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U.S. SEC Approves Grayscale’s Digital Large Cap Fund (GDLC) As A Spot Crypto ETF

By
Paul Ugbede Godwin
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0

U.S. Securities and Exchange Commission (SEC) approved Grayscale Investments’ Digital Large Cap Fund (GDLC) to convert into a spot cryptocurrency exchange-traded fund (ETF) on July 1, 2025, allowing it to list and trade on NYSE Arca. The fund, which tracks the CoinDesk 5 Index, holds approximately 80.2% Bitcoin (BTC), 11.3% Ethereum (ETH), 4.8% XRP, 2.7% Solana (SOL), and 0.8% Cardano (ADA), managing around $755 million in assets.

This marks the first U.S. spot ETF to include XRP, Solana, and Cardano alongside Bitcoin and Ethereum, offering investors diversified exposure to major cryptocurrencies through a regulated vehicle. However, the SEC has indefinitely paused the approval order for further review, delaying the ETF’s trading launch. Analysts suggest this pause may stem from internal SEC divisions seeking to refine the product before it trades, though no specific reasons were disclosed.

Despite the delay, Bloomberg analysts estimate a 95% chance of individual spot ETFs for XRP, Solana, and Cardano being approved by the end of 2025, reflecting a shifting regulatory stance toward broader crypto acceptance. The approval is seen as a step toward legitimizing altcoins, potentially increasing institutional participation and market liquidity.

The SEC’s approval of Grayscale’s Digital Large Cap Fund (GDLC) as a spot crypto ETF, followed by the indefinite pause for further review, carries significant implications for investors, the crypto market, and regulatory dynamics. The inclusion of XRP, Solana (SOL), and Cardano (ADA) alongside Bitcoin (BTC) and Ethereum (ETH) in a regulated ETF signals growing acceptance of altcoins by U.S. regulators. This could enhance their credibility, potentially attracting institutional and retail investors to these assets.

The GDLC ETF offers a single vehicle for exposure to a basket of major cryptocurrencies (80.2% BTC, 11.3% ETH, 4.8% XRP, 2.7% SOL, 0.8% ADA), reducing the complexity and risk of managing individual crypto holdings. This could drive demand from investors seeking diversified crypto exposure without direct custody. Approval and eventual trading of the ETF could boost liquidity for XRP, SOL, and ADA, as institutional capital flows into these assets.

Historical data suggests ETF approvals often lead to price appreciation; for instance, Bitcoin spot ETFs approved in 2024 drove BTC to new highs. However, the pause may temper short-term price momentum. The SEC’s pause highlights ongoing regulatory caution, potentially due to concerns over market manipulation, investor protection, or the inclusion of less-established altcoins like XRP, SOL, and ADA. This could delay investor confidence and market impact until clarity is provided.

A diversified spot ETF could accelerate institutional participation in crypto, as it offers a regulated, familiar investment structure. This may lead to increased capital inflows, particularly for altcoins, which have lagged behind BTC and ETH in institutional interest. The approval sets a precedent for multi-asset crypto ETFs, potentially paving the way for individual spot ETFs for XRP, SOL, and ADA by late 2025, as Bloomberg analysts predict (95% likelihood). This could further integrate crypto into traditional finance.

While the ETF reduces barriers to crypto investment, the pause introduces uncertainty, potentially affecting investor sentiment. If approved, the fund’s $755 million in assets could grow significantly, but investors face risks from market volatility and regulatory shifts. The approval (and its pause) underscores a pivotal moment for crypto’s integration into mainstream finance, with potential for increased adoption and liquidity, tempered by regulatory hurdles that could shape the timeline and impact.

African Startups Raise $1.4 Billion in H1 2025, Marking Strongest Performance in a Year

By
Ojukwu Emmanuel
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0

African startups recorded a remarkable resurgence in fundraising in the first half of 2025, with total funding reaching $1.35 billion a 78% increase compared to the $800 million raised during the same period in 2024.

