Retail is uber bearish on ETH rn, but they are missing the forrest for the trees. Institutional ownership of ETH ETFs increased from 4.8% in Q3 to 14.5% in Q4. The institutions are coming for ETH.

92% of economists were wrong. In contrast, more than half (52%) on Polymarket were right. Wisdom of crowds beating the "experts."

🚨 13F Filing Update 🚨 Notable holdings from BlackRock's bitcoin ETF as of their latest filings (Dec 31): - Goldman Sachs: 24,077,861 shares worth $1.35B (+89% increase) - Millennium Mgmt: 23,498,001 shares worth $1.32B (+116% increase) - Abu Dhabi Sovereign Wealth Fund: 8,235,533 shares worth $461M (New position) - State of Wisconsin Investment Board: 6,060,351 shares worth $339M (+110% increase) - Tudor Investment Corp: 4,428,230 shares worth $248M (+409% increase)

As ETH hits a new ATH, reminder that it holds the record for the fastest major asset to reach $500B market value (established in 2021).

Built on Ethereum

Met with a $500B US private bank to discuss investing in bitcoin. The most urgent question their CIO had: "Clients are asking about bitcoin more than ever before, and our advisors don't have good answers. How can you help us educate our advisors quickly?" Education is critical for adoption of a nascent asset class. Bitwise has been showing up every day for the past 7 years to do just that. Today I'm meeting with another bank branch. Onwards and upwards.

Over the past week U.S. spot ETH ETF inflows have more than doubled those of BTC ETFs at $409M vs $173M

This is why ETH got pounded this week. Shorts increased to highest on record.

Just wrapped a meeting with an RIA who: 1Y Ago: 1% max allocation to BTC for select clients Jan 2024: Upped to 2% max Today: Max allocation is now 10%, modeled across all clients, now doing BTC as well as ETH Advisors are adapting quickly

How can $COIN get to $1,000 in this #crypto cycle? • 2023 Net Revenue Estimate: $2.6B • 2025 Net Revenue Estimate: $14.5B • 2023 Monthly Transacting Users Estimate: 8.5M • 2025 Monthly Transacting Users Estimate: 32M • 2023 Assets on Platform Estimate: $130B • 2025 Assets on Platform Estimate: $500B

Stripe holds a 21% share of the global payment processing solutions market, making it the world's second most used payment solution. USDC will integrate with Stripe and settle on Base, Coinbase's L2 on Ethereum. The mainstream era of stablecoins, made possible by Ethereum.

BTC's rise fueled by record-breaking ETF inflows and SOL’s emergence as a retail darling have left ETH largely overlooked this year. But ETH stands to benefit from several big trends in 2025. Read the 🧵👇 from my latest CIO Memo on why I'm calling ETH the comeback kid of 2025.

Institutional ownership of ETH ETFs increased QoQ, while BTC ETFs basically stayed the same: - ETH ETFs overall institutional ownership: - Q3: 4.8% - Q4: 14.5% - BTC ETFs overall institutional ownership: - Q3: 22.3% - Q4: 21.5%

State of Michigan becomes first state pension fund to allocate to ETH Latest 13F shows Michigan's pension held its BTC ETF exposure of $7M, and bought $10M of ETH ETFs. Institutional investors are coming for both BTC and ETH!

Ethereum might be lagging other assets this year, but remember the tortoise and the hare—slow and steady wins the race. Don't underestimate it, its where major institutions are building and is setting up for strong outperformance in 2025.

How many institutions does it take to turn on the mainstream crypto lightbulb?

$COIN will benefit tremendously from Trump’s win. Coinbase is the leading US public crypto company and Trump will usher a new era of leadership for the US in crypto. This win turbocharges Coinbase to become a big tech company. Future of US fintech, meet Coinbase.

