The UK Financial Conduct Authority is proposing a calibrated path for authorized investment funds to hold limited exposure to crypto, opening the door for some UCITS and select non-UCITS funds to allocate up to 10% of their assets to crypto exchange-traded notes (ETNs). The move aims to close a regulatory gap between retail investors and funds while preserving protections and market integrity.

The proposal appears in the FCA’s quarterly consultation paper, part of a broader effort to align retail access to crypto with international practice. It follows the regulator’s August decision to lift the ban on retail trading of crypto ETNs, signaling a step toward a more consistent, market-conforming framework for crypto products offered to households and ordinary investors.

The FCA has framed the plan as a balance between “contemporary” investor demands and the need to protect consumers and keep markets functioning well. The 10% cap is described as a conservative restriction intended to enable fund managers to market crypto exposure to retail audiences without compromising risk controls or investor protection.

As background, the UK’s regulatory stance on crypto has intensified in recent months, with parallel workstreams on stablecoins, custody, and staking under active consideration by the Bank of England and FCA. The regulator notes that while some funds can gain exposure to crypto, it does not regard significant crypto holdings as appropriate for retail-focused vehicles given their speculative characteristics. Retail funds would need to demonstrate that crypto allocations are consistent with their disclosed investment objectives and risk profiles.

According to the FCA, unregulated and qualified investor schemes may invest in more speculative assets and would not face the 10% cap, but such funds cannot be marketed or sold to retail investors. The regulator also flags potential restrictions for funds primarily focused on holding long-term assets—such as property—if retail investors are the target, arguing crypto may not align with their objectives.

The consultation runs for five weeks, closing on July 13. In addition to the crypto-ETN proposal, the FCA is seeking feedback on whether to bar funds focused on long-term asset holdings from crypto exposure, and how to ensure consistency with fund-level risk disclosures and objectives.

For context, the UK’s approach sits within a broader policy environment that includes ongoing work on stablecoins, crypto custody frameworks, and staking rules. The Bank of England has signaled that it is reconsidering parts of its proposed stablecoin regime in light of industry feedback, and authorities are pursuing a cohesive set of rules across licensing, oversight, and consumer protections. The policy dialogue also intersects with international dynamics, including ongoing discussions around MiCA alignment and cross-border regulatory differences.

Key background links include the FCA’s consultation paper and related discussions on tokenized funds and crypto guidance, as the UK seeks to harmonize its framework with evolving global standards while preserving prudent oversight. The overarching aim is to modernize access to crypto products for retail investors without compromising market integrity or investor protection.

Related coverage indicates policymakers are weighing how to balance innovation with safeguards in a shifting crypto regulatory landscape.

Key takeaways

• The FCA proposes a 10% cap on crypto exposure for retail-focused UCITS funds and certain non-UCITS funds via crypto ETNs, aiming to preserve investor protection while enabling market access.
• Retail funds would need to ensure crypto holdings align with disclosed objectives and risk profiles; significant exposure to crypto remains constrained due to the asset’s speculative nature.
• Unregulated and qualified investor schemes may invest more aggressively in crypto or other speculative assets, but such products cannot be marketed to retail investors.
• The proposal contends with potential exclusions for funds focused on long-term assets (e.g., property) if crypto exposure would undermine their investment objectives.
• The consultation runs for five weeks, with a deadline of July 13, as part of a broader UK push to modernize crypto rules, including stablecoins, custody, and staking frameworks.

Scope, rationale, and safeguards for retail funds

At the core of the FCA’s proposal is a recognition that authorized funds, including UCITS and certain non-UCITS products aimed at retail investors, should be able to offer crypto exposure in a controlled manner. The 10% cap is described as a conservative threshold designed to balance two objectives: giving retail investors access to diversified crypto products and maintaining robust safeguards against volatile markets. The regulator emphasizes that this exposure must be consistent with each fund’s stated investment objectives and risk profile, ensuring that crypto allocations do not undermine the fund’s core mandate.

The FCA also differentiates between retail- and non-retail audiences. While retail-focused funds would be subject to the 10% limit, unregulated and qualified investor schemes could pursue more speculative holdings, albeit with the caveat that such funds may not be marketed to retail investors. This distinction aligns with common market practice where sophisticated investors can access higher-risk products under more stringent disclosure and risk management provisions.

