Author: Stephanie Bedard-Chateauneuf

Crypto Funds Hit Record $188 Billion in Assets in 2025

Cryptocurrency investment products are booming. As institutional interest grows and spot ETFs gain traction, crypto funds have reached an all-time high of $188 billion in assets under management (AUM) as of July 2025. This milestone underscores the expanding legitimacy of digital assets and the increasing investor appetite for regulated exposure to cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH).

Over the past 12 weeks alone, crypto funds have seen $18 billion in cumulative inflows, with $1.04 billion entering just last week. The majority of that capital continues to flow into U.S.-based products, led by dominant names such as BlackRock’s (NYSE:BLK) iShares Bitcoin Trust ETF (IBIT), which now holds $73.6 billion in assets.

U.S. Crypto Funds Dominate Global Inflows

While crypto investment funds are gaining traction globally, the United States remains the epicenter. U.S.-listed funds attracted $1 billion in inflows last week, dwarfing contributions from Germany ($38.5 million) and Switzerland ($33.7 million). Analysts attribute this dominance to regulatory clarity and the strong performance of spot Bitcoin ETFs launched earlier this year.

Bitcoin ETFs continue to be the primary draw, pulling in $790 million in the last seven days. This sustained demand has helped push Bitcoin prices near record highs, with the flagship crypto currently trading at $108,650, up 16% year-to-date.

U.S.-listed spot Bitcoin ETFs have now seen $14.5 billion in net inflows for 2025, collectively managing nearly $128 billion in assets.

BlackRock and IBIT Lead the ETF Race

Leading the crypto ETF surge is BlackRock’s iShares Bitcoin Trust ETF (NASDAQ:IBIT), which has cemented its position as the largest spot Bitcoin ETF with $73.6 billion in AUM. The success of IBIT has not only validated institutional demand but also demonstrated that mainstream financial products can serve as powerful vehicles for crypto adoption.

Other fund managers such as Fidelity, Ark Invest, and VanEck have also launched competing ETFs, but none have approached BlackRock’s scale. Analysts suggest that BlackRock’s reputation and broad distribution channels give it a significant edge among institutional and retail investors alike.

Ethereum and Altcoin Funds Gaining Ground

While Bitcoin funds dominate, Ethereum is gaining traction in its own right. Ethereum investment products just recorded their 11th consecutive week of inflows, totaling $226 million last week alone. Investors are increasingly bullish on Ethereum’s use in smart contracts, DeFi, and tokenized real-world assets (RWAs).

The growing strength of Ethereum (ETH) funds has revived speculation that the U.S. Securities and Exchange Commission (SEC) could approve spot ETFs for other cryptocurrencies this year. Among the top candidates are Solana (SOL) and XRP (XRP), both of which have shown strong market activity and ecosystem growth in 2025.

According to CME futures market data, traders now assign a 95% probability that the SEC will greenlight a batch of new crypto ETFs by the end of the year. This could include not only single-asset ETFs, but also index-style products tracking multiple cryptos.

What This Means for Investors

The record $188 billion AUM milestone reflects a broader institutional embrace of digital assets. Crypto funds, particularly ETFs, offer investors regulated and familiar structures to gain crypto exposure without the complications of self-custody or navigating decentralized exchanges.

The continued success of Bitcoin and Ethereum products signals maturing investor sentiment. The next frontier could include multi-asset crypto index ETFs, staking-based funds, and tokenized yield-bearing products that integrate with traditional finance.

As more crypto funds gain approval and adoption, expect these products to become mainstays in diversified portfolios — not just as speculative assets, but as long-term components of modern investment strategies.

With regulatory momentum building and inflows surging, 2025 could be the year crypto funds finally go fully mainstream. As more institutional players enter the space and governments refine crypto regulations, investors should expect broader product innovation, enhanced transparency, and deeper integration between digital assets and traditional financial markets. For savvy investors, this expanding universe of crypto investment vehicles represents not just a passing trend, but a transformational shift in how capital is allocated in the digital age. As always, careful due diligence remains essential, but the opportunity for long-term growth in crypto funds has never been more compelling.

