Bitcoin Blazes Past $113K, Ethereum's Record Run and Trump's $6B Crypto Gambit - Aug 28-29, 2025 Roundup
- Bitcoin rebound faces profit-taking: BTC jumped back above $113,000 mid-week, buoyed by Nvidia’s blockbuster earnings and a record S&P 500 rally ts2.tech. On-chain data warn of stiff resistance at ~$113,600, as many short-term holders would likely sell at their 3-month breakeven price, capping further upside coindesk.com. “Any relief rally is therefore likely to encounter resistance, as short-term holders seek to exit at breakeven,” analytics firm Glassnode noted coindesk.com.
- Ether hits ATH amid inflows: Ethereum’s ether (ETH) touched a new all-time high near $4,955 on Aug. 24 ts2.tech, extending a strong August surge (~23%). Fed Chair Jerome Powell’s dovish signals sparked a massive $1.3 billion weekly inflow into ETH funds ts2.tech even as Bitcoin funds saw outflows. CME Ether futures open interest hit a record $10 billion, reflecting robust institutional demand ts2.tech. “We’re certainly seeing a resurgence… signaling a strengthening of the institutional ecosystem around ether,” said Giovanni Vicioso, head of crypto products at CME ts2.tech.
- Altcoins & DeFi surge, memes swing: Major altcoins rallied: Solana jumped ~9% to around $205 and XRP breached $3 for the first time in years ts2.tech nasdaq.com. DeFi tokens also spiked – Uniswap’s UNI and Aave’s AAVE leapt over 20% after new SEC Chair Paul Atkins floated potential regulatory relief for DeFi projects ts2.tech coindesk.com. Meanwhile, meme-coin mania showed its risks: a Kanye West-themed “YZY” token collapsed ~80%, leaving 70,000+ traders with losses (over $8 million in total) as insiders cashed out ts2.tech coindesk.com.
- NFT & gaming upheaval: The once-hyped metaverse platform The Sandbox announced an aggressive restructuring, laying off over 50% of its staff and closing multiple offices worldwide coindesk.com. Co-founders Arthur Madrid and Sebastien Borget were removed from executive roles, replaced by Animoca Brands CEO Yat Siu as usage plunged to only a few hundred active users coindesk.com. The SAND token has crashed ~90% from its peak, putting the project’s hefty $100–300 million treasury in question coindesk.com.
- Regulation watch – US to Asia: U.S. regulators signaled a warmer stance: the CFTC invited crypto firms that fled overseas back to U.S. markets via its “foreign board of trade” registration path coindesk.com. “American companies that were forced to set up shop in foreign jurisdictions… now have a path back to U.S. markets,” said Acting CFTC Chief Caroline Pham coindesk.com. In Washington, President Trump’s team is considering crypto-friendly officials – at least 3 of 11 Fed chair candidates on its shortlist have openly positive crypto views cointelegraph.com cointelegraph.com. China is reportedly reviewing a plan to allow yuan-backed stablecoins offshore, using Hong Kong as a testbed to internationalize the yuan reuters.com reuters.com. Hong Kong’s own crypto regime saw pushback: exchange BitMart withdrew its license application amid strict new rules (high capital, liquidity and cold storage requirements), following similar exits by Bybit, OKX and others coincentral.com coincentral.com. In Europe, Gemini became one of the first to secure a MiCA license in Malta, enabling EU-wide crypto services under the EU’s new regulatory framework ts2.tech.
- Big bets & adoption – Trump and institutions: Former President Trump’s circle made blockbuster crypto moves. American Bitcoin, a U.S. mining firm 80% owned by Hut 8 with Donald Trump Jr. and Eric Trump holding 20%, is finalizing a merger to go public on Nasdaq in September coindesk.com coindesk.com – aiming to become one of America’s largest Bitcoin miners. Separately, Trump Media & Technology Group struck a surprise $6.42 billion partnership with Crypto.com to launch a CRO token treasury fund nasdaq.com. The vehicle will be seeded with $1 billion in Cronos (CRO) and stake those tokens on Crypto.com’s Cronos blockchain nasdaq.com. News of the deal sent CRO prices soaring ~30% in one day nasdaq.com, though it sparked controversy by “un-burning” 70 billion CRO (boosting supply over 200%) to fund the initiative nasdaq.com. Beyond the Trump-linked ventures, institutional adoption of crypto accelerated: Cathie Wood’s ARK Invest bought $15.6 million in shares of Bitmine Immersion – a company that has amassed 1.7 million ETH (~$8 billion) as a treasury asset ts2.tech. In Asia, Singapore-based Matrixport partnered with China’s Fosun Wealth to integrate crypto into mainstream wealth management services (from custody to tokenized real assets) ts2.tech. And in the UK, hedge fund advisor Falconedge Ltd. revealed plans to devote “almost all” of its upcoming IPO proceeds to build a Bitcoin treasury, reflecting high conviction in BTC as a reserve asset ts2.tech. Meanwhile, Canada’s VersaBank launched a pilot for tokenized U.S. dollar deposits on public blockchains (Ethereum, Algorand, Stellar), offering an FDIC-insured, interest-bearing stablecoin alternative ts2.tech – yet another sign of banks embracing blockchain innovation.
