Markets Rally as Trump Opens 401(k)s to Crypto

Market Highlights

• Trump Opens Retirement Plans to Crypto: Trump’s executive order paves the way for trillions in 401(k) assets to gain exposure to Bitcoin and other digital assets.
• Regulatory Green Light for Liquid Staking: SEC clarification that liquid-staking protocols are not securities fuelled a surge in Ethereum and DeFi governance tokens.
• ETH ETFs Outpace BTC Again: US spot ETH ETFs saw US$326 million in net inflows, topping Bitcoin ETF flows for the second week in a row.
• DeFi Tokens Surge: LDO, AERO, MNT, and ENA ranked among this week’s top performers, fuelled by strong market sentiment.

Market Overview

Crypto markets roared higher this week as two pivotal US policy developments opened new channels for institutional and retail adoption.

Early in the week, the US Securities and Exchange Commission clarified that liquid-staking protocols and their receipt tokens generally do not constitute securities under US law — a ruling widely viewed as a green light for decentralised, non-custodial staking. The decision fuelled a surge in Ethereum and related DeFi protocols, many of which ranked among the week’s top performers.

Later, momentum accelerated when President Donald Trump signed an executive order opening trillions of dollars in 401(k) retirement plan assets to a wider range of investments, including cryptocurrencies. The move creates a direct channel for Bitcoin and other digital assets to enter mainstream retirement portfolios.

Together, these catalysts sparked a decisive shift in sentiment, sending Ethereum to multi-month highs, lifting Bitcoin, and driving broad-based gains across large-cap altcoins as risk appetite returned in force.

Bitcoin (BTC)

Bitcoin (BTC) returned to the green this week, rising +4.15% to close near US$119,000. After a choppy start, the rally gained traction into the weekend following news that President Donald Trump had signed an executive order permitting 401(k) retirement plans to hold Bitcoin and other crypto assets.

ETF Inflows: US spot BTC ETFs saw US$246.75 million in net inflows for the week, according to SoSoValue. While early-week outflows weighed on sentiment, flows reversed sharply toward the end of the week as investor confidence improved alongside broader market strength.

Corporate Treasury Demand: Regulatory filings revealed that Harvard Management Company, which oversees the university’s endowment, holds US$116 million in BlackRock’s iShares Bitcoin Trust — a notable sign of institutional adoption from one of the world’s most prestigious academic institutions.

Ethereum (ETH)

Ethereum (ETH) season is heating up. After last week’s pullback, ETH rebounded with a +21.45% gain, breaking above US$4,000 for the first time in eight months and closing at US$4,251 — its highest level since December 2021. Clearing the US$4,000 resistance triggered US$207 million in short liquidations, accelerating upward momentum shortly after.

The rally was underpinned by regulatory clarity after the SEC’s Division of Corporation Finance confirmed that properly structured liquid-staking protocols and their receipt tokens generally do not constitute securities under US law. Ethereum network transactions surged to record highs, supported by increased staked ETH and renewed market confidence.

ETF Inflows: US spot ETH ETFs outpaced BTC products for the second consecutive week, attracting US$326 million in net inflows, according to SoSoValue. After a sharp US$465 million outflow on Monday, flows turned positive for the remainder of the week, with Friday alone seeing US$461 million in inflows.

Corporate Treasury Demand: SharpLink Gaming announced it had raised US$200 million to expand its ETH holdings, lifting its total position to more than US$2 billion.

Altcoins

Large-cap altcoins rallied this week as market sentiment turned positive, with all majors finishing in the green.

Dogecoin (DOGE) led the pack, jumping +17.66% to recover from last week’s losses. Solana (SOL) followed with a +12.77% gain, while Cardano (ADA) rose +10.16% and XRP (XRP) added +8.11% amid the broader market recovery. Binance Token (BNB) climbed +7.37%, and Tron (TRX) advanced +3.31%, marking its seventh consecutive week of gains.

Biggest Gainers:

• Lido (LDO) +56.80%: LDO surged on renewed interest in Ethereum staking, boosted by the US SEC’s recent affirmation that liquid staking protocols are not securities. As the largest liquid staking provider on Ethereum, with US$38.4 billion in TVL, Lido has seen growing demand for liquid staking derivatives like stETH.
• Aerodrome (AERO) +51.66%: AERO rallied after Coinbase enabled in-app DEX trading for Base-native assets, expanding access to projects on the network. As the largest decentralised exchange on Base, with over US$600 million in total value locked, Aerodrome stands to benefit directly from the increased visibility and trading activity.
• Mantle (MNT) +45.28%: MNT posted strong gains on the back of surging network activity and strategic initiatives from its team. Daily active addresses have risen more than 1,600% over the past month, supported by a 25% increase in stablecoin liquidity to US$650 million and the launch of UR — a crypto-first neobank designed to bridge traditional and decentralised finance. Mantle also strengthened its position with a US$392 million ETH allocation to its new Strategic ETH Reserve, making it the eighth-largest known ETH holder.
• Ethena (ENA) +34.07%: ENA has remained one of the market’s strongest performers since the signing of the GENIUS Act, which created favourable regulatory tailwinds for its synthetic dollar stablecoin. This boost has driven USDe’s rapid rise to a record US$10 billion TVL. Despite major token unlocks on 5 August, demand for ENA has held firm, supported by sustained whale accumulation and a US$260 million token buyback programme.

