Kvants Insights Newsletter: March 2025
This week, Katie Haun is back, targeting $1B in new crypto venture funds amid renewed market optimism, while Strategy (formerly MicroStrategy) and Atai Life Sciences double down on Bitcoin treasury strategies. On the regulatory front, Australia unveils a progressive digital asset framework, the UAE and U.S. deepen crypto-AI collaboration, and Trump reaffirms support for stablecoins. Meanwhile, Kraken expands into futures via a $1.5B NinjaTrader acquisition, Dubai launches a real estate tokenization pilot, and the Fed holds rates, leaving markets in limbo. Notably, the U.S. Treasury removed Tornado Cash from its sanctions list following a court ruling, South Korea prepares to sanction non-compliant exchanges, and DeFi security remains in focus after Zoth’s second exploit. As Bitcoin traders shift toward options and XRP futures prepare for U.S. debut, regulatory clarity and institutional signals continue to drive market structure evolution.
Exclusive: Crypto VC giant Haun Ventures raising $1 billion for two new funds amid Trump-driven blockchain boom
Katie Haun is reportedly returning to the fundraising trail, aiming to secure $1 billion for two new crypto-focused investment funds, according to sources familiar with the matter. Her firm, Haun Ventures, is expected to finalize the fundraising by June. A spokesperson for the firm declined to provide a comment. Haun made headlines in 2022 when she launched her venture firm at the peak of the previous crypto bull cycle, raising $1.5 billion — a record-breaking debut for a first-time female venture capitalist. That raise placed her among the ranks of major crypto investment firms such as Andreessen Horowitz’s crypto division, Polychain Capital, and Paradigm. The capital was split between a $500 million early-stage fund and a $1 billion fund for more mature projects. Haun Ventures has since backed several high-profile companies, including stablecoin issuer Bridge and NFT platform Zora. Link
Importance
Importance Katie Haun’s return to fundraising signals renewed confidence in the long-term potential of the crypto and Web3 sectors, even amid a more cautious venture capital environment. Her ability to target $1 billion—following a record-setting debut—demonstrates continued institutional appetite for blockchain-native innovation. If successful, the raise could re-energize funding pipelines for both early- and late-stage crypto projects and further solidify Haun Ventures as a key player in shaping the next wave of digital asset infrastructure and applications.
Strategy Raises $711M to Buy More Bitcoin
MicroStrategy, now operating under the streamlined brand name “Strategy,” has successfully raised $711 million through an upsized perpetual preferred stock offering. The capital will likely be deployed toward additional Bitcoin purchases, continuing the firm’s long-standing thesis of BTC as a superior long-term store of value. Strategy has become synonymous with institutional Bitcoin accumulation, famously holding the largest corporate BTC treasury in the world. The upsizing of this latest offering signals strong investor interest and confidence in the company’s approach. Link
Importance
Strategy’s aggressive capital raise and commitment to expanding its Bitcoin holdings is more than just a balance sheet play—it sends a powerful signal to both institutional investors and the broader corporate sector. As Bitcoin approaches its next halving and issuance drops further, fresh demand from a major player could tighten supply dynamics even more dramatically. This development also lends credibility to the corporate Bitcoin treasury model, which was once viewed as fringe but is increasingly seen as a viable hedge against inflation, currency debasement, and market instability. If more publicly traded firms follow suit, Bitcoin may become a standard allocation in treasury management strategy, much like gold once was. In a world of diminishing trust in fiat systems, Strategy is positioning itself as a first mover in adopting what could become the next generation of reserve assets.
