There are several notable changes occured in the crypto space previous week. Brush up the last week news.
From record-breaking inflows into crypto ETPs following a pro-crypto executive order by President Trump, to growing stablecoin dominance and significant legal shifts, there are pivotal changes this week. Let’s break down the major highlights.
Crypto ETPs (Exchange-traded product) had a strong week, fueled by the U.S. President Trump’s pro-crypto executive order. Last week saw $1.9 billion inflows into crypto ETPs, bringing the YTD (Year to date) total to $4.7 billion. Bitcoin ETPs attracted $1.6 billion, making up 92% of YTD inflows.
Bitcoin's new all-time high contributed to a rebound in short Bitcoin ETPs. Ether-based ETPs also saw inflows of $205 million, continuing their recovery. Solana, Chainlink, and Polkadot had notable inflows. BlackRock led with $1.5 billion in inflows, while Grayscale faced $124 million in outflows.
Grayscale has filed with the SEC to convert its XRP Trust into an exchange-traded fund (ETF) to be listed on the New York Stock Exchange (NYSE). The XRP ETF would track XRP's performance, holding over $16 million worth of XRP. XRP's growing popularity is reflected in increased trading volumes on its decentralized exchange (DEX), which surpassed $1 billion in January.
The stablecoin market cap reached a record high of $211 billion in January 2024, a 73% increase from August 2023. USDC has been gaining ground, with its market cap rising by over 120% since November 2023, reaching $53.4 billion. USDC now holds 24.6% of the stablecoin market, while Tether's USDT maintains dominance with a market cap of $139.4 billion.
USDC's growth has been fueled by increased demand and a spike in trading volumes. The coin rebounded from a 45% drop in 2023 following the Silicon Valley Bank collapse.
El Salvador is rushing a new Bitcoin law to comply with a deal made with the International Monetary Fund (IMF). The legislation aims to address IMF concerns about Bitcoin’s volatility and its use in the country’s economy. The new law could regulate Bitcoin adoption while fulfilling IMF requirements, signaling a shift in the nation’s approach to the cryptocurrency.
Nvidia's stock slump, coupled with upcoming $100B crypto IPOs, could potentially fuel a Bitcoin rally. Analysts suggest that reduced AI spending might ease inflation, making it easier for the Federal Reserve to adopt more favorable policies, benefiting Bitcoin.
A pipeline of high-profile crypto firms planning IPOs in 2025 could further incentivize keeping Bitcoin prices elevated to secure inflated valuations. This could result in significant price movements for Bitcoin in 2025.
Starting February 1, 2025, the Indian Income Tax Department will apply new rules for search cases involving virtual digital assets (VDAs), including cryptocurrencies. These rules allow assessments to go back up to six years from the search date. The amendments are part of the Finance Act, 2024, ensuring VDAs are included in undisclosed income during block assessments.
These are the major highlights of the week in the crypto space. Stay tuned for upcoming crypto highlights.