According to a report by Africa: The Big Deal, these startups raised funds through $100k+ deals (excluding exits). The standout month was June 2025, when startups secured $365 million, marking not only the strongest monthly performance of the year but also the best in nearly a year.

While June’s impressive numbers contributed significantly to the upbeat results, the momentum had been building steadily throughout the year. Funding surpassed the $250 million mark in four out of the six months of H1 2025, signaling consistent investor confidence and a sustained rebound from 2024’s more modest performance. These impressive funds raised eclipsed the poor funding in March as only $50m in funding was announced, one of the lowest monthly tallies since late 2020.

The monthly average funding now stands at $237 million, up from $187 million in full-year 2024, and significantly higher than $133 million in H1 2024. The performance of H1 2025 nearly matches that of H2 2024, which closed at $1.37 billion, reflecting only a marginal 1.5% decrease in half-year growth. This consistency suggests a stabilizing fundraising environment, with both equity and debt financing contributing meaningfully to the upward trend.

In the equity space, startups raised a total of $950 million in the first half of 2025—up 79% compared to H1 2024, but down slightly by 7% relative to H2 2024. The debt financing landscape also saw a major revival. Although debt funding had lagged earlier in the year, with only $177 million raised by the end of May (compared to $255 million in the same period last year), June brought a major turnaround.

Startups secured $227 million in debt funding during the month, the highest monthly debt figure seen in more than two years. This includes a notable $137 million debt round by fintech firm Wave. The funding led by Rand Merchant Bank (RMB) and backed by global development finance institutions, including British International Investment (BII), Finnfund, and Norfund, underscores investor confidence in Wave’s low-cost financial services model.

According to the fintech unicorn, it disclosed that the funding will be used to advance its mission of making financial services affordable and accessible to users.

Also, other startups that raised in June include Basigo, a Kenyan electric mobility company that secured $42 million in funding to expand its electric bus operations in Kenya, contributing to sustainable transportation initiatives. The “Big Four” countries (Kenya, Nigeria, Egypt, and South Africa) continued to dominate, but Senegal stood out in June due to Wave’s significant raise.

By the end of June, total debt funding for H1 2025 reached $400 million, representing a 55% increase over H1 2024 and effectively matching the $404 million raised in H2 2024.

While the first half of 2025 funding total remains impressive compared to the previous year, it remains the second poorest first half since 2022 and the third slowest half out of the seven since then. However, considering that the African startup funding space is generally considered to be undergoing an alignment, the numbers give more to celebrate.

These figures highlight a robust and resilient African startup ecosystem. With funding levels nearly doubling compared to early 2024 and maintaining parity with late 2024, the continent’s innovators appear well-positioned for sustained growth in the second half of the year.

Bit Digital Raises $162.9M For Ethereum Investments

By
Paul Ugbede Godwin
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0
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Bit Digital, Inc. (Nasdaq: BTBT) raised approximately $162.9 million in net proceeds through a public offering of 86.25 million ordinary shares, with the funds earmarked for purchasing Ethereum (ETH) to expand its corporate treasury and staking operations. The offering, which closed on July 1, 2025, included an additional $21.4 million from underwriters exercising their option to purchase 11.25 million more shares.

The company is pivoting from Bitcoin mining, which saw a 64% revenue drop in Q1 2025, to focus on Ethereum staking, holding 24,434.2 ETH (valued at ~$59.8 million as of July 2, 2025) and planning to convert its 417.6 BTC (~$28 million) into ETH over time. This move reflects a broader trend of institutional interest in Ethereum as a treasury asset due to its staking yields and role in decentralized finance.

