Cointelegraph

Exchange-traded fund issuers Bitwise and GraniteShares have filed with the US Securities and Exchange Commission to launch funds tied to event contracts on the outcome of US elections.

Bitwise filed a prospectus on Tuesday for a new lineup of ETFs branded as PredictionShares, with six prediction market-style ETFs on NYSE Arca.

The first two funds will pay out if either a Democrat or a Republican wins the U.S. presidential election in November 2028. The next two will pay out if either Democrats or Republicans win the Senate in November 2026, and the final two if either party wins the House.

“The fund’s investment objective is to provide capital appreciation to investors in the event that a member of the Democratic Party is the winner of the US Presidential election taking place on November 7, 2028,” read the prospectus.

Each fund invests at least 80% of its net assets in binary event contracts, or political prediction market derivatives traded on CFTC-regulated exchanges. These contracts settle at $1 if the referenced outcome occurs and $0 if it doesn’t. 

“In the event that a member of the Democratic Party is not the winner of the 2028 Presidential election, the fund will lose substantially all of its value,” it explained. 

Source: James Seyffart

Betting on a prediction market wrapped in an ETF 

In essence, Bitwise is offering separate ETFs for each race — one for each party — and investors can choose which one to buy into. 

The price of each fund’s shares on any given day reflects the market’s implied probability of that outcome, fluctuating between $0 and $1 based on polling, news, and sentiment.

Related: Prediction markets are the new open-source spycraft

ETF issuer GraniteShares also filed a prospectus on Tuesday offering six similar funds with the same structures based on US election outcomes. 

“The financialization and ETF-ization of everything continues,” commented Bloomberg ETF analyst James Seyffart.

Not the first prediction market-style ETF filings

“This is not the first filing of this kind, and I think it's extremely unlikely that these will be the last,” added Seyffart, in reference to the Roundhill filing for similar funds on Feb. 14.

The Roundhill prospectus also offers six prediction market-style ETFs based on the outcomes of the presidential, Senate, and House elections. 

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Blockchain advocacy group The Digital Chamber has launched a new unit focused on supporting prediction markets and helping gain regulatory clarity for the sector in the US. 

In an announcement via X on Tuesday, The Digital Chamber unveiled the Prediction Markets Working Group, outlining a multi-year plan to bring clarity to what it called a “misunderstood segment of finance.” 

The Digital Chamber said the first course of action was sending a letter to Commodity Futures Trading Commission (CFTC) chairman Mike Selig praising his efforts to maintain federal jurisdiction over prediction markets, while also calling for an end to regulation by enforcement.

“In our letter, we applauded Chair Selig’s recent statements regarding the intent for CFTC staff to provide tailored rulemaking and guidance for this rapidly growing segment of the financial and digital asset industries,” The Digital Chamber said. 

“For too long, operators in this space have navigated a maze of regulatory ambiguity including unclear overlaps between federal and state regulators,” it added. 

Source: The Digital Chamber 

Moving forward, the group plans to continue engaging with the CFTC, develop policy principles, submit policy recommendations, publish research and build a coalition of industry stakeholders and participants. 

It also mentioned “participating in litigation” via friend-of-the-court briefings to educate courts on what it deems the “CFTC’s historic regulatory exclusivity” over the sector.

Prediction markets are heading to court 

The move comes amid intense scrutiny of the sector from state governments and regulators. 

Kalshi, one of the leading prediction market platforms, was hit with a civil enforcement action by the Nevada Gaming Control Board on Tuesday. The gaming board is calling for an injunction to stop Kalshi from offering “unlicensed wagering” in the state. 

Both Kalshi and competitor Polymarket have seen multiple state regulators push to stop them from offering markets such as sports contracts in their respective states, arguing that they are offering unlicensed gambling products.  

Last week, Polymarket filed a federal lawsuit against the state of Massachusetts to preemptively block any potential enforcement action, arguing that the CFTC has primary oversight over the sector, not state governments. 

Related: Prediction markets should become hedging platforms, says Buterin

The CFTC chair has also been echoing such sentiments recently, urging state governments to respect the CFTC’s authority and oversight over the sector or risk facing them in court. 

“Prediction markets aren’t new — the CFTC has regulated these markets for over two decades,” Selig emphasized in a video posted to X on Monday.   

Responding to Selig on Tuesday, Utah Governor Spencer Cox welcomed any possible legal stoushes with the CFTC, labeling prediction markets as a form of gambling, which is “destroying the lives” of Americans. 

“Mike, I appreciate you attempting this with a straight face, but I don’t remember the CFTC having authority over the ‘derivative market’ of LeBron James rebounds. These prediction markets you are breathlessly defending are gambling—pure and simple.”

Magazine: Big questions: Should you sell your Bitcoin for nickels for a 43% profit? 

Crypto industry lobby Coin Center has sent a letter to the US Senate Banking Committee urging it to follow through with a bill that seeks to prevent well-intended crypto developers from being prosecuted. 

The Blockchain Regulatory Certainty Act (BRCA) was first introduced by House Representative Tom Emmer in September 2018, with a new version of the bill written last month by Senators Cynthia Lummis and Ron Wyden to clarify that software developers and infrastructure providers who do not control user funds are not money transmitters under federal law.

Coin Center policy director Jason Somensatto’s letter to the Senate Banking Committee, which he shared on Tuesday, further stated that blockchain innovation cannot thrive in the US when developers face constant threats of prosecution and that they deserve the same legal protections as ordinary internet developers.

Source: Coin Center

“This is the same type of activity conducted every day by internet service providers, cloud hosting services, router manufacturers, browser developers, and email providers,” he said, adding that “we do not threaten those actors with prison when a criminal uses the internet, sends an email, routes traffic, or uploads files.” 

“The same principle must apply to blockchain developers.”

Somensatto added that the “BRCA ensures that the next Satoshi Nakamoto, Vitalik Buterin, or Hayden Adams is able to develop the very systems that a market structure bill is designed to promote and protect.”

Coin Center is a Washington, DC-based non-profit think tank and advocacy center that focuses on public policy issues related to crypto and decentralized technologies.

Several crypto developers convicted in the US last year

Its push for crypto developer protections to coincide with the CLARITY Act comes amid several high-profile convictions of crypto developers last year.

Those convictions include Tornado Cash developer Roman Storm and Samourai Wallet founders Keonne Rodriguez and Will Lonergan Hill. 

All three were convicted of conspiracy to operate an unlicensed money-transmitting business in 2025. Rodriguez and Lonergan Hill were sentenced to five years and four years in prison, respectively, in November, while Storm is awaiting his sentencing date.

Weakening BRCA provisions could deter developers

The Senate Banking Committee is still reviewing the latest BRCA draft. It has not been marked up or voted on yet.

Somensatto said removing or even weakening provisions of the BRCA would lead to legal uncertainty for crypto developers, potentially deterring well-intended developers from operating in the US and pushing them offshore.

Magazine: How crypto laws changed in 2025 — and how they’ll change in 2026

Trading platform eToro jumped more than 20% after reporting better-than-expected fourth-quarter earnings, with revenue coming mainly from its crypto services.