Who’s the sleeping giant inside $COIN that grew 14x but was overlooked by analysts during the Q1 earnings release? @base, Coinbase’s self-incubated L2. Coinbase derived $15.5M in sequencer fees from Base in Q1, up from $1.1M in Q4. While that’s a meager 1% of total revenues, Base is growing at an exponential rate. 🧵👇 on why Base could be the key to Coinbase’s future growth and what that could mean for $COIN

Had a crypto 101 meeting with 50 Investment Officers from a $600 billion financial services firm yesterday: 4 were hardcore anti-crypto 4 were decidedly pro-crypto 42 were eager to learn and posed many great questions Many of those 42 came up to me after and asked for resources to learn more and stay up-to-date with developments. Tides are shifting, the horizon is bright.

Stripe and Circle announcing their own L1s….feels like we’re going back to 2019. Get with the program folks, it’s called Ethereum.

BlackRock CEO Larry Fink says he wants the SEC to approve the tokenization of bonds and stocks. Bullish for Ethereum.

$COIN app downloads +291% and daily active users +45% in Feb, but per the chart, we're not even close to peak usage from last cycle. BTC going mainstream this cycle + Coinbase international expansion focus in 2024 = a ton more users left to onboard. Trading volume on $COIN going higher from here.

$2.3B net inflows over past 3 weeks vs $26M over preceding 4 months. Investors are gearing up for ETH's resurgence in 2025.

$COIN about to be in every portfolio in America as a result of Capital One Financial acquiring Discover Financial

$COIN Q4 2024 Earnings Recap: • Total Rev: $954M / 42% QoQ | $3.1B / -3% YoY • Transaction Rev: $529M / 83% QoQ | $1.5B / -35% YoY • Subs/Svcs Rev: $375M / 12% QoQ | $1.4B / 75% YoY • Other Rev: $49M / -4% QoQ | $182M / 301% YoY • Net Income: $273M / 12,153% QoQ | $95M / 104% YoY Stay tuned for more coverage post earnings call/full financials release

BTC vs ETH ETFs Day 1 Comparison: Total ETH flows ($108M) were 16% of BTC flows ($655M), but 79% if you exclude the outflows from ETHE ($484M)/GBTC ($95M) conversions. ETHE outflows likely larger because it was already trading at NAV on conversion, while GBTC was still at discount (h/t @JSeyff). Bottom line: while this is a marathon, not a sprint, demand for ETH surpassed expectations on day 1. Great setup for the road ahead, looking bullish for the projections from @Matt_Hougan: experts.bitwiseinvestments.c…

We are truly crossing the chasm into the mainstream era of crypto. Who would've expected a state-owned bank to offer staking in 2025? Not me.

1/ Circle's IPO is raising $1.1B, ranking it in the top 10 IPOs of 2025 by issuance size. The offering of $CRCL priced at $31/share, giving Circle a fully diluted valuation of ~$8.1B. Circle's USDC has ~30% of the stablecoin market, with $61B in circulation.

ETH ETF inflows beat BTC ETFs on a weekly basis for the first time ever, by a huge margin! Week of Jul 21-25: - ETH ETFs: $1.85 billion - BTC ETFs: $72 million

1/ Stablecoins hold ~1% of US Treasury bills today, but that could soon grow to 15%, ranking them in the top 3 holders. A thread.

Why Ethereum? It's the most battle-tested, secure, and decentralized of the smart-contract platforms. It’s been around since 2015 and has established itself as a leader in dApps, smart contracts, and tokenization. It currently holds a commanding 81% market share in tokenized assets, and its long track record and large, distributed validator network gives asset managers confidence in its security and reliability as they migrate assets on-chain.

Just presented a webinar to over 700 financial advisors and a majority want to allocate to crypto over the next 6 months, but 70% of them are still not allowed to by their firm. Over the next 6 months we'll likely see accelerating inflows into spot crypto ETFs as wirehouses and more RIAs complete due diligence and give platform approvals.

