Institutional Weekly: Bitcoin Crosses $100K, Ripple Overtakes Tether, and Trump Picks Pro-Crypto SEC Chair

Takeaways

• Bitcoin crosses $100K milestone: Bitcoin surged to an all-time high of $104,000, marking a 50% rise in 30 days, driven by ETF inflows and institutional adoption.  

• XRP overtakes Tether in market cap: XRP climbed to the third-largest cryptocurrency by market cap, buoyed by regulatory optimism and stablecoin developments.  

• Trump nominates pro-crypto SEC chair: President-elect Donald Trump’s selection of Paul Atkins signals a likely shift toward a more favorable regulatory environment for digital assets.  

• Ethereum inflows outpace Bitcoin: Ethereum investment products saw record-breaking $634 million weekly inflows, highlighting growing interest in staking and spot ETFs.  

• MicroStrategy expands BTC holdings: MicroStrategy purchased 15,400 BTC, raising its total holdings to 402,100 BTC, worth $39 billion, as it ramps up its accumulation strategy.  

• South Korea’s crypto market spikes: $34 billion in trading volume followed South Korea’s brief martial law declaration, reflecting heightened volatility and uncertainty. 

Bitcoin Surges Past $100K, Setting a New All-Time High

Bitcoin reached a significant milestone this week, surpassing $100,000 for the first time. The cryptocurrency peaked at around $104,000 on Wednesday night before dipping slightly below $100,000 by Thursday afternoon. This marks a nearly 50% increase in bitcoin’s value over the past 30 days, driven by steady inflows into spot bitcoin ETFs, aggressive purchasing by Michael Saylor’s MicroStrategy, and anticipation of a crypto-friendly administration under president-elect Donald Trump.

This historic surge has revitalized the crypto community, marking a stark recovery from the 2022 crypto winter, during which bitcoin dropped below $17,000. Analysts remain optimistic, with near-term price targets of $120,000 and projections of $200,000 by 2025. Traditional financial institutions have also embraced bitcoin’s ascent, signaling a shift in sentiment towards digital assets.

At the DealBook Summit on Wednesday, Federal Reserve Chair Jerome Powell further validated bitcoin by likening it to digital gold. Highlighting its volatility and non-competitive stance against the dollar, Powell positioned bitcoin as an alternative to gold rather than a mainstream currency. The market price of bitcoin in gold terms also hit an all-time high of 39 ounces, reinforcing its growing status as a modern-day store of value.

XRP Surpasses Tether, Becoming the Third-Largest Cryptocurrency

Earlier this week, XRP reached a significant milestone, overtaking Tether’s USDT to become the world’s third-largest cryptocurrency by market capitalization, following bitcoin and ethereum. XRP’s market cap climbed to $141 billion, surpassing USDT’s $134.5 billion, with its price surging 30%. Over the past month, XRP has seen an extraordinary 364% growth, driven by bullish market sentiment and key developments in Ripple's ecosystem. Earlier this week, XRP also exceeded Solana in market cap, further solidifying its position among the top cryptocurrencies.

Analysts credit XRP’s momentum to reports that the New York Department of Financial Services (NYDFS) is nearing approval of Ripple’s RLUSD stablecoin. Additionally, the announcement of SEC Chair Gary Gensler’s resignation in January has boosted market optimism, as Ripple has been embroiled in a lawsuit with the SEC since 2020 over allegations of unregistered securities offerings. Investors view Gensler’s departure as a signal that the lawsuit could be resolved, removing a key obstacle to Ripple’s growth.

With regulatory clarity potentially on the horizon, XRP has gained increased attention from institutional players. The possibility of spot XRP ETFs, with applications from firms like 21Shares and Bitwise, further highlights the growing interest in the token. Analysts believe these developments, coupled with Ripple’s focus on stablecoin initiatives and ecosystem growth, position XRP for continued upward momentum.

Trump Names Paul Atkins as SEC Chair, Signaling a Pro-Crypto Shift

President-elect Donald Trump has nominated Paul Atkins, a former SEC commissioner and advisor to financial and cryptocurrency firms, to lead the Securities and Exchange Commission. This marks a significant shift in Washington’s approach to crypto regulation, with Atkins expected to pursue a deregulatory agenda that emphasizes innovation and eases enforcement actions. The move follows substantial financial backing from the crypto industry for Trump’s campaign, signaling a strategic alignment between the administration and digital asset advocates. Hours after the announcement, bitcoin surged past $100,000, reflecting the market's optimism about the regulatory shift.

