Extreme Fear to Green Lights: SEC Approves Tokenized Fund Amidst Market Meltdown

Here are 10 key updates from the cryptocurrency market on February 25, 2026, covering major price movements, regulatory news, and industry developments.

📉 Market Downturn & Macroeconomic Factors

1. Bitcoin plunges to a three-month low
   The price of Bitcoin (BTC) extended its decline, dropping below the $63,000 mark to a low of $62,709, continuing a broad market selloff. This drop puts Bitcoin on track for its worst monthly performance (down over 19% in February) since the crypto collapses of June 2022 .
2. Ethereum follows the downtrend
   Ethereum (ETH) mirrored Bitcoin’s weakness, slipping below the $1,900 level and hovering near $1,823. The decline is partly attributed to ongoing selling pressure from co-founder Vitalik Buterin, who has sold over 10,000 ETH since the start of February .
3. Widespread liquidations and market fear
   The market rout triggered over $850 million in liquidations across the crypto market in a single day. The Crypto Fear & Greed Index registered an “Extreme Fear” score of 8, its lowest level since the FTX collapse, as global trade tariff uncertainties rattled investor sentiment .

🏛️ Regulatory & Institutional News

4. U.S. SEC approves tokenized money market fund
   In a significant regulatory move, the U.S. Securities and Exchange Commission (SEC) approved WisdomTree’s exemption application for a tokenized money market fund, signaling a continued warming of regulators toward blockchain-based traditional financial products .
5. U.S. state-level Bitcoin reserve bill progresses
   A strategic Bitcoin reserve bill in Missouri has been submitted to the state’s House Commerce Committee. This follows a trend of U.S. states exploring legislation to hold Bitcoin as a strategic asset .
6. South Korea proposes stablecoin banking rule
   The Bank of Korea urged financial regulators to limit the issuance of Korean Won-pegged stablecoins to licensed commercial banks only, a move that would significantly impact how stablecoins are introduced and managed in the country .

🏢 Business & Project Developments

7. Ethereum Foundation launches dedicated DeFi team
   The Ethereum Foundation announced the formation of a new DeFi team to support the development of protocols aligned with “DeFipunk” principles, focusing on permissionless, censorship-resistant, and self-custodial finance. The team will be led by prominent DeFi figures Charles St. Louis and Ivan .
8. Framework Ventures invests in traditional finance
   Major Canadian venture capital firm Framework Ventures agreed to purchase a 10% stake in U.S. mortgage lender Better.com for approximately $45 million. This investment is part of Better.com‘s plan to venture into asset tokenization, aiming to launch a tokenized product backed by mortgage assets .
9. IoTeX offers white hat bounty after bridge hack
   Following a security breach on its ioTube cross-chain bridge that resulted in a loss of about $4.4 million, the IoTeX team offered the hacker a 10% white hat bounty (roughly $440,000) if the funds are returned within 48 hours. The team stated it would not pursue legal action if the money is sent back .
10. NEAR Protocol launches user-friendly wallet
    NEAR Protocol launched Near.com, a new crypto wallet and consumer application designed to simplify blockchain usage by eliminating common hurdles like gas fees and private key management. The product aims to bridge the gap between crypto and artificial intelligence (AI), enabling AI systems to act on behalf of users.