Ethereum Foundation Boosts DeFi Yield Farming; Tether Braces for US Stablecoin Regulations; Cboe Proposes SEC-Approved Crypto Staking; Robinhood's Crypto Trading Surges 400% in Q4; Bitwise Sees Institutional-Retail Crypto Sentiment Gap

The Ethereum Foundation has allocated nearly $120 million worth of Ether into various decentralized finance (DeFi) lending protocols to generate yield from its holdings. It transferred 30,800 ether to Aave, split between Aave's core market and Lido instance, and distributed funds to Spark of the MakerDAO ecosystem and Compound's lending platform. These investments are part of strategies to enhance its treasury value through annual yields without liquidating any assets.

Tether might need to sell bitcoin, precious metals, and other non-compliant assets to adhere to impending US stablecoin regulations, JPMorgan analysts suggest. The proposed STABLE and GENIUS Acts in the US require stablecoin issuers like Tether to ensure their reserves are sufficiently backed by liquid and high-quality assets, potentially impacting Tether's reserve management and market position significantly.

The Cboe BZX Exchange has filed with the US Securities and Exchange Commission (SEC) a proposal to allow staking in the 21Shares Core Ethereum ETF. This filing marks the first initiative by an ETF to seek approval for crypto staking from the SEC. Previously, the SEC had approved the ETF along with others but without the staking elements. The regulatory body is generally shifting towards a more crypto-friendly approach, potentially classifying some tokens as non-securities.

Robinhood, a commission-free brokerage, observed a 400% increase in crypto trading volume in Q4, reaching $70 billion. This surge is in contrast to the declining volumes earlier in the year and reflects a continuing strong interest in crypto trading. The firm's transaction-based revenues increased significantly, largely driven by crypto trading which generated $358 million, up 700% from last year. During the same period, Robinhood also expanded its crypto offerings in the US and launched Ethereum staking in the EU.

Bitwise Chief Investment Officer Matt Hougan identifies a significant opportunity in the crypto market due to contrasting sentiments between institutional and retail investors. Hougan notes institutional sentiment towards crypto is highly bullish, evidenced by substantial investments, including exchange-traded funds and corporate acquisitions of Bitcoin. Meanwhile, retail sentiment is at a low, affected by poor performance in altcoin investments compared to Bitcoin. Despite current retail pessimism, Hougan is optimistic about the long-term prospects for altcoins, highlighting potential regulatory clarity and the role of stablecoins as