Monster quarter for $COIN, highlights: - 89% QoQ Rev Growth - 108% QoQ Net Income Growth - 137% QoQ Trading Volume Growth - 46% QoQ Assets on Platform Growth

$COIN Q3 2025 Highlights - Total Revenue: $1.9B (55% YoY) - Net Income: $433M (477% YoY) - Transaction Revenue: $1B (83% YoY) - Subscription/Services Revenue: $747M (34% YoY)

Coinbase continued growing its crypto stockpile in Q1: - BTC holdings grew 35% QoQ to 9,267 - ETH holdings grew 19% QoQ to 137,334

Investors bought the bigger dip in Ethereum vs Bitcoin yesterday, with ETH ETFs in the US seeing net inflows of $48.7M while BTC ETFs experienced net outflows of $168.4M.

Based on filings as of Dec 31, here is the overall institutional vs retail ownership of BTC/ETH ETFs: - BTC ETFs: 21% institutional | 79% retail - ETH ETFs: 15% institutional | 85% retail

🚨 13F Filing Alert 🚨 The institutional adoption of BTC ETFs continued to rise in Q4. Filing data as of 2/2/25.

"Every stock, every bond, every fund— every asset—can be tokenized. If they are, it will revolutionize investing." - Larry Fink, 2025 Today, the value of all tokenized assets is less than $250 billion, yet the TAM of RWAs is over $750 trillion. We are so very early.

6/ The breakdown of transaction volume has shifted from being concentrated on Solana in 2024 to Ethereum and Base in 2025.

Today Ethereum begins to cross the chasm into the investment mainstream with the launch of spot ETH ETFs in the US. Investors are realizing the opportunity of Ethereum as a tech platform fostering the growth of the Web3 economy: DeFi, tokenization, stablecoins, gaming, NFTs, DAOs. The digital economy has grown 2.5x faster than the physical world's GDP over the past decade, and already accounts for more than 15% of global GDP. Ethereum has the potential to supercharge this growth and become the backbone of the 21st century digital economy.

Here's the kicker: It’s difficult to overstate just how big the RWA market is. RWAs are worth $100T globally. It will take time for much of that to move to tokenized rails. But if it does, fees from RWA-linked assets could exceed $100 billion per year, more than 40x Ethereum’s total YTD fees of $2.4 billion. With the incoming pro-crypto SEC expected to provide the regulatory clarity needed to accelerate tokenization, investors who stake a claim on ETH now may find themselves handsomely rewarded in the period ahead.

First domino to fall. Important macro driver for crypto.

One of the biggest and most overlooked opportunities is the $100 trillion market for tokenizing real-world assets. And that market today is dominated by Ethereum.

Stablecoins now the 18th largest buyer of US treasuries Majority of stablecoin TVL on Ethereum Ethereum is additive for the USD

CFTC remains adamant that ETH is a commodity. They've stated in prior cases, and they just stated it again.

Our analysis shows strong correlation between the ETH spot market and CME ETH futures market, at a level substantially similar to the findings of the SEC’s analysis in the spot bitcoin ETF approval order.

Digitally native dollars for the 21st century internet-based economy.

BTC ETFs AUM: $53.1B GLD AUM: $56.9B 2 months into launch BTC ETFs AUM is a stone away from surpassing the largest gold ETF. Moreover, total flows into new spot BTC ETFs over past 2 months exceeded total flows into all physical gold ETFs over past 5 years. The store of value flippening is underway. Incredible.

Think of Ethereum as a technology platform

Based on @MicroStrategy latest acquisition, its 531,644 BTC holdings valued at ~$45B place it as the 13th largest holder of strategic* reserves @saylor

Top ETH Treasury Companies: ETH Acquisition Metrics $SBET appears to have the lowest ETH acquisition cost to-date. Caveat: $BMNR doesn't publish per-lot costs, so avg acquisition cost is an estimate based on ETH's average price over each purchase interval.

Join @Matt_Hougan @RasterlyRock and myself today for a lively panel on the #BitcoinHalving featuring representatives from @MarathonDH @RiotPlatforms @CleanSpark_Inc @Hut8Corp @TeraWulfInc @Bitfarms_io @BitDigital_BTBT @Core_Scientific @ArgoBlockchain nitter.app/i/spaces/1ZkKzjVpzWrKv…

$100,000 never looked so good! BTC has surpassed Saudi Aramco as the #7 largest asset in the world. Alphabet, you're next.

