Daily Brief: August 2, 2025
Bitcoin Booms, Ethereum Inflows, Tether's Treasury Power
Bitcoin is playing a bigger role in corporate finance with companies like Strategy offering Bitcoin-backed products, appealing to retirees and cautious investors. This trend is boosting Bitcoin's adoption in traditional finance. Ethereum spot ETFs in the US saw massive inflows in July, signaling strong investor interest and potentially speeding up Ethereum's mainstream acceptance. Meanwhile, Tether's significant US Treasury holdings and strong financial performance underscore the growing influence and stability of stablecoins in global markets.
💼 Bitcoin's Role in Corporate Treasuries Expands
Michael Saylor's company, Strategy, is making headlines with its Bitcoin-backed preferred stock, STRC. This product is designed for retirees and cautious investors, offering a 9.5% yield, which is much higher than what traditional savings accounts provide. With Bitcoin serving as collateral, STRC aims to deliver both stability and high returns, even in unpredictable markets. Traded on NASDAQ, it is accessible and appealing to a wide range of investors.
In Q2 2025, Strategy reported a record net income of $10 billion, surpassing major banks like Goldman Sachs. This achievement is largely attributed to its significant Bitcoin holdings, which have yielded impressive returns. The firm plans to expand its Bitcoin-backed offerings, including a $4.2 billion STRC offering, to boost its market presence and ensure yield stability tied to Bitcoin's performance.
Corporate adoption of Bitcoin is increasing, with over 160 companies now holding Bitcoin on their balance sheets, up from about 60 last year. Michael Saylor believes that holding 3% to 7% of Bitcoin's total supply is a balanced strategy. Strategy is also developing various Bitcoin-backed financial products to cater to investors with different risk preferences, further integrating Bitcoin into traditional finance.
Why it matters: This trend shows Bitcoin's growing role in corporate finance, offering higher yields and attracting conservative investors, which could lead to broader adoption and integration into traditional financial systems.
📈 Ethereum Spot ETFs See Record Inflows
In July, Ethereum spot ETFs in the US experienced a historic inflow of $5.43 billion, marking a 369% increase from June. This surge extended a 20-day streak of daily inflows, bringing total cumulative net inflows to $9.64 billion. BlackRock’s iShares Ethereum Trust led the way with $9.74 billion in cumulative net inflows.
These inflows coincided with Ethereum's price rally to nearly $3,933, a 60% rise from June’s close. This price increase also positively impacted the NFT market, which recorded its second-highest monthly sales volume of $574 million in 2025, dominated by Ethereum-based collections.
BlackRock’s ETHA ETF captured 78% of the total inflows with $4.2 billion in new capital. Analysts suggest ETHA could become the fastest ETF to reach $10 billion in assets if Bitcoin ETFs weren't in the market. Ethereum spot ETFs now account for about 5% of Ethereum’s overall market capitalization.
Why it matters: The record inflows into Ethereum spot ETFs highlight growing investor confidence and could accelerate Ethereum's integration into mainstream investment portfolios.
📈 Tether's Treasury Triumph: $127B in US Holdings
Tether, the issuer of the USDT stablecoin, reported strong financial results for the second quarter of 2025. The company achieved a net profit of $4.9 billion, boosting total earnings to $5.7 billion for the first half of the year. This growth was fueled by a $20 billion increase in USDT issuance, raising the total supply to over $157 billion. Tether's financial stability is further supported by its $127 billion in US Treasury holdings.
Tether's US Treasury holdings have reached $127 billion, surpassing countries like South Korea. This makes Tether the 18th-largest holder of U.S. government debt worldwide. The company's Treasury portfolio includes $105.5 billion in direct exposure and $21.3 billion indirectly. This increase highlights Tether's growing influence in global debt markets and its role in providing stablecoin liquidity.
Beyond financial gains, Tether is reinvesting in strategic initiatives such as XXI Capital and the Rumble Wallet. These investments aim to expand digital finance infrastructure and promote financial inclusion. Tether's influence now spans over 150 countries, demonstrating its commitment to innovation and the adoption of digital dollars amid changing regulatory environments.
Why it matters: Tether's financial growth and strategic investments highlight the increasing maturity and importance of stablecoins in global finance, offering stability and trust in digital transactions.