JPMorgan says tokenized funds make up just 5% of the stablecoin market despite offering higher yield.

JPMorgan published a report on May 21 finding tokenized funds account for just 5% of total stablecoin market supply despite offering higher yield. The bank said stablecoins remain the default cash instrument across trading, collateral and payments.

The report found stablecoins dominate because they are seamlessly integrated into centralised exchanges, DeFi protocols and cross-border payment systems. Tokenized funds require additional subscription and redemption steps, limiting their use in high-frequency on-chain activity.

Why stablecoins keep winning despite lower yields

An XRP whale collected $224,500 in options premiums betting the token stays near $1.40 through June 26.

An XRP whale executed a short strangle on Deribit on May 21, selling 1.5 million contracts each of the $1.40 call and put options. The trade hit the tape as a single privately negotiated block to avoid moving the market.

By selling both the call and the put at the same strike, the trader provided insurance against sharp price moves in either direction. The $224,500 upfront premium is the maximum profit and is kept in full if XRP stays near $1.40 through the June 26 expiry.

How the short strangle works and what the whale risked

XRP has spent roughly 60% of 2026 trading between $1.30 and $1.50. The May 29 monthly options expiry has max pain at $1.40, according to Laevitas data, reinforcing that level as a near-term gravitational centre.

XRP options open interest has climbed back above 50 million contracts for the first time in nearly two months, according to Laevitas data, signalling renewed activity ahead of the May 29 monthly expiry.

Why the Clarity Act is the main threat to this bet

Crypto.news has explored why the Clarity Act matters more to XRP than to almost any other asset. A Senate floor vote arriving sooner than expected could push XRP sharply through $1.50, turning the short call into a loss.

Crypto.news has tracked how the May 15 options expiry pulled XRP back from $1.55 toward $1.45, consistent with max pain mechanics.

What happens if XRP breaks out of the $1.40 range

The short strangle becomes unprofitable when XRP moves far enough that losses exceed the $224,500 premium. A move above the strike plus premium on the upside, or below it on the downside, turns the position into a net loss.

Given the Clarity Act’s uncertain Senate timeline and macro pressure on Bitcoin near $77,000, the bet amounts to a conviction that nothing consequential happens to XRP before late June. The XRP (XRP) price page tracks live movements as that conviction is tested.

The US Commodity Futures Trading Commission (CFTC), under the sole leadership of Republican Michael Selig, announced a memorandum of understanding with the National Hockey League to protect the integrity of professional hockey and maintain fair and transparent prediction markets. The agreement is designed to enable information-sharing and coordinated action to deter insider trading, fraud, and other abuse on event contracts tied to hockey outcomes, while reinforcing the CFTC’s claim of exclusive jurisdiction over platforms like Kalshi and Polymarket.

In a Thursday statement, Selig said the move aims to shield prediction-market users from illicit activity as the CFTC continues to exercise its regulatory remit. The arrangement follows a pattern seen with Major League Baseball, which announced a similar pact in March and designated Polymarket as its Official Prediction Market Exchange. According to Cointelegraph, the NHL accord mirrors that MLB framework, signaling a broader alignment between leagues and federal regulators on market integrity standards.

Regulators note that the NHL agreement would allow the CFTC and the league to share information and coordinate to safeguard the integrity of both professional hockey and related event contracts on prediction-market platforms. With the 2026-27 NHL season slated to begin in September, Kalshi and Polymarket already listed event contracts tied to the Stanley Cup playoffs, which began in April.

Key takeaways

• The CFTC and the National Hockey League formalize information-sharing and joint oversight to protect hockey-related prediction-market contracts from manipulation and abuse.
• The pact reinforces the CFTC’s assertion of exclusive jurisdiction over prediction markets and follows prior enforcement actions against state authorities over such platforms.
• Live event contracts for major postseason hockey are present on Kalshi and Polymarket, indicating market readiness ahead of the upcoming season.
• Polymarket has filed to list combinatorial outcome contracts, signaling product expansion within the regulatory framework.

Regulatory coordination between the CFTC and the NHL

Under the memorandum of understanding, the CFTC and the NHL will share information and coordinate actions to protect market integrity around professional-hockey–related event contracts. This collaboration underscores the CFTC’s position that prediction markets fall within its exclusive regulatory remit, a stance the agency has enforced through actions against state authorities pursuing similar market structures in recent years. The objective is to deter insider trading, fraud, and other abuses that could erode user trust and undermine market reliability.

