Weekly Digest: June 2025 | Week 3

The past week was another critical chapter in the ongoing integration of digital assets into the global financial system. Bitcoin maintained stability just below its all-time highs, Ethereum saw renewed upward momentum, and Europe took further steps to regulate crypto markets under MiCA. This digest covers the major developments, their implications for the market, and what institutional players should watch going forward.

Highlights

• Bitcoin stabilized around $110,000 after briefly touching a new high of $111,800, supported by sustained ETF inflows and institutional buying.

• Ethereum rose 4–9%, trading near $2,630, driven by renewed DeFi activity and momentum from the recent Pectra upgrade.

• Gemini, Coinbase, and OKX are leading the MiCA licensing race in Europe via Malta and Luxembourg.

• The ECB reaffirmed its digital euro plans, while the EBA issued new guidance to streamline crypto licensing across MiCA and PSD2.

• Institutional integration deepens as crypto ramps, tokenized finance, and traditional banks begin converging.

Bitcoin Holds Strong Near Record Highs

Bitcoin (BTC) displayed remarkable stability during the week, trading in the $110,000–$110,500 range after briefly testing a new record high of approximately $111,800. This performance is a continuation of the asset's bullish trajectory over recent months, underpinned by surging institutional interest and massive capital inflows into spot Bitcoin ETFs.

Leading ETFs like BlackRock's IBIT and Fidelity's FBTC continued to attract sizable inflows, helping establish a support floor for BTC above the $100K threshold. Institutional demand is no longer driven by pure speculation, but by long-term allocation strategies, with sovereign wealth funds, pension managers, and insurance companies now treating Bitcoin as a viable macro hedge.

Market analysts highlight that Bitcoin’s consolidation around $110K reflects both strength and restraint. It signals a maturing market that is less reactive to minor news events and more influenced by broader macroeconomic conditions. With the Federal Reserve and Bank of Japan announcing key rate decisions this month, volatility may return, but BTC’s technical and fundamental posture remains robust.

Ethereum Gains Momentum, DeFi Signals Return of Yield Seeking

Ethereum (ETH) surged between 4% and 9% over the past week, trading consistently between $2,580 and $2,630. The rally follows renewed interest from institutional players and the continued tailwind of Ethereum’s recent Pectra upgrade, which significantly improved its staking yield mechanisms and interoperability with Layer 2 solutions.

The Ethereum ecosystem is regaining its foothold in decentralized finance (DeFi), with increased TVL (Total Value Locked) in protocols such as Aave, Lido, and Synthetix. Institutional investors are also re-evaluating ETH as a core holding due to:

• Yield-generating potential through staking

• Scalable infrastructure supporting L2 chains like Arbitrum and Optimism

• Enhanced composability post-upgrade

Despite its performance still lagging Bitcoin in terms of total returns YTD, Ethereum’s improved fundamentals and more stable regulatory outlook are attracting longer-term capital.

MiCA Licensing Race: Gemini, Coinbase, and OKX Take the Lead

In Europe, momentum continues to build around the Markets in Crypto-Assets Regulation (MiCA), as major players such as Gemini, Coinbase, and OKX race to secure EU-wide licenses through jurisdictions like Malta and Luxembourg. These countries, known for their fintech-friendly regulatory environments, have become gateways for exchanges aiming to service all 27 EU member states.

The MiCA framework, which officially came into effect in June 2024, aims to harmonize crypto regulation across the bloc. For crypto companies, the license promises clear legal recognition, operational stability, and the ability to offer services across the EU without separate country-by-country compliance.

However, concerns have surfaced around regulatory arbitrage. While some jurisdictions offer expedited licensing, others are lagging behind, leading to an uneven playing field and concerns over supervisory consistency. The European Commission and ESMA are expected to issue further clarifications in Q3 2025.

Key issues include:

• Divergence in national interpretations of MiCA

• Lack of harmonized enforcement on capital requirements and risk disclosures

• Fragmentation in KYC/AML implementation across CASPs

Still, most experts believe MiCA represents a net positive for the industry, particularly in legitimizing crypto finance and attracting institutional interest from traditional financial firms.

