Crypto Weekly Market Wrap July 13 – ETF Flows, Regulation, Security Breaches, and Institutional Moves

The crypto market recorded major corporate, regulatory, security, and infrastructure developments last week. Firms adjusted digital asset strategies as regulators advanced new oversight measures. Meanwhile, several platforms expanded beyond crypto trading into stocks, lending, payments, and artificial intelligence. Security incidents also exposed persistent weaknesses across decentralized finance and governance systems. In the sections below, we will discuss major events that made headlines last week.

Strategy Sells Bitcoin to Rebuild Cash Reserves

Strategy sold 3,588 Bitcoin between June 29 and July 5, raising about $216 million. The company used the proceeds for preferred stock distributions and dollar reserves. Meanwhile, filings covered sales across two reporting periods. First, Strategy sold 1,363 Bitcoin for $80.8 million. Then, it sold 2,225 Bitcoin for $135.2 million. Holdings fell to 843,775 Bitcoin by July 5.

Summer.fi Vault Exploit Results in $6 Million Loss

On July 6, Summer.fi suffered an exploit that drained about $6 million from one vault. Blockaid detected active outflows while Summer.fi had not issued a technical report. Meanwhile, Blockaid issued its alert during active outflows.

Meanwhile, PeckShield identified LVUSDC as the affected vault. CertiK said the attacker used a $65.4 million flash loan to manipulate liquidity and earn roughly $6 million. Moreover, the vault’s displayed yield spiked abnormally.

Ripple Secures Full MiCA Approval Across Europe

Ripple gained full approval as a Crypto Asset Service Provider in Luxembourg on July 6. The CSSF authorization allows regulated crypto services across the European Economic Area.

It’s official: Ripple has received its EU CASP license. We are now fully MiCA-compliant and ready to meet growing European crypto demand https://t.co/I9GRgvfGzH

— Ripple (@Ripple) July 6, 2026

Therefore, banks and financial institutions can access Ripple’s services under MiCA rules. Cassie Craddock said the approval positions Ripple to meet institutional demand across Europe. Therefore, the license covers 30 EEA countries.

Bitmine Expands Ethereum Treasury With Major Purchase

On July 6, Bitmine added 42,197 ETH worth about $74 million, pushing the total holdings to 5,742,237 ETH after the purchase. The acquisition saw the firm move closer to its target of controlling 5% of supply. Bitmine also staked 4,879,157 ETH through MAVAN and partners. Meanwhile, Chairman Thomas Lee linked Ethereum’s strength to CLARITY Act optimism. Staked Ether represented nearly 85% of the company’s total holdings.

Grayscale Says Strategy Sale Reduces Bitcoin Tail Risks

Grayscale researcher Zach Pandl said Strategy’s sale improved balance sheet discipline. On July 6, he argued that larger dollar reserves could reduce funding concerns tied to preferred dividends. Meanwhile, the sale shifted attention toward stronger liquidity management. However, Strategy still held about $52 billion in Bitcoin against roughly $7 billion in debt. Pandl said the reserve rebuild also strengthened confidence in STRC. Still, preferred dividends stayed below $2 billion.

BonkDAO Treasury Drained Through Malicious Governance Proposal

On July 6, attackers drained about $20 million from BonkDAO after passing a malicious governance proposal. The organization reported the theft to law enforcement and industry partners. Instead, the proposal exploited governance, not Solana’s network.

BonkDAO Hit by Governance Attack as $4 Million Vote Push Drains $20 Million

BonkDAO, the governance body behind BONK, one of Solana’s largest memecoin ecosystems, said it was hit by a malicious governance proposal that led to about USD 20 million worth of BONK being drained from…

— Wu Blockchain (@WuBlockchain) July 7, 2026

According to Lookonchain, the attacker spent $4.4 million to secure enough voting power. The proposal transferred 4.426 trillion BONK to a controlled wallet. Meanwhile, the attacker bought BONK on exchanges beforehand.

Polymarket Faces Lawsuit Over Strategy Bet Payouts

Two traders sued Polymarket over a market tied to Strategy’s Bitcoin sales. They claimed the platform denied valid winning payouts. Burwick Law formally filed the case in New York for both traders on July 6. The complaint said Strategy sold 32 Bitcoin before the stated deadline. However, Polymarket reportedly resolved the market as “No” afterward. Plaintiffs specifically alleged the platform changed market wording after the deadline.

