Senator Cynthia Lummis and at least one other Republican in Congress are reportedly critical of US President Donald Trump for offering the top holders of his memecoin a dinner and White House tour.

According to a May 2 CNBC report, Lummis said the idea that the US president was offering exclusive access to himself and the White House for people willing to pay for it “gives [her] pause.” She wasn’t the only member of the Republican Party to be critical of Trump’s memecoin perks, announced on April 23, roughly three months after the then-president-elect launched the TRUMP token.  

“I don’t think it would be appropriate for me to charge people to come into the Capitol and take a tour,” said Republican Senator Lisa Murkowski, according to NBC News.

Despite Lummis’ reported “pause” over the president’s actions, on May 2, she posted a video to X of herself speaking on the Senate floor, saying she was “particularly pleased” by Trump’s support of legislation to establish a strategic Bitcoin (BTC) reserve in the United States. The Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide, or BITCOIN, Act would seemingly codify Trump’s executive order to create a national crypto reserve.

Related: House Democrats want ethics probe on Trump over crypto projects

The launch of the TRUMP coin on Jan. 17 was met with outrage from many lawmakers and figures in the crypto industry, who pointed to potential conflicts of interest and implications of allowing foreign actors to channel funds directly to Trump. The criticism continued after Trump announced that a group of the top memecoin holders would have the opportunity to apply for a White House tour and dinner.

 “Trump once claimed he is so rich he cannot be bought,” said Craig Holman, a government ethics expert with the consumer advocacy organization Public Citizen. “But his obsession with money means he apparently can be bought for a meme.”

Calls for impeachment over ties to crypto

Georgia Senator Jon Ossoff, a Democrat, called for Trump’s impeachment during an April 25 town hall, claiming the memecoin dinner represented “selling access for what are effectively payments directly to him.” During his first term, Trump was impeached twice in the House of Representatives but acquitted after the Senate votes fell short of the two-thirds majority required for conviction.

At the time of publication, it was unclear who, if any, of the memecoin holders would attend the May 22 dinner with Trump. Usernames from the TRUMP leaderboard have led to speculation that staunch supporters like Tron founder Justin Sun and Tesla CEO Elon Musk could be among the attendees. As of May 2, neither the individuals nor the companies have made any formal announcements.

Magazine: Trump’s crypto ventures raise conflict of interest, insider trading questions

Ethereum’s relative dominance among layer-1 (L1) blockchain networks has declined, resulting in an “open race” to become the leading Web3 platform, according to Alex Svanevik, CEO of data service Nansen.

“If you’d asked me 3–4 years ago whether Ethereum would dominate crypto, I’d have said yes,” Svanevik said during a panel discussion at the LONGITUDE by Cointelegraph event. “But now, it’s clear that’s not what’s happening.”

Ethereum is still the most popular L1 network. According to data from DefiLlama, its roughly $52 billion in total value locked (TVL) represents 51% of cryptocurrency residing on blockchain networks.

However, Ethereum’s dominance has diminished sharply since 2021, when the L1 controlled as much as 96% of aggregate TVL, the data shows. 

Panelists at the LONGITUDE by Cointelegraph event in Dubai. Source: Cointelegraph

“It’s an open race between multiple L1s for becoming the go-to platform for trading and broader blockchain use,” Svanevik said.

“We’re seeing smaller chains grow extremely fast, and a group of five or six chains emerging as leaders. It’s an exciting time,” he said.

Cointelegraph’s LONGITUDE is an event series that brings together leaders and innovators from the blockchain and Web3 space for exclusive discussions.

TVL distribution among blockchain networks. Source: DeFiLlamaRise of Solana

Solana (SOL), an alternative layer-1 known for faster transactions and lower fees than Ethereum, is in pole position to become Web3’s next leading chain, according to the Nansen CEO. “Solana has overtaken Ethereum on most onchain metrics — active addresses, transaction volume, even gas fees,” Svanevik said. “Ethereum still leads in TVL, and stablecoin issuance is still strong, but Solana’s growth is undeniable.”

Meanwhile, dozens of smaller L1s are also vying for market share — and not all of them are gaining sustainable traction, Vardan Khachatryan, chief legal officer of trading platform Fastex, told Cointelegraph during the panel. 

“Unfortunately, what we see in reality is that chains become popular when they are the hype of that particular bull run, new coins, airdrops, etc., rather than sustained adoption,” Khachatryan said.

