Big Buyers, the Golden Age of Crypto, Is ETH Dead, Whose Watching the Whales

Top Stories

Gone Whale Watching

The percentage of Bitcoin supply active within one year has risen to 37%, matching Ethereum and signaling converging activity trends between the two. This follows Galaxy’s facilitation of the largest over-the-counter Bitcoin sale in history, moving 80,000 BTC worth over $9 billion from a Satoshi-era holder dormant for 14 years. Despite the transaction’s massive size, Bitcoin’s price held steady around $118,000, highlighting improved market liquidity and distribution mechanisms. The event underscores the growing role of OTC desks in managing whale transactions while raising questions about dormant supply and the potential reactivation of long-held Bitcoin reserves.

Source: The Block

Ethereum Validator Exit Queue Hits Record Amid Aave Liquidity Shock

Ethereum’s validator exit queue surged to a record 744,000 as of July 26, driven by cascading effects from a liquidity shock on Aave. A sudden withdrawal of 167K ETH spiked Aave’s borrow rates to double digits, making popular stETH/LRT leverage trades unprofitable and forcing deleveraging. This prompted mass redemptions of stETH and LRTs through validator withdrawals, pushing stETH 0.3–0.6% below par and attracting arbitrageurs who further congested the queue. Additionally, EigenLayer’s reopening of deposit caps led operators to exit validators to restake, adding to the spike. Analysts expect the exit queue to normalize as Aave rates stabilize and stETH discounts close.

JPMorgan and Coinbase Partner to Streamline Crypto Access for 80M Customers

JPMorgan Chase and Coinbase announced a multi-part partnership to give 80 million Chase customers direct access to crypto services. The deal includes a bank-to-wallet API connection that bypasses third-party aggregators, the ability to buy crypto with Chase credit cards, and the option to convert Ultimate Rewards points into USDC. Set to roll out through 2025, the collaboration enhances data privacy, simplifies fund transfers, and marks the first time a major bank loyalty program can be used for stablecoin conversions. The move underscores deepening ties between traditional finance and crypto as JPMorgan expands its digital asset efforts despite CEO Jamie Dimon’s past skepticism.

Bitcoin Options Open Interest Hits $57B as Derivatives Demand Soars

Bitcoin options open interest has surged to nearly $50 billion on major crypto exchanges, with Deribit leading at $45 billion following its $2.9B acquisition by Coinbase. An additional $7 billion in options tied to Bitcoin ETFs, including IBIT, brings total exposure to over $57 billion, underscoring strong institutional and retail demand for structured Bitcoin products. This growth reflects the rising need for hedging and speculation tools among miners, institutions, and trading firms, signaling a maturing market for Bitcoin derivatives.

Regulation

Ethereum Treasury Firms Amass 1.26M ETH, Eye 10% Supply Share

Ethereum treasury firms have accumulated 1.26 million ETH since June, roughly 1% of the total supply, according to Standard Chartered’s Geoffrey Kendrick. This nearly matches the 2 million ETH inflows into Ethereum ETFs over the same period, marking a record buying streak. Kendrick predicts these holdings could expand to 10% of ETH’s supply, surpassing Bitcoin treasury companies’ current 4.4% share. He attributes the appeal to Ethereum’s staking rewards and DeFi opportunities, which ETFs cannot yet access. Companies like BitMine and SharpLink are leading this trend, with more firms expected to join as regulatory arbitrage opens the door for public treasury adoption.

White House Working Group Pushes for “Golden Age of Crypto”

The White House’s Working Group on Digital Asset Markets released a fact sheet outlining steps to usher in a “golden age of crypto.” Led by Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and SEC Chair Paul Atkins, the group urged Congress to expand the recently passed Digital Asset Market Clarity Act, while noting Senate Republicans’ competing version. It also called for rapid implementation of the GENIUS Act to establish stablecoin rules and recommended modernizing crypto tax policies to ease compliance. A full report detailed plans for a strategic bitcoin reserve and separate digital asset stockpile to be managed by the Treasury and funded with forfeited digital assets. Officials said work on these reserves is ongoing, with more details expected soon.

Corporate Crypto Treasuries Drive $165B Market Surge

The market capitalization of public companies holding cryptocurrency has jumped to $165 billion from about $90 billion at the start of 2024, reflecting growing investor interest in crypto-backed equities. This surge highlights a shift in corporate treasury strategies, with firms increasingly adopting digital assets as balance sheet holdings. Many of these companies trade at a premium multiple of Net Asset Value (mNAV), driven by market confidence in professional crypto management and institutional credibility. Treasury vehicles also provide large token holders with an alternative to selling on exchanges, enabling equity swaps for better liquidity and price stability. This trend strengthens the bridge between traditional finance and crypto, though long-term sustainability depends on execution and underlying asset performance.

BitcoinTreasuries.net

SEC Launches “Project Crypto” to Modernize U.S. Financial Markets

Less than a year after Gary Gensler’s resignation, new SEC Chair Paul Atkins announced “Project Crypto,” a sweeping initiative to modernize U.S. financial markets with on-chain activations and DeFi integrations. Atkins, joined by Commissioner Hester Pierce, framed the project as a generational opportunity to make the U.S. the “crypto capital of the world,” aligning with the Trump administration’s broader digital asset agenda. The initiative aims to replace regulation-by-enforcement with clear rules for crypto assets, including frameworks for new issuances and tokenized securities. Atkins sharply criticized the prior administration’s “Operation Chokepoint 2.0” and pledged to bring crypto businesses back to the U.S. This marks one of the most significant policy shifts in the SEC’s approach to digital assets to date.

Other Domestic Regulation Updates

• Nasdaq-listed vape stock soars 600% after $500M BNB treasury move
• PayPal expands crypto reach with PYUSD-powered payments
• Sen. Lummis introduces bill requiring Fannie Mae and Freddie Mac to consider crypto as an asset for mortgages
• The Ether Machine adds 15,000 ETH to surpass Ethereum Foundation's holdings
• US appeals court overturns Nathanial Chastain's fraud and money laundering conviction in OpenSea case
• Strategy Could Buy as Much as 7% of Bitcoin Supply, Says Michael Saylor

Other International Regulation Updates

• Coinbase re-enters top 10 public bitcoin treasury companies with 2,509 BTC buy
• Analysts cheer Strategy's record Q2 as bitcoin treasury pioneer celebrates its 'iPhone moment'
• Metaplanet plans $3.7 billion stock issuance by 2027 to fund bitcoin accumulation
• Ethereum ETFs Massively Outpace Bitcoin Funds—Why ETH Demand Is Surging
• Metaplanet Plans $3.7B Stock Raise to Fuel Massive Bitcoin Buying Spree
• Former Chancellor Osborne Warns UK Is ‘Completely Left Behind’ on Crypto

Pain & Gain

Pain

• HYPE fades as Hyperliquid experiences brief outage
• XRP and Dogecoin Erase Explosive Weekly Gains—Should Traders Worry?

Gain

• Linea unveils native ETH yield, burn mechanisms ahead of token rollout
• CryptoPunks Rally Past $200K Floor for First Time in Over a Year Amid NFT Rebound
• Myriad Protocol Rolls Out Expansion to Ethereum L2 Linea