Apr 2025 Market Commentary: Digital Assets: Growth Amid Turmoil
Author: Hillroute Date: April 30, 2025
Executive Summary:
Market Performance: Bitcoin rebounded from $74,500 to near $95,000 in April, up 1.5% YTD with $3.06B in ETF inflows. The “digital gold” narrative has strengthened, with Bitcoin showing a strong 0.70 correlation with gold. Ethereum recovered above $1,800 with scalability improvements on horizon. Solana gained corporate adoption while SEC approved XRP ETFs and the CME Group is preparing to launch XRP futures next month.
Mining & Crypto-Equity: Public miners sold 40%+ of mined BTC in March amid rising costs and potential 36% tariffs threatening US operations. Trump Jr. launched American Bitcoin with Hut 8 while VanEck prepares NODE ETF for crypto-related stocks.
Regulation: New SEC Chair Atkins pledged clearer rules, approved ETH ETF options, and showed settlement progress with Ripple. Trump overturned IRS DeFi broker rule while FDIC now allows banks to engage in crypto services without approval.
Infrastructure: Circle introduced a stablecoin refund protocol for dispute resolution, while Lombard Finance launched a toolkit enabling one-click Bitcoin staking. Nasdaq and NYSE advanced toward 24/7 trading and expanded crypto-linked offerings. Polygon partnered with Reliance Jio to scale Web3 solutions for 450M users using zero-knowledge tech.
Institutional: Bitwise listed four crypto ETPs in London as banks shifted to regulated products. Ripple-owned Hidden Road secured FINRA registration and OKX relaunched in US after $500M settlement.
Macro & Adoption: Gold-backed cryptos surged 26% YTD with record COMEX stocks amid tokenized gold nearing $1.4B market cap. Trump implemented escalating tariffs (up to 245% on China). Global crypto adoption accelerated with GCash adding USDC in Philippines, CPIC launching $100M tokenized fund in Hong Kong, and Panama City approving crypto for municipal payments.
Market Performance: Bitcoin, Ethereum & Altcoins
Bitcoin’s April 2025 Recovery Fueled by Institutional Demand, Strengthening “Digital Gold” Narrative
In April 2025, Bitcoin (BTC) experienced significant volatility, initially falling to approximately $74,500 amid escalating U.S.-China trade tensions and concerns over President Trump’s tariff policies. However, BTC rebounded sharply, surpassing $90,000 by mid-April, and later approached $95,000, turning positive year-to-date for the first time in nearly two months. As of now, Bitcoin is up 1.5% since December 31, outperforming the Nasdaq 100’s 8% loss but trailing behind gold’s 26% gain. The “digital gold” narrative has strengthened, with Bitcoin showing a strong 0.70 correlation with gold, compared to a slightly weaker 0.53 correlation with the Nasdaq 100. Bitcoin posted a 10% gain in the third week of April — its strongest weekly performance since mid-November 2024.
Institutional demand further fueled Bitcoin’s recovery, with US spot Bitcoin ETFs recording $3.06B in net inflows — the highest weekly figure since mid-November 2024. Meanwhile, Arizona is advancing legislation that could make it the first US state to hold Bitcoin as a treasury reserve asset, with two Bitcoin Reserve Bills scheduled for a final vote. These developments reflect growing institutional and state-level interest in Bitcoin, reinforcing its evolving role as a macro hedge in the current economic landscape.
Ethereum’s Recovery in April 2025 Faces Resistance, Scalability Improvements on the Horizon
While Bitcoin led the rally, Ethereum (ETH) also regained momentum, climbing back above the $1,800 level after dipping near $1,500. A surge in daily trading volume reflected renewed investor interest, though ETH continues to face resistance between $1,850 and $1,900. It remains below key technical levels — including the 20-week SMA ($2,560) and 50-week SMA ($2,850) — which signals ongoing bearish pressure.
Despite this, Ethereum’s scalability prospects remain promising. Notable proposals like EIP-9698, aiming to increase the gas limit by 100x, and Vitalik Buterin’s Layer-Zero update, are expected to greatly enhance the network’s throughput and transaction efficiency, positioning Ethereum for stronger performance as these upgrades take shape.
Solana & XRP ETFs Make Waves in Crypto Markets
April also saw renewed momentum across altcoins, with Solana (SOL) rebounding from a 20% decline in early April to trade between $134 and $150 by mid-month. This resurgence was supported by corporate adoption, as firms like Janover, Upexi, and WonderFi added SOL to their balance sheets across industries such as real estate, consumer goods, and investment. Janover plans to stake SOL for 5–7% annual yield and may run a validator node, underlining Solana’s network appeal. In parallel, Fidelity filed for a spot Solana ETF on Cboe, offering institutional investors direct exposure to SOL.