Market Highlights: Bitcoin & Ether on the Rise, With Caution
Bitcoin (BTC) spent the week on a roller coaster but showed resilience by Aug. 28. After dipping below $110,000 amid a mid-week risk-off pullback, BTC rebounded above $111K–$113K ts2.tech, buoyed by broader market strength – the S&P 500 hit fresh highs and chipmaker Nvidia’s stellar earnings bolstered risk sentiment coindesk.com. By Wednesday, Bitcoin hovered near $112K, though it remained close to seven-week lows ts2.tech, prompting debate over whether the dip was a buying opportunity or a warning sign.
On-chain metrics suggest Bitcoin faces headwinds approaching the mid-$110Ks. Blockchain analytics firm Glassnode highlighted that many newer buyers have a cost basis around $113,600, implying they may eagerly sell at that breakeven level coindesk.com. “BTC trades beneath the cost basis of both the 1-month ($115.6K) and 3-month ($113.6K) cohorts… Any relief rally is therefore likely to encounter resistance, as short-term holders seek to exit at breakeven,” Glassnode wrote in a Wednesday report coindesk.com. In practical terms, profit-taking by these investors could cap Bitcoin’s near-term upside around $113K–$115K. Analysts are watching ~$112.4K as a technical hurdle – a decisive break above that on strong volume might open the door to the $114K–$116K range coindesk.com. Conversely, on the downside, the $107K level looms as key support, coinciding with the 6-month holder cost basis; a drop below ~$107K could “trigger fear” and accelerate sell-offs, Glassnode warned coindesk.com.
Ethereum (ETH), meanwhile, has been on a tear. The second-largest crypto briefly notched a new all-time high near $4,955 on Aug. 24 ts2.tech, a level not seen even during the 2021 bull run. Although ETH retraced a bit to the mid-$4.6K range by mid-week amid general market jitters ts2.tech, its uptrend remains firmly intact – Ether is up about 23% in August and has dramatically outperformed Bitcoin in recent weeks ts2.tech coindesk.com. One catalyst is renewed institutional accumulation: over the past week, investors poured roughly $1.3 billion into Ethereum-focused funds, responding to hints from Fed Chair Powell that rate cuts could be on the horizon ts2.tech. In fact, ETH investment products have absorbed $3.7 billion since June, while Bitcoin funds saw about $900 million in outflows in that period nasdaq.com. This rotation reflects growing confidence in Ethereum’s prospects. Notably, CME Ether futures open interest hit $10 billion for the first time – a record high – indicating robust institutional participation ts2.tech. “We’re certainly seeing a resurgence… as large open interest holders hit a record 101… signaling a strengthening of the institutional ecosystem around ether,” observed Giovanni Vicioso, CME’s head of crypto products ts2.tech. Ether’s strength is also underpinned by macro factors; it surged ~15% in a single day after Powell’s Aug. 22 Jackson Hole speech suggested a possible September rate cut, far outpacing Bitcoin’s ~4% gain that day coindesk.com coindesk.com. Year-to-date, ETH is up roughly 45% (versus BTC’s ~25% gain), as more investors view Ethereum as “Wall Street’s likely blockchain of choice” for building decentralized applications coindesk.com coindesk.com. With several corporations (from fund manager Bitmine to ETHZilla) accumulating Ether in treasury reserves coindesk.com ts2.tech, bullish sentiment around Ethereum’s network effect is rising. Still, traders are watching to see if Ether can decisively break the psychological $5,000 barrier in coming weeks or if it will consolidate after its impressive run.
