Weekly Update: 22nd of January

Hodl Team
22 January 2025
Welcome to our weekly update, where we provide insights into the latest developments in the digital assets market.

What happened between the 15th and 22nd of January?

  • Trump was officially inaugurated as the 47th President of the United States, however, digital assets prices fell as he failed to mention the market in his speech. Read more
  • Memecoin mania continued as Trump and his wife Melania launched their respective memecoins fueling further speculation in the market. Read more
  • The Solana ETFs may not be officially introduced until 2026, as their legal status remains uncertain, according to Bloomberg Intelligence. Read more
  • Digital asset exchange-traded products saw over $2.2 billion in inflows in the run-up to Trump’s inauguration. Read more

Donald Pump has returned to office

On January 20th, Donald Trump was inaugurated as the 47th President of the United States. Leading up to this event, the digital assets market experienced a wave of optimism, with most assets showing upward momentum. This enthusiasm stemmed from Trump's campaign, during which he positioned digital assets as a central focus, making ambitious promises such as establishing a Bitcoin strategic reserve and positioning the U.S. as “the crypto capital of the world.” 

As the transition of power unfolded, market participants eagerly anticipated signs of concrete action. However, many were left disappointed when neither the inaugural address nor the administration’s initial policy document mentioned digital assets. This absence of acknowledgment dampened sentiment, triggering a modest market retracement.

Trump and Melania fuel memecoin speculation

Over the past year, memecoins have gained immense popularity among digital asset traders, drawing significant public attention—both positive and negative—due to the persistent issue of scams. On the night of January 18th, the market witnessed a remarkable milestone: Donald Trump officially launched his memecoin, "Official Trump," under the ticker $TRUMP. The token debuted at $0,18 and skyrocketed to $75 within a day, achieving a market capitalization of $16 billion.

This unprecedented memecoin frenzy was quickly followed by the launch of a token associated with Trump’s wife, Melania. While less dramatic than $TRUMP, her token still reached an impressive $2 billion market capitalization. Market participants remain divided on whether these developments are a boon for the industry, bringing increased visibility and participation, or a detriment, as they risk attracting negative attention and scrutiny.

Solana ETF potentially delayed

According to Bloomberg Intelligence analyst James Seffart, the digital assets market may need to wait until 2026 for the introduction of a Solana spot ETF. The delay stems from ongoing legal disputes over Solana’s classification as a security. The SEC’s Division of Enforcement has labeled Solana a security, which prevents other divisions from considering it for a commodities ETF structure. Until these legal challenges and regulatory uncertainties are resolved, the SEC is unable to move forward with a decision, potentially pushing the deadline into 2026.

Capital continues to flow through exchange-traded products

As the Trump inauguration approached, digital asset-based exchange-traded products saw over $2.2 billion in inflows between January 13th and 17th, according to CoinShares. This surge is largely driven by investor anticipation of more pro-digital asset policies in the coming days, which could trigger a broader market rally. Of the $2.2 billion in net inflows, Bitcoin dominated with $1.9 billion, while Ethereum attracted $246 million. However, these inflows weren’t enough to offset earlier outflows, leaving Ethereum with a year-to-date net outflow of $28 million.

In other digital assets news

  • Attorneys of the US government have submitted a motion that the retrieved funds from the 2016 Bitfinex hack should return to exchange. 
  • U.S. states Oklahoma and Wyoming introduce strategic Bitcoin reserve bills. 

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