Meanwhile, the SEC gave tacit approval to ProShares to launch three XRP-based ETFs: the Ultra XRP ETF (2x leverage), Short XRP ETF, and Ultra Short XRP ETF (-2x leverage). These funds build on the success of Teucrium’s 2x XRP ETF, which debuted with $5M in trading volume. In a further expansion of XRP’s presence, the CME Group is preparing to launch XRP futures next month, enhancing liquidity and accessibility for institutional investors.
The spot ETF landscape also expanded with Grayscale filing for a spot Avalanche ETF on Nasdaq, aiming to provide direct AVAXexposure. Although the SEC has yet to approve any spot altcoin ETF beyond Ethereum, filings from VanEck and others signal deepening institutional interest across the altcoin space.
Mining & Crypto-Equity Instruments
Bitcoin Mining Challenges and the Rise of Crypto-Related ETFs
In March 2025, public Bitcoin miners sold over 40% of the BTC they mined, marking the highest monthly sell-off since October 2024. This shift reversed the post-halving trend of holding BTC for treasury purposes and was driven by rising operational costs, including energy and hardware, amid growing macroeconomic uncertainty and increasing U.S. trade tariffs on mining components. Industry leaders warn that proposed tariffs of up to 36% on mining machines imported from Southeast Asia could further squeeze profit margins, potentially making U.S. mining operations unviable. This threat has prompted some miners to consider relocating operations abroad, especially to regions like Finland, which are tariff-free.
In a related move, Eric and Donald Trump Jr. have partnered with Hut 8 to launch American Bitcoin, a U.S.-based mining company. The company aims to leverage low U.S. energy costs and has plans to go public, with the Trump brothers taking a 20% stake and Hut 8 contributing 61,000 mining machines.
Meanwhile, VanEck is set to launch the Onchain Economy ETF (NODE) on May 14th. The ETF will actively manage a portfolio of stocks related to crypto exchanges, miners, and infrastructure, providing exposure to businesses shaping the digital economy. This launch comes amid growing interest in crypto equity ETFs as more crypto-related stocks go public, signaling an evolving market landscape despite the mining sector’s challenges.
Regulatory & Policy Shifts
Crypto Regulations in Focus: SEC Actions, DeFi Rule Reversal, and Legal Developments
Since March 2025, the U.S. Securities and Exchange Commission (SEC) has hosted a series of crypto roundtables under new Republican leadership, aiming to reshape the regulatory landscape for digital assets. 1st roundtable, led by Commissioner Hester Peirce, centered on whether crypto tokens should be classified under existing securities laws or require a new, technology-neutral regulatory framework. Industry voices, such as a16z crypto’s Miles Jennings, advocated for rules tailored to blockchain innovation, while Democratic Commissioner Caroline Crenshaw cautioned against weakening investor protections. At the 2nd roundtable, interim Chairman Mark Uyeda proposed a temporary oversight framework to support innovation while Congress works on a comprehensive crypto market structure law. 3rd sessionmarked the debut of new SEC Chair Paul Atkins, who criticized past regulatory uncertainty for stifling innovation and pledged to offer clearer rules. Atkins, signaling a shift from former Chair Gary Gensler’s enforcement-heavy approach, reaffirmed the agency’s intent to pause several crypto-related legal actions and promote a more constructive regulatory environment. Collectively, these roundtables reflect the SEC’s evolving stance toward balancing innovation with investor protection in the U.S. crypto sector.
A key milestone was the SEC’s approval of options trading for BlackRock’s iShares Ethereum Trust (ETHA), making it the first spot ether ETF to offer such instruments — a move expected to boost institutional participation. On the legislative front, President Trump signed a resolution overturning an IRS rule that had classified DeFi platforms as brokers. The reversal, backed by bipartisan lawmakers, was seen as a victory for user privacy and could pave the way for broader pro-crypto legislation.
Meanwhile, the U.S. Treasury removed TornadoCash from its sanctions list after a federal appeals court ruled its smart contracts could not be sanctioned. However, this lift comes amid continued scrutiny of crypto’s role in North Korean cybercrime, with Tornado Cash co-founder Roman Storm still facing trial in July. These developments collectively signal a more pragmatic regulatory posture, seeking to balance innovation with security concerns.