Additionally, the FCA indicates that certain categories of funds—particularly those centered on long-term assets like real estate—may face restrictions on crypto holdings to preserve alignment with their investment objectives. The regulator’s framing suggests a careful calibration of product design and marketing materials to ensure consistency with risk disclosures and fund mandates.

Regulatory context and policy implications

The consultation occurs within a broader UK regulatory trajectory that seeks to clarify crypto product access while reinforcing protections. The FCA’s move to permit limited exposure to crypto ETNs comes after the August lifting of the retail ban on crypto ETNs, marking a shift toward greater compatibility with international markets and investor expectations. The proposal is part of ongoing policy work around stablecoins, crypto custody, and staking, areas where the Bank of England and FCA are coordinating oversight and licensing considerations.

Industry participants should note the evolving cross-border dimension. UK rules aim to harmonize with global standards and maintain domestic competitiveness in asset management and distribution. As the UK weighs these adjustments, practitioners should monitor how forthcoming guidance may intersect with broader regional regimes, including potential alignment or divergence from EU-level frameworks such as MiCA. The regulatory stance on product design, disclosures, and issuer obligations will influence both fund structuring and marketing strategies for crypto-linked funds.

In this context, the FCA’s consultation underscores a cautious approach to retail crypto access—encouraging innovation while preserving the integrity of markets and the protections afforded to everyday investors. Compliance programs, risk disclosures, and KYC/AML controls will be central to fund onboarding, product development, and ongoing supervision as the policy debate advances.

Industry impact and compliance considerations

For asset managers, this proposal would require careful alignment between a fund’s stated objectives and any crypto exposure, with robust due diligence and risk reporting to support marketing materials and investor disclosures. Funds considering crypto ETN allocations would need to evaluate suitability assessments, liquidity considerations, and custody arrangements to satisfy regulatory expectations and maintain sound governance practices.

Marketing materials and distribution strategies will be subject to scrutiny, particularly for retail products that advertise crypto exposures. Firms will need clear risk disclosures and consistent messaging about the 10% cap, the speculative character of cryptoassets, and how such holdings fit within a fund’s risk framework. The five-week consultation period provides an opportunity for industry participants to shape the specifics of the regime before any final rulemaking.

From a broader compliance and licensing perspective, the proposal reinforces the UK’s intent to build a robust, transparent market structure for crypto products. Banks, custodians, and fintechs involved in crypto product issuance, safekeeping, or distribution should prepare for potential changes in product approval processes, cross-border marketing permissions, and supervisory expectations around suitability, disclosure, and operational risk.

The regulatory clock is moving in a direction that could influence how funds are structured, marketed, and regulated as crypto markets mature. Institutions should continue to monitor the FCA’s consultation outcomes, potential the introduction of accompanying guidance, and any cross-cutting policy adjustments that could affect licensing, stablecoins, and crypto custody regimes.

Closing perspective: As UK authorities balance investor access with rigorous safeguards, the five-week consultation will reveal how far the market can extend retail participation in crypto through regulated funds. The outcome will shape product design, risk management, and compliance playbooks for asset managers and their institutional counterparts in the months ahead.

Key Highlights

• U.S. spot Bitcoin ETFs registered $1.72 billion in net redemptions during the week concluding June 5
• This marks the fourth consecutive week of outflows, representing over a month of sustained billion-dollar withdrawals
• BlackRock’s IBIT dominated the exodus with $1.34 billion in redemptions, with Fidelity and Grayscale following behind
• Market observer Ted Pillows anticipates a potential decline to $50,000 before an eventual surge past $100,000
• Bitcoin price recovered toward $64,000 following President Trump’s announcement of an Israel-Iran ceasefire agreement

U.S. spot Bitcoin exchange-traded funds have extended their redemption pattern into a fourth consecutive week, recording $1.72 billion in net withdrawals for the period ending June 5, based on figures from SoSoValue.

This withdrawal pattern began during the week concluding May 15. Every subsequent week has witnessed more than $1 billion departing these investment vehicles.

The most intense selling pressure materialized during June’s opening three trading sessions. Funds experienced losses of $483.8 million, $519.1 million, and $396.6 million across those consecutive days. Thursday provided a momentary respite with $3.2 million in inflows before Friday delivered another $325.7 million in withdrawals.