These arrangements illustrate how federal regulators are seeking to align sports leagues with robust compliance and monitoring frameworks for prediction markets. By integrating league operations with federal oversight, the ecosystem aims to reduce cross-market abuses while preserving legitimate hedging and informational use cases for participants.

Leadership and governance at the CFTC

The CFTC’s leadership situation remains a focal point for industry observers. Michael Selig serves as the agency’s chair and sole commissioner, with the expectation that the commission will eventually comprise five members. However, the panel has operated without a full slate since December. Lawmakers have pressed for nominations to fill the remaining seats, and while several oversight efforts have been advanced, President Donald Trump had not publicly announced any nominations as of Thursday. House committee leaders have urged action, citing the CLARITY Act as a framework to clarify agency governance and authorities in relation to prediction markets.

Product development and market structure

Polymarket filed a product self-certification letter with the CFTC Secretary Christopher Kirkpatrick, signaling its intention to list combinatorial outcome contracts. This step would permit the platform to bundle two or more underlying event contracts into a single instrument, expanding the design space for prediction-market participants while remaining subject to regulatory review. The filing underscores how product innovation within prediction markets continues to evolve under the supervision of the CFTC, balancing new capabilities with the need for transparent disclosure and enforceable standards.

From a practical perspective, the move matters for exchanges, liquidity providers, and corporate compliance teams that rely on clear governance around sports-linked prediction markets. As enforcement and licensing considerations shape product offerings, institutions will monitor how cross-state oversight, consumer protections, and platform registration requirements develop in tandem with market innovation.

Observers note these regulatory dialogues illustrate a broader trend toward formalized collaboration between sports leagues and federal regulators to manage risk, protect investors, and sustain market integrity in prediction markets. The evolving framework will influence how platforms structure products, how leagues engage with licensed venues, and how compliance teams assess exposure across multi-jurisdictional operations.

The closing dynamics to watch include how remaining CFTC seats are filled, how states respond to ongoing enforcement narratives, and how Polymarket’s combinatorial-contract plans proceed under ongoing scrutiny. Together, these elements will shape the regulatory landscape governing US prediction markets and their interface with professional sports ecosystems.

Harvard Management Company, the entity that manages Harvard University’s endowment fund, sold all of its Ether (ETH) holdings after just one quarter, according to its Q1 2026 United States Securities and Exchange Commission (SEC) filing.

The endowment no longer holds the $87 million in BlackRock iShares Ethereum Trust exchange-traded fund (ETF) shares, which it held in Q4 2025, according to its Q1 2026 SEC filing.

Harvard also reduced its exposure to Bitcoin (BTC) in Q1 2026, offloading about 2.3 million Bitcoin ETF shares. The endowment fund still holds more than 3 million shares of BlackRock’s iShares Bitcoin Trust ETF, valued at nearly $117 million.

Harvard’s asset holdings as of Q1 2026. Source: SEC

The change in holdings follows a turbulent year for ETH, which has fallen by over 50% from the all-time high of nearly $5,000 reached in August 2025, and several high-profile departures at the Ethereum Foundation (EF), the organization that oversees the ecosystem.

Related: Dartmouth endowment invests in Solana ETF, holds $14M in crypto exposure

Key personnel leave the Ethereum Foundation, as the organization receives flak

Julian Ma and Carl Beek, two researchers at the EF, recently announced their departure from the organization, bringing the total number of departures in 2026 to eight.

Josh Stark, a longtime researcher and former project manager at the Foundation, also left the organization in April. The departures follow several organizational and leadership changes at the EF, which began in January 2025.   

Source: Josh Stark

In March, the EF published a mandate outlining its goals and its focus on upholding decentralization, privacy, open-source software code and censorship resistance.

However, the mandate and the overall stance of the organization were met with mixed reactions from the crypto community.

The core pillars outlined in the EF’s mandate are “great” and “worth fighting for,” according to journalist Laura Shin, but the EF should also focus on tokeneomics and raising the price of its native asset, she added. 

“The Ethereum Foundation seems to want to sit back on its laurels and act above it all when all its competitors are all getting down and dirty on the field to gain market share,” Shin said.

Magazine: Why is Ethereum Foundation selling? BTC futures warning signs: Market Moves

TLDR:

• Binance Pool miner reserves are declining, showing operational selling pressure remains active in the market.
• The MPI staying negative confirms miners are selling below historical averages, reducing sharp dump risks.
• A Puell Multiple below 1.0 shows miner revenues remain historically weak, reflecting ongoing financial stress.
• Combined on-chain data suggests Bitcoin faces continued sideways consolidation before any confirmed bottom forms.

