The latest launch by Grayscale Fund of the #AI crypto industry sector; #BTC important personnel analysis from the 2025 conference.
Macro interpretation: The latest launch of the AI crypto industry sector by Grayscale Fund marks a further refinement of the classification system for crypto assets. This sector encompasses 20 assets with a total market capitalization of approximately $20 billion, accounting for only 0.67% of the total crypto market capitalization, making it the smallest sub-sector currently. This figure stands in stark contrast to the financial sector's $519 billion, highlighting that the AI field is still in its early developmental stage. It is noteworthy that the expansion of this sector is not merely a simple categorization of assets, but through redefining industry boundaries, it opens up a new valuation framework for emerging technology applications. This structural adjustment may exert pressure on traditional financial sectors while simultaneously providing institutional space for the long-term value discovery of the AI track.
Meanwhile, the significant decline in market volatility indicates that global financial markets have entered a "calm period," suggesting a shift in investor risk appetite. U.S. Treasury yields fell below 4.5% following fiscal concerns triggered by the "Inflation Reduction Act," and Japan's 10-year government bond yield also dropped below 3%, yet it has not deviated from historical highs. This combination of "low volatility and high interest rates" objectively provides support for the hedging properties of crypto assets, but also tests the market's pricing capability for emerging assets.
The cryptocurrency policy direction of the Trump administration has become a focal point of recent market attention. White House AI and cryptocurrency advisor David Sacks revealed that if funding can be obtained in a "budget-neutral" manner, the government may purchase more Bitcoin through channels like the Secretary of Commerce or Secretary of the Treasury. Although this statement has not formed a specific plan, its potential signaling significance cannot be ignored. When political figures incorporate crypto assets into their policy agendas, it often indicates substantial adjustments to the regulatory framework. Just as BlackRock executives proposed a 2% Bitcoin allocation suggestion at the Bitcoin 2025 conference, professional institutions' allocation decisions are accelerating their synchronization with policy directions.
However, the realization of policy dividends still requires time. The $3.4 million asset declaration of CFTC chairman candidate Brian Quintenz reveals the subtle balance between regulatory bodies and market participants. His asset declaration requirements with the government ethics office (divesting crypto assets within 90 days, avoiding a16z affairs for two years) effectively set clear boundaries for regulatory arbitrage. This dynamic game of "regulation-market" may both promote the process of compliance and lead to short-term volatility due to policy uncertainties.
Sun Yuchen, founder of TRON, presented highly forward-looking views at the #Bitcoin 2025 conference. He pointed out that WBTC, as the "smart contract gateway" for Bitcoin, is reshaping the underlying logic of blockchain finance. By introducing Bitcoin into public chains like Ethereum and TRON, WBTC not only addresses liquidity issues but also ensures asset security through a "proof of reserves" mechanism. The significance of this technological breakthrough lies in upgrading Bitcoin from a mere payment tool to a programmable asset, providing the infrastructure for the prosperity of the DeFi ecosystem. It is estimated that the on-chain transaction transparency of WBTC has reached 98.7%, and the gap in security metrics compared to traditional financial assets is narrowing.
It is noteworthy that this technological evolution forms a positive feedback loop with market sentiment. As more institutions participate in DeFi arbitrage through WBTC, the surge in on-chain trading volume in turn boosts BTC's liquidity premium. This "technology-market" virtuous interaction allows Bitcoin to gain broader financial application scenarios while maintaining price stability.
Latest data from CoinAnk shows that since the low point in April, Bitcoin futures open interest has surged. Although the popularity of other chains like Solana has receded somewhat, BTC's position volume continues to expand. This manifestation of both "risk preference" and "hedging" attributes allows BTC to exhibit unique resilience during market fluctuations. However, the marginal slowdown (stabilization) of current contract open interest may indicate that traders are completing profit-taking, leaving room for subsequent structural allocations. This state of "long-short competition" tests both institutional investors' patience in allocation and retail investors' timing abilities.
The core contradiction in the current crypto market is shifting from "narrative-driven" to "substantive verification." As technical solutions like WBTC begin to realize their value and as the feasibility of government purchasing Bitcoin gradually becomes clearer, the market's long-term narrative for BTC will shift from "speculation" to "infrastructure." This transition will take time, but as Sun Yuchen mentioned, an industry consensus is forming that "one should never short Bitcoin." In the future, as more countries align their regulatory frameworks, BTC is expected to play a more central role in the global financial system.
However, challenges still exist. The uncertainty of the CFTC regulatory framework, the recurring geopolitical risks, and the inertia of the traditional financial system may all act as catalysts for market volatility. Investors need to maintain a clear understanding: the long-term value of cryptocurrencies lies in their technological innovation capacity, while short-term fluctuations stem from periodic market sentiment. Only by understanding the underlying logic can one grasp the financial revolution that is currently unfolding.
The crypto market exhibits a triple-driving model of "technological breakthroughs - policy catalysts - market validation." BTC, as the core vehicle of this transformation, benefits from the liquidity enhancement brought by technological progress and directly benefits from the optimization of the policy environment. However, true value creation still requires finding answers in the balance between decentralization and centralized regulation. For investors, the key lies in grasping the dual rhythm of "technological implementation" and "policy implementation," seeking certainty amidst volatility.
BTC data analysis:
On-chain data from CoinAnk indicates that, according to real-time statistics from Hyperliquid whale data, as of May 28, 2025, renowned trader James Wynn's BTC long position shows significant fluctuations due to his 40x leverage operation. His current holding is 4,792 BTC, valued at $520 million, with an opening price of $109,782 and a liquidation price of $107,419, leaving a remaining profit of about $3 million. Compared to the $87 million profit five days ago, he suffered a loss of approximately $84 million during this period due to high-frequency, high-leverage trading, reflecting the high-risk nature of his position adjustment strategy.
It is worth noting that on May 27, they had attempted to expand their profits by increasing their position to $790 million (7,227 BTC), but were forced to reduce it to 5,782 BTC due to price declines, resulting in a floating loss of $20.38 million. This frequent adjustment of positions and high leverage operations not only exacerbated market volatility but also highlighted the sensitivity of the crypto market to whale-level traders. When large long and short positions are frequently involved, it may trigger a chain reaction of liquidations, such as the $1.2 billion long position suffering a single loss of $13.39 million on May 25. Although overall still profitable by $8.45 million, short-term funding pressure has already manifested. Such behavior may further increase market volatility, prompting retail investors to adjust their strategies, while also causing disturbances to the short-term price of mainstream currencies like BTC. Continuous attention must be paid to the potential risks of such high-leverage operations to prevent systemic risks.