BlackRock’s iShares Bitcoin Trust ETF (IBIT) dominated the redemption activity, representing $1.34 billion of the week’s aggregate outflows. Fidelity’s Wise Origin Bitcoin Fund (FBTC) experienced $201.9 million in withdrawals, while Grayscale’s Bitcoin Trust ETF (GBTC) recorded $144.3 million in exits.

Matthew Pinnock, Chief Operating Officer at Altura DeFi, characterized the selling wave as a “macro-driven repricing of risk” unrelated to Bitcoin-specific fundamentals. He explained that IBIT experiences the highest outflows due to its substantial size and liquidity profile, noting that institutional investors gravitate toward the most liquid instruments when reducing risk exposure.

“The timing of these redemptions aligns closely with stronger-than-expected US employment data, rising Treasury yields, and a sharp reduction in rate cut expectations,” Pinnock stated. He emphasized that Bitcoin’s recent price weakness stems from shifting rate expectations and evolving institutional risk appetite.

Ethereum ETFs Mirror Withdrawal Trend

Spot Ethereum ETFs exhibited comparable patterns, documenting $173.05 million in redemptions for the week ending June 5, continuing their own four-week outflow sequence. Ether ETFs have collectively shed approximately $885.6 million throughout this four-week period.

However, not every cryptocurrency ETF product experienced redemptions. HYPE ETFs attracted $16.65 million during the week. XRP ETFs recorded modest inflows of $2.62 million. Solana ETFs registered $6.52 million in outflows.

Cryptocurrency analyst Ted (@TedPillows) observed on X that Bitcoin has formed two lower highs in this market cycle, contrasted with three in the preceding cycle. He cautioned that a third lower high might emerge in Q3, potentially followed by a correction to $50,000. His projection then anticipates a rally exceeding $100,000 following that trough.

Bitcoin Price Rallies Approaching $64K

On June 8, Bitcoin advanced back toward $64,000 after President Trump announced via Truth Social that Israel and Iran were pursuing an “immediate ceasefire.” BTC touched $63,715, representing a 3.25% daily gain.

The cryptocurrency had declined earlier following Iran’s retaliatory military strikes targeting Israeli military installations, which came after Israeli operations against Hezbollah-affiliated sites in Beirut. Iranian authorities subsequently announced their joint military command had suspended offensive operations.

Trump clarified that a blockade would persist until a comprehensive agreement is finalized, though he indicated diplomatic negotiations were already progressing.

Bitcoin traded at $63,715 according to the most recent available information, rebounding from geopolitical-induced declines earlier in the trading session.

Sui has opened public testing for a new privacy system that hides token balances and transfer amounts while preserving access for auditors and compliance teams, introducing a model that differs sharply from traditional privacy-focused cryptocurrencies.

According to an announcement published on June 8, confidential transfers are now available in public beta on Sui’s Devnet, with a Testnet release planned later this year. The feature encrypts transaction values and wallet balances onchain but leaves sender addresses, receiver addresses, token types, and transaction timestamps visible.

The rollout arrives as blockchain developers continue searching for ways to offer transaction privacy without removing the transparency requirements relied upon by regulators, exchanges, and institutional users.

Sui keeps transaction data private while preserving oversight

Under Sui’s design, token issuers can activate a confidential mode that conceals balances and transfer amounts from public view. The network uses Twisted ElGamal cryptography on Ristretto255 together with zero-knowledge proofs to verify transactions without exposing the underlying values.

Mysten Labs, the company behind Sui, said the system allows the network to confirm that transfers remain valid while preventing overdrafts and unauthorized token creation. The company has also released the code as open source on GitHub, although it noted that the implementation remains unaudited and should be treated as a work in progress.

Additional controls distinguish the feature from privacy coins that attempt to hide every aspect of a transaction. Authorized entities can be granted auditor keys that allow them to decrypt balances when required, while issuers retain the ability to freeze or seize assets under specific circumstances.

Users are also able to prove ownership of balances or verify transaction amounts without revealing private keys, according to Mysten Labs.

Institutions test the model as Sui seeks adoption

The structure contrasts with Monero, which conceals transaction senders, recipients, and amounts through a combination of ring signatures, stealth addresses, and Ring Confidential Transactions. Because outside parties cannot access that information, Monero has faced repeated exchange delistings linked to compliance concerns.