Beyond the two leaders, the broader crypto market saw a notable altcoin rally. As Bitcoin steadied, altcoins (“alts”) took flight: for example, Solana (SOL) jumped about 9% to ~$205 ts2.tech, buoyed by growing optimism in the Solana ecosystem and institutional signals of confidence in its tech (Solana-related assets saw fresh inflows). XRP – emboldened by Ripple’s legal clarity earlier in the year – briefly broke above $3, hitting multi-year highs ts2.tech. That marks a remarkable turnaround for XRP, which traded near $0.50 a year ago; its surge reflects both the broader altcoin strength and Ripple’s moves to expand use of XRP in cross-border settlements. Other top altcoins like Cardano (ADA) and Stellar (XLM) also notched mid-single-digit percentage gains on the week nasdaq.com, riding the “alt-season” wave.
However, not all was rosy in alt-land – the period saw a stark reminder of volatility in the meme coin arena. A much-hyped new token purportedly linked to artist Kanye West’s brand, called “YZY”, crashed spectacularly after its late-August launch. YZY, an unofficial Solana-based memecoin, initially mooned over 1,000%, but within days plunged over 80%, erasing roughly $8 billion in market value at one point ts2.tech. On-chain analysis revealed a lopsided outcome: over 70,000 traders ended up in the red, most losing modest amounts ($1 to $1,000 each), yet a handful of insider wallets reaped seven-figure profits coindesk.com coindesk.com. Blockchain data firm Bubblemaps tallied that 51,862 addresses lost up to $1K, 5,269 lost $1K–$10K, and 1,025 wallets lost $10K–$100K in the YZY saga coindesk.com coindesk.com. Meanwhile, just 11 wallets (likely early buyers or project insiders) pocketed over $1 million each coindesk.com. This “rich-get-richer” outcome sparked outcry on Crypto Twitter and calls for greater caution around celebrity-themed tokens. The YZY fiasco underscores that even amid a broader uptrend, speculative excesses and rug-pull risks in crypto remain very real.
DeFi & Altcoin Moves: DeFi Tokens Soar, Cronos Skyrockets on Trump News
It wasn’t just large-cap coins making news – the DeFi sector and smaller-cap altcoins saw significant action. Decentralized finance (DeFi) tokens enjoyed a renaissance of sorts, fueled in part by a stark change in U.S. regulatory tone. Earlier in the week, at a Monday roundtable on DeFi, new SEC Chairman Paul Atkins struck an unexpectedly optimistic stance toward the sector coindesk.com. Atkins floated the idea of exploring regulatory “exemptions” for decentralized platforms, a sharp departure from the restrictive approach of the prior SEC regime coindesk.com. The remarks electrified DeFi markets: Uniswap’s UNI and Aave’s AAVE, two bellwether tokens of decentralized exchanges and lending, spiked well over 20% each in the aftermath coindesk.com. Even lesser-known DeFi plays like Skycoin (SKY) got swept up in the optimism, posting similar double-digit gains. Industry veterans heralded the moment – Binance CEO Changpeng “CZ” Zhao proclaimed on X (Twitter) that June 9 (the date of Atkins’ comments) “will be remembered as DeFi day” coindesk.com coindesk.com. While that was back in June, its spirit carried into late August as DeFi tokens broadly held onto those gains, buoyed by the sense that U.S. regulators might finally craft rules that nurture rather than smother decentralized finance innovation.
Altcoin markets also saw pockets of exuberance driven by corporate headlines. The Cronos (CRO) token – issued by Crypto.com – exploded nearly 30% higher in a single day ts2.tech after an eye-popping deal with Trump’s business (more on that in the Enterprise section). Crypto.com’s announced partnership with Trump Media, involving billions of dollars in CRO token allocation, immediately boosted confidence in CRO’s utility and long-term demand. However, the surge came with controversy: to fund the new venture, Crypto.com revealed it would “un-burn” 70 billion CRO that had previously been removed from circulation nasdaq.com. This effectively inflated CRO’s supply by 2×, sparking debate in the community about governance and promises made regarding token burns. Some CRO holders voiced anger that past burn events were reversed without a holder vote, even as the price jumped on the news. It’s a reminder that altcoin tokenomics can shift abruptly based on business decisions.
Outside of exchange tokens, many Layer-1 and Layer-2 protocol tokens rode the market upswing as well. Along with Solana’s rally, Avalanche (AVAX) and Polkadot (DOT) each rose modestly (low-single-digit percentages) as developers pushed forward network upgrades and users hunted for the “next” breakout chain. Polygon (MATIC) saw a mid-week bump amid speculation that a forthcoming hard fork would enhance its performance. Even oft-quiet projects like Hedera Hashgraph (HBAR) made headlines: HBAR traded in a tight range around $0.23 blockchainreporter.net, but community chatter swirled about new enterprise adoption (Google and IBM continue to expand use of Hedera’s network for public data integrity and tokenization coindesk.com). The steady price reflected that such enterprise deals, while fundamentally positive, take time to translate into token demand.