Sony Bank Receives Conditional Approval for Dollar Stablecoin

On July 6, Sony Bank gained conditional OCC approval to establish Connectia Trust National Association. The new trust bank will support its planned United States dollar stablecoin. Sony plans to capitalize the subsidiary with $40 million. However, Connectia Trust must satisfy more regulatory conditions before operating. Sony Bank expects the institution to begin work next year after final approval. Bastion will support issuance, reserves, and custody.

Coinbase Gains UK Approval for Wider Investment Services

Coinbase secured approval to offer broader investment services in the United Kingdom on July 7. Institutional users can access derivatives linked to crypto, equities, and commodities. Additionally, Coinbase held e-money and crypto registrations.

Today marks our biggest ever expansion of Coinbase UK's product suite.

We've now secured an investment services authorisation in the UK, enabling us to soon offer both equities and derivatives.

Another step to bringing the everything exchange worldwide. pic.twitter.com/sns3IGRHHM

— Coinbase 🛡️ (@coinbase) July 7, 2026

Retail users can also trade shares through Coinbase for the first time. The exchange said the license supports its plan to combine multiple financial services. Meanwhile, the UK crypto regime starts in October 2027.

Russia Crypto Bill Advances Toward Second Reading

On July 7, Russia’s crypto bill moved closer to a second reading after committee approval. The draft covers investor rules, wallet reporting, court protection, and fraud safeguards. Lawmakers also added amendments before the parliamentary stage. Unqualified investors could invest up to 300,000 rubles yearly through intermediaries. Qualified investors would access more assets after passing a special test. Moreover, the proposal protects declared and undeclared crypto rights.

Strike Launches Bitcoin Loans Without Price Liquidations

Strike launched a Bitcoin-backed loan without margin calls or price-based liquidations. Borrowers can keep collateral unchanged while they meet scheduled repayment obligations. Strike described the product as volatility-resistant via an X post on July 7. However, Strike may sell collateral after missed payments and failed contact. The product carries a maximum 45% loan-to-value ratio and a six-month term. Therefore, annual percentage rates can reach 14.2%.

Gemini Adds Commission-Free Stock Trading for US Customers

On July 7, Gemini launched commission-free stock trading for eligible United States customers. Users could access thousands of exchange-listed securities through its app. Gemini combined stocks and crypto inside one regulated application. Nasdaq provided real-time market data, while Apex handled custody and clearing. The service remained unavailable in several states and territories. Gemini Galactic Markets operated the service through an introducing broker model.

European Regulators Begin Joint Crypto-Custody Cybersecurity Review

ESMA launched a joint review of crypto custodians across the European Union on July 8. National regulators will examine governance, key storage, transaction controls, and cyber response. Authorized custody providers face targeted reviews.

JUST IN: ESMA launches first coordinated crypto custody review after MiCA enters full enforcement

The European Securities and Markets Authority (ESMA) has launched its first Common Supervisory Action (CSA) on crypto-asset service providers (CASPs) since MiCA entered full… pic.twitter.com/n4s3DwsprY

— Wu Blockchain (@WuBlockchain) July 8, 2026

Furthermore, the review will assess smart contract risks and third-party technology dependence. Authorities will conduct checks through early 2027 before ESMA issues a final report. Later, a final report should arrive during 2027.

Wyden Seeks Blockchain Developer Protections in Clarity Act

Senator Ron Wyden urged Senate leaders to retain protections for non-custodial blockchain developers on July 8. He said software creators should not face money transmitter rules without controlling funds. Section 604 contains the Blockchain Regulatory Certainty Act. Still, Wyden supported strong anti-money-laundering safeguards. He said protections should exclude developers who transfer or use funds linked to illegal activity. He said enforcement should target criminals and intermediaries.

Hyundai Card Tests Stablecoin Transfers Across North America

On July 9, Hyundai Card completed a stablecoin transfer test between Hyundai Motor’s American and Mexican units. The $20,000 payment used USDT and took about seven minutes. Meanwhile, traditional transfers required several hours for comparison. Next, Hyundai plans a European test using local currencies. Circle and Visa should join, while the project will focus on foreign exchange costs and settlement efficiency. Next, the trial will examine conversion expenses.