Rather than removing visibility entirely, Sui’s approach is being tested by firms that need privacy around financial activity while remaining capable of meeting regulatory obligations. Bridge is evaluating the technology for stablecoin and payment use cases, while TRM Labs and Merkle Science are examining how transaction monitoring, investigations, and risk assessment tools function within the encrypted framework.

Payment companies, treasury departments, and stablecoin issuers often avoid exposing transaction sizes and wallet balances because those details can reveal commercial relationships, hedging activity, or operational strategies. Sui’s confidential transfers are designed to address those concerns without eliminating audit capabilities.

The launch comes during a difficult period for the network. Sui experienced three mainnet outages in late May, raising questions about operational reliability as the blockchain pursues more institutional users.

SUI rally meets resistance below key moving averages

Market participants responded positively to the privacy rollout. SUI (SUI) rose nearly 5% on June 9 following the announcement and traded around $0.76 at the time of writing.

Despite the rebound, the technical picture remains mixed. On the daily chart, SUI continues to trade below its 20-day and 50-day moving averages near $0.91 and $0.98, indicating that sellers still control the broader trend after the token’s decline from the May peak near $1.40.

The bearish moving-average structure remains intact, while the MACD indicator continues to sit below the zero line despite showing signs that downside momentum is beginning to ease.

Shorter-term charts show a more constructive setup. On the 4-hour timeframe, SUI has rebounded from support around $0.68-$0.70 and is attempting to break above the upper boundary of a descending channel that has guided price action lower for nearly a month. A bullish MACD crossover has emerged on the same timeframe, suggesting buying pressure has strengthened since last week’s market-wide selloff.

The area around $0.80 remains the first major test for bulls because it aligns with both the channel resistance and the Supertrend indicator. A successful breakout could expose the 20-day moving average near $0.91, followed by the 50-day moving average and psychological resistance around $1.00.

On the downside, failure to clear overhead resistance could leave SUI trapped within the broader bearish structure. In that scenario, traders may look toward support near $0.70, with the recent swing low around $0.68 serving as the next key level to watch.

More than 200 crypto companies and industry organizations have urged the U.S. Senate to bring the CLARITY Act to a floor vote as concerns over the bill’s shrinking legislative window have intensified.

According to crypto advocacy group Stand With Crypto, a coalition of industry participants sent a letter to Senate Majority Leader John Thune and Senate Democratic Leader Chuck Schumer on June 9, calling on lawmakers to move the crypto market structure bill forward without further delay.

The letter stated that the Senate Banking Committee’s approval of the legislation followed months of bipartisan negotiations and argued that senators should now have the opportunity to debate and advance the proposal. Signatories included Stand With Crypto, the Blockchain Association, the Crypto Council for Innovation, and The Digital Chamber.

Representatives from the industry coalition said the legislation would establish regulatory rules for digital assets, define the responsibilities of the Securities and Exchange Commission and Commodity Futures Trading Commission, and help keep crypto businesses, investment, and jobs in the United States.

In the letter, the groups argued that digital asset markets are becoming an increasingly important part of financial infrastructure and warned that continued delays could push innovation toward overseas jurisdictions operating under different regulatory frameworks.

Industry pressure grows as Senate clock ticks

Recent assessments from analysts and market participants have increasingly focused on timing rather than support for the legislation itself.

Last week, Galaxy Digital head of research Alex Thorn lowered the firm’s estimate of the CLARITY Act becoming law in 2026 to 60%, down from 75% in May. Thorn said the bill needs to advance through the Senate before lawmakers leave for their August recess, adding that the legislative opportunity becomes much more limited once election-related activity begins to dominate the congressional calendar.

Galaxy Digital said the measure still requires Senate floor debate, consideration of amendments, and reconciliation between versions approved by different Senate committees. Thorn also noted that Senate leadership would likely need to dedicate floor time in July for those procedural steps to be completed before the recess.

A separate assessment from JPMorgan, led by managing director Nikolaos Panigirtzoglou, also warned that the path to passage is narrowing. The bank cited the approaching midterm elections and unresolved disagreements over stablecoin yield provisions as key obstacles facing the legislation.

