XRP price traded lower for a second consecutive day, slipping 2.03% to $2.36 on May 17 amid rising legal uncertainty and bearish derivatives flows. US District Judge Analisa Torres’ latest ruling in the SEC vs. Ripple case has sparked fresh doubts about XRP’s institutional clarity, while open interest and trader sentiment reflect decline in investor confidence. Could weak trading volumes trigger further downsizing over the weekend? Judge Torres’ Ruling Casts Doubt on XRP’s Regulatory Future Ripple (XRP) price tumbled to weekly lows around $2.3 on Friday after Judge Analisa Torres rejected a joint motion from Ripple and the SEC that sought clarity on the ban against institutional XRP sales. Ripple (XRP) Price Action, May 17, 2025 | Source: Coingecko The negative market reaction continued on Saturday, as Ripple price traded as low as $2.31 as the decision to uphold the $125 million settlement find now introduces fresh regulatory risks as… Read More at Coingape.com
Asset manager Bitwise has moved to register a Near Protocol ETF in Delaware, a move that signals the firm’s intention to file for a NEAR ETF with the US Securities and Exchange Commission (SEC). The NEAR price is looking to break out following this development, with the altcoin already up over 5% on the day.
NEAR Price Eyes Breakout As Bitwise Registers ETF In Delaware
The NEAR price is eyeing a breakout as Bitwise looks to offer a Near Protocol ETF. State of Delaware data shows that Bitwise has registered a Near ETF with the Division of Corporations. The asset manager incorporated this fund on April 24 under the entity name ‘BITWISE NEAR ETF.’
This move is significant as it is usually the first step towards filing to offer a spot ETF with the US SEC. As such, the asset manager is likely to file the S-1 and 19b-4 forms for this Near ETF with the regulator next.
These filings will officially kickstart the process for the SEC to either deny or approve the fund. This ETF will provide institutional access to the Near Protocol ecosystem, which is bullish for the NEAR price as more capital flows into the altcoin.
Meanwhile, Bitwise has already filed for Solana, XRP, Dogecoin, and Aptos ETFs with the Commission, as it looks to expand its offerings beyond the Bitcoin and Ethereum ETFs. As CoinGape reported, the XRP and Solana ETFs are currently leading the race for a potential approval from the SEC. Both altcoins currently have futures markets, which puts them ahead of other altcoins.
However, the SEC has shown it is in no hurry to approve any of these ETFs, despite its more friendly stance towards the crypto industry under the new administration. The Commission recently delayed its decision on Grayscale’s Polkadot ETF filing.
While it remains unclear when Bitwise would file for the Near Protocol ETF with the SEC, this move is undoubtedly bullish for the NEAR price, which has already surged over 5% following the revelation of the Delaware registration.
MicroStrategy 2.0:- Bitcoin’s significance as a strategic asset has grown significantly. Today only it surpassed Google’s market cap to become the fifth-largest asset with $1.862 trillion in market value.
As it continues to rally and push further, major investment firms are continuing to scale their Bitcoin Acquisition strategy.
Michael Saylor’s MicroStrategy, now rebranded as Michael Saylor, has been accumulating Bitcoin since 2020. As of April 2024, the company holds 214,400 Bitcoins. It has now become the world’s largest corporate holders of Bitcoin, its primary treasury reserve asset.
In a move attempting to create its alternative,US Commerce Secretary Howard Lutnick’s son has also jumped into it. His son, Brandon Lutnick, has partnered with Tether, Bitfinex and SoftBank to form a MicroStrategy rival – 21 Capital.
Lutnick’s New Crypto Venture with SoftBank and Tether
The influential wall street figure, Brandon Lutnick, currently serves as the Chairman of Cantor Fitzgeral, LP. As per the Financial Times report, Lutnick’s new SPAC venture, 21 Capital, will be sponsored by Cantor only.
Cantor, the investment banking firm, has created a black check company, Cantor Equity Partners, to drive the operations of this new crypto venture.
