You can find original article here WealthManagement. Subscribe to our free daily WealthManagement newsletters. A sharp pullback in the crypto market in recent days has cratered valuations for Bitcoin, Ethereum and other cryptocurrencies; however, advisors’ caution in allocating to crypto has largely insulated them from the volatility.  Advisors who allocate to crypto largely use ETFs. The crypto crash has prompted a surge in trading volume. (BlackRock’s spot bitcoin ETF, IBIT, for example, saw a re ...

Cryptocurrencies have become a valuable asset, with Bitcoin (CRYPTO: BTC) almost doubling over the past five years. ...

Core Insights - Bitwise has launched seven model portfolios focused on digital assets to cater to different investor risk preferences [2][5] - The portfolios will provide access to various types of ETFs, including spot crypto ETFs, crypto index ETFs, thematic ETFs, and crypto equity ETFs [2][4] - The model portfolios aim to help financial advisors allocate assets effectively in the crypto space, with a significant projected growth in model portfolio assets from $7.7 trillion in Q1 2025 to $13.2 trillion by 2029 [5] Portfolio Details - The "core" portfolios will offer broad exposure to the crypto ecosystem, while thematic portfolios will focus on specific themes such as stablecoins and tokenization [2] - A risk-managed portfolio will invest in two Bitwise funds that rotate between Bitcoin, Ethereum, and Treasuries based on momentum to address concerns about crypto volatility [3][7] - The models will include both Bitwise's own ETFs and third-party funds, enhancing diversification [4] Market Context - Many financial advisors currently rely on model portfolios for asset allocation, indicating a growing trend in the use of such models in the wealth management industry [5] - Bitwise aims to scale its model portfolio business across various platforms, particularly targeting large wealth manager platforms [6] - The portfolios will be systematically monitored and rebalanced to maintain target asset allocations and mitigate single-asset risk [7]

Group 1 - Fidelity Investments plans to launch a stablecoin called the Fidelity Digital Dollar (FIDD) on the Ethereum network, marking its latest move into the cryptocurrency space [2][6] - The FIDD stablecoin will be 1:1 backed by the U.S. dollar and will be available for use across Fidelity's trading platforms and on crypto exchanges [2][3] - The issuer of the stablecoin will be Fidelity Digital Assets, which has received conditional approval from the U.S. Office of the Comptroller of the Currency to operate under federal oversight [3][6] Group 2 - The launch of FIDD follows Fidelity's expansion of its digital asset portfolio, which includes crypto custody, trading services, and a retail-focused crypto trading app [4] - Fidelity has also introduced a crypto individual retirement account (IRA) that allows investors to hold Bitcoin, Ethereum, and Litecoin within tax-advantaged accounts [4] - The growing interest in stablecoins among financial institutions is partly driven by regulatory clarity, as seen with other major banks like JPMorgan and Bank of America exploring their own stablecoin developments [5]

Group 1: Crypto Market Dynamics - Crypto ETFs experienced significant outflows of $1.73 billion last week, marking their worst week since mid-November 2025, following a previous week's inflow of $2.2 billion, indicating fragile sentiment in digital asset markets [2][3] - The largest outflows were from Bitcoin, which saw withdrawals of approximately $1.09 billion, and Ethereum, which recorded about $630 million in outflows, while altcoins showed mixed results [3] - Major issuers faced substantial outflows, with BlackRock's iShares crypto products leading at $951 million, followed by Fidelity Investments with $469 million, and Grayscale Investments with $270 million [5] Group 2: Market Influences - A combination of macroeconomic factors and market-specific pressures contributed to the outflows, including dimming expectations for interest rate cuts, negative price momentum, and frustration over crypto's lack of benefit from the broader "debasement trade" [4] - Total crypto fund assets under management decreased to $178 billion, down from $193 billion the previous week, reflecting the impact of the outflows [6] Group 3: Gold Market Performance - In contrast to the crypto market, gold prices surged past $5,000 per ounce for the first time, trading near $5,080, with a 15% increase over the past 30 days and year-on-year gains exceeding 80% [7] - The demand for gold as a safe-haven asset has been driven by geopolitical tensions, including U.S.-NATO friction and renewed trade threats from Donald Trump [7]

Core Viewpoint - Nasdaq is seeking SEC approval to remove restrictions on options trading for crypto ETFs, which could enhance market accessibility and trading fairness for investors [1][3]. Group 1: Nasdaq's Proposal - Nasdaq filed a form with the SEC to amend options position and exercise limit rules for certain crypto assets [1]. - The proposed rule change aims to eliminate the previous 25,000 position and exercise limit restrictions for options on crypto ETFs [3]. - Nasdaq is requesting immediate effectiveness of the proposal, asking the SEC to waive the standard 30-day delay [4]. Group 2: Impact on Crypto ETFs - If approved, the rule change will affect various crypto funds, including those linked to Bitcoin and Ethereum launched by major asset managers like BlackRock and Fidelity [2]. - As of January 22, spot Bitcoin ETFs have total net inflows of $56.6 billion, while spot Ether ETFs have $12.34 billion in inflows [4]. Group 3: Market Implications - Nasdaq believes the change will promote "just" and "equitable" trading principles, eliminate discrimination, and foster a free and open market [3]. - The exchange asserts that the proposal does not impose significant burdens on competition and aims to protect investors [4].

