Recently there's been an interesting phenomenon. Last December's outflow of nearly $1 billion from US spot Bitcoin ETPs looked scary on the surface, but digging into the reasons, it was mainly year-end tax selling (so-called tax-loss harvesting). To put it plainly, investors were doing account cleanup at year-end, which doesn't signal a problem with market demand. How do you verify this? The very first trading day of the new year immediately showed the answer — nearly $500 million in net inflows reversed right away, which says a lot.

Looking at on-chain data, those major coin holders (OG whales) showed no obvious signs of dumping. This confirms from another angle that the selling was more passive tax operations, not major players fleeing.

More importantly, fundamentals are quietly shifting. Institutional-grade asset tokenization is now making substantial progress. The DTCC received a no-action letter from the SEC and officially launched tokenization services — what does this mean? It means Wall Street-level clearing and settlement systems are starting to embrace on-chain assets. Meanwhile, JP Morgan Asset Management launched a tokenized money market fund on Ethereum, which represents an important step for traditional financial institutions on public chains.

The regulatory front is also accelerating. The US Senate plans to review the Crypto Market Structure Act on January 15th. At this pace, 2026 is expected to see this actually pass into legislation. From year-end technical selling, to institutional assets going on-chain, to regulatory framework improvements, the entire narrative chain is forming.