Bitcoin miners are showing a cautious but measured stance toward current market conditions. On-chain data reveals that miners are neither panic-selling nor aggressively accumulating.

Instead, they appear to be in a wait-and-see phase. Three key metrics — Binance Pool Miner Reserve, the Miner Position Index (MPI), and the Puell Multiple — paint a consistent picture.

Together, they suggest that Bitcoin has not yet confirmed a true market bottom, and that sideways price action may continue for some time.

Binance Pool Reserves and What Miner Behavior Is Telling the Market

The decline in Binance Pool Miner Reserve data is one of the more telling signals right now. Miners within Binance Pool are continuing to reduce their holdings.

Because Binance Pool controls a significant portion of global hash rate, its actions tend to reflect broader miner psychology before the wider market responds.

Falling reserves typically mean that operational selling is still ongoing. However, this selling does not appear to be driven by fear or urgency. According to CryptoQuant analyst @PelinayPA, “the decline in reserves still implies BTC supply entering the market. However, the weak MPI suggests these sales are not large enough to trigger a collapse.”

This distinction matters. Supply entering the market does not automatically translate into a sharp price decline. The pace and volume of that supply is what determines market impact. In this case, the data points to controlled, need-based selling rather than a broader miner capitulation.

As a result, the current selling pressure is best understood as an ongoing but modest headwind. It limits the likelihood of a strong upward breakout while also reducing the risk of a sudden price collapse.

Puell Multiple and MPI Reflect Continued Miner Stress

The Miner Position Index remaining in negative territory reinforces this cautious reading. Negative MPI values indicate that miners are selling less than their historical average — not more.

This rules out panic selling as a near-term risk. However, it also reflects that miners are not yet confident enough to hold aggressively.

The Puell Multiple adds another layer to this analysis. It is currently sitting below the 1.0 threshold, which means miner revenues remain historically weak.

Miners are still under financial pressure, and that pressure is prompting the modest selling activity seen in the reserve data.

Technically speaking, a Puell Multiple below 1.0 has historically aligned with periods near cycle bottoms. However, the absence of an aggressive accumulation signal suggests that miners do not yet see the conditions as definitively bottomed. They are not moving to build positions, which typically happens once miners believe the worst is behind them.

This combination of metrics points to a market that is stabilizing rather than recovering. The analyst notes that this type of behavior — cautious holding with moderate selling — is commonly observed near bottom formations.

That said, miners themselves do not appear to be acting on any conviction that a bottom has already been confirmed.

The broader takeaway for investors is straightforward. Short-term price pressure has not fully cleared. Bitcoin appears likely to remain in a consolidation phase in the near term, with neither a major breakdown nor a strong rally supported by the current miner data.

TLDR:

• Strategy now holds 843,738 BTC, adding nearly 25,000 coins last week at over $80,000 per coin.
• Spot ETFs absorbed ~19,000 BTC across April, with single-session inflows hitting $630M on May 1st.
• Forty-seven dormant wallets have moved 38,400 BTC in 2026 — equal to three full months of ETF demand.
• Once old-whale distribution exhausts itself, institutional buying gains no counterweight, pointing sharply upward.

Bitcoin’s price has held firm near $78,000 despite record institutional buying, raising questions about what is keeping the market anchored.

On-chain analysts tracking wallet movements and ETF inflows have identified a pattern that explains the flat price action. Major players like Strategy (formerly MicroStrategy) and spot ETF issuers are absorbing enormous supply.

Yet dormant wallets from the early Bitcoin era are quietly offsetting that demand through OTC channels.

Institutional Accumulation Reaches Historic Levels in May

Strategy added 24,869 BTC last week at an average price of $80,985 per coin. The company now holds 843,738 BTC with a total cost basis of $63.8 billion.

On May 17, Michael Saylor posted “₿ig Dot Energy” on social media. Independent trackers estimate another 15,466 BTC was accumulated that week, pending a formal 8-K filing.

Spot Bitcoin ETFs added roughly 19,000 BTC across nine trading sessions in April alone. BlackRock’s IBIT has now surpassed $66 billion in cumulative inflows since launch.

On May 1 alone, ETF products absorbed $630 million in a single session. The first two trading sessions of May combined for $1.1 billion in total inflows.

Post-halving miners now produce approximately 13,500 BTC each month. With institutions absorbing close to 50,000 BTC per month, the supply math points strongly upward.