Atai Life Sciences Adds Bitcoin to Corporate Treasury Atai Life Sciences, a Nasdaq-listed German biopharmaceutical firm, has joined the ranks of publicly traded companies adopting a Bitcoin treasury strategy. The company cited long-term asset diversification and protection against currency debasement as key drivers. This marks another significant move toward the mainstream adoption of Bitcoin as a corporate reserve asset. Atai’s decision illustrates how Bitcoin is increasingly viewed not just as a speculative asset, but as a strategic balance sheet tool—even in traditionally risk-averse sectors like biotech. Link
Importance
The entry of non-tech, non-financial companies like Atai into the Bitcoin treasury ecosystem broadens the institutional thesis. It reflects growing corporate awareness of Bitcoin’s asymmetric risk/reward profile and could catalyze further adoption across diverse industries. As more companies outside the crypto-native world embrace Bitcoin, it adds legitimacy to its role in long-term capital preservation and may pressure traditional CFOs to consider digital assets in treasury planning.
Zoth Hit by Second Hack, Loses $8.85M Ethereum-based DeFi platform Zoth suffered a second exploit in under a month, with $8.85 million lost in what appears to be a private key compromise. Zoth, which focuses on tokenizing real-world assets, has now become a case study in the challenges of DeFi security, particularly around key management and protocol-level risk. The incident not only highlights persistent vulnerabilities in DeFi infrastructure but also raises questions about operational maturity in platforms aiming to bridge traditional finance and blockchain. Link
Importance
Repeated hacks within short timeframes significantly damage user trust and slow institutional adoption of DeFi protocols. Zoth’s exploit underscores the urgent need for robust security audits, decentralized key custody, and automated fail-safes in real-world asset tokenization platforms. Without stronger safeguards and transparency standards, platforms in the RWA space may struggle to gain regulatory approval or attract long-term institutional capital.
Bithumb Raided by South Korean Prosecutors Crypto exchange Bithumb has been raided by South Korean authorities over embezzlement allegations tied to its senior leadership. This is not the first time the exchange has faced legal scrutiny, and it raises fresh concerns about corporate governance in some of Asia’s largest trading platforms. The investigation reportedly involves high-ranking executives and questions around internal fund mismanagement, adding pressure on Bithumb’s already fragile reputation. With South Korea being one of the most active crypto markets in the world, such incidents could prompt tighter domestic regulatory reforms and increased oversight across the region. Link
Importance
Regulatory pressure on centralized exchanges continues to escalate, and events like these reinforce the need for transparency, audited operations, and proper risk controls. It also strengthens the case for decentralized infrastructure as a safer, trustless alternative. As users and institutional investors seek safer venues, the appeal of non-custodial trading platforms is likely to grow. Bithumb’s situation serves as a reminder that governance failures remain a critical risk vector in the centralized exchange model.
Bitcoin Traders Rotate to Options; Ether Sentiment Lags Following Fed Chair Jerome Powell’s recent “transitory inflation” remark, Bitcoin traders have rotated into topside options, betting on macro-driven price upside in the near term. The options market saw a spike in open interest for bullish BTC contracts, suggesting a renewed appetite for asymmetric upside exposure. Meanwhile, Ether continues to lag in sentiment, with a muted response in options activity and limited directional conviction among traders. This divergence suggests market participants are increasingly viewing Bitcoin as a macro asset while treating Ether more cautiously amid evolving narratives around its utility and regulatory treatment. Link
Importance
The divergence in trader sentiment reflects differing narratives around Bitcoin as a macro hedge and Ether as a technology platform. It also highlights the growing sophistication of market participants using options to hedge macro uncertainty and capitalize on volatility. As derivatives volume grows, these positioning shifts offer critical insights into institutional risk appetite. Understanding these flows is essential for forecasting near-term price dynamics and broader capital rotation within the digital asset ecosystem.
Kraken Acquires NinjaTrader for $1.5B to Expand Derivatives Push
Kraken has acquired futures trading platform NinjaTrader for $1.5 billion in a bold expansion of its derivatives capabilities. The deal gives Kraken access to NinjaTrader’s substantial retail and institutional user base, enhancing its ability to offer advanced futures and options products across both traditional and digital markets. This move positions Kraken to compete more directly with established players like Binance, CME Group, and Coinbase in the rapidly growing crypto derivatives space. It also reflects the exchange’s ambition to integrate legacy finance infrastructure with crypto-native tools in a regulated environment. Link
Importance
As crypto derivatives become a dominant market segment, this acquisition strengthens Kraken’s strategic position and highlights the convergence of traditional and digital trading infrastructure. It also reflects rising institutional demand for regulated access to futures and options. By acquiring a platform already embedded in legacy markets, Kraken accelerates its multi-asset strategy and bridges a crucial gap for traditional traders entering crypto. The deal signals that the future of trading lies at the intersection of both worlds, with exchanges competing on depth, compliance, and product diversity.