While support for the bill remains visible across the crypto sector, policy disputes have not been fully resolved. Banking groups have pushed for restrictions on stablecoin yield offerings, while crypto industry advocates have sought stronger protections for developers building decentralized platforms.

Unresolved provisions remain under discussion

Beyond the stablecoin debate, ethics requirements and illicit finance provisions continue to be discussed among lawmakers.

Galaxy Digital said those issues could affect support among senators who remain cautious about crypto legislation. The firm added that it has not yet seen evidence that negotiations have reached a final resolution or that the remaining disagreements have been settled.

Supporters of the bill continue to press for action. Senator Cynthia Lummis, who has backed the legislation throughout the process, told CNBC that lawmakers are working through ethics and illicit finance concerns ahead of a potential Senate vote.

Political support has also come from Treasury Secretary Scott Bessent, White House crypto adviser Patrick Witt, and Senate Banking Committee Chairman Tim Scott, all of whom have publicly encouraged Congress to advance the legislation.

Before reaching the Senate floor, the bill still requires Senate negotiators to align provisions approved by the Banking and Agriculture Committees. Lawmakers must also secure at least 60 votes to avoid a prolonged debate process and keep the legislation moving.

With no Senate floor vote currently scheduled, the industry’s latest appeal adds pressure on congressional leaders as advocates seek to move the CLARITY Act through its remaining legislative hurdles before the election calendar further constrains available time.

Circle has launched cirBTC on Ethereum, introducing a wrapped Bitcoin token backed 1:1 by BTC and supported by onchain reserve verification through Chainlink Proof of Reserve.

According to Circle, cirBTC is now live on Ethereum and is designed to bring Bitcoin-backed collateral into institutional decentralized finance markets. 

In its June 8 announcement, the company said each cirBTC token is backed by an equivalent amount of native Bitcoin held in custody by a regulated Circle entity, with the assets kept separate from Circle’s corporate holdings.

Built for institutions active in lending, market making, treasury management, over-the-counter trading, and settlement, cirBTC allows firms to use Bitcoin as collateral within Ethereum-based smart contract ecosystems without selling the underlying BTC, according to Circle. The company said native Bitcoin can remain in custody while cirBTC moves through onchain financial applications.

Circle added that reserve transparency is provided through Chainlink Proof of Reserve, allowing counterparties to verify backing through multiple wallet addresses visible on the Bitcoin blockchain. According to the company, the system is intended to give trading firms, protocols, and risk teams continuous visibility into reserve holdings.

Circle enters a competitive wrapped Bitcoin market

Following the Ethereum launch, Circle has formally entered a market already populated by several wrapped Bitcoin providers.

When the company first announced cirBTC in April, Circle described the token as a secure and neutral wrapped Bitcoin product for institutional participants. At that time, it said the asset would launch on Ethereum and later become available through Arc, Circle’s layer-1 blockchain infrastructure.

Existing wrapped Bitcoin products already serve a large portion of the market. BitGo-issued Wrapped Bitcoin remains the largest product in the category with an approximately $8 billion market capitalization, while Coinbase Wrapped Bitcoin reached about $5.9 billion after its September 2024 launch, according to Circle’s earlier announcement. Other exchange-backed offerings include Kraken Wrapped BTC, Binance Wrapped BTC, Bitget Wrapped BTC, and OKX Wrapped BTC.

Circle said its business model differs from some competitors because it does not operate a centralized exchange, decentralized exchange, or lending protocol. The company stated that this structure allows institutions to use cirBTC across different trading venues, client relationships, and liquidity networks without concerns about competing with the issuer.

Integration with Circle Mint and Arc

Alongside the launch, Circle said cirBTC can be minted and redeemed through Circle Mint, its institutional platform for managing digital asset liquidity, adding that combining cirBTC with USDC creates a framework where Bitcoin collateral and dollar-denominated liquidity can operate within the same workflow.

Ethereum was selected as the first network because many institutional DeFi, tokenization, and liquidity activities already take place there, according to Circle. Looking ahead, the company said cirBTC is being designed to expand beyond Ethereum through Arc as part of a multichain strategy focused on interoperable financial infrastructure.

Future Arc integration will extend access to wrapped Bitcoin collateral across additional blockchain environments while maintaining the same custody and verification standards.

