Trust Wallet compensates users whose accounts were hacked; Grayscale submits TAO spot ETF application.

Headline

▌Trust Wallet: Compensating Affected Users, Total Stolen Assets Approximately $8.5 Million

Trust Wallet released an update regarding the security vulnerability in its browser extension version 2.68. The incident affected users who opened and logged into the Trust Wallet browser extension version 2.68 between December 24th and 26th. If users received push notifications through the Trust Wallet mobile application or saw a security incident banner on the Trust Wallet browser extension, they may still be using the compromised wallet. It has been confirmed that 2,520 wallet addresses were affected by this incident and funds were stolen by the attackers, with a total affected asset value of approximately $8.5 million. These assets are associated with 17 wallet addresses controlled by the attackers. Trust Wallet has decided to proactively compensate affected users, is refining the compensation process and ownership verification procedures, and has begun communicating with victims who have been in contact with them over the past few days.

▌Grayscale Submits Application for BitTensor Spot ETF

Grayscale has submitted an S-1 filing to the U.S. SEC, proposing to launch a spot ETF product tracking BitTensor (TAO), further expanding its cryptocurrency ETF product line.

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Blockchain Applications

▌Delin Holdings Subsidiary Approved to Provide Virtual Asset Trading Services

Delin Holdings (01709.HK) announced in Hong Kong that its 70% owned subsidiary, Delin Securities (Hong Kong) Limited, has received conditional approval from the Hong Kong Securities and Futures Commission to provide virtual asset trading services under a consolidated account arrangement, subject to certain conditions imposed on Delin Securities' existing Type 1 (Securities Dealing) regulated activity license.

▌Sources: SoftBank Has Fully Fulfilled Its $40 Billion Investment Commitment in OpenAI

According to CNBC, citing sources, SoftBank has fully fulfilled its $40 billion investment commitment in OpenAI.

Elon Musk stated in a post on the X platform that his Tesla and SpaceX stock holdings constitute almost his entire wealth, and the value growth of these stocks depends solely on the products and services the companies produce. This means that his wealth increase stems from creating more value for the public. Furthermore, all Tesla and SpaceX shareholders, including employees, share in the gains from the stock's appreciation. Cryptocurrency

Grayscale Predicts 2026 US Crypto Market Structure Legislation Will Dominate the Market

▌Grayscale Predicts 2026 US Crypto Market Structure Legislation Will Dominate the Market

Digital asset management company Grayscale pointed out in a report on Monday that at the end of 2025, investors will be focused on two key issues: when Washington, D.C. will introduce a comprehensive regulatory framework for digital assets, and whether the development of quantum computing poses an imminent threat to blockchain security. Grayscale believes that the bipartisan cryptocurrency market structure bill is likely to become law in 2026, which will be a milestone in the crypto asset field. At that time, a more complete and unified regulatory framework in the United States and other major economies will drive the crypto market towards an institutionalized era. As for quantum computing, although powerful quantum computers may theoretically break existing encryption standards, Grayscale believes that this risk is still far away at present and is unlikely to have a substantial impact on asset prices in 2026. In the long run, blockchain and other technologies will need to upgrade to post-quantum cryptography, but it will not have a significant impact on valuations next year.

In addition, the article also mentions the development status of blockchain in 2025 and the price increase of Aptos due to a surge in trading volume. BlackRock transferred nearly 658 BTC to a Coinbase Prime address, worth approximately $57.83 million. According to Arkham monitoring data, BlackRock transferred 657.962 BTC, worth approximately $57.83 million, to a Coinbase Prime address through its Bitcoin exchange-traded fund IBIT. Tokenized stocks' total market capitalization has reached a record high of $1.2 billion. According to Token Terminal data, the total market capitalization of tokenized stocks has reached a record high of $1.2 billion. Currently, 368 entities hold over $185 billion in cryptocurrency funds. Companies hold the vast majority (73%), while governments still hold over a quarter.

▌Analyst: Bitcoin's "4-Year Cycle" is Extending to a "5-5.5-Year Cycle"

Cryptocurrency market analyst Plan C wrote on the X platform that Bitcoin has not escaped its cyclical nature, but a major difference now is that due to the influence of various macroeconomic cycles and other factors, Bitcoin is currently lagging behind its historical average by about 12-18 months. Therefore, this cycle is expected to extend to 5-5.5 years, rather than the commonly referred to "4-year cycle." In other words, the market is currently experiencing a slower and longer cycle, which may cause some investors to sell prematurely and miss the true cycle peak.

