24/07/25 10:25:23

Cryptocurrencies: Milestone for the crypto industry

The Genius Act signed last week by US President Trump to regulate stablecoins is interpreted as a major boost for the industry. Cryptocurrencies rose sharply, not just Bitcoin. This was followed by a small correction.


24 July 2025. FRANKFURT (Börse Frankfurt). It's time to pause after last week's highs. Bitcoin rose to $123,020 last week and is still at $117,614 on Thursday morning. An important driver for the rise was US President Donald Trump's signing of the Genius Act last Friday. The law regulates the stablecoin market, which is estimated to be worth US$263 billion.

Other cryptocurrencies also gained ground: Ripple also reached a new record high of US$3.65. Ethereum, which had been weak for a long time, is approaching its all-time high of US$4,094 again at US$3,556. 

What are stablecoins?

Stablecoins are cryptocurrencies that are pegged to a specific value, such as the US dollar or gold. They are considered a bridge between cryptocurrencies and the traditional financial system. The most important stablecoins are Tether and USDC. According to the FAZ, stablecoins only account for 7.5 percent of the total crypto market in terms of market value. However, they accounted for 40 percent of trading volume.

Genius Act considered a breakthrough

“The Bitcoin high on July 14 was not another rally driven by private investors. Rather, this rise marked a profound revaluation by institutional investors,” explains Dovile Silenskyte of crypto ETN issuer WisdomTree. Two key developments triggered this: massive inflows into exchange-traded crypto products and the regulatory breakthrough in the US. “The Genius Act brings long-awaited regulatory clarity for stablecoins and effectively legitimizes them in the broader US financial system,” Silenskyte notes.

Jan Altmann from Bitwise shares a similar view: “The creation of a clear and stable stablecoin regulatory framework could become one of the most important regulatory developments in crypto history and key to the institutionalization and long-term demand for altcoins,” he says. This would have a positive effect on the performance of tokens from blockchains that are used as the technological basis for stablecoins and benefit from rising transaction volumes – especially Ethereum, Solana, Avalanche, and Polygon.

Jan Altmann

“Bitcoin as a decentralized, scarce asset”

The signing of the “One Big Beautiful Bill” law by US President Trump also played a role, Altmann adds. “As rising government debt is causing tension on the bond markets, not only in the US, Bitcoin could benefit as a decentralized, scarce asset with no counterparty or credit risk.”

In addition, more and more countries are turning to Bitcoin as a strategic reserve, as Adrian Fritz of 21Shares explains. “With its ‘Strategic Bitcoin Reserve,’ the US has not only sent a strong signal, but with over 200,000 Bitcoin, it now officially holds more Bitcoin than any other country.” Bhutan and El Salvador also have significant Bitcoin reserves. Japan and the Czech Republic are actively evaluating their own Bitcoin strategies, and Pakistan recently announced a government reserve initiative.

With the euphoria, crypto ETNs are also proving popular again. WisdomTree reports net inflows of $144 million into physically backed Bitcoin ETNs on European exchanges in June alone. Since the beginning of the year, the figure has reached $634 million. According to the issuer, nearly $5 billion flowed into Bitcoin ETNs globally in June, and $14 billion since the beginning of the year.

Adrian Fritz

Bitwise back in the lead.

The most traded crypto ETN on Xetra in June was Bitwise Physical Bitcoin (DE000A27Z304), followed by CoinShares Physical Bitcoin (GB00BLD4ZL17). The Bitcoin trackers from WisdomTree, VanEck, iShares, and 21Shares also recorded high sales. The ETN with the highest sales on another currency this time was the 21Shares XRP on Ripple. Also strong in terms of sales: Ethereum trackers from 21Shares and VanEck.

Criticism from the BIS

The Bank for International Settlements (BIS), considered the central bank of central banks, recently expressed criticism of stablecoins: stablecoins do not meet some of the requirements for a currency, the BIS explained in its 2025 annual report. It warned of risks related to financial crime and a threat to monetary sovereignty.

21Shares leads the way in Europe.

In terms of assets under management, 21Shares is now the clear number one in Europe with US$5.2 billion in assets across a total of 52 crypto ETNs, according to data from Bloomberg. CoinShares ranks second with USD 3.3 billion and 23 products, followed by Bitwise and WisdomTree (USD 2.3 billion each) and VanEck (USD 1.5 billion) with twelve, ten, and fourteen products, respectively.

By Anna-Maria Borse, 24 July, 2025, © Deutsche Börse AG

Anna-Maria Borse is a financial and business editor specializing in financial markets/stock exchanges and economic issues.

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