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5 Crypto Tax-Free Countries in 2025 Worth Considering

As governments around the world crack down on crypto earnings, a few crypto tax-free countries stand out as safe havens in 2025. Whether you’re a long-term Bitcoin investor, DeFi entrepreneur, or digital nomad seeking financial freedom, relocating to a no-crypto-tax jurisdiction can be a game changer. From Europe to the Caribbean, these five countries offer legal frameworks where crypto gains go untaxed — at least for now.

1. Cayman Islands: A Classic Offshore Crypto Haven

The Cayman Islands top the list of crypto tax-free countries thanks to their zero-tax policy across the board. There’s no personal income tax, no capital gains tax, and no corporate tax — which means cryptocurrency holdings, trading profits, and staking rewards go completely untaxed.

In April 2025, the Cayman Islands implemented a revamped Virtual Asset (Service Providers) Act that brought in licensing requirements for exchanges and custodians. The move enhanced regulatory clarity while maintaining investor-friendly tax treatment. The Cayman dollar’s peg to the U.S. dollar, combined with a stable economy and English-speaking environment, adds to its appeal for crypto investors.

2. United Arab Emirates: Zero Tax and Full Infrastructure

The United Arab Emirates (UAE) continues to position itself as a global crypto hub. With zero personal income tax and no capital gains tax on crypto, it’s one of the few crypto tax-free countries with state-of-the-art infrastructure and regulatory clarity.

The country boasts several dedicated regulatory bodies, including the Dubai Virtual Assets Regulatory Authority (VARA) and the Abu Dhabi Global Market (ADGM), ensuring transparency and legal certainty. For individuals and companies alike, the UAE offers residency programs, premium lifestyle options, and a safe environment for building crypto projects. As of 2025, over 25% of UAE residents reportedly own crypto — a sign of the country’s digital-forward mindset.

3. El Salvador: Bitcoin Tax Haven Goes Big

El Salvador shocked the world in 2021 by adopting Bitcoin as legal tender, and in 2025, it remains one of the most radical crypto tax-free countries on Earth. Through its Digital Assets Law, all Bitcoin transactions are exempt from income and capital gains tax.

The country is also developing “Bitcoin City,” a planned community powered by geothermal energy with no income, property, or capital gains tax. Tether (USDT), the largest stablecoin issuer, recently moved its headquarters to El Salvador, signaling confidence in the country’s crypto-friendly ecosystem. Whether you’re a miner, developer, or investor, El Salvador is actively welcoming digital asset pioneers.

4. Germany: Legal Tax Exemption for Long-Term Holders

While not an obvious pick, Germany offers a unique crypto tax break: any digital asset held for more than 12 months is entirely tax-free upon sale. This rule applies to Bitcoin, Ethereum, and other major coins.

For short-term trades under 1,000 euros annually, no tax is owed either. Germany’s approach treats long-held crypto like personal property rather than speculative investment, making it one of the most generous jurisdictions for disciplined holders. As a bonus, Germany’s BaFin regulator supports institutional crypto operations under the EU’s MiCA framework.

5. Portugal: Europe’s Sun-Soaked Crypto Shelter

Portugal has long been known as one of Europe’s crypto tax-free countries, especially for long-term investors. If you’ve held your crypto for more than one year, any gains are fully exempt from taxation.

Although 2025 brought in new rules taxing short-term gains at 28%, Portugal remains a top choice for those seeking crypto-friendly residency. Those who qualified for the Non-Habitual Resident (NHR) tax regime before its March 2025 sunset enjoy additional benefits, including tax exemptions on most foreign crypto income.

Portugal continues to attract crypto expats with its warm climate, low cost of living, and strong legal protections.

Should You Move for Crypto Tax Benefits?

If you’re looking to reduce your tax burden, these crypto tax-free countries offer rare legal opportunities in an increasingly regulated world. However, you’ll need to comply with local laws, prove residency, and monitor global tax treaties that may evolve. Seek expert tax advice before making a move.

