Crypto Market Surges as Treasury Buybacks Weaken Dollar

The crypto market surged after Treasury Secretary Scott Bessent announced plans to double long-end bond buybacks, weakening the dollar and reigniting the debasement trade. This triggered a significant short squeeze, with Bitcoin hitting $80,000.

Ethereum and Solana each gained more than 30%, while Hyperliquid surged nearly 50%.

Despite strong inflows of $2 billion in net flows last week for spot bitcoin ETFs, year-to-date flows remain down $2.5 billion, according to Roxanna Islam, head of sector and industry research at VettaFi.

The market is becoming more selective, with demand concentrated on specific assets, such as solana spot ETFs gathering over $400 million year-to-date. This is evident in the closure of REX Osprey's staked ether and bitcoin ETFs and Grayscale's withdrawal of filings for Cardano, Polkadot, and Hedera ETFs.

SEI's ETF lineup has seen remarkable growth, more than tripling from $2.5 billion to over $9 billion in the past 12 months. This was driven by single-factor funds hitting three-year track records, model portfolio integration, and advisor network demand.