Notably, meme coins and celebrity-themed tokens remain a wild west. The YZY meltdown mentioned above followed another August meme saga – a short-lived surge in a “$TRUMP” memecoin earlier in the month after promotional tweets, which then fizzled out. Regulators have taken notice: the U.S. SEC in fact stated in February that meme coins like TRUMP (often thinly traded and highly volatile) “are not considered securities” nasdaq.com, effectively putting them outside its investor protection remit. This stance aligned with the pro-crypto lean of the current administration, but it also means buyer beware – these tokens won’t get the scrutiny that stocks or traditional assets do. Fittingly, a crypto fund called Canary Capital filed for the first-ever spot ETF tied to the TRUMP meme coin nasdaq.com, seeking to list a fund holding the actual tokens. Analysts are skeptical the SEC will approve such a product anytime soon (spot Bitcoin ETFs are still pending, let alone a meme coin ETF) nasdaq.com. Nonetheless, the filing itself, coming on the heels of the SEC’s hands-off stance on meme coins, shows how far the altcoin phenomenon has penetrated market thinking. In sum, the altcoin and DeFi space in late August was marked by renewed exuberance from supportive policy signals and big partnership news – but also cautionary tales reminding traders that quick fortunes can reverse overnight in this volatile corner of crypto.
NFT & Gaming Sector Developments: Metaverse Shake-Up and NFT Trends
NFT and blockchain gaming news over Aug. 28–29 was headlined by a major retrenchment at a once-premier metaverse project. The Sandbox, a high-profile Ethereum-based virtual world, is undergoing a dramatic restructuring amid fading user interest coindesk.com. According to reports, over half of Sandbox’s roughly 250 employees are being laid off, and the company is shuttering offices worldwide in regions including Argentina, South Korea, and more coindesk.com. This downsizing comes after Sandbox’s user metrics plunged to alarming lows – on some days, only a few hundred people globally are active in its metaverse, and insiders say many of those are likely bot accounts rather than real users coindesk.com. Despite raising about $300 million since its inception and being a poster child for the 2021 NFT/metaverse boom, Sandbox has struggled to retain players now that the hype has cooled.
In a leadership shake-up, The Sandbox’s parent company Animoca Brands has installed its CEO, Yat Siu, to oversee Sandbox’s operations, effectively sidelining Sandbox’s co-founders Arthur Madrid and Sebastien Borget from their executive roles coindesk.com coindesk.com. Siu, a prominent figure in crypto gaming, will be tasked with trying to rejuvenate the platform (or at least stem the bleed). Under his watch, the company is re-evaluating its strategy – which might include pivoting focus, selling assets, or even a potential merger or acquisition, as speculated by industry observers.
One pressing issue is what happens to The Sandbox’s sizable crypto treasury. The project still holds an estimated $100–300 million worth of assets (largely proceeds from its sales of virtual land NFTs during peak mania) coindesk.com coindesk.com. With the SAND token down ~90% from its all-time high, that treasury’s value has shrunk considerably on paper, and community members are debating whether it should be redeployed, distributed, or managed via a DAO governance vote. Notably, there’s supposed to be a Sandbox DAO governing such decisions, but engagement is minimal – only 291 votes have been cast by token holders on proposals in all of August coindesk.com, suggesting an apathetic community. The situation raises tough questions: can The Sandbox reinvent itself to attract real users (not just speculators)? Or will it join the graveyard of early metaverse projects that couldn’t deliver on outsized expectations?
Outside of Sandbox, the broader NFT market in late August showed a few flickers of life amid a generally subdued year. Ethereum NFT collections continue to dominate sales volume – familiar blue-chip collections like Bored Ape Yacht Club (BAYC) saw a surprise spike, with BAYC’s 7-day sales jumping over 300% to $3.1 million blockchainreporter.net (even as the number of transactions fell, indicating some big-ticket buys). Another Yuga Labs collection, Mutant Ape Yacht Club, similarly saw a surge in dollar sales (+483% weekly) despite fewer traders blockchainreporter.net. These jumps were possibly driven by large holders or whales consolidating rare pieces at bargain prices. There was also buzz around a prominent collector – upstate New York billionaire Adam Weitsman – who claimed to have acquired 5,000 “Otherdeed” land NFTs for Yuga’s Otherside metaverse, signaling continued interest from deep-pocketed buyers in metaverse land (even as average NFT enthusiasts shy away). Some interpreted Weitsman’s move as a speculative bet that Yuga Labs will eventually turn its metaverse vision around, making the land valuable.
