DigitalX Monthly Crypto Update

Market Commentary

Geopolitical tensions in the Middle East significantly affected investor sentiment in June. However, at the end of the month, digital assets experienced a rebound following an Israel-Iran ceasefire, which helped stabilise markets. Bitcoin traded at US$107,292 (A$163,717) on 30 June, just 4% below its all-time high of $111,970 set on 23 May 2025. 

In the US, regulatory developments continued to evolve in a direction favourable to the digital asset sector. The Senate passed the  GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins Act), setting clear guardrails for the industry. It mandates full reserve backing, monthly audits, and robust anti-money laundering compliance. The bill also provides a formal framework for private companies to issue digital currencies, subject to the approval of the federal government. Adding to the positive regulatory shift, the SEC formally withdrew several proposed rules initially introduced under the leadership of former SEC Chair Gary Gensler, which aimed to restrict crypto-related activities. These withdrawn proposals included a proposal seeking to broaden the definition of an “exchange” to bring decentralised finance (DeFi) platforms under the regulation of national securities exchanges, another that aimed to expand the current custody rule, requiring investment advisors to keep crypto with “qualified custodians” and several proposals mandating stronger cybersecurity risk management and ESG requirements for investment firms. These actions by the SEC signal a more pragmatic and potentially less restrictive approach to cryptocurrency regulation moving forward.

Another significant advancement in the U.S. regulatory landscape occurred in June in the ETF space. Following its official letter on 29 May 2025, clarifying its stance on staking, the SEC requested that potential Solana ETF issuers file an amended S-1. On 27 June, the SEC confirmed that it had “no further comments” on the amended application from REX Shares and Osprey Funds, effectively paving the way for the first Solana staking ETF to begin trading in early July. This milestone is likely to facilitate greater institutional access to Solana and further legitimise staking within regulated investment frameworks.

June witnessed a significant acceleration in the integration of digital assets into traditional finance. The US Federal Housing Finance Agency (FHFA) directed home mortgage purchasers Fannie Mae and Freddie Mac to consider how to account for cryptocurrencies as assets in their risk assessments for certain home loans. The FHFA’s decision to allow crypto assets in Fannie Mae and Freddie Mac’s mortgage loan risk assessments is a significant step for digital finance. It affirms that cryptocurrencies, particularly when held on regulated platforms, can form a legitimate component of a borrower’s financial profile. This development enhances financial inclusion for a new generation of investors, many of whom hold a significant portion of their wealth in digital assets like Bitcoin. Importantly, the FHFA has emphasised that only crypto held on US-regulated, centralised exchanges will be recognised. This validates the role of regulated investment vehicles like Bitcoin ETFs, which provide a compliant, transparent and secure way to gain exposure to the asset class. 

Institutions continue to adopt blockchain technology at an increasing rate. The Coinbase  State of Crypto Q2 2025 report revealed that 60% of Fortune 500 companies are now actively developing blockchain or distributed ledger initiatives, a sharp increase from 47% a year earlier. 

Corporate treasury adoption of digital assets gained significant momentum in June, with several major firms expanding their Bitcoin holdings and strategic allocations. Leading the charge, Strategy acquired an additional 17,075 BTC during the month, increasing its total Bitcoin holdings from 580,250 BTC to 597,325 BTC. Japanese firm Metaplanet also made a substantial move, purchasing 1,234 BTC, bringing its total holdings to 12,345 BTC and becoming the 5th largest corporate Bitcoin holder. Metaplanet also approved a US$5 billion allocation to its U.S. subsidiary to further strengthen its global Bitcoin strategy. Adding to this trend, GameStop, which had already acquired 4,710 BTC in Q1, announced its plans to raise $1.75 billion, capital that is widely expected to be used for additional digital asset purchases.

At the state level, Texas became the first U.S. state to establish a stand-alone, publicly-funded Bitcoin reserve, with Governor Greg Abbott signing Senate Bill 21 into law on 20 June. The Bitcoin reserve is held outside the formal state treasury system but remains under the oversight of the Texas Comptroller of Public Accounts. Texas joins Arizona and New Hampshire as one of the three states with formal Bitcoin reserves in place, reflecting a growing shift in policy-level engagement with digital assets. 

DigitalX remains strategically positioned across both Bitcoin and high-conviction Layer 1 assets such as Solana. This aligns with broader institutional trends that favour diversified crypto exposure and yield-generating opportunities through staking. With regulatory clarity improving and digital infrastructure maturing, we anticipate continued momentum for staking revenue, broader ecosystem adoption, and increased institutional participation.