Institutional Crypto Adoption Intensifies Amid Market Volatility
This week’s crypto news highlights a deepening institutional crypto adoption of digital assets, even as markets face significant volatility. Major financial players like BlackRock and HSBC are expanding their crypto offerings, while Bitcoin ETFs experience massive outflows and new altcoin ETFs attract substantial capital. Anyway, the regulatory landscape continues evolving with clearer frameworks, and corporate treasury strategies are becoming more sophisticated. Despite price declines in major cryptocurrencies, institutional interest remains strong, particularly in staking-enabled products and tokenized financial instruments.
Kalshi’s Valuation Soars to $11 Billion Following $1 Billion Funding Round
Prediction market platform Kalshi has reached an $11 billion valuation after securing $1 billion in funding, led by Sequoia Capital and CapitalG. The platform dominates the prediction market space with 61.4% of combined trading volume with rival Polymarket, totaling over $17.4 billion since September. Kalshi has expanded to 140 countries and integrates with major platforms including Google Finance, Robinhood, and Elon Musk’s xAI.
The substantial funding reflects growing institutional confidence in prediction markets as legitimate financial instruments. Kalshi’s consistent monthly volume growth since 2021 demonstrates real user engagement beyond speculative activity. On that note, the platform’s market leadership positions it at the intersection of traditional finance, decentralized finance, and mainstream technology integration.
Bitwise Introduces Spot XRP ETF on NYSE: Potential for Bullish Rebound?
Bitwise has launched the first spot XRP exchange-traded fund on the New York Stock Exchange, marking a significant milestone for institutional access to the fourth-largest cryptocurrency. The ETF debuted with $58 million in first-day trading volume, the highest of any 2025 launch, and attracted approximately $250 million in inflows through in-kind creations.
Despite the strong institutional reception, XRP’s price dropped 15.2% last week, showing the classic ‘sell-the-news’ pattern amid broader market weakness. The ETF launch represents growing regulatory acceptance and institutional interest in altcoins beyond Bitcoin and Ethereum. Major institutions including Evernorth Holdings have accumulated substantial XRP positions, with whale activity showing 55 million XRP purchased worth nearly $1.1 billion over three days.
Bitcoin ETFs End Five-Day Outflow Streak as BTC Climbs Above $92,000
U.S. spot Bitcoin exchange-traded funds posted net inflows of $75.47 million on November 20, breaking a five-day outflow streak that had pulled over $2.26 billion from the market. The reversal occurred as Bitcoin’s price climbed back above $92,000, partly fueled by broader market gains following Nvidia’s strong earnings.
BlackRock‘s iShares Bitcoin Trust led with $60.61 million in inflows, while Grayscale’s BTC fund added $53.84 million. The outflow period had aligned with Bitcoin dipping below $90,000 for the first time since April, after hitting a record $126,080 in October. You know, the recent inflows, while small compared to recent withdrawals, suggest a possible pause in institutional selling pressure.
Ether’s Decline Below $3K Erases Annual Gains, Highlighting Treasury Losses
Ethereum has dropped below $3,000, hitting a four-month low after a 40% correction from its August peak of $4,956. The decline mirrors broader risk-off sentiment in cryptocurrency markets, with weakening on-chain metrics and institutional outflows creating bearish pressure.
Spot Ethereum ETFs have seen outflows totaling $1.42 billion since early November, showing collapsed institutional appetite. Digital asset treasury companies face significant unrealized losses, with BitMine Immersion Technologies confronting a $3.7 billion loss on its Ether holdings. The decline challenges Ethereum’s role in decentralized finance as total value locked fell 13% to $74 billion over 30 days.
BlackRock Files for Staked Ethereum Trust ETF in Delaware, Awaits SEC Approval
BlackRock has registered the iShares Staked Ethereum Trust ETF in Delaware, representing a strategic expansion beyond its successful iShares Ethereum Trust ETF. The staked ETF would allow investors to participate directly in Ethereum’s proof-of-stake consensus system and earn staking rewards estimated at 3.95% annually.
The move comes about 15 months after BlackRock launched its flagship Ethereum ETF, which has attracted $11.5 billion in assets since July 2024. Other major asset managers including Grayscale and REX-Osprey have also entered the staked Ethereum ETF space, suggesting growing institutional recognition of staking’s potential to enhance returns and appeal to yield-focused investors.
US Bitcoin ETFs End Five-Day Outflow Streak as Bitcoin Surpasses $92,000
U.S. spot Bitcoin ETFs have broken a five-day outflow streak with $75.47 million in net inflows as Bitcoin climbed back above $92,000. The reversal follows substantial outflows that saw over $2.26 billion withdrawn from November 12 to 18, with daily outflows peaking at $866 million on November 13.
The flow-weighted cost basis across all U.S. Bitcoin ETFs has dropped to around $89,600, a level Bitcoin recently broke, leaving the average ETF investor in the red for the first time. Despite the recent inflows, November may top February’s $3.56 billion in ETF outflows, making it the worst month since these products launched in January 2024.
