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Institutions Expand Crypto Role Amid BTC Dip Below $100K

Institutional Adoption of Bitcoin Grows Amid Market Downturn with New Crypto Trading, Futures, IRS Rules, and Blockchain Bonds

  • Institutions have increased their control over 14% of Bitcoin’s total supply.
  • SoFi has begun offering crypto trading to retail clients in the U.S. as a nationally chartered bank.
  • Singapore Exchange will launch perpetual crypto futures trading for accredited investors starting Nov. 24.
  • New U.S. IRS rules enable crypto exchange-traded products (ETPs) to stake assets and share rewards while maintaining grantor trust tax status.
  • Hong Kong has issued $1.3 billion in blockchain bonds, attracting a range of institutional investors globally.

Markets are experiencing a downturn with Bitcoin falling below $100,000, yet institutional adoption of digital assets continues to grow. Institutions and public companies now hold 14% of Bitcoin’s 21 million supply, excluding mining firms, sovereign holdings like El salvador’s, and decentralized finance platforms.

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Digital financial services company SoFi has expanded its offerings by enabling crypto trading for retail U.S. clients. Its CEO, Anthony Noto, highlighted that SoFi is the only nationally chartered bank currently permitted to provide such services, enabled by policy updates from the U.S. Office of the Comptroller of the Currency (OCC) that allow banks to engage in crypto activities such as custody and stablecoin operations.

In Singapore, the derivatives arm of the Singapore Exchange (SGX) will launch perpetual futures trading on Nov. 24, aimed at accredited and expert investors. This move responds to growing institutional demand and will be regulated by the Monetary Authority of Singapore (MAS). Perpetual futures are crypto contracts without expiry dates that offer leverage opportunities.

The U.S. Internal Revenue Service (IRS) has introduced new rules authorizing crypto exchange-traded trusts to stake digital assets like Ethereum. These trusts can now earn staking rewards and retain their tax classification as grantor trusts, simplifying tax reporting. Treasury Secretary Scott Bessent stated this measure supports innovation and increases U.S. competitiveness in the crypto sector.

Meanwhile, the government of Hong Kong has launched its third tranche of blockchain bonds worth approximately $1.3 billion. These bonds, available in multiple currencies including U.S. dollars and euros, have attracted diverse institutional investors globally, including asset managers, banks, and insurance companies.

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Despite current market challenges, these developments signal growing institutional involvement through new financial products built on blockchain and cryptocurrency technologies.

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