Ripple SEC Settlement Progress & FDIC’s New Crypto Guidance: Key Shifts in U.S. Crypto Regulation
Ripple Labs and the SEC jointly filed a motion to pause their appeals in the long-standing legal battle over XRP’s classification, indicating progress toward a settlement. The case, active since December 2020, centers on whether XRP qualifies as a security. Both sides have reached an “agreement in principle” on all claims, including those involving Ripple’s founders, though final SEC approval remains pending. This reflects a wider shift toward resolution in high-profile cases, following a similar pause request by the SEC and Gemini.
Meanwhile, new FDICguidance issued in March 2025 marks a regulatory shift for U.S. banks. The updated policy allows banks to engage in crypto-related services — such as custody and stablecoin reserve management — without prior approval, replacing restrictive 2022 measures. This clarity strengthens the integration of crypto into traditional finance, enabling innovation while maintaining standards for compliance and risk management.
eXch Crypto Exchange to Shut Down Amid Money Laundering Allegations
Crypto exchange eXch will cease operations on May 1 after being implicated in facilitating $35M in money laundering for North Korea’s Lazarus Group, tied to the $1.4B Bybit hack. While eXch denies deliberate involvement, it acknowledged processing limited funds and criticized the inadequate AML practices at other platforms.
The Bybit hack led to $5B in user withdrawals, though the exchange has since recovered 89% of stolen assets and reclaimed 7% of its market share as of April 10. The incident underscores ongoing vulnerabilities in the crypto ecosystem, reinforcing the need for robust compliance mechanisms.
DeFi & Infrastructure Innovation
Blockchain Innovation Accelerates: Circle, Lombard, Nasdaq, and Polygon Lead Integration Efforts
Circle has launched the Refund Protocol, a non-custodial smart contract system for stablecoin payment dispute resolution. Funds are locked in a contract with predefined addresses, and trusted arbiters can authorize refunds if disputes arise. If no issues occur, funds are released automatically. The system also allows early withdrawals with merchant consent. While offering increased security and autonomy, challenges like gas inefficiencies and inactive capital remain, with future updates potentially integrating lending protocols to monetize locked funds.
Lombard Finance, a Bitcoin infrastructure developer, has launched a software development kit (SDK) that enables wallets, exchanges, and other platforms to offer one-click Bitcoin (BTC) staking. Through its LBTC liquid staking token, users can earn a 3% annual yield while retaining liquidity. Already integrated by major platforms like Binance and Bybit, the SDK aims to unlock Bitcoin’s $154B potential in DeFi and broaden access to staking via leading wallets.
Traditional finance is also adapting. Nasdaq and NYSE are progressing toward 24/7 stock trading, partly inspired by crypto’s continuous markets. Nasdaq is also expanding crypto-linked products, including Solana futures ETFs, while the NYSE has gained approval to extend trading hours. In India, Polygon has partnered with Reliance Jio to bring blockchain-based solutions to Jio’s 450Musers. The collaboration aims to build real-world Web3 use cases—such as misinformation mitigation and verifiable digital services—within Jio’s ecosystem. A key focus is on scaling these applications without compromising decentralization or security. To achieve this, Polygon is advancing zero-knowledge (ZK) technology, which allows thousands of transactions to be processed off-chain and verified with a single cryptographic proof on-chain. This significantly reduces costs and increases speed while maintaining trust and security—enabling a scalable blockchain infrastructure for mass adoption.
Institutional Expansion & ETPs
Crypto ETPs Gain Traction as Banks Shift Holdings Away from Spot Crypto
Bitwise has listed four crypto exchange-traded products (ETPs) on the London Stock Exchange, targeting institutional and accredited investors. These include core and physically backed versions of Bitcoin and Ethereum ETPs, meaning each share is directly backed by actual BTC or ETH held in custody, rather than derivatives. The listings also include an Ethereum staking ETP, which allows investors to earn rewards through on-chain staking. This move aligns with Bitwise’s global expansion strategy amid rising institutional demand. In the U.S., Bitwise is pursuing SEC approval for a dual BTC-ETH ETF and has also filed for Dogecoin and Aptos ETFs, with projections of $50B in Bitcoin ETF inflows by end-2025.
Simultaneously, global banks have significantly reduced their direct exposure to spot crypto holdings, which now represent less than 3% of their total crypto assets under custody. By Q2 2024, banks held €341.5B($368.3B) in crypto assets, with 92.5% allocated to regulated ETPs. This shift reflects increasing adherence to regulatory guidance aimed at minimizing risk from unregulated spot holdings, reinforcing a broader institutional pivot toward safer, compliant investment vehicles.
