errors by court staff, instead of the intended action to shield only a particular company name. The case involves a 225 million dollar cryptocurrency forfeiture, described as the largest ever by the US Secret Service, tied to allegations of fraudulent investment operations and scams allegedly benefiting individuals with links to Donald Trump. LINK

IMPORTANCE

This event exposes administrative vulnerabilities in handling sensitive legal proceedings with substantial reputational and financial implications for both regulatory bodies and implicated parties. The inadvertent sealing of the entire docket instead of specific confidential information raises broader concerns about transparency and public trust in judicial processes, especially during politically charged investigations. The record cryptocurrency forfeiture underscores emerging systemic risks in digital asset markets.

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