SEC unveils tailored disclosure rules for crypto ETPs as Bitcoin and Ethereum drive $2.7B inflows amid rising investor interest.
Bitcoin captured 83 percent of last week's inflows while Ethereum hit $2.9B YTD, highlighting bullish sentiment in digital assets.
Despite regulatory pressure, crypto investment inflows stay strong with the U.S. dominating and Solana lagging behind in YTD totals.
The U.S. SEC’s Division of Corporation Finance has released detailed guidance for crypto asset exchange-traded product (ETP) disclosures. This update comes as digital asset investment products recorded $2.7 billion in inflows last week. It is also the 11th straight week of positive inflows, bringing the half-year total to $16.9 billion. These inflows align closely with 2024's pace, which stood at $18.3 billion by end-June.
New Regulatory Clarity for Crypto ETP Issuers
According to the latest SEC statement issuers need to reveal information through Securities Acts of 1933 and 1934. The SEC explains that crypto ETPs fall under anti-fraud regulations while remaining non-investment company entities. As a result these investment vehicles adhere to distinct regulatory standards which differ from conventional ETF requirements.
The SEC requires issuers to present investment objectives and tracking benchmarks and underlying cryptocurrency assets through plain language. The offering documents need to reveal custody-related risks together with risks from forks and airdrops as well as network upgrade risks. Underwriters must be identified in offering documents which also need to specify pricing models and list authorized participants.
Besides technological risks, the SEC emphasizes cybersecurity, insurance limitations, and regulatory uncertainty. Each issuer must tailor disclosures based on specific facts and investment structures. Consequently, no one-size-fits-all approach exists, and all disclosures must reflect the issuer’s unique product features.
Bitcoin and Ethereum Drive Inflows
According to the Conshares report, Bitcoin led the inflow surge, capturing $2.2 billion or 83% of last week’s total. In contrast, short-Bitcoin products lost another $2.9 million, totaling $12 million in year-to-date outflows. This highlights a strong bullish sentiment toward Bitcoin in 2025.
Ethereum followed with $429 million in weekly inflows, pushing its year-to-date total to $2.9 billion. Investor confidence remains high, fueled by ETF demand and broader crypto optimism. However, Solana’s inflows lag behind, totaling just $91 million for the year.
Regionally, the U.S. led with $2.65 billion in inflows. Switzerland and Germany followed with modest additions. Conversely, Canada, Hong Kong, and Brazil recorded minor outflows. Hong Kong notably saw $132 million in monthly outflows after recent price surges.
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