Binance announced today that MGX, a sovereign wealth fund from Abu Dhabi, invested $2 billion in the company. The transaction happened entirely using stablecoins.
This is both the largest investment ever made in a crypto-related business and the largest investment ever made using cryptoassets. Binance didn’t specify which stablecoin was used, but the UAE has favored Tether products in the past.
Changpeng “CZ” Zhao, former CEO of Binance, also shared this news on X (formerly Twitter).
“MGX, an Abu Dhabi sovereign wealth fund, invests $2 billion in Binance for a minority stake. The transaction will be 100% in crypto (stablecoins), marking it the largest investment transaction done in crypto to date. This is also the first institutional investment Binance has taken. Onwards,Build!” CZ wrote.
Since then, however, interest has shifted back. The firm’s press release claimed that roughly one-fifth of its workforce is based in the UAE, for example.
Teng called the development a “significant milestone” and said Binance is “committed to working with regulators worldwide.” This MGX investment will likely increase economic ties in the region.
“We are excited to announce the first-ever institutional investment in Binance by MGX. This is a significant step in advancing digital asset adoption and reinforcing blockchain’s role in global finance,” Binace annouced on X.
Binance’s announcements have been surprisingly light on the exact details of its future relationship with MGX.
However, they were very clear that it was a big deal. This marks the largest-ever investment in a crypto firm and the largest investment paid entirely in cryptocurrency. Wherever the partnership goes from here, it has already made history.
Solana has emerged as a powerful presence in the crypto industry. Since its inception in 2020, the network has dominated the market, demonstrating remarkable levels of user engagement and practical utility, particularly in decentralized finance (DeFi). Many in the industry view it as the next natural contender to receive an ETF approval in the United States.
However, others are more cautious in their evaluations. BeInCrypto spoke with representatives from Gravity, Variant, and OKX to understand the areas where Solana is still lacking. Industry leaders referred to centralization, network reliability, and excessive regulation as points of contention for Solana’s ETF approval.
Bitcoin and Ethereum’s Precedent
The availability of exchange-traded funds (ETFs) for prominent cryptocurrencies has grown over the past year. These funds offer investors diversified investment opportunities and act as a bridge between traditional finance and the increasingly mainstream cryptocurrency market.
Meanwhile, the deadline for some filings, including Grayscale’s, was extended until October. Nonetheless, posts on X and some analytical reports suggest yesterday’s deadline as a date of interest for an initial or consolidated SEC response to several applications.
2025 Predictions and Market Expectations
The tentative approval of a Solana ETF has generated much debate across social media platforms. ETF President Nate Geraci formally predicted that 2025 would be the year of crypto ETFs and that Solana would receive its approval this year.
Per previous reports, former Trump White House Secretary Anthony Scaramucci expressed that, with a Trump reelection, Solana ETFs could gain approval during Q1 of 2025. According to his predictions, Solana would receive the SEC’s green light during the next two weeks.
Meanwhile, the prediction market Polymarket estimates an 82% chance that a Solana ETF will get approved in 2025.
According to a Polymarket poll, Solana has an 82% chance of getting an ETF approval in 2025. Source: Polymarket
Several factors make an imminent Solana ETF approval seem plausible. Less than five years after the network launched, Solana quickly became a major player in the crypto industry, attracting users for its high transaction speeds and low gas fees.
“From a network perspective, Solana’s performance has been remarkable, now driving nearly 50% of all global DEX volume– a dominance that fundamentally reshapes the DeFi landscape. The blockchain is not just handling unprecedented transaction volumes… it’s transforming our understanding of blockchain scalability at scale,” Lennix Lai, Global Chief Commercial Officer at OKX told BeInCrypto.
Solana has established itself as a dynamic force in the crypto industry following a successful 2024.
A Messari report detailed particular growth in Solana’s final quarter across DeFi, liquid staking, NFTs, and institutional involvement. The total value locked (TVL) in Solana’s DeFi sector increased substantially, growing by 64% to $8.6 billion, which placed it behind Ethereum as the second-largest network based on TVL.
