Crypto Market Update: Institutional Treasuries Sharply Scale Back Bitcoin Acquisitions
September 26, 2025 – 09:05 AM PST
As Bitcoin and other major cryptocurrencies face a period of market adjustment, institutional involvement has notably shifted, with corporate crypto treasuries significantly reducing their Bitcoin purchases. This update explores recent crypto market trends, key price movements, and noteworthy developments in institutional demand and product innovation.
Bitcoin and Ether Market Overview
Bitcoin (BTC) was trading near the US$110,000 mark, priced at approximately US$109,743 as of early Friday. Over the past 24 hours, Bitcoin’s value dropped by 1.2%, fluctuating between a low of US$108,776 and a peak of US$111,694 within the day.
Trader sentiment has turned cautiously bearish in the short term. Prediction platforms now assign a 61% probability that Bitcoin will dip below the US$100,000 threshold before the end of 2025, a sharp increase from last week’s 41% chance. Market analyst Bob Loukas suggested that Bitcoin is nearing the low point of its weekly trading cycle five weeks after reaching a recent peak. Following Bitcoin’s failure to breach all-time highs in mid-August, bears have maintained control, mirroring a market pattern observed in September 2024 when Bitcoin dropped approximately 11% before recovering in October.
Bitcoin’s dominance in the overall cryptocurrency market modestly increased to 56.83%, a 1.37% rise over the past week.
Ether (ETH) faced stronger headwinds, trading at US$4,019.71 with a 1.1% decline in the past day, slipping below the key psychological support level of US$4,000. Ether’s price has been down nearly 20% over the last two weeks, prompting analyst warnings of a possible descent toward US$2,750 if momentum is not regained. Analyst Ali Martinez emphasized the importance of Ether reclaiming and holding the US$4,841 level to reverse the downtrend.
Market pressure on Ether was compounded following a significant transfer by co-founder Jeffrey Wilcke, who moved 1,500 ETH—worth roughly US$6 million—to the Kraken exchange on September 25, following earlier large deposits. This move has added to concerns around Ether’s liquidity and price stability.
Altcoins in Focus
Among altcoins, Solana (SOL) traded at US$196.27, down 2.7% in the last 24 hours, within a daily range between US$191.28 and US$203.50. XRP also experienced a decline, priced at US$2.74 and down 3.6% for the day, fluctuating between US$2.70 and US$2.86. These movements underline ongoing volatility in the broader crypto asset class amid mixed investor sentiment.
ETF Activity and Institutional Inflows
Despite price weak spots, spot Bitcoin exchange-traded funds (ETFs) continue to attract robust institutional demand. BlackRock’s iShares Bitcoin Trust (NASDAQ: IBIT) led the charge with a net inflow of US$128.9 million, bringing its assets under management (AUM) to about US$87.2 billion. Other major US Bitcoin ETFs also reported strong inflows: the Fidelity Advantage Bitcoin ETF (TSX: FBTC) added US$29.7 million and the ARK 21Shares Bitcoin ETF (BATS: ARKB) added US$37.7 million on the same day.
Collectively, US spot Bitcoin ETFs now hold roughly US$150 billion in Bitcoin—equivalent to about 1.33 million to 1.35 million BTC—representing approximately 6% to 7% of Bitcoin’s total market capitalization.
Momentum is also building for altcoin ETFs. The first US spot altcoin ETFs launched mid-September, including the REX Osprey XRP ETF (CBOE: XRPR) and the REX Osprey DOGE ETF (CBOE: DOJE). Several firms are competing to list additional altcoin ETFs, with Solana and Stellar among the favorites.
Institutional Treasuries Cut Back Bitcoin Purchases
One of the most significant shifts is the sharp reduction in Bitcoin acquisitions by corporate crypto treasuries. Once a stabilizing force in crypto markets, treasuries have pulled back dramatically. Data from CryptoQuant reveals purchases dropped from a peak of 64,000 BTC in July to just 12,600 BTC in August, with September numbers barely reaching 15,500 BTC—a 76% slump compared to early summer highs.
This decline in treasury buying has contributed to Bitcoin’s approximate 6% slide over the past week, amidst broader liquidations across cryptocurrencies. Some treasury firms that previously traded at a premium relative to their Bitcoin holdings now trade nearly on par with the value of their reserves, signaling wavering investor confidence.
Furthermore, regulatory scrutiny has increased regarding suspected irregular trading patterns in stocks tied to such entities, with questions arising about transparency in private investment in public equity (PIPE) deals and proper disclosure of acquisition prices.
BlackRock’s New Covered-Call Bitcoin ETF
In related news, BlackRock has filed to launch a Bitcoin Premium Income ETF designed for yield-focused investors. Unlike the straightforward exposure offered by their successful iShares Bitcoin Trust, this new ETF will employ covered-call options strategies to generate steady income by potentially offsetting price volatility.
The proposed ETF targets investors seeking Bitcoin-linked returns with reduced downside risk. Analysts interpret this move as part of BlackRock’s broader strategy to focus on dominant cryptocurrencies—Bitcoin and Ethereum—while allowing other issuers to target smaller tokens.
Currently, the iShares Bitcoin Trust alone commands about 60% of the US Bitcoin ETF market and generates over US$218 million in annual revenue, outpacing many of BlackRock’s core equity funds.
New DeFi Yield Platform Launches
Innovations in decentralized finance (DeFi) also emerged this week. Michael Egorov, founder of Curve Finance, launched Yield Basis, a decentralized protocol designed to provide Bitcoin holders with consistent on-chain yields while mitigating exposure to impermanent loss—a common risk in automated market maker (AMM) pools.
Yield Basis introduces a reworked AMM model and launched with capped liquidity pools, each limited to US$1 million to carefully manage early participation risk. The platform, which raised US$5 million earlier this year, is the first to launch within the joint Legion and Kraken community initiative. Egorov anticipates the model could expand to other assets such as Ethereum, commodities, or tokenized equities, potentially attracting more risk-averse investors to DeFi opportunities.
Upcoming Events and Regulatory Watch
Looking ahead, the crypto sector’s attention turns to several major events:
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Korea Blockchain Week in Seoul, ongoing through September 28, featuring exchange executives and policymakers expected to announce new partnerships and regulatory developments.
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Token2049 Conference in London, starting October 2, which is likely to unveil institutional investor strategies around ETFs and custody solutions.
Regulatory developments remain uncertain, with the US Securities and Exchange Commission anticipated to provide updates on pending altcoin ETF applications—a key factor that could influence market direction.
Conclusion
The crypto landscape is undergoing notable shifts in institutional behavior. While ETFs continue to see healthy inflows, especially in Bitcoin and emerging altcoin products, corporate treasuries are retreating from aggressive Bitcoin acquisition, signaling caution amid market volatility and regulatory scrutiny.
BlackRock’s push into a covered-call Bitcoin ETF and innovations like Yield Basis highlight ongoing efforts to diversify investment tools for crypto participants. As September ends and key conferences approach, market watchers remain attentive to regulatory guidance and sector developments that will shape crypto’s trajectory in the months ahead.
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