Magazine: ZK-proofs are bringing smart contracts to Bitcoin — BitcoinOS and Starknet

Merchants in Cannes, France, the site of the international Cannes Film Festival, are set to begin accepting crypto payments by summer this year in an effort to attract clientele with high disposable income by modernizing the city’s commercial payment ecosystem.

According to Artem Shaginyan, founder and head of strategy of Web3 payment company Lunu Pay, the Cannes municipal government is aiming for a 90% adoption rate among local merchants. The executive also told Cointelegraph:

“This is a big signal. When a city like Cannes, known globally for culture and commerce, starts integrating crypto at scale, it shows that Web3 payments aren’t just a niche thing anymore. It’s about proving that crypto can work in everyday settings, not just online or in theory.”

In February, Cannes Mayor David Lisnard announced a crypto payment integration training session for business owners and professionals to promote the widespread acceptance of crypto payments in the city.

The Rue d’Antibes, Canne’s shopping and commercial district. Source: City of Cannes

Canne’s shift toward embracing cryptocurrencies reflects the broader trend of crypto adoption by city, state, and federal governments as these institutions seek to remain competitive on the global stage.

Related: Panama’s capital to accept crypto for taxes, municipal fees

Ahead of the curve? Other jurisdictions modernize with crypto

In December 2023, the Swiss city of Lugano started accepting Bitcoin (BTC) and stablecoin payments for taxes and municipal fees as part of the city’s broader initiative to become a global crypto hub.

Governor Jared Polis of the US state of Colorado directed the state’s Department of Revenue to begin accepting crypto tax payments in September 2022.

The Canadian city of Vancouver passed a motion in December 2024 to make the jurisdiction a “Bitcoin-friendly city” by exploring integrating BTC into the city’s financial system and potentially adopting a Bitcoin treasury strategy.

More recently, in April 2025, the capital city of Panama announced that taxes and municipal fees could now be paid in crypto, including Bitcoin, Ether (ETH), Circle’s US-dollar stablecoin (USDC), and Tether’s USDt (USDT) token.

Panama City mayor Mayer Mizrachi suggested the move would modernize the city and bring increased investment as well as global recognition.

Magazine: Crypto City Guide to Seattle: Site of CZ’s downfall and pot crypto vendors

Ben McKenzie, an actor known for his roles on television shows including Gotham and The OC, will make his directorial debut in a scathing documentary about cryptocurrency.

According to an April 29 Deadline report, McKenzie wrote, directed, and produced the documentary Everyone Is Lying To You For Money, set to premiere at SXSW London in June. The film features footage from 2022 of former FTX CEO Sam “SBF” Bankman-Fried and former Celsius CEO Alex Mashinsky before their respective companies folded. 

“Why is the false story of crypto still spreading?” said McKenzie, according to Deadline. “That’s the question I set out to answer with this film.”

Sam Bankman-Fried (left) with Ben McKenzie (right). Source: Instagram

Working with The New Republic staff writer Jacob Silverman, McKenzie pivoted from a role in Hollywood to speaking out against many of the issues surrounding cryptocurrency in 2021. After the collapse of FTX in November 2022, the actor testified at a US Senate hearing investigating the downfall of the crypto exchange. 

In addition to interviews with SBF and Mashinsky, the documentary will reportedly explore El Salvador President Nayib Bukele’s connections to crypto. Bukele rose to prominence in the industry after proposing that El Salvador recognize Bitcoin (BTC) as legal tender in 2021.

Related: Peter Todd forced into hiding after HBO doc claims he invented Bitcoin

It’s unclear what, if anything, could be revealed in the Bankman-Fried and Mashinsky interviews. Cointelegraph reached out to McKenzie for comment but did not receive a response at the time of publication.

Bankman-Fried in prison, Mashinsky could soon follow

The former FTX CEO has been the subject of other documentaries, interviews, and a Michael Lewis book. Bankman-Fried was found guilty on seven felony charges related to his role in the collapse of FTX and sentenced to 25 years in prison in 2024.

Mashinsky, who pleaded guilty to two felony charges as part of a deal with US prosecutors in December 2024, is scheduled to be sentenced on May 8. Authorities requested that a judge impose a 20-year sentence on the former CEO of Celsius.