Australia Sets Sights on Global Digital Asset Leadership
The Australian government has introduced a plan to establish a “fit for purpose” digital asset framework designed to promote innovation while safeguarding consumers. The initiative includes clearer licensing requirements, custody rules, and compliance structures aimed at strengthening trust in the local ecosystem. With this move, Australia positions itself as a regulatory leader in the Asia-Pacific region, signaling its intent to attract blockchain companies and capital. Link
Importance
As jurisdictions race to define digital asset policies, Australia’s framework could serve as a model for balancing innovation with regulation. This makes it an attractive destination for builders, investors, and institutional capital, potentially reshaping regional market flows and global competitive dynamics. By setting clear rules early, Australia may gain a first-mover advantage in capturing emerging Web3 infrastructure and talent across the region. It also sends a strong signal to global regulators that progressive, innovation-friendly approaches can coexist with robust consumer protections, setting a new benchmark for how governments can responsibly integrate digital assets into their economies.
UAE and US Officials Meet to Discuss Crypto and AI David Sacks, the White House’s new crypto and AI czar, held a strategic meeting with UAE National Security Advisor Sheikh Tahnoon Bin Zayed. The discussion focused on the evolving role of digital assets and artificial intelligence in shaping the next era of global infrastructure and finance. The engagement signals rising geopolitical alignment on crypto policy between Washington and the Gulf region. It also reflects the growing influence of the UAE as a key player in global digital asset strategy, bridging Western and Eastern regulatory dialogues. Link
Importance
These discussions hint at increasing coordination between major global powers on crypto frameworks and AI innovation. As sovereigns explore collaborative strategies, it could lead to harmonized regulations, cross-border infrastructure, and even shared investment in Web3 technologies. This level of diplomatic engagement also signals that digital assets are no longer just a financial innovation—they are becoming instruments of national policy and international influence.
Trump Reaffirms Support for Crypto and Stablecoins President Trump reiterated his support for crypto adoption and stablecoin legislation, emphasizing its importance in bolstering U.S. dollar dominance globally. He also referenced the crypto-friendly stance of his previous administration, indicating that future regulatory clarity and growth-friendly policies may remain a priority. This public endorsement places digital assets squarely on the national policy agenda, at a time when the U.S. is competing with other jurisdictions for crypto leadership. It also reinforces the idea that digital dollars, through regulated stablecoins, could serve as a strategic counterweight to other central bank digital currencies (CBDCs) on the global stage. Link
Importance
Political backing from high-level U.S. leadership could fast-track regulatory frameworks for stablecoins and digital asset markets. Trump’s renewed support may also influence voter sentiment and accelerate institutional capital flows, especially into U.S.-compliant crypto instruments. A clear and supportive regulatory environment would give firms the confidence to launch new products, expand operations, and onboard mainstream users. Moreover, aligning crypto policy with national strategic interests could signal a longer-term integration of blockchain into U.S. financial infrastructure.
Bitnomial to Launch First US XRP Futures, Drops SEC Suit Bitnomial, a U.S.-based derivatives exchange, has announced plans to launch the country’s first XRP futures product while simultaneously dropping its lawsuit against the SEC. This suggests improved relations with regulators and could help expand access to regulated crypto derivatives in the United States. The decision to pursue XRP-based instruments also reflects renewed market confidence following Ripple’s partial legal victories. Bitnomial’s move may set a precedent for other platforms seeking to diversify beyond BTC and ETH derivatives within a compliant framework.
