Crypto markets witnessed a flurry of major developments today as digital asset funds broke new records, a new law threatened traditional banks, and DefiLlama took a decisive step against questionable trading data. Here’s a round-up of the key highlights shaping the day in crypto.
Crypto Funds Break Records with $5.95 Billion in Weekly Inflows
Cryptocurrency investment products have recorded their highest-ever weekly inflows, hitting $5.95 billion amid concerns about a possible US government shutdown. According to CoinShares, global crypto exchange-traded products (ETPs) saw unprecedented demand in the week ending Friday.
James Butterfill, head of research at CoinShares, explained that the inflows were driven by “a delayed response to the recent interest rate cut by the Federal Open Market Committee, weak employment data, and fears surrounding US government stability after the shutdown.”
The surge coincided with a bullish market trend that saw Bitcoin rise to a historic high above $125,000 over the weekend. This week’s inflows surpassed the previous $4.4 billion record set in mid-July by 35%.
Unlike earlier records where both Bitcoin and Ether saw similar inflows, the latest rally was overwhelmingly led by Bitcoin, which attracted $3.6 billion. Butterfill added that investors avoided short positions despite near all-time high prices, reflecting continued market optimism.
Ether, Solana, and XRP Follow Bitcoin’s Lead
Ether-based products followed with $1.48 billion in inflows, pushing year-to-date totals to $13.7 billion, almost triple last year’s figure. Solana took third place with $706.5 million, while XRP funds added $219.4 million. Both Solana and XRP recorded their highest inflows to date, CoinShares reported.
Analysts suggest that investor confidence has strengthened across major altcoins, supported by broader market recovery and increased institutional participation.
GENIUS Act Could Disrupt Traditional Banking
The newly enacted stablecoin-focused GENIUS Act could mark a major turning point for the banking sector, according to Tushar Jain, co-founder and managing partner at Multicoin Capital. Jain argued that the Act will drive an “exodus of deposits” from traditional bank accounts into higher-yield stablecoins.
“The GENIUS Bill is the beginning of the end for banks’ ability to exploit retail depositors with minimal interest,” Jain said in a post on X.
He predicted that large technology companies such as Meta, Google, and Apple could soon compete with banks by offering better stablecoin yields and faster, always-on payment systems.
Jain also noted that traditional banking groups have already tried to safeguard their profits by urging regulators to restrict stablecoin issuers from offering interest through affiliates. However, the GENIUS Act may now give stablecoin providers a significant advantage in attracting deposits away from traditional banks.
DefiLlama Removes Aster Trading Data Over Integrity Concerns
DefiLlama, a leading decentralised finance analytics platform, announced it is removing trading volume data for the Aster decentralised exchange (DEX) due to concerns over its accuracy.
According to 0xngmi, the pseudonymous co-founder of DefiLlama, Aster’s perpetual futures trading volume appeared unusually high, almost matching Binance’s levels. The team identified a correlation ratio of nearly one between the two platforms’ trading volumes, raising suspicions of possible wash trading.
“Aster does not provide access to lower-level data such as who is making or filling orders,” 0xngmi explained. “Until we can verify the data and rule out wash trading, Aster perpetual volumes will remain delisted.”
Aster has recently gained attention in the crypto community as a fast-growing challenger to Hyperliquid, another decentralised perpetual futures exchange. The platform’s link to Binance co-founder CZ has further heightened scrutiny around its trading data and transparency.
Market Outlook
The record-breaking inflows, bullish momentum across major cryptocurrencies, and regulatory shifts in the banking and stablecoin space underline how rapidly the crypto landscape is evolving. While institutional interest appears stronger than ever, concerns around transparency and market manipulation continue to challenge decentralised platforms.
As Bitcoin and Ether approach new milestones and stablecoins edge closer to mainstream financial adoption, the coming weeks could determine whether the current rally marks a long-term shift or a temporary surge driven by short-term macroeconomic factors.