Magazine: The $2,500 doco about FTX collapse on Amazon Prime… with help from mom

Ben McKenzie, an actor known for his roles on television shows including Gotham and The OC, will make his directorial debut in a scathing documentary about cryptocurrency.

According to an April 29 Deadline report, McKenzie wrote, directed, and produced the documentary Everyone Is Lying To You For Money, set to premiere at SXSW London in June. The film features footage from 2022 of former FTX CEO Sam “SBF” Bankman-Fried and former Celsius CEO Alex Mashinsky before their respective companies folded. 

“Why is the false story of crypto still spreading?” said McKenzie, according to Deadline. “That’s the question I set out to answer with this film.”

Sam Bankman-Fried (left) with Ben McKenzie (right). Source: Instagram

Working with The New Republic staff writer Jacob Silverman, McKenzie pivoted from a role in Hollywood to speaking out against many of the issues surrounding cryptocurrency in 2021. After the collapse of FTX in November 2022, the actor testified at a US Senate hearing investigating the downfall of the crypto exchange. 

In addition to interviews with SBF and Mashinsky, the documentary will reportedly explore El Salvador President Nayib Bukele’s connections to crypto. Bukele rose to prominence in the industry after proposing that El Salvador recognize Bitcoin (BTC) as legal tender in 2021.

Related: Peter Todd forced into hiding after HBO doc claims he invented Bitcoin

It’s unclear what, if anything, could be revealed in the Bankman-Fried and Mashinsky interviews. Cointelegraph reached out to McKenzie for comment but did not receive a response at the time of publication.

Bankman-Fried in prison, Mashinsky could soon follow

The former FTX CEO has been the subject of other documentaries, interviews, and a Michael Lewis book. Bankman-Fried was found guilty on seven felony charges related to his role in the collapse of FTX and sentenced to 25 years in prison in 2024.

Mashinsky, who pleaded guilty to two felony charges as part of a deal with US prosecutors in December 2024, is scheduled to be sentenced on May 8. Authorities requested that a judge impose a 20-year sentence on the former CEO of Celsius.

Magazine: The $2,500 doco about FTX collapse on Amazon Prime… with help from mom

XYO Network has onboarded more than 10 million nodes to its decentralized physical infrastructure network (DePIN), co-founder Markus Levin told Cointelegraph in an interview.

The nodes mostly comprise human users who provide data in exchange for rewards via the network’s mobile application, COIN. “The vast majority of our 10 million nodes are mobile users, but some are IoT devices like smart speakers,” Levin told Cointelegraph. 

Approximately 80% of XYO’s users are non-crypto natives who are participating in Web3 for the first time, he added.

They include truckers, rideshare drivers, delivery people, and nurses among others, Levin said, adding that “95% convert after onboarding through the COIN app.”

XYO launched a layer-1 blockchain network in January. Source: XYO

Related: DePIN XYO launches on Solana

DePIN Tokenomics

In exchange for data, XYO awards its users points that are redeemable for its native XYO token, as well as “BTC, ETH or even gift cards,” he said. 

In October 2024, XYO bridged its native token to Solana (SOL) in a bid to reach more users. The XYO token has a market capitalization of roughly $180 million as of May 2, according to data from CoinMarketCap.

XYO earns revenue by collecting and validating data in sectors ranging from real-world assets (RWAs) to gaming. It then uses a portion of that income to buy back XYO. 

In January, XYO launched its layer-1 blockchain, which collates real-world data from across XYO’s nodes onto a public ledger. 

The network’s validators stake XYO and earn rewards denominated in XL1, the network’s newly-launched gas token. 

XYO has a market capitalization of around $180 million. Source: CoinMarketCap

DePINs are blockchain protocols aimed at decentralizing real-world infrastructure and systems, including communications networks, data warehouses, energy markets, and more.

They are among Web3’s “next big use case[s],” with the potential to onboard “a significant number of new users to the crypto space,” according to a September 2024 report by MV Global, a Web3 investing firm.

According to MV Global, the DePIN ecosystem comprises upward of 1,000 projects and represents roughly $50 billion in total market capitalization.

Magazine: 10 crypto theories that missed as badly as ‘Peter Todd is Satoshi’

Key points:

Bitcoin trends toward $100,000. Will bears sell at this level?

Altcoins are trading above their respective support levels, suggesting that an altcoin rally is brewing.