Bitcoin Reaches Extreme Bearish Levels: Is the Bull Market Concluding?
Bitcoin has entered a critical bearish phase with the Bull Score Index dropping to extreme levels of 20/100, while the price has fallen far below the 365-day moving average of $102,000. This downward movement aligns with weakening institutional demand, including reduced buying by Bitcoin treasury firms and limited ETF inflows.
Technical analysis shows persistent selling pressure during recovery attempts, with Bitcoin struggling to hold positions above $112,000. The liquidation heatmap points to dense order clusters near $107,000 that could act as a pivotal turning point if tested further. A weekly close above $114,000 is needed to confirm bullish strength and avoid a deeper correction.
Bitwise XRP ETF Launching Thursday Amid Ticker Confusion
Bitwise’s spot XRP ETF is launching under the ticker “XRP” on the New York Stock Exchange, creating some confusion as crypto ETFs typically include the asset manager’s name in the ticker. The ETF represents growing institutional adoption of XRP, with Canary Capital’s XRPC ETF pulling in $58 million on day one.
Institutional players are accumulating XRP through treasury moves, with entities like Evernorth Holdings buying 388.7 million XRP tokens worth over $1 billion. On-chain data shows the Net Holder Position Change metric staying positive since August, indicating continued accumulation by large holders despite retail fear. The ETF launch signals a maturing market with strong institutional appetite.
Abu Dhabi Investment Council Triples Bitcoin ETF Holdings in Q3: Report
The Abu Dhabi Investment Council nearly tripled its stake in BlackRock’s spot Bitcoin ETF in Q3 2024, increasing holdings from 2.4 million shares to about 8 million shares valued at roughly $520 million. The council described Bitcoin as “the digital equivalent of gold,” indicating a long-term strategic view rather than speculative positioning.
The move occurred during Bitcoin’s volatile period, with the cryptocurrency hitting a record $125,100 on October 5 before dropping below $90,000. ADIC’s increased stake represents growing institutional crypto interest in the UAE and signals the region’s emergence as a global hub for digital assets.
Crypto and Tech Stocks Surge Following Nvidia’s Exceptional Q3 Earnings
Nvidia’s third-quarter earnings report revealed record revenues of $57 billion and profits of $31.9 billion, exceeding Wall Street expectations and easing concerns about an AI bubble. The strong performance lifted shares across crypto companies including Coinbase, MicroStrategy, and Circle, while major tech stocks also rose.
Bitcoin recovered from a drop below $89,000 to around $91,500, and Ether climbed back above $3,000 after falling under $2,900. The market reaction highlights how corporate earnings in traditional tech influence cryptocurrency prices, with institutional holdings providing stability during market stress.
BlackRock Advances Development of New Staked Ethereum Trust ETF
BlackRock is progressing with plans for a staked Ethereum ETF, registering the product in Delaware as a preliminary step toward SEC approval. The staked ETF would complement BlackRock’s existing iShares Ethereum Trust ETF, which has attracted $13.1 billion in inflows since its July 2024 launch.
The timing aligns with broader regulatory changes under the current administration, with the SEC showing more openness to cryptocurrency exchange-traded products. Other major asset managers have entered the staked Ethereum ETF space, suggesting growing institutional recognition of staking’s potential to boost returns and appeal to yield-focused investors.
Coinbase Expands DeFi Mullet DEX Platform to Brazilian Market
Coinbase is expanding its decentralized exchange platform, DeFi Mullet, to Brazil following its initial US launch in October. The platform gives Brazilian users access to over 10,000 tokens directly in the Coinbase app, allowing smooth trading on popular DEXs while users maintain self-custody of their assets.
The expansion occurs as Brazil’s crypto regulations evolve, with new rules classifying stablecoin transactions and some self-custody wallet transfers as foreign-exchange operations. DeFi Mullet’s integration in the Coinbase app offers a user-friendly option that balances ease of use with decentralization through self-custody wallets.
JPMorgan Predicts Bitcoin Bottom at $94,000, Forecasts $170K Peak to Rival Gold
JPMorgan has developed a framework projecting Bitcoin could reach $170,000 by comparing it to gold on a volatility-adjusted basis. The analysis assesses Bitcoin’s risk capital consumption at 1.8 times that of gold, with Bitcoin’s market cap approaching $2 trillion potentially matching gold’s $6.2 trillion in private investments.
Bitcoin is trading around $101,600, roughly $68,000 below JPMorgan’s gold benchmark, indicating substantial upside potential. Despite a 20% drop from recent highs, the bank believes deleveraging in perpetual futures is mostly complete, suggesting less speculative pressure and supporting the bullish outlook.
21shares Solana ETF Launches During Market Downturn, Yet Investor Interest Evident Through Flows
21shares has debuted its Solana ETF with over $100 million in assets, while VanEck’s SOL ETF launched with fee waivers until February 17 or $1 billion in assets. The Solana ETFs emerged after regulators clarified that certain proof-of-stake activities don’t qualify as securities offerings, enabling staking features that deliver estimated 5-7% passive returns.