Solana’s positive performance, coupled with Donald Trump’s reelection to the US presidency, further amplified the crypto industry’s optimism over an ETF approval.
However, some industry experts have expressed more tempered expectations.
Experts Offer Tempered Expectations
A few days before Trump assumed the presidency, Bloomberg Intelligence analyst James Seyffart said Solana ETFs may not be launched in the US until 2026. He cited the SEC’s precedent of taking a lot of time to review filings as the cause for delay.
In another post, Bloomberg Senior ETF analyst Eric Balchunas said that ETF approvals for other cryptocurrencies were more likely to occur before Solana.
“We expect a wave of cryptocurrency ETFs next year, albeit not all at once. First out is likely the BTC + ETH combo ETFs, then prob Litecoin (bc its fork of btc = commodity), then HBAR (bc not labeled security) and then XRP/Solana (which have been labeled securities in pending lawsuits),” Balchunas said.
Balchunas further explained that complex legal issues around Solana, relating to its status as a security, need to be resolved before it can gain ETF approval. Consequently, he deemed the approval of Litecoin or Hedera ETFs more likely.
Uncertainty over whether Solana classifies as a security is a major driver fueling doubts over its ETF approval.
Security Classification Concerns
Martins Benkitis, co-founder and CEO of Gravity, explained that Solana’s regulatory classification complicates its path to approval.
“It’s no secret there’s currently a lack of precedent for Layer-1 blockchains beyond Bitcoin and Ethereum in the ETF space, this suggests cautious optimism but with higher regulatory hurdles. Bitcoin, being a commodity in the SEC’s eyes, and Ethereum’s gradual transition to PoS had different legal considerations. Solana, on the other hand, faces concerns over potential classification as a security due to its token distribution and foundation’s involvement,” Benkitis told BeInCrypto.
The SEC identified Solana as a security in lawsuits against Binance and Coinbase over the past two years, although these lawsuits have since been dropped. The SEC argued that these tokens could be considered investment contracts under the Howey Test.
While some interpreted the SEC’s lawsuit withdrawal as a softening stance on Solana’s security classification, others quickly challenged this assumption.
“There is no reason to think [the] SEC has decided SOL is a non-security. That they don’t want to do discovery on a dozen tokens in the Binance case appears to be a litigation tactic, not a change in policy,” said Jake Chervinsky, Chief Legal Officer at Variant, following the Binance lawsuit withdrawal in July 2024.
Others believe that a pro-crypto administration should be enough to influence the SEC to consider Solana as a non-security. Lai disagrees.
“The changing political landscape, particularly with Trump’s victory and pro-crypto stance, could create a more constructive environment for innovative blockchain platforms like Solana. However, the technical and market structure considerations will remain crucial regardless of administration changes,” he said.
In the meantime, there are several other requirements Solana must meet.
On his part, Lai added other aspects to the list of considerations.
“While Polymarket shows high odds for 2025 approval, several critical factors suggest a more complex pathway: Solana’s technological architecture presents unique challenges with its PoS mechanism; The absence of CME futures raises liquidity and risk management concerns; Historical network downtime incidents need addressing; Centralization questions relative to BTC and ETH remain unresolved; Institutional interest hasn’t matched BTC and ETH levels despite the network driving 48% of global DEX volume; [and] the temporary nature of trending themes suggests caution in using current volumes as primary indicators,” Lai told BeInCrypto.
Concerns about centralization and scalability have long been discussed regarding Solana, even outside of discussions over an ETF approval.
Since 2021, Solana has suffered over a dozen network outages varying in severity. These outages have jeopardized the network’s reputation as stable and reliable– two strongly considered characteristics during the ETF approval process.
“From a market making standpoint, network reliability is crucial as any downtime or congestion can significantly impact trading operations and order execution,” Benkitis affirmed.
However, Solana has successfully curbed the number of outages it has experienced. Once notorious for the frequency of its shutdowns, the last time Solana experienced one was in February 2024.
