Bitcoin ETFs Surge Despite Market Volatility, Crypto Czar Envisions a 'Golden Age'

TL;DR

• US spot Bitcoin ETFs took in $5.25B in January, driven by BlackRock and Fidelity.
• The US Crypto Czar said there’s a “golden age” for digital assets as new policies and stablecoin legislation come into place.
• BlackRock now has 5% of Strategy’s stake, confidence in their growing Bitcoin strategy.
• VanEck thinks Solana could hit $520 by year end, as market grows and smart contract platform dominance increases.
• The SEC has reassigned a top crypto litigator to the IT department, indicating a less adversarial approach.

US Spot Bitcoin ETFs Bring In More Than $5B in January

U.S. spot Bitcoin ETFs saw $5.25 billion in inflows in January, up from $4.53 billion in December, led by strong demand for BlackRock’s iShares Bitcoin Trust ETF (IBIT) and Fidelity’s FBTC. IBIT led the charge with $3.23 billion in inflows, bringing its assets to $59.39 billion, while FBTC added $1.28 billion, growing its assets to $21.76 billion. This is despite the market uncertainty and no immediate regulatory clarity post Trump’s re-election. But the spot crypto ETF momentum is strong and with the SEC approving innovative products like Bitwise’s spot hybrid Bitcoin-Ethereum ETF, speculation is mounting that more crypto related ETFs, including XRP and potentially Solana products, could hit U.S. markets in 2025.

US Crypto Czar Says It’s a Golden Age for Digital Assets

US crypto czar David Sacks spoke to lawmakers recently and outlined his plan to reshape the digital asset policy framework. He emphasized the need for stablecoin legislation and creating an environment that fosters crypto innovation and reduces long standing regulatory hurdles. Sacks said the administration wants to align digital asset policies with institutional investors and ultimately create a more robust crypto ecosystem.

The reforms will simplify existing regulations and reduce enforcement pressure which could attract more institutional participation and capital into the space. Sacks’ “golden age” for crypto means a supportive regulatory environment could stabilize and grow the market even as global uncertainty affects short term price movements.

BlackRock Increases Stake in Strategy

Asset management giant BlackRock has increased its stake in Strategy (formerly MicroStrategy) from 4.09% to 5% as per its latest SEC Schedule 13G filing. As of December 31, 2024, BlackRock owns 11.26 million shares—an increase from 9.48 million shares at the end of September—valued at approximately $584 million. This additional purchase brings the overall stake to around $3.67 billion, a significant institutional vote of confidence in Strategy’s Bitcoin strategy.

Strategy is continuing to accumulate Bitcoin, currently holding over 471,000 BTC worth more than $46 billion. Despite reporting a net loss recently, the company is focused on growing its Bitcoin reserves long term. BlackRock’s increased stake means more institutional investors are looking to get exposure to Bitcoin as a core treasury asset.

VanEck Sees Solana at $520 by Year-End

U.S. investment manager VanEck thinks Solana could hit $520 by the end of 2025—up 165% from the current price of around $195.5. This is based on an autoregressive model that expects Solana’s market cap to be around $250 billion with 486 million floating tokens. Solana has grown 102% in the last year and the forecast reflects the strong growth expectations within the smart contract platform space.

VanEck attributes Solana’s growth to its strong developer ecosystem, increasing DEX volumes and rising revenues which will help it increase its market share in the smart contract platform space from 15% to 22%. The forecast also includes macroeconomic trends such as U.S. M2 money supply growth which historically correlates with crypto market expansion. Previous predictions from VanEck have been scaled back but this one is slightly more optimistic given the volatile market.

SEC Moves Top Crypto Litigator to IT Department

The Securities and Exchange Commission has reassigned Jorge Tenreiro—its former deputy chief of crypto assets and cyber unit—to the computer systems management department. Tenreiro was a key figure in high profile cases against Ripple and Coinbase and has been with the SEC for over 11 years. This move is part of the broader regulatory realignment under new leadership.

Industry sees this as a sign that the SEC is moving away from aggressive enforcement and towards building out its technological infrastructure and regulatory oversight. The agency is launching a new crypto task force to clarify asset classifications and product registration which could mean a softer approach. While this might bring more clarity to the market, critics are warning that reducing enforcement could also reduce deterrence against bad actors.