Cointelegraph

Bitcoin and Ether exchange-traded funds have seen a prolonged streak of outflows, indicating that institutional investors have disengaged with crypto, says the analytics platform Glassnode.

Since early November, the 30-day simple moving average of net flows into US spot Bitcoin (BTC) and Ether (ETH) ETFs has turned negative, Glassnode said on Tuesday.

“This persistence suggests a phase of muted participation and partial disengagement from institutional allocators, reinforcing the broader liquidity contraction across the crypto market,” it added.

Flows into crypto ETFs usually lag the spot markets for the tokens, which have been trending down since mid-October. 

The ETFs are also considered a bellwether for institutional sentiment, which has been a market driver for most of this year but seemingly turned bearish as the wider market has contracted.

Source: Glassnode

Crypto ETF selling pressure is back

Coinglass said aggregate Bitcoin ETF flows have been in the red for the past four consecutive trading days. However, BlackRock’s iShares Bitcoin Trust (IBIT) has seen minor inflows over the past week. 

“Crypto ETF selling pressure is back,” the Kobeissi Letter said on Tuesday. It reported that crypto funds recorded $952 million in outflows last week, and investors have now withdrawn capital in six out of the last ten weeks.

Related: BlackRock pins Bitcoin ETF as major theme alongside T-bills, tech stocks

Despite the recent outflows, the industry-dominant BlackRock fund has seen $62.5 billion in inflows since inception, eclipsing all rival spot Bitcoin ETFs. 

IBIT beat gold for flows 

Bloomberg ETF analyst Eric Balchunas said on Saturday that IBIT is the only ETF on  Bloomberg’s “2025 Flow Leaderboard” with a negative return for the year.

“The real takeaway is that it was sixth place despite the negative return,” he added.

Balchunas said that BlackRock’s flagship Bitcoin fund even took in more than the SPDR Gold Shares fund (GLD), which was up 64%.

“That’s a really good sign long term IMO. If you can do $25 billion in a bad year, imagine the flow potential in a good year.”

Magazine: Bitcoin may dip to $65K in 2026, Clarity Act speculation grows: Hodler’s Digest

Bitcoin came just shy of hitting a milestone six figures when inflation is factored in, despite the cryptocurrency hitting an all-time peak of above $126,000 in October, says Galaxy head of research Alex Thorn.

“If you adjust the price of Bitcoin for inflation using 2020 dollars, BTC never crossed $100,000,” Thorn said on Tuesday.

“It actually topped at $99,848 in 2020 dollar terms, if you can believe it.”

Thorn said his adjusted price high for Bitcoin (BTC) accounted for the Consumer Price Index (CPI) decline in purchasing power incrementally across every inflation print from 2020 to today.

CPI measures inflation via the prices of a basket of goods and services and is calculated by the US Bureau of Labor Statistics to track changes in spending habits.

The agency reported in November that the CPI rose 2.7% over the last 12 months, not seasonally adjusted, decreasing the purchasing power of the dollar, which has lost around 20% of its value since 2020.

BTC did not reach six figures if counted in 2020 dollars. Source: Galaxy Research

US inflation remains high

Today, the price of goods is 1.25 times higher than in 2020, according to the CPI, and a dollar today only buys around 80% of what it could buy back then.

Related: Bitcoin hunts liquidity as US CPI inflation drops to lowest since 2021

Inflation in the US skyrocketed above 9% in mid-2022 during the COVID-19 pandemic and remains above the Federal Reserve’s 2% target. 

Dollar Index plunges in 2025

US dollar declines have accelerated this year as measured by the Dollar Currency Index (DXY), which compares the US dollar to a basket of global currencies.

The DXY has fallen 11% since the beginning of the year to 97.8, according to TradingView. The index hit a three-year low of 96.3 in September and has been trending downward since October 2022 as the dollar loses ground against other currencies.

This has given rise to the “debasement trade,” an investment strategy where traders buy assets they believe will hold or increase value as fiat currency loses purchasing power.

Magazine: Bitcoin may dip to $65K in 2026, Clarity Act speculation grows: Hodler’s Digest

Digital asset manager Amplify has launched two exchange-traded funds tracking blockchain projects across stablecoins and tokenization. 

The company said on Tuesday that its Amplify Stablecoin Technology ETF (STBQ) and Amplify Tokenization Technology ETF (TKNQ) both went live on the NYSE Arca exchange.

Both funds track a diversified index of companies working on products or infrastructure, along with projects that generate revenue from tokenization and stablecoins.

“These new ETFs expand Amplify’s lineup at a time when the infrastructure behind stablecoins and the growth of tokenization are shaping the next phase of digital finance,” the company said.

Source: Amplify ETFs

Stablecoins and tokenization have been among the most popular themes in crypto this year, with the US passing laws that have given institutions confidence to launch stablecoins, and regulators opening dialogue on how they should treat assets such as tokenized stocks.

Amplify said its stablecoin-focused ETF tracks shares of companies “generating significant revenue from payments technology, digital asset infrastructure, and trading platforms.”

It holds shares in companies working on stablecoins such as Visa, Circle, Mastercard and PayPal, alongside crypto ETFs from Grayscale, iShares and Bitwise.

The firm pointed to regulatory developments in the US and EU, noting that the “GENIUS Act in the US and MiCA in Europe are positioning stablecoins as the compliant backbone of digital finance.”

Related: Clarity Act delays led to $952M in crypto fund outflows: CoinShares

Meanwhile, the tokenization fund includes exposure to BlackRock, JPMorgan, Figure Technology Solution, Citigroup and the Nasdaq, which all have made tokenization plays over the past few years as they seek opportunities to digitize traditional financial services. 

Crypto and blockchain ETFs stormed onto the market in 2025 after the US Securities and Exchange Commission under chair Paul Atkins loosened requirements for crypto ETFs.

Magazine: Big questions: Would Bitcoin survive a 10-year power outage?

Shares in Upexi closed Tuesday down 7.5% after it filed to raise up to $1 billion to expand its Solana treasury and pursue other opportunities related to the token.

Upexi said in its shelf registration filing to the Securities and Exchange Commission on Tuesday, that the raise could cover common and preferred stock, debt securities, warrants and units, which may be issued over time.

It said net proceeds from the offering would be used for general corporate purposes. The company primarily focuses on accumulating as much Solana (SOL) as possible and staking it to be rewarded with additional tokens.

Upexi holds 2.1 million SOL worth $262.3 million, making it the fourth-largest corporate Solana treasury company, CoinGecko data shows.

Solana treasury purchases have slowed significantly in the back half of 2025 amid a broader crypto market pullback, along with waning confidence in the sustainability of crypto treasury strategies.

Shares in Upexi (UPXI) closed Tuesday down 7.54% to $1.84, but saw a small reprieve after the bell, gaining 4.34% to $1.92.

Upexi saw a small rally late in after-hours trading on Tuesday, gaining back the day’s losses. Source: Google Finance

Upexi's business was centered around consumer products and e‑commerce before pivoting to a Solana treasury company in late April.

Related: Eclipse brings Solana's parallel runtime to Ethereum

However, it hasn’t made a Solana purchase since July 23 and has seen the value of its SOL stash tumble from a peak of around $525 million in mid-September to $262.3 million at current prices. 

