The crypto world has seen a dramatic surge in activity this week, particularly in the U.S. spot Bitcoin ETF market. At the same time, political and regulatory scrutiny surrounding the cryptocurrency industry continues to intensify.
Spot Bitcoin ETFs Attract $2.75 Billion in a Week
U.S.-based spot Bitcoin exchange-traded funds (ETFs) recorded an unprecedented $2.75 billion in inflows this week, a significant increase from the $608 million seen the previous week. On the final trading day alone, the market saw $211.7 million pour into these products, underscoring renewed investor confidence and growing institutional interest.
BlackRock’s iShares Bitcoin Trust (IBIT) led the charge, attracting $430.8 million in new capital. In contrast, Grayscale’s Bitcoin Trust (GBTC) experienced outflows of $89.2 million, continuing a trend as investors rotate into lower-fee alternatives.
This uptick in ETF activity reflects a broader positive sentiment in the Bitcoin market, likely driven by growing acceptance of cryptocurrency as a legitimate asset class and anticipation of favorable regulatory developments.
Political Heat Intensifies Over Trump’s Crypto Dinner
While market momentum surges, political tensions are also rising. U.S. lawmakers have called for an investigation into a recent cryptocurrency-focused dinner attended by former President Donald Trump. Concerns have been raised about potential foreign influence and corruption linked to the event, particularly surrounding a Trump-themed memecoin that was promoted during the gathering.
Protesters outside the event and calls from House members highlight the increasing scrutiny of political figures involved in crypto-related initiatives. Lawmakers are particularly focused on transparency and potential violations of campaign finance or lobbying regulations.
Meanwhile, former Binance CEO Changpeng Zhao has publicly refuted allegations reported by The Wall Street Journal connecting him to World Liberty Financial (WLF). Zhao denied arranging any meetings or having any involvement with the group during his international travels. He criticized the report as misleading and emphasized that he is not associated with WLF or its operations.
As crypto continues to weave itself into both financial markets and political narratives, industry participants and regulators alike are navigating uncharted territory. Investors should remain alert to both the opportunities and the ongoing regulatory developments shaping the space.
