Crypto Fund Flows: Weekly Review 📈

2024 ended with record inflows into digital assets, and 2025 is off to an optimistic start.

1️⃣ Key Facts for 2024:

⚪️Total inflows: $44.2 billion, nearly 4 times the 2021 record ($10.5 billion).
⚪️Bitcoin: $38 billion in inflows (29% of total AuM).
⚪️Ethereum: $4.8 billion in inflows (26% of AuM), a 2.4x increase compared to 2021 and 60 times higher than in 2023.
⚪️Altcoins (excluding ETH): $813 million in inflows (18% of AuM).

2️⃣ Start of 2025:

⚪️Inflows in the first 3 days: $585 million.
⚪️Net outflows for the week: $75 million (during the last 2 trading days of 2024).

3️⃣ Regional Trends:

⚪️USA: All inflows into Bitcoin ETPs — $44.4 billion.
⚪️Switzerland: Inflows of $630 million.
⚪️Canada and Sweden: Outflows of $707 million and $682 million, respectively.

4️⃣ What’s Next?

The cryptocurrency market continues to grow thanks to institutional investments and an improved regulatory environment. Investors should be prepared for volatility and take advantage of new opportunities to grow their portfolios.

Satoshi Tweeted🔑

❓ Why is Singapore Outpacing Hong Kong?

Singapore continues to strengthen its reputation as a hub for digital assets.

In 2024, 13 licenses were issued to major players, including OKX, Upbit, Anchorage, BitGo, and GSR. This is twice as many as the previous year!

Meanwhile, Hong Kong, which is also striving to attract crypto companies, has encountered difficulties. More details below.

🏆 Why is Singapore Winning?

1️⃣ Regulatory Flexibility: Singapore's regulatory framework provides more freedom for working with cryptocurrencies.

For example, Hong Kong only allows trading of the most liquid assets (Bitcoin, Ether), while altcoins remain banned.

2️⃣ Asset Tokenization Projects: Singapore is actively developing initiatives such as Project Guardian, aimed at commercializing tokenization.

3️⃣ Support for New Players: Singapore creates an environment where startups and institutional players work together.

"Singapore's structure offers more opportunities for young companies and startups, unlike Hong Kong, which focuses on major financial institutions," — Ben Charoenwong, Associate Professor of Finance at INSEAD.

🏗 What’s Happening in Hong Kong?

In 2024, Hong Kong issued only 7 full licenses to crypto platforms. Of these, four were approved with restrictions only in December.

Major exchanges such as OKX and Bybit withdrew their applications for licenses in Hong Kong. The main reasons:

⚪️ Stricter Requirements for Custody of Customer Funds

⚪️ Restrictions on Token Listings

⚪️ General Regulatory Uncertainty

China's influence also plays a role.

Despite being a Special Administrative Region, Hong Kong's ties with China create additional risks for companies working with crypto assets.

Innovation and Prospects

🇸🇬 Singapore:

⚪️ Asset tokenization projects receive government support

⚪️ Regulators work towards long-term stability and security

⚪️ Attraction of global leaders, such as Anchorage and BitGo

🇭🇰 Hong Kong:

Issuance of digital "green" bonds worth $770 million through HSBC's platform.

Launch of spot Bitcoin and Ether ETFs. However, trading volumes remain low: only $500 million compared to $120 billion in the USA.

"Achieving such a high standard while remaining profitable is quite challenging," — Roger Li, co-founder of One Satoshi.

📌 In Conclusion:

Both cities are trying to become the leading crypto hubs in Asia, but their strategies are different.

Singapore bets on flexibility and integration with innovative projects.

Meanwhile, Hong Kong focuses more on traditional financial institutions and strict regulation.

Satoshi Tweeted🔑

❌ Is the Federal Reserve Blocking the Creation of a National Bitcoin Reserve in the USA?

Earlier today, Jerome Powell, Chairman of the Federal Reserve, stated during a press conference that the Fed does not intend to participate in any government plans to accumulate Bitcoin.

This declaration immediately impacted the cryptocurrency market, causing Bitcoin’s price to retreat from recent highs.

📉 Key Points:

▪ Powell’s Statement: The Federal Reserve does not plan to hold Bitcoin in its reserves. All matters regarding the creation of a National Bitcoin Reserve remain under the jurisdiction of Congress.

