In a significant policy shift, the National Bank of Cambodia (NBC) has authorized commercial banks and payment institutions to offer services related to Category 1 crypto assets, including secured stablecoins.

However, the use of unsecured cryptocurrencies, such as Bitcoin, remains strictly prohibited.

Meanwhile, Bitcoin metrics are indicating a notable shift in market dynamics. Spot exchange reserves and netflows have turned positive, with a net addition of 15.8K BTC after weeks of decline.

This development raises questions about market sentiment—could it signal increased caution, profit-taking, or preparation for a potential correction? Historically, rising reserves often lead to heightened volatility and short-term price pressure.

On another front, Bitwise has announced plans to launch the Bitcoin Standard Company ETF. This fund will focus on companies holding Bitcoin as part of their corporate reserves. To qualify for the index, companies must meet stringent criteria: holding a minimum of 1,000 Bitcoins, a market valuation of at least $100 million, an average daily liquidity of $1 million, and a public free float of at least 10%.

Adding to the momentum, Bitcoin spot ETFs saw a significant net inflow of $475 million on December 26, marking the first positive net inflow after four consecutive days of outflows. Notably, Fidelity’s ETF (FBTC) accounted for $254 million of this total, highlighting strong institutional interest.

As regulatory developments in Cambodia and shifting Bitcoin metrics unfold, the crypto landscape continues to present a mix of opportunities and uncertainties. Investors should stay alert as the market evolves, with rising reserves and ETF inflows setting the stage for potential volatility and growth.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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