1. Bitcoin’s Approval as ETFs
The year marked a historic milestone for cryptocurrency when Bitcoin saw its network debut nearly 16 years ago. Its institutional acceptance took a significant leap with the launch of 11 Bitcoin exchange-traded funds (ETFs) in January, setting a new benchmark in financial history.
These ETFs gained momentum driven by institutional demand, attracting over $113.5 billion in assets by year’s end. This influx bolstered Bitcoin’s price, reaching record highs of $100,000 in December—a testament to professional investor interest.
The broader market saw a surge in over-the-counter (OTC) transactions following the ETFs’ success. Kraken Exchange reported a 220% year-over-year increase in OTC markets, with Tim Ogilvie, head of institutional trading, noting its thriving status.
2. OTC Market Success of Kraken
Kraken’s expansion into OTC markets was pivotal for Bitcoin’s trajectory. The platform’s growth underscoresd the broader market’s reaction to institutional adoption, with public companies increasingly integrating Bitcoin into their balance sheets as a strategic asset.
3. Public Companies Adopts Bitcoin Beyond ETFs
Institutional investors beyond ETFs have been driving Bitcoin adoption in corporate treasuries. MicroStrategy, a leader since 2020, holds an impressive 444,000 Bitcoin in its reserves. The company aims to expand its purchases through 2025 by seeking shareholder approval for increased funding.
4. MicroStrategy’s 21/21 Plan
MicroStrategy’s strategic expansion is guided by the 21/21 Plan, a bold initiative aiming to increase Bitcoin holdings each month of every quarter. This plan reflects their commitment to leveraging Bitcoin as a strategic asset amid ongoing market developments.
5. Crypto.com’s Institutional Custody Service in the US
Crypto.com’s institutional custody service introduces a new layer of security and accessibility for US investors, offering enhanced protection for digital assets. This move underscoresd the growing need for robust custodial solutions in the sector.
6. Russia’s Crypto Mining Ban Details
The Russian government’s crypto mining ban aims to shift its economic focus from crypto to more traditional sectors like oil and gas. The ban also includes a broader regulatory framework targeting cryptocurrencies, reflecting geopolitical shifts and market dynamics.
7. IRS Stance on Staking Rewards
The IRS continues its scrutiny of staking rewards, particularly in the Tezos ecosystem, with ongoing legal challenges by the Tezos community. This highlightsd the complexity of tax regulations in the evolving crypto landscape.
8. Crypto Biz Newsletter Update
Crypto Biz provides a weekly snapshot of key trends in blockchain and crypto, offering insights into market movements and regulatory shifts. Subscribers can expect updates on major developments each Thursday, keeping them informed about the dynamic crypto ecosystem.
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