Timeline of Upexi’s SOL purchases since its first purchase in late April. Source: Upexi

The company is currently holding a 19% paper loss on its Solana treasury.

Solana is trading at $123.75, down 57.5% from its $293.31 all-time high set on Jan. 19, 2025, CoinGecko data shows.

Magazine: Sei wallets in Xiaomi, Bhutan’s gold on Solana: Asia Express

Bitcoin financial services firm Matador Technologies has been given the regulatory green light to sell up to 80 million Canadian dollars ($58.4 million) worth of company shares, which it will use to help reach its goal of owning 1,000 Bitcoin before the end of 2026.

Matador said on Tuesday that the Ontario Securities Commission permitted it to issue $58.4 million worth of common shares, warrants, subscription receipts, debt securities, or units over a 25-month effective period. 

Matador CEO Deven Soni said the firm is “focused on increasing Bitcoin per share over time and continue to target a treasury balance of 1,000 Bitcoin by the end of 2026.”

Matador currently holds 175 Bitcoin (BTC) worth $15.3 million, making it the 90th largest corporate Bitcoin holder, BitcoinTreasuries.NET data shows.

Matador’s chief visionary, Mark Voss, said it would closely monitor Bitcoin’s volatility and navigate the current market cycle to deploy capital at the most opportune times. 

Source: Matador Technologies

Shares in Matador (MATA) fell on the news, closing Tuesday down 3.57%.

More than 190 publicly traded companies now hold Bitcoin on their balance sheets, continuing the trend of institutional Bitcoin adoption after spot Bitcoin exchange-traded funds launched in the US last year.

However, many companies that adopted Bitcoin buying strategies have seen their share prices slide as crypto markets retraced and the initial hype faded, prompting some analysts to question the long-term sustainability of Bitcoin treasury strategies.

Some corporate Bitcoin holders have begun selling portions of their Bitcoin reserves to meet balance-sheet obligations amid a tightening in market conditions. 

Chip maker Sequans sold 970 BTC in early November to redeem outstanding convertible debt, backsliding on its goal to accumulate 100,000 BTC over the next five years.

Matador bought 175 BTC in first year of treasury

Matador builds products to help traditional finance firms enter the Bitcoin ecosystem and announced that it would become a Bitcoin treasury company a year ago, on Dec. 23, 2024.

In July, Matador said it plans to expand its targeted 1,000 BTC holdings by 2026 to 6,000 BTC before the end of 2027.

Its grand goal is to obtain 1% of Bitcoin’s fixed supply, which amounts to about 210,000 BTC. 

Michael Saylor’s Strategy is the only corporate Bitcoin holder that has accumulated that amount to date.

Magazine: Quantum attacking Bitcoin would be a waste of time: Kevin O’Leary

Bitcoin’s lack of an exciting year-end price rally may be the catalyst that prevents a significant crash in the first quarter of next year, according to Bitcoin entrepreneur Anthony Pompliano.

“Given where the volatility is right now, it would be very surprising that Bitcoin’s volatility has drastically compressed and yet still could get a 70% or 80% drawdown,” Pompliano said during an interview on CNBC on Tuesday.

Pompliano said the short-term disappointment from Bitcoin (BTC) holders over the asset not reaching $250,000 this year overlooks the broader performance. “We have to remember that Bitcoin is up 100% in two years. It’s up almost 300% in three years. It has been compounding,” he said. 

“This thing has been a monster in financial markets,” he added.

Pomp points to no “big 80% drawdown for Bitcoin

Pompliano said that the decline in Bitcoin’s volatility has largely gone unnoticed by Bitcoin holders, compared with the attention on the asset’s price drop since the start of the year. 

“We didn’t get a blowoff top that I think people expected at the end of Q3, or beginning of Q4, but we haven’t seen the big 80% drawdown that people normally expect as well,” he said.

Bitcoin is trading at $87,436 at the time of publication, down 7.39% from its price on Jan. 1, according to CoinMarketCap.

Anthony Pompliano spoke to CNBC on Tuesday. Source: CNBC Television

Bitcoin advocates such as BitMine chair Tom Lee and BitMEX co-founder Arthur Hayes had forecast Bitcoin price reaching as high as $250,000 this year.

Pompliano said the compression in volatility means holders may be “a little bit disappointed on the upside” due to the absence of blow-off tops, but it also provides “some degree of safety” on the downside, reducing the likelihood of massive drawdowns.

Some Bitcoin analysts are tipping $60K in 2026

However, not all analysts are as confident as Pompliano.

Veteran trader Peter Brandt recently predicted that Bitcoin could fall as low as $60,000 by the third quarter of 2026.

Meanwhile, Jurrien Timmer, Fidelity’s director of global macroeconomic research, said 2026 could be a “year off” for Bitcoin, with prices potentially falling to as low as $65,000.

Magazine: Big questions: Would Bitcoin survive a 10-year power outage?

Brett Harrison, the former president of the now-defunct FTX US exchange, has closed a $35 million funding round for his new derivatives venture, signaling renewed investor confidence in the sector and continued venture appetite for crypto-linked derivatives infrastructure.

On Tuesday, The Information reported that Harrison’s startup, Architect Financial Technologies, is using the funding to build an institutional trading platform spanning derivatives, equities, futures and digital assets. Participants in the round included Miax, Tioga Capital, ARK Investment, Galaxy and VanEck.

The new capital follows a $12 million funding round in 2024 backed by Coinbase Ventures, Circle Ventures, SALT Fund and other investors.

Source: Galaxy

The funding comes after Architect received regulatory approval in Bermuda to offer perpetual futures contracts tied to traditional assets such as stocks, commodities and foreign currencies. Perpetual futures, or “perps”, were first popularized in crypto markets by BitMEX and later became a core product at FTX prior to its collapse in late 2022.

Architect is explicitly targeting professional and institutional traders, offering features such as algorithmic trading capabilities, advanced risk management tools and multi-asset derivatives support. The company plans to expand beyond Bermuda into additional markets, including Europe and the Asia-Pacific region.

Related: Kraken doubles down on US futures with $100M ‘Small’ acquisition

Derivatives markets outsize traditional asset trading

Derivatives are widely regarded as the largest segment of global financial markets. By some measures, the notional value of outstanding contracts in over-the-counter and exchange-traded derivatives markets is valued in the hundreds of trillions of dollars, dwarfing world economic output by every conceivable metric.

As S&P Global noted in a February report, the derivatives market is constantly evolving, but liquidity remains a core challenge across many asset classes. Investors are increasingly focused on products with deep liquidity and tight bid-ask spreads, even as market structures and index-based solutions continue to innovate.

Derivatives have been widely embraced by the cryptocurrency sector, though not without consequences. According to some estimates, derivatives account for about 75% to 80% of total trading volume across major crypto exchanges, underscoring their central role in market activity.

Source: Kevin Sevenson

That dominance has also amplified volatility. The risks were on display during the crypto market’s Oct. 10 liquidation event, which was the largest in history, with $19 billion erased in a single day.

