Market Movement:

  • Bitcoin ETFs attracted $352 million in inflows last week, representing about half of total crypto fund investments of $716 million.
  • Ethereum is up almost 11% over the last week.

Key Events:

  • BlackRock filed an S-1 registration statement with the SEC for a new staked Ethereum trust ETF, ETHB.
  • BitMine Immersion Technologies purchased $429 million worth of Ethereum last week, marking its largest ETH purchase in nearly two months.

Trading Signals:

  • Strategy spent nearly $1 billion on Bitcoin last week, acquiring 10,624 BTC.
  • Total crypto assets under management have rebounded 7.9% from November lows to $180 billion.

Narrative Shifts:

  • Short-Bitcoin products experienced $18.7 million in outflows, the largest since March 2025, suggesting a shift in investor sentiment.
  • Tether’s USDT stablecoin has secured regulatory recognition as an approved fiat-referenced token in the Abu Dhabi Global Market.

Risk Alerts:

  • Analysts have lowered price targets for Strategy following its recent Bitcoin purchase.

Opportunities:

  • Tether's recognition across multiple blockchains enhances its potential for regulated use in the financial sector.
  • The rebound of total crypto assets under management indicates potential growth opportunities in the market.

Flows & Positioning

BlackRock Files for Staked Ethereum ETF, Expanding Institutional Offerings

BlackRock has filed an S-1 registration statement with the SEC for a new Ethereum staking ETF, named ETHB. This fund aims to track Ethereum's price while incorporating rewards from staked ETH, marking a significant expansion in BlackRock's crypto ETF offerings, which already include successful spot Bitcoin and Ethereum ETFs. The move comes as institutional interest in crypto continues to grow, with BlackRock's previous ETFs demonstrating strong performance. This new product could attract further investments into Ethereum, especially as staking becomes a more popular method for generating returns in the crypto space.

Bitcoin ETFs Attract $352 Million Amid Market Recovery

Bitcoin ETFs have seen a substantial inflow of $352 million last week, accounting for nearly half of the total $716 million in crypto fund investments. This marks a notable rebound as total crypto assets under management have increased by 7.9% from November lows, now sitting at $180 billion, although still below the all-time high of $264 billion. Short-Bitcoin products, however, experienced $18.7 million in outflows, indicating a shift in sentiment as investors appear to believe that negative sentiment may have reached its peak. This influx into Bitcoin ETFs highlights the growing institutional confidence in the asset, potentially setting the stage for further price appreciation.

Major Corporate Moves: Strategy's $963 Million Bitcoin Purchase

Strategy has made headlines by purchasing 10,624 BTC for approximately $963 million, marking its largest Bitcoin acquisition in over 100 days. This brings the company's total Bitcoin holdings to around 660,600 BTC, valued at approximately $60 billion based on current prices. This significant investment reflects a strong belief in Bitcoin's long-term value, especially as the asset trades around $90,000. The purchase could signal renewed institutional conviction in Bitcoin, potentially influencing market dynamics as other investors observe these large-scale acquisitions.

Market Dynamics: Bitcoin's Price Action and Technical Levels

Bitcoin is currently trading around $90,000, facing resistance levels that have proven challenging to breach. The recent price action shows a drop of 28% from its October peak, with traders closely monitoring ETF flows and macroeconomic indicators for signs of support. As Bitcoin hovers near key technical thresholds, including the ETF breakeven level, market participants are watching for potential catalysts, such as the upcoming Federal Reserve rate cut, which could influence liquidity and investor sentiment in the crypto markets.

Corporate & Capital Markets

Michael Saylor’s Strategy Buys $962M Bitcoin

Michael Saylor’s Strategy has purchased $962 million in Bitcoin, despite facing pressure from MSCI. This move raises questions about whether the risk associated with MSCI is overstated as the Strategy continues to double down on BTC.

CoreWeave Plans $2B Note Offering

CoreWeave is planning a $2 billion convertible note offering as it aims to scale its AI infrastructure. This follows a yearlong pursuit of Core Scientific for added power capacity.

Ripple Raises $500M, Achieves $40B Valuation

Ripple has successfully raised $500 million, demonstrating that its post-SEC shift is effective. This funding has contributed to Ripple’s valuation reaching $40 billion, as Wall Street shows increased interest under a deal that reportedly offers rare protections and guaranteed returns.

Paradigm Invests $13.5M in Stablecoin Startup Crown

Crypto VC Paradigm has made a $13.5 million investment in the stablecoin startup Crown, marking its first investment in Brazil. Crown claims that its Brazilian real-pegged stablecoin has become the world's largest emerging market stablecoin.

