Crypto Market Update: Institutional Treasuries Sharply Scale Back Bitcoin Acquisitions
September 26, 2025 – 09:05 AM PST
The cryptocurrency landscape is witnessing notable shifts as institutional treasuries significantly reduce their Bitcoin purchases, impacting market dynamics amidst high speculative activity and evolving product offerings. Here’s a detailed update on key crypto market movements and developments as of Friday, September 26. —
Bitcoin and Ether Price Movements
Bitcoin (BTC) currently trades near the US$110,000 level, priced at approximately US$109,743 as of early Friday, down 1.2% in the past 24 hours. Throughout the day, BTC has fluctuated between a low of US$108,776 and a peak of US$111,694. Market sentiment is cautious, with traders on prediction platforms now assigning a 61% probability that Bitcoin will fall below US$100,000 before the end of 2025—an increase from last week’s 41% likelihood.
Market analysts note that Bitcoin is approaching a weekly cycle low about five weeks after reaching a peak. This behavior suggests short-term bearish control persists, especially after Bitcoin failed to surpass its all-time highs in mid-August. Historical comparisons draw parallels to September 2024, when BTC experienced an 11% correction before recovering in the following month.
Bitcoin’s dominance in the broader cryptocurrency market has slightly increased by 1.37% over the past week, now representing 56.83% of the market capitalization.
Ether (ETH), the second-largest cryptocurrency, is also experiencing downward pressure, currently priced at US$4,019.71 after dropping 1.1% in the last day. Ether’s price has breached a key support level under US$4,000, marking a nearly 20% decline over the past two weeks. Analysts warn that failure to regain upward momentum could send ETH closer to a critical support zone near US$2,750. The key resistance to reverse the downtrend is identified around US$4,841. Market concerns were heightened when Ether co-founder Jeffrey Wilcke transferred 1,500 ETH (valued at approximately US$6 million) to the Kraken exchange on September 25, adding to earlier large deposits and fueling speculation about selling pressure.
Altcoins and Market Trends
Several major altcoins also faced declines:
- Solana (SOL): Down 2.7% over 24 hours, trading around US$196.27.
- XRP: Fell 3.6% to approximately US$2.74. The altcoin market is witnessing increased activity surrounding new Exchange-Traded Funds (ETFs). The recent introduction of spot altcoin ETFs like the REX Osprey XRP ETF and REX Osprey DOGE ETF into US markets has sparked momentum, with firms now seeking to list products based on cryptocurrencies such as Solana and Stellar.
Institutional ETF Flows and Derivatives
Institutional demand for spot Bitcoin ETFs continues robustly, with BlackRock’s iShares Bitcoin Trust (NASDAQ:IBIT) leading inflows of US$128.9 million, pushing total assets under management (AUM) to about US$87.2 billion. Other ETFs also attracted significant investments, including Fidelity Advantage Bitcoin ETF (TSX:FBTC) at US$29.7 million and ARK 21Shares Bitcoin ETF (BATS:ARKB) at US$37.7 million in net inflows.
Combined, US Bitcoin ETFs hold close to US$150 billion in Bitcoin, accounting for about 1.33 to 1.35 million BTC—roughly 6 to 7% of Bitcoin’s circulating supply.
Derivatives markets remain highly leveraged. Bitcoin futures open interest is above US$220 billion, reaching historic highs in September, signaling heavy speculative positioning. This concentration of positions with clustered stop-loss orders near current prices poses a risk of massive liquidations in case of price breaches. Ether derivatives have also seen significant liquidations during the recent pullback, reflecting the volatile sentiment in derivative products. Perpetual funding rates for both Bitcoin and Ether hover near zero, indicating a balanced market outlook between buyers and sellers.
Institutional Treasury Buying Pulls Back Sharply
Data from CryptoQuant reveals a steep decline in cryptocurrency acquisitions by corporate treasuries: Bitcoin purchases dropped from 64,000 BTC in July to just 12,600 BTC in August, with September figures barely reaching 15,500 BTC. This 76% decrease since the early summer highs correlates with a nearly 6% dip in Bitcoin prices over the past week, alongside broader liquidations across digital assets.
Several treasury firms that once traded at a premium to their underlying Bitcoin holdings are now valued closer to the book value of their reserves, highlighting waning investor confidence. Additionally, regulatory investigations into irregular trading patterns and concerns over transactional transparency in private investment in public equity (PIPE) deals are adding pressure on these corporate participants.
BlackRock’s New Bitcoin ETF Filing
BlackRock has submitted regulatory filings for launching a new Bitcoin Premium Income ETF, designed to provide steady income through covered-call strategies on Bitcoin holdings. This move follows the enormous success of the firm’s iShares Bitcoin Trust, which now manages upwards of US$87 billion in assets.
Unlike the existing fund that tracks Bitcoin price exposure directly, the new ETF aims to appeal to investors seeking yield generation capabilities, albeit with potentially reduced exposure to Bitcoin’s price swings. Industry analysts view this as a strategic effort by BlackRock to double down on major cryptocurrencies—Bitcoin and Ethereum—while forgoing smaller, more volatile tokens.
The iShares Bitcoin Trust alone dominates about 60% of the US Bitcoin ETF market and has generated over US$218 million in annual revenue, surpassing some of the firm’s top equity funds.
Innovations in Bitcoin Yield Generation
Michael Egorov, founder of Curve Finance, has launched Yield Basis, a decentralized protocol crafted to offer Bitcoin holders meaningful on-chain yield opportunities without the risk of impermanent loss commonly associated with automated market maker (AMM) pools.
Traditional Bitcoin lending markets provide minimal returns, while AMMs expose users to losses when asset prices diverge. Yield Basis aims to solve these issues by redesigning liquidity pools with capped limits—initially set at US$1 million per pool—to moderate early user exposure. Backed by a US$5 million funding round earlier this year, Yield Basis integrates with the Legion and Kraken community platforms and plans to eventually expand its framework to Ethereum, commodities, and tokenized equities, potentially broadening decentralized finance (DeFi) access for risk-averse investors.
Upcoming Events and Regulatory Watch
Looking forward, several high-profile crypto events are set to influence market sentiment:
- Korea Blockchain Week is ongoing in Seoul until September 28, expected to feature major exchange announcements and regulatory developments.
- Token2049 Conference in London begins October 2, anticipated to highlight ETF advancements and custody solutions targeting institutional investors.
- The US Securities and Exchange Commission (SEC) is also expected to deliver updates on pending altcoin ETF applications, a move likely to shape future market trajectories.
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Authors: Giann Liguid and Meagen Seatter
Securities Disclosure: The authors hold no direct investment interest in any companies mentioned.
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This update is intended for informational purposes and does not constitute financial advice. Investors should conduct their own research before making investment decisions.