Happy Friday! Today’s top headlines feature record-breaking inflows into U.S. spot bitcoin ETFs, key financial revelations from the Ethereum Foundation, and Binance Labs’ strategic move into the decentralized science (DeSci) sector. Here’s a breakdown of the latest in the crypto world.
US Spot Bitcoin ETFs Hit Record Daily Net Inflow of $1.4 Billion
The U.S. spot bitcoin ETF market experienced an unprecedented surge on Thursday, recording a net daily inflow of nearly $1.4 billion. This milestone shatters the previous record of just over $1 billion set on March 12, reflecting an extraordinary wave of institutional interest.
BlackRock’s spot bitcoin ETF, IBIT, led the charge, contributing $1.1 billion of the total inflow. This inflow also pushed IBIT to surpass its previous individual record of $872 million on October 31. Adding to the frenzy, IBIT achieved a new high in daily trading volume, exceeding $4 billion.
As a result of these inflows, IBIT’s assets under management (AUM) have grown to $33.2 billion, overtaking BlackRock’s gold ETF (IAU), which stands at $32.9 billion. Notably, IBIT has reached this impressive figure in less than a year since its launch in January 2024, compared to IAU’s nearly two-decade-long history since January 2005.
Rachael Lucas, a BTCMarkets analyst, attributed this surge to strong investor confidence. “This reflects BlackRock’s reputation, bitcoin’s recent rally, and favorable market conditions,” she explained. Meanwhile, BTSE COO Jeff Mei added, “Donald Trump’s victory, combined with the Fed rate cut on Thursday, spurred institutions to make the plunge into crypto markets.” Trump’s win on Wednesday triggered a rally across equities and crypto markets, propelling bitcoin to break its all-time high.
Ethereum Foundation Reports Crypto Holdings of $789 Million
The Ethereum Foundation has disclosed that, as of October 31, it holds $970 million in total assets, of which $788.7 million (99.5%) is in cryptocurrencies, predominantly ether (ETH). This announcement comes amid heightened scrutiny from the Ethereum community, which has raised concerns over transparency following several large, unexplained ether sales.
“We choose to hold the majority of our treasury in ETH. The EF believes in Ethereum’s potential, and our ETH holdings represent that long-term perspective,” the foundation stated in its report. Nevertheless, the foundation emphasized its risk management strategy, which includes periodically selling ether in bull markets to bolster fiat reserves and ensure financial stability during market downturns.
In addition to revealing its crypto holdings, the Ethereum Foundation addressed criticisms related to researchers’ affiliations with other crypto projects. The foundation has implemented stricter conflict of interest policies, now prohibiting staff from accepting illiquid assets, such as pre-launch tokens, as compensation for outside work. These measures are designed to promote transparency and mitigate concerns about potential conflicts of interest within the Ethereum community.
Binance Labs Makes First Foray Into DeSci Sector with Investment in BIO Protocol
In another major development, Binance Labs, the venture arm of Binance, has made its debut investment in the decentralized science (DeSci) sector. The firm announced an undisclosed investment in BIO Protocol, a platform aimed at revolutionizing how early-stage scientific research is funded and commercialized.
BIO Protocol seeks to bridge the gap between scientific research and decentralized finance (DeFi) by leveraging blockchain technology to create new financial models for research funding. By integrating decentralized governance and tokenization, the platform aims to democratize access to research investments, making science more inclusive and efficient.
Binance Labs’ foray into DeSci reflects the growing trend of crypto and blockchain technologies converging with traditional sectors, including science and healthcare. The investment aligns with Binance’s broader strategy to support innovative blockchain-based projects that have the potential to disrupt established industries.
Market Insight: Trump’s Impact on Crypto and Standard Chartered’s Bullish Forecast
Political developments continue to influence the crypto market, with a Standard Chartered analyst forecasting a potential tripling of the global crypto market cap if Republicans gain full control of the U.S. Congress. Geoff Kendrick, the bank’s Global Head of Digital Assets Research, predicts that a Republican sweep could drive the crypto market cap to $10 trillion by the end of 2026, up from its current $2.7 trillion.
According to Kendrick, a Republican-controlled Congress would likely enact favorable crypto policies, including the repeal of regulations like SAB 121 and clearer stablecoin guidelines. He also mentioned the possibility of a more lenient stance from the Securities and Exchange Commission (SEC), which could accelerate the adoption of digital assets.
In addition to regulatory changes, Kendrick suggested that a U.S. bitcoin reserve, though unlikely, could have a high-impact effect on the market. His bullish outlook includes end-2025 price targets of $200,000 for bitcoin and $10,000 for ether, under the assumption of a pro-crypto political environment.
Quick Hits and Additional Highlights
- Crypto Market Trends: Despite Thursday’s record-breaking inflows into U.S. spot bitcoin ETFs, the global cryptocurrency market cap remains at $2.7 trillion, with bitcoin dominating at 56% and ether at 13.1%, according to Coingecko.
- Tokenized Assets: Standard Chartered’s Kendrick also sees significant growth potential in tokenization, crypto gaming, and decentralized physical infrastructure networks (DePin) as digital assets become more mainstream.
- Tether’s Expansion: In a separate development, Tether has entered the oil market with a $45 million trade, marking its first foray into commodities and signaling broader ambitions to diversify beyond digital currencies.
Conclusion
From record-breaking inflows into bitcoin ETFs to groundbreaking investments in decentralized science, this week has been a whirlwind for the crypto industry. As political developments and market conditions continue to shape the future of digital assets, all eyes remain on the evolving regulatory landscape and its impact on market dynamics.
Stay tuned for more updates, and as always, remember to keep an eye on the shifting tides of the crypto world.