Grayscale, a16z, and the CCI asked the SEC to preserve existing classification rules and avoid treating novel exchange-traded products as a single category, while proposing different routes to clearer and faster reviews.

Crypto industry participants urged the US Securities and Exchange Commission (SEC) to avoid a blanket restriction on “novel” exchange-traded funds (ETFs) and instead evaluate products based on their individual risk parameters.

Venture capital firm a16z asked the SEC to evaluate novel products according to their underlying characteristics, coordinate fund-registration and exchange-listing reviews and adopt more predictable timelines. Digital asset investment manager Grayscale and the Crypto Council for Innovation (CCI) supported optional confidential pre-filing processes.

All three opposed changing existing investment-company classifications in ways that could automatically sweep products holding non-securities into the Investment Company Act framework.

The letters were dated Aug. 31 and posted by the SEC around the close of a 60-day public-comment period on its request for feedback concerning novel ETFs.

The SEC opened the consultation window on the next generation of ETFs on June 30, seeking feedback on whether existing regulations are adequate, how such funds should be regulated and whether changes to the registration process are needed.

Related: California Senate passes bill to ban memecoin issuance by public officials

Crypto industry stakeholders urge SEC for more regulatory clarity on novel ETFs

A16z argued that crypto-based ETPs now benefit from more developed market infrastructure, including exchange-approved listing standards and established disclosure requirements, and therefore should not be grouped with products holding private assets or using other novel strategies.

Grayscale similarly argued that digital asset products with established compliance and disclosure records should not face new portfolio conditions or disclosure regimes merely because they are characterized as novel. CCI called for comparable regulatory efficiencies across ETFs and non-ETF ETPs while preserving existing investor protections.

The commenters broadly opposed categorical regulatory changes that could impose additional requirements or delay product launches. However, their recommendations differed on classification, approval procedures and terminology.

One clear disagreement concerned the ETF label. a16z proposed that the term ETF should be reserved for funds under the Investment Company Act of 1940, while Grayscale said that the term ETF should describe economic characteristics regardless of the legal wrapper.

Meanwhile, CCI urged the financial regulator to create clearer registration-status disclosures rather than radically changing the current approval framework.

Magazine: What NYSE’s exploration of onchain systems means for financial markets

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Key takeaways

• Shiba Inu trades near $0.00000516 after rebounding almost 4% earlier this week.
• Whale wallets holding between 1 million and 100 million SHIB have sold a combined 40 billion tokens since August 22.
• Smaller whales accumulated 990 million SHIB over the same period.
• SHIB’s long-to-short ratio of 0.93 signals bearish positioning in the derivatives market.

Shiba Inu traded around $0.00000516 on Wednesday after recovering nearly 4% earlier in the week.

Despite the rebound, whale selling and weakening derivatives data suggest that traders remain cautious about the dog-themed memecoin’s short-term outlook.

SHIB continues to hold above its 50-day exponential moving average, but growing selling pressure could increase the risk of another decline.

Large SHIB whales reduce their holdings

Santiment’s Supply Distribution data signals a bearish shift among some of Shiba Inu’s largest holders.

Wallets containing between 1 million and 10 million SHIB and those holding between 10 million and 100 million tokens have collectively sold 40 billion SHIB since August 22.

The selling followed SHIB’s recent price recovery and may indicate that larger holders are taking profits rather than positioning for an immediate extension of the rally.

Sustained whale distribution could place additional supply on the market and make it more difficult for SHIB to maintain its upward momentum.

While larger wallets reduced their positions, smaller whales moved in the opposite direction.

Addresses holding between 100,000 and 1 million SHIB accumulated approximately 990 million tokens during the same period.

The contrasting behavior indicates a transfer of supply from larger holders to smaller participants. However, the amount accumulated by smaller whales remains substantially below the 40 billion SHIB sold by the larger groups.

This imbalance suggests that new demand may not be strong enough to fully absorb the tokens being distributed by bigger holders.

Shiba Inu’s derivatives market also points to cautious sentiment. CoinGlass data showed that SHIB’s long-to-short ratio stood at 0.93 on Wednesday. 