The company reported on Tuesday that its Q4 net income increased 16% from a year ago to $68.7 million, with earnings per share at 71 cents compared to analyst expectations of 60 cents.

Fourth-quarter revenue came in at $3.87 billion, falling 40% from the prior-year period, with its crypto revenues making up the bulk of its earnings at $3.59 billion.

The earnings beat bucked eToro’s main crypto rivals, Coinbase and Robinhood, whose Q4 earnings both missed expectations as their revenues took a hit amid a crypto market crash late last year.

Meanwhile, eToro’s full-year 2025 revenue rose more than 9% from 2024 to $13.84 billion, while its net income jumped 12% year-on-year to $215.7 million. Its full-year crypto revenue was $13 billion, up nearly 7% from 2024.

Shares climb on Q4 beat, CEO says it will catch crypto wave

Shares in eToro (ETOR) ended trading on Tuesday up 20.4% to $33.07 on the company’s earnings beat, making it one of the best-performing crypto stocks for the day. The stock fell slightly after-hours to $33.

Shares in eToro were among the best-performing crypto stocks on Tuesday. Source: Google Finance

eToro CEO Yoni Assia said it is “a pivotal moment for financial services” as artificial intelligence and the increasing use of blockchain infrastructure are “reshaping how people invest and interact with markets.”

“eToro is uniquely positioned to capture this opportunity,” he said. “We are positioning eToro for a financial system that is increasingly moving on-chain. With our long-standing leadership in crypto and tokenization, we are well placed to help shape this transition.”

Assia told investors on an earnings call that eToro was seeing some of its crypto-focused customers “suddenly trading commodities” for the first time.

“There's somewhat of a convergence or a shift from crypto, which now has lower volatility, to now basically gold, silver, and other commodities that have higher volatility,” he said.

Meanwhile, the company said that its crypto trading volume in January was down 50% from last year, with 4 million crypto trades over the month, and that the amount invested per trade had also dropped 34% to $182.

However, the total number of trades last month was up 55% year-over-year to 74 million, with the amount invested per trade up 8% to $252.

Magazine: Sharplink exec shocked by level of BTC and ETH ETF hodling — Joseph Chalom

Decentralized SocialFi platform Zora has launched its new attention markets platform on Solana, allowing traders to speculate on which buzzwords, hashtags, trends and topics will go viral online.

“Trade what’s trending. Take positions on any topic, idea, meme, or moment before it breaks,” Zora’s newly launched platform states. 

One of Zora’s founders, Jacob Horne, said on Tuesday that it costs 1 Solana (SOL), currently $85, to deploy a “Trend,” aimed at disincentivizing spam. Trends have no creator rewards.

Zora is also enabling “Pairs” to be created under a Trend, which does offer creator rewards.

In a promotional video, Zora referenced the $redlight and $coldplunge pairs under the $longevity trend, as an example.

BREAKING: Zora launches attention markets on Solana

You can now start markets and take positions on any trending topic, idea, meme, or momentpic.twitter.com/55c8tM5QnB

— Solana (@solana) February 17, 2026

Traders are already testing the app, with “attentionmarkets,” “longevity,” “cats,” “dogs,” “bitcoin” and “aigirlfriend” among the most-traded tickers so far.

Dashboard of leading attention market trends. Source: Zora

The attention markets platform enables users to trade Trends and Pairs like ordinary tokens, with a dashboard to track user profits and losses in real-time.

The ZORA token responded positively to the announcement, rising 6.2% to $0.022 over the last 24 hours, while the broader crypto market retraced 1.2% over the same timeframe.

The launch of Zora’s attention markets coincides with the rapid rise of prediction markets, which are now consistently surpassing $10 billion in monthly trading volume and increasingly being marketed into the mainstream.

Meanwhile, Zora posted a job listing on Monday for an “Attention Economist,” looking for someone who lives on the internet and sees “what’s next before it has a name” by tracking cultural movements across the likes of TikTok, Instagram Reels, YouTube Shorts and X.

Base community criticizes Zora’s Solana integration

The Solana integration disappointed some members of the Base community, because Zora moved much of its activity from its native platform to Base last year and launched its first token on the network in April.

Zora also assisted with the launch of Creator Coins linked to Base profiles in July, which even helped Base overtake Solana in daily token creation activity later that month.

Related: Base App sunsets Creator Rewards to double down on trading 

Jacek Trociński, the developer of Base memecoin Degen, said it was “really disappointing” to see Zora “pivot” to launch the attention markets platform on Solana.

“After getting support from the entire @base team for the better part of a year, they capitulated the second the trade changed. Low conviction, questionable morals, rinse users and repeat”. 

“We had to put up with your… stuff for 9 months, extracted every penny from Base with a broken model and now a final pivot to a pump clone on Solana,” Veil Cash builder Apex777.eth said.

Zora listed the Zora (ZORA) token on Solana in January, and Zora’s X profile location now shows up as “Solana.” It also hasn’t made a post about Base in several months. 

However, it has not provided any public statement to suggest it is moving on from Base. Cointelegraph reached out to Zora for comment, but did not receive an immediate response.

Magazine: IronClaw rivals OpenClaw, Olas launches bots for Polymarket — AI Eye

Key takeaways:

Institutional sentiment is shifting toward ETH as elite funds reallocate capital from Bitcoin to Ether ETFs.

BlackRock’s ETH ETF pairs secure staking with a low 0.25% fee, creating a major win for mainstream crypto access.

Dominance in the $20 billion real-world asset sector proves that big money prioritizes network security over low gas fees.

Ether (ETH) has failed to reclaim the $2,500 level since Jan. 31, leading traders to question what might spark sustainable bullish momentum. Investors are waiting for definitive signs of a favorable sentiment shift; meanwhile, three distinct events could signal the end of the bear cycle that bottomed at $1,744 on Feb. 6.

US-listed Ether spot ETFs daily net flows, USD. Source: CoinGlass

At first glance, the $327 million in net outflows from spot Ether exchange-traded funds (ETFs) in February is mildly concerning. The apparent lack of institutional appetite while ETH sits 60% below its all-time high could be seen as a lack of confidence in the $1,800 support level. However, these outflows represent less than 3% of the total assets under management for Ether ETFs.

Recent Ether ETF milestones may boost ETH's price

While investors currently focus almost exclusively on short-term flows, the magnitude of recent Ether ETF developments will eventually reflect positively on ETH price. In bearish markets, positive news is often ignored or downplayed, but strategic moves from the world’s largest asset managers can quickly flip investor risk perception.

The latest US Securities and Exchange Commission filings revealed on Monday that the Harvard endowment fund added an $87 million position in BlackRock’s iShares Ethereum Trust during the final quarter of 2025. Interestingly, this vote of confidence arrived as Harvard reduced its iShares Bitcoin Trust holdings to $266 million, down from $443 million in September 2025.

Latest notable iShares Ethereum Trust ETF holding changes. Source: Marketbeat

In parallel, BlackRock amended its Staked Ethereum ETF proposal on Tuesday to include an 18% retention of total staking rewards as service fees. While some market participants criticized the hefty fee, the ETF sponsor must compensate intermediaries like Coinbase for staking services. Moreover, the relatively low 0.25% expense ratio remains a net positive for the industry.

