Bitcoin Updates: Institutional Funds Move: AI ETFs Gain Momentum Amid Growing Crypto Debt Issues

Bitget App

Trade smarter

Bitget

News

Markets

Bitcoin Updates: Institutional Funds Move: AI ETFs Gain Momentum Amid Growing Crypto Debt Issues

Bitget-RWA2025/11/22 19:26

By:Bitget-RWA

- Bitcoin and Solana face renewed selling pressure as digital asset treasury companies (DATCos) offload holdings amid $42.7B corporate debt inflows into crypto. - DATCos, underwater on $126K Bitcoin peak investments, approach parity in market-to-net-asset-value ratios, triggering 40% Solana treasury value declines since October. - Institutional capital shifts toward AI ETFs (e.g., Global X AI ETF) as firms prioritize AI infrastructure investments over crypto, linking performance to tech stock volatility. -

The cryptocurrency sector is currently contending with a series of obstacles as

Bitcoin

(BTC) and

Solana

(SOL) encounter renewed downward pressure, following a $42.7 billion surge in corporate debt entering digital assets,

as reported by Benzinga

. Bitcoin, which recently dropped to $90,500—wiping out most of its gains for 2025—has been impacted by limited liquidity and compelled selling from digital asset treasury companies (DATCos), whose holdings are now deeply in the red. These DATCos, having made substantial crypto investments during Bitcoin’s climb to $126,000 last October, are now being forced to liquidate assets as their market-to-net-asset-value (mNAV) ratios near one-to-one. This has triggered a “forced selling” scenario at a time when demand is weak, intensifying the downward slide. For instance,

Solana-focused treasury firms have seen their net asset value drop by 40%

to $2.1 billion since October, leading management to consider selling crypto holdings to buy back shares. This situation is a stark contrast to the earlier enthusiasm for “corporate crypto adoption,” which has now become a challenge as companies rush to shore up their financials.

Bitcoin Updates: Institutional Funds Move: AI ETFs Gain Momentum Amid Growing Crypto Debt Issues image 0

At the same time, growing institutional interest in artificial intelligence (AI) is shifting investment patterns,

with funds such as the Global X AI ETF and WisdomTree's AI & Innovation Fund drawing significant inflows

as corporations ramp up spending on enterprise AI solutions. These ETFs, which include major players like

Nvidia

and

Microsoft

, are positioning investors to benefit from both the infrastructure and application sides of AI expansion. Nevertheless, their returns are still closely linked to overall market conditions and the volatility of large-cap technology stocks. For those seeking higher returns, mid-cap-focused options such as

WTAI

present greater growth opportunities, though they also carry increased risks due to uncertain earnings.

The dynamic between AI-related investments and the crypto market reveals a larger trend: institutional investors are increasingly diversifying across technology and digital assets. While DATCos are facing liquidity issues, AI ETFs are benefiting from the shift toward practical, large-scale AI implementation, especially in automation and cloud services. This divergence highlights the challenges of navigating a market where enthusiasm for technological innovation meets the constraints of debt-heavy corporate balance sheets.

With Bitcoin hovering around $90,000 and Solana’s treasury companies reevaluating their approaches, the future direction will hinge on whether crypto demand can recover in a tightening financial climate. For now, investors are monitoring how DATCos handle their finances and whether the capital flowing into AI can counterbalance the ongoing selling pressure in crypto.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops

Lock your assets and earn 10%+ APR

Lock now!

- U.S. Coast Guard reversed a policy to reclassify hate symbols like swastikas and nooses from "potentially divisive" to prohibited, following backlash from lawmakers and advocacy groups over antisemitism risks. - The reversal came after a leaked draft proposal aligned with Trump-era Pentagon directives, which critics argued weakened harassment definitions and accountability for hate incidents. - Coast Guard reaffirmed strict prohibitions on divisive symbols, emphasizing severe punishment for violations, b

Bitget-RWA•2025/11/22 21:34

Coast Guard Strengthens Prohibition of Hate Symbols to Combat Antisemitism and Extremist Activity

Bitcoin Updates Today: MicroStrategy Faces a Bitcoin Conundrum: Should They Retain for Future Gains or Liquidate to Stay Afloat?

- MicroStrategy's stock hits 52-week low as Bitcoin dips below $88,000, testing its BTC treasury strategy's viability. - 650,000 BTC holdings now "underwater" at $74k average cost, limiting capital raises and straining liquidity instruments. - Preferred shares (STRD/STRK) fall 30-34% as market demands higher yields, while JPMorgan warns of $8.8B outflow risk from index exclusion. - CEO Saylor claims 80% BTC drop tolerance, but critics fear forced sales could trigger self-fulfilling price declines. - Weak c

Bitget-RWA•2025/11/22 21:34

Bitcoin Updates Today: MicroStrategy Faces a Bitcoin Conundrum: Should They Retain for Future Gains or Liquidate to Stay Afloat?

XRP News Today: XRP Faces $1.75 Test as Buyers Confront $15M Withdrawals with ETFs on the Horizon

- XRP faces critical $1.75 support zone amid $15.5M outflows and 50% decline from July highs. - TD Sequential buy signals and ETF launches (Nov 18) could trigger rebounds or stabilize price. - Key resistance at $2.150 threatens bearish trend if $1.75 support fails to hold. - Market volatility highlights ETFs' potential to shift institutional adoption and price dynamics.

Bitget-RWA•2025/11/22 21:34

Blockchain Sheds Light on Criminal Networks While Meme Coins Transform the Future of Cryptocurrency

- UK's NCA dismantled a £1B crypto money-laundering network linking Russian entities to drug trafficking and war funding, arresting 128 and seizing £25M in cash/crypto. - Blockchain analytics tools like Chainalysis are enabling law enforcement to track illicit crypto flows, challenging the anonymity of public blockchains in cross-border crime. - Meme coin Apeing (APEING) emerges as a 1000x contender through community-driven momentum, transparent whitelist access, and structured communication, contrasting t

Bitget-RWA•2025/11/22 21:16