That testing has implications beyond speculative trading. As stablecoins move further into mainstream finance, networks will need to handle everything from multi-million-dollar transfers to everyday consumer payments.

“It needs to be cost-effective to send $100 million in stablecoins,” Macellari said. “But it also needs to be cost-effective to send $3.”

The fund’s active approach also reflects T. Rowe Price’s broader investment philosophy. Unlike many ETF issuers that simply track market-cap-weighted indexes, the firm believes crypto requires active security selection.

“We think good judgment and good decision making and active management probably matters more in crypto than any other asset class,” Macellari said.

Rather than simply buying the largest cryptocurrencies, the team evaluates assets using three layers of analysis: blockchain technology and token economics, ecosystem growth and adoption, and market momentum.

“You can be right on the fundamentals,” she said. “But if crypto Twitter doesn’t see it or doesn’t agree with you, you kind of stand in their way at your peril.”

Building beyond one ETF

Macellari says TKNZ was designed as a “grow-with-me” product that can expand as the regulatory landscape evolves. The ETF currently invests in between five and 15 cryptocurrencies, but its eligible universe is expected to grow as additional assets meet the Securities and Exchange Commission (SEC) generic listing standards.

Bitcoin holders could lose real BTC if they try to sell coins created by a potential BIP-110 chain split without first separating their balances.

BIP-110 fork could put real Bitcoin at risk

Bitcoin developer Kevin Loaec warned holders against moving coins following a possible BIP-110 chain split, citing the risk of replay attacks.

A split would create two transaction histories with the same balances at the point of separation. Anyone holding 10 BTC before the fork, for example, would initially control 10 coins on each resulting chain.

This second balance may appear to offer free money if a buyer offers to purchase the BIP-110 coins. However, both networks could initially recognize the same signed transaction.

A buyer could copy the transaction used to transfer the forked coins and broadcast it on the main Bitcoin network. If accepted, the seller would transfer the same amount of real BTC to the buyer’s address.

The attack would not give the buyer access to the holder’s entire wallet. Only the inputs included in the signed transaction would move, while transaction fees could be charged on both chains.

Loaec said large holders may be targeted first because a successful replay involving their wallets would produce a larger return. Holders who do not know how to separate the balances can avoid that risk by leaving their coins unmoved, as there would be no signed transaction to replay.

Why Bitcoin could split at block 961,632

BIP-110, formally called the Reduced Data Temporary Softfork, seeks to restrict images, text and other non-payment data stored through Bitcoin transactions for about one year.

Miners can activate the proposal early by signaling support in 1,109 of a 2,016-block difficulty period, equal to 55% of blocks. That threshold has not been reached.

The proposal also contains a mandatory signaling mechanism. From block 961,632 through block 963,647, nodes enforcing BIP-110 will reject any block that does not signal support through bit 4. Lock-in would occur no later than block 963,648, with the new data restrictions becoming active at block 965,664.

Most miners are not signaling for the proposal. The BIP-110 tracker showed support near 2.6% on Friday, making it possible that enforcing nodes reject the chain supported by most Bitcoin mining power.

A second chain would emerge only if miners continue extending the BIP-110 branch. Without enough mining power, that branch could produce blocks slowly or stop advancing entirely. The split is therefore possible, but not guaranteed.

Replay protection remains absent during the split

BIP-110 does not automatically make transactions valid on one branch and invalid on the other. Its restrictions on transaction data are not scheduled to activate until block 965,664, expected around the beginning of September.

Until the chains produce coins unique to their respective histories, ordinary transactions may remain valid on both. Users would need to “split” their coins by obtaining and spending outputs that exist on only one branch before transacting safely.

Wallet providers or exchanges could eventually create tools to handle that process. However, users who attempt to sell forked coins immediately may have no clear way to confirm that the transaction cannot be replayed.

US holders could also face tax and record-keeping questions if the minority-chain coins acquire a market value. The immediate concern, however, is technical: spending the new asset could unintentionally transfer an equivalent amount of BTC.

BIP-110 opposition grows before signaling window

crypto.news previously reported that Blockstream co-founder Adam Back and Strategy founder Michael Saylor opposed BIP-110, citing censorship and chain-split concerns.

Saylor described the proposal as a consensus change arising from a dispute over spam and warned that it would establish a dangerous precedent. Bitcoin developer Luke Dashjr has continued supporting BIP-110, arguing that non-payment data increases storage costs and moves Bitcoin away from its monetary purpose.