Related: VC Roundup: Big money, few deals as crypto venture funding dries up

An experimental orchestral project in Brazil aims to convert Bitcoin price data into live music, after receiving approval to raise funds through one of the country’s tax-incentive programs for cultural initiatives.

According to Brazil's Federal Register, the authorization allows the project to seek up to 1.09 million reais ($197,000) from private companies and individual donors for an instrumental concert that uses financial data to generate music, drawing on concepts from art, mathematics, economics and physics.

The publication does not specify whether any blockchain or onchain infrastructure will be used in the performance. The performance will take place at the country's federal capital, Brasília.

The project description says it will convert monetary figures into musical notation by using an algorithm to track Bitcoin (BTC) price movements and related technical data in real time during the performance. These data inputs are intended to guide melody, rhythm and harmony as the orchestra plays live.

Excerpt from Brazil's official government gazette. Source: Diário Oficial da União

The approach is designed to give audiences an audible representation of Bitcoin’s volatility by translating market behavior into sound, blending traditional orchestral instruments with data-driven composition. 

The approval confirms that the project met the requirements of Brazil’s Rouanet Law and cleared technical review, formally allowing sponsors to deduct contributions from taxes.

Fundraising must be completed by Dec. 31, with the initiative classified under the “Instrumental Music” category, which determines how tax incentives apply.

Earlier experiments in algorithmic crypto art

The Brazil initiative builds on earlier experiments in algorithmic art that have treated crypto-native and other real-world data streams as raw material for creative expression.

In 2020, a San Francisco–based group working in programmable digital art unveiled an artwork designed to change its appearance in line with Bitcoin’s price movements. The project, Right Place & Right Time by artist Matt Kane, used BTC market data as a live input, allowing shifts in the cryptocurrency’s value to drive visual changes in the piece.

The work was released through Async Art, a platform known for programmable NFTs, where Kane structured the artwork into a central “Master” image composed of multiple independent layers. Each layer responded to Bitcoin price action, with changes in the data influencing elements such as scale, rotation and positioning over time.

A one-of-a-kind programmable artwork that generates a new image daily, with 24 layers synced to Bitcoin’s price volatility. Source: Asynchronous Art

Another artist working in a similar vein is Refik Anadol, whose practice uses artificial intelligence, algorithms and large datasets to produce immersive installations that translate sources ranging from environmental data to archival records into continuously evolving visual works.

The artist has released several non-fungible projects in recent years, including Winds of Yawanawá, an NFT collection created and launched in July 2023 as a collaboration with the Yawanawá Indigenous community of the Brazilian Amazon, combining real-time environmental data and traditional art into a generative digital series.

Winds of Yawanawa NFTs listed on OpenSea marketplace. Source: Opensea

Magazine: Quantum attacking Bitcoin would be a waste of time: Kevin O’Leary

Gnosis chain operators executed a hard fork to recover funds tied to a $116 million Balancer exploit in November.

In a Tuesday X post following a notice for node operators, Gnosis said it executed a hard fork to recover some of the funds from a significant exploit of Balancer. The project said the funds were “out of the hacker's control,” signaling a partial or full recovery.

The hard fork, executed on Monday, followed a majority of validators adopting a soft fork in November in response to the Balancer exploit affecting “Balancer‑managed contracts on Gnosis Chain.”

Source: Gnosis Chain

“There is still a live community discussion around how people will be able to claim back their funds, as well as how contributors involved in the rescue mission may be recognized or compensated,” said Gnosis head of infrastructure Philippe Schommers in a Dec. 12 forum post. “Right now we’re focused on enabling funds to be recovered by Christmas. Once they sit safely in a DAO controlled wallet we will figure out everything else.”

On Nov. 3, Balancer reported that the decentralized exchange and automated market maker had been exploited for more than $116 million worth of digital assets. Onchain data showed a hacker transferred millions in staked Ether (ETH) to a new wallet. 

Though Balancer later reported that white hat hackers had managed to recover about $28 million of the stolen funds, it did not appear to have regained access to the majority of digital assets.

11 audits didn’t prevent the Balancer exploit

According to a list of Balancer V2 audits available on GitHub, four different security companies conducted 11 audits of the platform’s smart contracts. The project reported that the exploit was “isolated to V2 Composable Stable Pools.”

Magazine: When privacy and AML laws conflict: Crypto projects’ impossible choice

The cryptocurrency market witnessed pockets of outperformance from select altcoins in 2025, but a broad-based altcoin rally failed to materialize. According to CoinMarketCap data, Bitcoin (BTC) did not breach its yearly low dominance of 55.5% hit on Jan. 5, 2025, signaling that traders did not abandon BTC and rush into altcoins.

Glassnode said in a recent post on X that nearly all crypto sectors had underperformed BTC over the past 3 months, signaling “a market environment where capital concentration favors BTC.”

Could the major altcoins make a comeback in 2026? Let’s analyze the charts of the top 5 major altcoins to find out.

Ether price prediction

Ether (ETH) pierced the $4,868 resistance in August, but the breakout turned out to be a bull trap.

ETH/USDT weekly chart. Source: Cointelegraph/TradingView

The Ether price has dipped below the 50-week simple moving average ($3,070), indicating that bears have the upper hand. Buyers attempted to start a recovery but are facing selling at the 20-week exponential moving average ($3,454).

There is support at $2,623, but if the level cracks, the ETH/USDT pair could plummet to $2,111 and then to $1,600. Buyers are expected to fiercely defend the zone between $1,600 and $1,385.

The first sign of strength will be a break and close above the 20-week EMA. That suggests the bears are losing their grip. The pair may then attempt a rally to $4,000 and eventually to $4,956. Above $4,956, the pair could soar to $6,194 and then to $9,030. 

BNB price prediction

BNB (BNB) has been stuck between the moving averages, indicating a balance between supply and demand.

BNB/USDT weekly chart. Source: Cointelegraph/TradingView

If the price breaks below the 50-week SMA ($775), it suggests that the bears have overpowered the bulls. The BNB price could then tumble to the solid support at $500. Buyers are expected to fiercely defend the $400 to $500 zone.

Typically, after a sharp fall, the price tends to consolidate before making the next directional move, as seen from the range-bound action from May 2022 to February 2024. If history repeats, the BNB/USDT pair may range between $500 and $930 for some time.

Contrary to this assumption, if the price breaks above the 20-week EMA, it suggests that the bulls are attempting to take charge. The pair may then climb to $1,182 and eventually to the all-time high of $1,375. 

XRP price prediction

XRP (XRP) has been sliding toward the solid support at $1.61, where the buyers are expected to step in. 

XRP/USDT weekly chart. Source: Cointelegraph/TradingView

A bounce off the $1.61 level is likely to face strong selling at the 20-week EMA ($2.38). If the price turns down sharply from the 20-week EMA, it increases the likelihood of a break below the $1.61 support. If that happens, the XRP/USDT pair could plunge to $1.25 and subsequently to the psychological support at $1.

Alternatively, if the price turns up from the current level or the $1.61 support and breaks above the 20-week EMA, it signals that the bearish momentum is weakening. The pair may then climb to $3, bringing the large $1.61 to $3.66 range into play. A close above $3.66 could catapult the XRP price to $5.19. 

