Recent changes in the cryptocurrency sector include a significant reduction in Ethereum reserves at Binance and HashKey's plans to launch a large multi-currency fund, along with Ethena Labs competing for USDH stablecoin rights.
Binance Reduces Ethereum Reserves
In September, Binance significantly reduced its Ethereum reserves, dropping from 30,475 ETH in August to just 113 ETH in early September. At ETH's current price of $4,300, this cut is valued at approximately $130.5 million. Additionally, the exchange increased its Bitcoin holdings by 3,779 BTC, raising the total to 21,256 BTC worth $419 million. The continued ETH sell-off, noticed earlier in June, may indicate liquidity rebalancing or profit-taking.
HashKey Launches Fund for Ecosystem Financing
HashKey Group announced plans to launch Asia's largest multi-currency DAT ecosystem fund with a $500 million fundraising target. The fund will focus on DAT-related projects in the Ethereum and Bitcoin ecosystems and will adopt an open-ended structure allowing regular subscriptions and redemptions. This initiative shows growing institutional interest in the ETH and BTC ecosystems. Its open-ended setup offers flexibility for investors in volatile markets, although the importance of regulatory clarity—especially with Hong Kong's 2026 Basel rules—remains critical.
Ethena Labs Competes for USDH Stablecoin Issuance Rights
Ethena Labs, issuer of the USDe stablecoin, hinted at intentions to compete for Hyperliquid's USDH issuance rights. In a playful note, Ethena reached out to Hyperliquid's co-founder referencing proposals sent last year. Hyperliquid set September 10 as the proposal deadline and September 14 for validator voting. Ethena’s interest in expanding beyond its $3.3 billion USDe underscores its ambition. However, the pursuit of USDH rights is fraught with challenges, including the need to garner validator support and navigate regulatory hurdles within the $280 billion stablecoin market.
Recent developments in the cryptocurrency space reflect the dynamic nature of the market, marked by swift changes in reserves, increasing institutional interest, and rising competition among stablecoin issuers.
