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Crypto News Today: $950M XRP Sell-Off, Grayscale Debuts Staking ETPs, Bitcoin ETFs See Record Inflows, Morgan Stanley Endorses Crypto

Crypto Market Update: $950M XRP Sell-Off, Grayscale’s Staking ETPs, $3.2B Bitcoin ETF Inflows, Morgan Stanley’s Crypto Endorsement, and China Financial Raising $11 Million

Written By : Bhavesh Maurya
Reviewed By : Shovan Roy

Overview

  • Over $950 million worth of tokens were moved to exchanges, dragging the price below key support levels and weakening short-term momentum.

  • Grayscale introduces the first US staking ETPs for Ethereum and Solana, while US Bitcoin ETFs record $3.24 billion in weekly inflows.

  • Morgan Stanley includes digital assets in portfolio guidance as China Financial Leasing Group plans a crypto-AI investment venture.

The global cryptocurrency market started the week on a mixed note as heavy selling in XRP brought down sentiment, but institutional flows into Bitcoin and Ethereum were strong through new exchange-traded products (ETPs) and ETF inflows. Meanwhile, regulatory tensions resurfaced after reports of a Russian state-backed crypto network enabling billions of cross-border payments.

XRP Faces Pressure After $950 Million Weekly Sell-Off

Ripple’s native token, XRP, has come under selling pressure after a failed breakout attempt near the $3 mark.

The token fell to $2.96, down over 1.56% in the last 24 hours, after $950 million worth of XRP was moved to exchanges within a week, roughly 320 million tokens signaling aggressive profit-taking by large holders.

Analysts noted that long-term investors joined the sell-off. XRP is currently testing critical support around $2.94, with traders watching for support at $2.85.

If bulls defend this level and take back $3.0,2 we may see a move toward $3.12. However, failure to sustain support would likely push the token lower to $2.75.

Grayscale Launches US Spot Crypto ETPs with Staking

Grayscale Investments launched the first US-based spot crypto ETPs with staking for Ethereum (ETH) and Solana (SOL). The launch expands institutional access to yield-generating digital assets within a regulated framework.

This will now include the Grayscale Ethereum Trust ETF (ETHE), the Ethereum Mini Trust ETF (ETH), and the Grayscale Solana Trust (GSOL).

These products aim to combine long-term price exposure with staking rewards. Early estimates show more than 40,000 ETH already staked within ETHE, offering an annualized yield of roughly 2.06%.

Grayscale CEO Peter Mintzberg said the initiative reinforces the company’s “first-mover advantage” in regulated digital assets. Market observers believe this could encourage broader participation among institutions seeking yield diversification.

Also Read: Is a Big Ethereum Price Rally Coming Due to $11 Billion in Shorts?

Russia’s Sanctioned Crypto Network Processes $6 Billion in Stablecoin Transactions

Regulatory alarms were triggered after reports revealed that a Russian state-backed crypto network, known as A7, moved over $6 billion through its A7A5 stablecoin after facing US sanctions.

Investigations show the token’s administrators destroyed and re-minted 80% of its supply to erase links with sanctioned wallets, primarily tied to Grinex, a Moscow-based exchange accused of laundering funds.

The A7A5 coin operates on Tron and Ethereum, backed 1:1 with the ruble via Promsvyazbank, a sanctioned Russian state lender.

The A7 network, having processed $86 billion in just 10 months, is already moving beyond Russia into Africa and more friendly jurisdictions like Kyrgyzstan. Analysts are warning that this could turn into a parallel global payments system to evade Western financial controls.

US Bitcoin ETFs Record $3.24 Billion Weekly Inflows

US spot Bitcoin ETFs logged their second-largest weekly inflow ever, attracting $3.24 billion in inflows. The surge reversed a prior week’s $902 million outflow and reignited bullish sentiment as Bitcoin prices broke above $125,000.

BlackRock’s iShares Bitcoin Trust (IBIT) dominated the action, capturing $1.8 billion of the total and boosting its assets under management to $96.2 billion. Rival Fidelity’s FBTC saw $692 million in inflows, while other ETFs contributed the remainder.

On Friday, nearly $985 million was added in inflows, the second-highest single day since January 2024.

Analysts say the renewed interest is tied to expectations of further US government shutdowns, pushing investors toward safe-haven assets such as Bitcoin and gold.

Also Read: Bitcoin Price Surges Past $125,000 Amid Record ETF Inflows

China Financial Leasing Group to Raise $11 Million for Crypto-AI Platform

China Financial Leasing Group's Hong Kong-listed company is planning to raise HK$86.7 million ($11.1 million) through the placement of shares to Innoval Capital to set up a new investment platform for crypto and AI. 

The company stated that it will invest in digital asset exchanges, stablecoins, and DeFi businesses, and incorporate AI to manage the assets. The initiative aligns with Hong Kong’s progressive stance on digital finance.

Innoval Capital is led by Antalpha CEO Moore Xin Jin, whose fintech company manages over $1.6 billion in assets. The announcement sent China Financial Leasing’s stock up 25% to HK$1.25, giving it a market cap of HK$555 million ($71.3 million) as of Monday afternoon.

Morgan Stanley Endorses Crypto in Portfolio Strategy

Morgan Stanley’s Global Investment Committee formally recommended limited crypto exposure in diversified portfolios.

The bank advised up to 4% allocation for high-risk investors and 2% for balanced growth portfolios, calling digital assets an “emerging alternative” with long-term potential.

The guidance, which reaches approximately 16,000 financial advisors managing $2 trillion in client assets, symbolizes a turning point for Wall Street's perception towards crypto.

This is a big step toward taking digital assets mainstream in the professional wealth management space, analysts said.

FAQs:

1. Why did XRP’s price decline this week?
Over $950 million worth of XRP was transferred to exchanges, leading to heavy profit-taking and downward pressure on prices.

2. What are Grayscale’s new staking ETPs?
Grayscale launched US spot ETPs for Ethereum and Solana that combine price exposure with staking rewards for institutional investors.

3. How much money flowed into Bitcoin ETFs last week?
US spot Bitcoin ETFs attracted $3.24 billion in inflows, marking their second-largest week since launch.

4. What is Morgan Stanley’s new crypto stance?
Morgan Stanley now recommends a crypto allocation of up to 4% in high-risk portfolios and 2% in balanced growth portfolios.

5. What is China Financial Leasing Group’s crypto initiative?
The company will raise $11 million to build a crypto-AI investment platform, integrating blockchain and artificial intelligence technologies in Hong Kong.

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