Firi Weekly: One 'Crypto Week' Later

Crypto Week Triumph:
- Trump signs GENIUS stablecoin act into law as House passes two additional major crypto bills, marking a watershed moment for U.S. digital asset regulation.
Ethereum ETFs Break Records:
- July's $3.28 billion inflows set to make it the best month ever for Ethereum ETFs, surpassing December 2024's $2.08 billion milestone. Meanwhile, BlackRock's ETF files for staking the underlying Ether.
Network Revenue Concerns:
- Ethereum transaction fees remain well below early-year highs despite price rally, signaling reduced network activity and less Ether burning.

Last Week’s Big Three

'Crypto Week' Delivers Historic Wins: The U.S. House of Representatives successfully concluded its "Crypto Week" by passing three bills: the GENIUS Act for stablecoin regulation, the CLARITY Act establishing a regulatory framework between the U.S. Securities and Exchange Commission (SEC, the federal agency that regulates financial markets) and the Commodity Futures Trading Commission (CFTC, which oversees derivatives markets), and the CBDC Anti-Surveillance State Act preventing the Federal Reserve (Fed, the U.S. central bank) from issuing retail digital currency.

After initial setbacks Tuesday and Wednesday, the House rallied Thursday to advance all three bills. While the CLARITY and Anti-CBDC Acts head to the Senate, the GENIUS Act—already Senate-approved—was signed into law by President Trump on Friday in a White House ceremony with industry leaders. The stablecoin legislation takes effect within 18 months — or 120 days after final regulations from the Treasury and Fed, whichever comes first — promising enhanced investor protection and greater adoption by traditional financial institutions.

Corporate Ethereum Holdings Shift: Last week, the Ethereum Foundation lost its crown as the largest corporate Ether holder to two U.S.-listed firms: SharpLink Gaming, with 280,600 Ether currently worth $1.07 billion, and Bitmine Immersion Tech, with 300,700 Ether. Both companies recently adopted Ethereum treasury strategies, contributing to ETH’s recent outperformance, as shown in our charts below.

BlackRock Seeks Staking Approval: BlackRock's iShares Ethereum ETF filed on Thursday to stake portions of its underlying Ether, following similar applications from Fidelity and Grayscale. This move — following July’s launch of the REX Shares Solana staking ETF, covered in our Firi Weekly report for week 26 — would enable ETF holders to earn yield on the fund’s Ethereum holdings.

If approved — which appears increasingly likely given BlackRock’s filing — the ETFs can become more attractive to investors.

Behind the Charts

Chart 1: Ethereum to Bitcoin Ratio (ETH/BTC), Year-to-Date

The crypto market delivered strong performance last week, with Bitcoin hitting a new all-time high of $122,900 Monday before consolidating. Ethereum then took center stage, climbing throughout the week to reach $3,830 today—its highest level since December 2024. The ETH/BTC ratio has surged in recent months, though Ethereum still trails Bitcoin year-to-date.

Chart 2: Monthly U.S. Bitcoin and Ethereum ETFs Net Flow

Thus far, ETF flows in July are breaking records. Bitcoin ETFs have attracted $5.77 billion in net inflows, while Ethereum ETFs have seen an unprecedented $3.28 billion so far—already surpassing December 2024's previous record of $2.08 billion with days remaining in the month. These inflows represent another catalyst behind Ethereum's recent strength.

Chart 3: Ethereum Transactional Revenue

Despite Ethereum’s price rally, network transaction fees remain well below early-2025 levels, indicating reduced onchain activity. Lower fees mean less Ether burning, effectively increasing supply relative to periods of higher network usage. This disconnect between price performance and network fundamentals is a concern, as sustained fee revenue drives long-term value through supply reduction — similar to how equity buybacks benefit shareholders.

A Number to Remember

$2.57 billion

Quite symbolic: As the GENIUS Act passed last week, the total stablecoin supply increased by $2.57 billion — from $258.5 billion to $261.1 billion — during the same period. Year-to-date, stablecoin supply has surged by $55.88 billion, reflecting the growing adoption of stablecoins.

On Our Radar

On our radar for the week ahead:

Tariff Deadline Approaches: Markets await news on President Trump's proposed 30% tariffs on the EU and Mexico by August 1st. With U.S.-EU tensions escalating and negotiations ongoing, any resolution—or lack thereof—could trigger significant market moves.
ECB Decision Thursday: The European Central Bank (ECB, the eurozone's central bank) announces its rate decision Thursday. Markets expect the key deposit rate to hold at 2%, but any surprise move would ripple through crypto markets—a hike viewed negatively, a cut positively.
ETF Momentum Sustainability: Record inflows may signal market euphoria and overleveraged positioning. A sudden reversal in ETF flows could trigger corrections if investors rush for exits.

Mads Eberhardt21/07/2025

Should not be considered financial advice. Crypto may involve high risk.