Bit Digital’s pivot from Bitcoin mining to Ethereum staking reflects a strategic response to declining Bitcoin mining profitability (64% revenue drop in Q1 2025). Ethereum’s Proof-of-Stake (PoS) model offers predictable yields (typically 3-5% annually), making it attractive for generating passive income compared to the energy-intensive and volatile Bitcoin mining. By allocating funds to acquire ~24,434.2 ETH (~$59.8M as of July 2, 2025) and planning to convert 417.6 BTC (~$28M) into ETH, Bit Digital is positioning Ethereum as a core treasury asset. This mirrors moves by companies like MicroStrategy with Bitcoin, signaling growing institutional confidence in Ethereum’s long-term value.

The capital will fund infrastructure for Ethereum staking, potentially increasing Bit Digital’s staking rewards and market influence in Ethereum’s ecosystem. This could position the company as a significant player in decentralized finance (DeFi) and Ethereum’s validator network. A public company raising significant capital to buy ETH signals institutional adoption, potentially boosting market sentiment and ETH prices. This could encourage other firms to diversify crypto holdings beyond Bitcoin.

Large-scale ETH purchases reduce circulating supply, especially as staked ETH is locked in validator nodes, potentially creating upward price pressure if demand persists. Bit Digital’s shift may pressure other miners to explore alternative revenue streams, especially as Bitcoin’s halving cycles reduce block rewards and mining profitability. ETH’s price (~$2,448 as of July 2, 2025) is subject to market fluctuations. A bearish market could erode the value of Bit Digital’s treasury.

Institutional crypto holdings face scrutiny, particularly in the U.S., where Ethereum’s status as a security remains debated. Regulatory crackdowns could complicate staking operations. Scaling staking infrastructure requires technical expertise. Any mismanagement (e.g., slashing penalties for validator errors) could reduce yields or lead to losses.

Bitcoin is often viewed as “digital gold,” emphasizing scarcity and decentralization. Companies like MicroStrategy hold BTC for long-term value preservation. However, Bitcoin’s Proof-of-Work (PoW) mining is capital-intensive, environmentally criticized, and less flexible for generating yield. Ethereum’s PoS transition (post-Merge 2022) enables staking, offering yields and supporting DeFi applications.

Its ecosystem powers smart contracts, NFTs, and dApps, making it a functional asset for corporate treasuries seeking both growth and income. Firms like MicroStrategy and Marathon Digital prioritize Bitcoin, betting on its scarcity and market dominance. They view BTC as a hedge against inflation and fiat devaluation but face challenges from mining’s high costs and volatility.

Bit Digital’s move reflects a growing cohort favoring Ethereum for its staking yields and DeFi exposure. This strategy appeals to firms seeking active returns rather than passive holding, though it involves navigating Ethereum’s complex ecosystem and risks like smart contract vulnerabilities. Bitcoin-focused firms may attract investors seeking stability in crypto’s “blue-chip” asset, while Ethereum-focused firms like Bit Digital appeal to those betting on Web3 and DeFi growth.

Bitcoin’s simpler narrative contrasts with Ethereum’s multifaceted use cases, creating a divide in perceived risk. Ethereum’s staking and DeFi exposure carry technical and regulatory risks, while Bitcoin’s risks are tied to price volatility and mining economics. Bit Digital’s pivot may inspire other crypto firms to diversify into Ethereum or other PoS assets, reducing reliance on Bitcoin mining amid rising energy costs and regulatory pressures.

The choice between Bitcoin and Ethereum reflects differing corporate visions—Bitcoin as a safe haven vs. Ethereum as a growth engine. This divide could shape how institutions allocate capital in crypto markets, influencing liquidity and price dynamics. Bit Digital’s $163M raise to buy Ethereum marks a bold shift toward staking and DeFi, with implications for market sentiment, ETH demand, and competitive dynamics in the crypto industry.

The U.S. SEC’s Generic Listing Standard Could Transform The Crypto ETF Landscape

By
Paul Ugbede Godwin
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0

U.S. Securities and Exchange Commission (SEC) is in the early stages of developing a generic listing standard for token-based exchange-traded funds (ETFs) in collaboration with exchanges. This initiative aims to streamline the approval process for crypto ETFs by allowing issuers to bypass the complex and time-consuming 19b-4 rule-change filing process.

