FCA sues HTX; Waller says crypto hype fading; ETP outflows ease
News
The United Kingdom’s Financial Conduct Authority has initiated High Court proceedings against Panama-incorporated exchange HTX over alleged unlawful crypto promotions; U.S. Federal Reserve Governor Chris Waller said post-election crypto enthusiasm is easing as the sector intersects with traditional finance; and net outflows from crypto exchange-traded products slowed to $187 million last week after prior heavy redemptions, according to CoinShares.
UK FCA brings High Court case against HTX over crypto promotions
The FCA said it filed a claim against HTX and certain unidentified individuals in the Chancery Division of the High Court in October 2025, alleging the firm unlawfully marketed crypto asset services to U.K. consumers in breach of financial advertising rules.
In an update published Tuesday, the regulator said it obtained permission on Wednesday to serve the claim outside the U.K. and via alternative methods, noting HTX (formerly known as Huobi Global) is incorporated in Panama.
The proceedings fall under the Financial Promotions (FinProm) regime implemented in October 2023, which tightened requirements for how crypto businesses may market to U.K. consumers. The FCA said firms offering crypto products to U.K. users must follow rules designed to prevent unfair or misleading advertising, adding that promoting crypto assets on websites or social media without complying is a criminal offense.
The FCA said it had previously warned HTX about promoting services to U.K. consumers but that the company continued to publish financial promotions in breach of the rules on its website and across social platforms including TikTok, X, Facebook, Instagram and YouTube.
FCA’s announcement on taking action against HTX (formerly known as Huobi Global). Source: FCA
Crypto hype “fading” as it ties in with TradFi: Fed’s Waller
Federal Reserve Governor Chris Waller said Monday that the burst of crypto enthusiasm following U.S. President Donald Trump’s election victory has started to subside as the market becomes more integrated with typically risk-averse traditional finance.
Waller said much of crypto has been absorbed into mainstream finance and firms that entered the space have adjusted their risk exposures, contributing to recent selling.
He added that the lack of swift congressional action on a crypto market structure bill has deterred some traditional players due to uncertainty over how products are regulated. Waller characterized the latest price declines as routine volatility for the asset class, saying investors can both make and lose money.
Waller speaking at a Federal Reserve conference on payments in October. Source: YouTube
Crypto investment outflows ease after three weeks of heavy selling
Digital asset investment products posted a third consecutive week of outflows, but the pace slowed markedly as prices steadied after a sharp downturn.
Crypto ETPs saw $187 million of net outflows last week, down from $3.43 billion over the preceding two weeks, CoinShares reported on Monday.
The moderation coincided with Bitcoin (BTC) falling to its lowest level since November 2024, with the price touching $60,000 on Coinbase last Thursday.
“While flows typically move in line with crypto prices, changes in the pace of outflows have historically been more informative, often signaling inflection points in investor sentiment,” said James Butterfill, CoinShares’ head of research.
Bitcoin investment products were the only ETP category to register significant losses last week, with outflows of $264.4 million. XRP (XRP) funds led inflows with $63 million, while Ether (ETH) and Solana (SOL) ETPs recorded modest gains of $5.3 million and $8.2 million, respectively.
Weekly ETP flows by asset as of Friday (USD millions), according to CoinShares.
Spot Bitcoin exchange-traded funds accounted for a substantial share of the Bitcoin ETP outflows, totaling $318 million last week, according to SoSoValue data.
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