ECB and EBA Weigh In: Digital Euro and Regulatory Coordination

On the policy front, European Central Bank Vice-President Luis de Guindos provided important signals in a recent interview, stating that the ECB's future monetary policy would be data-dependent, particularly on inflation and trade metrics. However, what stood out most was the reaffirmed commitment to the development of a digital euro.

The ECB's digital euro initiative is entering its pilot phase, with a full rollout expected by 2027. The project is intended to complement existing fiat currencies and provide a counterweight to private stablecoin issuance. De Guindos noted that the digital euro could ensure monetary sovereignty and enhance payment efficiency across the EU.

Simultaneously, the European Banking Authority (EBA) released new guidance to ensure crypto service providers aren’t subject to duplicative licensing requirements under both the PSD2 (Payment Services Directive) and MiCA. This move is designed to prevent regulatory overlaps that could hamper innovation while still safeguarding consumers.

The EBA’s key recommendations include:

• Mutual recognition of regulatory approvals under PSD2 and MiCA

• Streamlined compliance paths for payment firms entering crypto

• Enhanced clarity on capital and solvency requirements for CASPs

Crypto and Traditional Finance: Lines Continue to Blur

One of the most subtle yet significant trends of the past week was the growing entanglement between traditional financial infrastructure and crypto systems. Fiat-to-crypto ramp providers, custodians, and even central clearing houses are now actively exploring blockchain-based integrations.

Several indicators point to deeper connectivity:

• Partnerships between payment service providers and stablecoin issuers

• Development of tokenized securities on Ethereum and Avalanche

• Regulatory sandboxes facilitating DeFi experimentation by licensed banks

As user behavior shifts and the digital-native economy matures, financial institutions that ignore the crypto integration curve risk becoming obsolete. This shift is not only technological but also generational—younger investors increasingly expect asset portability, transparency, and programmability.

Institutional Outlook and Market Implications

From an institutional perspective, the week’s developments point to a continued evolution of crypto from speculative asset class to strategic financial infrastructure.

What to Watch:

• ETF & Fund Activity: Continued inflows will be a key signal of institutional conviction. Watch for fund rebalancing and capital rotation into ETH and DeFi.

• Stablecoin Market: With MiCA and the GENIUS Act advancing, regulated stablecoin products could become mainstream, accelerating adoption in payments and remittances.

• DeFi Growth: Ethereum upgrades and a more stable regulatory backdrop could lead to a revival in on-chain lending, staking, and synthetic assets.

• Macro Risks: Global macroeconomic signals, particularly interest rate decisions and inflation data, remain a strong influence on short-term price action.

Final Thoughts

The week of June 10–17, 2025, reflects the increasingly complex and mature nature of the global crypto market. Institutional players now operate in a space where macroeconomics, technical infrastructure, and regulatory frameworks intersect. As Europe moves ahead with MiCA and the ECB doubles down on its digital euro plans, a regulated, interoperable, and innovation-friendly environment is taking shape.

Bitcoin's price stability and Ethereum's functional improvements provide a strong base for long-term capital inflow. Meanwhile, the regulatory momentum in both the U.S. and EU is creating the scaffolding for sustainable crypto integration into the global financial architecture.

At FinchTrade, we remain at the forefront of this transformation—offering institutional-grade liquidity, execution, and compliance infrastructure to help you thrive in an accelerating digital economy.

Stay tuned for more insights in next week’s digest.

***

Disclaimer

The information provided by FinchTrade is for informational purposes only and is intended exclusively for professional counterparties and institutional investors. It does not constitute an offer, solicitation, recommendation, or financial advice to engage in any transaction or investment.

Trading digital assets and derivatives involves significant risks, including price volatility and liquidity constraints. Past performance is not indicative of future results. Before engaging in cryptocurrency trading or any other financial instrument, investors should carefully assess their experience, financial position, investment objectives, and risk tolerance.

FinchTrade makes no representations or warranties regarding the accuracy, validity, or completeness of the information provided. Any views or estimates expressed reflect judgments as of the publication date and are subject to change without notice. FinchTrade is not responsible for any direct or consequential losses arising from the use of this material.

This material may not be copied, reproduced, or redistributed without FinchTrade’s prior written permission.