Bitcoin’s (BTC) tight consolidation resolved in favor of the bulls with a break above the $95,000 barrier on May 1. The bulls are trying to push the price to the psychologically crucial level at $100,000, which may again witness a tough battle between the bulls and the bears. 

Veteran trader Peter Brandt sounded positive when he said in a post on X that Bitcoin could rally to the $125,000 to $150,000 range by August or September 2025 if it manages to regain its broken parabolic slope. However, Brandt cautioned that the rally could be followed by a sharp correction of more than 50%.

Crypto market data daily view. Source: Coin360

As Bitcoin nears the 100,000 mark, onchain analytics firm Glassnode cautions that the long-term holders (LTHs) may be tempted to book profits. The firm said in its newsletter that the LTHs tend to book profits when their profit margin reaches 350%, and that level will be hit at $99,900. A significant amount of buy-side pressure is needed to overcome the selling to continue the up move.

Could Bitcoin break above $100,000, pulling select altcoins higher? Let’s analyze the charts of the top 10 cryptocurrencies to find out.

Bitcoin price prediction

Bitcoin’s break above $95,000 signals an advantage to buyers, but the bears are unlikely to give up easily.

BTC/USDT daily chart. Source: Cointelegraph/TradingView

Sellers will try to pull the price back below $95,000, trapping the aggressive bulls. If they can pull it off, the BTC/USDT pair could test the 20-day exponential moving average ($91,391). This is a necessary support to watch out for as a solid bounce off the 20-day EMA suggests the bullish sentiment remains intact. That increases the likelihood of a break above $100,000. The pair may then reach $107,000.

This optimistic view will be invalidated in the short term if the price turns down and breaks below the 20-day EMA. The pair may then tumble to the 50-day simple moving average ($86,236).

Ether price prediction

Buyers successfully defended Ether’s (ETH) drop to the 20-day EMA ($1,757) on April 30, signaling demand at lower levels.

ETH/USDT daily chart. Source: Cointelegraph/TradingView

The gradually upsloping 20-day EMA and the RSI in the positive territory indicate a slight edge to the bulls. If the price maintains above $1,857, the ETH/USDT pair could climb to the breakdown level of $2,111. There is minor resistance at $1,957, but that is likely to be crossed.

This positive view will be invalidated in the near term if the price turns down and plunges below the moving averages. That could pull the pair down to $1,537, which is expected to attract buyers.

XRP price prediction

The bulls have managed to keep XRP (XRP) above the moving averages, but the bounce lacks strength.

XRP/USDT daily chart. Source: Cointelegraph/TradingView

The flattening 20-day EMA ($2.17) and the RSI just above the midpoint do not give a clear advantage either to the bulls or the bears. Buyers will seize control on a break and close above the resistance line. That clears the path for a rally to $3.

On the contrary, a break and close below the moving averages could sink the XRP/USDT pair to the solid support at $2. This is a critical level to keep an eye on because a break below $2 could pull the pair to $1.61.

BNB price prediction

BNB (BNB) is witnessing a seesaw battle between the bulls and the bears at the moving averages.

BNB/USDT daily chart. Source: Cointelegraph/TradingView

If the price maintains below the moving averages, the BNB/USDT pair could slump to $576 and later to $566. Buyers are expected to vigorously defend the $566 level because a break below it may sink the pair to $520.

The bulls will have to push the price above $620 to signal strength. The pair could then rise to $644, which is likely to act as a strong resistance. If buyers bulldoze their way through, the pair could surge to $680.

Solana price prediction

Solana (SOL) continues to face selling at the $153 level, but a positive sign is that the bulls have not ceded much ground to the bears.

SOL/USDT daily chart. Source: Cointelegraph/TradingView

The upsloping 20-day EMA ($142) and the RSI in the positive zone suggest that the path of least resistance is to the upside. If buyers push and maintain the price above $153, the SOL/USDT pair could rally to $180.

Contrary to this assumption, if the price turns down sharply and breaks below the 20-day EMA, it suggests profit booking by the short-term bulls. The pair could then slump to the 50-day SMA ($132).

Dogecoin price prediction

Dogecoin (DOGE) rebounded off the moving averages on May 1, indicating that the bulls are trying to keep the price inside the upper half of the range.

DOGE/USDT daily chart. Source: Cointelegraph/TradingView

The bulls will attempt to push the price to the top of the range at $0.21, which is a critical near-term resistance level to watch out for. If buyers pierce the $0.21 level, the DOGE/USDT pair will complete a double-bottom pattern. That could start a move to $0.25 and then to the pattern target of $0.28.