A reading below 1 means short positions outnumber long positions, indicating that more traders expect the token’s price to fall.

CryptoQuant’s data presents a similarly cautious picture. SHIB’s spot and futures markets are showing signs of heightened activity, while the futures market has recorded large whale orders following the recent price increase.

Other indicators remain neutral, leaving the broader outlook mixed rather than decisively bearish.

SHIB rebounds from the 50-day EMA

SHIB’s nearly 4% recovery followed a retest of its 50-day EMA near $0.00000489. This moving average is currently the token’s most important near-term support. Its ability to attract buyers during the recent decline suggests that demand remains present at lower levels.

If SHIB holds above this support and buying pressure increases, the recovery could extend toward the 200-day EMA at $0.00000569.

A breakout above the 200-day EMA would strengthen the bullish case and could encourage traders to target higher resistance levels.

Shiba Inu’s momentum indicators reflect uncertainty among traders. The Relative Strength Index stands at 54 on the daily chart and continues to rise. 

Its position above the neutral level of 50 indicates that bullish momentum is gradually improving.

However, the Moving Average Convergence Divergence indicator produced a bearish crossover on Sunday. Expanding red histogram bars also suggest that downward momentum remains active.

The disagreement between the RSI and MACD supports a cautious outlook as SHIB consolidates between its key moving averages.

If selling pressure increases, SHIB could fall back toward the 50-day EMA at $0.00000489.

A decisive daily close below this level would weaken the recovery and could expose the token to a deeper correction.

Conversely, continued support above the 50-day EMA could allow buyers to challenge the 200-day EMA at $0.00000569.

SHIB’s next significant move will likely depend on whether retail demand can absorb continued whale selling and reverse the bearish positioning visible in the derivatives market.

US-listed spot Bitcoin exchange-traded funds (ETFs) ended August on a strong note, recording $3.52 billion in net inflows—the highest monthly figure for 2026 and a major rebound from July. The surge closely tracked Bitcoin’s rally, which delivered its best month in more than a year.

According to SoSoValue data, August inflows cut year-to-date net outflows by about two-thirds, bringing the aggregate picture closer to balance. CoinGlass data also shows Bitcoin rose roughly 25% in August, its strongest month since a 37.29% jump in November 2024. Momentum, however, did not carry cleanly into September.

Key takeaways

• US spot Bitcoin ETFs pulled in $3.52 billion in August, the largest monthly inflow total of 2026, versus $172 million in July (SoSoValue).
• August’s ETF performance reduced year-to-date net outflows from $5.29 billion to $1.77 billion—an approximate 66% improvement.
• Flows were net positive on 16 of 21 trading days in August, including nine consecutive sessions from Aug. 17 to Aug. 27 (SoSoValue).
• September started with $236.46 million in net outflows, reversing a $216.70 million inflow day on Monday; ETF outflow was the largest since July 31 (SoSoValue).
• While Bitcoin ETF flows weakened at the start of September, spot Ether and XRP ETFs remained in positive territory on Tuesday (SoSoValue).

August inflows reshape the 2026 outflow picture

August’s $3.52 billion net inflow marked a decisive shift for US spot Bitcoin ETFs. Per SoSoValue, the funds’ year-to-date net outflows fell by roughly 66%, from $5.29 billion down to $1.77 billion. For investors watching ETF demand as a proxy for institutional appetite, the key change is not only that inflows increased in August, but that the improvement meaningfully reduced the drag from earlier months.

SoSoValue data highlights that the biggest outflow month earlier in the year was June, when ETFs saw $4.51 billion leave. That was followed by $2.43 billion in May and $1.61 billion in January. Against that backdrop, August’s rebound matters because it signals that the market’s willingness to add exposure via ETFs is not a one-day anomaly, but part of a broader month-long demand pattern.

SoSoValue further shows that August inflows were sustained rather than sporadic: the funds recorded net inflows on 16 of 21 trading days. The streak was particularly notable—nine straight sessions of net inflows from Aug. 17 through Aug. 27—suggesting consistent participation during the latter part of the month.

