Uncertainty in Crypto Markets: Sales and New Regulations

Weekly Crypto Bulletin: Environment of Uncertainty and Its Consequences

The atmosphere of uncertainty that has drawn investors' attention has triggered significant sales in the crypto markets recently. Following the sales from the U.S., Bitcoin (%BTC%) has lost 5.8% of its value in the past week, raising concerns among investors. This decline has also caused the total value of crypto assets to decrease by 6.2%.

Staking Permission for Crypto ETFs

The U.S. Department of the Treasury and the IRS published new guidance allowing crypto ETFs to engage in staking. This change will enable spot ETFs tracking proof-of-stake assets like Ethereum (%ETH%) and Solana to stake on behalf of investors and directly pass on the returns to clients. The regulation provides significant clarity in the market by allowing the distribution of staking revenues without corporate tax risk. Treasury Secretary Scott Bessent emphasized that this regulation supports innovation and strengthens the U.S.'s leadership in digital assets. Additionally, major fund managers are reportedly preparing to include staking options in ETF prospectuses.

Key Developments of the Week

• Throughout the week, there were outflows of $1.1 billion from Spot Bitcoin ETFs and $728 million from Spot Ethereum ETFs.
• The first spot ETF tracking Ripple (%XRP%) was successfully launched by Canary Capital and traded with a volume of $58 million on its first trading day.
• Uniswap (%UNI%) is preparing to implement the anticipated protocol fee changes with the "UNI fication" governance proposal presented by Uniswap Labs and the Uniswap Foundation.

Reasons for the Market Decline

The leading asset custody platform kpk announced that its protocols have started to operate on Morpho. Morpho has gained 11.7% in the last 7 days. However, the Plume network, which reached a DEX volume of $35.9 million in October, declined to only $1.5 million by mid-November, drawing investors' attention. PLUME has experienced a loss of 37.3% in the last 7 days, remaining 76.1% away from its October peak.

The information contained herein does not constitute investment advice and is for informational purposes only.