The mandatory signaling window is expected to begin this weekend, although the timing could shift because Bitcoin blocks do not arrive at exact ten-minute intervals. Holders who cannot verify that their coins have been separated face the lowest replay risk by waiting until wallets, exchanges, and miners clarify which chain they support.

Between drought, heat, and wildfire, much of the world is summering in record-breaking territory. The U.K., its iconic green landscape now parched to desert brown, is suffering one of its worst droughts since record-keeping began. Eight time zones away, Spokane, Washington, endures similarly outlandish temperatures as it continues to battle the most destructive wildfire the city and state has ever seen. With no relief in sight, there is, according to the city’s mayor, Lisa Brown, a years-long recovery already baked in. British Columbia, which has suffered several of the worst fire seasons in its history over the past decade, is bracing itself for the worst one yet. In Utah, fire officials are saying the same thing. In Russia this month, temperatures broke 90°F. at two different weather stations at the Arctic Circle, nearly 3,000 miles north of Miami, where such temperatures are the norm for this time of year.

U.S. spot Bitcoin ETFs attracted $853.5 million during five consecutive inflow sessions as August demand reversed the previous week’s withdrawals.

Bitcoin ETF inflows reverse previous week’s withdrawals

U.S. spot Bitcoin ETFs opened August with $170.1 million in net inflows on Aug. 3, followed by $211.5 million on Aug. 4, according to SoSoValue.

Inflows increased to $244.4 million on Aug. 5, the strongest session of the week. The funds subsequently added approximately $128.8 million on Aug. 6 and $98.85 million on Aug. 7.

The five daily results produced approximately $853.5 million in combined net inflows, depending on rounding. The performance represented a roughly $915 million swing from the previous week, when the products recorded $61.5 million in net outflows.

The streak also followed a volatile end to July. crypto.news previously reported that investors withdrew approximately $265 million from the funds on July 31. BlackRock’s IBIT lost $123 million that day, while Fidelity’s FBTC recorded $54.8 million in withdrawals.

BlackRock accounts for most Bitcoin ETF demand

BlackRock remained the largest source of new demand during the August streak. IBIT attracted an estimated $693 million over the five sessions, accounting for roughly 81% of the category’s total inflows.

The fund added $86.71 million on Aug. 7 alone. Fidelity’s FBTC followed with $40.95 million, while Bitwise’s BITB and ARK 21Shares’ ARKB drew $2.11 million and $1.94 million, respectively.

Those allocations offset $19.37 million in withdrawals from Invesco and Galaxy’s BTCO, $10.55 million from VanEck’s HODL and $2.94 million from Hashdex’s DEFI.

Total spot Bitcoin ETF net assets reached $79.50 billion by the end of Aug. 7, equal to approximately 6.10% of Bitcoin’s market capitalization. Cumulative net inflows since launch stood at $52.18 billion, while the products generated $1.57 billion in daily trading value.

August’s $853.5 million inflow total is already nearly five times the approximately $172.4 million attracted during all of July. It is also about 395% higher than July’s full-month result after only five trading sessions.

Ethereum ETFs add $244.9 million during the week

U.S. spot Ethereum ETFs also recorded a strong week, attracting approximately $244.9 million from Aug. 3 through Aug. 7.

The products began with an $11.42 million outflow before adding $53.75 million on Aug. 4, and $60.86 million on Aug. 5. Daily inflows then increased to $92.15 million on Aug. 6 before easing to $49.60 million on Aug. 7.

Crypto.news reported that the Aug. 6 inflow coincided with Ether holding above $1,900 and approaching the $2,000 psychological level.

BlackRock’s ETHA drove much of the demand, collecting $50.34 million on Aug. 5, $81.14 million on Aug. 6 and $38.15 million on Aug. 7. Total Ethereum ETF net assets reached approximately $10.74 billion, representing 4.65% of Ether’s market capitalization.

Bitcoin and Ethereum ETFs therefore attracted nearly $1.10 billion combined during the week.

Other crypto ETF flows remain limited

Smaller crypto ETF categories did not experience comparable demand. HYPE products recorded modest positive flows, including roughly $1 million on Aug. 5 and $2.84 million on Aug. 6.

XRP funds finished slightly negative after a $3.58 million withdrawal on Aug. 5 offset the $1.15 million attracted on Aug. 3. Solana ETFs were broadly flat, with a $1 million inflow on Aug. 4 largely canceled by an $859,500 withdrawal on Aug. 6.

The differences show that regulated crypto investment demand remained concentrated in Bitcoin and Ethereum during the opening week of August.

Bitcoin itself remained below $65,000 despite the inflows. crypto.news previously reported that ETF demand supported the $64,000 area, but had not produced a confirmed breakout.