Digital assets had another great year in 2024, led by strength in Bitcoin and ETF inflows, catalyzed further by the new administration. However, as we enter more volatility in February 2025, the prospect of higher prices now appears to be in question. Bitcoin hovers around 22% below its all-time high, but other major digital assets are significantly lower. Ethereum, the second largest cryptocurrency by market cap, is nearly 56% below its all-time high, and Solana, the sixth largest and likely next to be seen in an ETF wrapper sits even further below highs. Recent volatility will provide a real-time test to the digital asset ETFs and the impact on the market.
Despite the drawdowns, there are a number of analysts and market strategists still very bullish on the cryptocurrency space. After all, despite more than a 100% gain the past two years in a row, Bitcoin saw corrections of 20-30% multiple times throughout 2023 and 2024. Those would be considered major declines in the stock market but are a feature, of digital assets.
Crypto ETF Filing
The latest crypto ETF development following the election has been a surge in applications for ETFs beyond Bitcoin and Ethereum. These products include leverage, options, and tracking digital assets ranging from established (XRP, Solana, Cardano) to meme coins that have only recently been launched with near zero utility (Melania, BONK).
While there will be always risk with invesmtents, these new risks comes with an increased need for proper vetting and due diligence of these products.
*My artciles are my own thoughts from experience and should be taken as information only, and not a recomendation to buy these assets. Please do your own due diligence.
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