Recently, there's been an interesting phenomenon. Last December's US spot Bitcoin ETP saw nearly $1 billion in net outflows, which looks scary on the surface, but digging deeper into the reasons, it was mainly year-end tax selling (so-called tax-loss harvesting)—essentially investors doing year-end account cleanup, not indicating any fundamental problems with market demand. How do we verify this? The answer came immediately on the first trading day of the new year—nearly $500 million in net inflows reversed right away, which speaks volumes.
Looking at on-chain data, large coin holders (OG whales) showed no obvious signs of dumping. This confirms from another angle that the selling was more passive tax operations rather than major players fleeing.
More critically, the fundamentals are quietly shifting. Institutional-grade asset tokenization is starting to show substantive progress. The DTCC received a no-action letter from the SEC and officially launched tokenization services—what does this mean? Simply put, Wall Street-level clearing and settlement systems are beginning to embrace on-chain assets. Meanwhile, JP Morgan Asset Management launched a tokenized money market fund on Ethereum, marking an important step for traditional financial institutions on public chains.
The regulatory side is also accelerating. The US Senate plans to review the crypto market structure bill on January 15th, and at this pace, 2026 could see this actually pass into legislation. From year-end technical selling, to institutional-grade assets going on-chain, to regulatory framework refinement, the entire narrative chain is forming.
Recently, there's been an interesting phenomenon. Last December's US spot Bitcoin ETP saw nearly $1 billion in net outflows, which looks scary on the surface, but digging deeper into the reasons, it was mainly year-end tax selling (so-called tax-loss harvesting)—essentially investors doing year-end account cleanup, not indicating any fundamental problems with market demand. How do we verify this? The answer came immediately on the first trading day of the new year—nearly $500 million in net inflows reversed right away, which speaks volumes.
Looking at on-chain data, large coin holders (OG whales) showed no obvious signs of dumping. This confirms from another angle that the selling was more passive tax operations rather than major players fleeing.
More critically, the fundamentals are quietly shifting. Institutional-grade asset tokenization is starting to show substantive progress. The DTCC received a no-action letter from the SEC and officially launched tokenization services—what does this mean? Simply put, Wall Street-level clearing and settlement systems are beginning to embrace on-chain assets. Meanwhile, JP Morgan Asset Management launched a tokenized money market fund on Ethereum, marking an important step for traditional financial institutions on public chains.
The regulatory side is also accelerating. The US Senate plans to review the crypto market structure bill on January 15th, and at this pace, 2026 could see this actually pass into legislation. From year-end technical selling, to institutional-grade assets going on-chain, to regulatory framework refinement, the entire narrative chain is forming.