Solana price prediction

Solana (SOL) has been trading below the moving averages and is likely to decline to the $95 support.

SOL/USDT weekly chart. Source: Cointelegraph/TradingView

Buyers are expected to fiercely defend the $95 level, but the relief rally is likely to face selling at the moving averages. If the price turns down sharply from the moving averages, it signals a negative sentiment. The bears will then make one more attempt to sink the SOL/USDT pair below $95. If they succeed, the pair could descend to $80 and later to $50.

Contrarily, if the Solana price turns up and breaks above the moving averages, it signals a possible range-bound action between $95 and $260 for a few more weeks. The next leg of the up move could begin on a close above $260. The pair could then soar to $425.

Dogecoin price prediction

Dogecoin (DOGE) has dipped to the bottom of the $0.13 to $0.29 range, where the buyers are expected to step in.

DOGE/USDT weekly chart. Source: Cointelegraph/TradingView

Both moving averages are sloping down, and the RSI is in the negative territory, indicating that bears are in control. If the price sustains below the $0.13 level, the selling could intensify, and the DOGE/USDT pair may collapse to $0.09.

Time is running out for the bulls. They will have to aggressively defend the $0.13 level and push the Dogecoin price above the moving averages to extend the consolidation for some more time. 

The longer the consolidation, the stronger the eventual breakout from it. If buyers drive the price above $0.29, the pair is expected to pick up momentum and accelerate toward $0.48.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision. While we strive to provide accurate and timely information, Cointelegraph does not guarantee the accuracy, completeness, or reliability of any information in this article. This article may contain forward-looking statements that are subject to risks and uncertainties. Cointelegraph will not be liable for any loss or damage arising from your reliance on this information.

Cipher Mining has acquired a 200-megawatt power site in Ohio called “Ulysses,” marking its first expansion outside of Texas and entry into the PJM wholesale electricity market, the largest power market in the United States.

According to Tuesday’s announcement, the 195-acre site has secured power capacity from AEP Ohio, with all required utility agreements in place, and is expected to be energized in the fourth quarter of 2027.

Cipher said the facility is suitable for high-performance computing and data center use in addition to Bitcoin (BTC) mining. Financial terms of the transaction were not disclosed.

The move aims to meet growing demand from hyperscalers, large cloud computing companies such as Amazon Web Services and Google Cloud, for data centers. “Hyperscalers are driving unprecedented demand for large-scale sites,” said Cipher CEO Tyler Page, adding that the company's new site will give it additional capacity to expand its high-performance computing (HPC) hosting business.

Source: Cipher Mining

The deal follows a broader push by publicly listed Bitcoin miners into power, data center and manufacturing infrastructure beyond traditional mining.

Hut 8, for instance, recently signed a 15-year lease worth about $7 billion to supply 245 megawatts of AI data center capacity at its River Bend campus in Louisiana, with infrastructure provider Fluidstack as the tenant and Google backing lease payments.

A few days later, Bitdeer leased about 188,000 square feet at a logistics facility in Sparks, Nevada, to expand its US manufacturing footprint, according to The Miner Mag. 

Bitcoin mining hashprice puts pressure on miners

The Bitcoin mining hash price, a key measure of miner revenue per unit of computing power, has been below $40 since mid-November, a level many operators view as breakeven. The slump has forced mining companies to reassess their operating models as margins across the sector remain under pressure.

Bitcoin hash price over the past three months. Source: Hashrate Index

While many miners have sought diversification through AI and HPC demand, some are also turning to renewable energy as a way to lower costs and stabilize profitability. 

Sangha Renewables recently brought a 20-megawatt solar-powered mining facility online in Ector County, Texas, while Phoenix Group launched a 30-megawatt hydro-powered operation in Ethiopia in November. 

Separately, Canaan partnered with Soluna in September to deploy mining capacity at a wind-powered site in Texas and is developing adaptive mining rigs that use AI to optimize energy efficiency.

Despite the mounting pressure on mining economics, Bitcoin mining stocks have rallied sharply in 2025, signaling that public markets are increasingly focused on miners’ long-term strategic positioning rather than near-term Bitcoin production alone. 

Among the top five publicly traded miners, IREN Limited is up roughly 331% year-to-date, followed by Applied Digital (246%), Cipher Mining (250%), Hut 8 (160%), and Riot Platforms (36%), according to data from Google Finance.

Iren Limited YTD stock price. Source: Google Finance

Magazine: Big questions: Would Bitcoin survive a 10-year power outage?

DWF Labs, a cryptocurrency-focused market maker, has expanded into physical commodities after settling its first physical gold transaction, a rare move for a crypto-native company as precious metal prices continue to break record highs.

On Monday, managing partner Andrei Grachev said DWF Labs had “just settled our first gold trade,” describing it as a test tranche involving a single 25-kilogram gold bar. Grachev said the company plans to scale the operation, with ambitions to trade physical silver, platinum and cotton.

Notably, the transaction was completed using conventional bullion custody and settlement infrastructure, rather than blockchain-based rails.

Source: Andrew Grachev

The move stands out at a time when many crypto-native companies are focused on tokenizing real-world assets. DWF Labs, by contrast, has engaged directly in the legacy commodities market in its gold transaction. 

The timing reflects strong momentum in commodities markets this year. Gold and silver prices have outperformed much of the crypto sector, as investors seek hedges against macroeconomic uncertainty.

Gold futures recently reached new all-time highs above $4,500 per troy ounce, extending a year-long rally driven by central bank buying, geopolitical risk and expectations of eventual interest-rate cuts. By comparison, Bitcoin (BTC) and broader crypto markets have seen more muted price action over the same period.

Source: The Kobeissi Letter

Beyond commodities, DWF Labs has expanded its footprint in digital assets. The company has launched multiple investment vehicles aimed at supporting crypto adoption, including a $250 million Liquid Fund focused on helping mid-cap blockchain projects scale, as well as a $75 million institutional DeFi fund.

Related: Tether Gold rides bullion boom as central banks, ETFs rush to accumulate

Is crypto blending into brick and mortar?

DWF Labs’ move into physical commodities appears to reflect a broader trend of crypto-native companies gradually extending into legacy markets to diversify revenue, reach new customers and broaden their operating scope beyond purely digital assets.

Other companies are pursuing parallel, though distinct, strategies. Coinbase, for instance, has outlined ambitions to become what it calls an “everything exchange,” with plans to let companies tokenize their shares for round-the-clock trading.

“In time, we believe everything will be tokenized, and bringing stocks to Coinbase is an important milestone toward enabling tokenized stocks,” Coinbase said in a blog post.

Deutsche Bank Research analysts said the move could “substantially widen [Coinbase’s] addressable market” across both retail and institutional clients, while helping to offset potential future pressure on retail crypto trading volumes, according to Bloomberg.

Several cryptocurrency companies have also sought entry into the traditional banking system through bank or trust charters, including stablecoin issuer Circle and digital asset custodian BitGo, which have pursued regulated banking or trust structures to expand their financial services offerings.

