Crypto Market Faces Turbulence as ETFs Launch and CFTC Leadership Changes Take Center Stage
The global crypto market slipped 1.73% in the last 24 hours, breaking its recent weekly uptrend of 2.81%. The pullback comes amid a wave of deleveraging in derivatives and broader economic uncertainty, as traders unwind leveraged positions and risk appetite declines.
Bitcoin (BTC) dipped slightly to around $113,000, while Ether (ETH) hovered near $4,000, signaling a temporary pause in the market’s bullish momentum. Open interest across major exchanges dropped by 5.98%, with over $20 billion in liquidations adding fuel to the market’s volatility.
Altcoins bore the brunt of the decline, as Bitcoin’s dominance climbed to 59.07%, reflecting a capital rotation back into blue-chip assets. Despite the cautious sentiment, Hedera (HBAR) stood out—posting a 10% gain amid broader market weakness.
New Solana ETFs Launch This Week Amid Growing Institutional Demand
In a major development, several new crypto exchange-traded funds (ETFs) are set to debut this week, including the Bitwise Solana Staking ETF (BSOL) and Grayscale Solana ETF (GSOL).
These launches mark another milestone in institutional adoption, as investors seek regulated vehicles to gain exposure to crypto assets. The U.S. Securities and Exchange Commission (SEC) has reportedly streamlined its ETF approval process, adjusting filing language to reduce delays—a sign of growing regulatory maturity around digital assets.
Michael Selig Nominated as Next CFTC Chair
Adding to the week’s regulatory headlines, Michael Selig, a senior official at the SEC, has been nominated by President Donald Trump to become the next Chair of the Commodity Futures Trading Commission (CFTC).
Selig has previously emphasized the importance of clear crypto regulations, pledging to modernize oversight frameworks if confirmed by the Senate. He would replace Acting Chair Caroline Pham, who is set to depart once a successor is confirmed.
This nomination comes as the CFTC faces a leadership gap following Commissioner Kristin Johnson’s departure in September, leaving the agency partially staffed. Analysts view Selig’s appointment as a pivotal step toward strengthening the U.S.’s bid to position itself as a global crypto hub.
Crypto Funds See $921M Inflows as Investor Sentiment Rebounds
Despite short-term volatility, investor confidence in digital assets has surged. According to CoinShares, crypto investment products recorded $921 million in inflows last week—fully reversing recent outflows.
The renewed optimism follows U.S. inflation data showing a softer-than-expected 3% annual Consumer Price Index (CPI), boosting hopes that the Federal Reserve could implement another interest rate cut soon.
Bitcoin benefited the most, attracting $931 million in new investments. Meanwhile, Ether saw $169 million in outflows—its first in five weeks—though leveraged Ether ETFs remain popular, reflecting ongoing speculative interest in Ethereum’s ecosystem.
Australia’s Crypto Industry Calls for Clearer Regulation
In Australia, the digital asset industry has pushed back against the government’s draft crypto legislation, which expands financial regulations to cover digital assets.
While the move has been largely welcomed, industry veterans argue that the proposal lacks clarity on key issues such as international liquidity access and new licensing structures.
Caroline Bowler, former CEO of BTC Markets, emphasized that the current draft leaves “too many unanswered questions” about compliance and consumer protection.
Vakul Talwar of Crypto.com echoed these concerns, urging the government to deliver precise and practical guidelines. Lawmakers are expected to refine the bill, with a final version anticipated by March 2025.
Conclusion
With ETF launches, regulatory nominations, and shifting investor sentiment all unfolding simultaneously, the crypto market stands at a crossroads. The coming weeks could determine whether institutional momentum offsets short-term volatility—or if cautious investors pull back amid tightening oversight and global uncertainty.