The institutional adoption of bitcoin ETFs will shift this perception of risk for advisors: • Career risk pre-ETFs: allocating to bitcoin • Career risk post-ETFs: NOT allocating to bitcoin

Wall St analyst forecasts missed $COIN Q4 trading volume by 11% ($139M consensus vs $154M actual). If you're looking to separate signal from noise, this is how the following metrics rank in predicting quarterly trading volume (highest to lowest): 1. Bitcoin Google searches 2. Coinbase Google searches 3. Ethereum market cap 4. Altcoin market cap 5. Total crypto market cap 6. Bitcoin market cap 7. CME BTC futures - open interest 8. CME BTC futures - volume 9. M2 monetary base 10. Bitcoin volatility (very low predictive value) 11. Effective Fed Funds Rate (negative predictive value)

Cost of transferring ETH has fallen 80% this quarter. Bullish ETH usage and adoption.

That could put Coinbase in a similar position to Amazon, which started as an online bookstore before expanding to mass retailing. But today more than half of Amazon’s profits come from AWS, its cloud computing service. People think of Coinbase as a crypto brokerage only, but the early returns on Base suggest that Coinbase could end up becoming something even greater: a core infrastructure provider to the crypto ecosystem.

BTC ETF Flows Summary: Jan: $1.46B Feb: $6.03B Mar: $4.64B Apr: -$0.35B May: $2.07B Yesterday was day 100, and inflows saw the second biggest day since launch at $887M. The institutional adoption swell remains strong. Wirehouses and other large institutional investors that have 3-12 month due diligence processes are starting to approve BTC ETFs on their platforms and allocations are starting to roll in. Second wave of institutional allocation is beginning.

The first quarter of 2024 saw the most successful ETF launch of all time with bitcoin ETFs gathering more than $12 billion in net inflows. Bitcoin surged 67% to new ATHs and the total crypto market cap approached ATHs near $3 trillion. Here are 5 takeaways from our team's Q1 2024 Crypto Market Review. bitwiseinvestments.com/crypt…

Don't be fooled. Despite the U.S. gov's pushback against #bitcoin it is one of the largest whales, holding an estimated 194,188 #BTC worth over $5 billion. How do they own so much? From law enforcement seizures such as the three largest BTC seizures since 2020: • Nov 2020: Silk Road seizure of 69,369 BTC • Jan 2022: Bitfinex Hack seizure of 94,643 BTC • Mar 2022: James Zhong seizure of 51,326 BTC Follow the money, Uncle Sam does. Source: dune.com/21co/us-gov-bitcoin…

Has momentum in the crypto ecosystem run out of steam? BTC ETF inflows have been slowing: • Jan: $1.5B • Feb: $6B • Mar: $4.6B • Apr: $170M BUT...there are two important driving forces underway 1. A second wave of inflows is coming: • BTC & ETH ETFs about to launch in Hong Kong • Morgan Stanley, Merrill Lynch, Wells Fargo, UBS and others doing due diligence on approving BTC ETFs • Retirement consulting firm GRP revealed exposure to BTC ETFs in their latest 13F filings (more pensions will follow) 2. Innovation is ramping up: • Tether announced new initiatives to drive innovation in stablecoins, DeFi, AI, tokenization, BTC mining, blockchain education. With $2.85B in Q4 profits, they are well capitalized to drive these initiatives forward. • Block announced a 3 nanometer BTC mining chip and is developing a comprehensive BTC mining system. • Bitcoin ecosystem is being invigorated by Ordinals, Runes, L2s • ETH ecosystem is being invigorated by Dencun upgrade driving L2 fees down to effectively $0 • BlackRock recently announced its first tokenized fund (BUIDL) and more TradFi firms will follow • VC capital deployed to crypto startups has been increasing over the past two quarters The effects won't be felt in the next days or weeks, but will rather compound over the next 6-12 months.