Meanwhile, developers designed Solana’s upcoming Firedancer validator client to improve network stability and transaction processing. Its distinct codebase offers greater resilience against widespread outages and will enhance Solana’s performance.
Yet, Solana must also mitigate centralization concerns to improve its chances of obtaining ETF approval.
Centralization Concerns
Solana’s validator node requirements, which demand significant hardware investments, can create barriers to entry. These obstacles can potentially concentrate power within the network among those capable of affording the necessary infrastructure.
In turn, the protocol’s limited number of validators compared to other networks raises concerns over centralization. For context, while Solana currently has around 2,000 active validators, Ethereum passed the one million benchmark last year—the largest number recorded by any blockchain network.
Though Solana’s hardware reliance speeds up the network, it also raises decentralization concerns. Benkitis factored this aspect into his evaluation of an ETF approval.
Its currently underdeveloped futures market infrastructure further complicates Solana’s viability as an ETF candidate.
Its filings were unprecedented because the network did not have a previously established futures market. This factor was crucial in determining an ETF approval for Bitcoin and Ethereum.
“The lack of CME futures and institutional frameworks comparable to BTC/ETH could influence [the SEC’s] evaluation,” Lai said.
He added that the proliferation of meme tokens minted on Solana could present themselves as a potential roadblock.
“Market reactions reflect Solana’s emergence as the primary driver of this cycle, with DEX volumes exceeding $100 billion and dominating major aggregators. However, I believe the temporary nature of trending themes suggests continued volatility. While technological advancement and growing institutional adoption may provide stronger foundations, we need to maintain perspective on the cyclical nature of crypto trends,” Lai said.
This more recent development in Solana’s attraction also brings its set of downsides.
Meme Coin Influence and Regulatory Concerns
The expanding meme coin market on Solana partially explains its popularity. Platforms like Pump.fun allow anyone to launch their tokens, and this design has even led to celebrities launching their tokens on the platform.
More recently, political figures like Donald Trump and Argentine president Javier Milei have also launched meme tokens on Solana platforms. Yet, these activities have proven to be high-risk. In many cases, meme coin investments have caused smaller retailers millions of dollars in losses.
Benkitis said that the SEC might frown upon the speculative nature of these trading activities.
“While an ETF approval could unlock liquidity opportunities, the market’s heavy dependence on speculative sentiment calls for a measured and cautious approach,” he said.
With so many considerations, approving a Solana ETF in 2025 is far from guaranteed. The SEC’s eventual decision will be a defining moment for the network and the broader crypto industry.
Since plunging to its year-to-date low of $1.61 on April 7, XRP holders have taken full advantage of the dip, ramping up accumulation efforts. This buying pressure has steadily increased the asset’s value over the past week.
At press time, XRP trades at a seven-day high of $2.19 and technical indicators show that it’s positioned to extend the gains.
XRP Golden Cross Drives Bullish Momentum
On the daily chart, a golden cross has formed on XRP’s Moving Average Convergence Divergence (MACD) indicator, which is often viewed as a key signal of a shift toward long-term upside.
When a golden cross emerges like this, it signals a positive shift in investor sentiment. Traders interpret it as a cue that buying pressure outpaces selling activity, which can attract even more inflows and drive the price higher.
For XRP, this golden cross occurred on April 11, reinforcing the growing bullish sentiment surrounding the asset. This pattern confirms that the altcoin’s recent price rebound is not just a short-lived reaction but may mark the beginning of a more sustained uptrend.
Further, the token’s positive Chaikin Money Flow (CMF) supports this bullish outlook. At press time, it rests above the center line and in an uptrend at 0.07.
The CMF indicator measures how money flows into and out of an asset. A positive CMF reading, as with XRP, means buying pressure is stronger than selling pressure over a given period. It suggests capital is flowing into the token, signaling accumulation and potential price growth.
XRP Maintains Uptrend—Next Stop: $2.50 or Back to $1.99?