Key takeaways

• XRP climbed to around $1.15 on Monday as retail traders cautiously returned to the derivatives market.
• XRP futures open interest increased from $2.28 billion to $2.44 billion, signaling renewed speculative activity.

Ripple (XRP) edged higher on Monday, trading around $1.15 as risk appetite showed tentative signs of recovery across the cryptocurrency market. While broader sentiment remains fragile, derivatives data suggest retail traders are gradually returning to the market after weeks of caution.

The modest recovery comes amid a challenging macroeconomic backdrop and renewed geopolitical tensions that continue to weigh on investor confidence.

Geopolitical risks keep investors on edge

Risk-off sentiment remains the dominant market theme as digital assets struggle to sustain gains following a brief rebound over the weekend. Investor caution intensified after Israel and Iran exchanged strikes for the first time since the ceasefire agreement reached on April 8.

Despite the cautious environment, XRP derivatives activity recorded a modest increase. Open Interest (OI) in XRP perpetual futures rose to an average of $2.44 billion on Monday, up from $2.28 billion previously. The increase suggests traders are gradually re-entering the market and taking on additional exposure, even as uncertainty remains elevated.

The rise in futures positioning points to renewed speculative interest, although the increase remains relatively modest compared to previous bullish periods.

Ripple price forecast: XRP faces heavy technical resistance

Although XRP has managed to rebound toward $1.15, the broader technical picture remains bearish.

The token continues to trade below its key moving averages, including the 50-day EMA at $1.33, 100-day EMA at $1.41, and the 200-day EMA at $1.63

These levels create a significant overhead resistance zone that could limit upside momentum.

Additional bearish signals come from the SuperTrend indicator, which remains negative around $1.26, and a descending trendline whose breakout point is located near $1.52. Together, these indicators suggest that rallies may continue to encounter selling pressure.

Technical momentum indicators continue to favor the bears. The Relative Strength Index (RSI) is hovering near 32 on the daily chart, reflecting weak buying momentum despite the recent bounce. 

Meanwhile, the Moving Average Convergence Divergence (MACD) histogram remains below the zero line, reinforcing the prevailing bearish trend.

These indicators suggest that downside risks remain elevated unless XRP can reclaim key resistance levels.

While XRP has shown resilience by reclaiming the $1.15 level, the token remains trapped within a broader bearish structure. Improving derivatives activity and continued ETF inflows offer encouraging signs, but weak market sentiment and persistent geopolitical uncertainty continue to cap upside potential.

For a stronger recovery to develop, XRP will need to overcome multiple resistance barriers while broader risk appetite across the crypto market improves. Until then, traders remain focused on whether support around $1.05 and the critical $1.00 threshold can withstand further selling pressure.

Yuga Labs has rescued about $570,000 worth of NFTs after an exploit affected Floor Protocol on Sunday. The team behind Bored Ape Yacht Club said the operation removed exposed assets before another actor could drain them.

• Yuga Labs rescued about $570,000 worth of NFTs after a Floor Protocol exploit exposed vulnerable pools.
• The whitehat operation secured 29 Bored Apes and two CryptoPunks before another actor could drain them.
• Yuga Labs currently holds the rescued NFTs while coordinating with Floor Protocol developers on returns.

The rescued items included 29 Bored Apes and two CryptoPunks, among other NFTs. Yuga Labs said it now holds the assets while working on a return process.

Yuga Labs moves exposed NFTs from pools

According to Yuga Labs vice president of Blockchain 0xQuit, the team found the exploit after reviewing Floor Protocol activity. Floor Protocol had stopped operations last year, but some NFT pools still contained assets. The platform previously allowed users to deposit NFTs into pools and receive fungible μTokens. Users could then trade those tokens or burn them to redeem the underlying NFT. The Sunday exploit created a path to drain those pools.

0xQuit said the team found another exploit route after deeper review. “After digging deeper, we found another related exploit path,” 0xQuit wrote on X. The post said the route could affect more vulnerable Flooring pools. Yuga Labs then moved exposed NFTs from those pools before another exploit attempt. The team described the action as a whitehat operation.

The rescued assets included high-value Ethereum NFT collections. Yuga Labs said it acted to protect Bored Apes and other exposed items. The operation also covered two CryptoPunks, according to the provided report. The team now maintains control of the NFTs. It plans to coordinate with Floor Protocol developers on the next steps.

