Monthly Newsletter March

The past month has been marked by considerable turbulence, with significant fluctuations in the stock market and even greater volatility in the crypto market. In February, Bitcoin dropped by approximately 17%, while Ethereum fell by around 32%. The first half of March has shown continued volatility, with Bitcoin down just under 1% and Ethereum by approximately 15%.

The prevailing market uncertainty stems primarily from concerns about potential new tariffs and trade conflicts. These events tend to lead investors to pull back from so-called risk-on assets, which crypto assets are still largely considered to be. However, it should be noted that Bitcoin is increasingly being seen as a risk-off asset, regarded as a safe haven during uncertain times, particularly over longer time horizons.

Despite the current market turmoil, it is essential to remind ourselves that nothing fundamental has changed for the crypto market; in fact, the market has strengthened further in the form of increased institutional and state level adoption. For example, the Swedish fintech company Klarna has announced plans to integrate crypto into its operations. Additionally, the U.S. Securities and Exchange Commission (SEC) has recently closed its lawsuit against Coinbase, a clear indication that the U.S. administration is now taking steps to become more welcoming to crypto assets than before.

Trump has also acknowledged his plans for a new crypto reserve that will include Bitcoin, Ethereum, Solana, XRP, and Cardano. In the U.S., President Trump has confirmed the establishment of a strategic crypto reserve, specifying that it will contain the same crypto assets. These are undoubtedly exciting developments that are currently being overshadowed by the extensive turbulence in the global market.

Senator Cynthia Lummis has reintroduced a previous bill supporting Trump’s executive order on a strategic crypto reserve. The proposal includes studies on budget-neutral methods to accumulate more Bitcoins, which could potentially involve re-evaluating the U.S. gold reserves or using savings from Elon Musk's "Doge-department," as well as other cuts from defense or Social Security.

Beyond the U.S., we also see that other countries, such as Switzerland, are exploring the possibility of establishing strategic Bitcoin reserves. Despite the current short-term uncertainties, our assessment is that the foundation for crypto assets is stronger than ever, with an accelerating adoption rate and growing institutional interest. We look forward to a continued exciting year ahead.

Donald Trump has announced the creation of a U.S. Strategic Crypto Reserve

Donald Trump has recently unveiled a plan to establish a strategic crypto reserve in the USA, a move that marks a significant shift in his stance on crypto assets.

The strategic reserve, which Trump published information about on March 2, 2025, aims to integrate leading crypto assets such as Bitcoin, Ethereum, Solana, XRP, and Cardano into the U.S. financial system. The purpose is to position the USA as a leader in financial innovation and to strengthen the country's role in the global economy.

This plan is part of a broader strategy where the Trump administration views crypto assets as a means to manage the national debt, which now amounts to nearly $36 trillion.

The idea is that a substantial crypto reserve could act as a safety buffer against inflation and economic uncertainty. This reflects how other countries, like El Salvador, have begun to integrate Bitcoin into their economic strategies.

New U.S. legislation, the BITCOIN Act, aims to position the USA at the forefront

Senator Cynthia Lummis has recently introduced new legislation called the BITCOIN Act (Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide).

This legislation aims to formalize President Trump's vision of establishing a Strategic Bitcoin Reserve in the USA. This action strengthens the country's economic foundation for future generations.

This law not only marks Bitcoin as a significant technological opportunity but also as a national necessity to continue enhancing America's financial leadership into the 21st century.

By converting the president's visionary executive actions into enduring laws, this aims to leverage the full potential of digital innovation to manage national debts while maintaining the USA's competitiveness in the global economy.

Read Cynthia's post here: https://x.com/SenLummis/status/1899449083628036177

Trump's New Import Tariffs Spark Volatility

On February 1, 2025, U.S. President Donald Trump announced plans to impose 25% tariffs on imports from Canada and Mexico, citing the measures as a means to counter illegal immigration and drug smuggling. Additionally, he intended to introduce a 10% tariff on imports from China.

The announcement caused unrest in global financial markets, including the crypto market. Bitcoin, which was trading around $105,000 before the announcement, fell by approximately 7% to $92,000 and is now trading around $83,000 in mid-March. Other crypto assets, such as Ethereum and XRP, also experienced significant declines.

Following negotiations with Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum, Trump agreed to pause the tariffs against these countries for 30 days to allow further discussions on border security and measures against drug smuggling.

It is not yet determined what level these tariffs will be set at, but it is not only the crypto market that is being shaken by this, but the entire global financial market as well.

Franklin Templeton Applies for XRP ETF in the US

Franklin Templeton, a renowned player in asset management, has officially submitted a preliminary application to the U.S. Securities and Exchange Commission (SEC) to launch an exchange-traded fund (ETF) based on the crypto asset XRP.

This application marks an exciting advancement in crypto investments, as Franklin aims to provide the public with the opportunity to invest in XRP in a traditional and regulated manner.

The ETF aims to mirror the spot price of XRP, minus management fees, with assets securely stored through Coinbase Custody and traded on the Cboe BZX Exchange.

The application is preliminary, and the SEC has a review period of up to 240 days. This means that a final approval or rejection can be expected by the end of 2025.

With this strategic move, Franklin Templeton joins other players such as Bitwise and 21Shares in the race to introduce an XRP-based ETF in the US.

SEC's Lawsuit Against Coinbase Dropped

The decision by the U.S. Securities and Exchange Commission (SEC) to drop its lawsuit against Coinbase is a landmark development for the crypto industry. 

This resolution might reduce regulatory uncertainty and could encourage other financial institutions to embrace crypto assets.

The dismissal suggests a potential shift towards a more supportive regulatory environment in the U.S., which could accelerate the integration of crypto assets into the mainstream financial system.

New weights for Virtune Crypto Top 10 Index ETP in March:

Bitcoin: 40.00%
Ethereum: 31.29%
XRP: 14.52%
Solana: 8.05%
Cardano: 2.62%
Chainlink: 1.08%
Avalanche: 0.99%
Litecoin: 0.94%
Uniswap: 0.51%

Virtune Crypto Top 10 Index ETP was rebalanced on the 28th of February 2025.

New weights for Virtune Crypto Altcoin Index ETP in March:

Cardano: 14.29%
Litecoin: 14.29%
Solana: 14.29%
Uniswap: 14.29%
XRP: 14.29%
Avalanche: 14.29%
Chainlink: 14.29%

Virtune Crypto Altcoin Index ETP was rebalanced on the 28th of February 2025.

Performance of each crypto asset in February

Litecoin: -0.23%
Bitcoin: -17.5%
XRP: -29.3%
Ethereum: -32.2%
Cardano: -32.7%
Avalanche: -35%
Solana: -36%
Uniswap: -36.2%
Chainlink: -41%    

Cryptocurrency investments are associated with high risk. Virtune does not provide investment advice. Investments are made at your own risk. Securities may increase or decrease in value, and there is no guarantee that you will recover your invested capital. Please read the prospectus, KID, terms at www.virtune.com.