Market Watch
Things to Watch This Week (August 4 - August 8)
Key earnings and labor data
Markets will be watching earnings reports from major names like Palantir and AMD this week. The market is also looking ahead to Friday's jobs report for clues on the Fed's next move.
Random Musing This Week
Crypto ETFs Go In-Kind
Last week, the U.S. Securities and Exchange Commission (SEC) approved a major structural change for crypto-based exchange-traded products (ETPs), allowing in-kind creations and redemptions for spot Bitcoin and Ether ETFs. This marks a significant upgrade from the original 2024 approvals, which were limited to cash-only flows.
What’s Changed?
Previously, ETF issuers could only issue or redeem shares using U.S. dollars, forcing them to buy or sell the underlying crypto assets (BTC or ETH) in the open market. Crucially, in a cash-only redemption system, large-scale redemptions led to forced selling of crypto assets by ETF issuers. This injected direct sell pressure into the market, especially during times of volatility. With the new ruling, Authorized Participants (APs) - large financial institutions that facilitate ETF liquidity - can now exchange BTC or ETH directly for ETF shares, and vice versa. This “in-kind” mechanism mirrors the structure of traditional commodity ETFs and brings crypto products in line with global ETF best practices.
Why It Matters
The inclusion of APs fundamentally improves the crypto ETF ecosystem in several ways:
Cost Efficiency: In-kind transfers reduce the need for ETF issuers to actively trade crypto in the open market, cutting down on execution costs and slippage. This benefits both issuers and investors.
Better Price Tracking: APs help maintain ETF’s market price in line with the net asset value (NAV) by arbitraging mispricing. This narrows and improves pricing integrity.
Higher Liquidity: With APs able to create or redeem shares on demand using BTC/ETH, ETF liquidity deepens — making large trades smoother and more scalable.
This move shows the SEC increasingly views Bitcoin and Ethereum not as speculative securities, but as real-world commodities — signaling recognition of crypto as a long-term store of value that deserves the same infrastructure as traditional assets.
Recap of Top Stories (July 28 – Aug 1)
Interesting
Crypto exchange Gate launches spot trading services in the US
Commentary: Crypto exchange Gate is launching in the United States, offering spot trading services to US customers for the first time. Founded in 2013 by Chinese scientist Lin Han, the company cited improved regulatory clarity in the country as the reason behind the move.
According to Gate, it will initially offer crypto trading pairs for US customers, with upcoming services for fiat on- and off-ramps and support for custodial wallets. As of July 24, the exchange offered over 3,800 trading pairs on its platform, one of the largest asset varieties in the market.
Spot ether ETFs post 20th consecutive day of net inflows, marking longest streak since debut
Commentary: Spot Ethereum exchange-traded funds reported their 20th consecutive day of net inflows on Thursday, marking their longest positive flow streak since launch.
BlackRock's ETHA led net inflows with $18.2 million, followed by $5.62 million moving into Fidelity's FETH. This was countered by $6.8 million in net outflows from Grayscale's ETHE.
SEC rolls out ‘Project Crypto’ to rewrite rules for digital assets
Commentary: US Securities and Exchange Commission Chair Paul Atkins has announced “Project Crypto,” an initiative to modernize the agency for the digital finance age and establish clear regulations for digital assets in the United States.
Atkins proposed easing licensing rules to allow for multiple asset classes or instruments to be offered by brokerages under a single license, while also creating a clear market structure separating commodities, which most cryptocurrencies fall under, from securities.
Coinbase and JPMorgan team up to link Chase accounts to crypto exchange starting 2026
Commentary: Coinbase said Wednesday it is partnering with JPMorgan Chase to make it easier for the bank’s more than 80 million customers to access crypto, including the ability to fund Coinbase accounts with Chase credit cards starting this fall, redeem Chase Ultimate Rewards points for Circle's stablecoin USDC on Base beginning in 2026, and link Chase bank accounts directly to Coinbase in 2026.
The deal aims to streamline fiat on‑ramps and broaden distribution for Coinbase across mainstream U.S. banking, while giving JPMorgan customers more ways to engage with crypto without leaving their primary bank relationship.
SEC approves in-kind creations and redemptions for crypto ETPs
Commentary: The US Securities and Exchange Commission (SEC) has approved in-kind creation and redemption for cryptocurrency exchange-traded products (ETPs), giving authorized representatives the ability to exchange shares directly for the underlying crypto assets instead of cash.
“In-kind creation and redemption provide flexibility and cost savings to ETP issuers, authorized participants, and investors, resulting in a more efficient market,” said Jamie Selway, director of the Division of Trading and Markets at the SEC.
PayPal uses PYUSD stablecoin to enable payments in over 100 cryptocurrencies
Commentary: PayPal has unveiled a new payment option that will enable small businesses to accept dozens of cryptocurrencies. The tokens will be converted into the PayPal-branded, Paxos-managed PYUSD stablecoin, which is increasingly being folded into the fintech giant’s business model.
Pay with Crypto, as the new service is called, will be made available to U.S. merchants in the coming weeks. It will initially support wallets from Coinbase, OKX, Binance, Kraken, Phantom, MetaMask, and Exodus.
Nasdaq-listed vape stock surges 600% after 10X Capital and YZi Labs lead $500 million offering to establish BNB treasury
Commentary: A Colorado-based nicotine company with a market cap of around $60 million is looking to establish the world's largest publicly traded BNB corporate treasury.
CEA Industries (ticker VAPE) and 10X Capital announced the pricing of an oversubscribed and upsized above-the-market PIPE financing, positioning the former to become the largest publicly traded BNB treasury company in the United States.
Upcoming Market Events
August 12 - U.S. CPI (July)
August 29 - BTC CME August (BTCQ25) Options Expiry
September 17 - U.S. FOMC Interest Rate Decision