July 2025 Market Commentary: Digital Assets Rise, Laws Take Shape
Author: Hillroute Date: July 31, 2025
Executive Summary:
The Big Picture
1. Market Momentum & Macro Catalysts
Bitcoin hit $123K before easing to $118K (+26.5% YTD), briefly leading gold in returns. Ethereum surged 59% MTD on $2B ETF inflows and the $1.6B Ether Machine debut. Total market cap reached $3.83T; altcoins rallied post-GENIUS Act, but altseason remains subdued.
2. Institutional Expansion & Productization
BlackRock’s IBIT beat IVV in fee efficiency despite lower AUM. Grayscale’s GDLC became the first multi-asset spot ETF. Strategy entered the top 10 U.S. treasuries with $74.46B in BTC. Coinbase launched CFTC-approved nano perpetuals, closing a key infrastructure gap.
3. Regulation, Policy & Stablecoins
The GENIUS Act established the first U.S. stablecoin law. Circle applied for a trust bank charter to bolster USDC. Japan piloted a Solana stablecoin; South Korea backed private issuers. Bhutan expanded Binance Pay; Dubai approved tokenized Treasuries for DeFi.
4. Security & Trust Infrastructure
Crypto hacks topped $2.47B in H1. Ethereum saw the most attacks; Bybit, Cetus, and CoinDCX faced major breaches. Wallet exploits and phishing led losses. The U.S. Secret Service recovered $225M in USDT and expanded global crypto crime efforts.
Market Momentum & Macro Catalysts
Bitcoin Briefly Tops Gold in YTD Gains Before Settling Lower
Bitcoin started July near $105K, surged to a new all-time high of $123K mid-month, and is now trading around $118K. On July 14, it briefly overtook gold as 2025’s top-performing asset with a +30% YTD gain, before cooling to +26.55%, while gold edged ahead at +28.29% YTD ($3,331/oz). Institutional demand remains strong, and BTC price action holds above key technical levels.
Key BTC Metrics (as of July 30):
- Spot ETF volume: $1.12T | Spot ETFs dominate with 94.22% share
- BTC dominance: 61.52% | Binance long/short ratio: 0.95
Ethereum Soars 59% on ETF Inflows & Ether Machine Listing
ETH jumped from $2,400 to a $3,941 peak in July (+63.86%), now holding around $3,834 (+59% MTD). The rally was driven by $2B in spot ETF inflows and the $1.6B Nasdaq debut of Ether Machine, backed by 400K+ ETH — now the largest publicly listed ETH treasury.
Key ETH Metrics:
- Spot ETF volume: $122.06B | Spot ETFs account for 99.52% of exposure
- ETH dominance: 12.04%
Total Crypto Market Nears $4T as Altcoins Accelerate Post-GENIUS Act
The total crypto market cap reached a record $3.83T, fueled by BTC’s breakout and rising altcoin activity. The GENIUS Act, which restricts yield-bearing stablecoins, boosted institutional ETH demand and altcoin interest.
Altcoin Market Metrics:
Institutional Expansion & Productization
IBIT Outpaces IVV in Revenue Efficiency
BlackRock’s iShares Bitcoin Trust (IBIT) earned $187.2M in fees from $52B AUM, edging out the $187.1M from IVV’s $600B+ AUM — thanks to IBIT’s higher 0.25% fee vs IVV’s 0.03%.
- IBIT: +138% since Jan 2024, tracking BTC’s surge
- IVV: +33% over the same period, backed by equities and 1.36% yield
- IBIT reflects crypto momentum, while IVV holds long-term investor trust
First Multi-Asset Spot ETF Approved
Grayscale’s Digital Large Cap Fund (GDLC) was converted into a spot ETF – the world’s largest multi-token fund.
- Holds BTC, ETH, SOL, XRP, ADA (80% BTC)
- $755M AUM, 2.5% fee, benchmarks CoinDesk 5 Index
- Opens the door for broader ETF diversification
Strategy Joins Top 10 U.S. Corporate Treasuries
Strategy (formerly MicroStrategy) surpassed NVIDIA as the 9th-largest U.S. treasury with $74.46B in BTC (628,791 coins, avg cost ~$66.4K).
- Sits on ~$30B in unrealized gains
- Largest public BTC holder globally
- 3rd-largest overall after Satoshi and BlackRock
Coinbase Brings Perpetual Futures to U.S.
On July 21, Coinbase launched CFTC-regulated nano BTC & ETH perpetual futures, bringing a core crypto product to the U.S. for the first time.
- 5-year rolling contracts (no expiry), up to 10x leverage
- Low 0.02% fee, fully CFTC-compliant
- Fills a key infrastructure gap for institutional U.S. trader
Regulation, Policy & Stablecoins
U.S. Advances Regulatory Framework
- The GENIUS Act became the first federal stablecoin law, bringing much-needed clarity to the sector
- Circle applied for a national trust bank license to strengthen USDC’s position
Asia Leads Stablecoin Innovation
- Japan’s Minna Bank launched a Solana-based stablecoin pilot for mobile payments, while South Korea pivoted from its CBDC pilot to propose private-sector won-backed stablecoins
- Bhutan integrated Binance Pay across 1,000+ merchants, with crypto visitors spending 3x more than traditional travelers
CBDC Strategies Diverge
- Russia mandates digital ruble adoption by enterprises by 2026, facing bank resistance
- South Korea’s shift from CBDC to private stablecoins reflects growing preference for decentralized models
Security & Trust Infrastructure
Crypto Hacks Reach $2.5B — Ethereum, Bybit & CoinDCX Hit Hard
- Losses reached $2.47B in H1 — already surpassing 2024’s full-year total.
- Bybit and Cetus accounted for $1.78B; Ethereum was the top target, with $1.5B lost in 164 attacks.
- CoinDCX suffered a $44M hack via a compromised LP account. No user funds were affected; platform was restored via treasury.
Breakdown:
- Wallet attacks: $1.7B
- Phishing: $410M
- Q2 losses dropped 52% from Q1, hinting at improving defenses
Secret Service Ramps Up Crypto Crime Action
- The U.S. Secret Service has seized $400M+ in digital assets and leads international training through its GIOC unit.
- Partnerships with Coinbase and Tether enabled $225M USDT recovery.