Contrarily, a break and close below the moving averages opens the doors for a fall to the support of the range at $0.14. Buyers are expected to defend the $0.14 level with all their might because a break below it may sink the pair to $0.10.

Cardano price prediction

Buyers bought the dip to the moving averages in Cardano (ADA), but the failure to build upon the rebound suggests a lack of demand at higher levels.

ADA/USDT daily chart. Source: Cointelegraph/TradingView

Buyers will have to drive the price above the $0.75 resistance to gain the upper hand. If they do that, the ADA/USDT pair could rally to $0.83. Sellers will try to halt the up move at $0.83, but if the bulls prevail, the pair could reach $1.

On the downside, a break and close below the moving averages tilts the short-term advantage in favor of the bears. The pair could slide to $0.58, where the buyers are expected to step in. 

Related: Moon soon? XRP’s strongest spot premium aligns with 70% rally setup

Sui price prediction

Buyers pushed Sui (SUI) toward the $3.90 overhead resistance on May 1, but the long wick on the candlestick shows that bears are aggressively defending the level.

SUI/USDT daily chart. Source: Cointelegraph/TradingView

The first support on the downside is $3.27, and then the 20-day EMA ($3.01). If the price rebounds off the 20-day EMA with strength, the bulls will again try to drive the SUI/USDT pair above $3.90. If they manage to do that, the pair could rally to $4.25 and subsequently to $5.

Instead, if the price breaks below the 20-day EMA, it suggests that the bulls have given up. The pair may slump to the solid support at $2.86. If the price rebounds off the $2.86 support, the pair may form a range.

Chainlink price prediction

Chainlink (LINK) turned up from the moving averages on May 1, indicating that the sentiment remains positive.

LINK/USDT daily chart. Source: Cointelegraph/TradingView

Buyers will try to push the price above the $16 overhead resistance and challenge the resistance line of the descending channel pattern. Sellers are expected to fiercely defend the resistance line because a break and close above it signals a potential trend change.

If the price turns down from the overhead resistance and breaks below the moving averages, it suggests selling on rallies. The LINK/USDT pair may drop to $11.68, extending its stay inside the channel for some more time.

Avalanche price prediction

Avalanche (AVAX) bounced off the 20-day EMA ($20.89) on May 1, indicating that the bulls are buying on dips.  

AVAX/USDT daily chart. Source: Cointelegraph/TradingView

Buyers will try to propel the price above the $23.50 overhead resistance. If they manage to do that, the AVAX/USDT pair will complete a double-bottom pattern. That may start an up move to $28.78 and later to the pattern target of $31.73.

The moving averages are the crucial support to watch out for. If the price turns down from the current level or the overhead resistance and breaks below the 50-day SMA ($19.79), it suggests that the range-bound action may continue for a few more days.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

In the annals of financial history, few institutions have faced the tempests of competition with the steadfast resolve of Grayscale Bitcoin Trust (GBTC). Born in 2013 as a private placement, GBTC pioneered regulated Bitcoin investment, granting investors access to Bitcoin’s (BTC) meteoric rise without the perils of digital wallets or unregulated exchanges.

On Jan. 11, 2024, it transitioned into a spot Bitcoin ETF following a landmark victory against the SEC. This marked a pivotal moment with the SEC’s view that ETFs can offer lower expense ratios and enhanced tax efficiency compared to traditional funds. 

Even still, GBTC’s financial resilience shines, generating $268.5 million in annual revenue, surpassing the $211.8 million of all other US spot Bitcoin ETFs combined, despite losing over half its holdings with $18 billion in outflows since early 2024. This is no fleeting triumph of inertia. 

The numbers tell a tale of paradox. BlackRock’s iShares Bitcoin Trust (IBIT), with $56 billion in assets under management (AUM) and a 0.25% fee, generated $137 million in 2024 while achieving $35.8 billion in inflows and $1 billion in daily trading volume within weeks of launch. Meanwhile, GBTC’s 1.5% expense ratio, up to seven times higher than competitors, fuels its revenue lead, even though it bled $17.4 billion in outflows, with a record single-day loss of $618 million on March 19, 2024, driven by investors chasing lower fees or capitalizing on the trust’s historical discount to net asset value (NAV), which plummeted from 50% to near zero by July 2024.