Despite strong institutional reception, Solana’s price dropped about 14% over the past week, mirroring historical trends seen with Bitcoin and Ethereum ETFs where initial hype often leads to temporary price stalls. The integration of staking transforms crypto from purely speculative to income-generating, attracting yield-seeking institutions.
US Government Reopening Could Trigger Wave of Crypto ETF Approvals: Analyst
The end of the 43-day US government shutdown allows regulatory work to restart, including handling pending spot cryptocurrency ETF applications that were stuck during the shutdown. Historically, such resumptions have often sparked market rallies by reducing uncertainty and allowing delayed approvals.
The CFTC’s planned confirmation hearing for Mike Selig, Trump’s nominee to lead the agency, and the Treasury Department’s review of public comments on the stablecoin-focused GENIUS Act can now proceed. The post-shutdown phase helps clear regulatory uncertainty that bred doubt, potentially stabilizing markets and encouraging institutional involvement.
HSBC Expands Tokenized Deposit Services to US and UAE Amid Growing Stablecoin Competition
HSBC Holdings is expanding its tokenized deposit services to the United States and United Arab Emirates by the first half of 2026, following earlier rollouts in Hong Kong, Singapore, the UK, and Luxembourg. Tokenized deposits are digital versions of bank deposits issued on a blockchain by regulated banks, allowing instant, round-the-clock transfers for corporate clients.
The move helps HSBC compete in the stablecoin arena, focusing on programmable payments and autonomous treasuries that use automation and AI to handle cash and liquidity risks. HSBC’s approach harnesses blockchain technology to boost payment efficiency and cut down transaction times within traditional banking systems.
New Hampshire Authorizes Groundbreaking $100M Bitcoin-Backed Municipal Bond
New Hampshire has approved a $100 million municipal conduit bond backed by Bitcoin, marking the first such structure at the U.S. state level. The innovative financial instrument allows borrowers to raise capital using overcollateralized Bitcoin as security, with the state’s Business Finance Authority overseeing the private deal without taxpayer backing.
The bond requires borrowers to post approximately 160% of the bond’s value in Bitcoin as collateral, with liquidation triggers if BTC’s price falls below roughly 130% to ensure bondholder protection. The structure mirrors traditional municipal and corporate bond rules while adapting them for digital asset collateralization.
MicroStrategy’s Bitcoin Strategy Withstands Market Crash, Maintains S&P 500 Inclusion Prospects
MicroStrategy has accumulated 649,870 BTC, representing over 3% of Bitcoin’s total supply, through a systematic approach focused on strategic purchases during market downturns. The company has built substantial treasury reserves valued at approximately $61.3 billion, demonstrating strong commitment to Bitcoin despite ongoing market volatility.
Recent acquisition patterns show variation, with MicroStrategy purchasing 8,178 BTC worth $835.6 million between November 10-16, following a smaller $49.9 million acquisition the previous week. The company’s disciplined strategy has been adopted by over 200 other publicly listed companies, setting benchmarks for corporate digital asset management.
BlackRock Leads Nearly $3 Billion Bitcoin ETF Outflows in November with Record $523 Million Withdrawal
Bitcoin ETF outflows hit $1.1 billion in the past week, the fourth-largest weekly outflow ever recorded, with Bitcoin’s price dropping over 9.9% to $95,740 during that period. Daily outflows reached as high as $866 million in some cases, led by Grayscale’s Bitcoin Mini Trust with $318.2 million and BlackRock’s iShares Bitcoin Trust with $256.6 million.
The outflows occurred even after the US government shutdown ended, suggesting traditional confidence boosters may not be working as expected. The flow-weighted cost basis across all U.S. Bitcoin ETFs has dropped to around $89,600, leaving the average ETF investor in the red for the first time.
Kraken Secures $800 Million for Expansion, Valued at $20 Billion
Kraken has raised $800 million in two funding rounds, hitting a $20 billion valuation, with capital including a $200 million strategic investment from Citadel Securities. The funding will support scaling global operations, deepening regulated footprints, and expanding products through organic growth and acquisitions.
Despite favorable US regulatory conditions and trends pushing IPOs, Kraken is taking a measured approach to public listing, emphasizing financial stability and strategic positioning. The exchange has gathered over $530 million since starting in 2011, with recent rounds building a solid foundation for continued growth without public market pressures.
Key Takeaway
Institutional crypto adoption is accelerating despite market volatility, with major financial players expanding digital asset offerings and corporate treasury strategies becoming more sophisticated. While Bitcoin and Ethereum face short-term pressure, growing interest in altcoin ETFs and tokenized financial instruments signals broader market maturation. Regulatory clarity continues to improve, creating conditions for sustainable long-term growth in digital asset integration with traditional finance.
