Bitcoin begins the $100,000 era…Ethereum faces structural limitations

Ethereum. Photo = Reuters” style=”width:580px;”/>

Bitcoin begins the $100,000 era…Ethereum faces structural limitations

Enlarge imageView of Bitcoin and Ethereum. Photo = Reuters
Two distinct narratives are unfolding in the global cryptocurrency market.

According to Axios, an American online media outlet, on the 25th (local time), Bitcoin soared 132% since the beginning of the year and hit an all-time high of $99,645, but Ethereum showed a clear slump, rising only 48%. Although Bitcoin has been fluctuating recently, the market still has a predominant positive view on Bitcoin.

◇ Bitcoin’s establishment in the institutional system and political good news

Bitcoin’s rapid rise is the result of its entry into the institutional system triggered by the approval of ETF. The total assets managed by 12 spot Bitcoin ETFs exceeded $100 billion, equivalent to 5.4% of the total market capitalization. In particular, BlackRock’s IBIT and Grayscale’s GBTC have net assets of $45.4 billion and $20.6 billion, respectively, securing the trust of institutional investors. The daily trading volume of these ETFs exceeds $5 billion, and market liquidity is stably secured.

In addition, the upward momentum is further strengthened with Trump’s return to power. Trump pledged to ‘send cryptocurrency to the moon’ and even hinted at the possibility of adopting Bitcoin as a strategic reserve asset. In particular, market expectations are rising as Brian Brooks and Paul Atkins, who are friendly to the cryptocurrency industry, are mentioned as strong candidates ahead of the SEC head replacement.

◇ Ethereum’s challenges and structural limitations

On the other hand, Ethereum was hindered by the structural limitations of ETFs. Currently, the Ethereum ETF does not provide staking profits, making it less attractive as an investment. Staking is a type of ‘interest income’ program provided by the Ethereum network. When a person who holds Ethereum deposits their coins into the network, they receive additional Ethereum as a reward in return for contributing to the operation of the network. The current staking rate of return is around 4-5% per year.

In fact, the total assets of the Ethereum ETF are less than $10 billion, and it has recently recorded continuous fund outflows. This is in contrast to the fact that Ethereum rose together with Bitcoin in the last two cryptocurrency bull markets.

◇ Signaling the reorganization of the global financial order

The acceleration of Bitcoin’s entry into the system heralds a change in the global financial order. The Bitcoin law promoted by the Republican Party assumes the government as a direct buyer of the asset, which could act as a new variable in the dollar-centered international financial system. In particular, if Senator Cynthia Loomis’ influence expands, US cryptocurrency policy is expected to change more radically.

This goes beyond simple financial product approval. If the United States adopts Bitcoin as a strategic reserve asset, major countries such as China and the European Union (EU) will also inevitably change their policies in response, which will fundamentally change the global financial market. It could be an inflection point that can lead to reorganization.

◇ Outlook and implications after 2025

After Trump takes office, the cryptocurrency market is expected to enter a full-fledged institutionalization phase. Bitcoin is expected to benefit first, securing its status as a strategic reserve asset. Ethereum could face a new opportunity for a leap forward if the launch of an ETF including staking profits is approved.

Korean investors need to establish an investment strategy that comprehensively considers these institutional changes, the Bitcoin halving scheduled for April, and trends in the options market. In particular, close attention is required from the Korean government and investors, as changes in U.S. policy could become the standard for global cryptocurrency regulation.

Global Economics Reporter Park Jeong-han [email protected]

**Considering the evolving regulatory landscape ⁢surrounding cryptocurrencies, ‍what are the key challenges and opportunities facing governments and regulatory bodies as they strive to balance innovation with consumer protection and financial stability?**

## World Today News Interview:⁣ Bitcoin’s Ascent and Ethereum’s Crossroads

**Introduction:**

Welcome to World Today News.​ Today, we delve into the fascinating world of cryptocurrency, exploring the divergent‌ paths of Bitcoin and Ethereum in the wake of‌ a groundbreaking year. Joining us are two distinguished guests: **[Guest 1 Name & Expertise]** and **[Guest 2 Name & Expertise]**.

**Section 1: Bitcoin’s ​Institutional Embrace**

* **[Host]:** Bitcoin’s surge‍ towards the $100,000 mark has⁤ been remarkable. The article highlights the pivotal role of institutional adoption, particularly with the rise of Bitcoin ETFs. [Guest 1], from your⁤ perspective, what are the key drivers behind this institutional shift, and how sustainable do you believe this momentum ⁣will be?

* **[Host]:** We also see ​the article mentioning⁣ Trump’s return to power and its potential impact on the ⁢cryptocurrency landscape. ​ [Guest 2], how significant ​do you think political factors will be in shaping the​ future of Bitcoin, especially considering the emphasis on regulatory changes?

**Section 2: Ethereum’s Structural Challenges**

* **[Host]:** ⁢In contrast to Bitcoin’s upward trajectory, ⁤Ethereum appears to be facing headwinds. The article points to the limitations of current Ethereum ETFs, ⁣particularly the lack of staking rewards. [Guest 1], could you elaborate on the significance of staking in the Ethereum ecosystem, and​ how these structural issues might ⁢impact its future growth?

* **[Host]:** [Guest 2], looking ​beyond the ETF⁤ limitations, what other factors could contribute to Ethereum’s potential resurgence? Do you see ​any future scenarios where Ethereum could reclaim​ its position as a leading force in the ⁣crypto market?

**Section 3: ⁣ Reimagining the ​Global Financial Order?**

* **[Host]:** The article raises ​the‍ intriguing​ possibility‌ of the US adopting Bitcoin‍ as a strategic reserve asset, potentially leading to a seismic shift in​ the global financial order.⁣ [Guest 2], do you‌ believe this scenario is likely? What would be the potential ramifications for traditional⁢ fiat currencies and the existing international financial system?

* **[Host]:** [Guest 1], considering the potential for widespread adoption of⁢ cryptocurrencies, how do you envision the regulatory landscape evolving in the coming years? What are the key challenges and opportunities that lie‍ ahead for governments and regulatory bodies?

**Section 4: Looking Ahead: Investment Strategies and Implications**

*⁤ **[Host]:** For Korean investors specifically, the article emphasizes⁢ the‌ need for a nuanced investment strategy. [Guest 1], what key factors should Korean investors consider, particularly in light of⁤ the upcoming Bitcoin halving and the evolving options⁣ market?

* **[Host]:**‍ [Guest 2],⁣ as we look beyond 2025, what are your predictions for the future of Bitcoin​ and Ethereum?‌ Do you foresee further convergence or divergence in their trajectories?

**Conclusion:**

Thank you to both [Guest 1 Name] and [Guest 2 Name] for providing us with such insightful perspectives on this rapidly evolving landscape. The future of cryptocurrency remains uncertain, but one thing‌ is clear: it’s a story that will continue to captivate and challenge us all.

**[Optional]:**

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