Related: Coinbase ‘cautiously optimistic’ on 2026 as crypto nears institutional inflection point

Many crypto industry leaders and users anticipate significant changes in the US regulatory environment over the next 12 months, as various policy changes and legislation begin to take effect.

Although the inauguration of US President Donald Trump in January 2025 did not mean an immediate end to all digital asset regulation, many of the administration’s policies, from dismissing enforcement cases of crypto companies by the Securities and Exchange Commission to signing a stablecoin bill into law, signal apparent differences to previous US presidents and their chosen regulators.

“I expect an increasing number of jurisdictions to establish clear and transparent regulatory frameworks for the crypto industry, which should facilitate broader participation,” Ruslan Lienkha, YouHodler’s chief of markets, said in a statement shared with Cointelegraph. “Consequently, we are likely to see a significant rise in the involvement of banks and other financial institutions in the market in 2026.”

Digital asset market structure

As of late December, the US Senate has yet to vote on legislation to establish clear regulatory guidelines for digital assets. 

The initial bill, known as the Digital Asset Market Clarity Act (CLARITY), was passed by the House of Representatives in July. However, lawmakers in the Senate said their versions of the legislation would “build on” the existing bill rather than passing it through the chamber without any changes.

As a result, leadership on the Senate Banking Committee released a Republican-led discussion draft of the bill in July, and the Senate Agriculture Committee announced a bipartisan draft in November. Both bills will need to go through the respective committees before the full chamber can vote on either, or some combination thereof. 

The drafts suggested that Congress could grant the Commodity Futures Trading Commission more authority to regulate digital assets. The Securities and Exchange Commission has taken on a more prominent role in overseeing cryptocurrencies, with some notable exceptions. 

According to digital asset management company Grayscale, the bill will “facilitate deeper integration between public blockchains and traditional finance, facilitate regulated trading of digital asset securities, and potentially allow for onchain issuance by both startups and mature firms.”

Both agencies have filed enforcement actions and issued rulemaking affecting the industry, but the SEC oversees exchange-traded funds tied to digital assets. The CFTC regulates Bitcoin (BTC) and Ether (ETH) as commodities in digital form.

Implementation of the GENIUS stablecoin act

One of the other pieces of legislation to emerge from a Republican-led US Congress in 2025 was the GENIUS Act, which aimed to establish a regulatory framework for payment stablecoins. Although Trump signed the bill into law in July 2025, it will take effect either 18 months after enactment or 120 days after regulators approve regulations related to implementation, putting the timeline in 2026 or later.

As part of the implementation process, the US Treasury Department opened two rounds of comments for proposed rules related to the GENIUS Act in August and September. The notice of proposed rulemaking could be made public in the first half of 2026, according to some experts.

“As regulatory clarity solidifies, particularly through laws like the GENIUS Act that establish federal stablecoin oversight, banks are increasingly exploring onchain tooling that could transform payments, settlements and liquidity provisioning,” Gracy Chen, CEO of Bitget, said in a statement shared with Cointelegraph. “Should major US banks begin issuing compliant stablecoins or tokenized deposits, we could see significant expansion of global liquidity, faster transaction settlement times, and richer DeFi composability built on regulated infrastructure.”

In addition to the Treasury, other US banking regulators have put forward proposals for stablecoin rules. On Dec. 16, the Federal Deposit Insurance Corporation (FDIC) proposed that subsidiaries of supervised banks could issue payment stablecoins under the criteria passed under GENIUS.

CFTC leadership yet to be named by Trump

In 2025, four out of the five commissioners serving as the CFTC’s leadership stepped down, leaving only Republican Caroline Pham to serve as the acting chair and the agency’s sole commissioner as of December. 

Although Trump initially nominated former CFTC Commissioner Brian Quintenz to replace Pham as a Senate-confirmed chair of the agency, the White House pulled him from consideration in September, reportedly in response to pushback from Gemini co-founders Tyler and Cameron Winklevoss, who are both Trump donors and prominent figures in the crypto industry. 

The withdrawal of Quintenz paved the way for Trump to nominate SEC official Michael Selig as CFTC chair. Selig’s nomination advanced out of the Senate Agriculture Committee in November, and in the full chamber later confirmed him as chair in a 53 to 43 vote as part of a package of nominees.

As of December, Trump has not publicly announced any potential replacements for the four remaining CFTC commissioner seats, despite many of them being vacant for months.

State-level crypto reserves

In June, Texas Governor Gregg Abbot signed a bill into law creating a state-managed fund that could hold Bitcoin (BTC), making the state the first to establish a crypto reserve. State officials announced in November that the fund held $5 million worth of shares in BlackRock’s spot Bitcoin ETF with plans to invest an additional $5 million directly in BTC, a move that could come in 2026.

Although many lawmakers in other US states proposed similar crypto reserve bills in 2024 and 2025, only legislation in Arizona and New Hampshire was signed into law. Both states could announce BTC or other crypto purchases in the coming year as part of their governments’ treasury strategy.

Magazine: When privacy and AML laws conflict: Crypto projects’ impossible choice

The International Monetary Fund’s mission chief for El Salvador issued a statement confirming that government authorities were proceeding with negotiations for the sale of the country’s Chivo Bitcoin wallet.

In a Monday statement, the IMF said El Salvador’s government was continuing to discuss its Bitcoin (BTC) project with the fund’s officials, and “negotiations for the sale of the government e-wallet Chivo are well advanced.” The announcement signaled that the government may be preparing to sell some or all of its crypto holdings in the Chivo wallet.

Source: IMF

The statement followed a May deal with El Salvador in which the IMF would pay $120 million as part of a 2024 loan agreement for $1.4 billion. As part of the deal, the government would stop acquiring Bitcoin.

It’s unclear whether El Salvador is abiding by the terms of the deal. Though the IMF reported in July that the country’s government had not purchased any BTC since December 2024, El Salvador’s Bitcoin Office continues to announce crypto buys, including 1,090 Bitcoin worth about $100 million in November.

According to the terms of the IMF-El Salvador deal made public, the government would make public sector engagement of BTC-related economic activity “confined,” the private sector’s acceptance of Bitcoin would be voluntary, and it would wind down involvement in the Chivo wallet. Cointelegraph reached out to the IMF for comment but had not received a response at the time of publication.

El Salvador recognized Bitcoin as legal tender in 2021 and began acquiring the cryptocurrency as part of a strategy largely pushed by President Nayib Bukele. According to data provided by the country’s Bitcoin Office, the government held 7,509 Bitcoin as of Monday, worth about $659 million at the time of publication.

‘It’s not stopping,’ says Bukele on Bitcoin buys

Despite the reported deal between the IMF and El Salvador, Bukele said in March that the government would continue its Bitcoin investment strategy, purchasing at least one BTC daily. It’s unclear how the president’s statement could affect the IMF agreement.

Magazine: When privacy and AML laws conflict: Crypto projects’ impossible choice

Key takeaways

Bhutan is using surplus, carbon-free hydropower to mine Bitcoin, converting excess electricity into a liquid digital export rather than curtailing generation.

Mining and custody are handled by the sovereign investment arm, Druk Holding and Investments (DHI), and confined to designated jurisdictions, limiting retail exposure.