Atkins, who served as an SEC commissioner from 2002 to 2008, is known for his criticism of heavy penalties on corporations and his support for policies that prioritize investor interests without stifling market innovation. In recent years, Atkins has advised financial and crypto firms globally through his consultancy, Patomak Global Partners, and co-chaired the Token Alliance, a Chamber of Digital Commerce initiative focused on digital asset regulation. His track record suggests a leadership style that balances oversight with fostering capital market growth, positioning the SEC as a potential ally for the crypto industry under his tenure.

This nomination comes as a stark contrast to outgoing SEC Chair Gary Gensler's approach, which involved aggressive actions against major crypto players like Coinbase, Ripple, and FTX. Under Gensler, the SEC initiated numerous fraud cases and pursued strict compliance measures, creating tension with the industry. With Atkins poised to take the helm, industry leaders anticipate a more collaborative regulatory environment that could lower barriers for digital asset firms, accelerate institutional adoption, and restore confidence in the U.S. as a hub for crypto innovation.

Ethereum Investment Funds Break Records, Surpassing Bitcoin Inflows

Ethereum-based investment products have reached a historic milestone, recording $634 million in weekly inflows and $2.2 billion in annual inflows so far, according to CoinShares' latest report. This surge has already eclipsed the previous $2 billion annual inflow record set in 2021, fueled by growing interest in US spot Ethereum ETFs. Industry leaders like BlackRock, Fidelity, and Grayscale contributed significantly, with spot Ethereum ETFs alone accounting for $466.5 million of last week's inflows. As of Friday, Ethereum-focused funds collectively managed $11 billion in assets under management (AUM), outpacing Bitcoin-focused funds in weekly inflows for the first time.  

This shift marks a turning point for Ethereum, bolstered by renewed optimism about its staking yields and its risk-reward appeal. Analysts at Bernstein highlighted Ethereum’s momentum, pointing to expectations of a more crypto-friendly regulatory landscape under the anticipated SEC leadership in the Trump administration. Despite initial outflows from Grayscale’s ETHE fund, US spot Ethereum ETFs have drawn $583.8 million in inflows, surpassing Bitcoin ETFs, which recorded $332.9 million over the same period.  

CoinShares' Head of Research, James Butterfill, described the inflow surge as a “dramatic turnaround” for Ethereum. Analysts see this trend as a reflection of growing investor confidence in Ethereum’s potential, supported by its expanding use cases and enhanced staking opportunities. As the year closes, Ethereum appears poised to solidify its standing as a dominant force in the digital asset investment landscape. 

MicroStrategy Acquires $1.5 Billion in Bitcoin, Reaches 400K BTC Milestone

MicroStrategy has solidified its position as the largest corporate holder of Bitcoin, acquiring an additional 15,400 BTC for $1.5 billion between November 25 and December 1. This latest purchase brings the company's total Bitcoin holdings to an impressive 402,100 BTC, valued at approximately $39 billion at current market prices of $97,000 per Bitcoin. Executed at an average price of $95,976 per Bitcoin, this marks the fourth major acquisition by the company in as many weeks, underscoring its aggressive accumulation strategy.  

Founded in 1989 as a software company, MicroStrategy has transformed itself into a "Bitcoin development company," securitizing its Bitcoin holdings to provide investors indirect exposure to the asset through its Nasdaq-listed shares. Since its first $250 million Bitcoin purchase in 2020, co-founder and Executive Chairman Michael Saylor has positioned Bitcoin as the ultimate store of value, citing its scarcity and annual appreciation as key factors for shareholder returns. With Bitcoin prices surging, MicroStrategy plans to raise an additional $42 billion to continue expanding its Bitcoin reserves, reaffirming its unwavering commitment to the cryptocurrency. 

Martial Law Triggers $34 Billion in Crypto Trading Volume in South Korea

South Korea's cryptocurrency market experienced an extraordinary surge in activity, with trading volumes exceeding $34.2 billion within 24 hours following the emergency declaration of martial law by President Yoon Suk-yeol on Tuesday. The announcement, prompted by perceived threats to democracy from "anti-state" forces, led to widespread panic-selling on major exchanges, including Upbit, Bithumb, and Coinone. Upbit alone processed $27.25 billion in trades, as Bitcoin prices briefly dropped to 88 million won ($62,182) before stabilizing. The massive trading activity resulted in temporary outages across multiple platforms.  

The martial law declaration, which lasted just six hours, was annulled during an emergency late-night session of the National Assembly, where lawmakers unanimously voted to revoke it. The opposition has since announced plans to file sedition charges against President Yoon and other officials, arguing that the move was unconstitutional. In his defense, Yoon stated, “I declared martial law to protect our democracy,” before withdrawing troops following the assembly’s resolution. The government officially lifted the martial law shortly thereafter.

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