Welcome to This Week in Crypto, your breakdown of the biggest headlines shaping the digital asset world. From rising institutional interest to new state-level crypto laws, here’s what had everyone talking this week:
Here’s a quick look at what’s new:
- Crypto funds hit $4.4B in inflows: Institutional demand pushed crypto investment products to a new weekly record, with Ether ETPs leading the charge.
- States explore Bitcoin reserves: New Hampshire, Arizona, and Texas passed laws that allow or enable Bitcoin to be held as part of public funds—while several other states are still reviewing proposals.
- Institutions expand Bitcoin use: Some companies are incorporating Bitcoin into their financial strategies, including through lending platforms and products that follow established compliance standards.
Let’s take a closer look at what it all means for the crypto space this week!
Crypto Inflows Hit Record Highs as Ethereum Leads the Way
Crypto investment products had a big week, with a record $4.4 billion in inflows. This came as Bitcoin reached another all-time high and Ethereum exchange-traded products (ETPs) saw their largest weekly gains of the year. While some U.S. firms reported small outflows, overall participation in crypto funds remained strong.
- Total crypto ETP inflows reached $4.4 billion last week, pushing year-to-date inflows to $27 billion.
- Ether ETPs set new records, with weekly inflows hitting $2.1 billion and annual totals topping 2024’s numbers.
- Bitcoin products continued to lead, bringing in $2.2 billion, half of the week’s total inflows.
Even with a few firms like ARK Invest and Fidelity seeing outflows, the broader trend reflected growing interest across the board. Assets under management across crypto ETPs crossed $220 billion for the first time.
Some U.S. States Begin Exploring Bitcoin Reserves
Some U.S. states are beginning to pass laws that allow their governments to hold Bitcoin in reserve. So far, three states, New Hampshire, Arizona, and Texas, have approved such measures. Other proposals are still under review, while a few states have voted them down due to financial and legal concerns.
- New Hampshire passed a law allowing up to 5% of public funds to be held in digital assets with large market caps, which currently means only Bitcoin qualifies.
- Arizona updated its rules to hold crypto from enforcement actions but stopped short of broader investment laws after key vetoes.
- Texas created a Bitcoin reserve with legal protections. Only assets with a market cap of at least $500 billion qualify, which currently includes Bitcoin.
In total, 17 states still have active proposals, while 5 have rejected similar laws. Each state’s approach is different, with most focusing on strict guidelines for security and asset size. The discussion reflects growing interest but also ongoing caution about using public funds for digital assets.
Institutions Are Finding New Ways to Use Bitcoin
Bitcoin is starting to play a bigger role in how companies manage their finances. Instead of only holding it or trading it, some businesses are finding new ways to use Bitcoin within their operations. This includes everything from backing loans to building new types of financial products.
- Strategy and similar firms are using Bitcoin in convertible bonds, giving investors exposure to digital assets with added flexibility.
- Bitcoin-backed lending reached over $4 billion in 2024, offering around-the-clock access to credit across both centralized and decentralized platforms.
- Some companies are now offering structured products and tokenized funds that include Bitcoin, while following existing rules for compliance.
Some states and countries are also looking at how Bitcoin fits into their financial plans. Rules and requirements still vary, but Bitcoin is being included in more financial strategies than before.
