Crypto Currents: BitGo comes public as BlackRock moves assets

As BitGo prepares for its NYSE debut and BlackRock manages significant outflows, the intersection of traditional finance and digital assets faces new pressure from rising inflation forecasts and regulatory shifts. Meanwhile, companies like Strategy and Strive are restructuring their balance sheets to deepen their bitcoin exposure. Stay up on the crypto news that matters with “Crypto Currents,” daily from The Fly. Join us at 2 PM ET for your essential briefing on the fast-moving world of cryptocurrency on FlyCast radio.

BITGO PRICES IPO ABOVE RANGE AHEAD OF NYSE DEBUT: Institutional demand for crypto custody is reaching the public markets as BitGo prepares to list on the New York Stock Exchange today. The firm priced its initial public offering at $18 per share, exceeding the marketed range of $15-$17. The offering is expected to raise approximately $212.8M and values the company at over $2B. This listing places BitGo (BTGO) alongside other major publicly traded crypto infrastructure players like Coinbase (COIN), marking a significant milestone for dedicated digital asset custodians.

BLACKROCK SHIFTS FUNDS AMID ETF OUTFLOWS: While new equity enters the market, spot ETFs are seeing capital exit. Data tracked by SoSoValue indicates that U.S. spot bitcoin (BTC-USD) and ether (ETH-USD) ETFs recorded nearly $1B in combined outflows on Wednesday. Amidst this activity, on-chain data collected by Arkham Intel reveals that wallets linked to BlackRock (BLK) moved over $430M in crypto to Coinbase Prime wallets. The transfers are likely related to redemption settlements rather than discretionary selling, despite the heavy net outflows from their IBIT and ETHA funds.

STRATEGY REDUCES CREDIT RISK AS EQUITY VALUE RISES: Corporate treasuries are also adjusting their capital structures to manage volatility. According to the company’s website, Strategy (MSTR) has seen its credit risk decline as the value of its perpetual preferred equity, now at $8.36B, has surpassed its outstanding convertible debt. This shift toward permanent capital is intended to reduce refinancing risks associated with its aggressive bitcoin accumulation strategy.

STRIVE PROPOSES STOCK SALE TO REPAY DEBT: Following a similar playbook, Strive (ASST) is leveraging the equity markets to clean up its balance sheet and acquire more digital assets. The asset manager plans to raise $150M through a preferred stock sale. The proceeds will be used to repay debt inherited from its acquisition of Semler Scientific and to purchase additional bitcoin, further cementing its position as a bitcoin-treasury company.

INFLATION RESURGENCE THREATENS DISINFLATION BETS: These corporate maneuvers come as macro headwinds potentially gather strength. New research cited by CoinDesk from Lazard and the Peterson Institute suggests U.S. inflation could climb above 4% this year. Such a resurgence would challenge the “disinflationary” thesis that has buoyed risk assets, potentially forcing the Federal Reserve to maintain higher interest rates longer than markets anticipate.

TOKENIZATION EXPANDS TO TREASURIES AND YIELD FUNDS: Despite macro uncertainty, the tokenization of real-world assets continues to gain traction. According to a regulatory filing, F/m Investments is seeking SEC approval to tokenize shares of its $6B Treasury ETF. Concurrently, Nomura (NMR) subsidiary Laser Digital has launched a tokenized bitcoin yield fund targeting 5% returns, according to a company statement. Even government entities are exploring the space, with Binance co-founder Changpeng Zhao stating he is in talks with a dozen governments regarding asset tokenization, in comments taken from the World Economic Forum.

JPMORGAN DOUBTS ETHEREUM ACTIVITY SPIKE LONGEVITY: In the blockchain infrastructure sector, JPMorgan (JPM) remains skeptical of the recent activity surge on the Ethereum network. CoinDesk reports that while the “Fusaka” upgrade lowered fees and boosted transactions, analysts at the bank warn that competition from layer-2 networks and rivals like solana (SOL-USD) poses a long-term risk to Ethereum’s dominance.

BANK LOBBY TARGETS STABLECOIN YIELD POLICIES: Regulatory friction between banks and crypto firms continues to heat up in Washington. The American Bankers Association is pushing Congress to ban yield on payment stablecoins. Bank of America (BAC) CEO Brian Moynihan has previously warned of deposit outflows if such digital assets are not strictly regulated, a sentiment echoed by new policy priorities from the banking lobby.

PRICE ACTION: As of time of writing, bitcoin was trading at $88,895.99, while ether was trading at $2,937.62, according to price data from TipRanks.