This clash of revenue dominance and capital flight demands scrutiny, unveiling the intricate dance of investor psychology, market dynamics and Grayscale’s calculated resilience.

Yet, GBTC’s $18 billion in AUM and its ability to generate $268.5 million despite significant outflows points to a deeper narrative: tax friction and institutionalized inertia. The inability of companies, family offices and other institutions to quickly pivot due to tax barriers and company directives bubbles to the surface. The $100-billion total spot Bitcoin ETF market points to the stakes of this contest, with Grayscale’s revenue dominance poised to evolve as competition intensifies.

Related: The sentiment engine of Bitcoin ETFs is rewiring market structure

What sustains GBTC’s revenue crown in this crucible of competition? Is it the arithmetic of high fees applied to a still-formidable AUM, the loyalty of battle-scarred investors, or the unseen weight of tax frictions binding them to their positions?

As we probe this question, we uncover the mechanics of GBTC’s dominance and the broader currents shaping the future of crypto investment. The answer lies in a potent blend of history, strategy and the unyielding faith of investors in a titan that, against all odds, refuses to yield.

GBTC Rev vs. all other ETFs. Source: CoinGlassGrayscale’s high-fee revenue engine

At the core of GBTC’s revenue dominance lies its 1.5% expense ratio, a towering figure beside competitors like IBIT and FBTC (both 0.25%), Bitwise (0.24%) and Franklin Templeton (0.19%).

Applied to $17.9 billion in AUM, this fee yields $268.5 million annually, eclipsing the $211.8-million combined revenue of all other US spot Bitcoin ETFs, which manage $89 billion collectively.

ETF Store president Nate Geraci remarked on X, “GBTC still making more [money] than all of the other ETFs combined… And it’s not even close.” This arithmetic edge endures despite $21 billion in outflows since January 2024, including a daily average loss of $89.9 million, underscoring the sheer power of high fees on a substantial asset base.

Source: Nate Geraci

The fee structure is both GBTC’s bastion and its Achilles’ heel. Before its ETF conversion, GBTC charged 2%, a rate justified by its monopoly as the sole US vehicle for Bitcoin exposure within traditional portfolios. Post-conversion, the 1.5% fee draws ire, with Bryan Armour, director of passive strategies research for Morningstar, predicting sustained outflows as investors flock to cheaper alternatives. 

Grayscale’s counterstroke was the Grayscale Bitcoin Mini Trust (BTC), launched in March 2025 with a 0.15% fee (the lowest among US spot Bitcoin ETPs). Seeded with 10% of GBTC’s Bitcoin holdings ($1.7 billion AUM), the Mini Trust has drawn $168.9 million in inflows, targeting cost-conscious investors. However, the Mini Trust’s lower revenue per dollar of AUM ($2.55 million annually) pales beside GBTC’s $268.5 million, reinforcing the latter’s dominance.

Grayscale’s dual strategy (high-fee GBTC for revenue, low-fee Mini Trust for retention) reveals a nuanced defense, but the fortress of GBTC’s fees remains unbreached, its revenue crown secure for now.

Legacy and loyalty

Beyond the arithmetic of fees, GBTC’s revenue supremacy rests on its storied legacy, the fierce loyalty it inspires and the formidable tax frictions that tether investors to its fold. Since 2013, Grayscale has been the standard-bearer of regulated Bitcoin investment, overcoming regulatory tempests to become the first publicly traded Bitcoin fund in 2015 and the largest spot Bitcoin ETF by AUM ($26 billion) upon its NYSE Arca listing in 2024.

Its August 2023 legal victory against the US SEC, which compelled the approval of spot Bitcoin ETFs, solidified its stature as a pioneer. This legacy resonates with institutional and accredited investors, many of whom entered GBTC during its private placement phase or at steep NAV discounts, forging a bond that endures.

Tax considerations form a silent but mighty anchor. Many early GBTC investors purchased shares at low prices, with Bitcoin trading at $800 in 2013 compared to the mid-$90,000 range by May 2025. This roughly 120-fold increase has generated substantial unrealized capital gains, making sales costly.

