Bitcoin News Today: As Crypto Sells Off, Institutions Double Down on Long-Term Potential

Crypto's long-term fundamentals remain robust despite a recent market selloff, according to Hunter Horsley, CEO of Bitwise Asset Management. The firm's Solana Staking ETF (BSOL) and broader institutional adoption of crypto products underscore growing confidence in the sector, even as Bitcoin (BTC) and other major assets face short-term volatility.

The crypto market has entered "extreme fear" territory, with the Fear & Greed Index hitting a nine-month low of 10 amid Bitcoin's drop below $95,000 on Nov. 15. The decline, attributed to profit-taking, macroeconomic uncertainty, and leveraged longs being liquidated, has raised concerns about broader risk-off sentiment. However, Horsley emphasized that structural trends-such as the launch of spot ETFs and regulatory progress-continue to support crypto's long-term value proposition.

Bitwise's BSOL ETF, which controls $497.2 million in assets, has become a cornerstone of the Solana ecosystem. The fund, which began trading on the NYSE Arca in October, offers a 7.20% net reward rate by staking Solana (SOL) and recently launched options trading on Nov. 11. These derivatives enable institutional investors to hedge positions and execute complex strategies, a move that mirrors the rapid adoption seen in traditional markets. The ETF accounts for 98% of Solana ETF flows, since its debut, highlighting its dominance in the nascent product category.

Regulatory developments also signal a potential inflection point for crypto. The U.S. CFTC is advancing plans to approve leveraged spot crypto trading, with Acting Chair Caroline Pham confirming discussions with exchanges to launch such products as early as December. This aligns with broader efforts to bring crypto under a clearer regulatory framework, including the CFTC's August initiative to enable spot crypto contracts on regulated exchanges. Meanwhile, the Biden administration's crypto bill negotiations continue despite a government shutdown, with senators reportedly prioritizing market structure reforms.

Market fundamentals, however, remain mixed. Bitcoin's price action shows signs of consolidation, with traders closely watching the $97,500 level as a potential breakout zone. While short-term indicators like the RSI and MACD remain bearish, long-term holders have not accelerated selling, suggesting a base could form. Michael Saylor of MicroStrategy (MSTR) recently denied reports that his firm was offloading Bitcoin, reaffirming his bullish stance despite MSTR's 4.2% decline on the same day.

Institutional interest in crypto infrastructure is also surging. BitMart US, a newly launched exchange, has entered the U.S. market with a focus on compliance and security, offering zero-fee promotions for early users according to a report. Separately, BlackRock's BUIDL Fund expanded to Binance and BNB Chain, signaling broader institutional acceptance of digital assets.

Despite the near-term turbulence, Horsley and other industry leaders argue that crypto's long-term trajectory is intact. "The fundamentals-adoption, regulation, and product innovation-are stronger than ever," he said, pointing to Bitwise's expanding product lineup and the maturation of the crypto ecosystem. As the sector navigates regulatory and macroeconomic headwinds, the interplay between institutional adoption and retail sentiment will likely determine the next phase of growth.