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Bitcoin’s momentum continues with an excellent first half of May. The price has once again crossed the $100,000 mark, a level it had lost several months ago. Last week, Bitcoin ETFs largely dominated institutional investments in crypto-related funds, according to a report published by CoinShares. These funds alone attracted $867 million out of a total net $882 million invested in the entire sector. This trend comes amid strong Bitcoin growth, with the price climbing more than 25% in a month.
According to James Butterfill, Head of Research at CoinShares, this sudden surge in price and capital inflows into Bitcoin is driven by a mix of factors: a global increase in the M2 money supply, growing concerns about stagflation in the United States, and the recognition of Bitcoin as a strategic reserve asset by certain U.S. states. He also noted that U.S.-listed Bitcoin ETFs have accumulated $62.9 billion in net inflows since their launch in January 2024, surpassing the previous peak set in February.
Ethereum experienced a dramatic surge of nearly 29%, reaching over $2,400 on Friday morning, following the deployment of its major upgrade called “Pectra.” This update, described by developers as the most ambitious since the 2022 transition to proof-of-stake, aims to optimize user experience, enhance scalability, and offer more flexibility for staking. Key changes include account abstraction, adjustments to data storage requirements, and relaxed validator rules. This rebound follows a challenging period for Ethereum, which had seen its price drop by more than 33% over the previous three months amid global economic tensions and a trade war initiated by Donald Trump. However, the recent signing of a trade agreement between Trump and British Prime Minister Keir Starmer was seen as a sign of easing tensions. This enabled Bitcoin to rise back above $100,000 and Ethereum to climb past the $2,000 mark, eventually reaching $2,400.
New York City Mayor Eric Adams announced the city’s first official cryptocurrency summit, scheduled for May 20. During a press conference, he reaffirmed his ambition to make New York “the crypto capital of the world,” positioning the city as a rival hub to Silicon Valley for blockchain technology and financial innovation. Adams highlighted the potential of this technology to improve financial inclusion, especially for communities traditionally excluded from banking systems. He recalled his personal commitment to the sector since taking office in 2022, when he converted his first three paychecks into Bitcoin and Ethereum. He claims that since then, crypto-focused startups have flourished in the city. Without naming them directly, Adams appears to be courting the powerful pro-crypto political action committees that influenced Donald Trump’s election, as he considers running as an independent in the next mayoral race. The upcoming event aims to bring together industry leaders, public officials, and innovators to foster collaboration between the private and public sectors. Adams advocates for a long-term strategy focused on sustainable adoption rather than temporary hype around memes or speculative tokens. Lastly, he emphasized the need for “smart” regulation — rules that protect investors without stifling innovation. He called on the State of New York to support the crypto-friendly environment that the city is cultivating. “This is the Empire State; we should be building empires — especially in crypto,” he concluded.
Coinbase shares jumped 8% in after-hours trading following the announcement of its upcoming inclusion in the S&P 500 index. This change, which takes effect on May 19, marks a symbolic milestone for the largest cryptocurrency exchange in the United States. By joining this major index, Coinbase will replace Discover Financial Services, which is set to be acquired by Capital One. Despite a 10% drop in revenue in the first quarter — mainly due to reduced trading activity — the company still posted a profit. This result is crucial, as the S&P 500 only includes companies that have been profitable over the most recent quarter and cumulatively across the last four. Listed on the Nasdaq since 2021, Coinbase continues to play a central role in the U.S. crypto ecosystem. In addition to crypto trading, it also safeguards digital assets for Bitcoin ETFs launched by giants like BlackRock and Fidelity. It also works with the U.S. Marshals Service to manage government-seized digital assets. On the same day as the announcement, Coinbase revealed it had reached a deal to acquire Deribit — a digital asset options platform — for $2.9 billion. This strategic acquisition aims to strengthen Coinbase’s presence in the expanding crypto derivatives market.
Strategy (formerly MicroStrategy), led by Michael Saylor, continues its aggressive Bitcoin accumulation strategy. Between May 5 and 11, the company purchased an additional 13,390 BTC for a total of $1.34 billion, according to a filing with the SEC. This latest acquisition brings its total holdings to 568,840 bitcoins, valued at nearly $59 billion. Since its strategic pivot in 2020, Strategy has become the world’s largest corporate holder of Bitcoin. Originally focused on data analytics software, the company has repositioned itself as a Bitcoin investment vehicle to allow shareholders to gain exposure to what Saylor considers a superior hedge against inflation. He developed this approach during the COVID-19 pandemic, convinced that Bitcoin provided better capital preservation than cash in an environment of aggressive monetary stimulus by the U.S. Federal Reserve. Since then, Strategy has consistently purchased large quantities of BTC, at an average acquisition cost of $69,287 per coin.
