Crypto’s Shift to Mainstream

Why Bitcoin, Ethereum, and DeFi are taking center stage in institutional finance.

Author

Matt Curda
December 14, 2024

Hello Investors!

The crypto world continues to evolve at a rapid pace. This week, we see fascinating developments around institutions, ETFs, and Mr. Trump.

These shifts hint at a future where institutional players and governments take center stage in the blockchain revolution.

Let’s unpack what’s driving the market and what it means for the road ahead.

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Amazon Considers Bitcoin. Microsoft Prefers Ethereum.

Institutional adoption. Source: Dall-e

Amazon shareholders, led by the NCPPR, have proposed allocating at least 5% of Amazon’s $88 billion treasury reserves to Bitcoin.

The NCPPR has filed over 60 such proposals to corporations, urging Bitcoin adoption.

Meanwhile, Microsoft shareholders overwhelmingly rejected a similar Bitcoin proposal, with just 0.55% voting in favor.

The plan, inspired by Michael Saylor, sought to hedge against inflation by diversifying corporate reserves.

While Microsoft rejected BTC, it is still involved in ETH. Since 2017.

They encourage enterprises to adopt Ethereum as the foundation for blockchain projects.

 

Additionally, Goldman Sachs, managing over $3 trillion in assets, is evaluating Bitcoin and Ethereum market participation — pending regulatory clarity.

Why is that important?

As discussed last week, Michael Saylor introduced a transformative way for corporations to manage treasury reserves.

Each company adopting this strategy brings fresh powder into Bitcoin, further fueling its growth.

If Amazon were to pass the vote (unlikely), it could mean $4.4 billion flowing into Bitcoin.

The important is Microsoft’s statement —> choosing Ethereum over Bitcoin. This validates our conviction that Ethereum is the long-term play for enterprise adoption.

While ETH’s price has lagged behind BTC this year, increased institutional adoption could quickly close that gap in 2025.

Microsoft’s stance underscores Ethereum’s value as the foundational technology for blockchain solutions, and I believe this trend will accelerate.

What do you think?

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US Bitcoin ETFs Hold More BTC Than Satoshi Nakamoto

Satoshi vs. TradFi. Source: Dall-e

For the first time, U.S. Bitcoin spot ETFs collectively hold over 1.1 million BTC.

That’s surpassing the estimated holdings of Bitcoin's pseudonymous creator, Satoshi Nakamoto.

This milestone highlights the growing influence of traditional finance in a space once dominated by early crypto pioneers and anarchist ideals.

Learn more: The Block

Where will BTC finish this year?

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My Thoughts

There are still many investors who believe that crypto, or Bitcoin, is an anarchistic way to show the big banks.

This can’t be further from the truth.

The record-breaking interest from traditional finance (TradFi) is just one of the signs of a significant shift in the crypto landscape.

Now, Wall Street is slowly gaining “control” over the asset, helping not only push the price up but also help the market mature.

One more sign: BlackRock, the world's largest asset manager, now recommends 1-2% exposure to Bitcoin.

Read more on the portfolio structure with 1-5% in Bitcoin here.

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Trump is long ETH and DeFi

DeFi adoption. Source: Dall-e

The World Liberty Multisig wallet, associated with Trump’s organization, has made significant purchases in the crypto market over the last few days.

In just a couple of hours, they bought:

  • Ethereum for $10m

  • Chainlink for $1m

  • Aave for $1m

And they keep buying these tokens.

This highlights interest in both Ethereum and decentralized finance (DeFi) protocols from Trump’s administration.

Learn more: Lookonchain, Ethscan

Why is that important?

For years, DeFi has faced heavy regulatory scrutiny, lawsuits, and a lack of clarity, which has hindered its mainstream adoption.

However, Trump’s vocal support for DeFi, alongside his administration’s active involvement in building a DeFi protocol and acquiring DeFi tokens, signal a regulatory shift is coming.

With this endorsement, we may see the barriers to DeFi begin to break down, enabling broader institutional and potentially even governmental integration.

This would be extremely helpful in achieving the mass adoption of blockchain, as DeFi is the natural use case for it.

All the best,

Matt Curda




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