China's stock market has taken off after the announcement of $140B stimulus and multiple rate cuts. Biggest weekly gain since 2008. Next market to take off? Crypto. Coordinated global rate cuts, stimulus from multiple govs, and continued ratcheting up of global debt = macro trifecta for crypto.

Another step in the mainstreaming of crypto: the California DMV digitized 42M car titles on the Avalanche network to streamline the vehicle title transfer process and combat fraud. This is a significant step towards modernizing public records, improving user experience, and creating efficiencies. The move marks a major milestone in the adoption of blockchain solutions in public services.

Paul Atkins in today's Senate confirmation hearing: "The top priority of my chairmanship will be to provide a firm regulatory foundation for digital assets through a rational, coherent, and principled approach."

Ethereum continues to evolve. Reminder that it remains far and away the dominant blockchain for crypto applications.

First BlackRock, now WisdomTree. More to come.

Probably nothing: Fink has gone from “compete” to “replace”

Fed has given the blessing. Major banks will queue up to serve crypto.

Over its life, bitcoin has returned +7 million percent, while its avg annual volatility has dropped from ~250% to ~50%. That’s a massive Sharpe Ratio boost, and the reason for bitcoin’s long-term portfolio diversification benefits.

🚨 13F Filing Update 🚨 Notable holdings from BlackRock's ethereum ETF as of their latest filings (Dec 31): - Goldman Sachs: 9,312,244 shares worth $195M (new position)

BTC is entering the next phase of accumulation: Started with retail, Then hedge funds/VCs, Then RIAs/family offices, Now we're seeing corporations, pension funds and sovereign wealth funds.

Crypto equities have the highest 2024 revenue growth projection of any industry, and 5x that of consumer discretionary, the next highest growing industry. Note the contrast vs information technology which is the closest industry comp, as crypto equities are projected to grow more than 35% vs 5% for information technology. Check out more insights from our Q4 report here: bitwiseinvestments.com/crypt…

Bitcoin is decoupling from stocks. Best kept secret: Nvidia and Tesla, widely held stocks by professional investors, are now more volatile than bitcoin.

Bitcoin is a hedge against fiscal mismanagement

Brevan Howard Capital Management LP is the largest holder of BlackRock's BTC ETF, with a position worth $1.41B (as of Q4 filings). It is also the fund's largest position, making up 33% of the portfolio. If that doesn't say conviction, I don't know what does.

5 Takeaways from $MSTR Q2 earnings 🧵👇 1. Record Operating Income, Net Income & EPS Operating income - $14 billion operating income - $10.0 billion net incomedrove - $32.60 diluted EPS Strongest quarterly profitability in the company’s history

The BTC/ETH ETF flows dispersion continued on Tuesday (8/6): ETH ETFs saw $98M in net inflows, while BTC ETFs saw $149M in net outflows.

Fretting about Coinbase losing transaction revenue to BTC ETFs misses how versatile the company is: • Jan 2024 trading volume +50% vs avg Q4 monthly vol. • Monthly transacting users up 8x from last cycle & this current cycle is just beginning to gain steam. • Subscription/services rev was 49.6% of total reve in Q3 2023, compared to 35.7% the year prior. • BTC ETF custody rev running at annualized $50M, will scale w/ issuer AUM growth. • L2 Base rev running at annualized $25M and growing. This rev line didn't even exist a year ago. • International expansion is just beginning to ramp up.

Big disconnect between technicals and fundamentals in crypto atm: Technicals have gotten rekkt. - Crypto assets at 1Y lows have surpassed 2024 drawdown peak. - Market breadth measures are poor, momentum looks exhausted. Fundamentals, in contrast, look resiliently strong. - Active addresses are up - Transaction volume is up - Fee generation is up We may chop sideways until the market recalibrates to the evolving macro backdrop, but it ultimately favors crypto. That + crypto fundamentals signal a continuation of the cyclical bull.