▌Metaplanet purchased 4,279 BTC in Q4 2025, currently holding a total of 35,102 BTC

Monson Gerovich, CEO of the Japanese Bitcoin treasury company Metaplanet, stated in an article on the X platform that Metaplanet purchased 4,279 BTC in the fourth quarter of 2025, spending a total of approximately $451.06 million, with an average price of approximately $105,412 per BTC, achieving a Bitcoin return of 568.2% in 2025. As of December 30, 2025, the company holds a total of 35,102 BTC, with a cumulative investment of approximately $3.78 billion, and an average purchase price of approximately $107,606 per BTC.

Matrixport: Ethereum's "Triangle" Pattern Approaching a Structural Breakout Point, Potentially Facing a Key Decision Matrixport released a daily chart analysis stating that Ethereum's "triangle" pattern is approaching a structural breakout point, potentially leading to a key decision in 2026. Many investors entered the crypto market during Ethereum's upward cycle, attracted by its smart contract capabilities and the vision of "programmable money." In 2021, several prominent figures even predicted Ethereum would reach $10,000. However, reality did not unfold as expected—Ethereum did not break out, but instead consolidated within a large triangle pattern for years. During this period, the pattern has shown two "false signals": one downward breakout and one upward breakout, but both were quickly negated by the market, with prices returning to the triangle's range. Now, as the triangle continues to converge and the space gradually diminishes, a clear directional breakout is approaching, likely in 2026. The coming year may well be one of the most crucial phases in Ethereum's history, as this long-term structure will finally face a directional choice. SharpLink's total ETH staking rewards surpass 10,000, with 518 ETH awarded last week. Ethereum treasury company SharpLink announced that it received 518 ETH in staking rewards last week, which, at current market prices, will create over $1.5 million in value for shareholders. Since launching its staking strategy on June 2, 2025, the total staking rewards have reached 10,219 ETH. It is reported that its ETH holdings are currently 100% staked in an institutional-grade manner.

▌Yi Lihua: The Fed's easing will gradually increase, and a short squeeze is inevitable once the market rises

Yi Lihua, founder of Liquid Capital (formerly LD Capital), commented on the "Fed's injection of $16 billion in liquidity," saying, "The Fed will gradually ease monetary policy, and the scale will increase. This is the second time since the pandemic. The first was the massive easing during the March 12 pandemic, which led to a bull market. This round is also easing. With institutions locking up Bitcoin and ETH, the chip structure has changed, and a short squeeze is inevitable once the market rises. The company has sufficient funds to repay leverage and buy on dips. Short sellers who close their positions early will suffer small losses, while those who close later will suffer large losses. The short seller alliance has collapsed."

▌Grayscale discloses GTAO details: Fee rate 2.5%, number of shares in circulation 1,881,500

▌Tether Treasury Mints $1 Billion USDT on TRON Network

According to Whale Alert monitoring, Tether Treasury minted $1 billion USDT (approximately $999 million) on the TRON network.

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Important Economic Developments

▌Fed Injects $16 Billion in Liquidity, Second Largest Since the COVID-19 Pandemic

According to Barchart, the Federal Reserve injected $16 billion into the US banking system yesterday through overnight repurchase agreements, the second largest liquidity injection since the COVID-19 pandemic.

According to a report by Jinse Finance, the minutes of the Federal Reserve's December meeting, released on Tuesday, stated that a survey showed respondents generally expect the Fed to purchase approximately $220 billion in short-term Treasury securities over the next 12 months, although there were significant differences in respondents' estimates of the expected purchase amount. Fed policymakers decided at their December meeting to begin purchasing short-term Treasury securities, believing that reserves in the financial system had fallen to a level considered "ample," reflected in rising short-term funding costs. The Fed stated it would purchase approximately $40 billion in short-term Treasury securities per month, gradually reducing the amount thereafter. To date, the Fed has purchased approximately $38 billion in short-term Treasury securities this month and will conduct two more such operations in January.