On the gaming NFT front, there were incremental developments rather than blockbuster announcements. KuCoin, a crypto exchange, unveiled a partnership with game studio 2Game Digital to drive Web3 gaming adoption, including promotions where gamers get discounts or bonuses for using KuCoin’s crypto payment system nftnewstoday.com. Meanwhile, Web3 gaming platform DAR launched a “quest system” with monthly NFT airdrops to reward gamers egamers.io – a sign that blockchain game developers are focusing on user engagement strategies to keep players interested via token incentives. These efforts reflect a reality: attracting and retaining players in play-to-earn or NFT-based games has been challenging once the initial novelty wears off.
Another notable tidbit: Sony quietly advanced its foray into blockchain gaming via its subsidiary Sony Network Communications. Sony’s team rolled out a system called Soneium Score on the Astar Network (a Polkadot-based chain) to track and reward user activity across different games and dApps bitrue.com. This “reputation score” could eventually let gamers carry their achievements or status between games – a key selling point of the interoperable metaverse concept. Sony’s involvement lent some credibility to the space, even as many traditional gamers remain skeptical of NFTs in games.
In summary, the NFT/gaming sector at the end of August 2025 finds itself at a crossroads: major projects are retrenching (as seen with Sandbox) after the 2021–22 euphoria, and user interest must be earned with genuine fun and utility, not just token promises. Trading volumes for profile-picture NFTs and virtual land are a fraction of what they were at the peak, but dedicated builders and big brands are still in the game, refining their approaches. The coming months will be telling as to whether these blockchain games and metaverse platforms can innovate their way to broader appeal or whether the NFT craze’s tail end will continue fading.
Regulation Watch: Global Crypto Policy Updates and Legal Developments
Regulatory developments in late August 2025 showed a mix of crypto-friendly overtures and strict enforcement, varying greatly by region. In the United States, the narrative has visibly shifted with the change in administration. The Commodity Futures Trading Commission (CFTC) took a notable step to welcome back crypto firms that had previously fled the U.S. due to regulatory uncertainty coindesk.com. On Aug. 28, the CFTC issued an advisory reminding overseas digital asset exchanges that they can register as “Foreign Boards of Trade” (FBOTs), which would legally allow them to serve U.S. customers without setting up full U.S. operations coindesk.com. This path has existed for years (allowing Americans access to foreign futures markets), but making a public invitation to crypto platforms is new. “Starting now, the CFTC welcomes back Americans that want to trade efficiently and safely under CFTC regulations, and opens up U.S. markets to the rest of the world,” said Acting CFTC Chair Caroline Pham, emphasizing the agency’s “crypto sprint” initiative to modernize rules coindesk.com. The timing is significant – after years of an aggressive SEC stance under the prior administration, the CFTC (now under Trump-appointed leadership) is signaling a more open-arms approach. Pham framed it as aligning with President Trump’s agenda to reclaim crypto business for America coindesk.com. Indeed, the Trump administration is actively reshaping the regulatory landscape: President Trump’s team has begun stacking financial regulators with crypto sympathizers. Treasury Secretary Scott Bessent revealed that 11 candidates are being vetted for the Federal Reserve Chair post (Jerome Powell’s term expires in May), and “at least three” of them have “constructive stances” on crypto cointelegraph.com. Among names floated are Fed Governor Christopher Waller and Vice Chair Michelle Bowman, who in late August publicly advocated for a more open-minded approach to crypto at the Fed cointelegraph.com cointelegraph.com. (Bowman even suggested Fed staff should be allowed to hold small amounts of crypto to better understand it.) Meanwhile BlackRock executive Rick Rieder, also reportedly on the Fed shortlist, has said Bitcoin is “here to stay” and could become a significant part of investment portfolios cointelegraph.com. These signals suggest that U.S. monetary policy circles may tilt more crypto-friendly, potentially easing banks’ and institutions’ comfort with engaging in the sector.
