Core Insights - Bitwise Asset Management has launched a new onchain investor offering through non-custodial vault strategies on Morpho, targeting up to 6% annual percentage yield (APY) on stablecoins, reflecting increasing institutional interest in decentralized finance (DeFi) yield opportunities [1][2][6] Group 1: Strategy Overview - The initial vault strategy is designed to generate yield by investing in overcollateralized lending pools, currently targeting an APY of around 6%, providing exposure to onchain fixed-income-style returns [2][3] - Vaults function as a portfolio of lending positions, allocating capital across programmable strategies to earn digital yield, combining onchain infrastructure with professional oversight [3][5] Group 2: Risk Management and Oversight - The vault curation and risk management will be led by Jonathan Man, emphasizing the complexity of managing onchain risk that has kept many investors from participating [4][5] - Bitwise aims to add value by providing professional guidance and risk management experience to these non-custodial tools, leveraging its 140-person team of investment and technology professionals [5] Group 3: Institutional Demand and Infrastructure - Morpho provides programmable and non-custodial infrastructure for onchain lending and borrowing, with vaults operated through smart contracts [6] - The partnership with Bitwise highlights growing institutional demand for allocating capital onchain through noncustodial infrastructure, with vaults emerging as a core building block of onchain finance strategies [6][7]

Company Overview - BitGo achieved a valuation of $2.59 billion after its stock opened 24.6% higher at $22.43 per share, surpassing the $18 offer price in its New York debut [1] - The company sold 11.8 million shares, raising $212.8 million, with the offering price exceeding the marketed range of $15 to $17 [2] - BitGo is positioned as a profitable and regulated "digital asset infrastructure company," which may insulate it from daily price fluctuations of cryptocurrencies [5] Market Context - BitGo's IPO is seen as a significant indicator of market appetite for crypto listings in 2026, following a period of low activity in the sector [3] - The crypto market has faced volatility, particularly after a selloff in the fourth quarter of 2025, with Bitcoin experiencing a 6.4% decline for the year [4] - A more favorable regulatory environment under the Trump administration has encouraged crypto-linked businesses to pursue capital markets [3] Regulatory Developments - BitGo received approval from a top U.S. banking regulator to convert its state trust bank charter to a national charter, enabling nationwide operations [6]

Core Viewpoint - Laser Digital has launched a bitcoin diversified yield fund aimed at providing long-term holders of bitcoin with returns through various trading strategies and arbitrages Group 1: Fund Overview - The fund is the first natively tokenized bitcoin yield fund, developed in collaboration with tokenization specialists KAIO [2] - It is an upgrade of the Bitcoin Adoption Fund launched in 2023 and will be custodied by Komainu, which is backed by Blockstream and Laser Digital [2] Group 2: Investment Details - The fund is available only to accredited investors in eligible jurisdictions outside the U.S., with a minimum subscription amount of $250,000 or BTC-equivalent [3] - It targets long-term bitcoin holders, aiming to provide over 5% excess net return over BTC performance across various market conditions over rolling 12 months [3] Group 3: Market Context - Recent market volatility has highlighted the need for yield-bearing, market-neutral funds based on calculated decentralized finance strategies as a natural evolution in crypto asset management [4]

Core Insights - Bitwise Asset Management launched the Bitwise Chainlink ETF on NYSE Arca, marking it as the second LINK-based spot ETF in the U.S. [1] - Chainlink's current trading price is $14.25, the highest in the past month, with a nearly 5% increase in the last day [1]. - The ETF aims to provide investors with a new investment avenue in Chainlink's foundational blockchain infrastructure [2]. Fee Structure - The Bitwise Chainlink ETF (CLNK) will offer 0% fees for the first three months on the first $500 million in assets, similar to Grayscale's promotional fee waiver [2]. - After the promotional period, CLNK will charge a fee of 0.34%, slightly lower than Grayscale's 0.35% [3]. Market Context - Grayscale's LINK fund (GLNK) began trading as a spot ETF in December and has grown to $87 million in assets under management since its inception [3]. - LINK-based exchange-traded products have been available in European markets for several years, with notable listings such as the 21Shares Chainlink ETP in January 2022 and the Global X Chainlink ETP in March 2023 [4]. Chainlink Overview - Chainlink is a decentralized oracle network that connects blockchain smart contracts to real-world data, compatible with over 70 blockchain ecosystems, including Ethereum and Avalanche [5]. - As of 2025, more than 1,600 projects utilize Chainlink's technology [5]. Company Perspective - Bitwise CEO highlighted Chainlink's consistent execution and dominance in its category, suggesting significant growth potential ahead [6].