It had reportedly raised $200 million in January and plans to recieve $3 bn in Bitcoin from its partners. The trio consortium of its partner includes Tether and Bitfinex, SoftBank. Each will contribute:
1. 1.5 bn of BTC – Tether
2. $900 mn of BTC – SoftBank
3. $600mn of BTC – Bitfinex
On Tuesday, Bitcoin Price surpassed $91,000 – for the first time since March 2. Going by its current price, number of Bitcoins 21 Capital will see in contributions will be roughly around;
1. Tether: $1.5 billion / $91,000 – 16,484 BTC
2. SoftBank: $900 million / $91,000 – 9,890 BTC
3. Bitfinex: $600 million / $91,000 – 6,593 BTC
BTC Price Today | Source: Coingecko
Once merged, 21 Capital will convert its bitcoin holdings into publicly traded shares priced at $10 each. In the share-issuance calculation, it will value Bitcoin at $85,000 per coin for public investors.
According to 21 Capital, this will lower the barrier to large-scale bitcoin exposure without direct crypto custody unlike MicoStrategy. Its share-pricing formula does highlights the vehicle’s bullish long-term outlook on bitcoin’s price trajectory.
Can it Become MicroStrategy 2.0
Lutnick’s investment vehicle, 21 Capital, has been dubbed as “MicroStrategy 2.0”. This is because of its aim to replicate MicroStrategy’s treasury-bitcoin accumulation strategy at institutional scale.
MicroStrategy pioneered the corporate-treasury-bitcoin model in 2020. It raised capital via debt and equity to amass over 528,000 bitcoins at an average cost of $66,385 each.
21 Capital seeks to replicate and scale this playbook. It aims to use convertible bonds and private-placement equity alongside its SPAC proceeds. As per the information available, it is expecting to raise $350 million in convertible bonds and a separate $200 million private equity for its BTC purchase. placement
However, this is mirroring MicroStrategy’s own “21/21 Plan”. It targets $42 billion in combined equity and fixed-income raises over three years. On the surface, ‘Strategy’ of both the firms may appear the same, but in the long term, it is the execution that will determine its fate.
21 Capital’s Mammoth Task – Market Volatility
Executing bitcoin acquisition strategy on a large-scale comes with certain financial risks. Despite booming Bitcoin gains, MicoStrategy has reported four consecutive quarterly net losses, including a $1.17 billion loss in fiscal 2024,
Though its bold strategy has earned the firm NASDAQ-100 inclusion, success of such firms is subject to market volatility.
There’s a growing spree in the development of such firms. Recently, Kraken Executives acquired Janover to push their acquisition strategy but for Solana.
Thus, the fortune of 21 Capital will be directly tied to the long-term price trajectory of Bitcoin. If bullish, its boon. But if bearish for long-term, it can doom.
The Financial Services Agency of Japan is taking a strategic step towards crypto regulation. In the latest development, the FSA released a discussion paper that intends to classify digital assets into categories, based on the distribution of funds.
Notably, Bitcoin, Ethereum, and similar decentralized cryptocurrencies will be included in the Type 2 category, while utility tokens are accommodated in Type 1.
Crypto Regulation: Japan Proposes for Two-Category Classification of Digital Assets
In a recent paper entitled “Verification of the state of the system related to crypto assets,” Japan’s Financial Services Agency has sought the public opinion on classifying digital assets. The new crypto regulation framework aims categorizing digital assets into two, based on fund distribution.
In detail, the paper outlines that the digital assets will be classified into Type 1 and Type 2.
Type 1
Type 1 covers crypto assets used for business purposes or to fund the parent project. This includes altcoins from emerging projects that require community funding to grow. This category includes utility tokens. The proposal states, “For crypto assets of type 1, there is a high need to eliminate the information asymmetry between issuers and users regarding the purpose of use of funds raised and the content of projects, etc.”
Type 2
Type 2 covers digital assets that are more decentralized or have a more established presence. Top cryptocurrencies like Bitcoin and Ethereum, which do not raise funds for a business, are included in the second category. They classify these as non-fundraising or non-business crypto.” The proposal notes, “For crypto assets of type 2, there are many that cannot be identified as specific issuers, so it is difficult to impose an obligation to disclose and provide information on issuers.”
Japan’s Crypto Regulation: A Closer Look
Japan has been taking efforts to bolster the crypto industry’s growth and establishment. Despite its historical restrictive stance, Japan has taken a more nuanced approach to crypto regulation. For instance, the authority considers to lift its ban on crypto exchange-traded funds (ETFs), sparking enthusiasm.
The country’s latest move to classify digital assets aligns with Japan’s broader crypto regulations. Recently, the FSA announced its plans to categorize cryptocurrencies as financial products. These moves highlight the country’s proactive vision of overseeing the crypto market.