On-Chain & Network

Yearn Finance Exploit Results in $9 Million Loss, Partial Recovery Announced

Yearn Finance has reported a significant security incident involving a multi-phase numerical bug and unsafe math that allowed exploiters to steal approximately $9 million in assets. The protocol has confirmed a partial recovery of the stolen funds and has outlined a remediation plan to address the vulnerabilities that led to the exploit. This incident highlights the ongoing risks associated with DeFi protocols and the importance of robust security measures in the rapidly evolving crypto landscape.

Ripple Executive Advocates for XRP Ledger Improvements

Luke Judges, a Ripple executive, has suggested that the XRP Ledger could benefit from adopting strategies similar to those of Solana to enhance its competitiveness among layer-1 networks. While specific technical improvements or metrics were not detailed, the emphasis on leveraging developer tools and technology indicates a potential push for upgrades that could improve network performance and user engagement.

OCC Advocates for Equal Treatment of Crypto Firms in Banking

Jonathan Gould, head of the US Office of the Comptroller of the Currency (OCC), has emphasized the need for equal treatment of digital asset firms in the bank chartering process. He noted that the OCC has received about 14 charter applications this year, including from digital asset firms, and highlighted the agency's experience in supervising crypto-native national trust banks. This stance could pave the way for enhanced regulatory clarity and support for crypto firms seeking to operate within the traditional banking framework.

Macro & Policy

Tether’s USDT Gains Regulatory Recognition in Abu Dhabi

Tether's USDT stablecoin has received regulatory approval as a fiat-referenced token in the Abu Dhabi Global Market (ADGM), allowing licensed institutions to conduct regulated activities involving USDT across multiple blockchains including Aptos, Celo, and Cosmos. This recognition expands upon earlier approvals for USDT on Ethereum, Solana, and Avalanche, emphasizing the UAE's commitment to becoming a global hub for regulated digital assets. Tether's CEO, Paolo Ardoino, highlighted that this move reinforces the importance of stablecoins in the financial landscape and strengthens Abu Dhabi's position in compliant digital finance.

CFTC Approves Bitcoin and Ethereum as Collateral in Derivatives Trading

The Commodity Futures Trading Commission (CFTC) has approved a pilot program allowing regulated firms to use Bitcoin (BTC), Ethereum (ETH), and USDC as collateral for derivatives trading. This initiative builds on a previous CFTC effort aimed at expanding the use of tokenized collateral in derivatives markets, particularly focusing on stablecoins. The recognition of these digital assets as collateral could significantly enhance their utility and acceptance in traditional financial markets.

Canada Revenue Agency Collects $72 Million in Crypto Taxes

The Canada Revenue Agency (CRA) has successfully recovered over $72 million in unpaid taxes from cryptocurrency audits over the past three years. Despite this recovery, the agency has not pursued any criminal charges related to cryptocurrency tax evasion since 2020, highlighting challenges in enforcing compliance within the crypto sector. The high non-compliance rates among cryptocurrency users continue to be a significant concern for tax authorities.

Michael Saylor Advocates for Bitcoin-Backed Banking Systems

Michael Saylor has proposed that nation-states could utilize Bitcoin reserves and tokenized credit markets to create regulated banking systems offering higher yields. This pitch underscores the potential for Bitcoin to serve as a foundational asset for a new class of yield-bearing credit products, which could reshape traditional banking frameworks.

UK FCA Seeks Feedback on Crypto Investment Reforms

The UK's Financial Conduct Authority (FCA) has requested feedback from companies involved in digital assets regarding proposed investment reforms. This consultation process is set to take place in February and March 2026, indicating a proactive approach by UK regulators to refine their framework for cryptocurrency investments.

Security & Incidents

Ninth Defendant Pleads Guilty in $263M Crypto Theft Ring

A 22-year-old California man became the ninth defendant to plead guilty in a RICO-designated crypto-theft ring tied to more than $263 million in stolen Bitcoin. Prosecutors state that Evan Tangeman helped launder millions, securing luxury rentals under false identities and converting stolen crypto into bulk cash for the group. Authorities depict the Social Engineering Enterprise as a coordinated network of criminals.

San Jose Widow Loses Nearly $1 Million in Crypto Scam

A San Jose widow lost nearly $1 million after a scammer posing as a romantic partner pushed her into fake crypto investments. The victim, Margaret Loke, only realized the scam after asking ChatGPT if the investment offer made sense. The scheme drained her retirement accounts and left her at risk of losing her home, according to a report by San Jose-based ABC7 News.

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