As the fervor around the approval and launch of 11 spot bitcoin ETFs settles down, and the bevy of legal actions that the SEC is embroiled in continue to drag along, analysts and investors alike have had plenty to digest since 2024 got underway. In addition to the market moving headlines the looming U.S. Presidential election is also influencing market sentiment and appetite around cryptoassets. With former President (and current candidate) Donald Trump weighing in on his opposition to central bank digital currencies (CBDCs), and other politicians also decrying the development of such instruments, the topic of crypto looks set to play a role in the coming campaigns. On the other hand, Congressional leaders continue to highlight the role that crypto can play in financing terrorism and criminal activities, although these totals remain dwarfed by the funding provided by the U.S. dollar.

Important as these headlines are for the long-term sustainability of both bitcoin and the cryptoasset marketplace at large, there are multiple other headlines and trends that investors should be watching. One important trend to note is that, even with policy uncertainty still the dominant policy in the United States, institutional buyers have acquired billions in bitcoin so far in 2024. To that end, politicians and soundbites can swell and ebb over time, but there are several bigger picture issues that are driving policy and business conversations in tangible ways, versus merely adding more fuel to social media debates.

In what many have indicated as an unexpected twist in the continuing saga surrounding the collapse and bankruptcy of FTX, a recent plan was announced indicating the entity plans to make investors whole. This is absolutely good news that should be celebrated for a number of reasons. First, investors who through no fault of their own who suffered losses due to the criminal activities of Bankman-Fried are set to be made whole. Secondly, it is also an indication that the bankruptcy process and associated laws are able to handle a complex, large, and multi-national crypto filing like FTX. Lastly, it should serve as an additional example to crypto investors and advocates that, despite the differences between cryptoassets and fiat asset assets, investors should treat crypto as the financial instruments they are.

It is important to note that these repayments will be made at the market value of cryptocurrencies at the time of FTX bankruptcy filing. For context, the price of bitcoin at that point was approximately $20,000 per token, significantly below current market levels. Regardless of this disappointment for some investors, the fact that FTX will be repaying investors is news worth celebrating.