Core Viewpoint - Thailand's SEC is implementing new provisions for crypto exchange-traded funds (ETFs) and developing digital assets as an investment class as part of a three-year plan aimed at enhancing market competitiveness and public confidence [1][2]. Group 1: Market Development - The three-year plan focuses on leveraging technology to develop digital assets, creating sustainable capital markets, and improving the financial wellbeing of the public [2]. - Thailand's crypto market is experiencing significant growth, with a valuation of $3.19 billion (THB 100 billion) and an average daily trading volume of $95 million (THB 2.99 billion) as of August 2025 [5]. - The SEC aims to balance market development with effective supervision to maintain a credible and accessible capital market [4]. Group 2: Regulatory Framework - The new provisions will include a regulatory framework for crypto ETFs and the exploration of issuing them in trust form [5]. - The Thailand Futures Exchange (TFEX) is considering enabling crypto futures trading alongside the new ETF rules expected to be introduced early this year [6]. - Thailand's approach integrates crypto into traditional finance, similar to the U.S. model, which includes using banks as market makers and approving spot ETFs to mitigate operational risks for retail investors [7]. Group 3: Strategic Positioning - Thailand is adopting a dual-track approach, utilizing a regulatory sandbox for bond tokens to support local issuers while formalizing ETFs to attract foreign capital [8].

Core Insights - Thailand is positioning itself as a progressive player in Southeast Asia's digital asset landscape by accelerating the integration of cryptocurrencies into its financial ecosystem [1] - The Thai SEC is preparing new regulations to support crypto ETFs, futures trading, and tokenized investment products [2] Group 1: Cryptocurrency ETFs - The SEC board has approved ETFs in principle, focusing on detailed rules for investment operations, including collaboration between asset managers and licensed crypto exchanges [2] - Thailand approved its first spot Bitcoin ETF in June 2024, initially limited to institutional investors, with plans to expand offerings to include other assets like Ethereum by October 2025 [3] - Investors may allocate up to 5% of diversified portfolios to digital assets under the new framework, appealing to risk-averse institutions while mitigating volatility concerns [4] Group 2: Crypto Futures Trading and Tokenization - The SEC is rolling out new rules for cryptocurrency futures trading on the Thailand Futures Exchange (TFEX), which will operate under the Futures Trading Act [5] - This setup supports price discovery, hedging, and wider participation without requiring investors to hold crypto directly [5] - Regulators will formally recognize digital assets under the Derivatives Act, providing a clear legal foundation for crypto futures [8]

Group 1 - Thailand's SEC plans to issue formal rules for crypto exchange-traded funds (ETFs) early this year, allowing regulated crypto ETFs to launch domestically and providing investors exposure without direct wallet or custody risk [1] - The SEC has approved the concept in principle and is finalizing investment and operational conditions, with portfolio allocations to digital assets capped at 5% for diversified investors [2] - The SEC will enable crypto futures trading on the Thailand Futures Exchange, recognizing digital assets under the Derivatives Act and introducing designated market makers to improve liquidity [3] Group 2 - Thailand's crypto market remains active despite a ban on crypto payments, with the largest exchange Bitkub recording approximately $60 million in daily trading volume and monthly crypto turnover exceeding ฿100 billion [4] - The baht has gained roughly 9% against the US dollar in 2025, prompting a Senate committee to seek clarity on whether heavy stablecoin trading is distorting the exchange rate [5] - The SEC is increasing oversight of financial influencers, requiring authorization for any investment recommendations linked to securities or returns [6] Group 3 - The SEC suspended operations of KuCoin Thailand after its capital fell below minimum requirements, with plans for the exchange to apply for a digital-asset broker license once the issue is resolved [7]

Core Viewpoint - Thailand's Securities and Exchange Commission (SEC) is advancing regulations to introduce crypto exchange-traded funds (ETFs) and crypto futures trading, aiming to align with global trends in digital asset adoption [1][2]. Regulatory Developments - The SEC plans to issue formal guidelines for establishing crypto ETFs and enabling crypto futures trading on the Thailand Futures Exchange (TFEX) [2][6]. - The regulatory framework is being developed in collaboration with asset management companies and licensed digital asset exchanges [3]. Advantages of Crypto ETFs - Crypto ETFs are designed to lower barriers and security risks for Thai investors, providing easier access to digital assets without the need for digital wallets or private key management [4][5]. - The SEC is considering the introduction of market makers for crypto ETFs to ensure adequate liquidity, potentially involving various financial entities [5]. Future Trading and Risk Management - Crypto futures will be traded on TFEX under the Futures Trading Act, offering investors hedging tools and sophisticated risk management options [6][7]. - The SEC is pursuing formal recognition of digital assets as an underlying asset class under the Derivatives Act, facilitating the trading of crypto futures [6]. Investment Strategy - The SEC recommends treating crypto as a distinct asset class rather than a speculative instrument, suggesting that investors with higher risk tolerance allocate 4-5% of their portfolios to digital assets while maintaining diversification [8].