Synopsis
The launch of Bitcoin ETFs has been a game-changer for the crypto market. A K33 Research report shows U.S.-listed Bitcoin ETFs, including leveraged products, have surpassed Gold ETFs in assets under management (AUM). Since their January debut, Bitcoin ETFs have reached $129.25 billion in AUM, overtaking Gold ETFs at $128.88 billion, which have been in the market for over two decades.
In the past week, the crypto market saw some big moves in both directions keeping the crypto community on its toes. Bitcoin hit a new all-time high of $108,250 and other major coins such as Ethereum, XRP and BNB have traded near all-time highs fueled by the anticipation of a 25 basis points rate cut by the Fed. Since the time BTC hit an all-time high, the market dynamics have changed quite a bit, taking the crypto market cap down to $3.2 trillion. Despite the dip, key developments in the establishment of Bitcoin reserve, Ripple stable coin and others are keeping the market sentiment strong with buying interest emerging at the lower levels. As we move to the last week of the year, let’s take a look at how the previous week changed the crypto dynamics.
Bitcoin ETFs Surpassing the Gold ETFs
The launch of Bitcoin ETFs has proven to be the best thing that happened to the crypto market yet. A report from K33 Research reveals that U.S -listed bitcoin ETFs have surpassed U.S.-listed Gold ETFs in terms of assets under management (AUM), including leveraged products such as futures-based ETFs. Since its launch in January, Bitcoin ETFs have seen over $129.25 billion in AUM edging out Gold ETF AUM at $128.88 billion that have been trading for over 20 years. This number shows the resilience of Bitcoin with huge buying interest from institutional investors. While comparing spot-based products exclusively, Gold remains slightly ahead, but the gap is closing soon and Bitcoin ETFs could surpass Gold ETFs in just spot ETFs as well in the next few weeks.
On the other hand, Blackrock, the largest asset manager globally, with over $11.5 trillion under management suggested a 2% portfolio allocation to portfolios increasing the confidence of both retail and institutional investors in the crypto market.
Crypto Tracker
TOP COIN SETSCrypto Blue Chip – 5-4.75% BuyBTC 50 :: ETH 50-5.66% BuyWeb3 Tracker-6.73% BuyDeFi Tracker-8.79% BuyAI Tracker-15.74% BuyTOP COINS (₹) Ethereum298,757 (5.06%)BuyXRP200 (3.93%)BuyBNB58,400 (3.36%)BuyBitcoin8,403,792 (1.97%)BuyTether85 (0.07%)Buy
Ohio State Bitcoin Reserve Act
Did you Know?
The world of cryptocurrencies is very dynamic. Prices can go up or down in a matter of seconds. Thus, having reliable answers to such questions is crucial for investors.
View Details »Ohio State lawmakers have passed a bill to establish a Bitcoin fund in the state’s treasury, marking the third US state to do so in just over a month. The Republican leader Derek Merrin has introduced the bill titled “The Ohio Bitcoin Reserve Act” which would give the state treasurer authority to purchase Bitcoin as part of “proper asset allocation”. This move shows the commitment of the Trump administration to setting up a national Strategic Bitcoin Reserve which could potentially make the US the largest holder of Bitcoin, already having possession of approximately 207,189 Bitcoins so far. 
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In addition to this, news that Trump would sign an executive order to establish the Bitcoin reserve on the first day of his assuming office increased the bullish sentiment in the crypto community.
Fed’s rate cut and comments, its impact
One of the major events of the week that changed the direction of the market was the Fed’s meeting. While the Feds cut the interest rate by the expected 25 basis points, it also adjusted its 2025 rate cut outlook from three to two. A weak inflation forecast from the largest economy led to a sell-off across all global markets including the crypto markets. The US stock market saw over $1.5 trillion in liquidation while the Indian markets also fell by over 4.5%. On the same lines, even the crypto market saw over $1 billion in liquidation, taking down Bitcoin’s price by 5.5%. Federal Reserve Chair Jerome Powell’s hawkish remarks on the Federal Reserve’s stance against owning Bitcoin further added to the selling pressure.
Launch of Ripple’s Stablecoin
Ripple announced the launch of its stablecoin RLUSD a few days back and the Former RBI Governor, Raghuram Rajan joined Ripple to guide RLUSD’s growth. This development gathered a lot of interest from the Indian crypto community, strengthening the confidence in the market. Alongside Rajan, Kenneth Montgomery, the former First Vice President and Chief Operating Officer of the Federal Reserve Bank of Boston joined the board. These appointments not only help in Ripple’s growth but also make the markets more reliable with key people from strong banking backgrounds joining the crypto ecosystem.
Markets going forward
Moving forward into the last week of the year, we might see some volatility given that we are on a cooling-off period between bull runs. The market needs to build some momentum for the potential rally after Trump assumes office. Such cooling-off periods are crucial when having a prolonged bull market like the one we are having now. Adding to this is the Christmas sell-off from institutions ahead of the new year. Bitcoin might test key support levels before bouncing back. While such periods provide investors with attractive entry points and Dollar cost averaging, traders are advised to maintain strict stop loss to minimize risks.
Top 3 crypto gainers during the week:
1) Pudgy Penguins is up 380.2%
2) Hyperliquid is up 32.76%
3) BitGet Token is up 20.69%
Top 3 crypto losers this week:
1) Gala is down 39.25%
2) Celestia is down 36.99%
3) The Sandbox is down 35.7%
(The author is CEO and Co-founder of Mudrex, a global crypto investment platform)