A new Bitcoin-focused company has been formed through a merger between Nakamoto Holdings, co-founded by David Bailey (also a crypto advisor to Donald Trump), and healthcare firm KindlyMD. Together, they are launching a Bitcoin treasury company — an entity designed to buy and hold BTC as a long-term strategic asset. To fund the initiative, the two companies raised $710 million, including $510 million in private equity and $200 million in convertible debt. This deal represents one of the largest public crypto transactions to date, with participation from over 200 investors, including Actai Ventures, Arrington Capital, and BSQ Capital Partners. The stated goal is ambitious: to build a global network of Bitcoin treasury firms to accelerate BTC adoption. According to Bailey, this could dramatically reshape the global financial landscape, with a future where every balance sheet — public or private — holds Bitcoin. This merger comes amid a wave of new Bitcoin-holding firms, following in the footsteps of Strategy. It also aligns with broader market trends, such as the upcoming launch of the company Twenty One — backed by heavyweights like Tether, Bitfinex, SoftBank, and Cantor Fitzgerald — which plans to start with more than 42,000 BTC in treasury. The announcement had an immediate impact on markets, with KindlyMD’s stock soaring over 300%.
Robinhood is strengthening its crypto presence in Canada with the acquisition of WonderFi, a Canadian crypto trading platform, in an all-cash deal valued at approximately US$179 million (CA$250 million). The offer represents a 71% premium to WonderFi’s 30-day volume-weighted average share price, highlighting the strategic importance of the transaction. WonderFi owns several well-established brands, including Bitbuy, Coinsquare, and SmartPay, and currently holds more than CA$2.1 billion in client assets. Through this acquisition, Robinhood aims to accelerate the development of its crypto offerings in Canada. WonderFi’s leadership team will remain in place and operate under the Robinhood Crypto banner, with plans to expand services for Canadian users. WonderFi employees will also join Robinhood’s Canadian workforce, which already includes over 140 staff at its Toronto offices opened in 2023. The transaction still requires approval from shareholders at a special meeting scheduled for July, as well as from regulators. The closing is expected in the second half of 2025. The deal comes just months after a major incident involving WonderFi’s CEO, Dean Skurka, who was kidnapped in November and released following the payment of a $1 million ransom.
According to a report from Galaxy Digital, Bitcoin’s volatility has recently fallen below that of the S&P 500 and the Nasdaq — a rare occurrence for an asset known for extreme price swings. Over a 10-day trading period, Bitcoin’s realized volatility stood at 43.86, compared to 47.29 for the S&P 500 and 51.26 for the Nasdaq 100. This decline comes in a context of economic uncertainty, particularly following Donald Trump’s surprise April 2 announcement of new tariffs, which rattled traditional markets. Despite this instability, Bitcoin gained 11% over the same period, while major stock indices remained flat or declined slightly. This performance reinforces Bitcoin’s role as an alternative safe-haven asset amid geopolitical and fiscal concerns. Galaxy also noted that while Bitcoin still has moderate correlations with stock indexes (0.62 with the S&P and 0.64 with the Nasdaq), its beta has decreased — suggesting that investors are beginning to treat it less as a speculative asset and more as a strategic long-term investment. Galaxy concluded that with 95% of its total supply already mined and growing interest from institutions, funds, and even governments, Bitcoin is solidifying its role as a mature digital store of value. Jay Jacobs, Head of Thematic and Active ETFs at BlackRock, added that geopolitical fragmentation is leading many countries to reduce their reliance on dollar-based reserves in favor of assets like gold — and now increasingly, Bitcoin.
Bitcoin has reached a new milestone in the current bull cycle, with its “illiquid supply” hitting a record 14 million BTC. According to data from Glassnode, this means that an increasing portion of Bitcoin is being held by entities that are not selling, preferring instead to hold long-term. In the past 30 days, this category has grown by 180,000 BTC — the highest pace since December 2022, when the last bear market was ending. “Illiquid” entities are defined by a low ratio of BTC outflows relative to inflows — in other words, they are accumulating without spending. This trend underscores growing conviction in Bitcoin’s long-term value, and contributes to a tightening of available supply, which may support continued upward momentum.
At the same time, large Bitcoin holders — or whales — continue to accumulate aggressively. According to analytics firm Santiment, addresses holding between 10 and 10,000 BTC added more than 83,000 BTC to their wallets over the past month. In contrast, smaller holders — those with less than 0.1 BTC — collectively sold around 400 BTC during the same period. This divergence in investor behavior highlights a structural shift in the crypto ecosystem. Institutional interest, driven by spot Bitcoin ETFs and corporate treasuries like Strategy’s, is increasingly positioning Bitcoin as a strategic investment. While smaller investors may be shaken by volatility, larger players are doubling down on Bitcoin’s long-term potential.
The presented information is as of May 13th, 2025, unless otherwise indicated and is provided for information purposes only. The information comes from sources that we believe are reliable, but not guaranteed. This statement does not provide financial, legal or tax advice. Rivemont Investments are not responsible for any errors or omissions in the information or for any loss or damage suffered.