Biggest Losers:

• Qubic (QUBIC) -14.49%: QUBIC fell ahead of its first halving on 20 August, which will cut weekly emissions nearly in half through an increased burn rate. Miners and holders appear to be selling in anticipation. Sentiment was further weighed by an alleged DDoS attack that reduced pool hashpower from 2.6 GH/s to 0.8 GH/s. 
• Toncoin (TON) -6.34%: TON fell over 6% despite news that Verb Technology is raising US$558 million and rebranding as TON Strategy Co., becoming the first public company to hold Toncoin as a treasury asset. The drop suggests a “sell the news” reaction, with some investors likely taking profits immediately after the announcement.

ICYMI - The Week in Crypto News

Here are a few key stories you may have missed:

• Trump’s Executive Order on Crypto in 401(k)s: President Trump signed an executive order allowing crypto and private assets in 401(k) retirement plans, marking a significant step toward integrating digital assets into mainstream retirement portfolios and expanding access for millions of Americans.
• US Crypto Policy Shifts: The White House released its first comprehensive crypto policy report alongside the SEC’s launch of “Project Crypto”, a sweeping initiative to modernise financial regulations. The plan seeks to establish clearer, innovation-friendly frameworks for securities, stablecoins, NFTs, and commodities, aiming to bring greater regulatory clarity to the digital asset sector.
• Ripple Five-Year SEC Battle Ends: A federal judge fined Ripple US$125 million and closed the five-year SEC lawsuit, clearing a major regulatory cloud over XRP. The decisive outcome strengthens Ripple’s position in the US market and could pave the way for clearer legal precedents benefiting the wider crypto industry.
• Chainlink Announces LINK Reserve: Chainlink unveiled a Strategic LINK Reserve funded by revenue from its on- and off-chain services. The reserve will support long-term ecosystem growth, including incentives for data providers and staking rewards. 
• Ethena Labs’ USDe Hits US$10B TVL: USDe has become the fastest-growing stablecoin in history, surpassing US$10 billion in total value locked in just 500 days. Momentum has accelerated in the wake of the GENIUS Act’s approval, which has provided significant tailwinds for the stablecoin market and boosted demand for USDe’s yield-generating model.
• Pendle TVL Hits Record US$8.3B After Boros Launch: Pendle’s total value locked surged to an all-time high of US$8.27 billion following the debut of Boros, its new yield-trading platform. Boros enables traders to take long or short positions on funding rates and has driven a sharp increase in deposits and on-chain activity since launch.
• Harvard Reveals US$116M BlackRock Bitcoin ETF Position: Regulatory filings show that Harvard Management Company, which manages the university’s endowment, holds US$116 million in BlackRock’s iShares Bitcoin Trust. Brown University also increased its stake to US$13 million, signalling growing institutional adoption of Bitcoin among elite US universities.
• WIF Hat Sells for US$792,696: The knitted hat from the Solana meme coin Dogwifhat fetched nearly US$800K at auction. The winning bidder plans to return the hat “to the community”, cementing its status as a piece of crypto pop culture.

Looking Forward - The Week Ahead

Key upcoming events to watch:

• US Inflation Data Release (12 August): July’s Consumer Price Index (CPI) report is due, with forecasts pointing to 2.9% headline inflation and 3.0% core inflation. Softer-than-expected figures could support risk assets like Bitcoin, while higher readings may weigh on sentiment.
• APT Token Unlock (August 12): Approximately US$53.6 million worth of APT tokens (2.20% of circulating supply) will be unlocked, which could spark short-term price swings.
• US Producer Price Index Release (14 August): Coming on the heels of the CPI report, the PPI data will shed light on wholesale inflation trends and may play a key role in shaping market expectations for the Federal Reserve’s next policy decision.
• FTX Distribution (15 August): FTX is set to distribute US$1.9 billion in cash to creditors, a move that may indirectly influence market flows depending on how recipients deploy funds.
• Sharplink Gaming Earnings Call (15 August): Sharplink Gaming, the ETH treasury firm, will release its quarterly earnings. Any commentary on its crypto holdings could be noteworthy for ETH sentiment.
• ARB Token Unlock (16 August): Approximately US$43.88 million worth of ARB tokens (2.04% of circulating supply) will be released, potentially adding to supply-side pressure.
• FTN Token Unlock (18 August): With US$91.4 million in FTN (4.64% of circulating supply) scheduled for release, the sizable unlock poses a risk of selling pressure if holders choose to cash out.

Thanks for reading this week’s Market Pulse. We’ll be back next week with more insights from the crypto markets!