Arp's Crypto Digest

General Digital Asset Market View:

The recent decline in price coincides with nearly $1 billion in outflows from U.S.-listed spot Bitcoin ETFs at the start of August, including $812 million pulled in a single day (Aug 1), the second-largest daily outflow of the year. These outflows ended July’s bullish streak and may indicate rising investor caution. Still, broader market sentiment remains mixed: the SEC’s approval of in-kind mechanisms for BTC/ETH ETFs, along with new ETF listing frameworks by NYSE, Cboe, and Nasdaq, suggest long-term institutional confidence. Additionally, the U.S. government’s recent pro-crypto rhetoric, including the SEC’s launch of “Project Crypto,” could support a long term relief.

Macro:

Trade announcements will continue to be the main theme at least through August 7th when the new US tariffs are set to take effect. Otherwise, the week ahead features high frequency economic activity indicators in the US and Europe, trade and inflation in China and wages in Japan. Another notable event will be the BoE decision due Thursday.

More Crypto:

Ethereum’s share of open interest has climbed to nearly 40% — the highest level since April 2023.

Only 5% of trading days have seen a stronger reading.
It’s a clear signal of shifting market focus, as capital slowly moves from $BTC toward $ETH.

Google Trends shows that search interest in stablecoins reached a record high in July.

The spike coincides with the market’s $272B cap and the U.S. approval of the GENIUS Act, a regulatory milestone for dollar-pegged assets.

Today, 98% of stablecoins are USD-linked, with Tether commanding 60% of supply.

What Happened This Week:

• Coinbase bought $222M in Bitcoin in Q2 2025.

• SEC Chair Paul Atkins says his top priority is setting clear crypto regulations.

• SEC launches ‘Project Crypto’ to position the U.S. as the global crypto capital.

• The Ether Machine adds 15,000 ETH ($57M), surpassing Ethereum Foundation holdings.

• FED holds interest rates steady.

What to Look Out For:

• Kalshi shows 81% odds of a Fed rate cut in September.

• SEC to hold crypto roundtables nationwide.

• Strategy files $4.2B offering to buy more Bitcoin.

• SEC approves in-kind creation and redemption for Bitcoin and Ethereum ETFs.

• JPMorgan partners with Coinbase to simplify crypto purchases.

What we enjoyed reading and listening to:

• Beyond Bitcoin: Ethereum as a Corporate Treasury Asset — Link

• Bitcoin TreasuryCos: Lessons From The 1929 Crash — Link

• Do You Want To Be Right, Or Do You Want To Be Wrong In Public? — Link

• Your Next Computer Will Be on Your Face — Link

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