▪ Market Impact: Following Powell’s announcement, Bitcoin’s price dropped from record levels, and the probability of establishing a strategic Bitcoin reserve decreased from 40% to 34%, according to Polymarket data.

▪ Cryptocurrency Market Capitalization: The total market cap declined by approximately 7.5%, reflecting investor uncertainty.

👤 Role of the Federal Reserve and Legislative Possibilities:

The U.S. Congress is the supreme authority for the Federal Reserve and other financial regulatory bodies.

Congress develops financial regulations and policies, and authorizes institutions to perform their functions.

The Trump administration could utilize the Exchange Stabilization Fund (ESF) to purchase Bitcoin WITHOUT the Fed’s consent.

However, this raises questions about long-term sustainability and potential changes by future administrations.

💸 Legislative Path:

▪ Bitcoin Strategic Reserve Act: Creating a sustainable reserve requires legislative action.

The bill proposed by Senator Cynthia Lummis aims to officially recognize Bitcoin as a national strategic asset.

▪ Legitimacy and Stability: Passing this law would provide a long-term legal foundation for Bitcoin reserves, which cannot be achieved through executive orders alone.

💡 Alternative Options:

1️⃣ The Fed and the Treasury could allocate Bitcoin within existing frameworks, but this would require clear political support and regulatory guidelines.

2️⃣ The Treasury could establish a dedicated fund for Bitcoin investments, coordinating funding with Congress.

🇺🇸 What’s Next?

Investors should closely monitor congressional initiatives and assess their impact on the cryptocurrency market.

Despite current setbacks, Bitcoin’s long-term prospects remain attractive due to institutional investment opportunities and an improving regulatory environment.

Powell’s statement highlights the Fed’s caution towards cryptocurrencies but does not rule out the possibility of establishing a Bitcoin reserve through legislative measures.

Satoshi Tweeted🔑

🖥 Where Is the “Speculators’ Paradise” in Crypto, Will the U.S. Get Approval to Liquidate BTC, and the Look Ahead Crypto Report: This Week’s Highlights

Passions around cryptocurrencies remain intense on the global stage. Let’s look at the week’s most important events in the crypto world:

1️⃣0️⃣ “Speculators’ Paradise”: Solana’s AI Hackathon Faces Criticism
Yash Agarwal, curator of the Solana AI Hackathon, remarked:

“‘Degens’ believe they can discover projects here that might grow 100x, making it the perfect place for speculation.” Agarwal urged developers not to launch tokens unnecessarily.

9️⃣ Czech Central Bank Governor Considers BTC for Reserves: Aleš Michl shared this in an interview with CNN. The country is actively pursuing a diversification strategy using gold—by 2028, the Czech Republic plans to increase total gold holdings to 5%.

8️⃣ In the latest 2025 Look Ahead report, it’s predicted that more and more countries will start including BTC in their strategic reserves.

Analyst Matt Hogan is confident that in 2025, digital assets will go mainstream, and the tokenization market for on-chain assets will grow from $14 billion to $30 billion.

7️⃣ “Global Public Debt Nearing $100 Trillion”
Former People’s Bank of China (PBOC) Governor Zhou Xiaochuan stated that to address this situation, “countries must strengthen cooperation in regulating crypto assets on a global scale and refine standards for digital currency trading.”

6️⃣ MicroStrategy Acquires 1,070 BTC for $101 Million. They paid an average of $94,004 per coin. Currently, the company holds 447,470 BTC at an average cost of $62,503 per coin, totaling about $27.97 billion.

5️⃣ Vitalik Buterin Publishes “d/acc: One Year Later,” discussing AI safety, crypto integration, and the funding of public goods.

4️⃣ Pierre Poilievre, the Pro-Crypto Leader, Set to Become Canada’s Next Prime Minister. On the 6th, Prime Minister Justin Trudeau announced his resignation at a press conference.

There’s an 87% probability that Pierre Poilievre — an advocate of DeFi and crypto — will take over.

The next block is directly related to the U.S.:

3️⃣ U.S. ADP Employment Report for December: 122,000 vs. 140,000 Expected and 146,000 Previously. According to QCP, BTC retreated to the $95,000 support level after stronger-than-expected U.S. labor data.

