Source: Cointelegraph Original: "{title}"

Bitcoin has had a historic year! Nearly 16 years after its debut on the Bitcoin network, the cryptocurrency's status as a mainstream financial tool was solidified with the approval of 11 exchange-traded funds (ETFs) in January.

The launch of ETFs, driven by institutional demand, marked one of the most successful debuts in history, attracting over $113.5 billion in funds by the end of the year. This influx of capital helped propel the price of Bitcoin (BTC) to a historic high of $100,000 in December, primarily supported by professional buyers.

The entire market was affected, with institutional investors driving growth in over-the-counter (OTC) trading. For example, the OTC market at Kraken exchange grew by 220% year-over-year. Tim Ogilvie, head of Kraken's institutional division, stated, "To make a long story short, OTC trading is doing very well right now."

Source: CoinGlass

By the end of 2024, the adoption of Bitcoin by institutions has extended beyond ETFs, with publicly traded companies also incorporating Bitcoin onto their balance sheets—an action that may prove to be both a good hedge strategy and a volatile investment.

Since 2020, MicroStrategy has been leading this practice, accumulating over 444,000 Bitcoins on its balance sheet. On December 23, the company submitted a proxy statement to the U.S. Securities and Exchange Commission seeking shareholder approval to expand its Bitcoin purchases before 2025.

Some may argue that Bitcoin has now strayed far from its core principles of decentralization, but its core ideology remains rooted in its network, operating independently and allowing individuals anywhere to store and transfer wealth.

This week's Crypto Biz also explored Crypto.com's new custody service, Russia's partial ban on cryptocurrency mining, and the U.S. tax implications of staking rewards.

MicroStrategy held a special shareholder meeting to gain approval for expanding its stock issuance plan and to fund further Bitcoin purchases. The company plans to increase its authorized shares of Class A common stock and preferred stock, making it more flexible in raising funds. This move is backed by MicroStrategy's "21/21 plan," which aims to raise funds through stock sales and fixed-income securities to purchase an additional $42 billion worth of Bitcoin over the next three years. As of December 24, MicroStrategy has purchased over 444,000 Bitcoins and plans to accelerate its buying pace. In 2024, the company's stock value surged by over 420%, primarily driven by its Bitcoin strategy.

Crypto.com launched an institutional cryptocurrency custody service in the U.S. as part of its expansion efforts. This service, named Crypto.com Custody Trust Company, aims to provide custody solutions for U.S. institutions and high-net-worth individuals. Digital assets held by clients in the U.S. and Canada will gradually transition to the new trust company. This move aligns with Crypto.com's goal to strengthen its business in North America (including the U.S. and Canada). In December, U.S. President-elect Donald Trump met with the company's CEO Kris Marszalek at Trump's Mar-a-Lago home to discuss cryptocurrency policy.

Russia has approved a ban on cryptocurrency mining in 10 regions for six years, starting from January 1, 2025, until March 2031. This decision includes parts of Dagestan, Chechnya, and Donetsk. Additionally, Irkutsk, Buryatia, and the Transbaikal region will implement seasonal restrictions to prevent energy shortages, particularly from November to March each year. These bans and restrictions aim to balance energy consumption with the development of the cryptocurrency industry, although major mining areas like Irkutsk will only implement partial restrictions rather than a full ban. These restrictions were refined from earlier proposals that included broader mining bans.

The IRS reiterated its position that cryptocurrency staking rewards should be taxed upon receipt, not upon sale, dismissing arguments in a second lawsuit brought by Joshua and Jessica Jarrett. The couple had sought to classify their staking rewards as property, asserting that taxes should only apply upon sale. However, the IRS maintains that rewards are considered taxable income based on their market value at the time of receipt. This case could set an important precedent for how the U.S. taxes staking rewards. This marks the continuation of the legal challenge raised by the Jarretts regarding the taxation of staking rewards received from Tezos tokens since 2021. Crypto Biz provides you with the pulse of the business behind blockchain and cryptocurrency, delivered directly to your inbox every Thursday.

免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。