Bitcoin Dethrones Gold: A Historic First with ETFs

Amid revolutionary announcements, technological evolutions, and regulatory turbulence, the crypto ecosystem continues to prove that it is both a territory of limitless innovations and a battleground of regulatory and economic conflicts. Here is a summary of the most notable news from the past week around Bitcoin, Ethereum, Binance, Solana, and Ripple.

Bitcoin ETFs Surpass Gold ETFs in a Historic First for the US Market

In December 2024, a significant milestone was reached in the US investment landscape as Bitcoin exchange-traded funds (ETFs) surpassed gold ETFs in terms of assets under management (AUM). This development marks a turning point in the history of precious metals and digital asset investment.

While gold ETFs have been present in the market for over two decades, Bitcoin ETFs were only introduced in January 2024. Despite the shorter timeframe, these ETFs have experienced a remarkable surge in popularity among investors.

Several factors have contributed to this shift, including the approval of Bitcoin ETFs by regulators, the enthusiasm of financial giants like BlackRock and Fidelity, and the attractiveness of Bitcoin as “digital gold” with a limited supply of 21 million coins.

This success also reflects a generational shift in investment preferences, with younger investors opting for modern digital assets over traditional options. With growing institutional demand and stable investment flows, Bitcoin ETFs are well-positioned to continue dominating and redefining investor preferences on a global scale.

The Fed Lowers Its Rates, and the Crypto Market Feels the Shift

Last Wednesday, the American Federal Reserve reduced its benchmark rate by 25 basis points, leading to a noticeable decline in the crypto market.

Although this decision was largely anticipated, the upward revision of inflation forecasts for 2025 to 2.5% (up from 2.1% previously) came as a surprise to many investors. This triggered a wave of massive liquidations and intensified volatility in major cryptos, including Bitcoin and Ether.

Since then, the market has been in the red and struggling to recover. This situation illustrates the complex interaction between the Fed’s monetary policy and the dynamics of cryptocurrencies, highlighting their dependence on economic decisions and their intrinsic volatility.

Binance Accused of Plagiarism over the Memecoin PNUT

Mark Longo, the owner of the “Peanut the Squirrel” brand, has accused Binance of using his image and name to promote the memecoin PNUT without permission.

A cease and desist letter has been sent, stating that this use infringes copyright and could lead to sanctions of up to $150,000 per infringement. Longo explains that the mascot, initially used for educational and charitable purposes, has been misappropriated, creating confusion among investors.

As PNUT reaches a market capitalization of $2.25 billion, this case raises fundamental questions about intellectual property in the memecoin sector. Binance, which has not yet officially responded, faces legal repercussions and potential reputational damage if it persists in this contested use.

This case could set a significant precedent for the regulation of memecoins and creators’ rights.

BTC Enters the European Debate

Bitcoin is making a forceful entry into the European political arena. Sarah Knafo, a Member of the European Parliament, has called for imitating the United States by adopting a strategic approach to Bitcoin, which some refer to as “digital gold.”

She criticizes the European Union for its costly economic choices and restrictive fiscal policies towards cryptocurrency holders. Knafo urges European states to build strategic reserves of Bitcoin and develop initiatives around the crypto industry.

Meanwhile, Germany, which recently liquidated 50,000 bitcoins at an average price of $54,000, is under scrutiny for its controversial management of its digital assets. However, some voices remind us that Bitcoin, while promising, is not a miracle solution to current economic and energy challenges.

The Trump Crypto Project Bets on Ethereum

World Liberty Financial (WLFI), which is backed by members of the Trump family, has invested $2.5 million in Ethereum through the Cow Protocol.

This strategic choice is part of a larger plan to strengthen the pillars of the crypto industry, with recent investments totaling $45 million in assets such as Chainlink, Aave, and Wrapped Bitcoin.

WLFI relies on strong collaborations, including the integration of a stablecoin (USDe from Ethena Labs) to enhance liquidity and partnerships with influential figures like Justin Sun, who injected $30 million into the project.

With a goal of raising $300 million, WLFI has already reached $72 million thanks to a methodical strategy and a cooperative vision focused on stability in a sector often perceived as volatile.