DigitalX Monthly Crypto Update

Market Commentary

The Executive Order on the Establishment of the Strategic Bitcoin Reserve and U.S. Digital Asset Stockpile, signed by President Donald Trump on March 6, 2025, marks a pivotal moment for Bitcoin, cementing its status as a legitimate asset. The order establishes a national reserve from seized BTC (~200,000 BTC) and directs the Secretary of the Treasury and the Secretary of Commerce to develop budget-neutral strategies for acquiring additional BTC. By creating a Strategic Bitcoin Reserve distinct from a broader Digital Asset Stockpile for other cryptocurrencies, the order elevated Bitcoin’s perceived value and uniqueness, distinguishing it from other alternative digital assets. This initiative positions Bitcoin as a strategic store of value comparable to gold, laying the foundation for broader institutional and governmental adoption.

Regulatory momentum for cryptocurrency in the U.S. remains strong. President Trump emphasised the importance of U.S. leadership in digital assets at the Digital Assets Summit on 20 March. The SEC initiated the first of of five Crypto Task Force roundtables on 21 March, focusing on the criteria that classify certain digital assets as securities. These discussions are expected to contribute to the development of a comprehensive crypto market structure bill, with further sessions scheduled through June 2025. Key topics will include custody, tokenisation, and decentralized finance (DeFi).

On the corporate Bitcoin adoption front, GameStop followed Strategy’s approach by announcing a US$1.3 billion convertible note offering to fund Bitcoin purchases. Meanwhile, Strategy (formerly known as MicroStrategy) launched a US$21 billion at-the-market (ATM) offering of its Series A preferred stock (STRK) to support ongoing Bitcoin acquisitions over an extended period. In March, Strategy purchased an additional 29,089 BTCs, increasing its holding to 528,185 BTCs, which accounts for more than 2% of the total Bitcoin outstanding.

Bitcoin adoption continues to advance steadily at both state and federal levels. In the US, bills to create Bitcoin reserves have been introduced in 32 states, with 25 states on the potential path to passing these laws. Arizona is currently the closest to finalising such legislation. At the federal level Republican Senator Cynthia Lummis reintroduced legislation proposing that the US purchase 1 million BTC over five years.

Internationally, BlackRock launched the iShares Bitcoin Exchange-Traded Product (ETP) in Europe, marking a significant milestone in the institutional adoption of Bitcoin within the region. The ETP commenced trading on 25 March across major European exchanges, including Xetra, Euronext Amsterdam, and Euronext Paris. Additionally, REX Shares introduced the BMAX Bitcoin Corporate Treasury Convertible Bond ETF, the first ETF of its kind. It offers investors exposure to convertible bonds issued by corporations holding Bitcoin in their treasuries. These developments underscore the growing role of institutional capital in the digital asset space and the continued evolution of Bitcoin-related investment products.

You can read/download the full report here: DIGITALX BITCOIN FUND MARCH 2025.

 

Disclaimer

DigitalX Asset Management Pty Ltd ACN 629 653 121 (DigitalX) is a corporate authorised representative (CAR) (CAR Number 1270748) of Boutique Capital Pty Ltd ACN 621 697 621 (Boutique Capital) AFSL 508011.

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