The final piece of evidence pointing to growing institutional adoption lies in real world asset (RWA) tokenization, a segment that has surpassed $20 billion in assets. Ethereum stands as the absolute leader, hosting offerings from BlackRock, JPMorgan, Fidelity, and Franklin Templeton. This intersection of blockchain applications and traditional finance could trigger sustainable demand for ETH.

RWA aggregate onchain market capitalization, USD. Source: DefiLlama

Nearly half of the $13 billion in RWA deposits on Ethereum represent tokenized gold, though investments in US Treasurys, bonds, and money market funds grew to an impressive $5.2 billion. By comparison, the combined RWA listings on BNB Chain and Solana amount to $4.2 billion—a strong indicator that institutional money is less concerned with fees and more focused on security.

Related: Tokenized RWAs climb 13.5% despite $1T crypto market drawdown

Even if RWA issuers currently focus on closed-end systems using exclusive decentralized finance pools or their own layer-2 networks, intermediaries will eventually find ways to connect with the broader Ethereum ecosystem. Crypto venture capital firm Dragonfly Capital’s latest $650 million funding round signals a strong appetite for tokenized stocks and private credit offerings.

Rather than backing layer-1 blockchains and consumer-focused applications, investors are directing capital toward RWA infrastructure, institutional custody, and trading platforms—a clear sign of market maturation. Although it is difficult to predict how long these shifts will take to impact Ether’s price, these events clearly indicate that a bounce back to $2,500 in the near term is feasible.

Stablecoin platform Bridge, owned by the payments processor Stripe, said it had received conditional approval to operate as a federally chartered national trust bank under the US Office of the Comptroller of the Currency (OCC).

In a Tuesday notice, Bridge said it had received conditional approval from the banking regulator, allowing the company to “operate stablecoin products and services under direct federal oversight” once fully approved. Bridge said the charter would allow it to offer custody of digital assets, issue stablecoins and manage stablecoin reserves.

“Our compliance framework already positions Bridge to be GENIUS ready,” said the company, referring to the stablecoin bill signed into law in July 2025. “Now achieving a national trust bank charter will provide our customers the regulatory backbone they need to build with stablecoins confidently and at scale.”

Source: Bridge

Bridge is one of several crypto-aligned companies seeking a national trust bank charter from the OCC following the passage of the GENIUS Act. In December, the agency conditionally approved applications from BitGo, Fidelity Digital Assets and Paxos to convert their respective state-level trust companies, and conditionally approved Circle and Ripple for national trust bank charters.

Related: Bankers push OCC to slow crypto trust charters until GENIUS rules clarified

According to OCC records, Bridge applied for a bank charter in October and was given approval on Feb. 12. Stripe acquired the platform in 2025 as part of a $1.1 billion deal for the company to support stablecoin payments.

In a Wednesday letter, the American Bankers Association (ABA) urged the OCC to slow its approval of crypto companies for national bank trust charters, saying rules under the GENIUS Act were still unclear. According to the banking group, companies could use national trust charters to essentially bypass oversight by US financial regulators.

“[…] ABA strongly encourages OCC to be patient, not measure its application decisioning progress against traditional timelines, and allow each charter applicant’s regulatory responsibilities to come fully into view before moving a charter application forward,” said the letter.

US policymakers still considering how to handle stablecoin rewards

As US lawmakers in the Senate advance bills to establish a comprehensive digital asset market structure framework, White House officials continue to meet with representatives from the crypto and banking industries to address stablecoin yield. Addressing stablecoins within the market structure bill, as well as issues related to tokenized equities and conflicts of interest, could be a sticking point for many lawmakers ahead of a potential vote in the Senate.

Magazine: IronClaw rivals OpenClaw, Olas launches bots for Polymarket — AI Eye

Dutch payments company Quantoz Payments has become a principal member of Visa, enabling it to issue virtual debit cards backed by its regulated e-money tokens and sponsor third-party fintechs seeking to offer stablecoin-linked payment products across Europe.

Under the agreement, Quantoz will be able to issue Visa-branded virtual cards tied to balances held in its USDQ, EURQ and EURD e-money tokens, allowing users to spend those funds online, in stores and through mobile wallets.

The company will also act as a BIN sponsor, enabling fintech partners to embed card issuance directly into their platforms.

Quantoz holds an Electronic Money Institution license from the Dutch central bank and issues its tokens as regulated electronic money within the European Economic Area, with reserves held 1:1 in safeguarded accounts through a bankruptcy-remote foundation structure. The company said it is also required to maintain at least an additional 2% reserve buffer on its balance sheet.

Quantoz and Visa did not disclose a launch date for the first card programs or name any fintech partners that will use the infrastructure. The partnership is focused on the European market.

Big payment networks racing to integrate stablecoins

As major payment networks compete to integrate stablecoins into mainstream finance, Visa has expanded its capabilities through new settlement integrations and cross-border pilots, while Mastercard is weighing acquisitions to accelerate its onchain infrastructure strategy.

In July, Visa broadened its stablecoin settlement platform to support Global Dollar (USDG), PayPal USD (PYUSD) and Euro Coin (EURC), while adding integration with the Stellar and Avalanche blockchains, allowing institutions to move supported stablecoins across those networks or convert them into fiat through Visa’s infrastructure.

In September, the company launched a Visa Direct pilot enabling banks to pre-fund cross-border payments with USDC and EURC, aiming to support near-instant payouts while reducing the need to park capital in advance. 

The following month, Visa said it would expand support to four stablecoins across four separate blockchains, with CEO Ryan McInerney telling investors that Visa plans to continue growing its stablecoin capabilities after increased activity over the past fiscal year.

Unlike Visa’s expansion through pilots and network integrations, Mastercard appears to be pursuing a more acquisition-driven strategy to deepen its stablecoin infrastructure.

Rather than building each onchain component internally, Mastercard is evaluating the purchase of a turnkey provider that could be integrated into its existing payments network.

Magazine: Did a Hong Kong fund kill Bitcoin? Bithumb’s ‘phantom’ BTC: Asia Express

HIVE Digital Technologies delivered a record fiscal third quarter despite weaker Bitcoin prices, suggesting that its expansion into artificial intelligence and high-performance computing is offsetting broader crypto-market headwinds.

For the quarter ended Dec. 31, 2025, HIVE reported $93.1 million in revenue, a 219% increase from a year earlier. Gross operating margin expanded more than sixfold year over year to $32.1 million, representing about 35% of revenue.

The strong performance came even as Bitcoin (BTC) prices declined about 10% during the quarter and network difficulty rose about 15%, conditions that have pressured mining margins across the industry following the 2024 halving.

HIVE generated 885 Bitcoin during the period, a 23% quarter-on-quarter increase, while scaling its installed hashrate to 25 exahashes per second (EH/s).

Beyond mining, the company continues to build out its AI and high-performance computing (HPC) business. In February, HIVE signed a two-year, $30 million contract to deploy 504 Nvidia B200 GPUs for enterprise AI cloud services.

The deal is expected to add about $15 million in annual recurring revenue and lift HIVE’s HPC annualized revenue run rate by about 75%.

