In brief
- New XRP and DOGE ETFs have emerged from Rex-Osprey, coinciding with the SEC simplifying requirements for listing trust shares backed by commodities.
- Forward Industries now holds the title of Solana’s first billion-dollar treasury entity, while Helius is strategizing a $500 million fundraising effort specifically for a SOL treasury.
- KindlyMD’s stock value plummeted by 54% following the filing of an S-3 registration, which unlocked $200 million worth of discounted shares, resulting in substantial selling activity.
“Public Keys” is Decrypt’s regular rundown on the financial performance of publicly traded crypto companies.
Altcoin Season Potentially Ahead
While altcoins weren’t specifically mentioned in the official SEC announcement, crypto ETF contenders are rapidly getting ready to enter the race. The US Securities and Exchange Commission (SEC) has issued a public statement simplifying generic guidelines for shares backed by commodities, so long as ETF applications meet the listing requirements of exchanges like Nasdaq, Cboe BZX, and NYSE Arca, they can skip applying for individual fund rule changes.
This regulatory change wasn’t universally welcomed, however. Commissioner Caroline Crenshaw expressed concerns on Wednesday, noting the revised protocol essentially “delegates” crucial investor safety evaluations, favoring speed over careful assessment of these emerging investment products.
Rex-Osprey is among the first movers, introducing both the Rex-Osprey XRP ETF and the Rex-Osprey DOGE ETF. The firm also aims to launch a leveraged product, the Rex-Osprey DOJE Growth & Income ETF, targeted toward traders looking for higher risk and return scenarios.
Although details on fees are still pending, the goal is to make weekly payments through selling call options. The ETF seeks to mirror 1.05 to 1.5 times the daily movement of its recently launched DOJE Dogecoin ETF, resetting the leverage each day. This is specifically designed for short-term traders and not for long-term holding.
Dogecoin initially surged to $0.28 following this positive news, but those gains have since diminished. Currently, DOGE has fallen by over 5%, now priced at around $0.26.
Kindly’s Stock Performance
CEO David Bailey of KindlyMD highlighted potential investor departures, noting possible short-term volatility, on Monday. That day, the company’s share values dropped substantially to $1.26, a decrease of 54%. The situation hasn’t improved significantly since Friday’s market close.
Shares, under the ticker NAKA on the NasdaqGM, closed the day at $1.40, representing a 6% decrease within the last day and an 87% decline over the previous month.
This transformation into a Bitcoin treasury company followed the merger with Nakamoto Holdings earlier in the year. A $200 million PIPE deal provided the financial foundation for its BTC treasury vision; however, the discounted shares issued during this round were locked until the S-3 registration with the SEC was completed.
Once the registration became effective, $200 million in discounted shares were released, exerting significant downward pressure on the stock price.
Bailey, displaying his customary optimism, found a potential benefit.
“The stock’s lower price means new investors can join us at a cheaper rate,” he stated on X. “We’ve seen considerable volume, and after a couple more days like yesterday, we should have realigned our shareholder base with committed supporters.”
Grayscale has also listed its Digital Large Cap Fund, following months of regulatory back-and-forth with the SEC. Trading under the GDLC ticker, the fund comprises a mix of XRP, Solana, Cardano, Bitcoin, and Ethereum.
Spotlight on Solana Treasuries
Solana saw its first billion-dollar treasury company emerge, which marked a significant turning point for the future of SOL digital asset treasuries.
On the same day Forward Industries surpassed the billion-dollar mark, Helius announced intentions to raise $500 million to create their own Solana treasury.
Two days later, Forward Industries announced an at-the-market offering to raise an additional $4 billion in cash for acquiring more SOL. Successfully raising this capital and investing the majority in Solana tokens could more than double the existing $3.1 billion held by publicly traded firms.
Furthermore, on Thursday, Marco Santori, former Kraken legal officer, assumed the role of CEO at Solmate, which was recently rebranded as Solana treasury Solmate. This firm debuted as a digital asset treasury by revealing a $300 million fundraising round, resulting in a 500% surge in its stock value.
While these developments have generally been favorable for SOL, they weren’t enough to prevent it from succumbing to the widespread downturn in the crypto market. At the time of this writing, Solana has fallen 4% since Thursday, trading at around $238.
Other Key Developments
BitLicense boost: Bullish, following its recent IPO, experienced a share price increase after receiving a BitLicense from the New York State Department of Financial Services. This authorization allows them to operate as a digital asset trading and custody provider within New York, supporting broader U.S. expansion efforts.
Modest Acquisition: Strategy added $60 million worth of Bitcoin to its treasury holdings this week, marking its smallest purchase in a month. Strategy allocated $60 million on Bitcoin. Although it has generated roughly $68.2 million through various preferred stock issuances, the business only spent $60.2 million on Bitcoin, leaving it with approximately $8 million in surplus cash.
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