Officials describe mined Bitcoin as a foreign-currency liquidity buffer that has already supported government finances.

The central bank permits crypto activity only under a phased, sandbox-style framework linked to Gelephu Mindfulness City, with an emphasis on risk control and transparency.

Bhutan’s pitch to the crypto world is simple: If a country has abundant renewable power and limited domestic demand, it can turn electrons into digital assets.

In practice, the Himalayan kingdom has been quietly doing exactly that: using hydropower to run industrial-scale Bitcoin (BTC) mining and to build a state-backed, values-driven “green digital assets” strategy that officials say can generate hard-currency liquidity, support public spending and help develop a domestic tech workforce.

Step 1: Start with the only natural resource that scales

Bhutan’s energy system is dominated by hydropower, and electricity exports, especially to India, are a core pillar of the economy. Reportedly, Bhutan’s leadership views expanded hydropower capacity as a prerequisite for scaling its “green” crypto ambitions.

The government’s own energy planning documents frame this expansion in large numbers. Bhutan’s National Energy Policy 2025 cites a “techno-economically viable hydropower potential” of 33,000 megawatts (MW), based on the Power System Master Plan 2040, and positions hydropower alongside solar, wind and storage as central to long-term growth.

A World Bank report similarly places Bhutan’s feasible hydropower potential at roughly 33 gigawatts and notes the macroeconomic impact of recent imports of IT equipment linked to crypto mining expansion.

Recent cross-border project announcements underline how tangible the buildout has become. In November 2025, India inaugurated the 1,020-MW Punatsangchhu-II hydropower project and extended a new credit line tied to deeper energy cooperation. Officials also noted that Bhutan’s domestic power demand is around 1,000 MW, with surplus electricity exported.

Step 2: Use surplus hydropower as “computing fuel”

Bhutan’s crypto strategy is spearheaded by Druk Holding and Investments (DHI), the commercial investment arm of the royal government.

In an April 2025 interview with Reuters, DHI CEO Ujjwal Deep Dahal said Bhutan began adding cryptocurrencies to DHI’s portfolio in 2019. He framed Bitcoin mining as a way to increase access to foreign-currency liquidity and create value from surplus hydropower.

Bhutan has used some crypto-related profits to help pay government salaries for the past two years, according to senior officials in Thimphu.

A key industrial lever is the Bitdeer and DHI partnership, announced in May 2023. Bitdeer said the parties planned to launch a closed-end fund of up to $500 million to develop carbon-free digital asset mining operations in Bhutan, leveraging the country’s renewable power and Bitdeer’s mining expertise.

Step 3: Treat Bitcoin like a financial buffer for a seasonal grid

Hydropower systems often face a timing problem: Generation can surge when rivers run high and shrink when flows drop.

In January 2025, Bhutan’s Gelephu Mindfulness City (GMC) project described the country’s approach as a way to monetize surplus summer hydropower via “green Bitcoin,” then convert that value back into electricity or imports when power is tighter. The project quoted DHI’s Dahal as describing Bitcoin “strategically as a battery.”

That “battery” framing matters because it is one of Bhutan’s most consistent arguments for why mining is not merely speculation. Instead, it is positioned as infrastructure-adjacent, turning otherwise curtailed renewable generation into a liquid reserve asset.

Step 4: Keep it sovereign and increasingly regulated

Bhutan’s mining and reserve-building efforts have attracted attention because they are state-linked rather than purely private. In September 2024, blockchain analytics firm Arkham disclosed that it had identified Bhutan government-linked Bitcoin holdings on its platform and characterized those holdings as originating from mining rather than seizures. However, onchain estimates fluctuate with price movements and wallet attribution and should not be treated as audited public accounts.

On the regulatory front, Bhutan’s central bank, the Royal Monetary Authority (RMA), has publicly signaled a controlled approach. In an April 30, 2025, notice titled “RMA’s Regulatory Stance on Cryptocurrency,” the RMA said it would adopt a phased and focused strategy.

The notice stated that crypto mining and exchanges would be permitted only for entities registered with GMC. Participation would also be limited to business partners operating under the GMC framework.

This sandbox-like containment aligns with how GMC is being positioned as a special jurisdiction with its own policy toolkit and a prominent finance and digital assets pillar. That framework includes a proposed blockchain-linked currency concept, “ter,” and a planned fully reserved digital bank, Oro Bank.

Did you know? In 2024, Bhutan’s state-linked Bitcoin mining operations generated an estimated $750 million in revenue, according to blockchain analytics firm Arkham Intelligence.

Step 5: The “green coin” narrative and the risks involved

Bhutan’s officials explicitly emphasize the climate angle. For example, Dahal has argued that coins mined using Bhutan’s hydropower offset coins mined with fossil energy elsewhere and contribute to the green economy.

But even in a renewables-heavy system, these risks do not disappear:

Volatility and fiscal risk: Bitcoin’s price can swing sharply, and using volatile assets in public finance introduces budgeting risk, even if holdings are built from surplus power rather than taxes.

Transparency: Onchain tracking is not the same as official disclosure. Audited reporting and clear governance matter when reserves are state-linked.

Financial crime and consumer protection: The RMA’s phased stance and the restriction of permitted activity to GMC-registered entities reflect a preference for controlled participation rather than open retail speculation.

Testing a green Bitcoin model

Bhutan’s green Bitcoin economy is not a meme trade; it is a state-directed effort to bolt a new export, digital assets, onto the country’s existing comparative advantage in renewable power. The strategy uses a special jurisdiction, Gelephu Mindfulness City, alongside central bank guardrails to limit spillover risk.

Whether it becomes a durable model will depend less on slogans and more on hydropower expansion, disciplined reserve management and how transparently the state accounts for what it mines, holds and sells.

Bitcoin (BTC) stayed lower into Tuesday’s Wall Street open as traders saw further BTC price downside next.

Key points:

Bitcoin shorts pile in ahead of the Wall Street open as Bitcoin and precious metals continue to go separate ways.

Moving averages function as stiff resistance as $90,000 remains unbeaten.

Bitcoin begins printing bullish divergences against both the US dollar and gold.

BTC price action sees traders bet on buying the dip

Data from TradingView showed BTC/USD trading down around 1% on the day.

BTC/USD one-hour chart. Source: Cointelegraph/TradingView

After rejecting at $90,000 the day prior, expectations were uninspiring for the pair, which languished while gold and silver hit new all-time highs.

“$BTC Keeps rejecting from its 4H 200MA/EMA Trend,” trader Daan Crypto Trades observed in his latest analysis on X. 

“If this wants to get out of this choppy range, that would be the first level that needs to be broken on the upside.”

BTC/USD four-hour chart with 200SMA, EMA. Source: Daan Crypto Trades/X

Daan Crypto Trades referred to the 200-period simple (SMA) and exponential (EMA) moving average “cloud” on four-hour timeframes.

Fellow trader Crypto Tony correspondingly decided to wait for new intraday lows for a long entry.

$BTC / $USD - Update

I am waiting today for that move down to $86,800 for a possible long entry upon holding.

