KEYTAKEAWAYS
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SEC delays BlackRock ETF decision, seeks public feedback on in-kind redemptions amid custody and compliance concerns following past crypto collapses like FTX.
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Sky reports $5M Q1 loss, driven by higher interest payouts to promote new stablecoin USDS, aiming to replace DAI in its ecosystem.
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XRP futures OI jumps 41.6% alongside price increase, fueled by regulatory optimism and leverage, signaling bullish momentum but potential for sharp reversals.
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SEC SEEKS PUBLIC INPUT ON BLACKROCK’S BITCOIN ETF REDEMPTION MODEL
The U.S. Securities and Exchange Commission (SEC) on Tuesday delayed its decision on whether to allow BlackRock’s spot Bitcoin ETF to support in-kind redemptions (actual Bitcoin instead of cash). The SEC also started a public comment period on the proposal.
Additionally, the SEC postponed reviews of Grayscale’s Litecoin Trust, Solana Trust, and 21Shares’ Dogecoin ETF, and is also seeking public feedback.
Analysis:
The SEC’s delay is likely due to concerns around custody and compliance. In-kind redemption requires secure cold storage and strong anti-money laundering (AML) procedures.
The regulator wants to avoid risks like those seen in the FTX collapse of 2022, which led to $8 billion in losses.
SKY POSTS $5 MILLION LOSS IN Q1
Sky (formerly MakerDAO) reported a $5 million loss in Q1 2025, mainly because of a sharp increase in interest paid to token holders. This marks a big shift from the previous quarter, when Sky earned $31 million in profit.
Interest expenses rose by 102% after Sky increased incentives to promote its new stablecoin, Sky Dollar (USDS), aiming to replace the widely used DAI.
Analysis:
This isn’t just a business loss—it’s a strategic move. Sky is choosing to “burn money” now to grow its new ecosystem. If USDS gains traction, it could repeat DAI’s past success.
XRP FUTURES OPEN INTEREST SURGES 41.6% IN A WEEK
Over the past week, XRP futures open interest jumped by $1 billion, rising from $2.42B to $3.42B, a 41.6% increase. This comes as XRP’s price climbed from $2.14 to $2.48, showing rising market activity and stronger bullish sentiment.
Analysis:
The rise in open interest and price is likely driven by regulatory settlement hopes and political support for XRP. But the high use of leverage suggests a speculative bubble. Bulls are in control for now, but a market reversal could be near.
