HTX Ventures: Crypto Market Enters New Policy-Driven Era, Legalization and Dollarization as Key Themes
Singapore, Singapore, May 7th, 2025, Chainwire
The cryptocurrency industry is undergoing a significant structural transformation amidst ongoing global macroeconomic shifts. HTX Ventures, the global investment arm of HTX, recently released its report, “Industry Insights: Crypto Challenges and Opportunities Amid Macro Noise”, offering a detailed analysis of the key trends and opportunities shaping the current crypto market cycle.
Bitcoin is increasingly demonstrating a stronger correlation with risk assets, moving beyond its traditional “digital gold” narrative. The supportive stance of the Trump administration towards the cryptocurrency sector has elevated its status, positioning it as a “satellite asset” benefiting from dollar liquidity. A fundamental shift in market participant composition has occurred, transitioning from retail dominance to institutional prevalence, accelerating the integration of cryptocurrency assets into mainstream finance.
Unlike previous cycles driven by internal innovation, the current phase is primarily driven by the legalization and increasing dollarization of the cryptocurrency space. The industry has evolved into a government-backed technological frontier, actively promoted by U.S. policy. While dollarization fuels market expansion, it also introduces vulnerabilities, as Bitcoin’s price action has shown increasing correlation with macroeconomic liquidity and risk assets, despite its earlier safe-haven characteristics.
Institutional investors now exert significant influence over Bitcoin’s price dynamics. Since the approval of Bitcoin spot ETFs, open interest in CME futures has surged, consistently exceeding $10 billion. Institutions are actively engaging in arbitrage between spot ETFs and futures, often with high leverage, effectively transforming Bitcoin into a leveraged proxy for the Nasdaq. Consequently, Bitcoin tends to outperform tech stocks during bullish liquidity cycles but experiences more pronounced losses during periods of tightening liquidity.
The United States has taken major steps toward regulatory clarity for cryptocurrencies. The FIT21 Act defines jurisdictional boundaries for digital assets, shifting oversight of many decentralized tokens to the CFTC while establishing a 3-5 year “safe harbor” period to facilitate compliance for new projects. Additionally, the reversal of SAB 121 has eliminated custody restrictions, paving the way for traditional banks such as JPMorgan Chase and Citigroup to enter the crypto custody market. Industry projections suggest assets under management in this sector could surpass $500 billion by Q2 2025.
A significant regulatory development includes the appointment of cryptocurrency advocate Paul S. Atkins as SEC Chairman. Under his leadership, the SEC is working to revise the Howey Test—potentially reducing the number of tokens classified as securities while expanding ETF eligibility. These reforms are creating new growth opportunities for the crypto market.
The crypto sector is witnessing substantial capital inflows, with industry leaders like Kraken and Fireblocks advancing toward IPOs at projected valuations of $20 billion and $9 billion, respectively. Meanwhile, major Wall Street investment banks have formed specialized crypto divisions, and sovereign wealth funds are increasing their exposure to Bitcoin indirectly through investments in key technology firms.
The U.S. government is evaluating a federal Bitcoin reserve initiative. The proposed plan involves acquiring up to 200,000 BTC annually over five years to build a decentralized, secure storage network—positioning Bitcoin as a strategic national reserve asset. Though funding mechanisms are still under discussion, the consideration of such a plan highlights Bitcoin’s growing role in national financial strategy.
Momentum is also building around stablecoin legislation. In early 2025, President Trump signed an executive order supporting the development of regulated, dollar-pegged stablecoins while explicitly banning research and development of central bank digital currencies (CBDCs)—a move intended to protect market autonomy and personal privacy. This dual approach is rapidly bridging the gap between crypto and traditional finance, creating a clearer regulatory pathway for stablecoin adoption.
The cryptocurrency industry is playing an increasingly significant role in the global macroeconomic landscape. Policy support, dollarization trends, and institutional participation form the three pillars of the current cycle. Looking ahead, the performance of crypto assets will become increasingly interconnected with global economic shifts, geopolitical developments, and monetary policy decisions—presenting distinct cyclical characteristics and emerging investment opportunities. Simultaneously, continued policy easing is expected to foster a resurgence of native blockchain innovation, injecting renewed vitality into the broader crypto landscape.
Amid this pivotal period of transformation, HTX Ventures remains committed to closely monitoring macroeconomic developments and identifying promising opportunities. It strongly supports the compliant and innovative growth of the crypto sector, aiming to help build a more open, transparent, and sustainable digital asset ecosystem.
About HTX Ventures
HTX Ventures, the global investment division of HTX, integrates investment, incubation, and research to identify the best and brightest teams worldwide. With more than a decade-long history as an industry pioneer, HTX Ventures excels at identifying cutting-edge technologies and emerging business models within the sector. To foster growth within the blockchain ecosystem, we provide comprehensive support to projects, including financing, resources, and strategic advice.
HTX Ventures currently backs over 300 projects spanning multiple blockchain sectors, with select high-quality initiatives already trading on the HTX exchange. Furthermore, as one of the most active FOF (Fund of Funds) funds, HTX Ventures invests in 30 top global funds and collaborates with leading blockchain funds such as Polychain, Dragonfly, Bankless, Gitcoin, Figment, Nomad, Animoca, and Hack VC to jointly build a blockchain ecosystem. For partnership inquiries or additional information, users can contact the team at VC@htx-inc.com. To learn more, users can visit the official website at www.htx.com.
