Jim Cramer Says Buy Crypto; XRP, SOL, ADA, DOGE, and LTC Face ETF Withdrawals; $154 Million XRP Trade Ends in Disaster — Crypto News Digest

SEC pushes back on altcoin ETF filings ahead of new standards

ETF issuers are set to start withdrawing their XRP, SOL, ADA, DOGE, and LTC filings as early as this week.

• Regulatory move. The SEC has asked ETF issuers to withdraw 19b-4 filings for proposed XRP, LTC, SOL, ADA, and DOGE ETFs.

The U.S. Securities and Exchange Commission (SEC) has reportedly asked exchange-traded fund (ETF) issuers to withdraw their 19b-4 filings for XRP, Litecoin (LTC), Solana (SOL), Cardano (ADA), and Dogecoin (DOGE) ETFs. 

This comes after the SEC recently approved new generic listing standards for commodity-based ETFs, including cryptocurrency-based ones. Issuers will start withdrawing their applications as early as this week, meaning that it is only a matter of time until such ETFs will become publicly tradable. 

• Why it matters. The SEC isn’t rejecting altcoin ETFs outright—it’s reshaping the approval path to fit the updated regulatory framework.

Normally, each ETF has to be approved under Section 19(b) of the Securities Exchange Act of 1934. The approval process is usually lengthy and daunting. Now, however, if a certain product meets specific eligibility criteria, it can secure a much-coveted listing at a much faster pace. Such commodities are supposed to have CFTC-regulated futures contracts (among some other requirements). 

XRP bet ends in disaster for Hyperliquid trader

A wallet was left with $785,000 after massive XRP liquidation.

• What happened. Trader "qwatio" took on a $154 million leveraged short on XRP while also running a 40x short against Bitcoin.

Trader known across crypto circles as "qwatio" has officially blown up on Hyperliquid after going all-in with leverage that left no room for error. 

What began as a $154 million XRP short position, as per Onchain Lens, layered on top of a massive 40x bet against Bitcoin, turned into a spectacular loss of $3.44 million in just a matter of a weekend. 

• The blowup. Over the weekend, XRP edged past key levels, triggering liquidation.

The setup looked reckless from the start. Using $7.5 million in margin to control 2.78 million XRP, the trader went 20x short at around $2.71 per token, just as the market hovered near the $2.70 support. The danger zone was clear: liquidation would hit at $3.06. That is only a 13% cushion, and in crypto, 13% is a weekend swing. 

Jim Cramer tells followers to buy crypto as U.S. debt hits $37.6T

The crypto community was stunned.

• What happened. Jim Cramer urged followers on X to buy cryptocurrencies, pairing the advice with an image of the U.S. National Debt Clock.

CNBC anchor Jim Cramer recently took to the X social media network to recommend that his followers buy cryptocurrencies. 

This piece of advice has been shared next to a photo of the National Debt Clock, which displays the total U.S. national debt. The humongous sum, which shows the total amount of money that the U.S. owes to creditors, currently stands at $37.6 trillion.

The money borrowed with the help of Treasury securities is used for funding Social Security, Medicare/Medicaid, as well as defense, education and other types of discretionary spending. Fiscal hawks have always sounded the alarm over the ballooning U.S. debt, which both major political parties have failed to address properly.

• Community reaction. Some mocked Cramer, citing his reputation as a contrarian indicator, others debated the possibility. 

Cramer tends to be a rather polarizing figure within the crypto community (and the broader investment community) due to his fame as well as some of his infamous market calls.  

His latest cryptocurrency-related post has inevitably attracted plenty of reactions within the community. Some users chose to respond with stale and low-effort jokes about Cramer being a contrarian indicator. Others disputed the notion that crypto can potentially serve as a hedge against inflation.