Related: Bitcoin price recovers, Ethereum RWA value up 20%: April in charts

An investor who purchased 100 shares of GBTC at $10 in 2015 and now sees them valued at $400 each would be sitting on a $39,000 capital gain. Selling those shares to move into a lower-fee ETF like IBIT or FBTC could trigger a tax bill of $7,800 at the 20% long-term capital gains rate typically applied to high-net-worth individuals or $5,850 at the 15% rate for others. This kind of taxable event often discourages redemptions, particularly for long-term holders in taxable accounts.

On the other hand, for those holding GBTC in tax-advantaged vehicles such as IRAs or 401(k)s, gains can be deferred and, in the case of Roth IRAs, avoided entirely, making GBTC comparatively more attractive for legacy investors reluctant to switch.

Psychological factors amplify these barriers. Loss aversion (the reluctance to realize taxable gains) and loyalty to Grayscale’s brand deter investors from abandoning a vehicle that weathered Bitcoin’s volatility. The closure of the NAV discount (from 50% to near zero in July 2024) spurred outflows as arbitrageurs cashed out. Still, core holders remain, bolstered by trust in Grayscale’s custodianship via Coinbase Custody, which secures $18.08 billion in AUM in May 2024. Its investor base, spanning crypto-native institutions, hedge funds and retail clients via platforms like Fidelity and Schwab, values its simplicity (no crypto wallets required) and regulatory pedigree.

While IBIT and FBTC draw new capital with lower fees and liquidity, GBTC retains a niche among those who see it as a battle-tested titan. Former Grayscale CEO Michael Sonnenshein’s claim that outflows are reaching “equilibrium” suggests a stabilizing core, with tax frictions and legacy fortifying retention. In a market driven by innovation, GBTC’s history, bolstered by tax barriers and investor faith, is its shield, guarding its revenue crown against the relentless advance of newer rivals.

A historical timeline graphic showing GBTC milestones (2013 launch, 2015 public trading, 2023 SEC victory, 2024 ETF conversion), with Bitcoin price spikes ($800 to $103,000) and AUM growth overlaid. Source: Dr. Michael Tabone 

Magazine: ZK-proofs are bringing smart contracts to Bitcoin — BitcoinOS and Starknet

The US Central Intelligence Agency is increasingly incorporating Bitcoin (BTC) as a tool in its operations, and working with the cryptocurrency is a matter of national security, Michael Ellis, the agency’s deputy director, told podcast host Anthony Pompliano.

In an appearance on the market analyst and investor’s show, Ellis told Pompliano that the intelligence agency works with law enforcement to track BTC, and it is a point of data collection in counter-intelligence operations. Ellis added:

“Bitcoin is here to stay — cryptocurrency is here to stay. As you know, more and more institutions are adopting it, and I think that is a great trend. One that this administration has obviously been leaning forward into.”

“It’s another area of competition where we need to ensure the United States is well-positioned against China and other adversaries,” Ellis said.

Podcast host and investor Anthony Pompliano (left) and Deputy CIA director Michael Ellis (right). Source: Anthony Pompliano

Although Ellis’s comments point to Bitcoin maturing as an asset, they also reflect the increased involvement of governments and institutions in Bitcoin and cryptocurrencies. This increased involvement runs contrary to the libertarian and cypherpunk ethos originally inherent in crypto.

Related: Geopolitical tensions fuel central bank shift toward gold, crypto — BlackRock exec

Bitcoin: from cypherpunk experiment to state reserve asset

US President Donald Trump signed an executive order establishing a Bitcoin Strategic Reserve on March 7, to mixed reactions from the Bitcoin community.

Bitcoin Magazine CEO David Bailey celebrated the move, while Venice AI founder and BTC advocate Erik Vorhees warned against the government owning any Bitcoin but added that if the US government is to adopt any crypto reserve, it should be Bitcoin-only.

Concerns that cryptocurrencies have lost their cypherpunk roots predate the current market cycle and any strategic reserve legislation or comprehensive regulatory frameworks for digital assets.

In March 2020, Therese Chambers, the former director of retail and regulatory investigations at the United Kingdom’s Financial Conduct Authority (FCA), argued that cryptocurrencies had become increasingly financialized and institutionalized.

Chambers added that digital assets were behaving far more like traditional financial instruments than the privacy-preserving tools they were initially billed as.

Magazine: Big Questions: Did the NSA create Bitcoin?

Opinion by: Chris Jenkins, adviser to Pocket Network

Tim Berners-Lee’s vision of the World Wide Web is dead. Instead of an open and accessible global information system, the web is controlled by centralized global data conglomerates, which don’t just restrict free speech but also monetize your data as a price of entry. Web2 firms have built walled gardens with massive information asymmetry between companies and users.