The company is targeting $140 million in annual recurring AI cloud revenue by the fourth quarter of 2026, as part of a broader plan to scale total HPC revenue to $225 million as it expands GPU cloud and colocation capacity.

HIVE Digital’s stock was down more than 2% on Tuesday. Source: Yahoo Finance

HIVE’s expansion beyond Bitcoin mining gains traction

HIVE was among the early publicly listed Bitcoin miners, but it began pivoting toward HPC infrastructure several years ago as management anticipated increasing competition and margin compression in the mining sector.

That diversification has become increasingly relevant. Mining profitability deteriorated sharply after the 2024 halving reduced block rewards, while rising network difficulty and volatile Bitcoin prices added further pressure. The environment intensified after Bitcoin retraced from its October 2025 highs, forcing many miners to reassess capital allocation and infrastructure strategy.

HIVE’s “dual-engine” model, using Bitcoin mining as a cash-flow generator while building recurring AI and HPC revenue, reflects a broader shift among publicly traded miners seeking stability beyond Bitcoin’s price cycles.

Source: Joe Nakamoto

Several other Bitcoin miners, including IREN and TeraWulf, have shifted toward AI workloads, reflecting a growing view among analysts that the next infrastructure “supercycle” will be powered by artificial intelligence rather than crypto.

Related: Paradigm reframes Bitcoin mining as grid asset, not energy drain

Bitcoin’s (BTC) price continued to consolidate near $68,000 on Tuesday, but sustained weakness below this level may generate additional sell pressure from the newest cohort of large holders.

While the long-term whales remain in profit, short-term whales are sitting on sizeable unrealized losses. One analyst highlighted how this pressure may impact BTC’s price, as other indicators point to a continued downtrend.

Key takeaways:

The short-term Bitcoin whales are sitting on net unrealized losses of 22% at current prices.

The Binance whale inflow ratio climbed to 0.62 from 0.4 in two weeks, signaling a rise in the large-holder deposits.

Long-term whales control 71% of the large-wallet supply and remain in profit above their realised price of $41,626.

New BTC whales face mounting unrealized losses

Market analyst Carmelo Alemán noted that the wallets holding 1,000–10,000 BTC control 4.483 million BTC at the moment. 1.287 million BTC (28.7%) belongs to the short-term holder (STH) whales, while 3.196 million BTC (71.3%) sits with the long-term holder (LTH) whales.

The cost basis gap is significant. STH whales have a realized price of $88,494, carrying an unrealized loss of 22%. LTH whales hold a realized price of $41,626, maintaining a 65% in profit.

Bitcoin realized price of new and old whales. Source: CryptoQuant

Alemán explained that this asymmetry shows the recent whale holders are under pressure while older capital retains a large cushion.

However, realized losses among STH whales have remained limited since Bitcoin’s all-time high of $126,000 in October 2025, reflecting resilience from the holders. 

The key structural level remains near $41,626, which is the LTH realized price. As long as BTC holds above it, the data reflects redistribution rather than structural capitulation, the analyst said.  

Related: Ray Dalio’s world order warning revives case for Bitcoin as neutral money

BTC whale deposits increase as pressure on long-term holders builds

The Binance whale inflow ratio, measuring the share of the 10 largest BTC deposits relative to total inflows, rose to 0.62 from 0.4 between Feb. 2 and 15. A higher ratio suggests a growing whale-driven sell-side activity.

Whale inflow ratio on Binance. Source: CryptoQuant

Crypto analyst Darkfost said that a part of the flow is linked to the “Hyperunit whale,” believed to be Garrett Jin, who moved close to 10,000 BTC onto Binance.

LTH's spent output profit ratio (SOPR) also dropped to 0.88. SOPR measures whether the coins are being sold at a profit or loss, with a reading below 1 meaning losses are being realized. The monthly average SOPR remains at 1.09, and the annual average stands at 1.87, indicating that long-term profitability is still intact.

Additionally, Alphractal founder Joao Wedson said that the long-term holder net-unrealized profit/loss (NUPL) stands at 0.36, meaning unrealized profits remain positive.

The analyst said that the past cycle bottoms formed only after the metric turned negative, implying Bitcoin may still need another dip to confirm capitulation among the LTH cohorts.

Bitcoin long-term holder NUPL. Source: Joao Wedson/X

Related: Bitcoin weekly RSI echoes mid-2022 bear market as BTC plays liquidity games

Bitcoin (BTC) analysts mapped out the key BTC price levels to watch as the market’s focus shifted to the $58,000 to $65,000 zone as the last line of defense.

Bitcoin price is wedged between two key levels

Bitcoin is currently wedged between the 200-week simple moving average (SMA) at $68,300 and the 200-week exponential moving average (EMA) at $58,400.

Generally, in Bitcoin’s trading history, major BTC bottoms have formed between the 200-week SMA and EMA, according to analyst Jelle. This suggests that Bitcoin is possibly forming a bottom between these trendlines.

While Bitcoin has produced a weekly close above the 200-week EMA for the second week in a row, “this doesn’t mean it is now in the clear,” trader and analyst Rekt Capital said in a Monday X post, adding:

“The absence of any meaningful upside from here going forward, there is a risk that BTC loses the 200-week EMA in time, triggering additional downside.”

BTC/USD weekly chart. Source: Rekt Capital

Crypto investor and entrepreneur Ted Pillows had an expanded view, focusing on $71,000 for a bullish breakout.

In a Tuesday post on X, Ted Pillows said that Bitcoin needs a daily close above the $71,000 level to increase the chances of an upside rally, adding:

 “And if a breakdown happens below $66,000, BTC might revisit $60,000.”

BTC/USD two-day chart. Source: Ted Pillows

Cointelegraph reported that the CME gap between $80,000 and $84,000 could act as a magnet, representing the upper price target for Bitcoin. With nine out of 10 CME gaps filled since August 2025, the $80,000–$84,000 range stands out as the key level to watch on the upside.

Bitcoin bulls must hold the price above $65,000

After turning away from $72,000 last week, Bitcoin found support at $65,000. Glassnode’s cost basis distribution heatmap reveals a significant support area recently established between $63,000 to $65,000, where long-term holders recently acquired approximately 372,240 BTC.

A decisive break below this level “would likely open the path toward the realized Price” around $55,000, Glassnode said in a Monday post on X.

Bitcoin cost basis distribution heatmap. Source: Glassnode

Current analysis suggests that the bears may aim to hold BTC price below $65,000 to remain in control. If they succeed, the BTC/USDT pair may then retest the critical $60,000 level. If the $60,000 support cracks, the next stop is likely to be $52,500.

US-based crypto exchange Kraken has integrated its over-the-counter desk with Intercontinental Exchange’s ICE Chat, enabling institutional traders to access Kraken’s crypto liquidity directly through a messaging platform widely used across global financial markets.

ICE Chat connects more than 120,000 market participants, including banks, brokers and trading desks that use the system for real-time deal negotiation and execution. The integration allows those clients to communicate directly with Kraken’s OTC desk within their existing trading workflows.

Kraken said it is the first cryptocurrency platform approved to connect to ICE Chat, placing its crypto liquidity alongside traditional asset classes within established institutional communications infrastructure.