Floor Protocol exploit involved μToken balances

Floor Protocol used a liquidity model tied to deposited NFTs and μTokens. The system allowed users to gain liquidity without directly selling their NFTs. However, the exploit reportedly targeted the relationship between wrapped Ethereum and μToken balances. According to 0xQuit, attackers could turn a small amount of wETH into a nearly unlimited μToken balance. That balance could then help drain NFTs from affected pools.

Yuga Labs said its goal involved removing exposed assets before another party used the same method. 0xQuit wrote that the team wanted to extract vulnerable NFTs first. The post said another malicious actor could have used the same paths. The team therefore moved the assets to stop further losses. Yuga Labs did not say the owners had already received the NFTs back.

Yuga Labs CEO Michael Figge also commented on the response. “Thanks to this move, we were able to save dozens of assets,” Figge wrote on X. He said the action prevented market impact and protected Flooring protocol tokens. The company’s statements framed the move as a recovery effort. Floor Protocol developers still need to help settle ownership and return issues.

NFT market remains below 2022 levels

The rescue took place after a long decline in NFT trading activity. Bored Apes traded above $300,000 during the market peak in early 2022. At that time, Ethereum NFT daily sales often topped $100 million, according to CryptoSlam data. 

In 2026, the highest daily sales volume reached $32.3 million. The figures show a much smaller market than the 2022 peak. The Floor Protocol incident involved assets from a platform that no longer operates actively. Even so, remaining pools still carried exposure to smart contract risks. Yuga Labs said it acted after finding the exploit route on Sunday morning. The team continues to hold the rescued NFTs while seeking a return plan. The next step depends on coordination with Floor Protocol developers.

Bitcoin’s fall toward $60,000 has not caused a broad retreat among large investors, according to Coinbase Institutional strategy head John D’Agostino. 

He said family offices, governments, and sovereign wealth funds continue treating lower prices as an entry point.

According to crypto.news market data, Bitcoin traded near $63,200 on June 9 after falling roughly 50% from its October 2025 record above $126,000. The sharp decline has weakened market sentiment, but D’Agostino said institutional demand has remained more stable than the price action suggests.

Coinbase sees institutional Bitcoin demand holding firm

“They loved it at $125,000, they liked it at $100,000, and they love it even more at $65,000,” D’Agostino said during a CNBC interview. He described the buyers as long-term allocators that completed extensive reviews before entering the asset class.

Such investors often build positions over longer periods instead of reacting to each daily move. D’Agostino said the latest decline has allowed some institutions to acquire Bitcoin at levels they had already considered attractive during the earlier rally.

In addition, D’Agostino pointed to about $100 billion held through spot Bitcoin exchange-traded funds. He said retail interest linked to those products had declined by about 15%, even though Bitcoin had lost close to half its peak value.

Bernstein analysts also described the downturn as a quieter market cycle rather than a collapse in Bitcoin’s store-of-value case. As previously reported by crypto.news, spot Bitcoin ETFs recorded $2.6 billion in net outflows during 2026, while corporate treasury purchases helped keep combined institutional demand positive.

Separately, as previously reported, spot Bitcoin ETFs had recorded 13 consecutive outflow days by June 5, the longest streak since their launch. Withdrawals were uneven across funds and did not amount to a full institutional exit. Bitcoin later recovered above $63,000, but remained more than 10% lower over seven days as of June 9.

Strategy purchase counters forced-selling concerns

Strategy added 1,550 Bitcoin for $101.3 million between June 1 and June 7, as previously reported. The company paid an average of $65,332 per coin and raised its total holdings to 845,256 Bitcoin.

The purchase followed Strategy’s sale of 32 Bitcoin in late May. The company also increased its dollar reserve to $1 billion. Its filing showed an average acquisition cost of $75,680 across its total Bitcoin position.

D’Agostino said he was unaware of any major institutional holder that was “horrifically overlevered” or nearing liquidation. He added that larger companies can often raise new capital to support their positions, although continued access to funding depends on market conditions.

The comments do not remove the risks facing Bitcoin. ETF outflows, weaker retail activity, and further price declines could still test institutional demand. 

However, current purchases and retained ETF exposure show that large investors have not responded to the downturn with widespread selling.