Rally and ETF demand move in tandem—at least for now

Bitcoin’s August performance appears to have reinforced ETF demand. CoinGlass data indicates BTC gained about 25% in August, its strongest monthly result since the 37.29% rally in November 2024. While ETF flows are influenced by more than price—such as broader risk appetite and positioning—strong price action often attracts incremental buyers, especially where ETFs provide straightforward exposure.

The scale of the August move also showed up in the funds’ broader base. Total net assets rose to $99.61 billion by the end of August, up from $76.29 billion at the end of July—an increase of about 31%. At the same time, monthly trading volume climbed nearly 49% to $58.63 billion from $39.37 billion. Together, higher net assets and higher turnover point to more active investor participation rather than a narrow inflow event.

September begins with a sharp flow reversal

Despite the strong close to August, US spot Bitcoin ETFs hit a rough start to September. On Tuesday, they recorded $236.46 million in net outflows. That reversed the $216.70 million in net inflows logged on Monday. According to SoSoValue, the Tuesday outflow was the largest daily withdrawal since July 31, when ETFs shed $265.37 million.

The shift coincided with weaker market pricing. CoinGecko data cited in the article indicates Bitcoin briefly fell below $77,000 on Tuesday after trading above $80,000 in late August. While the timing does not prove causality, it underlines a familiar pattern in ETF-driven flows: enthusiasm can accelerate during rallies, but outflows can return quickly when price momentum stalls or reverses.

For traders and portfolio managers, the practical takeaway is that August’s inflow momentum may have been sensitive to BTC’s direction. After a prolonged period of net buying in late August, readers may want to monitor whether September outflows extend beyond early volatility or whether they stabilize as price levels firm up.

Ether and XRP ETFs hold ground as Bitcoin cools

Not all crypto ETF demand weakened in the same way. On Tuesday, Ether and XRP ETFs remained positive on net flows. SoSoValue data shows spot Ether (ETH) ETFs attracted around $11 million, while spot XRP (XRP) ETFs drew $14.4 million.

The divergence also appears in year-to-date positioning. Per the same SoSoValue figures referenced in the article, August pushed Ether ETFs into positive territory for 2026, with $732 million in year-to-date net inflows. That compares with Ether ETFs being about $1.12 billion in the red at the end of July. XRP ETFs, meanwhile, reached $502 million in year-to-date net inflows—up roughly 46% from $343 million at the end of July.

These cross-asset differences matter because they can hint that ETF demand is not purely a “Bitcoin only” story. If Ether and XRP flows stay firm while Bitcoin ETFs fluctuate, investors may infer a more selective allocation across crypto exposures rather than a single broad risk-on bet across the entire sector.

Going forward, the immediate watch point is whether Bitcoin ETF outflows in early September are a temporary response to a softer BTC tape or the start of a wider reversal. With August demonstrating how quickly demand can rebuild—cutting year-to-date outflows by about two-thirds—next week’s flow data may be an important signal for whether the institutional bid is re-emerging or pausing again.

HashKey Group said on Sept. 2 that it had joined the Depository Trust & Clearing Corporation’s Digital Assets Advisory Services Industry Working Group, becoming its first Asian digital asset service provider.

The Hong Kong based company will participate in discussions about how tokenized securities can be issued, transferred, settled and safeguarded through institutional market infrastructure.

HashKey said the working group now includes more than 100 financial institutions, asset managers and digital asset companies. Participants named in its announcement include JPMorgan Chase, Goldman Sachs, Nasdaq and the New York Stock Exchange.

DTCC’s own May announcement named more than 50 participating organizations. The larger figure provided by HashKey appears to reflect additions made since the group was publicly introduced, although DTCC has not published an updated complete membership list.

HashKey brings Hong Kong experience to DTCC

HashKey operates digital asset trading, asset management and onchain infrastructure businesses across several regulated markets. Its operations include businesses in Hong Kong, Singapore, Japan and Bermuda.

