Ethereum remains stable, with ETF flows flat & DeFi activity declining, reflecting cautious sentiment but steady market positioning.
According to Grayscale X thread, the U.S. government has officially established a Strategic Bitcoin Reserve as of March 7, 2025. This reserve, funded by seized Bitcoin, signals a significant policy shift towards digital assets. The U.S. Treasury Department will manage the reserve, with restrictions on selling except in specific legal cases. Consequently, this move reinforces Bitcoin’s legitimacy as a reserve asset.
Currently, the US government is sitting on approximately $18 billion worth of digital assets, of which $17.6 billion is in Bitcoin alone. Of that, nearly $7-8 billion can be invested in the Strategic Bitcoin Reserve. This removes supply risk from the market and places Bitcoin into a strategic asset class. Also, it demarcates Bitcoin from altcoins, making its position as a long-term store of value stronger.
Market reactions have been mixed. Initially, Bitcoin’s price experienced a slight dip. However, it quickly rebounded, showing resilience to policy changes. Investors perceive the establishment of this reserve as a bullish signal. It aligns Bitcoin with traditional reserve assets like gold and oil. The White House emphasized the strategic advantage of holding Bitcoin early, reinforcing the U.S. stance on digital assets.
Additionally, the U.S. has created a Digital Asset Stockpile for other seized cryptocurrencies. This further indicates broader government acceptance of crypto beyond Bitcoin. With these reserves, the U.S. now holds one of the world’s largest Bitcoin treasuries.
Grayscale’s Ethereum ETF (ETHE) received zero million dollars in flows on March 8, 2025, according to Farside Investors. Ethereum traded at $3,450, which was a 1.2% increase from the prior day’s $3,410. Institutional flows excluded, retail traders appear to be supporting market action. A little lower level of engagement was shown by the trading volume, which decreased from 13.2 million ETH to 12.5 million ETH.
The 0.5% gain in the ETH/BTC trading pair makes Ethereum more stable. Additionally, the overall total value locked (TVL) of DeFi protocols based on Ethereum decreased from $56 billion to $55 billion. Because there was less DeFi activity, gas prices also decreased from 22 Gwei to 20 Gwei. These shifts suggest cautious sentiment among traders while Ethereum maintains steady market positioning.
