The emergence of digital assets continues to drive significant developments in finance and technology. Here, Fidelity International provide key updates and resources to keep you informed about the latest developments in this rapidly evolving space.
Bitcoin traded within a relatively narrow range during the first half of August, largely between $62,000 and $65,000, before breaking sharply higher toward the $80,000 level later in the month and ending at around $78,854.
This represented a monthly gain of 25.4%, marking Bitcoin’s strongest monthly return so far in 2026. The move was initially amplified by a significant short squeeze, with close to $1.4 billion of short positions in Bitcoin liquidated in a single day, contributing to one of the largest short liquidation events on record.
Investor sentiment improved rapidly alongside the rally, with the Crypto Fear & Greed Index moving from the “Fear” to “Greed” region abruptly after the breakout.
Risk appetite was also supported by announcements of increased long-end Treasury buybacks, which may provide a more favourable near-term liquidity backdrop for risk assets. Total crypto market capitalisation stood at approximately $2.7 trillion.
US spot Bitcoin and Ethereum ETF flows strengthened materially in August, reversing the softer demand seen earlier in the year.
US spot Bitcoin ETFs recorded approximately $3.3 billion in net inflows over the month, marking their strongest monthly inflow in 2026. US spot Ethereum ETFs also recorded their strongest monthly inflow of the year at approximately $1.8 billion, bringing year-to-date flows back into positive territory.
Global digital asset regulation continued to progress in August. In the US, the CLARITY Act remained pending, with Senate consideration deferred until after the August recess.
In parallel, the SEC submitted proposed amendments to its custody rules for White House review, aimed at clarifying the regulatory framework for the custody of digital assets by investment advisers and investment companies.
In Europe, the European Commission continued its review of MiCA, seeking stakeholder feedback on areas not fully covered by the existing framework, including decentralised finance and crypto lending and borrowing.
Meanwhile, in Asia, Thailand’s SEC advanced its framework for locally listed crypto ETFs from proposed principles to draft regulations, while also revising its approach to the use of qualified foreign digital asset custodians by investment funds.
To look at digital assets further or read Fidelity International’s full market update, head here: Find out more about digital assets
Past performance is not a reliable guide to future returns. You may not get back the amount originally invested, and tax rules can change over time. The writer’s views are their own and do not constitute financial advice.
This information should not be relied upon by retail clients or investment professionals. Reference to any particular investment does not constitute a recommendation to buy or sell the investment.
Main image: crypto, kanchanara-GnWfl_nnZro-unsplash