The companies added that they expect to expand the integration over time, reflecting broader efforts to embed digital asset trading into traditional financial market systems.

Kraken’s OTC desk facilitates large block trades in crypto spot and options markets. Intercontinental Exchange, which operates ICE Chat and owns the New York Stock Exchange, provides data, clearing and technology services to global financial markets.

The news follows Kraken’s pledge on Monday to support US President Donald Trump’s proposed “Trump Accounts,” a savings program for Americans under 18.

ICE expands deeper into crypto and tokenized markets

Intercontinental Exchange has stepped up its involvement in digital asset markets over the past year, expanding beyond traditional exchange infrastructure into blockchain data, prediction markets and crypto payments.

In August, ICE partnered with blockchain oracle provider Chainlink to bring foreign exchange and precious metals data onchain. The collaboration integrates ICE’s Consolidated Feed, which aggregates pricing data from more than 300 global exchanges and marketplaces, into Chainlink’s Data Streams.

In October, ICE invested $2 billion in crypto-based prediction market Polymarket, valuing the company at a reported $9 billion post-money. In December, ICE entered discussions to back crypto payments company MoonPay in its latest funding round, which is reportedly seeking a $5 billion valuation, though the size of ICE’s potential investment was not disclosed.

Both Nasdaq and the NYSE have also been making moves in crypto recently, particularly the tokenization of equities.

In September, Nasdaq filed a request with the US Securities and Exchange Commission seeking approval to list tokenized stocks through a proposed rule change.

In January, the NYSE announced plans to develop a 24/7 trading platform for tokenized stocks and ETFs, combining the exchange’s Pillar matching engine with blockchain-based post-trade settlement systems, subject to regulatory approval.

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Michael Selig, who chairs the US Commodity Futures Trading Commission under President Donald Trump, announced the agency would be responding to what he called an “onslaught of state-led litigation” against prediction market platforms.

In a video posted to X on Tuesday, Selig said that the CFTC had filed an amicus brief — also known as a “friend of the court” brief — to “defend its exclusive jurisdiction” in regulating prediction markets, which he equated to derivative markets. The chair warned that any state-level entities challenging the CFTC’s authority over such markets would be met in court.

“Prediction markets aren’t new — the CFTC has regulated these markets for over two decades,” said Selig. “They provide useful functions for society by allowing everyday Americans to hedge commercial risks [...] they also serve as an important check on our news media and our information streams.”

Source: Michael Selig

Selig’s remarks followed many state-level regulators and authorities filing legal challenges against prediction platforms offering event contracts, including Coinbase, Crypto.com, Kalshi, and Polymarket. Last week, Polymarket filed a lawsuit against the state of Massachusetts, claiming that only the CFTC, as a federal regulator, had the authority to police such markets.

The CFTC chair has been doubling down on his public statements supporting prediction markets amid the state-led enforcement actions. On Monday, the Wall Street Journal published an op-ed by Selig, reiterating his position that states were “encroaching” on the CFTC’s authority.

On Friday, a group of 23 US senators sent a letter to Selig, urging the CFTC chair to “abstain from intervening in pending litigation” involving event contracts and to “realign the Commission’s actions with the statute and with the testimony” he provided to Congress during his confirmation hearing. Selig said that he would look to the court for guidance during a November hearing.

“[Y]our recent comments instead suggest that you view the prohibitions Congress […] as subject to reinterpretation through regulatory posture or litigation strategy,” said the senators, addressing Selig. “That approach converts a statutory prohibition into case-by-case policy judgments. It also places the Commission in direct conflict with state and tribal governments whose gambling laws Congress expressly chose not to preempt.”

Federal regulators await crypto market structure bill

For months, lawmakers in the US Senate have been considering a digital asset market structure bill, passed under the CLARITY Act by the House of Representatives in July. Although the Senate Agriculture Committee voted to advance the bill in January, it was unclear as of a Tuesday whether the legislation would have enough support to pass a potential vote in the full chamber.

Selig was scheduled to speak on the progress of the bill at an event organized by the Trump family-backed crypto platform World Liberty Financial at the president’s Mar-a-Lago club in Florida on Tuesday.

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Crypto venture capital firm Dragonfly Capital has closed its fourth fund, raising $650 million to invest in what it sees as the next phase of blockchain companies. 

The new vehicle is Dragonfly’s fourth fund, according to an X post by fund general partner Rob Hadick. Fortune reported that rather than chasing consumer apps, the firm hinted that it is targeting more traditional financial products built on blockchain rails, including credit card-like services and money market-style funds, as well as tokens tied to real-world assets such as stocks and private credit.

The shift reflects a broader pivot in crypto toward financial infrastructure and onchain finance, including payments, lending, stablecoin systems and tokenized real-world assets.

“This is the biggest meta shift I can feel in my entire time in the industry,” said Tom Schmidt, a general partner at Dragonfly.

Source: Rob Hadick

The fundraising comes after what Hadick described as a “mass extinction event” in the crypto VC ecosystem, as higher interest rates and token price declines thinned the investor pool.

Dragonfly previously raised about $100 million for its first fund in 2018, roughly $225 million in 2021 and $650 million in 2022. The latest $650 million fund signals that, despite the downturn in crypto venture investing, sizable pools of capital are still backing projects that aim to connect blockchain technology more directly with traditional finance.

Related: VC Roundup: Amid crypto funding slump, stablecoin, RWA infrastructure draw capital

Crypto VC priorities, focus areas shift

Venture funding for blockchain companies cooled in 2025, but that doesn’t mean capital disappeared. Instead, the mix has changed. 

Traditional early-stage venture deals slowed, while more money began flowing through public listings, private investments in public equity (PIPEs), debt raises and post-IPO equity offerings — a sign that more mature crypto companies are tapping public markets rather than relying solely on seed rounds.

The shift appears to be gaining momentum in 2026. Last month, 111 crypto companies raised a combined $2.5 billion across IPOs, PIPEs, debt and equity offerings, according to data from The TIE. That figure suggests institutional capital is returning, even if it’s flowing through different channels than during the last bull cycle.

Payments, exchanges, digital asset treasuries and trading services saw the largest funding surge in January. Source: The TIE

The sector focus has also evolved. Instead of backing layer-1 blockchains and consumer-facing apps, investors are directing capital toward stablecoin infrastructure, institutional custody, digital asset treasury strategies and trading platforms.

Related: ‘Massive consolidation’ expected across crypto industry: Bullish CEO

Key takeaways:

Bitcoin’s futures funding rates briefly turned negative, signaling that bullish traders currently lack the conviction to use leverage.

Uncertainty regarding the long-term profitability of artificial intelligence has pushed investors toward gold and US government bonds.

Bitcoin (BTC) failed to reclaim the $70,000 level on Tuesday following a retraction in the S&P 500 futures. Traders are concerned that investments in the artificial intelligence sector could take longer to mature, which pressured shares of Nvidia (NVDA US), Apple (AAPL US), and Google (GOOGL US) on Friday. Bearishness in Bitcoin futures became apparent, leading traders to fear further downside.