Since its rally began on April 7, XRP has traded above an ascending trend line. This bullish pattern emerges when an asset forms higher lows over time, creating an upward-sloping support line.
It signals sustained buying interest in XRP and suggests that momentum is building in favor of the bulls as the token’s price continues to climb.
If demand soars, XRP could extend its gains and climb to $2.29. A successful flip of this resistance into a support floor could propel XRP to $2.50.
World (formerly Worldcoin) suffered a legal blow in Kenya after the High Court ruled that its biometric data collection practices violated constitutional privacy rights.
The court’s decision marks a landmark victory for digital rights advocates in the country and beyond and comes amid growing global scrutiny of the controversial crypto and identity project.
Kenyan High Court Slams Sam Altman’s World Over Privacy Violations
In a judgment delivered on Monday, Justice Aburili Roselyne granted a judicial review application filed by Kenya’s Katiba Institute. The court ordered the Worldcoin Foundation and its agents to terminate all biometric data processing.
The court also ruled that all previously collected data from Kenyan users should be permanently deleted.
“An order of prohibition [is issued] restraining Worldcoin Foundation and its agents from further processing, collecting or dealing in Biometric data without undertaking (or using an inadequate) Data Protection Impact Assessment… or using consent obtained by inducement of a cryptocurrency — Worldcoin,” Katiba Institute reported, citing the ruling.
The judge issued a certiorari order, effectively quashing World’s decision to collect and process such data in Kenya. She cited violations of Kenya’s Data Protection Act, 2019.
A third order of mandamus compels the foundation to delete all biometric data obtained within seven days permanently. The court called out Worldcoin for breaching the law in this regard. The Data Protection Commissioner will supervise the implementation of the order.
“High Court orders Worldcoin to delete biometric data collected in Kenya within 7 days,” local media reported.
High Court orders Worldcoin to delete all biometric data of Kenyans unlawfully collected using its orb, under the supervision of the Office of the Data Protection Commissioner pic.twitter.com/A6AiSSr1HD
ICJ Kenya, committed to protecting and promoting human rights, reiterated the news in a post. It highlighted the court’s determination that constitutional rights, especially the right to privacy, must be upheld even in the digital age.
“The Court affirmed that Worldcoin commenced data collection without valid consent from the Office of the Data Protection Commissioner (ODPC) and without conducting the required DPIA, in breach of Sections 25, 26, 29, 30, and 31 of the Data Protection Act, 2019,” wrote ICJ Kenya
This break comes nearly two years after the Katiba Institute filed the case in August 2023. The organization, which promotes the implementation of Kenya’s Constitution, challenged Worldcoin’s data collection practices.
Constitutional lawyer Joshua Malidzo Nyawa, who spearheaded the prosecution, did not immediately respond to BeInCrypto’s request for comment.
Worldcoin Collecting Biometric Data From Kenyans
In hindsight, the data collection process was controversial. As it happened, Worldcoin offered Kenyans $50 worth of WLD tokens per person. In exchange, they had to volunteer to scan their irises using the Orb device, effectively signing away their biometric data.
The institute argued that this inducement compromised the legitimacy of user consent. Specifically, it failed to meet Kenya’s legal thresholds for data protection.
“The owner of Worldcoin, Sam Altman, is banned from collecting this data in his home country, the US, why do we allow him in Kenya,” parliament majority leader Kimani Ichung’wah said.
The ruling is likely to reverberate across jurisdictions where World operates. Similar concerns have already led to regulatory suspensions in Indonesia. As BeInCrypto reported, authorities halted Worldcoin’s activities over potential violations of data protection laws.
Despite this growing resistance, the project is pushing forward in the US. It recently launched in six cities, including Atlanta, Los Angeles, and San Francisco.
These legal developments had a swift impact on investor sentiment. Worldcoin’s native token (WLD) dropped nearly 10% in the past 24 hours. According to BeInCrypto price data, WLD was trading at $0.88 as of this writing.