As the global crypto landscape tightens, these destinations may not stay tax-free forever. But for now, they remain some of the best places in the world to live, invest, and thrive—tax-free.

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Crypto Investment Fraud Lands UK Scammers in Prison

In a landmark enforcement case, two men behind a major crypto investment fraud operation in the United Kingdom have been sentenced to prison for their role in scamming dozens of victims out of more than £1.5 million.

The scheme involved selling fake cryptocurrency investments through cold calls and boiler room tactics — a method increasingly used by fraudsters to target unsuspecting investors eager to participate in the fast-moving digital asset space.

FCA Cracks Down on Crypto Investment Fraud

The U.K.’s Financial Conduct Authority (FCA) charged Raymondip Bedi and Patrick Mavanga with conspiracy to defraud and money laundering. According to the FCA, the pair ran an operation that pitched non-existent cryptocurrency opportunities, falsely promising high returns.

Instead, they siphoned the victims’ money into personal accounts, with funds spent on luxury items and lifestyle expenses. The FCA’s investigation revealed that many victims were pressured into investing through aggressive sales tactics and false claims about the legitimacy of the assets.

At Southwark Crown Court, Bedi was sentenced to five years and four months, while Mavanga received a six-and-a-half-year prison term.

“Bedi and Mavanga ruthlessly defrauded dozens of innocent victims, and it is right that they have received these prison sentences,” said Steve Smart, joint executive director of enforcement and market oversight at the FCA. “Criminals need to be clear that there is a cost to committing crime and we will seek to make them pay.”

Victims Targeted Through Cold Calls

The scam operated similarly to a boiler room, a term used to describe high-pressure sales environments where victims are coerced into investing in worthless or fake assets.

Many of the individuals targeted were retail investors with little knowledge of crypto markets. Lured by the promise of rapid gains and professional-looking materials, they handed over thousands of pounds — only to realize later that the investments never existed.

Some victims had invested their life savings, and the emotional and financial toll has been devastating. According to victim impact statements submitted during sentencing, several people were left in debt, and others reported mental health issues stemming from the stress of the scam.

Authorities Seek Asset Recovery

In addition to prison time, the FCA has launched confiscation proceedings against Bedi and Mavanga under the Proceeds of Crime Act. The goal is to disgorge illicit profits and compensate victims where possible.

The case signals a more aggressive posture by U.K. regulators in cracking down on crypto investment fraud. In recent months, the FCA has expanded its enforcement efforts against unauthorized crypto operators and tightened rules around marketing digital assets.

Growing Scrutiny on Crypto Scams Globally

While this case took place in the U.K., the problem of crypto-related fraud is global in scope. In the U.S., the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) have both ramped up enforcement. In one recent case, the SEC charged a promoter for misleading investors about a tokenized project’s revenue potential.

Public companies that facilitate crypto transactions are also under scrutiny. Exchanges like Coinbase (NASDAQ:COIN) and Robinhood (NASDAQ:HOOD) have been urged by regulators to improve transparency and investor protections as scams continue to emerge in the space.

Final Thoughts: A Warning to Fraudsters

The U.K. court’s sentencing sends a clear message: crypto investment fraud will not go unpunished. As crypto markets evolve, law enforcement and regulators are ramping up their ability to detect and dismantle fraudulent schemes — and hold perpetrators accountable.

For retail investors, the case is a stark reminder to remain cautious. Promises of guaranteed returns and unsolicited investment offers are red flags. Investors should verify credentials and check if firms are authorized by the FCA or other regulatory bodies.

As Steve Smart of the FCA warned, “We will not hesitate to pursue those who exploit trust and target the vulnerable through crypto scams.”

The era of unregulated crypto promotion is coming to an end — and those who cross the line now risk not just financial penalties, but prison.

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Ethereum Institutional Adoption Hits New Heights in Cannes

Ethereum institutional adoption is moving from theory to reality, as the network proves its staying power in the evolving world of global finance. At the recent Ethereum Community Conference (EthCC) held in Cannes, France, industry leaders, developers, and institutional giants gathered to spotlight Ethereum’s growing role as the infrastructure layer of Wall Street and beyond.