Since 2023, the company has participated in tokenization projects led by Hong Kong financial authorities. It is a member of the Hong Kong Monetary Authority’s Project Ensemble Architecture Community, which examines how tokenized deposits and wholesale central bank money could support transactions involving tokenized assets.

📢 HashKey Group has joined the Depository Trust & Clearing Corporation (DTCC) Digital Assets Advisory Services Industry Working Group as the first Asian digital asset service provider.@The_DTCC is a core post-trade infrastructure provider, with its subsidiary, The Depository… pic.twitter.com/eseiH3G92g

— HashKey Group (@HashKeyGroup) September 2, 2026

HashKey has also joined Hong Kong’s Tokenised Bond Expert Group. The company said it has supported the issuance and circulation of tokenized money market exchange traded funds, bonds and structured notes.

That experience is relevant to the DTCC group because Hong Kong has been testing institutional tokenization under a regulated framework. As previously reported, Hong Kong regulators have also been developing tokenized fund and settlement infrastructure intended to connect digital assets with existing financial systems.

HashKey said it would contribute its Asia Pacific regulatory and operational experience to discussions on global tokenization standards. Its participation does not represent regulatory approval of a HashKey product, membership in DTC or a commitment by DTCC to use HashKey infrastructure.

DTCC working group supports an October service launch

DTCC formed the industry working group to advise the development of its tokenization service. The group includes banks, brokerages, asset managers, exchanges, custodians and blockchain infrastructure companies.

In its official May release, DTCC said participants would help examine product functionality, operational processes and market standards. The work covers how eligible securities can move between traditional records and blockchain based representations.

The service is designed to let DTC participants create tokenized versions of eligible securities already held in DTC custody. These representations are often described as digital twins because the underlying security remains within the regulated depository structure.

Participants would be able to transfer tokenized securities to approved wallets and convert them between conventional and tokenized formats. DTCC says its model is intended to preserve the ownership rights and investor protections attached to the underlying securities.

The working group is advisory. Its members can provide technical and operational feedback, but participation does not give them authority over DTCC’s systems or guarantee commercial access to the final service.

Production transactions tested several market functions

DTCC completed its first group of tokenized transactions in a production environment in July. The tests used securities held at DTC and covered equity transfers, collateral pledges, securities lending and delivery versus payment transactions involving U.S. Treasuries and repurchase agreements.

The trials ran across DTCC’s private blockchain based on Hyperledger Besu and the public Canton Network. Assets involved in the program reportedly included Microsoft and Circle shares, the Invesco QQQ Trust, the SPDR S&P 500 ETF and a BlackRock Treasury exchange traded fund.

JPMorgan also completed a conversion involving shares of the Invesco QQQ Trust. The transaction demonstrated how a security held at DTC could be represented through a blockchain based record without removing the underlying asset from the established custody system.

In related coverage, the production tests were described as a step toward onchain settlement for tokenized securities. They did not amount to an unrestricted public launch, and participation remained limited to approved institutions and test scenarios.

DTCC plans to introduce standardized tokenization services in October 2026. The initial service will include compliance and distribution controls, while later releases may add automation for issuance, servicing and corporate actions.

DTCC connects tokenization with existing custody

DTC is a central securities depository and a systemically important financial market utility in the U.S. HashKey said the depository safeguards more than $114 trillion in assets.

That figure describes the value of securities held within DTC’s custody infrastructure. It should not be interpreted as the value of assets already tokenized or scheduled to move onto blockchains.

DTCC’s approach differs from platforms that issue tokens outside the traditional custody system. Its planned service keeps the underlying securities within DTC while recording approved tokenized representations across supported networks.

The structure aims to connect blockchain based transfers with existing ownership records, compliance controls and settlement processes. DTCC says this could allow tokenized assets to use established market liquidity and investor protections, but those expected benefits will depend on the final service design and institutional adoption.

HashKey’s next role will be to participate in working group discussions as DTCC moves toward the October launch. Neither company disclosed a separate HashKey integration, jointly issued tokenized product or commercial agreement.