Instead, if a token meets predefined criteria—potentially including metrics like market capitalization, trading volume, and liquidity—issuers could file an S-1 registration statement, wait 75 days, and list the ETF directly on an exchange. This shift could significantly reduce regulatory hurdles, accelerate approval timelines, and foster innovation by making it easier for asset managers to launch diverse crypto ETFs, including those for assets like Solana, XRP, and others.

The proposed framework responds to growing demand for regulated crypto investment products and aims to provide clearer application of securities laws while maintaining investor protections. For instance, the SEC’s Division of Corporation Finance has issued guidance on disclosure expectations for crypto ETPs, covering aspects like net asset value calculation, benchmarks, and custody practices.

Recent approvals, such as Grayscale’s Digital Large Cap Fund and a Solana staked ETF, signal a more favorable regulatory stance. Bloomberg analysts estimate a 90–95% chance of approval for ETFs tied to major altcoins like Solana and XRP by year-end 2025, reflecting optimism about the initiative’s potential impact. However, specific listing criteria remain undisclosed, and the SEC’s focus on investor protection will likely ensure rigorous standards for market manipulation risks and asset eligibility.

A streamlined approval process for crypto ETFs would lower barriers for retail and institutional investors to gain exposure to cryptocurrencies without directly holding them, potentially increasing mainstream adoption. Tokens like Solana, XRP, and others could see ETFs launched, diversifying investment options beyond Bitcoin and Ethereum. This could drive capital inflows and boost the prices of eligible tokens.

By replacing the complex 19b-4 filing with a standardized S-1 process, the SEC could reduce approval times from months to as little as 75 days, encouraging innovation and competition among asset managers. Defined criteria (e.g., market cap, liquidity, trading volume) would provide issuers with predictable guidelines, reducing regulatory uncertainty. Regulated ETFs could enhance the crypto market’s legitimacy, attracting risk-averse investors and institutions hesitant to engage with unregulated platforms.

Increased ETF adoption could improve liquidity for underlying tokens, potentially reducing volatility, though risks like market manipulation remain a concern. A robust crypto ETF framework could position the U.S. as a leader in regulated crypto products, competing with jurisdictions like Canada and Europe, which already have established crypto ETP markets. The SEC’s focus on metrics like market manipulation resistance and custody standards aims to protect investors from fraud and operational risks, though overly stringent criteria could limit token eligibility.

Crypto exchanges, asset managers (e.g., Grayscale, BlackRock), and industry advocates view the standard as a game-changer, enabling faster product launches and broader market access. They argue it aligns with the crypto market’s growth, with global crypto ETP assets under management reaching $120 billion in 2025. Bloomberg analysts and industry leaders like Nate Geraci predict approvals for altcoin ETFs (e.g., Solana, XRP) by late 2025, citing the SEC’s recent approvals as evidence of a softening stance.

Some traditional financial institutions and SEC officials remain cautious, emphasizing risks like market manipulation, insufficient liquidity for smaller tokens, and custodial challenges. For example, only tokens with robust market infrastructure may qualify, potentially excluding newer or smaller assets. Critics argue that the SEC’s stringent investor protection standards could lead to narrow eligibility criteria, limiting the range of tokens available for ETFs and frustrating issuers seeking flexibility.

Retail Investors may benefit from easier access to diversified crypto exposure but could face risks if complex products (e.g., staked ETFs) are not clearly explained. Larger players may dominate the ETF market, potentially sidelining smaller issuers and creating a concentration of influence among major asset managers. Some in the crypto community oppose ETFs, arguing they undermine the decentralized ethos by funneling investment through traditional financial systems, potentially increasing regulatory oversight over tokens.

