Welcome to Asia Pacific Morning Brief—a newsletter summarizing overnight cryptocurrency developments affecting regional markets and global sentiment. Enjoy a cup of green tea and follow this information.
SEC temporarily suspends cryptocurrency ETF approval while a Japanese textile manufacturer invests $5 million in Bitcoin. Meanwhile, Trump's DeFi platform continues its strong Ethereum accumulation strategy.
SEC Suspends Crypto Index Fund Conversion Amid Regulatory Uncertainty
The Securities and Exchange Commission (SEC) sent mixed signals this week regarding cryptocurrency index funds. The agency approved Bitwise's plan to convert its $1.68 billion cryptocurrency index fund into an ETF. However, the SEC immediately suspended approval for further review.
Bitwise's fund holds 90% in Bitcoin and Ethereum with the remaining assets allocated to eight other altcoins. This product would become the first multi-asset cryptocurrency ETF in the US if approved. Grayscale's Digital Large Cap Fund experienced a similar situation earlier this year.
Market observers believe the SEC is hesitant about index funds containing unapproved independent cryptocurrency ETFs. This approach could delay index fund approval until individual altcoin ETFs are passed. The Commission continues to review multiple cryptocurrency ETF applications from major asset managers including Franklin Templeton and Fidelity.
Long-established Japanese Textile Company Adopts Bitcoin Treasury Strategy
Kitabou Co., a traditional textile manufacturer in the UNESCO Geopark area of Hakusan city, announced plans to purchase $5 million in Bitcoin. The company will buy this digital asset through periodic transactions on domestic cryptocurrency exchanges over time. Kitabou intends to lend part of its Bitcoin to cryptocurrency-related businesses to generate stable interest income.
The company has additionally allocated $1.3 million for cryptocurrency mining activities and infrastructure through December 2028. Management is actively seeking joint ventures with foreign partners to comprehensively promote cryptocurrency business development globally. This strategic move represents traditional Japanese manufacturers increasingly diversifying their investment portfolios into digital assets for growth.
Kitabou's innovative strategy successfully combines traditional manufacturing roots with advanced digital finance in Asia's rapidly developing blockchain ecosystem. This significant announcement emphasizes the increasing adoption of Bitcoin treasury strategies by businesses across the region.
Trump's DeFi Platform Accelerates Ethereum Accumulation Strategy
The Trump family's DeFi platform, World Liberty Financial (WLFI), is once again accelerating Ethereum purchases. According to the chain data analyst AI, addresses related to WLFI purchased an additional 1,740 ETH (valued around $6.5 million) in the early hours of 07/23.
WLFI's recent Ethereum purchases are being assessed as a comprehensive investment strategy far beyond "medium price" averaging. Over the past six days, three wallets associated with WLFI have accumulated a total of 5,608.48 ETH (approximately $19.46 million).
The average purchase price is around $3,469.66 per ETH, and based on the current Ethereum price (around $3,700), this represents an unrealized gain of approximately $1.45 million. Even after these purchases, WLFI maintains Ethereum representing over 65% of its total assets.
Contributed by Paul Kim and Shigeki Mori.
