Bitcoin’s rally to a new record above $123,000 this week has rekindled debate over how deeply institutional investors are engaged in the market. While some analysts see signs of growing interest from pensions, endowments, and other long-term investors, the data suggests the sector remains overwhelmingly driven by retail activity and crypto-native firms, though that may soon change, especially in light of favorable political winds and a surge in supportive legislation.

Despite the price surge, institutional ownership of spot bitcoin ETFs remains modest. Under 5% of these ETF assets are held by large-scale, long-term investors such as pension funds and university endowments.

Japan and the European Union are preparing to deepen their strategic cooperation on rare earths and other critical raw materials by launching a new high-level economic dialogue, as both sides move to reduce their dependence on China for strategically vital supply chains. The initiative, dubbed the “economic two-plus-two”, will bring together foreign and economy ministers from both sides, and is expected to be formally announced at the upcoming Japan-EU leaders’ summit on July 23.

The new framework is aimed squarely at countering the risks posed by China’s tightening grip over rare earths, a set of 17 critical elements used in advanced technologies such as electric vehicles, precision-guided munitions, wind turbines, smartphones, and industrial motors.

China’s industrial malaise is highlighted by a hyper-competitive race to the bottom, where firms outproduce, underprice, and cannibalize margins just to survive.. Nowhere is this more visible than in China’s commodities complex, where the government’s historical emphasis on supply security has delivered massive capacity but little profitability, and rising global tensions over export-driven surpluses.

Over the past few months, Beijing has begun sounding the alarm. From official statements denouncing “malicious price competition” to administrative pressure on over-producing sectors, policymakers are trying to shift away from quantity-at-all-costs toward what they describe as “high-quality development.”

Iron ore prices climbed to a two-month high this week, buoyed by signals from Beijing that it is serious about curbing industrial overcapacity and eliminating outdated steelmaking capacity. Although the steel sector continues to grapple with weak demand, particularly from the struggling construction industry, traders took encouragement from the Chinese government’s pledge to reduce excess competition in the sector, a move aimed at improving profit margins for domestic mills.

The commodity rose as much as 1.3% on Thursday before slightly paring gains, with benchmark prices surpassing $100 per ton for the first time since May. That rise was supported by renewed optimism that China may introduce additional stimulus measures to support its ailing property sector, which has long been a key source of steel demand.

The U.S. Commerce Department has announced it will impose preliminary anti-dumping duties of 93.5% on Chinese graphite imports, following an investigation that found China was selling graphite into the U.S. at unfairly low prices. Combined with existing tariffs, the total effective rate will reach 160%, marking one of the most significant trade penalties yet in the battery supply chain.

The action follows a complaint filed in December by the American Active Anode Material Producers, a domestic trade group representing U.S. graphite manufacturers. The final determination on the tariffs is expected by December 5.

U.S. companies are increasingly turning to the foreign exchange options market to protect their European revenue streams, capitalizing on favorable pricing in euro derivatives and growing concerns that the euro may have risen too far, too fast.

After weakening sharply in April following President Donald Trump’s imposition of steep tariffs, the U.S. dollar has since stabilized amid resilient domestic economic data, a strong earnings season, and delays in tariff enforcement. The euro, which surged on the back of the dollar’s tumble, has hovered near $1.16, well above levels earlier in the year, prompting some corporates to hedge against potential euro depreciation.

The European Commission’s proposal to open up its next long-term budget to nuclear power has re-ignited deep divisions among EU member states over the role of atomic energy in the bloc’s energy transition, and introduced a new battleground in what is already shaping up to be a protracted and politically fraught negotiation over the EU’s next multi-annual financial framework (MFF) for 2028–2034.

In a significant policy shift, the Commission included nuclear power, specifically “new or additional fission energy capacity installed in GW”, among the activities eligible for funding through national allocations under the proposed €2 trillion budget. This move, if approved, would mark a major departure from the EU’s current framework, which bars member states from using regional development funds for the construction of nuclear power plants.

The Trump administration’s latest move to subject wind and solar energy projects on federal lands to additional scrutiny signals a broader policy shift away from renewables in favor of traditional fossil fuels. The decision, announced Thursday, will empower Interior Secretary Doug Burgum’s office to personally review all major permitting activities, such as rights-of-way, leases, and construction plans, for solar and wind developments on public lands.

The stated aim is to end what the administration calls “preferential treatment” for renewables. This policy marks a strategic reversal from the Biden administration’s push to decarbonize the U.S. grid and promote renewable energy deployment on public lands. Instead, the Trump administration is aligning energy policy with its goals of “American Energy Dominance,” emphasizing fossil fuels, including coal, oil, and natural gas, as the primary energy sources.