Ripple-Owned Hidden Road Gains FINRA Registration, OKX Relaunches U.S. Exchange After DOJ Settlement
Ripple-owned prime brokerage firm Hidden Road has secured FINRA registration, strengthening its offering of regulatory-compliant fixed-income services for institutional clients. Acquired by Ripple on April 8 for $1.25B, Hidden Road processes over $10B in daily transactions and aims to become the largest non-bank prime broker worldwide. The acquisition aligns with Ripple’s broader push into traditional financial infrastructure, building on its recent money transmitter licenses and the SEC’s dismissal of its lawsuit. It also enhances the potential utility of the XRP Ledger across institutional use cases.
In a parallel development, crypto exchange OKXhas relaunched its U.S. platform just two months after settling a $500M case with the U.S. Department of Justice over anti-money laundering violations and unlicensed operations. The firm, now led in the U.S. by new CEO Roshan Robert — a former executive at Barclays and Hidden Road — has established a regional headquarters in San Jose. While the DOJ settlement involved no customer harm or individual charges, OKX’s relaunch signifies strong regulatory recalibration and growing confidence in the evolving U.S. crypto landscape under the Trump administration.
Macro Trends & Real-World Adoption
Gold Markets Surge: Record COMEX Stocks and Rising Tokenized Gold Demand
Gold-backed cryptocurrencies like Paxos Gold (PAXG) and Tether Gold (XAUT) surged over 26% year-to-date, mirroring spot gold’s rally as safe-haven demand intensified. Gold ETFs saw their highest inflows since 2022, adding 226.5 tonnes in Q1 2025, while tokenized gold assets’ market cap neared $1.4B. Gold stocks in COMEX warehouses reached a record 43.3M ounces (£135B) by March 2025, marking a 153% increase since November 2024. This surge occurred while spot gold prices hit new highs above $3,300 per ounce, driven by persistent economic uncertainty and tariff-related concerns. The widening premium between COMEX futures and London spot prices highlights ongoing market dislocation. With tariff decisions still pending, market participants remain focused on physical gold flows and price spreads. Overall, gold’s strategic appeal remains strong amid rising macroeconomic and geopolitical volatility.
Trump’s April Tariff Shockwave: Broad Levies, Temporary Reprieve, and Escalation with China
In April 2025, President Trump launched a sweeping trade overhaul starting with a 10% baseline tariff on all imports and reciprocal levies based on partner nations’ tariffs on U.S. goods. A flat 25% tariff on automobile imports was also enacted. Trump positioned the move as a return to pre-income tax economic models, proposing to replace the IRS with tariff-generated revenue. Mid-month, Trump announced a 90-day pause on most tariffs for countries that hadn’t retaliated, maintaining only the 10% base rate. However, tariffs on China surged to 125%, later escalating to 245%in response to Beijing’s retaliatory actions, including halting Boeing deliveries and U.S. aircraft equipment purchases. While Trump signaled openness to a trade deal, he insisted China must make the first move, reinforcing his hardline stance amid intensifying U.S.-China trade tensions.
GCash Expands Stablecoin Support in the Philippines
Crypto adoption continues to accelerate globally, with significant developments in the Philippines. In the Philippines, GCash, the nation’s largest digital wallet, has added support for USDC on its GCrypto platform, expanding its stablecoin offerings. GCash, backed by Ant Group, Ayala Corp., and Globe Telecom’s 917Ventures, processes over $65B annually and holds a major stake in the country’s $38.3B remittance market. While stablecoins represent less than 5% of remittance transactions, usage is on the rise. GCrypto now supports 39 digital assets, including PayPal’s PYUSD. Valued at $5B, GCash is reportedly eyeing an $8B IPO by the end of 2025, although management remains in no rush due to strong funding backing.
CPIC Launches Tokenized Money Market Fund in Hong Kong
In Hong Kong, China Pacific Insurance (CPIC) launched a $100M tokenized U.S. dollar money market fund via the HashKey Chain, catering to institutional investors. The fund, backed by short-term fixed-income instruments and administered by Standard Chartered, marks a significant step in the rapid growth of real-world asset (RWA) tokenization in Asia. The global RWA market has surged nearly 500% year-over-year, reaching $4.8B, driven by demand for faster settlements and deeper blockchain integration in traditional finance sectors.
Panama City Approves Crypto for Tax and Service Payments
Meanwhile, Panama City has officially approved the use of Bitcoin, Ether, USDC, and USDT for municipal tax payments, permits, and services. Mayor Mayer Mizrachi announced a partnership with a local bank to instantly convert crypto into USD, ensuring legal compliance while advancing mainstream crypto adoption in governance and civic infrastructure. This decision highlights the growing role of digital assets in public services and governance, marking a major milestone for crypto integration in Latin America.