2️⃣ The Crypto Industry Demands That Trump Issue Crypto Orders in His First 100 Days. Following recent Fed statements, the crypto industry has been lobbying Trump to sign executive orders within the first 100 days, establishing U.S. BTC reserves, providing banking services for the sector, and creating a cryptocurrency advisory council.

1️⃣ U.S. Government Authorized to Liquidate $6.5 Billion Worth of Silk Road Bitcoins.

A federal judge ruled that the Department of Justice (DOJ) can sell 69,370 BTC seized from the Silk Road darknet platform.

✅ Conclusion

Increasingly, more countries are beginning to see cryptocurrencies as a means of addressing the current macroeconomic challenges.

Satoshi Tweeted🔑

🖥 Cryptocurrency Investment Market: Inflows of $48 Million This Week 📈

Last week, digital assets faced macroeconomic challenges, resulting in mixed outcomes for crypto funds.

📊 Key Facts:

✅ Bitcoin: Inflows: $214 Million

Later in the week, outflows occurred; nevertheless, Bitcoin remains the leading asset with total inflows of $799 million year-to-date.

✅ Ethereum: Outflows: $256 Million

Reason: General sell-off in technology stocks, no specific issues with the asset observed.

✅ Solana: Inflows: $15 Million

Unlike Ethereum, Solana did not experience the same pressure.

✅ XRP: Inflows: $41 Million

Reason: Increased optimism ahead of the SEC appeal deadline on January 15th.

✅ Altcoins (Excluding ETH): Inflows: $48 Million

Notable inflows in Aave ($2.9 million), Stellar ($2.7 million), and Polkadot ($1.6 million).

📉 Weekly Summary:

Total Inflows for the Week: $48 million.

Net Outflows for the Week: $75 million.

Impact: Macroeconomic data and Federal Reserve protocols affected investor confidence.

🌐 Regional Focus:

USA: Major inflows focused on Bitcoin and XRP.

Europe and Asia: Investors exhibit caution due to macroeconomic instability.

📈 Market in Numbers:

- Total Market Capitalization of Digital Assets: Decreased by approximately 7.5%.

- Trading Volumes: Remain under pressure due to changes in monetary policy.

📈 Forecast:

Despite current outflows, the long-term prospects for Bitcoin and other crypto assets remain positive thanks to institutional investments and an improving regulatory environment.

The cryptocurrency market continues to respond to macroeconomic changes and decisions by the Federal Reserve System.

Investors should continue to monitor economic indicators and regulatory developments that may impact market movements.

Satoshi Tweeted🔑

📊 CryptoRank 2024 Report: The Crypto Investment Market Amid a Bullish Trend

The year 2024 turned out to be significant for the cryptocurrency market, even though fund-raising results were moderate.

📊 Crypto Fundraising Growth — But Not as Impressive

Crypto projects raised $16.1 billion, a 53% increase over 2023, but that growth looks modest in the context of a bullish market.

For comparison, global venture investments totaled $368.5 billion, with crypto venture projects making up only 4% of that volume.

📊 Stagnation and Muted Expectations: The total number of funding rounds grew by 28.5%, but that doesn’t fully offset stagnation in the sector.

📊 Two Ways to Address the Issue

1️⃣ Reducing startup valuations: Venture capitalists can manage project valuations during funding rounds, affecting future market capitalization.

2️⃣ Achieving higher capitalization: Initial valuations can create more stable projects with long-term growth potential.

📊 Round Sizes and Jurisdictional Trends

Later-stage investments are fewer, and round sizes remain consistently low — most deals range from $1 million to $10 million. However, improved regulations in the U.S. could become a catalyst for crypto projects.

📊 Convergence of AI and Blockchain

AI and blockchain continue to merge, creating new opportunities for decentralized applications with enhanced privacy and scalability.

AI technology is becoming crucial in the crypto ecosystem, including projects like Sentient and Fraction AI.

📊 The Future: Metaverse and Blockchain Gaming

Blockchain-based gaming and metaverses remain in the spotlight.

Projects like Alliance Games and Overworld pave the way for mass adoption, using tokenization and NFTs to power innovative in-game economies.

📎 Conclusion

In short, 2024 demonstrated that despite a bullish market, crypto fundraising faces challenges that require strategic solutions for sustainable growth.

At the same time, AI integration, Bitcoin-based DeFi, and specialized blockchains are opening new frontiers for innovation and scalability.

Satoshi Tweeted🔑