Core Insights - Chainlink (LINK) has seen a 4% increase in value over the past 24 hours, driven by two significant catalysts: the launch of Bitwise's spot Chainlink ETF and a Senate Banking Committee draft bill granting LINK commodity status similar to Bitcoin [1][4] Group 1: Bitwise Chainlink ETF Launch - Bitwise has received approval to list its spot Chainlink ETF on NYSE Arca, with trading expected to commence this week [2] - The ETF will offer a full fee waiver for the first three months, covering up to $500 million in assets, after which a management fee of 0.34% will apply [2] - The fund launched with $2.5 million in seed capital, equivalent to 100,000 shares priced at $25 each [2] - Coinbase Custody will manage the LINK holdings, while BNY Mellon will handle cash custody [2] Group 2: Senate Bill and Regulatory Status - The Senate Banking Committee's draft bill classifies Chainlink as a commodity under CFTC oversight, similar to Bitcoin, thus avoiding SEC regulations [4] - LINK is recognized as a "non-ancillary asset" due to the existence of a Chainlink ETF trading on major exchanges prior to January 1 [4] - This classification reduces regulatory uncertainty and eliminates SEC disclosure requirements for LINK [4] Group 3: Market Activity and Demand - Following the ETF announcement, daily trading volume for LINK surged nearly 45%, and futures open interest rose to $665 million, indicating new positions rather than short-term trades [3] - Grayscale's Chainlink ETF has reported inflows exceeding $62 million, reflecting strong institutional demand [5] - Bitwise manages approximately $15 billion in crypto assets and is expanding its presence in regulated altcoin ETFs, which may further enhance institutional interest in LINK [5][6] Group 4: Technical Analysis - LINK is attempting to break out of a significant triangle pattern that has constrained its price since November 2024, with critical resistance located at $14-$15 [9][10] - A breakout above $15 would signal a potential upward movement, with targets set at $16, $18, and ultimately $24-$30 [11][12] - Support levels are identified at $12.90-$13.00, with a break below $12 potentially invalidating the triangle pattern [13]

Core Viewpoint - Crypto asset manager Bitwise has criticized Senator Elizabeth Warren's efforts to block Bitcoin investments in 401(k) retirement plans, arguing that her stance may hinder crypto adoption in mainstream finance [1][2]. Group 1: Criticism of Senator Warren - Matt Hougan, CIO of Bitwise, labeled Senator Warren's proposals as "ridiculous," asserting that volatility should not be a reason to block Bitcoin investments in retirement funds, as stocks also experience price swings [2][4]. - Senator Warren has expressed concerns to the SEC regarding the management of risks associated with cryptocurrencies in retirement accounts, suggesting that including crypto may not lead to better outcomes for savers [3][6]. Group 2: Regulatory Context - In August 2025, an executive order by U.S. President Donald Trump directed the Department of Labor to review restrictions on alternative assets, potentially allowing cryptocurrencies in 401(k) offerings [3]. - The inclusion of cryptocurrencies in retirement plans is a key objective for crypto firms, aiming for broader access to retail investors and greater acceptance of digital assets in mainstream finance [4][5]. Group 3: Market Dynamics - Hougan pointed out that Bitcoin has been less volatile over the past year compared to Nvidia stock, questioning the lack of restrictions on including Nvidia in 401(k) plans while targeting Bitcoin [4]. - Lawmakers are working on a crypto market structure bill, expected by the end of January 2026, which may further clarify the regulatory landscape for cryptocurrencies [5].

Core Insights - Chainlink (LINK) is experiencing increased interest from crypto whales and institutional investors, indicating a resurgence of confidence in the oracle token amidst market uncertainty [1] Accumulation Activity - Recent on-chain data reveals a significant uptick in accumulation, with a notable whale withdrawing 171,000 LINK (approximately $2.36 million) from Binance, adding to an existing holding of nearly 790,000 LINK acquired at an average price of $12.72 over the past month [2] - This accumulation trend suggests a long-term bullish sentiment, with investors anticipating LINK's potential outperformance in the coming months [2] Derivatives Market Activity - The derivatives market is showing increased speculative interest, as evidenced by a newly created wallet depositing $5 million in USDC on Hyperliquid DEX and opening leveraged long positions in LINK (5x) and DOGE (10x) [3] - The combined position is currently valued at $28.2 million, despite showing a floating loss of approximately $600,000, indicating a strong appetite among sophisticated traders for leveraged exposure to LINK despite short-term volatility [3]