Going to get wicky over next few days, but determined to catch the big moves like yesterday pic.twitter.com/vNuNkhEdpv

— Crypto Tony (@CryptoTony__) December 23, 2025

“$BTC is back around the $88,000 level. Any move towards the $90,000 level has faced a lot of selling,” crypto analyst and entrepreneur Ted Pillows agreed. 

“Until Bitcoin reclaims that zone, the sideways chop will continue.”

A whale has opened a $166,822,000 $BTC short position.

He has also opened $54,856,000 $ETH and $18,790,000 $SOL short positions. pic.twitter.com/LPd7Iu3EmU

— Ted (@TedPillows) December 23, 2025

Pillows noted that a whale entity had opened short positions on Bitcoin, Ether (ETH) and Solana (SOL) on the day worth almost $250 million.

Bitcoin chart plots gold comeback move

Bullish market takes, meanwhile, focused on a bullish divergence playing out on the three-day chart.

Here, Bitcoin’s relative strength index (RSI) was making higher lows while price made lower lows.

“Pretty sure the bottom is in - and $BTC will push back into six-figure territory soon enough,” trader Jelle commented on the topic.

BTC/USD chart with RSI, MACD data. Source: Jelle/X

Pillows noted that the previous two three-day bullish divergences had resulted in BTC/USD forming a bottom.

XAU/USD one-hour chart. Source: Cointelegraph/TradingView

As gold approached $4,500 per ounce, the daily BTC/XAU chart also revealed a bullish divergence forming at key support.

“Gold has pushed to fresh all-time highs, while BTC has remained stubbornly range-bound heading into Christmas week,” trading resource QCP Capital summarized in its latest “US Color” market update on the day.

“Liquidity is thinning meaningfully as traders close out positions ahead of the holidays.”

BTC/XAU one-day chart with RSI data. Source: Cointelegraph/TradingView

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision. While we strive to provide accurate and timely information, Cointelegraph does not guarantee the accuracy, completeness, or reliability of any information in this article. This article may contain forward-looking statements that are subject to risks and uncertainties. Cointelegraph will not be liable for any loss or damage arising from your reliance on this information.

Crypto hackers stole $3.3 billion in 2025, but the number of attacks fell sharply as losses became concentrated in fewer, more sophisticated supply-chain exploits, according to new data from blockchain security firm CertiK shared with Cointelegraph.

While total losses remained elevated, the decline in incident counts and a drop in median theft sizes suggest that protocol-level security is improving, pushing attackers away from simple code vulnerabilities and toward phishing and infrastructure-level attacks.

CertiK said supply-chain breaches emerged as the most damaging threat, accounting for $1.45 billion in losses across just two incidents, including the $1.4 billion Bybit hack in February.

"The Bybit exploit signals that well-capitalized, well-coordinated threat actors are becoming more active across the ecosystem," the report said, predicting a rise in the “sophistication” of supply chain attacks as attackers target more infrastructure providers.

Crypto hacks by amount and incident, yearly chart. Source: CertiK

Related: Soulja Boy token sparks backlash after Base co-founder posts purchase receipt

The number of security incidents decreased by 162 counts year-over-year, indicating that blockchain cybersecurity measures are improving despite hackers aiming for larger targets.

The average amount lost per hack stood at $5.3 million, a 66% increase from the previous year. However, the median loss — a measure less influenced by outlier incidents — fell to $103,966, down 35.75% over the same period.

Cryptop hacks by incident type and amount of losses, one-year chart. Source: CertiK

Related: Solana AI token Ava hit by launch sniping tied to deployer: Bubblemaps

Code vulnerabilities fade as “pig butchering” scams threaten crypto savings

Phishing scams became the second-largest threat, costing crypto investors a cumulative $722 million across 248 incidents.

Recently, an investor lost their entire Bitcoin (BTC) retirement fund in an artificial intelligence-fueled romance scam, also known as a "pig butchering" scam, where the con artists used prolonged emotional manipulation to convince the investors to transfer their funds.

Pig butchering victim stats, grooming time. Source: Cyvers

Pig butchering scams are a subset of phishing scams that cost the industry a collective $5.5 billion in 2024, across 200,000 individual cases.

Notably, the average grooming period for victims is between one and two weeks in 35% of cases, while 10% of scams involve grooming periods of up to three months, according to blockchain security platform Cyvers.

In June, the US Department of Justice announced the seizure of over $225 million in crypto linked to pig butchering scams.

Magazine: Coinbase hack shows the law probably won’t protect you — Here’s why

Ethena’s synthetic dollar USDe has shed about $8.3 billion in net outflows since the major liquidation event on Oct. 10, as confidence in leveraged and synthetic collateral structures continues to weaken.

According to a report from 10x Research, the October sell-off marked a turning point for the crypto market, flipping the bull phase into a period of deleveraging. The crash erased an estimated $1.3 trillion in crypto market value, nearly 30% of total capitalization at the time.

Ethena USDe (USDe), which relies on synthetic collateral and hedging mechanisms rather than traditional fiat reserves, faced a “sharp loss of confidence” under these conditions, the analysts wrote.

According to data from CoinMarketCap, USDe’s market cap stood at nearly $14.7 billion on Oct. 9. In just over two months, that value dropped to around $6.4 billion.

USDe’s market cap declines. Source: CoinMarketCap.

Related: $19B crypto market crash: Was it leverage, China tariffs or both?

USDe’s brief price depeg glitch

Following the Oct. 10 crash, USDe temporarily lost its peg and dropped to about $0.65 on Binance. Ethena Labs founder Guy Young said the brief depeg on the exchange was caused by an internal oracle issue at the exchange, not by problems with the stablecoin’s collateral, protocol or redemption mechanics.

He said USDe minting and redemptions functioned normally during the market crash, with about $2 billion redeemed in 24 hours across major decentralized finance (DeFi) venues and only minor price deviations elsewhere. At the time of writing, USDe is trading at $0.9987, according to data from CoinMarketCap.

The crypto market crash on Oct. 10 was the largest liquidation event in the crypto market’s history. More than $19 billion in crypto positions were liquidated, according to CoinGlass data, leading to a $65 billion decline in open interest.

Related: Crypto.com CEO Urges Probe After $20B Liquidations

Crypto market activity stalls

Since the crash, broader market activity has also thinned. Crypto trading volumes are down roughly 50%, while US-listed spot Bitcoin exchange-traded funds (ETFs) have seen about $5 billion in net outflows since late October.

10x Research said that the current weakness is less about retail capitulation and more about a deliberate pullback by regulated capital. As leverage and liquidity retreat, Bitcoin (BTC) has decoupled from both equities and gold, trading more like an isolated risk asset than a macro hedge.

Magazine: 2026 is the year of pragmatic privacy in crypto — Canton, Zcash and more

The Bank of Russia put forward a policy proposal that would allow non-qualified investors to buy certain cryptocurrencies.

According to a Tuesday announcement, the central bank’s proposal would allow both qualified and non-qualified investors to buy most crypto, but with limitations.

Non-qualified investors would be limited to a yet-to-be-defined set of liquid crypto after passing a knowledge test, capped at 300,000 rubles ($3,834) a year. Qualified investors would gain broad market access excluding privacy coins, also subject to a knowledge test.

