Trading Desk Insights
The total crypto market cap has officially broken above the $4 trillion mark for the first time, fueled by a sharp rally in altcoins. ETH has taken center stage, while XRP hit fresh all-time highs, adding momentum to the move. Funding rates are ticking higher across the board, and open interest remains elevated near record levels, underscoring aggressive positioning. Over $800 billion in liquidations have been recorded in the past 24 hours, skewed heavily toward short sellers.
ETH is drawing particular strength from the regulatory front, with the passage of the GENIUS Act, a stablecoin bill targeting yield-bearing tokens. Markets are viewing this as a net positive for ETH and its broader DeFi ecosystem. This comes on the heels of another major milestone: the House approval of the CLARITY Act, which introduces a comprehensive framework for crypto market oversight.
Options flow confirms the bullish bias. Call interest in BTC is concentrated at the 120k, 130k, and 140k strikes, with 140k leading in notional volume. ETH’s upside bets are clustering around the 4k level. This points to rising conviction in the upside and growing demand for leveraged long exposure.
On the ETF side, spot BTC ETFs have already attracted $5.4 billion in inflows this month, marking the strongest month since the U.S. elections. ETH ETFs are also seeing meaningful traction, bringing in $2.9 billion in net inflows, the highest monthly figure since August 2024. Notably, ETH ETFs outpaced BTC ETFs in daily flows yesterday, adding to the altcoin outperformance narrative.
Meanwhile, U.S. equity markets remain firm. Stock futures edged higher Friday after the S&P 500 notched another record close. Optimism around corporate earnings and robust macro data continues to support risk-on sentiment across traditional and digital asset markets.
The News Room
Nasdaq applies to include staking in BlackRock’s Ethereum ETF
Nasdaq has filed a rule amendment to allow BlackRock’s proposed Ethereum ETF to include a “staking” provision, enabling direct staking of ETH—either in-house or via trusted providers—within the fund structure. This would permit BlackRock to treat staking rewards as income, contingent on compliance with SEC guidance on staking arrangements.
Congress moves forward on digital asset regulations with GENIUS & related acts
Congress is advancing a trio of crypto-related bills aimed at regulatory clarity: the GENIUS Act (focusing on stablecoin issuance and oversight), the CLARITY Act (defining crypto under CFTC jurisdiction), and related measures. The GENIUS Act mandates stablecoin issuers maintain high-quality liquid reserves, implement AML/KYC frameworks, and provide consumer support and redemption rights at par—while establishing dual federal-state supervision.
New Donald Trump plan could unlock $9 trillion for crypto and end taxes on small Bitcoin payments
A new proposal tied to Donald Trump’s crypto agenda suggests sweeping reforms to unleash up to $9 trillion in capital flows into digital assets. Key components include tax exemptions on small bitcoin transactions and incentives to integrate crypto into 401(k) retirement plans. Though politically charged, the plan reflects Trump’s broader pro-crypto pivot during his administration.
Crypto Charts
ETF Flow
Disclaimer
This research is for informational use only. This is not investment advice. Other than disclosures relating to Secure Digital Markets this research is based on current public information that we consider reliable, but we do not represent it is accurate or complete, and it should not be relied on as such. The information, opinions, estimates, and forecasts contained herein are as of the date hereof and are subject to change without prior notification. We seek to update our research as appropriate.
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