Digital Asset Treasuries Draw In $2.6B Amid Crypto Market Uncertainty
Digital asset treasuries have experienced over $2.6 billion in institutional inflows in the past seven weeks amid ongoing crypto market uncertainty. Between December 8 and 14 alone, there were net inflows of $1.36 billion: $940 million into Bitcoin trusts, $423 million into Ethereum products, and minor amounts into Bittensor, with small outflows from Solana. Notably, Bitcoin treasury firm Strategy acquired nearly $2 billion in BTC in two purchases during December, bringing its holdings to about $58.26 billion, though its market net asset value (mNAV) has declined to 0.91, limiting its cash-raising capacity. Prediction market data suggests continued cautious sentiment regarding a significant mNAV recovery. To support dividends without selling BTC, Strategy launched a $1.44 billion cash reserve. The inflow trend continued the next week, fueled by the December 10 Federal Reserve rate cut and new accounting standards allowing companies to report crypto asset price appreciation as net income. Institutional inflows are primarily focused on Bitcoin and Ethereum, reflecting a “flight to quality,” while specific events, like the Bittensor halving, drive niche asset interest. Trust discounts have narrowed, and digital asset treasuries are positioned to compete with spot ETFs due to active yield capabilities and capital efficiency.

