Crypto ETF outflows, Durov speaks, Harris vs. Trump | Weekly Recap

Spot crypto ETFs recorded multiple outflows; Telegram’s Pavel Durov talks arrest; Ripple co-founder backs Kamala Harris ahead of her debate with Donald Trump.

Crypto ETF outflows

• Last week, the spot crypto market witnessed sustained bearishness. The spot Bitcoin (BTC) ETFs recorded a cumulative weekly net outflow of $706.1 million, with four out of five days of net outflows.

• While outflows from spot Ethereum (ETH) ETFs slowed, the market remained red. By the end of the week, ETH ETFs saw $91.1 million in cumulative net outflows, also recording four bearish days out of five.

Market turbulence 

• One of the primary triggers of the ETF outflows last week was a prevalent bearish crypto market. Following a drop in the U.S. stock market, cryptocurrencies saw declines, with Bitcoin dropping below $53,000 for the first time in a month.

• Consequently, on-chain data confirmed that liquidations crossed $295 million across multiple assets as of Sept. 7 — the largest figure this month. 

• Crypto-related venture capital funds are ballooning; per PitchBook, the average size is up 65.1%, to $41.3 million, in 2024.

Durov speaks

• Following his arrest and release in France, Telegram founder Pavel Durov spoke for the first time last week, calling out the authorities for their perceived overreach when it came to communication. 

• Durov further defended Telegram’s policies, arguing that the social media platform constantly removes illegal content and doesn’t operate in regions that cannot meet its required standards. 

• Durov is currently under formal investigation over suspected complicity in allowing illicit activity to flourish on Telegram.

US politics

• Republican presidential candidate Donald Trump extended his lead over Vice President Kamala Harris on Polymarket; at last check Sunday, he’s ahead 52% to Harris’ 46%.

• Also, the X accounts of two of Trump’s family members were hacked and used to promote a fake Solana-based memecoin. The incident stemmed from the rollout of a DeFi platform run by Trump’s eldest sons.

• Harris, meanwhile, secured the endorsement of 88 business executives — one of them being Ripple (XRP) co-founder and chairman Chris Larsen. The highly anticipated debate between Harris and Trump is slated for Tuesday, Sept. 10.

Smart contracts on the XRPL 

• After over a decade, reports from last week confirmed that the XRP Ledger would soon welcome programmability.
  
• Ripple plans to enable this through native smart contracts and the EVM sidechain currently in development.