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Q1'25 Market Pulse

Primers

Key Takeaways

 

The key highlights for Q1'25 include the following topics:

 

  • Ecosystem developments: Bitcoin, Ethereum, and other altcoins experienced a difficult quarter, marked by weak price performance, declining ETF flows, and lower network activity. In Q1'25, developments in institutional adoption and the regulatory environment proved more impactful than technological innovation.

 

  • Institutional adoption: Q1'25 saw key milestones in institutional crypto adoption. BlackRock’s BUIDL fund surpassed $1B in AUM, nearing $2B. Also, we saw other headlines with Fidelity launching an on-chain US Treasury fund on Ethereum, and the European Central Bank adopting blockchain for central bank settlements.

 

  • Regulatory breakthroughs: Q1'25 brought major regulatory shifts in the US. The SEC dropped all but one lawsuit against crypto firms, signaling a softer stance. The new Trump administration appointed pro-crypto leaders, and the long-discussed BTC strategic reserve plan began to take shape, marking a pivotal moment for the industry.

 

Q1'25 fell short of the high expectations set at its outset, leaving many investors disappointed with the results. However, the Trump administration’s appointment of pro-crypto leaders, combined with a more accommodating stance from the SEC, signals a shift in regulatory momentum. Institutional adoption continues to expand across corporations, pension funds, and even sovereign entities. As a result, Q2'25 may deliver the outcomes that eluded the previous quarter.

 

*Disclaimer: The opinions presented are those of Hashdex and its Research Team. They are based on internal research and do not rely on any confidential information. Please note that future events may not unfold as anticipated by our team’s research and analysis.

 

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