Digital Asset Treasuries hauled in $2.6 billion in two weeks, led by $BTC and $ETH trusts, the strongest in more than seven weeks. Fed rate cuts and new accounting rules are pulling allocators back into crypto even as price uncertainty lingers.
Context in a Nutshell
Despite ongoing price volatility and broader market caution, Digital Asset Treasuries recorded over $2.6 billion in inflows over two weeks, the largest in more than seven weeks. This institutional capital surge was concentrated in Bitcoin and Ethereum treasuries, with Strategy making nearly $2 billion in Bitcoin purchases, underscoring a sustained institutional appetite for deep‑liquidity crypto assets even as sentiment softens.
What You Should Know
Digital Asset Treasuries (DATs) captured over $2.6 billion in inflows across a two‑week stretch following the Federal Reserve's rate cut, the highest in roughly seven weeks. The surge highlights institutional appetite for crypto exposure even amid market uncertainty.
Bitcoin and Ethereum DATs dominated the move, accounting for about $940 million to Bitcoin and $423 million to Ethereum, with smaller flows to niche products like Bittensor.
Major allocators played a significant role; for instance, Strategy (formerly MicroStrategy) acquired nearly $2 billion in BTC in two large buys in early and mid‑December.
Drivers cited include the December 10 Fed rate cut, which boosted liquidity and lowered leverage costs, and new FASB accounting rules that allow crypto gains to be booked as net income, making treasury allocations more attractive.
The flows suggest a "flight to quality" pattern, with institutional capital preferring deep‑liquidity assets such as BTC and ETH in uncertain environments.
Why Does This Matter?
These flows come from institutional treasurers and asset allocators who see strategic value in crypto as macro liquidity conditions shift. The combination of a Federal Reserve rate cut and new accounting rules that let firms book crypto gains as net income has made treasury allocations more attractive and defensible on balance sheets.
In uncertain markets, capital chases quality and liquidity, and Bitcoin and Ethereum are proving they still occupy that role for allocators with real money on the line.