Legal battles and enforcement in the U.S. were relatively quiet during the Aug. 28–29 window – a contrast to the frenetic lawsuit pace of previous years. Observers are now looking ahead to potential SEC rule changes: under new Chair Atkins, the SEC is rumored to be drafting an “innovation exemption” framework for DeFi and clearer definitions distinguishing different digital assets bankless.com. If true, that could be a game-changer, but nothing official has been released yet. One concrete regulatory move: the SEC’s approval deadlines for several spot Bitcoin ETF applications (from firms like BlackRock, Fidelity, and ARK) are looming in September; speculation is rife that at least one could get a green light this fall given the pro-crypto shift in D.C. Crypto market players are watching those developments closely, as an approved spot ETF would mark a major U.S. policy milestone.
Turning to Asia, China made waves with a potential policy reversal. Reuters reported that Beijing’s State Council (China’s cabinet) is considering a plan to legalize yuan-pegged stablecoins for offshore use reuters.com. This would represent a major strategy shift – China banned all crypto trading in 2021, but now sees an opportunity to boost the global role of its currency (the RMB) by leveraging stablecoins. According to sources, the State Council’s yuan internationalization roadmap to be reviewed by month’s end includes allowing Hong Kong and Shanghai to pilot regulated yuan-backed stablecoins as a counter to USD-dominated stablecoins like Tether reuters.com. The idea is that a Hong Kong-issued CNH (offshore yuan) stablecoin could facilitate trade and investment in yuan without undermining China’s capital controls on the mainland reuters.com. Chinese authorities are also reportedly scheduling a high-level study session on stablecoins and digital currency strategy, signaling top-level buy-in reuters.com. This comes as China’s central bank digital currency (the e-CNY) has seen only modest uptake outside China – Beijing may view stablecoins as “better late than never” in the quest to chip away at U.S. dollar dominance reuters.com. While any actual deployments will be cautious (likely through state banks or sanctioned fintechs in Hong Kong), the news underscores a global theme: governments exploring stablecoins to complement or compete with both private crypto and other nations’ CBDCs.
In Hong Kong, the local regulators are experiencing the friction between being pro-crypto in theory and enforcing high standards in practice. Hong Kong has tried to establish itself as a crypto hub with clear regulations, but those rules are proving tough to meet. On Aug. 29, crypto exchange BitMart confirmed it withdrew its application for a Hong Kong Virtual Asset Service Provider (VASP) license coincentral.com. The stringent licensing requirements – including maintaining 12 months of operating expenses in liquid capital and keeping 98% of client assets in cold storage – have already led other big exchanges like Bybit, OKX, and Gate.io to bow out of Hong Kong’s regime in recent months coincentral.com. BitMart’s exit highlights the challenge: while Hong Kong’s rules are meant to protect investors and legitimize the industry, they also raise barriers to entry that some crypto firms find untenable. Hong Kong officials maintain that serious, well-capitalized players (e.g., HashKey and OSL, which did get licensed) can thrive and that the city is still committed to crypto innovation. They note that several platforms have obtained licenses or in-principle approval. But the wave of withdrawals suggests a consolidation – only exchanges willing to operate almost like traditional financial institutions (with large cash buffers and strict compliance) will remain. Hong Kong is also moving on stablecoin regulation (a new ordinance taking effect as of early August requires stablecoin issuers to be licensed and fully backed), aligning with the above-mentioned Chinese strategy.
In Europe, the landmark MiCA (Markets in Crypto-Assets) regulation is beginning to take effect, even though full implementation will roll out through 2024. An interesting development saw U.S.-based exchange Gemini proactively secure a license in Malta under MiCA provisions ts2.tech. This “MiCA license” (likely a Virtual Financial Assets license aligned with MiCA rules) will let Gemini passport its services across all 27 EU member states plus associated countries once MiCA is live ts2.tech. It’s a strategic move: exchanges are jockeying to be early compliant players in the EU’s harmonized market. By being in Malta (an EU member known for fintech regulation) and meeting MiCA’s standards ahead of time, Gemini signals it will be ready to serve Europe’s 450 million residents with trading and custody, in contrast to some competitors who might have to pull back from certain countries until they get authorized. The EU’s MiCA framework itself is viewed as relatively strict on stablecoin issuers and exchange reserves, but at least it provides a clear rulebook – something industry players have craved. Other global exchanges are expected to follow Gemini’s lead in applying for EU licenses in friendly jurisdictions (like France, Ireland, or Germany) to lock down access to the bloc.