The scene was more Cannes Film Festival than crypto conference — with the iconic red-carpeted Palais des Festivals hosting keynotes instead of movie premieres. But the real star of the show was Ethereum’s accelerating transformation from decentralized experiment to the foundation of institutional finance.

Robinhood’s Bold Crypto Pivot

One of the most striking moments of the week came when Robinhood (NASDAQ:HOOD) announced it would launch tokenized U.S. stocks and ETFs for European users via Arbitrum, a Layer 2 protocol built on Ethereum. This marks a historic milestone — making Robinhood the first publicly traded U.S. company to launch tokenized equities on a blockchain.

The move not only fueled a rally in Robinhood stock — pushing it over $100 for the first time — but also underlined the momentum of Ethereum institutional adoption. Rather than speculative hype, the conversation this year centered on Ethereum’s practical use as Wall Street’s new plumbing.

Ethereum as a Treasury Asset

Several public companies are already reshaping their financial strategies around Ethereum. BitMine Immersion Technologies (OTC:BMNR) saw a meteoric 1,200% gain after declaring ether as its primary treasury reserve. Similarly, Bit Digital (NASDAQ:BTBT), which shifted away from bitcoin mining to focus solely on Ethereum staking, climbed over 34% in a single week. SharpLink Gaming (NASDAQ:SBET) added more than $20 million worth of ether to its balance sheet, gaining over 28% in one day.

These bold moves signal a growing trend: Ethereum is not just a technology platform; it’s an emerging financial asset and strategic pillar for companies embracing the future of decentralized finance.

Institutions Bet on Ethereum’s Stability

While Ethereum’s price remains down over 20% year-to-date and trails Bitcoin in market cap, its utility and reliability are winning over institutional players. Ether ETFs have seen two consecutive months of net inflows, signaling renewed investor confidence. According to CoinGlass, these funds now manage around $11 billion in assets — a modest sum compared to $138 billion for Bitcoin ETFs, but growing steadily.

Paul Brody, Global Blockchain Leader at EY, emphasized Ethereum’s long-term appeal: “Institutions are plugging Ethereum into core financial systems not just because it’s fast or cheap, but because it offers dependable, programmable functionality.”

Vitalik Buterin, Ethereum’s co-founder, echoed the sentiment. In his keynote at EthCC, he said institutions consistently praise Ethereum’s reliability: “They value that it doesn’t go down.”

The Tokenized Future Is Being Built on Ethereum

The momentum behind Ethereum institutional adoption is not just theoretical. Deutsche Bank is developing a tokenization platform on zkSync, a Layer 2 network on Ethereum, to help manage tokenized funds and stablecoins. Meanwhile, Coinbase (NASDAQ:COIN) has filed with the SEC to offer trading of tokenized public equities, and Kraken is preparing to launch 24/7 tokenized stock trading in select international markets.

Stablecoins continue to dominate Ethereum’s financial rails. Circle’s USDC — the second-largest stablecoin — still processes about 65% of its volume on Ethereum. And BlackRock (NYSE:BLK) is pioneering institutional finance on Ethereum with its BUIDL fund, offering real-time redemptions in USDC.

The Road Ahead: Scaling Without Compromise

Despite competition from faster blockchains like Solana, Ethereum’s core values — neutrality, censorship resistance, and security — remain its greatest strengths. Tomasz Sta?czak of the Ethereum Foundation noted that institutions choose Ethereum because it guarantees fairness, reliability, and transparent execution.

The final takeaway from Cannes? Ethereum institutional adoption isn’t a trend — it’s a structural transformation. With developers, regulators, and corporations aligning behind Ethereum, the network is poised to power the financial systems of the future.

As Buterin put it: “We don’t just want to succeed. We want to be something that is worthy of succeeding.”

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BlackRock Bitcoin ETF: Catalyst for Crypto’s Mainstream Moment?

