Public Keys: Ethereum Reserves Surge, Bitcoin ETFs Face $1 Billion Decline, Rumblings of Crypto IPOs

Public Keys is a weekly roundup from Decrypt that monitors key publicly traded cryptocurrency companies.

Dove’s Wings

Cryptocurrency stocks, along with the wider stock market, are experiencing a significant uptick, thanks to Federal Reserve Chair Jerome Powell’s dovish remarks during the Jackson Hole Symposium.

Traditionally, crypto and equities tend to rise when the Fed lowers rates, prompting a shift of funds from treasury bonds to riskier assets.

In his address, Powell noted that “shifting balance of risks may warrant adjusting our policy stance.” Thus, he opened the door for a possible rate cut during the Federal Open Markets Committee’s next meeting in September.

Shares of crypto exchange Coinbase rose about 6%, while Bitcoin hoarder Strategy increased by 5% on the same day—a pleasant recovery from earlier losses.

However, it was Bitcoin miners and Ethereum treasury companies that thrived. The two largest Ethereum treasuries—previous Bitcoin miner BitMine Immersion and online gambling marketer SharpLink—saw gains of 12% and 15.6%, respectively.

Canaan, a manufacturer of Bitcoin mining rigs, saw its stock climb 12%, while Bitcoin miners Riot Platforms and Iris Energy gained 7.7% and 9.3%, respectively.

Katalin Tishhauser, head of research at Sygnum Bank, remarked that while the crypto markets reacted swiftly and positively to the news, she cautioned that underlying economic indicators still reflect some turbulence.

“Even if a September cut doesn’t occur, the market has shown resilience in overcoming past disappointments while still achieving new heights. Momentum may persist, albeit with increased volatility,” she told Decrypt. “At the same time, escalating debt and rising inflation remain unresolved structural challenges—elements that bolster the appeal for safe-haven assets in the long run.”

Bleeding $1 Billion

Bitcoin ETFs have experienced five consecutive days of losses, shedding $1 billion, even as their Ethereum counterparts made a comeback. On Thursday, Ethereum funds halted the downturn and attracted $288 million in net deposits.

Ethereum’s prominence in the current market narrative is well justified, according to the latest insights from M31 Capital.

The private equity and venture capital fund highlighted that infrastructure, DeFi, L1 and L2 networks, and Web3 companies were all performing well—and all surpassed Bitcoin.

Nonetheless, only a new all-time high for BTC could match last week’s record-setting surge to $124,128.

Figure on the Launchpad

As Bullish celebrates its $1.15 billion debut, another crypto company is poised to take flight.

Blockchain lender Figure Technologies has initiated paperwork for an initial public offering.

It’s essential to clarify what Figure does, considering the historical context of crypto lenders: Figure’s platform facilitates lending beyond traditional crypto markets, such as in real estate.

The company asserts it is the largest non-bank provider of home equity lines of credit in the U.S., with its software accounting for over $16 billion in home loans.

Illia Otychenko, lead analyst at CEX.IO, mentioned to Decrypt earlier this week that the company “dominates the tokenized private credit market, holding more than 70% market share and managing over $11 billion in active loans on its Provenance blockchain.”

Figure was co-founded by Mike Cagney, SoFi’s co-founder and former CEO, who left the bank in 2017 amidst sexual harassment allegations. The IPO marks his return to the helm of a publicly traded firm.

“This IPO is one phase in a long journey to integrate blockchain into all facets of capital markets,” he said in the company’s SEC filing. No announcements regarding share pricing have been made yet.

Additional Notes

Timber: Nasdaq has delisted drug manufacturer Windtree Therapeutics, which announced last month intentions to acquire $700 million in Binance’s BNB token. The company reported in an SEC filing that its shares ceased trading on Nasdaq for not meeting the required minimum bid price of $1 per share.

USA Production: Bitcoin miner Bitdeer has confirmed plans to start manufacturing mining rigs in the U.S. this year. This announcement comes as two of its rivals—Iris Energy and CleanSpark—have received notices from U.S. customs demanding millions in tariffs on Chinese-manufactured rigs procured in 2024.