Core Insights - Strategy, led by Michael Saylor, continues to accumulate Bitcoin, solidifying its position among public companies holding BTC [1] - Strategy's total Bitcoin holdings have reached 672,497 BTC, valued at approximately $50.44 billion, with an average acquisition cost of $74,997 per Bitcoin [2] - Peter Schiff critiques Strategy's returns, arguing that a 16% profit over five years equates to an average annual return of just over 3%, which he considers disappointing compared to traditional assets [3] Group 1 - Strategy purchased an additional 1,229 BTC for about $108.8 million at an average price of $88,568 per coin [2] - The company reports a BTC yield of 23.2% YTD 2025, with an unrealized profit of $8.31 billion [2] - Schiff's skepticism highlights the debate over the efficiency of Bitcoin as an investment compared to other asset classes [3] Group 2 - The accumulation of Bitcoin by Strategy reflects a broader trend of institutional investment in the crypto market [4] - MicroStrategy's long-term buy-and-hold strategy indicates confidence in Bitcoin as a store of value, despite discussions on opportunity cost [5]

Core Viewpoint - Bitwise Asset Management has announced the uplisting of the Bitwise 10 Crypto Index ETF (BITW) to NYSE Arca, marking a significant milestone for crypto as an asset class, with the fund offering diversified exposure to the top 10 crypto assets [1][5]. Company Overview - Bitwise Asset Management is a global crypto asset manager with over $15 billion in client assets and a range of more than 40 crypto investment products, including ETFs and private funds [7][8]. - The firm has an eight-year track record and serves over 4,000 private wealth teams, RIAs, family offices, institutional investors, and 15 banks and broker-dealers [8]. Fund Structure and Strategy - BITW was initially launched in 2017 as the first crypto index fund, aiming to track the Bitwise 10 Large Cap Crypto Index, which includes the 10 largest crypto assets by market capitalization [2][4]. - Under its new ETP structure, BITW will allocate 90% of its holdings to major crypto assets like Bitcoin, Ether, Solana, and XRP, while capping other crypto assets at 10% [6]. - The fund employs active screening and monthly rebalancing to ensure it captures the investable crypto asset market opportunity [5]. Market Position and Adoption - The uplisting of BITW is seen as a watershed moment for the crypto market, indicating the asset class's rapid adoption into mainstream investing [5]. - The index approach allows investors to gain exposure to the crypto market without needing to predict which assets will succeed [4]. Asset Allocation - As of the uplisting, BITW's holdings included Bitcoin (74.34%), Ether (15.55%), XRP (5.17%), Solana (3.07%), and several other smaller allocations [7].

Core Insights - Digital assets are transitioning from an experimental phase to a fundamental component of financial infrastructure, with large institutions increasingly utilizing public blockchains [1] - The concept of "hybrid finance" is emerging, characterized by the integration of crypto systems with traditional finance to enhance market operations [1] Integration of Digital Assets - Digital assets are becoming part of the traditional economy, with expectations for 2026 to see further consolidation into the real economy [2] - The report highlights the growing use of stablecoins and tokenized assets, particularly in private credit and U.S. Treasuries, along with an increase in tokenized funds and deposits [2] Bitcoin Mainstreaming - Bitcoin's adoption is accelerating, evidenced by over $90 billion in U.S. spot ETF inflows and more than one million BTC held by corporate treasuries across 190 public companies [3] - The asset management firm anticipates broader access to Bitcoin through wealth platforms and retirement accounts, as well as more direct institutional settlements from custody banks [3] Bitcoin Price Projections - Three potential price trajectories for Bitcoin are outlined: a soft landing could push prices above $150,000, steady growth may result in a range of $110,000–$140,000, while stagflation or recession could lead to short-term price declines before recovery [4] - Competition to establish a settlement layer for hybrid finance is intensifying, with Ethereum remaining a key player despite emerging rivals [4] Financial System Transformation - The year 2026 is expected to witness a financial system rearchitecting around public blockchains and digital settlement layers [5] - The report notes increasing regulatory divergence across regions, including Europe's MiCA framework, U.S. stablecoin policies, and Asia's Basel-style approaches, alongside structural shifts such as miners transitioning to high-performance computing and AI infrastructure [5]