How are financial advisors—who manage roughly half of all wealth in America—currently thinking about #crypto, including how they are allocating to #crypto in client portfolios? After a year in which #crypto emerged from the ashes with a 157% rise in #BTC and a 242% gain for #crypto equities @bitwise and @Vetta_Fi joined forces for the sixth consecutive year to conduct The Bitwise/VettaFi 2024 Benchmark Survey of Financial Advisor Attitudes Toward Crypto Assets. Here are the top findings from 437 financial advisors surveyed across the nation 🧵👇

Brian Armstrong's focus for growth in 2024: • USDC international expansion • Base ecosystem development • Coinbase wallet

1/ Highlights from Circle's IPO filing - Key Operating Metrics as of 12/31/24: - USDC in circulation: $43.9B (+80% YoY) - Stablecoin market share: 24% (+4 pp YoY) - Meaningful wallets: $4.3M (+53% YoY) - Key Financial Metrics as of 12/31/24: - Revenue: $1.7B (+16% YoY) - EBITDA: $285M (-28% YoY) - Net Income: $156M (-42% YoY) - Corporate Cash/Equivalents: $1B (+62% YoY)

Ethereum staking making its way into TradFi customer bank accounts, this is how crypto goes mainstream. First Switzerland, next Germany and Spain. Wen USA?

One of many insights from this discussion: No one in Capitol Hill thought there would be a crypto voter two months ago. Now Congressmen are being asked about it on the campaign trail left and right. Sea change underway.

Currency Inflation Growth in the supply of select currencies over the past 5 years: BTC: 11% EUR: 25% GBP: 26% USD: 42% CNY: 57% RUB: 118% ARS: 1,926% One is unlike the others. Only one has a hard supply cap, with 6.5% additional issuance left.

For context, the $16B inflows into BTC ETFs in the six month period since launch is more than the sovereign capital flows into any country during H2 2023.

5 Takeaways from $COIN Q2 Earnings 🧵👇

Is BTC going to rally in 2025? Advisors certainly think so. 67% of advisors we surveyed believe it's going higher this year. When you consider that advisors control more than $20T in America, the implications for crypto in 2025 are considerable.

1/ 🧵 on MSTR's offerings: STRK, STRF, STRD:

BTC ETF is the 3rd largest holding of Abu Dhabi's sovereign wealth fund (Mubadala Investment Co)

.@BuildOnBase is gaining traction via its breakout app @friendtech The app is now attracting between 10-20K daily users while generating $1M in daily fees. It's also spawning its own ecosystem, consisting of portfolio management tools, DeFi apps, and even forks on other chains. Source: @MessariCrypto

Happy 9th birthday Ethereum! In that time: $0 --> $400B market cap $0 --> $2.4B annual fees $0 --> $9B US spot ETF AUM 0 --> 5,900 dApps May your 10th be the best year yet!

@Etherealize_io angle for Wall St is going to be tokenization. Ethereum is the most battle-tested & secure of the smart-contract platforms. It holds an 81% market share in tokenized assets & its long track record gives asset managers confidence as they migrate assets on-chain.

The mainstreaming of stablecoins is about to unleash escape velocity for crypto adoption: - Meta 3.4 B users (≈ $700 B/yr spend) - Stripe 2 M+ merchants & 200 M+ shoppers (≈ $650 B/yr volume) - Ramp cardholders (~$55B/yr volume) All announced adding stablecoins this week—unleashing a crypto adoption multiplier. Crypto scales from $3.2T today to $10 T+ as millions onboard on‑chain.

shares held

$84,000,000,000,000 (trillion) That's the generational wealth transfer that will take place between now and 2045. Where will it be invested? A good chunk to stocks and bonds, sure. But a survey from @coinbase found that 54% of Gen Z & 55% of Millennials think that #crypto is the future, so a good chunk will likely go there too. And to realize that the entire crypto market cap is only $1 trillion today, boy are we early.

5/ More than 70% of USDC supply is on Ethereum and its L2 ecosystem

Tokenized assets are growing fast, with firms like BlackRock, UBS, and others bringing tokenized RWAs online, across gov securities, commodities, real estate, private equity and more. BlackRock, for instance, has a $578M tokenized Treasury fund, and it’s looking to do more. We think tokenized fund assets will 3x next year, with Ethereum as the driving force behind it.