Bitcoin futures annualized funding rate. Source: Laevitas.ch

The annualized BTC futures funding rate briefly flipped negative on Monday, indicating a lack of demand for leveraged long positions. Under neutral conditions, this indicator typically ranges between 6% and 12%; consequently, a lack of conviction from bulls has been the norm for the past week. The recent dominance of precious metals has also contributed to the disappointment of Bitcoin investors.

Bitcoin/USD vs. silver, gold, S&P 500 futures. Source: TradingView

Silver and gold emerged as clear winners over the past two months while the stock market entered a consolidation period. Gains in the tech sector have come to a standstill as some analysts argue that valuations have become excessive, while others claim efficiency gains from AI are finally paying off. Regardless of the outcome, investors sought protection in government bonds.

US dollar strength index (left) vs. US 10-year Treasury yield (right). Source: Tradingview

Yields on the 10-year US Treasury declined to their lowest levels since November 2025, signaling that demand for these bonds has increased. This trend does not necessarily reflect higher confidence in the Federal Reserve’s strategy to avoid a recession without fueling inflation. In fact, the US dollar has weakened against a basket of foreign currencies, as reflected in the DXY index.

Dario Amodei, co-founder and CEO of Anthropic, reportedly stated on Friday that revenues from AI investments are unlikely to pay off in the next couple of years. According to Fortune, he warned that spending massive amounts to build data centers quickly could be "ruinous." 

Amodei also noted that delivering $10 trillion of compute by mid-2027 is impossible due to capacity constraints. This uncertainty in the tech sector has pushed investors toward more risk-averse behavior.

Bitcoin options market stabilizes as macroeconomic uncertainty lingers

Demand for neutral-to-bearish strategies using BTC options has stagnated over the past week. The panic following the unexpected crash to $60,200 on Feb. 6 has largely subsided, yet traders are still far from flipping bullish.

Related: Bitcoin accumulation wave puts $80K back in play–Analyst

Deribit BTC put-to-call options ratio. Source: Laevitas.ch

The BTC options put-to-call ratio at Deribit stood at 0.8x on Monday, indicating balanced demand between put (sell) and call (buy) instruments. This data contrasts sharply with the 1.5x ratio seen last Wednesday, a level typically deemed bearish. While it will likely take a couple of weeks for bulls to regain full confidence, Bitcoin derivatives metrics currently show no signs of panic among market participants.

Traders may have opted to act more cautiously, choosing to take profits after Bitcoin flirted with the $70,000 mark. This caution was amplified as both the US and Chinese markets were closed for holidays on Monday. There is no clear indication that Bitcoin is bound for further downside based solely on the negative BTC futures funding rate. However, establishing sustainable bullish momentum will likely depend on a reduction in macroeconomic uncertainty.

The two largest publicly traded crypto treasury companies expanded their digital asset holdings this week, with Strategy adding 2,486 Bitcoin and Bitmine Immersion Technologies buying 45,759 Ether, deploying about $260 million combined.

Strategy said it spent $168.4 million on Bitcoin (BTC) purchases Feb. 9-16, bringing total holdings to 717,131 BTC. The acquisitions were funded through share sales under its at-the-market program, including 785,354 shares of STRC preferred stock for $78.4 million in net proceeds and 660,000 shares of Class A common stock for $90.5 million.

Source: Strategy

As of Monday, Strategy reported an aggregate purchase price of $54.52 billion for its Bitcoin holdings, implying an average acquisition cost of $76,027 per BTC. The latest purchases were made at an average price of $67,710 apiece.

Bitmine, the largest Ether treasury company, said its Ether (ETH) holdings now total 4,371,497 ETH, representing 3.62% of the 120.7 million ETH supply. Of that amount, 3,040,483 ETH are staked, valued at about $6.1 billion at $1,998 per ETH, with annualized staking revenue estimated at $176 million.

The company also reported total crypto, cash and other investments of $9.6 billion, including $670 million in cash, 193 BTC, a $200 million stake in Beast Industries and a $17 million stake in Eightco Holdings.

The purchases came as both Bitcoin and Ether continued to slide. At the time of writing, Bitcoin was trading near $66,700, down about 30% over the past 30 days.

Ether was hovering around $1,990, off more than 40% over the same period, according to CoinGecko data.

Crypto treasury stocks tumble as Bitcoin retreats from October peak

As the broader crypto market retreats from Bitcoin’s October peak above $126,000, digital asset treasury companies, publicly traded companies that accumulate and hold cryptocurrencies as primary reserve assets, have also experienced sharp declines in their share prices.

Strategy is currently trading around $129, down about 72% from its July 16, 2025, high of $455.90, according to Yahoo Finance data. Bitmine shares have seen an even sharper decline. The stock is trading around $20, down about 85% from its July 3 high of $135. However, the stock remains up nearly 175% over the past year.

Source: Yahoo Finance

SharpLink Gaming, the second-largest Ether treasury holder with 864,840 ETH, about 0.72% of total supply, has also seen its shares decline sharply. At the time of writing, the stock is trading near $6.55, down from $79.21 on May 29.

MARA Holdings, which holds 53,250 BTC and ranks as the second-largest publicly traded Bitcoin holder, is trading near $7.48, down from $22.84 on Oct. 15,  a decline of around 67%.

According to BitcoinTreasuries.NET data, 194 publicly traded companies collectively hold 1.136 million Bitcoin valued at around $76 billion.

By comparison, 28 entities hold 6,301,185 Ether valued at about $12.5 billion, based on CoinGecko data.

Top 20 Bitcoin treasury companies. Source: Bitcointreasuries.NET

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Bitcoin (BTC) price continues to compress under $70,000 on Tuesday, and data suggests that the risk of new year-to-date lows remains a risk if bulls fail to turn the level into support.

The whipsaw nature of Bitcoin’s price surged as US market volatility climbed back above a critical level, and Treasury yields saw their sharpest weekly drop in months.

Analysts suggest this macro backdrop may hint at an extended slowdown phase for BTC price, while onchain data shows traders still waiting for a stronger bullish catalyst.

Key takeaways:

The CBOE Volatility Index at 22.50 signals a rising market volatility and risk-off positioning for investors.

The US 10-year yield is at 4.02%, down 3.75% last week, nearing its 200-day moving average trend for the first time since March 2022.

Why Bitcoin may remain a “risk-off” asset for now

The CBOE Volatility Index (VIX), which measures the 30-day volatility expectations in US equities, has climbed to 22.50 in 2026 and is approaching its highest level since November 21, 2025.

A rising VIX typically reflects the growing uncertainty and reduced appetite for risk assets, a “risk-off” setup that has historically pressured Bitcoin.

Bitcoin versus VIX correlation chart. Source: Cointelegraph/TradingView

For context, the chart shows a repeated inverse pattern between Bitcoin and the VIX around the 20 level. When the VIX spiked above 20 in December 2024, BTC formed a top at $104,000. A stronger surge above 25 in March through April 2025 aligned with a sharp BTC correction to $80,000. 

Another move above 20 in Q4 aligned with Bitcoin’s cycle high near $126,000, and BTC’s drop below $100,000 also came as the VIX spiked above the threshold. 

At the same time, the US 10-year Treasury yield fell 3.75% last week, its steepest weekly decline since September 2025. Now at 4.02%, the yield is set to retest its 200-period simple moving average (SMA) for the first time since March 2022.