Elsewhere, a few other regulatory notes: India did not have major crypto news this week (its heavy crypto tax regime still stands, keeping trading volumes low). Japan is moving from discussion to action on stablecoins – Tokyo-based Monex Group (owner of Coincheck) revealed plans to issue a yen-backed stablecoin tied to Japanese government bonds, which would be one of the first of its kind in Japan ts2.tech. In the Middle East, the UAE’s VARA continued issuing provisional licenses to big-name exchanges under its new rulebook, with an eye toward full licensing by year-end. And in Australia, regulators released a paper on token mapping as they work toward a crypto regulatory framework, but no laws have passed yet.
Overall, global crypto regulation in late August 2025 is marked by a trend of integration and normalization: regulators are either bringing crypto into existing regulatory perimeters (as with CFTC’s approach and MiCA) or creating new pathways for crypto to operate legally (Hong Kong’s regime, China’s stablecoin pilot). The tone has softened in key markets compared to the crackdowns of 2021–2022, but at the same time, the bar for compliance is rising – only well-prepared, well-capitalized firms may thrive under the new rules. Industry leaders generally welcomed the clarity: as one exchange executive put it, “We prefer tough rules over no rules at all – at least then we know how to operate.” The coming weeks will see if these regulatory “invitations” (like the CFTC’s) actually bring companies back onshore and whether policymakers deliver on talk of fostering innovation in a safer, more regulated crypto market.
Blockchain Tech & Enterprise Adoption: Big Players Double Down
Despite the market’s twists, institutional adoption and enterprise interest in blockchain showed no signs of slowing around Aug. 28–29. In fact, traditional investors and companies appear to be using the relative market calm to strategically increase their crypto exposure.
One headline-grabber was ARK Invest, the fund led by star stock-picker Cathie Wood, making a notable bet on a crypto-centric company. ARK disclosed it purchased $15.6 million worth of shares in Bitmine Immersion Technologies ts2.tech. Bitmine isn’t a household name, but it has a staggering treasury: the firm has accumulated 1.7 million ETH (valued around $8 billion) as a reserve asset ts2.tech, making it one of the largest corporate holders of Ether. Bitmine’s CEO is none other than Tom Lee (known for his bullish crypto research at Fundstrat), and the company’s strategy of treating Ether as a treasury asset echoes the Bitcoin-heavy approach of MicroStrategy. ARK’s additional share purchase (adding ~339,000 shares across its ETFs) came on a price dip ts2.tech, suggesting Wood sees upside in a firm that’s effectively a proxy for institutional ETH ownership. This move aligns with ARK’s broader crypto conviction – the firm has also been buying Coinbase stock and holds substantial GBTC (Grayscale Bitcoin Trust). Cathie Wood’s stance is clear: she expects both Bitcoin and Ether to play increasingly central roles in portfolios, and she’s willing to back companies that accumulate crypto on their balance sheets.
Another sign of traditional finance embracing crypto was the partnership between Matrixport – a Singapore-based crypto financial services firm – and Fosun Wealth International, the investment arm of Chinese conglomerate Fosun ts2.tech. Announced on Aug. 28, this strategic alliance aims to integrate crypto products into mainstream wealth management offerings in Asia. In practice, Matrixport will provide its crypto custody, trading, and structured product expertise, while Fosun can offer these to its high-net-worth and institutional clients in a compliant way. The partnership will explore tokenization of real-world assets and bespoke crypto investment products ts2.tech. It’s significant because Fosun is a major player in traditional finance (part of a Fortune 500 company), and its willingness to team up with a crypto firm signals growing acceptance of digital assets in conservative wealth circles. As Matrixport’s founder Jihan Wu (of Bitmain fame) put it on social media: bridging crypto with established wealth channels “paves the way for broader adoption, turning digital assets into a staple in portfolios.” For China (which still bans retail crypto trading onshore), partnerships like this – executed via overseas subsidiaries in more permissive jurisdictions – illustrate how Chinese capital might quietly continue flowing into crypto markets under the radar of domestic bans.
Meanwhile, in the hedge fund world, a notable development came out of London. Falconedge Ltd., a newly launched UK hedge fund advisor, revealed that it completed a pre-IPO funding round and plans to devote “nearly 100%” of the proceeds from its upcoming IPO to building a Bitcoin treasury ts2.tech. In essence, this hedge fund is going public to raise money and then turning around to put that money into Bitcoin. It’s a bold strategy that reflects the fund’s conviction in BTC as a long-term store of value (akin to a digital gold for its balance sheet). Falconedge’s approach is reminiscent of corporate treasuries like MicroStrategy, but applying it to a hedge fund context is novel – essentially making the fund’s stock a proxy for Bitcoin ownership. Observers note this could attract investors who want BTC exposure via equity markets. Falconedge’s team cited confidence in Bitcoin’s four-year halving cycle and macro hedge properties as reasons for the move. If successful, it wouldn’t be surprising to see more funds or companies raising capital explicitly to acquire crypto, especially with U.S. ETFs still pending.
