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It’s Tuesday, folks. Ben shares why more crypto ETFs might not be launching so soon. Still, the filings for new products aren’t stopping. 

And what’s the latest on all that tariff stuff? Casey’s been monitoring it for you. Let’s do it:

More crypto ETFs coming soon?

Let’s take a few minutes to address the latest developments in crypto ETF land. 

Yesterday, the SEC delayed its decision on Fidelity’s spot solana ETF proposal. Not surprising — but a reminder there’s more the regulator needs to sort out before approving those.

The SEC’s engagement with issuers last month spurred optimism of possible ahead-of-schedule rulings (before October deadlines). And I confirmed with a person close to the filings that the SEC got back to the asset managers about their latest amendments — giving them until July 31 to respond to the agency’s new questions about “how the product will be structured.”

But that person also told me the SEC could very well be waiting to develop the anticipated “generic listing standards” before greenlighting SOL funds. Though SEC staff has asked exchanges to offer feedback on those drafts, the person said, their current expectation is for those to come closer to (or in) October — not sooner. 

No one I’ve spoken to is particularly confident on timelines given we’re essentially in uncharted territory. It’s worth noting, however, that SEC Commissioner Hester Peirce has urged patience on several occasions. So I doubt the SEC will rush to judgment. 

Switching gears, I had written about the SEC last week approving NYSE Arca’s 19b-4 to list the Grayscale Digital Large Cap Fund (GDLC) on its exchange as an ETF.  

But a corresponding July 1 letter — from the SEC’s deputy secretary to NYSE Group’s senior counsel — said that order was “stayed” until the regulator says otherwise.  

In case you missed it, a Grayscale spokesperson told me: “While this development was unexpected, it reflects the dynamic and evolving nature of the regulatory landscape surrounding a first-of-its-kind digital asset product like GDLC.”

The firm is still pursuing the GDLC listing. Just as Bitwise still looks to convert its Bitwise 10 Crypto Index Fund (BITW) to an ETF and Hashdex wants to add assets to its Nasdaq Crypto Index US ETF (NCIQ).  

We don’t have an update on the Bitwise and Hashdex proposals. So we’re in a bit of a holding pattern.

That didn’t stop Yorkville America Digital (in partnership with Trump Media and Technology Group) from filing for a Truth Social Crypto Blue Chip ETF on Tuesday. That fund’s expected holdings would be bitcoin (70%), ether (15%), solana (8%), cronos (5%) and XRP (2%). 

A spokesperson did not immediately comment on the rationale behind those proposed allocations (or cronos’ inclusion), though we do know Crypto.com (a partner of Trump Media) developed the Cronos blockchain. CRO’s market cap this morning ranked 44th among crypto assets, according to CoinGecko.

To summarize, the paperwork progress hasn’t yet led to launches. Well, except for the REX-Osprey SOL Staking ETF (a product structured differently than traditional crypto trusts). 

As for the spot crypto ETFs trading, the US bitcoin products have been on an inflow tear. Those funds have seen net inflows on 18 of the last 19 trading days (totaling $5.6 billion over that span). The segment sits on the $50 billion net inflow precipice, according to Farside Investors.

What about US ETH ETF inflows from June 9 to July 7? A respectable $1.1 billion. 

Overall, we’re up to 12 straight weeks of inflows for crypto investment products, CoinShares data shows — pushing AUM to a record $188 billion. 

I’m curious what sort of demand we see for other single-asset crypto ETFs once they go live in the US. Some believe the bigger opportunity is those crypto index funds — tailored for investors who don’t want to spend the time trying to pick individual winners. 

I’d say that take makes sense, but we’ll see what the market thinks soon enough.  

— Ben Strack

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This is the annual inflation expectation priced into 10-year Treasurys, based on the TIPS market. This is slightly higher than the average over the past 18 months (2.29%). The pre-Covid average (from 2010 to 2019) was 2%. The last time expectations were this high was in 2007. 

We can glean from this that markets don’t appear too worried about tariffs or budget deficits. For now, at least.

President Trump’s sweeping Liberation Day tariffs were broadly expected to go into effect tomorrow. But things have changed. 

After seeing various updates and changes to Trump’s trade policies — both on rates and timing — we can’t say we were shocked by yesterday’s news. Traders appeared relieved by the prospect of deals, with US stocks recovering early in today’s session after dipping Monday. 

The moves come after Trump signed an executive order Monday delaying the start of all “reciprocal tariffs” (announced in April) to Aug. 1. More than a dozen countries also got updated levies. 

Imports from Japan and South Korea will have a 25% tariff. Japan’s Liberation Day rate was 24%, while South Korea’s was 25%. 

South Korea has said it plans to negotiate this figure down in the coming weeks. Japanese Prime Minister Shigeru Ishiba on Tuesday called Trump’s decision “extremely regrettable.” Even so, Ishiba hopes to come to an agreement with the US as well. 

Other countries that received letters yesterday include Malaysia, which will now face a 24% rate — vs. the 25% levy unveiled in April. In his letter to Cambodia, Trump declared a 36% rate, compared to 49% on Liberation Day. 

Wondering if Aug. 1 is a hard deadline? Trump essentially told reporters yesterday: Maybe.

“I would say firm, but not 100% firm,” he said. 

Trump is hosting a Cabinet meeting today to discuss the trade situation, among other things. He also faced questions about the war in Ukraine (“it’s turned out to be tougher”) and Fed Chair Jerome Powell (“I think he’s terrible.”) 

Check your inbox tomorrow for insights into the meeting.

— Casey Wagner