Russian residents will also be able to acquire crypto on foreign platforms, pay with foreign accounts, and transfer the resulting assets through Russian intermediaries. In such cases, they will be required to notify the tax service of those transactions.

The Bank of Russia, Moscow. Source: Ludvig14, CC BY-SA 4.0

An anticipated change, broader than expected

The report follows a recent statement from the central bank’s first deputy governor, Vladimir Chistyukhin, who recently said that Russia was considering easing crypto rules.

He hinted at the potential removal of the requirement to meet the “super-qualified investor” criteria for buying and selling crypto with actual delivery.

The “super-qualified investor” category was introduced in late April, when Russia’s finance ministry and central bank launched a crypto exchange. This classification is defined by wealth and income thresholds of over 100 million rubles ($1.3 million) or an annual income of at least 50 million rubles.

Open to, but not endorsing

The central bank said that it “continues to consider cryptocurrencies a high-risk instrument.”

The announcement also reiterates that — while stablecoins and cryptocurrencies are recognized as monetary assets that can be bought and sold — they cannot be used for domestic payments.

This follows the State Duma — Russia’s legislative body — passing a law in June 2020 that bans the use of cryptocurrencies as a payment method.

Under the proposal, crypto transactions will be available through exchanges, brokers and trustees operating through their existing licenses. Specialized depositories and exchanges that work with cryptocurrencies will be subject to separate requirements.

Key takeaways

Wall Street’s adoption of Ethereum is closely tied to its ability to automate settlement through smart contracts, reducing reliance on slow, manual reconciliation processes.

Stablecoins and tokenized dollars now serve as a primary entry point for banks, allowing regulated US dollar transfers to move continuously on Ethereum-based rails.

Financial institutions often avoid naming Ethereum directly, instead describing it as neutral blockchain infrastructure that supports compliant financial systems.

Tokenized funds and real-world assets use Ethereum as a distribution and administration layer, while the underlying investments remain traditional financial products.

For years, the financial world viewed Ethereum primarily as a playground for digital art and digital assets. By 2025, however, a gradual shift had become clear. Wall Street had largely stopped treating the network as a “crypto” project and had begun using it as a foundational utility.

By late 2025, Ethereum was processing more than $5 trillion in quarterly transaction volume, a figure comparable in scale to traditional payment processors. Major institutions are now migrating value onto this digital rail, often without ever mentioning the word “cryptocurrency,” turning Ethereum into an increasingly used settlement layer in specific institutional contexts.

This article examines how the world’s leading financial institutions are quietly adopting Ethereum’s decentralized infrastructure.

Ethereum as financial plumbing, not a crypto asset

To the average observer, Ethereum is a “coin” to be traded. To Wall Street, however, it has become something far more practical: high-tech financial plumbing. In August 2025, VanEck CEO Jan van Eck labeled Ethereum the “Wall Street token,” highlighting that the network’s underlying architecture, the Ethereum Virtual Machine (EVM), is becoming a global standard for bank-to-bank settlement.

Unlike legacy systems that require manual reconciliation, Ethereum functions as a “single source of truth,” where transactions are verified by a global network of nodes rather than a central clearinghouse.

Instead of relying on routes that can take days to clear trades, institutions are using Ethereum’s smart contracts to automate much of the manual work handled by middle-office operations.

This shift enables T+0 settlement, meaning transactions clear instantly. Previously, a trade would settle on a T+2 basis, as banks exchanged messages to verify funds and positions. On Ethereum, the asset transfer and the payment occur at the same moment.

In this context, Ethereum functions as foundational infrastructure that allows the traditional financial system to operate faster, at a lower cost and with fewer errors. Because Ethereum is value-agnostic, it serves as a neutral platform where financial agreements can be codified and executed without human intervention.

Stablecoins and tokenization as the entry point

Wall Street’s adoption of Ethereum’s infrastructure is also visible in the rapid growth of “tokenized dollars.” Following the passage of the GENIUS Act in July 2025, a landmark piece of US legislation that established a clear framework for stablecoins, the total market capitalization of these assets climbed to $300 billion. For banks, stablecoins on Ethereum represent digital versions of the US dollar that can move around the clock, avoiding the settlement risk associated with traditional banking hours and weekend closures.

Traditional payment giants such as Visa and Mastercard have integrated stablecoin settlement APIs to support global payments on the network. These firms are not interacting with the speculative side of crypto. Instead, they are using Ethereum-based stablecoins to settle transactions between merchants and banks in near real time.

As banks adapt to client demand for faster cross-border transfers, the Ethereum network provides the secure infrastructure needed to move these regulated digital dollars.

Did you know? The GENIUS Act, signed into law on July 18, 2025, became the first federal framework to formally authorize US banks to issue stablecoins through subsidiaries. This shift repositioned Ethereum from a regulatory gray area into a legally compliant infrastructure layer for the US dollar.

Tokenized funds and real-world assets

The evolution of Ethereum has moved beyond payments into the tokenization of more complex investment vehicles. In December 2025, JPMorgan made headlines by launching its first money market fund on the public Ethereum blockchain. Trading under the ticker MONY, the fund allows qualified investors to access yields from traditional US Treasury securities, using Ethereum as the distribution layer.

By placing a fund like MONY on the Ethereum blockchain, JPMorgan enabled peer-to-peer transferability and daily dividend reinvestment that were previously difficult to achieve. Investors can subscribe or redeem using cash or stablecoins through institutional platforms. In this structure, Ethereum is not the investment itself. It functions as the digital wrapper that increases liquidity and operational efficiency.

This development marks a turning point in which Ethereum’s smart contracts handle much of the operational burden of fund administration, significantly reducing overhead costs. By automating yield distribution through code, Ethereum allows these funds to operate with a level of precision and transparency that legacy databases cannot easily replicate.

The strategic silence: Why Wall Street is not naming Ethereum

If you examine the marketing materials of top-tier banks, you will see terms such as “onchain liquidity,” “distributed ledgers” or “programmable payments,” yet the underlying technology is almost always Ethereum. This “invisible” adoption helps explain why Ethereum is frequently chosen by Wall Street institutions.

A key technical driver is the network effect. Much like the internet relies on standardized protocols, the financial system is converging around Ethereum’s programming standards. By late 2025, multiple reports suggested that tokenized dollars on the network were quietly reshaping how money moves between major clearinghouses.

As more assets such as treasuries, bonds and real estate are tokenized on Ethereum, the network’s utility becomes increasingly evident in institutional use cases. Since its launch in 2024, BlackRock’s BUIDL fund has become the world’s largest tokenized money market fund, deploying more than $1 billion directly on the Ethereum blockchain to enable near real-time dividend distribution.

Similarly, in late 2025, JPMorgan rebranded its blockchain division as Kinexys, facilitating more than $2 billion in average daily transaction volume through Ethereum-compatible rails.

By relying on Ethereum’s “credible neutrality,” these firms avoid the constraints of proprietary private blockchains that lack global interoperability. Instead, they treat Ethereum as a neutral and largely invisible settlement layer. As a result, the network has begun to function as a standardized operating system for global capital, regardless of whether the brand is explicitly acknowledged in boardrooms.