Alfa-Bank Plans Crypto Services Under New Russian Law

Alfa-Bank announced plans to launch digital asset services after Russia’s new crypto rules take effect on July 9. Its first step would involve creating a digital depository. The depository would track cryptocurrency transaction activity.

Russia's Largest Private Bank Alfa-Bank Plans to Offer Crypto Services

Russia's largest private bank, Alfa-Bank, plans to become a regulated digital asset custodian and offer crypto-related services to clients and other businesses. The bank also aims to develop investment… pic.twitter.com/lHkjMYCGCT

— Wu Blockchain (@WuBlockchain) July 9, 2026

The bank also wants blockchain-based investment products for domestic and foreign clients. However, it cannot proceed before the planned law becomes effective. It may also block transfers to unapproved wallets.

Binance Rejects Claims of Reduced US Investigator Cooperation

Binance denied reports that it reduced cooperation with United States law enforcement on July 9. The exchange said valid requests still receive support through its existing system. The report described possible limits on courtesy freezes. Meanwhile, a reported Justice Department memo suggested prosecutors may need formal legal requests for some freezes. Binance said its cooperation policies remain unchanged. Formal requests may include treaty-based legal procedures.

Swift Starts Blockchain Payment Pilot With Seventeen Banks

Swift moved its blockchain ledger into initial use with 17 global banks on July 9. The system supports tokenized deposits and round-the-clock payment activity. The banks will retain existing ledgers, compliance controls, and settlement systems. Swift will focus on interoperability rather than on issuing money or holding customer funds. Customers will be able to move funds beyond normal banking hours.

Ethereum Foundation Disbands Its Protocol Support Team

On July 9, the Ethereum Foundation disbanded its Protocol Support team during a wider restructuring. The unit handled developer meetings, upgrade planning, EIP support, and training. Protocol Support had operated for more than five years.

Ethereum Foundation's Protocol Support Team Disbanded

EF Protocol Support said the Ethereum Foundation's Protocol Support team has been disbanded. The team coordinated Ethereum's protocol development process, including core developer meetings, network upgrade tracking, EIP… pic.twitter.com/CHLuEhu6b8

— Wu Blockchain (@WuBlockchain) July 10, 2026

However, the foundation has not explained where every responsibility will move. Mario Havel remained at the organization, while former lead William Morris lost his role. The restructuring previously removed 54 foundation positions.

Binance EU Withdrawals Rise After MiCA Service Restrictions

On July 9, Binance said about 70% of affected European users moved assets into self-custody. Only around 30% transferred funds to MiCA-compliant platforms. The restrictions followed Binance’s licensing problems in Europe. The exchange recorded about $1.23 billion in weekly net outflows. However, Binance still managed roughly $114 billion in crypto assets. French customers retained withdrawals but lost trading access.

Polymarket Seeks US License for Margin Trading

On July 9, Polymarket applied for a Futures Commission Merchant license through Coming Home GBA. The platform wants regulatory approval to offer margin trading. The filing reached the National Futures Association on July 3. Meanwhile, the company needs CFTC approval to change its rulebook. Users of margin products would also face expanded identity verification requirements. Margin access would attract more sophisticated market participants.

Hong Kong Orders Stronger Login Security for Crypto Platforms

On July 9, Hong Kong’s SFC ordered licensed crypto platforms and brokers to phase out one-time passwords. Firms must adopt stronger methods within 12 months. Passkeys and device binding rank among acceptable alternatives. The regulator also required enhanced monitoring of suspicious logins, trades, and withdrawals. Senior managers will remain responsible for protecting customer accounts and assets. Firms must also notify clients about major activities.

Metaplanet Studies Bitcoin-Backed Digital Credit Products

On July 10, Metaplanet began a joint study with Metaplanet Securities, JPYC, and Progmat. The group will examine Bitcoin-backed credit products, stablecoin payments, and security tokens. Bitcoin could provide collateral or broader credit support.

