The crypto market welcomes a dual turning point of policy and capital

Recently, the crypto market has welcomed two major catalysts: Washington's legislative push during "Cryptocurrency Week" and the intensive outbreak of institutional layouts in Ethereum. These two forces together constitute the "policy inflection point" and "capital inflection point" for the crypto industry in the second half of 2025. The deep logic of this round of crypto cycle is shifting from Bitcoin to Ethereum, stablecoins, and on-chain financial infrastructure. The clarification of US policies and the institutional expansion of Ethereum signify that the crypto industry is entering a structurally positive phase. The focus of market allocation should gradually transition from "price games" to "rule + infrastructure institutional dividend capture."

U.S. "Crypto Week": Three Major Bills Send Positive Signals

In July 2025, the U.S. Congress officially launched "Crypto Currency Week," marking the first time in U.S. history that a legislative agenda systematically promotes comprehensive governance of encryption assets. Against the backdrop of dramatic changes in the global digital finance landscape and the ongoing challenges to traditional regulatory models, the introduction of this series of bills is not only a response to market risks but also a signal of the U.S. attempt to gain a dominant position in the next round of competition for financial infrastructure.

The most significant milestone is the "GENIUS Act," which establishes a comprehensive regulatory framework for stablecoins, covering key elements such as custody requirements, audit disclosures, asset reserves, and settlement processes. This means that the stablecoin system, which has long operated outside traditional financial regulation and relied on "market trust," will be included for the first time within the sovereign legal structure of the United States.

Another key bill, the "CLARITY Act," focuses on the classification of crypto assets as securities or commodities. Its core intention is to clarify "which crypto assets are considered securities and which are not," and to define the regulatory boundaries between the SEC and CFTC. If this bill is successfully passed, it will end the long-standing uncertainty in the "regulatory gray area" of crypto assets, providing predictable legal grounds for project parties, exchanges, and fund managers, greatly unleashing the vitality of compliant innovation.

The "Anti-CBDC Surveillance State Act" prohibits the Federal Reserve from issuing central bank digital currencies, preventing the government from establishing real-time monitoring capabilities over individual financial activities through the digital dollar framework. This legislation reflects the U.S. Congress's emphasis on financial privacy and market freedom, signaling that the United States does not intend to dominate digital financial transformation through state monopoly, but rather chooses to support a crypto market ecosystem that is driven by the market, technology-neutral, and open and interconnected.

These bills will have several direct impacts: the barriers that have prevented institutional investors from entering on a large scale due to compliance risk concerns will gradually be lifted; the role of stablecoins as "on-chain dollars" will be confirmed by policy; compliant exchanges and custodial banks will gain policy endorsement, reshaping the trust structure of the global crypto market.

ETH Launches the Peak of Institutional Arms Race

Recently, a new round of "capital arms race" surrounding Ethereum is quietly unfolding. From Wall Street financial giants continuously increasing their positions through ETFs, to more and more publicly listed companies incorporating ETH into their balance sheets, Ethereum is undergoing a profound restructuring of its market structure.

Since the official launch of the Ethereum spot ETF in July 2024, it has accumulated a net inflow of $5.76 billion, accounting for nearly 4% of its market capitalization. Multiple ETH ETF products recorded monthly net inflows exceeding $1 billion, with traditional financial players such as Bitwise, ARK, and BlackRock significantly increasing their holdings.

At the same time, several listed companies, including SharpLink Gaming, Siebert Financial, Bit Digital, and BitMine, have successively announced the inclusion of ETH in their balance sheets, marking a narrative turning point for ETH from a "speculative asset" to a "strategic reserve asset." It is worth noting that SharpLink currently holds over 280,000 ETH, exceeding the Ethereum Foundation's current 242,500 ETH, making it the largest single institutional holder of ETH in the world.

The far-reaching impact of this trend is not only reflected in price levels but also in the potential restructuring of governance, discourse, and ecological dominance of the Ethereum network itself. ETH is undergoing a comprehensive shift in its capital structure: transitioning from a retail-driven open market to an institutionalized market structure driven by ETFs, listed companies, and institutional nodes.

Market Strategy Outlook

As Bitcoin enters a high platform period, market attention is gradually shifting from Bitcoin to other growth-oriented encryption assets. The logic of ETH's catch-up is forming, and a revaluation from "lost leader" to "value pit" is underway. High-quality application chains such as Solana, TON, and Tanssi are also迎来结构性机会.

Overall Strategy Recommendations:

1. BTC configuration reserved, not the main focus.
2. ETH as the core allocation asset for rotation
3. Focus on high to medium quality public chains and modular protocols
4. Focus on early layout targets in DePIN, RWA, AI chains, and ZK directions.

The current market has transitioned from a single asset-driven phase to a structural rotation phase. The main upward wave of BTC has temporarily paused, while the rotation of ETH and high-quality new public chains will become the key driving force of the second half of the market. Strategically, we should abandon the inertia of "chasing high leaders" and shift towards a mid-term trend layout of "valuation rebalancing + narrative diffusion."

With the clarification of the regulatory environment and the accelerated arms race of strategic reserves of core assets such as Ethereum, the market is gradually entering a new cycle dominated by institutions. The synergistic effect of this regulatory clarity and the revival of mainstream asset values is prompting the crypto market to gradually break free from the previous "bull-bear cycle trap", evolving towards a more stable and sustainable institutional cycle. Investors should seize the institutional dividends and growth opportunities of core assets, actively position themselves in Ethereum and quality application chains, and embrace a healthier and more sustainable new era of encryption.