Crypto Currents: SEC clears path for altcoin ETFs as SWIFT plans blockchain

The regulatory landscape for digital assets is undergoing a seismic shift, as the SEC clears the path for a flood of new altcoin ETFs and global payments network SWIFT announces plans for a blockchain-based ledger. However, investor caution remains, with spot bitcoin and ether ETFs seeing record weekly outflows. Stay up on the crypto news that matters with “Crypto Currents,” daily from The Fly. Join us 2 PM daily for your essential briefing on the fast-moving world of cryptocurrency on FlyCast radio. Also, subscribe to our YouTube channel for the Crypto Fly By weekly recap.

SEC AND CFTC PAVE WAY FOR NEW PRODUCTS: The SEC has updated its listing standards for spot crypto ETFs, dropping delay notices for at least 16 funds and paving the way for final decisions in October. Cointelegraph reports that the wave of potential approvals includes products offering exposure to altcoins like solana (SOL-USD), ripple (XRP-USD), litecoin (LTC-USD), and dogecoin (DOGE-USD) from asset managers such as Fidelity, Franklin Resources (BEN), VanEck, and Bitwise. The move follows the SEC’s recent adoption of new rules to fast-track the approval timeline for certain crypto funds, aligning them more closely with traditional commodity-based products.

In another major regulatory development, Crypto.com has received approval from the CFTC to offer margined crypto derivatives to U.S. clients through its North American affiliate. According to a company statement, the approval allows its subsidiary to operate as a registered Futures Commission Merchant, enabling it to act as an intermediary for both retail and institutional customers in the U.S. derivatives market.

SWIFT TO LAUNCH BLOCKCHAIN PAYMENTS LEDGER: Global financial network SWIFT announced it is developing a blockchain-based ledger to facilitate 24/7 cross-border payments. According to a company announcement on Monday, SWIFT is collaborating with over 30 financial institutions on the project, which is based on a prototype from Ethereum developer Consensys. The initiative is seen as a move by the traditional finance giant to integrate digital asset technology and compete with the potential disruption from stablecoins. The new ledger will extend SWIFT’s role into the digital ecosystem, enabling banks to move regulated tokenized assets.

SPOT BITCOIN AND ETHER ETFS SEE RECORD OUTFLOWS: Despite positive regulatory news, spot crypto ETFs experienced a significant reversal in fund flows last week. According to data from SoSoValue, U.S. spot bitcoin (BTC-USD) ETFs recorded $902.5M in net outflows, ending a four-week inflow streak. Fidelity’s fund saw the largest redemptions, though BlackRock’s (BLK) IBIT bucked the trend with inflows of over $173M. The Block reports that spot ether (ETH-USD) ETFs fared no better, posting their largest-ever weekly outflow of nearly $800M. Analysts attribute the risk-off sentiment to uncertainty surrounding potential Federal Reserve rate cuts and a new round of U.S. tariffs.

STRATEGY BUYS MORE BITCOIN, MINERS DIVERSIFY INTO AI: Corporate accumulation and strategic pivots continue to shape the sector. (MSTR) announced it purchased an additional 196 bitcoin for $22.1M, bringing its total holdings to 640,031 BTC. The purchase was funded through the company’s at-the-market stock program and issuance of preferred stock.

Meanwhile, the trend of bitcoin miners diversifying into AI infrastructure is accelerating. Bloomberg reported that TeraWulf (WULF) plans to raise $3B in a debt deal supported by Google (GOOGL) to expand its data center operations. The funding is being arranged by Morgan Stanley (MS). Google, which now holds a 14% stake in TeraWulf, also recently backed a similar deal for Cipher Mining (CIFR).

PRICE ACTION: As of time of writing, bitcoin was trading at $114,072.71 , while ether was trading at $4,187.94, according to price data from CoinDesk.