Blockchain-based decentralized tech challenges the status quo, offering an alternative to Web2’s closed-source infrastructure. 

It enables developers and engineers to build a censorship-resistant and accessible open-data web to champion the cause of free speech. Open-source technology creates a paradigmatic shift in a fair and inclusive internet where centralized web companies won’t dictate the terms.

A vision deferred

In 1989, Berners-Lee’s invention created a virtual space for collaboration, sharing and learning from one another. The web’s first iteration was based on openness, where anyone could contribute, access information, work together, and enjoy the same opportunities.

The internet is no longer free in 2025. Capital’s brute force has emboldened centralized companies to exercise authoritarian control over data and information flows.

Unfortunately, these companies have acquired their power and resources from unaware users who unknowingly contributed to their capital accumulation strategies. Web2 companies surreptitiously collect data from users without fair compensation and use that as a weapon to control user behavior.

Corporations harness user data to train opaque algorithms and deploy information “discoverability” to shape users’ beliefs and emotions. This practice is visible mainly on centralized social media platforms such as Facebook, Instagram and X, with multiple scandals and pending litigations eroding user trust.

For example, in June 2024, Meta, the parent company of Facebook and Instagram, received 11 complaints from European Union members. The complaints concerned using personal data like posts and images to train Meta’s AI models without consent, violating EU privacy laws.

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The Cambridge Analytica scandal demonstrated how companies mine data to shape political perspectives and election outcomes. These companies also construct pre-determined narratives and shape market behavior by promoting or subverting curated reports, sometimes shaping public perspectives on health and economic data.

Under its Digital Markets Act, the European Commission has initiated a noncompliance investigation into Apple, Meta, Amazon and Alphabet’s practices. Meta has also incurred a $1.3 billion fine for failing to comply with privacy regulations.

In this environment, “free speech” remains a far-fetched dream because the entire tech stack is hostile to accessibility and openness. To realize Berners-Lee’s vision, apps must use a decentralized tech stack and be built from the ground up on an open architecture.

Make the internet free (again)

An app’s tech stack consists of its front and back ends, data storage and Content Delivery Network (CDN). Web2 platforms depend on a centralized tech stack that puts free speech at risk, while most blockchain-powered apps leverage a censorship-resistant decentralized tech stack with high uptime.

Some decentralized applications (DApps) build their front end on a decentralized interface. Most of their back end, however, is still stuck on centralized data infrastructure.

For example, despite their censorship vulnerabilities and single failure points, decentralized applications (DApps) often use centralized cloud providers and data hosting platforms. These types of attack vectors make projects like Tornado Cash subject to the changing moods of state actors.

Shifting to open-source protocols for distributed data storage like InterPlanetary File System (IPFS) and Filecoin upholds the free speech philosophy on DApps. These protocols offer a censorship-resistant, tamper-proof storage facility that remains accessible without arbitrary outages.

DApps also use centralized remote procedure call (RPC) providers to supply data from the back-end to the front-end interface, especially across multiple networks. But any outage or attack, like the one on X, can lead to downtime, inaccuracies, data gaps and disconnected information flows. If it doesn’t seem like much, remember downtime or inaccuracies in decentralized finance can cost billions.

Decentralized protocols avoid these situations by transforming data accessibility and transfer channels with independent node operators. Data queries are distributed across the network, eliminating any single point of failure and providing uninterrupted data availability. More importantly, it safeguards free speech rights because no single node can block or obstruct data flow, and the network remains accessible even if several nodes go offline.

CDNs, yet another crucial component for serving user requests, can become inaccessible due to market pressure or political influence. Opaque decisions from closed-door meetings dictate data flows on CDNs without any certainty in information flows.

Start with the basics

Decentralized protocols remove the need for centralized decision-making by enabling apps to directly access data without intermediaries. These permissionless protocols connect open-source data and service providers with users and applications, removing human interaction and associated manufactured problems.

Blockchain-powered platforms lay the foundation for a decentralized tech stack that promotes free speech and isn’t controlled by centralized Web2 companies. These permissionless protocols build an open-source world and return the internet to Berners-Lee’s vision of a global and accessible network.

Opinion by: Chris Jenkins, adviser to Pocket Network.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.