However, price has stayed pinned between $78,000 and $82,000 for weeks. The Market Capitulation Oscillator has remained in negative territory throughout this period.

The divergence between demand and price movement puzzled many market participants. Standard dashboards showing only ETF inflows and corporate buying gave an incomplete picture.

The missing piece was found in dormant wallet activity and OTC settlement data. Analysts tracking long-term holder cohorts began connecting the dots.

Old-Whale Distribution Is the Hidden Force Behind the Chop Zone

Analytics firm Alphractal’s Whale vs. Retail Delta tracks who is buying and who is selling in each session. Over 14 of the last 21 trading sessions, retail investors showed net buying activity.

Meanwhile, whale-side readings showed net selling during those same sessions. That pattern matches distribution behavior, not a capitulation signal.

On May 11, a dormant wallet from 2013 moved 500 BTC. Whale Alert data shows that 72% of moves from wallets dormant more than seven years in 2026 resolved as OTC transactions rather than exchange sells.

Since the halving, 47 wallets holding coins for more than five years have moved. The combined volume from that cohort in 2026 has reached 38,400 BTC.

That figure equals roughly three months of ETF demand. These coins are being routed off-screen through OTC desks and absorbed quietly.

ETF buyers are, in effect, providing exit liquidity for early Bitcoin holders. The price stays flat because supply and demand are nearly balanced through this mechanism.

According to Alphractal, the setup will shift once old-whale distribution exhausts itself. Metrics like Liveliness, Coin Days Destroyed, and Days at Profit will converge when that supply source dries up.

At that point, institutional demand has no counterweight and price pressure turns sharply upward. Until then, the $78,000–$82,000 range is likely to hold as the dominant chop zone.

A liquidity imbalance in Bitcoin (BTC) is building near $80,000, with more than $4 billion in short positions vulnerable to liquidation above that level. The setup strengthened after Bitcoin defended support near $76,100 for two days and formed bullish signals on the lower time frames. 

BTC short liquidations stack above $80,000

On the one-hour chart, Bitcoin formed a bullish divergence between the price and the relative strength index (RSI), with improving momentum and higher lows near $76,100, suggesting underlying buying strength. BTC also retested $78,000 on Thursday after defending the $76,100 support level multiple times this week.

BTC/USDT, one-hour chart. Source: Cointelegraph/TradingView

The price action is also shaping an inverse head-and-shoulders setup beneath a descending trendline, a structure that often signals weakening bearish pressure before a breakout. A move above $78,000 could expose the fair-value gap (FVG) between $79,500 and $80,300, a low-liquidity price zone created during a sharp prior selloff that BTC price could revisit to fill the untraded range before continuing its next move. 

CoinGlass liquidation data show that the largest concentration of leveraged risk is above current price levels. A move toward $80,000 would expose more than $4 billion in cumulative short positions. By comparison, a decline toward $75,000 would expose roughly $3 billion in long liquidations.

This indicates that short sellers face greater pressure than bullish positions if BTC continues to climb. 

BTC liquidation map. Source: CoinGlass

Related: Bitcoin accumulation trends weaken as realized losses jump to $600M

Bitcoin futures activity overshadows spot

BTC liquidation activity has already accelerated over the past 24 hours. CoinGlass data recorded 103,963 liquidated traders, with total liquidations reaching $286.08 million. Short positions accounted for nearly $175 million of the total, while the largest single liquidation hit Binance’s BTCUSDT pair at $3.04 million.

Open interest in Bitcoin term. Source: CryptoQuant

CryptoQuant data showed Bitcoin-denominated open interest near 116,800 BTC, down from 120,000 BTC a day earlier. The lower open interest indicates traders closed part of their leveraged exposure during recent volatility. That usually points to more controlled derivatives activity rather than overheated speculation.

Spot market participation stayed weak during Bitcoin’s recovery toward $78,000. The aggregated spot cumulative volume delta (CVD), which tracks net buying and selling pressure, stood at -$483 million. The futures CVD turned slightly positive around $34 million, while funding rates remained elevated, indicating a bullish skew in the short term. 

BTC price, aggregated funding rate, futures, and spot CVD. Source: Velo chart

The split between weak spot demand and marginally strong futures activity shows leveraged traders are driving the recent upside. The liquidity concentration above $80,000 now stands as the clearest near-term retest level.

Related: SpaceX reveals larger-than-expected Bitcoin holdings in IPO filing