Others see ETFs as a necessary step toward mainstream adoption, even if it means greater integration with centralized finance. The SEC’s generic listing standard could transform the crypto ETF landscape by fostering innovation, improving access, and enhancing market legitimacy. However, the divide between crypto advocates pushing for rapid expansion and skeptics prioritizing investor safety highlights ongoing tensions. The success of this framework will depend on balancing regulatory rigor with flexibility to include a diverse range of tokens, while addressing concerns about market risks.

Implications of Trump’s Stance On No-Extension of July 9th Deadline on Reciprocal” Tariffs

By
Paul Ugbede Godwin
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0
USC experts talk about the importance of U.S.-China trade and how it affects the economy. (Illustration/iStock)

President Donald Trump has indicated he does not plan to extend the July 9, 2025, deadline for the 90-day pause on “reciprocal” tariffs, which could lead to higher tariffs on numerous countries unless trade deals are secured. In a Fox News interview on June 29, 2025, he stated, “I don’t think I’ll need to,” though he added, “I could, no big deal,” suggesting some flexibility.

He emphasized that letters would soon be sent to countries outlining tariff rates—ranging from 10% to 50%—based on their trade relations with the U.S. However, mixed signals from his administration, including comments from Treasury Secretary Scott Bessent, suggest extensions are “highly likely” for countries negotiating in good faith, such as India and the EU. Only a few trade deals, including with the UK, China, and Vietnam, have been finalized, far short of the administration’s goal of 90 deals.

If the deadline is not extended, tariffs could revert to higher rates, potentially causing economic disruption. If the 90-day pause on “reciprocal” tariffs expires without extension, tariffs ranging from 10% to 50% could be imposed on numerous countries. This could increase costs for imported goods, disrupt supply chains, and raise prices for U.S. consumers, particularly for electronics, clothing, and food.

Countries like Canada, Mexico, and the EU may retaliate with their own tariffs, as seen in past trade disputes (e.g., 2018 steel and aluminum tariffs). This could harm U.S. exporters, especially in agriculture and manufacturing. Higher tariffs could fuel inflation, with estimates suggesting a 2-3% price increase for affected goods. Stock markets may see volatility, as seen in recent X posts expressing investor concerns over tariff uncertainty.

Only a few countries (UK, China, Vietnam) have secured trade deals, far from the administration’s goal of 90. Without extensions, countries negotiating in good faith (e.g., India, EU) may face punitive tariffs, potentially stalling talks. Trump’s stance could pressure countries to concede to U.S. demands, but it risks alienating allies, complicating future diplomacy. U.S. businesses reliant on imports face planning challenges, with some already stockpiling goods, as noted in recent web reports on supply chain adjustments.

Higher tariffs could disproportionately affect lower-income households, increasing costs for everyday goods. Trump’s base and some Republicans view the tariffs as a tool to protect U.S. industries and reduce trade deficits. X posts from pro-Trump accounts praise the hardline stance, citing it as a way to “bring jobs back.” Democrats, some Republicans, and business groups (e.g., U.S. Chamber of Commerce) argue tariffs will raise costs and harm consumers. Critics on X highlight potential job losses in import-dependent sectors and warn of economic fallout.

Allies like the EU and Canada express frustration, with EU officials on X urging for extensions to continue talks. Meanwhile, strategic rivals like China, which secured a deal, may gain relative economic stability. Countries without deals, particularly in Africa and Latin America, face higher tariffs, potentially exacerbating economic challenges, as noted in web analyses of global trade impacts. Domestic manufacturers in protected industries (e.g., steel, autos) may benefit short-term from reduced foreign competition.

Retail, tech, and agriculture sectors, reliant on imports or exports, face higher costs and retaliatory tariffs. Treasury Secretary Scott Bessent’s comments about “highly likely” extensions for some countries contrast with Trump’s firm stance, creating confusion. This inconsistency, noted in recent web reports, fuels market and diplomatic uncertainty. If extensions are granted selectively, it could deepen divides between countries with deals and those without, reshaping global trade alliances.

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