While most market participants were resting, events were unfolding behind the scenes that could set the tone for the coming weeks. Quantitative trading giant Jane Street disclosed positions in spot bitcoin ETFs worth over $1 billion, Farcaster protocol operator is seeking a new owner, and the Compound fund is launching an ambitious program for institutional DeFi. I break down each piece of news in detail.

Market: sluggish decline and targeted spikes

Bitcoin (BTC) was trading near $64,172 as of 08:40 Moscow time, up 1.21% over the past 24 hours. Overnight on the 15-minute chart, prices held in a narrow range of $63,950 — $64,460, indicating consolidation before a possible breakout. Ethereum (ETH) stalled at $1,894, showing a symbolic decline of 0.16% — there was a brief dip to $1,885 overnight, but bulls quickly brought the price back to $1,895.

In the top 10 by market cap, volatility was unusually low for crypto. Bitcoin looked stronger than others, while XRP fell 0.72% and Dogecoin (DOGE) dropped 0.42%. Among the top 100, Venice Token (VVV) stood out with a 10.21% gain, followed by Polygon (POL) at +5.52% and Morpho (MORPHO) at +3.44%. The laggard was Worldcoin (WLD), which plunged 11.69%.

ETFs and liquidations: institutions tread carefully

Spot bitcoin ETFs recorded inflows of $137.32 million, Ethereum funds saw modest inflows of $4.95 million, and Chainlink (LINK) products brought in $2.07 million. This is a signal: large capital is still betting on BTC but is in no hurry to build risky positions in altcoins.

Against the backdrop of low volatility, positions of 67,543 traders were liquidated over the past 24 hours, totaling $224.25 million. Interestingly, $140.94 million came from short positions — a clear sign that part of the market was betting on a decline and was punished. The largest liquidation order was $10.29 million on the BTC-USD pair on Hyperliquid.

Overnight news: three events you can't ignore

Jane Street bets on bitcoin via ETFs. The company disclosed holdings in spot bitcoin ETFs worth over $1 billion as of June 30. About $828 million is in BlackRock's IBIT fund, with the rest distributed across Fidelity (FBTC) and Grayscale (GBTC) products. An important nuance: this is not a direct purchase of bitcoin but access to the asset's price through regulated instruments. A telling move for a conservative giant.

Farcaster seeks a new owner. Neynar, the company that bought the Farcaster protocol from Merkle Manufactory just seven months ago, is already looking for a new team. The reason is simple — a catastrophic decline in revenue: gross revenue collapsed from $35.43 million in the first quarter of 2026 to roughly $377,000 for the period from July 1 to August 17. Along with the protocol, the new owner will be offered the Clanker token launch platform and developer services.

Compound breaks into institutional lending. The DAO approved the largest budget in the protocol's history at $52 million. The new team is led by CEO Aaron Schnarch. The plan is to develop products for institutions, including support for real-world assets and tools for embedding on-chain lending. Since its launch in 2018, the protocol has processed about $480 billion in deposits and loans.

My comment: Jane Street's disclosure is not just numbers but a marker of market maturity. When giants like this enter through ETFs rather than direct purchases, it reduces risks for traditional investors and opens the door to new capital. As for Farcaster — it's a classic example of how hype without sustainable monetization leads to quick disillusionment. Compound, on the other hand, shows that DeFi is ready for the next stage — institutional. A $52 million budget is not an expense but an investment in a future where on-chain lending becomes mainstream.