▌Fed Meeting Minutes: Deep Divergence, Most Believe Interest Rates Can Fall with Inflation

According to the latest Federal Reserve meeting minutes, the FOMC agreed to cut interest rates at its December meeting, but engaged in a deep and detailed debate about the risks currently facing the U.S. economy. According to the minutes, given the various risks facing the U.S. economy, even some officials who supported the rate cut acknowledged that "this decision was the result of weighing the pros and cons, or they might have supported maintaining the target interest rate range unchanged." Some participants indicated that, based on their economic outlook, it might be necessary to maintain the target interest rate range unchanged for some time after this meeting's reduction in the interest rate range. The minutes also show that if inflation declines gradually as expected, most officials believe further rate cuts are appropriate. The minutes continue to demonstrate the divergence among Fed officials, highlighting the difficulty they faced in making recent decisions. This is an unusual outcome for the Fed, and this situation has occurred at two consecutive meetings.

▌Traders Maintain Bets on Two Fed Rate Cuts in 2026; Policy Minutes Fail to Change Market Expectations

Although Fed officials have reached a consensus on a December rate cut and hinted at possible further easing, this has not prompted traders to significantly raise their expectations for lower borrowing costs. The market still tends to bet on two rate cuts next year, rather than the three expected in early December. While policymakers have emphasized their focus on labor market risks, traders are likely waiting for follow-up data to validate these concerns.

▌Fed Staff's Economic Growth Forecasts Accelerate Compared to October

The Fed staff's economic outlook in the meeting minutes mentioned that, overall, real GDP growth is expected to accelerate slightly through 2028 compared to the forecast prepared for the October meeting. This mainly reflects the expected greater support from financial market conditions and stronger expectations for potential output growth.

After 2025, as the negative impact of high tariffs diminishes and fiscal policy and financial market conditions continue to support spending, GDP growth is expected to remain above potential growth through 2028. Therefore, the unemployment rate is expected to gradually decline after this year, reaching a level slightly below the staff's estimated natural rate of unemployment in 2027. Overall, staff's inflation forecasts for 2025 and 2026 are slightly lower than those presented at the October meeting, but forecasts for 2027 and 2028 remain similar to previous forecasts. The minutes of the Federal Reserve's December monetary policy meeting show that a majority of participants supported a rate cut in December; a minority of participants believed that a December rate cut was not reasonable. Some participants who supported a rate cut said the decision was delicately weighed, and they could have supported keeping rates unchanged. Most officials believed that labor market risks remained tilted to the downside, while generally believing that inflation risks were tilted to the upside. According to CME's "FedWatch," the probability of the Federal Reserve cutting interest rates by 25 basis points in January next year is 14.9%, while the probability of keeping rates unchanged is 85.1%. By March next year, the probability of a cumulative 25 basis point rate cut is 45.2%, the probability of keeping rates unchanged is 48.3%, and the probability of a cumulative 50 basis point rate cut is 6.5%. It's no exaggeration to say that 2025 will be a brutal year for most crypto professionals. A large number of project teams are vying for market attention, and liquidity is inevitably being excessively dispersed across a massive number of cryptocurrencies, leading to severe dilution of funds. Meanwhile, the predatory nature of token economic models has become increasingly apparent. Low circulating supply artificially creates scarcity, reducing selling pressure in the early stages of TGE and thus driving up the price. However, once the token unlocking rush arrives, a large influx of new supply into the market inevitably causes the price to collapse, resulting in huge losses for early investors. New tokens listed on top centralized exchanges in the past year have seen an average drop of 75%-89%. The core reason for the dismal performance of these tokens in their initial launch is the prevalence of points-based systems. Many projects that haven't yet issued tokens and lack quality products artificially create false demand through points-based systems in order to issue tokens at high fully diluted valuations. Many projects that haven't yet implemented products—such as PMF—also take advantage of points-based systems to deliberately exaggerate their total locked value and trading volume, just to sell at a high price when the token is listed. Every bull market has its own bubble sector; in 2025, that bubble is artificial intelligence. Many large investment institutions have lost interest in the crypto market and turned their attention to the artificial intelligence (AI) sector. In the first quarter of 2025, 57.9% of venture capital flowed to AI companies. Meanwhile, venture capital flowing to blockchain companies has shrunk significantly in recent years. As capital shifts from the crypto market to AI, altcoins have lost the speculative premium they gained in the 2021 bull market. The combination of these three factors has made this market cycle particularly difficult. However, the speculative premium has now faded, and capital flowing into the crypto industry is becoming increasingly scarce. It is believed that the market will gradually return to fundamentals.