Ethereum Foundation's Protocol Support Team Disbanded

EF Protocol Support said the Ethereum Foundation's Protocol Support team has been disbanded. The team coordinated Ethereum's protocol development process, including core developer meetings, network upgrade tracking, EIP… pic.twitter.com/CHLuEhu6b8

— Wu Blockchain (@WuBlockchain) July 10, 2026

The study covers product design, legal requirements, investor protection, and settlement. However, the firms have not confirmed an issuance date or final structure. JPYC may handle interest, distributions, and repayments.

Circle Wins Final OCC Approval for National Trust Bank

Circle received final OCC approval to establish a national trust bank on July 10. The institution will operate as Circle National Trust under direct federal supervision. Its legal name will differ from its operating brand. Initially, the bank will provide fiduciary digital asset custody for Circle affiliates. Later, it may manage USDC reserves and serve selected institutional clients. Circle has not announced the bank’s opening date.

Robinhood Prepares Agentic AI Trading for Crypto

Robinhood said on July 10 that Agentic Trading would soon expand to cryptocurrencies. Qualified customers could link third-party AI agents to dedicated accounts. The feature was initially released for stocks ahead of the scheduled rollout for cryptocurrencies. Agents could monitor and execute the approved strategies in user guardrails. Robinhood stated that individuals could still be liable for account activity. An agent can be disconnected by the customer at any time.

Senate Democrats Demand Hearings on Trump Crypto Earnings

On July 11, five Senate Democrats called for hearings into President Donald Trump’s reported crypto earnings. They cited possible conflicts involving legislation and family-linked ventures. Their statement cited roughly $1.4 billion in earnings.

JUST IN: Senate Democrats push for hearings on Trump’s ties to crypto amid CLARITY Act talks. If confirmed, could sharpen regulatory scrutiny around presidential influence and crypto funding. $BTC $ETH pic.twitter.com/kwCWFkqqoN

— Bpay News (@bpaynews) July 10, 2026

The lawmakers also raised national security concerns about foreign investors in World Liberty Financial. They asked Senate committees to examine potential outside influence. Five senior senators signed the joint demand.

Blockchain Security Losses Reach Nearly $1 Billion

SlowMist recorded 182 blockchain security incidents during the first half of 2026. Total losses reached about $956 million across multiple ecosystems. Ethereum recorded about $134 million in ecosystem losses. DeFi projects suffered 116 incidents and nearly $490 million in losses. Cross-chain bridge attacks caused about $346 million in losses, including the major Kelp DAO incident. SlowMist highlighted that AI scams and supply-chain attacks widened risks.

Digital Asset Investment Products Market Overview

US spot Bitcoin ETFs reversed an eight-week run of withdrawals after bringing in $197.4 million during the July 6-10 trading week. BlackRock accounted for most of the gains with $291.9 million in fresh inflows. Grayscale, Fidelity, and ARK 21Shares, however, finished the week with net withdrawals.

Spot Bitcoin ETFs Record $197 Million in Weekly Net Inflows, Ending Eight-Week Outflow Streak

From July 6 to 10 (ET), U.S. spot Bitcoin ETFs recorded $197 million in net inflows, ending an eight-week outflow streak. Spot Ethereum ETFs saw $84.42 million in net inflows, also… pic.twitter.com/OyW00HA76o

— Wu Blockchain (@WuBlockchain) July 13, 2026

Ether ETFs also returned to positive territory, adding $84.42 million after weeks of steady outflows. Meanwhile, Solana ETFs recorded modest inflows, while Hyperliquid funds attracted $10.36 million. XRP ETFs moved in the opposite direction and posted $7.18 million in net outflows for the week.

Bitcoin Price Performance

Bitcoin recorded a positive performance last week, surging from lows of $61,500 to $64,500, where it faced a rejection. During that period, it posted a gain of nearly 2% as the price corrected toward the end of the week. At the time of this writing, BTC is trading around $63,110, with a market cap of $1.28 trillion.

Looking at the technical perspective, BTC has formed a bullish reversal pattern as the price bounced from the support. The bulls are targeting a test of the next resistance at the $67,361 region. A break above this level could see BTC aim for the $73,942 and $83,154 targets if the current trend holds.

In addition, indicators such as the Relative Strength Index and Moving Average Convergence Index back this bullish reversal trend. The RSI has risen from the oversold zone to 39 points, suggesting stronger demand. Meanwhile, the MACD line is forming a crossover above the signal line. The histogram is also starting to form green bars, indicating shifting market dynamics.