Crypto Biz: Cantor Fitzgerald crypto play, ETF inflows highlight industry’s big sentiment shift

US President Donald Trump’s first 90 days in office have been miserable for Bitcoin (BTC) and the broader cryptocurrency industry. Despite positive regulatory developments, culminating in the first-ever White House crypto summit on March 7, digital asset prices have been dragged down by the currents of trade war and fear of recession.

However, crypto saw a huge sentiment shift this week amid reports that Trump was backing off on his full-scale tariff war against China. It also didn’t hurt that Trump’s media empire, Trump Media and Technology Group, inked a deal with Crypto.com for its forthcoming Made in America exchange-traded funds (ETFs).

This week’s Crypto Biz newsletter covers renewed inflows into Bitcoin ETFs, a potential crypto venture backed by Cantor Fitzgerald, and Coinbase’s possible pursuit of a federal banking charter. It wraps up with a look at Tesla’s decision to hold its Bitcoin position despite a disappointing earnings quarter.

Capital is flowing back into US spot Bitcoin ETFs, highlighting a positive sentiment shift among institutional investors. 

According to Glassnode data, the 11 spot Bitcoin ETFs registered $381.3 million in net inflows on April 21, with the ARK21Shares Bitcoin ETF accounting for nearly a third of the total. 

One day later, the 11 funds registered $912.7 million in net inflows, the largest since January when Bitcoin was trading at all-time highs. The ARK21Shares, Fidelity and BlackRock Bitcoin funds saw the largest inflows on April 22. 

As billions flowed back into Bitcoin ETFs, spot BTC prices climbed back to $94,000 on April 23, pushing the total cryptocurrency market cap close to the $3 trillion mark again.

Cantor Fitzgerald is reportedly in talks with Softbank, Tether and Bitfinex to establish a $3 billion crypto acquisition company called 21 Capital. 

According to an April 23 report by the Financial Times, the new company aims to capitalize on the favorable crypto environment in the United States following US President Donald Trump’s election. It also seeks to emulate the success of Strategy, the business intelligence firm turned Bitcoin bank that has amassed more than 534,000 BTC. 

The report suggested that stablecoin issuer Tether will contribute $1.5 billion to the new venture. Softbank is expected to add $900 million and Bitfinex another $600 million. 

21 Capital is reportedly eyeing another $350 million raise via convertible bonds alongside a $200 million private equity placement. The proceeds will reportedly be used to buy Bitcoin.

Coinbase is considering applying for a United States federal bank charter, potentially signaling the cryptocurrency exchange’s intention to move into traditional banking services.

A spokesperson for Coinbase confirmed to Cointelegraph that the exchange was considering this option, but did not elaborate on the reasons why.

“This is something Coinbase is actively considering but has not made any formal decisions yet,” the spokesperson said.

A US federal bank charter is significant because it allows licensees to perform core banking activities, including deposit taking and lending. For crypto exchanges like Coinbase, obtaining such a charter could represent a major step toward integrating traditional banking with digital assets.

Electric vehicle maker Tesla reported disappointing first-quarter earnings this week but opted to hold onto its Bitcoin investments, signaling that Elon Musk’s company still sees significant upside in digital asset prices.

Tesla’s net income plunged 71% in the first quarter, with revenue falling 9% and automotive sales down 20% year over year.

Tesla’s disappointing earnings highlight the folly of mixing business and politics, with the results partly attributed to Musk’s role in Trump’s White House.

Despite the earnings slump, Tesla held firm on its digital asset position, maintaining 11,509 BTC — unchanged since 2022. At current prices, that stake is valued at just under $1.1 billion.

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