Daily Report 2 July 2025

Global markets were mixed as the Dow Jones (+0.91%) rose while the S&P 500 (-0.11%) and Nasdaq (-0.82%) fell, with investors rotating out of technology stocks as Tesla plunged 5.34% amid renewed Trump-Musk tensions. Trade uncertainty persisted ahead of the July 9 deadline for EU-US tariff negotiations, with Trump refusing to extend exemptions while the EU remained open to a universal 10% tariff proposal. The US Senate narrowly passed a tax and spending bill 51-50 with VP Vance casting the deciding vote, while Fed Chair Powell noted that US interest rates would be lower without inflationary pressures from new tariffs. Eurozone inflation reached the ECB's 2% target, though US manufacturing activity remained in contraction with the PMI at 49.5, signaling continued economic headwinds.
The global crypto market cap decreased 0.5% in the past 24h to $3.28tn while the 24h volume decreased 3% to $98bn.

• In the past 24 hours, crypto liquidations increased by 30% and totaled $255.3m, with 73.6% of them long positions.

• According to data from SoSo Value, Bitcoin ETFs suffered their worst day since May 30th on July 1, recording massive outflows of $342.3 million as investors took profits following the strong June rally. Fidelity's FBTC led with $172.7 million in outflows, while Grayscale's GBTC saw $119.5 million in redemptions and even BlackRock's typically resilient IBIT recorded zero flows for the first time in recent memory. All Bitcoin ETFs declined over 2% as the cryptocurrency tumbled, with total assets falling to $131.3 billion from $134.1 billion and cumulative net inflows dropping to $48.6 billion. The sharp reversal marked a dramatic end to June's momentum, when the ETFs attracted over $2.3 billion in net inflows across the final weeks of the month, suggesting institutional investors are taking a more cautious approach as markets enter the typically volatile summer period.

• According to data from SoSo Value, Ethereum ETFs bucked the broader trend on July 1, recording net inflows of $40.7 million even as Bitcoin ETFs suffered massive outflows, demonstrating relative resilience in the face of crypto market weakness. BlackRock's ETHA dominated with $54.8 million in inflows while Grayscale's ETHE added $10.0 million, more than offsetting $24.1 million in outflows from Fidelity's FETH as institutional investors showed selective appetite for ETH exposure. All Ethereum ETFs declined around 4.6% as the cryptocurrency tumbled, with total assets falling to $9.95 billion and cumulative net inflows reaching $4.25 billion since launch. The contrasting performance against Bitcoin ETFs suggests investors may view Ethereum's fundamental outlook more favorably, with the ETH products continuing to attract capital even during broader crypto market stress, though they remain significantly smaller in scale than their Bitcoin counterparts.

• The US Treasury sanctioned Russia-based Aeza Group and four of its executives for allegedly providing bulletproof hosting services to ransomware and malware operators, while also freezing a crypto wallet containing $350,000 connected to the cybercrime infrastructure.
• Moody's partnered with fintech startup Alphaledger to run a pilot program embedding real credit ratings directly onto the Solana blockchain for tokenized municipal bonds, enabling smart contracts to automatically read and interact with traditional credit assessments without external verification.
• Bitcoin exchange reserves have dropped to a seven-year low, signaling a potential supply shock as institutional buying from ETFs continues.
• Connecticut Governor Ned Lamont signed legislation prohibiting the state government from accepting cryptocurrency payments or establishing a digital asset reserve, marking a departure from several other US states that have created Bitcoin reserves.
• Swiss Financial Market Supervisory Authority ordered Swissquote, the company behind crypto-friendly Yuh app, to reduce phishing and impersonation attempts after over 600 fraudulent websites targeting its platforms were discovered in the first half of 2025.
• Deutsche Bank plans to launch a crypto custody service in 2026 in partnership with Bitpanda and Taurus, expanding its digital asset initiatives in Europe as part of its strategic move into the digital asset space.
• UK's Smarter Web has boosted its bitcoin treasury with a $24.7 million BTC purchase as part of its 10-year strategy. They now hold 773 BTC.
• Paxos launched the Global Dollar stablecoin in the European Union, claiming compliance with the Markets in Crypto-Assets regulation and receiving support from Kraken, Robinhood, and Mastercard under the Global Digital Asset Network initiative.
• Centrifuge has partnered with S&P Dow Jones Indices to launch the first tokenized S&P 500 index fund, enabling programmable on-chain index-tracking products.