Bitcoin News Today: Tether Gold Surpasses $800M Market Cap Amid 40% Annual Surge and Rising Institutional Bitcoin Holdings

Tether Gold (XAUt) has achieved a market cap exceeding $800 million, supported by 7.66 tons of physical gold, as investors seek digital exposure to precious metals amid rising inflation concerns [1]. The token, which tracks the price of physical gold, has seen a 40% annual increase, reflecting growing confidence in tokenized bullion as a hedge against economic uncertainty [1]. The World Gold Council noted that central banks added over 1,000 metric tons of gold in 2024, reinforcing the enduring appeal of the asset [1].

In parallel, Twenty One Capital, a Bitcoin treasury firm, has expanded its Bitcoin holdings to over 43,500 BTC, exceeding initial projections by 1,500 BTC and valuing its reserves at over $5.1 billion [1]. This accumulation positions the firm as one of the top corporate Bitcoin holders globally, with analysts noting that the move reflects broader institutional demand for Bitcoin as a store of value [1]. Tether’s financial backing has further enabled the firm to scale its holdings, strengthening its position in the Bitcoin ecosystem [1].

Meanwhile, Avalanche is making strides in tokenized finance, with a $250 million capital infusion into real-world assets (RWAs) through its partnership with Grove and Janus Henderson [1]. This development targets US Treasurys and collateralized loan obligations (CLOs), signaling a shift toward institutional-grade financial products on blockchain platforms [1]. Grove, supported by Steakhouse Labs, aims to bring actively managed investment strategies onchain, diversifying Avalanche’s financial ecosystem and challenging Ethereum’s dominance in RWA adoption [1].

Regulatory developments are also shaping the landscape, as the SEC recently approved in-kind redemptions for crypto ETFs, allowing fund managers to exchange shares for underlying assets directly [1]. This change is expected to lower transaction costs and enhance liquidity, particularly for Bitcoin and Ethereum ETFs [1]. With Bitcoin ETFs already attracting significant inflows since 2024 and Ethereum ETFs gaining momentum, the update could further boost institutional and retail participation in digital asset markets [1].

The convergence of tokenized gold, Bitcoin accumulation, and real-world asset tokenization highlights a broader trend of institutional adoption in crypto and digital finance [1]. As traditional financial strategies merge with blockchain infrastructure, the lines between physical and digital assets continue to blur, offering new opportunities for diversified investment.

[1] Source: [1] Tether Gold Market Cap Surpasses $800 Million as Physical Bullion Hits Record Highs (https://en.coinotag.com/tether-gold-market-cap-surpasses-800-million-as-physical-bullion-hits-record-highs/)