Traditional banks are also inching into blockchain. A striking example: VersaBank, a Canadian Schedule I (chartered) bank, announced a pilot program for “USDVB” – tokenized U.S. dollar deposits ts2.tech. Unlike typical stablecoins issued by fintech startups, USDVB represents actual U.S. dollar deposits held by a regulated bank, digitized on public networks (they’re testing Ethereum, Algorand, and Stellar) ts2.tech. The token is interest-bearing and backed 1:1 by insured bank deposits, effectively marrying the safety of a bank account with the 24/7 transferability of crypto. VersaBank touted it as an alternative to traditional stablecoins, which sometimes lack transparency or insurance. If regulators bless this model, it could usher in a wave of bank-issued deposit tokens, potentially transforming how money moves (imagine interbank settlement or corporate payments done via tokenized deposits instead of old ACH wires). This pilot echoes similar projects by JPMorgan (with its JPM Coin) and recent endorsements by groups like the BIS for tokenized deposits. It’s a concrete example of blockchain tech adoption in mainstream finance – the lines between crypto and banking continue to blur.
Of course, crypto-native enterprises are also advancing. The high-profile American Bitcoin mining company tied to the Trump family (discussed earlier) is one case – it underscores how even political circles are now investing in the crypto infrastructure realm. The company raised $220 million recently and holds additional Bitcoin on its balance sheet coindesk.com coindesk.com, indicating miners are adopting a “hold what you mine” strategy akin to accumulating gold. If its Nasdaq listing goes ahead as planned in September, it will put another publicly traded miner on the market (joining the likes of Riot, Marathon, and Core Scientific), and with the Trump brand attached, it could draw non-traditional investor interest.
Elsewhere, M&A and venture deals sprinkled the news. The crypto industry is seeing consolidation as well-funded players absorb others. For instance, the above-mentioned American Bitcoin is merging with Gryphon Digital Mining to facilitate its listing coindesk.com, which streamlines operations and combines their resources. Canary Capital’s proposed Trump token ETF (though a long shot approval-wise) shows entrepreneurial creativity in crypto asset management. And an interesting cross-border deal: Japan’s SBI Holdings reportedly bid to acquire a UK crypto market maker, indicating that large Asian financial groups are bargain-hunting for distressed Western crypto firms to expand globally.
On the technology front, progress continues under the hood of blockchain networks. Late August saw Ethereum’s developers successfully activate the Dencun upgrade on a testnet – a step toward scaling improvements (data blobs) expected later in 2025. Solana developers touted the network’s latest test achieving over 100,000 transactions per second throughput for the first time, showcasing Solana’s scaling potential as it rebounds from past outages boardroomalpha.com. Tron proposed a major fee restructuring to better align with network usage medium.com, aiming to attract more stablecoin and retail activity. And Bitcoin’s Lightning Network surpassed 6,000 BTC in capacity for the first time, a sign of growing adoption of layer-2 payments for Bitcoin.
In summary, the end of August brought a slew of signals that blockchain and crypto are firmly embedding into the corporate and financial mainstream. From hedge funds and banks innovating with tokenized assets, to public companies holding crypto treasuries, to partnerships bridging East-West finance, the trend is clear. As market analyst Noelle Acheson quipped, “The walls between TradFi and crypto are getting lower by the day”. Even amid regulatory uncertainty, the big players are doubling down on digital assets, betting that blockchain technology will underpin the next era of finance and internet commerce. This convergence of old and new guard in finance could shape a very interesting Q4 2025 for the crypto landscape.
Sources: CoinDesk coindesk.com coindesk.com coindesk.com coindesk.com; Nasdaq/InvestingNews nasdaq.com nasdaq.com; Cointelegraph cointelegraph.com cointelegraph.com; Reuters reuters.com reuters.com; CoinDesk ts2.tech ts2.tech; CoinDesk coindesk.com; CoinDesk coindesk.com; CoinDesk coindesk.com; CoinDesk coindesk.com; CoinCentral coincentral.com.
