Welcome to the Asia-Pacific Morning Brief—an essential summary of overnight cryptocurrency developments that shape regional markets and global sentiment. Prepare your green tea and stay tuned.
The SEC has paused cryptocurrency ETF approval, and a Japanese textile manufacturer is investing $5 million in Bitcoin. Meanwhile, Trump's DeFi platform continues its aggressive Ethereum accumulation strategy.
SEC Halts Cryptocurrency Index Fund Conversion...Regulatory Uncertainty
The U.S. Securities and Exchange Commission (SEC) sent mixed signals this week regarding cryptocurrency index funds. The regulatory body approved Bitwise's $1.68 billion cryptocurrency index fund conversion to an ETF. However, the SEC immediately paused approval and is conducting further review.
Bitwise's fund holds 90% in Bitcoin and Ethereum, with the remaining assets distributed across eight altcoins. If approved, this product would become the first multi-asset cryptocurrency index ETF in the United States. Grayscale's similar digital large-cap fund received the same treatment earlier this year.
Market observers suggest the SEC is hesitant about index funds that include unapproved independent cryptocurrency ETFs. This regulatory approach could delay index fund approvals until individual altcoin ETFs are approved. The committee is reviewing multiple cryptocurrency ETF applications, including major asset managers Franklin Templeton and Fidelity.
Japanese Textile Company Adopts Bitcoin Strategy
Kitabow Corporation, a traditional textile manufacturer located in the UNESCO Geopark area of Hakusan City, has announced plans to purchase $5 million in Bitcoin. The company will periodically purchase digital assets through domestic cryptocurrency exchanges. Kitabow plans to loan a portion of its Bitcoin holdings to cryptocurrency-related companies to generate stable interest income.
The company has additionally allocated $1.3 million to cryptocurrency mining operations and infrastructure by December 2028. Management is actively exploring joint ventures with overseas partners to accelerate comprehensive cryptocurrency business development across borders. This strategic move indicates traditional Japanese manufacturers are diversifying their portfolios with digital assets to grow.
Kitabow's innovative strategy successfully combines traditional manufacturing roots with cutting-edge digital finance in Asia's rapidly changing blockchain ecosystem. This significant announcement highlights the increasing corporate adoption of Bitcoin financial strategies across the region.
Trump DeFi Platform Accelerates Ethereum Accumulation Strategy
Former President Trump's family DeFi platform World Liberty Financial (WLFI) is once again accelerating Ethereum purchases. According to on-chain data analyst AI, WLFI-related addresses purchased an additional 1,740 $ETH (approximately $6.5 million) in early July 23rd.
WLFI's recent Ethereum purchases are evaluated as a comprehensive concentrated investment strategy beyond simple "dollar-cost averaging". Over the past six days, three WLFI-related wallets have accumulated a total of 5,608.48 $ETH (approximately $19.46 million).
The average purchase price is approximately $3,469.66 per $ETH, representing unrealized gains of about $1.457 million based on the current Ethereum price (around $3,700). Even after these purchases, WLFI maintains over 65% of its total assets in Ethereum.
Contributed by Paul Kim and Shigeki Mori.