Falling yields reflect defensive positioning across traditional markets, reinforcing the cautious tone.

US 10 YR Yield. Source: Cointelegraph/TradingView

The Crypto Fear & Greed Index dropped to 7 last week, one of its lowest readings on record. Asset management company Bitwise explained in its weekly newsletter that while extreme fear has aligned with cycle bottoms, BTC’s onchain supply in profit only briefly touched the 50% during the recent sell-off. This level has marked deeper bear market resets in the past.

Related: Bitcoin accumulation wave puts $80K back in play: Analyst

Stablecoin liquidity growth slows down

CryptoQuant data shows that the stablecoin reserves increased by $11.4 billion in the 30 days leading up to November 5, 2025, reflecting strong buying power entering the market.

However, as the bearish phase expanded, stablecoin reserves fell $8.4 billion by December 23, 2025, signaling that capital was moving out.

Stablecoin reserves on exchanges. Source: CryptoQuant

Over the past month, the reserves across various exchanges have declined by a modest $2 billion. This marked a slowdown compared to the sharp outflows in Q4, but a lack of significant inflows pointed to restrained liquidity conditions.

Binance dominated exchange liquidity, holding $47.5 billion in USDT and USDC reserves, roughly 65% of total centralized exchange balances, including $42.3 billion in USDT, which is up 36%, year-over-year.

Regarding stablecoin inflows and reserves, crypto analyst Maartunn said USDC inflows to exchanges are trending lower again, indicating that new liquidity has yet to return at scale. 

Related: Crypto sentiment hits extreme fear as Matrixport flags possible bottom

Nakamoto, the Bitcoin treasury company formerly known as KindlyMD, has signed definitive agreements to acquire BTC Inc and UTXO Management GP, advancing its plan to build a Bitcoin-native operating company.

The transaction will be financed entirely with Nakamoto’s common stock under a previously disclosed call option contained in a Marketing Services Agreement (MSA) with BTC Inc. The MSA granted Nakamoto the right to acquire BTC Inc, which in turn held a call option to acquire UTXO, the company disclosed Tuesday. 

Under the terms, BTC Inc and UTXO holders will receive 363,589,816 shares of Nakamoto common stock on a fully diluted basis. 

The shares are priced at $1.12 each under the call option framework. Based on Nakamoto’s Friday closing price of $0.2951 per share, the aggregate consideration is valued at approximately $107.3 million, before adjustments.

The deal consolidates Bitcoin (BTC) media, events and capital allocation under one public entity. BTC Inc is the parent company of Bitcoin Magazine and organizer of The Bitcoin Conference, while UTXO advises 210k Capital, a hedge fund focused on Bitcoin and related securities.

The all-stock structure at a fixed $1.12 per share is well above Nakamoto’s recent trading price of near $0.30, implying substantial dilution for existing shareholders and raising valuation questions. Nakamoto shares were lower following the announcement.

Nakamoto trades on Nasdaq under the ticker NAKA and has a market capitalization of about $194 million. Source: Yahoo Finance

Related: Crypto’s 2026 investment playbook: Bitcoin, stablecoin infrastructure, tokenized assets

Expanding the Bitcoin treasury model

Management has positioned BTC Inc and UTXO as recurring cash-flow businesses that can support additional Bitcoin accumulation and future acquisitions, effectively creating a public-market wrapper for media, asset management and advisory operations tied to Bitcoin.

Nakamoto holds 5,398 BTC on its balance sheet, according to industry data, placing it ahead of ProCap Financial, GameStop and Gemini Space Station among public Bitcoin treasury companies.

Nakamoto began its Bitcoin acquisition strategy last summer. Source: BitcoinTreasuries.NET

The company’s Bitcoin-focused pivot followed challenges in its previous healthcare business under the KindlyMD name, including weak share price performance and a strategic repositioning undertaken before the rebrand.

The Bitcoin treasury model has faced pressure in recent months amid a sharp digital asset downturn, with Bitcoin more than halved, to the $60,000 range from about $126,000. As Cointelegraph reported, corporate treasury adoption stalled in the fourth quarter amid the downturn. 

Gemini Space Station, the parent company of cryptocurrency exchange Gemini, said that three of its C-suite executives would be leaving effective immediately, with co-founder Cameron Winklevoss assuming additional responsibilities.

In a Tuesday filing with the US Securities and Exchange Commission, Gemini said it would be “parting ways” with chief operating officer Marshall Beard, chief financial officer Dan Chen and chief legal officer Tyler Meade.

The company said it did not plan to replace Beard, who also resigned from Gemini’s board. Winklevoss is expected to take on revenue-generating responsibilities. Danijela Stojanovic, previously Gemini’s chief accounting officer, has been appointed as interim CFO.

The leadership shakeup came about five months after Gemini went public on the Nasdaq, initially raising $425 million in its September debut. At the time of publication, shares of Gemini Space Station were trading at $6.54, having fallen more than 13% against broader gains across US equities markets.

 “We expect to enter into a separation agreement with each of these individuals with potential eligibility to provide additional transition services for a limited period of time in exchange for continued base salary and employee benefits for the duration of such period,” said Gemini. 

In January, the SEC dismissed a civil case filed against Gemini Trust Company in 2023 over unregistered securities offerings. The dismissal marked the latest action by the financial regulator, which has softened its approach to enforcement against crypto companies under President Donald Trump.

Gemini exits UK, EU, and Australia

The shakeup in the company’s leadership came just a few weeks after Gemini said it would focus many of its resources on building its business in the US and developing its prediction market platform. Gemini said at the time that it would cut its staff by 25% as it exited the United Kingdom, European Union and Australia markets.

In Tuesday’s filing, the company gave a preview of its year-end 2025 results, including that net revenue is expected to be $165 million to $175 million as compared with $141 million for the year ended Dec. 31, 2024. The improvement is primarily attributable to higher services revenue, driven by growth in credit card revenue.

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Key takeaways

South Korea is ending a nine-year ban on corporate crypto trading, allowing listed entities and professional investment companies to reenter the market under a regulated framework.

Corporate participation will be tightly controlled, with investments capped at 5% of annual equity capital and limited to the top 20 cryptocurrencies traded on regulated domestic exchanges.

Institutional entry may gradually improve liquidity and market structure, but strict limits mean large capital inflows from corporate treasuries are unlikely in the short term.

Compared with the US, the EU, Japan and Hong Kong, South Korea is taking a more cautious path by allowing access while restricting scale to manage systemic and reputational risks.

After a nine-year break, South Korea is set to reintegrate corporations into its cryptocurrency market. The Financial Services Commission (FSC) has established new protocols allowing listed entities and professional firms to resume trading, effectively terminating the 2017 prohibition.

This move is part of the government’s ambitious “2026 Economic Growth Strategy,” which aims to transform the nation into a premier digital hub by introducing stablecoin laws and paving the way for spot crypto exchange-traded funds (ETFs).

This article explores what led to the ban on corporate trading in South Korea, what the new guidelines facilitate and how this step will transform South Korea’s crypto market. It also examines the risks South Korean regulators are confronting and compares South Korea’s corporate crypto trading policy with those of other countries.

