Trading Desk Insights
Crypto markets slipped on Friday as jitters over U.S. trade policy rippled through global risk assets. BTC has decisively broken below the 4-hour trend channel we’ve been tracking and is now wrestling with the critical $105,000 support where bulls are eyeing a bounce back toward $109,000, but momentum is shaky. ETH moved in lockstep despite the SEC clarifying that staking doesn’t fall under securities rules but is merely an administrative function. Meanwhile, SOL is pulling back towards $160, grinding toward its $140–$155 support band, dragging SOLETH down another 2% today and 10% for the week.
On the ETF front, spot BTC ETFs have pulled in $5.85 billion in net flows so far this month, a sharp jump from $2.97 billion in April. Notably, the 90-day rolling volatility for BlackRock’s Bitcoin Trust ETF has dipped to 47.64, its lowest level since launch, making it increasingly attractive for institutions seeking bitcoin exposure without the high-octane, tech-like swings. Bloomberg’s Eric Balchunas points out that this dampened volatility is drawing more institutional capital, setting up a feedback loop that further stabilizes the ETF space.
Adding fuel to the market narrative, Spanish banking heavyweight Santander is reportedly eyeing crypto offerings for retail clients, while Panama is proposing that ships pay Panama Canal transit fees in BTC, a headline-grabbing signal for bitcoin’s growing role in global commerce.
On the regulatory side, the SEC has officially dropped its lawsuit against Binance and founder Changpeng Zhao, who had already settled separate charges with the U.S. Department of Justice, paying a $4.3 billion fine and serving a four-month jail term.
Meanwhile, on the macro front, Trump reignited trade war fears on Friday, accusing China of breaching a preliminary trade deal, just a day after Treasury Secretary Scott Bessent admitted that talks with Beijing are “a bit stalled.” China has yet to relax rare earth restrictions as Washington had hoped, adding to the fog of global trade uncertainty. U.S. stock futures retreated Friday morning following Trump’s remarks, though broader markets are poised to wrap up May with impressive gains: the S&P 500 has tacked on more than 6% this month, while the Nasdaq has soared nearly 10%.
The News Room
SEC Removes Key Hurdle for Ethereum ETFs by Exempting Staking from Securities Rules
The U.S. Securities and Exchange Commission (SEC) has clarified that common forms of Ethereum staking—such as self-staking, delegated staking, and custodial arrangements—do not fall under securities regulations. This decision removes a significant regulatory obstacle for Ethereum-based exchange-traded funds (ETFs), potentially paving the way for broader institutional adoption and innovation in Ethereum investment products.
Bipartisan Lawmakers Roll Out CLARITY Act, Shift Crypto Spot Rule to CFTC
A bipartisan group of U.S. lawmakers has introduced the Digital Asset Market Clarity Act, aiming to delineate regulatory responsibilities between the Commodity Futures Trading Commission (CFTC) and the SEC. The proposed legislation would place the spot trading, brokerage, and custody of digital commodities under the exclusive supervision of the CFTC, while maintaining dual oversight for hybrid products that combine securities. The bill also mandates that crypto dealers and brokers segregate customer funds and disclose conflicts of interest, aligning with legal precedents set in cases like SEC vs. Ripple
Bloomberg Analyst Foresees Meta as Trailblazer in Corporate Bitcoin Integration
A Bloomberg analyst predicts that Meta Platforms Inc. (NASDAQ: META) will lead the way in corporate Bitcoin integration. The company is expected to incorporate Bitcoin into its financial strategies, potentially influencing other major corporations to follow suit. This move could signify a significant shift in how large tech firms engage with digital assets, further legitimizing cryptocurrency in mainstream finance.
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This research is for informational use only. This is not investment advice. Other than disclosures relating to Secure Digital Markets this research is based on current public information that we consider reliable, but we do not represent it is accurate or complete, and it should not be relied on as such. The information, opinions, estimates, and forecasts contained herein are as of the date hereof and are subject to change without prior notification. We seek to update our research as appropriate.
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