Importance
The development opens the door to more institutional-grade products involving altcoins, not just Bitcoin and Ether. It also marks a potential de-escalation of conflict between crypto platforms and U.S. regulators — a positive signal for future market structure. Broader access to compliant derivatives could improve market liquidity, hedging tools, and investor participation. Moreover, it reinforces the idea that regulatory engagement, rather than confrontation, is becoming the preferred path for innovation in U.S. crypto markets.
Dubai Launches Real Estate Tokenization Pilot The Dubai Land Department has initiated a pilot project to tokenize real estate assets, aiming to migrate property transactions onto blockchain infrastructure. This move is part of a broader government strategy to establish Dubai as a global center for real-world asset (RWA) tokenization, combining legal innovation with cutting-edge technology. The project will test how blockchain can streamline property ownership transfers, reduce paperwork, and enable fractional ownership. It reflects Dubai’s commitment to integrating blockchain into critical sectors of the economy beyond financial services. Link
Importance
The integration of blockchain into real estate is a major step toward institutional-grade tokenization of traditionally illiquid assets. Dubai’s early leadership in this space may attract capital and talent while setting global standards for property rights on-chain. If successful, it could serve as a blueprint for other jurisdictions exploring asset tokenization and provide a trusted model for regulatory and technical implementation. This also reinforces Dubai's broader ambition to lead in Web3 and digital asset innovation.
Federal Reserve Holds Rates Amid Economic Uncertainty The U.S. Federal Reserve opted to keep interest rates unchanged this week, citing persistent economic uncertainty and mixed inflation indicators. Markets had been anticipating some form of policy signal, but the Fed maintained its cautious stance, avoiding commitment to either further tightening or near-term easing. This ambiguity has left investors in a state of strategic hesitation, particularly in risk-on markets like crypto. The central bank’s decision reflects its balancing act between cooling inflation and preserving fragile economic momentum. Link
Importance
Rate policy continues to shape crypto market direction, particularly as liquidity-sensitive assets like Bitcoin remain tied to macro expectations. A prolonged hold could support risk assets, while further tightening may reintroduce downside volatility. The Fed’s indecision leaves digital asset investors with limited visibility on funding conditions, increasing the importance of macro hedging strategies. Until clarity emerges, crypto markets may remain choppy and driven by short-term sentiment shifts around interest rate narratives.
Tornado mixer dropped from US blacklist
The U.S. Treasury Department has officially removed cryptocurrency mixer Tornado Cash from its sanctions list, as announced on March 21. This decision comes in the wake of a January ruling by a U.S. appeals court, which found that the Treasury’s Office of Foreign Assets Control (OFAC) lacked the authority to impose sanctions on Tornado Cash’s smart contracts. The court concluded that the smart contracts are autonomous pieces of software code and do not constitute property owned by any foreign individual or entity. As such, OFAC’s designation was deemed to exceed the legal boundaries of its authority. Link
Importance
The removal of Tornado Cash from the U.S. sanctions list marks a significant precedent for how decentralized protocols and smart contracts are treated under existing legal frameworks. It reinforces the legal distinction between autonomous code and entities controlled by individuals, potentially limiting regulatory overreach in future cases. This decision could provide greater legal clarity for developers building privacy tools and decentralized applications, while also reigniting debates around privacy, censorship resistance, and the role of government in regulating open-source software.
South Korea to block non-compliant crypto exchanges
South Korean regulators are reportedly investigating cryptocurrency exchanges that may have been operating without proper authorization from the country's financial authorities. According to a March 21 report by local outlet Hankyung, the Financial Intelligence Unit (FIU), under the Financial Services Commission, is weighing potential enforcement actions against platforms that failed to register as virtual asset service providers, as required by national regulations. Link
Importance
The potential crackdown by South Korean regulators highlights the growing emphasis on compliance and oversight in one of Asia’s most active crypto markets. If enforcement actions proceed, it could lead to increased scrutiny of both domestic and international exchanges serving Korean users. This move underscores the importance of regulatory alignment for platforms operating across borders and may prompt other jurisdictions to take similar steps in tightening oversight of unregistered crypto services.