Why corporate crypto trading was banned in South Korea

In 2017, South Korea prohibited institutional involvement in crypto markets due to a surge in retail speculation. Regulators were concerned about the risks of money laundering, market manipulation and threats to financial stability. Authorities restricted corporations and professional investors from participating while allowing retail crypto trading under stringent compliance requirements.

This policy distinctly shaped South Korea’s crypto market. Retail investors eventually dominated trading activity, whereas local institutions remained largely excluded from a rapidly expanding asset class. Gradually, this situation also drove capital flows abroad, with Korean investors and companies pursuing exposure via overseas exchanges and foreign investment products.

On the other hand, developed markets like the US progressively incorporated institutional capital into crypto through regulated futures, custody solutions and, ultimately, spot ETFs. By 2024, institutional participation represented the bulk of trading volumes on many leading global platforms.

Did you know? In 2018, South Korean banks issued special “real-name account” partnerships with exchanges, making them legally responsible for monitoring crypto transactions tied to customer identities.

What South Korea’s new corporate crypto rules allow

According to new guidelines issued by the Financial Services Commission (FSC), approximately 3,500 organizations are set to gain permission for crypto trading. This group encompasses publicly traded companies along with duly registered professional investment firms.

To begin with, corporate allocations to cryptocurrencies will be limited to no more than 5% of a company’s yearly equity capital. The purpose of this ceiling is to prevent businesses from exposing their balance sheets to undue levels of risk, while authorities monitor the broader implications of institutional involvement on overall market stability.

Permissible investments are confined exclusively to the 20 cryptocurrencies with the highest market capitalization. These cryptocurrencies will be available for trading on South Korea’s five principal regulated crypto exchanges. This channels corporate activity toward major, highly liquid cryptocurrencies like Bitcoin (BTC) and Ether (ETH), thereby sidelining the vast majority of smaller-cap or especially volatile digital assets.

The status of stablecoins such as Tether’s USDt (USDT) within South Korea’s regulatory framework is still under evaluation. Officials have indicated that stablecoins could undergo a distinct review process. Additional legislation may be introduced concerning payment systems and financial market infrastructure.

Crypto exchanges will need to implement safeguards for institutional orders, including mechanisms such as staggered trade execution and caps on individual order sizes. These legal requirements are intended to reduce abrupt price fluctuations and prevent large orders from disrupting thin order books.

Did you know? Korea’s National Pension Service, one of the world’s largest public pension funds, has invested in blockchain-related companies but has so far avoided holding cryptocurrencies directly.

How this fits into South Korea’s broader crypto strategy

The guidelines for corporate cryptocurrency trading in South Korea are not an isolated change. Instead, they form part of a broader regulatory overhaul that includes the upcoming Digital Asset Basic Act, which the National Assembly is scheduled to present in the early months of 2026.

This proposed law aims to consolidate the currently fragmented crypto regulations. It will address key areas such as exchange oversight, token issuance, custody, market conduct and investor protection. Policymakers are examining possible frameworks for stablecoins pegged to the Korean won and regulated spot cryptocurrency ETFs. These steps will further integrate digital assets into traditional financial markets.

These initiatives suggest a shift from crisis-driven restrictions toward structured market participation under formal regulatory supervision.

How corporate access will be transforming South Korea’s crypto market

South Korea’s decision to allow limited corporate participation in cryptocurrency markets is a positive step toward greater institutional integration. This change, along with the upcoming broader regulations, is likely to reshape the country’s crypto landscape over time.

Institutional liquidity and market structure

Enabling corporate participation will transform the dynamics of Korea’s cryptocurrency market. Institutional traders generally operate with longer investment periods, diversified strategies and professional risk management systems. Their arrival may enhance liquidity, narrow bid-ask spreads and reduce the dominance of short-term retail trading activity.

However, the 5% investment limit restricts the volume of funds that can enter crypto from company treasuries in the short term. As a result, the market impact may be gradual rather than immediate.

Treasury strategies and business innovation

In other jurisdictions, various companies have implemented strategies for holding digital assets in their treasuries. They use Bitcoin or similar assets as long-term balance sheet holdings. For instance, Japan’s Metaplanet has drawn worldwide interest by steadily increasing its Bitcoin holdings to build corporate value.

Industry participants in South Korea argue that a stringent investment limit may prevent diverse business models from emerging. Critics say companies should have the freedom to determine their own risk exposure within standard corporate governance and disclosure rules instead of dealing with crypto-specific investment restrictions.

Domestic financial products

Institutional participation in the crypto market will help create new types of financial instruments. These might include cryptocurrency ETFs, structured notes and custody services. For banks and asset managers, corporate trading demand could justify further investment in digital asset infrastructure.

This development could improve South Korea’s ability to compete with other financial centers in Asia, such as Hong Kong and Singapore. These hubs are actively courting digital asset firms and institutional investors.

Did you know? Some Korean conglomerates already use blockchain for supply chain tracking and digital certificates, meaning corporate exposure to distributed ledger technology predates financial crypto investments.

Comparing South Korea’s corporate crypto policy with other countries

South Korea’s cautious approach to allowing corporate crypto participation differs from the prevailing policies in major markets. In the US and parts of Europe, there are no specific percentage caps on corporate crypto holdings. However, businesses must still follow accounting rules, disclosure requirements and fiduciary responsibilities.

Japan and Hong Kong also allow institutional involvement without imposing fixed caps on balance sheet exposure. Instead, they rely on licensing frameworks, custody regulations and rules governing proper market conduct.

South Korea’s framework reflects a more cautious regulatory stance. It opens the door to crypto assets for corporations while restricting the scale of participation until authorities build greater confidence in the market’s stability.

Risks South Korean regulators are confronting

From the FSC’s viewpoint, the new framework balances market growth with the need to maintain financial stability. The risks that continue to concern regulators include:

Volatility risk, which could harm corporate balance sheets and weaken investor confidence

Operational risk, such as failures in custody arrangements or disruptions at crypto exchanges

Reputational risk, which arises if companies experience significant losses from speculative crypto trading.

By placing limits on the types of assets allowed and the size of investments, regulators aim to contain systemic exposure while building regulatory experience with institutional crypto participation.

What happens next?

The FSC is expected to release the final version of the guidelines in January or February 2026. Its implementation will be coordinated alongside the Digital Asset Basic Act later in the year. Corporate crypto trading may begin before the end of the year, provided that the legislative schedule stays on course.

Future adjustments may occur if market conditions remain stable and compliance mechanisms demonstrate reliability. Industry associations are likely to push for higher investment limits and a wider range of eligible assets once this initial stage has been completed.

Balancing financial stability with institutional innovation

Lifting the long-standing ban on corporate crypto trading participation represents a significant change in South Korea’s approach to digital assets. After nearly a decade of retail-only participation, institutions are finally being allowed into the domestic South Korean market, though under tight constraints.

Whether this cautious opening evolves into full institutional integration will hinge on market performance, how companies manage risk and how effectively regulators enforce safeguards. It is evident, however, that South Korea no longer views corporate crypto participation as inherently incompatible with financial stability but rather as an activity that can be managed within a structured regulatory framework.