Hyperliquid ETF Draws $153M in First Month as TAO Jumps 30%, Fed Meeting Looms

Crypto News Tokyo-listed Datachain has opened an early launch-partner program for KuraPrivacy, an enterprise on-chain privacy platform built for stablecoin settlement, with ten firms signing on at the outset. The company frames the system around the requirements businesses need before they can move regulated value on public chains: AML and CFT compliance, audit readiness, and flexible multi-party key management with recovery. Partners will jointly develop and test a corporate wallet featuring passkey authentication and workflow approvals, alongside a remittance application. Datachain, a subsidiary of standard-listed Speee, says the platform has cleared testnet checks and will ship APIs and SDKs so payment and wallet operators can embed privacy features directly into their own services. Pudgy Party, the mobile battle-royale game themed on the Pudgy Penguins NFT collection, shut down on Friday less than a year after its global release, with downloads pulled from both iOS and Android. Co-developed with Mythical Games and launched last August, the title blended a casual party format with tradable in-game NFT items and logged millions of downloads. Chief executive Luca Netz reportedly told the community the project absorbed several million dollars in losses, and the team is now redirecting resources to Pudgy World. The closure extends a run of blockchain-game shutdowns, including Deadrop, Nyan Heroes and MetalCore, as venture funding for the sector continues to thin and players drift away. Asteria has formalized a wallet framework for JPYC Gateway, its enterprise service for managing the yen-pegged stablecoin JPYC, which launched in April. The company introduced two tiers: a standard wallet built on Fireblocks Dynamic, and four certified software options including MetaMask, Fireblocks, HashPort Wallet and N Suite. On the hardware side, the domestically built Openloop wallet earned certification and will be offered free to the first 100 companies, letting firms hold JPYC fully offline. JPYC, issued under Japan’s revised Payment Services Act and designed at one-to-one parity with the yen, requires a wallet equivalent to a bank account, a gap this certification scheme aims to close for corporate users. Hyperliquid’s US spot ETFs have completed their first month of trading, drawing roughly $153 million in net inflows across three products and pushing combined net assets to about $170 million. Research cited at launch flagged the funds as one of the strongest crypto ETF debuts on record, absorbing capital equal to more than 1% of HYPE’s market value within ten trading days. Notably, the products often post inflows on days when Bitcoin and Ethereum ETFs bleed, suggesting they are catching rotating capital. The draw rests on Hyperliquid’s position as a decentralized exchange, its fee model where an Assistance Fund buys and burns HYPE, plus staking-reward share classes. A US national-security order directing Anthropic to suspend access to its latest models for foreign nationals, which the company extended to all users to comply, has sharpened demand for decentralized AI tokens. Bittensor’s TAO climbed about 30% in the twelve hours after access was cut, reaching a three-week high near $283 as users sought alternatives outside centralized control. Research desks framed the episode as evidence that frontier AI access is becoming a gated economic resource, strengthening the case for open, permissionless networks. The move underscored how quickly regulatory action on AI can ripple into crypto markets, lifting a specific altcoin theme even amid broadly defensive conditions. Attention now turns to Kevin Warsh’s first Federal Reserve meeting, with markets pricing a near-certain hold at 3.50% to 3.75% but watching the updated dot plot for the real signal. May CPI printed at 4.2%, lifted largely by energy as conflict around the Strait of Hormuz pressured oil, and prediction markets put the odds of at least one 2026 rate hike at 50% to 65%. A hawkish projection, or the removal of an easing bias from the statement, could tighten liquidity and weigh on risk assets. Warsh, who divested all crypto holdings before taking office, has also signaled he intends to communicate far less than his predecessor. Taken together, these threads trace a market building rails while bracing for macro shocks: enterprise privacy and stablecoin infrastructure advance in Japan, capital rotates into niche ETFs and decentralized-AI tokens, even as a hawkish Fed and a contracting game sector test risk appetite. COINOTAG’s aggregate data captures that tension, with the Fear and Greed Index sitting at 23, deep in Extreme Fear, while Bitcoin dominance holds at 69.6% and total crypto market capitalization stands near $1.92 trillion, signaling capital huddling in majors. With Bitcoin trading around $67,000, the defensive posture and concentrated leadership echo conditions that historically precede a broader bear market before any decisive rotation back into altcoins.