• Bitcoin trusts saw $940 million in inflows, with Strategy acquiring nearly $2 billion worth of BTC in two major purchases.

• Ethereum products attracted $423 million, reflecting a flight to quality in core digital assets.

• Overall, digital asset treasuries recorded $2.6 billion in inflows, boosted by the Fed’s December 10 rate cut and new FASB accounting standards, per DeFiLlama data.

Bitcoin and Ethereum DAT inflows surge to $2.6B post-Fed rate cut: Explore institutional trends, Strategy’s BTC buys, and future implications for crypto treasuries. Stay informed on market shifts.

What Are the Latest Bitcoin and Ethereum DAT Inflows?

Bitcoin and Ethereum DAT inflows have hit their strongest level in seven weeks, totaling over $2.6 billion in institutional capital during the two weeks after the Federal Reserve’s rate cut on December 10. This influx, tracked by DeFiLlama, includes significant net additions to Bitcoin and Ethereum trusts despite ongoing crypto market volatility. Key contributors include major acquisitions by Strategy, which purchased substantial BTC holdings valued at nearly $2 billion.

How Have Institutional Investments Shaped Recent Crypto Treasury Trends?

Between December 8 and 14, digital asset treasuries (DATs) experienced $1.36 billion in net inflows, with Bitcoin trusts leading at $940 million, followed by $423 million into Ethereum products and a modest $724,000 into Bittensor, offset by a small $2.55 million outflow from Solana offerings. Strategy, a prominent Bitcoin treasury firm, drove much of this momentum by acquiring 10,624 BTC on December 7 for $962.69 million and an additional 10,645 BTC on December 15 for $980.28 million, bringing its total holdings to 671,270 BTC valued at approximately $58.26 billion at current prices around $87,170 per BTC, according to CoinGecko.

Despite these accumulations, Strategy’s market net asset value (mNAV) has dipped to around 0.91, below the critical threshold of 1, which can complicate efforts to raise new capital for further digital asset purchases. This decline mirrors broader market caution, as evidenced by prediction markets like Myriad, where participants estimate only a 32% probability of mNAV rising to 1.5 over dropping to 0.85. To address liquidity needs, Strategy recently established a $1.44 billion cash reserve aimed at funding stockholder dividends without liquidating its Bitcoin positions.

Preliminary figures for December 15 to 21 indicate continued strength, with an additional $980 million flowing into Bitcoin and $313 million into Ethereum. Jimmy Xue, Co-Founder and Chief Operating Officer of quantitative yield protocol Axis, attributes this to the Federal Reserve’s rate cut, which enhanced liquidity and reduced borrowing costs for institutional players. He also points to the FASB accounting standard ASU 2023-08, effective this year, allowing firms to recognize crypto price gains as net income for the first time—a move optimizing fiscal year 2025 balance sheets and positioning digital assets as permanent marketable securities.

The concentration on Bitcoin and Ethereum underscores a “flight to quality” among institutions seeking deep liquidity for large-scale treasury operations, Xue explains. Bittensor’s minor inflows stem from its December 12 halving event at block 7,103,976 and the introduction of the Grayscale Bittensor Trust, highlighting targeted interest in high-conviction narratives over widespread diversification. These dynamics are narrowing the typical 10-15% discount on DAT valuations, enabling leveraged exposure to Bitcoin and Ethereum at effective discounts through cheaper capital.

Looking forward, Xue emphasizes DATs’ advantages over spot ETFs, including the ability to capture native staking yields—unavailable to most U.S. ETFs due to regulatory constraints—and leverage assets for mergers and acquisitions. This positions DATs as evolving “active yield” instruments, providing superior capital efficiency in a maturing institutional landscape.

Frequently Asked Questions

What Factors Drove the Recent Surge in Bitcoin and Ethereum DAT Inflows?

The December 10 Federal Reserve rate cut was a primary catalyst, injecting liquidity and lowering leverage costs for institutions, leading to over $2.6 billion in DAT inflows across two weeks. Combined with the FASB’s ASU 2023-08 standard enabling crypto gains as net income, this encouraged year-end balance sheet optimizations and a shift toward treating digital assets as core securities, as noted by Axis COO Jimmy Xue.

Why Are Institutions Focusing on Bitcoin and Ethereum Amid Market Uncertainty?

Institutions are prioritizing Bitcoin and Ethereum for their superior liquidity, which supports large treasury movements without significant price disruption. This flight to quality, as Axis COO Jimmy Xue describes it, avoids broader diversification risks, with niche assets like Bittensor gaining traction only on specific events such as halvings, ensuring stable, scalable investments in volatile conditions.

Key Takeaways

• Record Inflows Signal Confidence: Over $2.6 billion entered Bitcoin and Ethereum DATs in seven weeks, the highest streak recently, fueled by Fed policy and accounting changes.
• Strategy’s Strategic Buys: The firm’s $2 billion BTC acquisitions highlight institutional accumulation, though mNAV challenges persist at 0.91, prompting a $1.44 billion cash buffer for dividends.
• Future DAT Advantages: DATs outperform ETFs by offering staking yields and M&A flexibility, positioning them as efficient tools for institutional crypto exposure in 2026.

Conclusion

The surge in Bitcoin and Ethereum DAT inflows to over $2.6 billion post-Fed rate cut underscores a maturing institutional embrace of digital assets, driven by liquidity boosts and regulatory clarity under ASU 2023-08. As firms like Strategy bolster holdings amid cautious markets, this trend points to sustained “flight to quality” strategies. Investors should monitor evolving DAT structures for yield-enhancing opportunities, staying ahead in the dynamic crypto treasury landscape.