The BlackRock Bitcoin ETF (IBIT) has rapidly emerged as a transformative force in the financial world. Since its launch just 18 months ago, the iShares Bitcoin Trust (IBIT) has ballooned to over $75 billion in assets under management (AUM). This meteoric rise signals a powerful shift: crypto is no longer a fringe asset—it’s becoming a core component of institutional portfolios.

The BlackRock Bitcoin ETF now generates more annual fee revenue than its own flagship equity fund, iShares Core S&P 500 ETF (NYSEARCA:IVV), despite managing just a fraction of the assets. As the U.S. Securities and Exchange Commission (SEC) mulls the approval of BlackRock’s proposed in-kind redemption model, investors and analysts alike are watching closely. Could this change mark the final step toward full crypto mainstream adoption?

Demand Defies the Fee Structure

IBIT’s 0.25% management fee may seem high compared to traditional ETFs, but it hasn’t scared off investors. In fact, the BlackRock Bitcoin ETF has captured $52 billion of the $54 billion total inflows into U.S. spot Bitcoin ETFs to date. Its fee revenue—an estimated $187 million annually—has already outpaced the long-established IVV.

This speaks volumes: investors are willing to pay more for secure, regulated access to Bitcoin. BlackRock CEO Larry Fink’s characterization of Bitcoin as a “flight to quality” and a modern diversification asset only underscores this strategic repositioning.

In BlackRock’s latest Q2 report, analysts highlight Bitcoin’s growing role in diversifying portfolios in an age when traditional asset correlations—particularly between stocks and bonds—are breaking down. Bitcoin’s relatively low correlation with both equities and bonds makes it an increasingly attractive hedge in today’s volatile macro environment.

The SEC and the Future of In-Kind Redemptions

The SEC’s decision on whether to allow in-kind redemptions—where investors can exchange actual Bitcoin for ETF shares—is delayed until late 2025. The outcome could be a game-changer for the BlackRock Bitcoin ETF and the broader crypto investment landscape.

Currently, cash-based redemptions are standard for spot Bitcoin ETFs. But in-kind functionality could:

  • Lower operational costs for institutions

  • Enhance liquidity and scalability

  • Attract even more conservative capital, such as pension funds and endowments

Approval would send a strong message that regulators see Bitcoin not only as a viable asset but as a foundational building block for the next generation of investment products.

Portfolio Revolution: The 60/40 Model Under Pressure

For decades, the 60% equity/40% bond portfolio mix has ruled institutional investing. But IBIT’s performance—and Bitcoin’s inverse correlation with both major asset classes—suggests a shake-up is underway.

BlackRock’s internal data shows that adding 1–2% Bitcoin allocation to a 60/40 portfolio meaningfully boosts risk-adjusted returns. With the BlackRock Bitcoin ETF acting as the bridge between crypto and traditional finance, asset managers are starting to rethink allocation frameworks.

While IBIT’s $75 billion AUM is still small compared to BlackRock’s total ETF footprint, it represents a significant toehold—and a beachhead for crypto’s institutional conquest.

Key Takeaways for Investors

  • Watch the SEC: The late-2025 ruling on in-kind redemptions could unleash a wave of new inflows—or force a regulatory rethink.

  • Consider IBIT for Regulated Exposure: Investors wary of self-custody or unregulated exchanges can rely on the BlackRock Bitcoin ETF for credible crypto access.

  • Track Macro Trends: Economic slowdowns, central bank policy shifts, and geopolitical uncertainty all favor Bitcoin as a “crisis hedge,” reinforcing IBIT’s appeal.

Conclusion: Crypto’s Institutional Era Has Begun

The success of the BlackRock Bitcoin ETF marks a turning point in crypto’s evolution. It’s not just about price action anymore—it’s about legitimacy, scale, and integration into the financial mainstream. With the SEC’s decision looming and institutional interest accelerating, IBIT could become the blueprint for a new era in digital asset investing.

The message for investors is clear: crypto’s fringe days are over. Whether through fee-generating ETFs or core asset allocations, Bitcoin has entered the institutional conversation—and it’s here to stay.

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