(qlmbusinessnews.com . Tue 7th Oct, 2025) London, UK —
Historic $5.95 Billion Crypto Fund Influx: Market Confidence Soars Despite US Shutdown Fears
Today's financial news brings significant developments from the European Union as it takes strides to bolster its regulatory control over the burgeoning digital asset sector, alongside noteworthy movements in the cryptocurrency investment landscape.
European Union Set to Enhance Crypto Regulation Under ESMA Framework
The European Union is poised to enhance its oversight of cryptocurrency exchanges and other digital asset companies, aiming to create a more cohesive financial ecosystem across the member states. Verena Ross, the Chair of the European Securities and Markets Authority (ESMA), shared with the Financial Times that the European Commission is formulating a strategy to transfer regulatory authority of the crypto sector and other financial sectors from individual nations to the ESMA.
This initiative is expected to bridge the regulatory discrepancies across the EU, especially with the implementation of the Markets in Crypto-Assets (MiCA) framework. Unlike the current regime where licences are allocated by national authorities, the shift proposes a centralised EU body to issue these licences. Ross accentuated that this move would mitigate the fragmentation in market regulation, propelling the EU towards a more integrated financial arena that stands competitive on a global scale.
Record Crypto Fund Inflows Amid US Government Shutdown Fears
In another highlight, cryptocurrency investment products witnessed unparalleled inflows, attributed to the apprehensions surrounding the US government shutdown. Last week, the global crypto exchange-traded products (ETPs) saw an influx of $5.95 billion, marking the largest inflow recorded to date, according to CoinShares. This surge overshadows the previous record by 35%, emphasizing the growing investor confidence in digital assets amidst political and economic uncertainties.
Bitcoin led the gains, drawing in a historic $3.6 billion, while Ether ETPs and other cryptocurrencies like Solana and XRP also saw significant inflows. Experts attribute this to a compounded reaction to the Federal Open Market Committee's interest rate cut, weak employment data, and the looming doubts over US governmental stability.
The GENIUS Act: A Potential Game-Changer in Banking
The GENIUS Act, primarily focusing on stablecoins, has sparked discussions on its potential to disrupt traditional banking. Tushar Jain, co-founder and managing partner of Multicoin Capital, voiced on X that the legislation could significantly diminish the banking sector's grip over retail depositors by offering competitively higher yields on stablecoins.
Jain anticipates a shift where technology giants might leverage their expansive distribution networks to rival banks, providing customers with superior yields on stablecoins, coupled with a seamless user experience featuring instant transactions and round-the-clock payment services. He highlighted the banking industry's apprehensions over this shift, noting their calls to regulators to examine stablecoin issuers' ability to offer interest or yields through affiliates.
Today's financial news underscores the dynamic evolution of the cryptocurrency and digital asset landscape, reflecting both the opportunities and challenges posed by regulatory changes and market trends.
This News Story is brought to you by QLM Business News, your Digital Media Channel.
Visit QLM businessnews.com for more business news stories. Also follow us on Facebook, X, and Youtube.
To help QLM Business News bring you more news stories like this, please like, share, and subscribe.
Unlock unparalleled business growth and effortlessly attract a stream of new customers through QLM Business News Sponsored Advertising. Elevate your brand's presence and captivate your target audience with precision. Visit QLMbusinessnews.com and click on “Advertise” to harness the power of strategic advertising. Don't miss this unparalleled opportunity to propel your business to new heights of success!
Disclaimer: All images presented herein are intended solely for illustrative purposes and may not accurately depict the true likeness of the subjects, objects, or individuals referenced in the accompanying news stories.
