Dragonfly Capital, a crypto venture capital firm, has closed its Fund IV at $650 million, to focus on DeFi, stablecoins and prediction markets, despite stagnant prices and a mildly down market.

Haseeb Qureshi, managing partner at Dragonfly Capital, announced in an X post today, Feb. 17, that Fund IV is the firm’s “biggest bet yet that the crypto revolution is still early in its exponential.” Qureshi added:

“If you look at our recent bets — Polymarket, Ethena, Rain, Mesh — the growth speaks for itself. Agentic payments, on-chain privacy, the tokenization of everything — crypto’s surface area is about to explode, and we want to be backing the founders at the center of it.”

Dragonfly Capital’s approach during market downturns is not new. The firm has raised capital during previous challenging periods, such as the 2018 ICO winter and prior to the Luna collapse, Qureshi added.

The firm’s first fund in 2018 closed at roughly $100 million during the ICO downturn, followed by a $225 million Fund II in 2021, and a $650 million Fund III in 2022 — overshooting an initial $500 million target — just before the market’s prolonged downturn.

This article was generated with the assistance of AI workflows.

BlackRock and Coinbase plan to take an 18% share of staking rewards from BlackRock’s proposed Ethereum staking exchange-traded fund, according to an updated regulatory filing.

The firms disclosed the fee structure in an amended S-1 filing with the U.S. Securities and Exchange Commission on Feb. 17. According to the filing, investors will receive 82% of gross staking rewards, with the fund sponsor and its execution partner receiving 18%. 

A sponsor fee that ranges from 0.12% to 0.25% of the investment value will be paid by shareholders each year in addition to the staking fee.

How the staking model will work

Under the proposed structure, most of the fund’s Ethereum (ETH) holdings will be used for staking. The filing says between 70% and 95% of assets may be staked under normal conditions, with the rest kept available for liquidity and redemptions.

Coinbase will act as the prime execution agent and custodian through its institutional services unit. The company may also pass part of its share to third-party validators and infrastructure providers involved in the staking process.

BlackRock has already seeded the trust with $100,000, equal to 4,000 shares priced at $25 each. The firm is also building its Ethereum position ahead of a potential launch.

Based on early 2026 network data, Ethereum staking yields have averaged close to 3% annually. After the 18% cut and other fees, the effective return for investors is expected to be lower, depending on market conditions and network participation.

Market reaction and centralization concerns

The fund is a yield-generating variant of BlackRock’s current Ethereum spot ETF, which has garnered significant institutional interest since its inception. After the success of its Bitcoin (BTC) and Ethereum products, the company has established itself as a significant player in digital asset ETFs over the last two years.

Nasdaq has already applied to list the staked, indicating growing support for regulated crypto yield products in traditional markets.

Some analysts say the structure could appeal to investors seeking exposure to blockchain rewards without managing wallets or validators. Others have questioned whether an 18% share of staking income is too high, especially as competition in the ETF space increases.

Concerns have also been raised about the concentration of influence. In the same week as BlackRock’s filing, Vitalik Buterin warned that growing Wall Street involvement in Ethereum could increase centralization risks over time.

Supporters argue that institutional products help bring liquidity and legitimacy to the market. Critics say they may shift too much control toward large financial firms.

Ether has not reclaimed the $2,500 level since late January, and traders are awaiting catalysts to spark a fresh run. The latest signals from institutions point to a shift in appetite: some of the industry’s biggest players are reallocating from BTC-centric exposure toward Ethereum-focused ETFs. Harvard’s endowment disclosed an $87 million stake in BlackRock’s iShares Ethereum Trust during Q4 2025, while trimming holdings in the iShares Bitcoin Trust. Separately, the market for real-world assets tokenized on Ethereum surpassed $20 billion in aggregate value, reflecting a growing blend of traditional finance with blockchain rails. With the bear market bottom noted around $1,744 on February 6, analysts are watching for decisive momentum that could sustain a rebound.

Key takeaways

• Institutional sentiment is shifting toward Ether as elite funds reallocate capital from Bitcoin to Ether ETFs.
• BlackRock’s Staked Ethereum ETF features a 0.25% expense ratio and an 18% retention of staking rewards as service fees to intermediaries, balancing incentives in the staking flow.
• Real-world asset tokenization on Ethereum has surpassed $20 billion in aggregate value, with broad participation from BlackRock, JPMorgan Chase, Fidelity and Franklin Templeton.
• Harvard’s SEC filings show an $87 million addition to BlackRock’s iShares Ethereum Trust during Q4 2025, alongside a reduction in its iShares Bitcoin Trust.
• Dragonfly Capital’s $650 million funding round signals sustained appetite for tokenized stocks and private credit offerings on-chain, reinforcing the momentum toward RWAs and custody infrastructure.

Tickers mentioned: (omitted as per guidance to avoid introducing tickers not clearly provided in the source)

Sentiment: Neutral

Price impact: Positive. The combination of renewed institutional interest and expanding RWA activity on Ethereum could support a constructive price bias for ETH over the medium term.

Trading idea (Not Financial Advice): Hold. The emerging mix of ETF activity and RWA infrastructure suggests potential for a delay-driven rebound, pending clearer price confirmations.

Market context: The ETH narrative sits at the intersection of regulated access to staking, continued ETF experimentation, and a broadening roster of on-chain real-world asset use cases. While spot flows have been modest in the near term, the participation of major asset managers in ETH-focused vehicles points to growing demand for regulated exposure and secure custody solutions within the crypto ecosystem. The sector remains sensitive to overall risk appetite, macro cues, and regulatory developments that could influence institutional allocations to crypto assets.

Why it matters

The trajectory for Ether as a mainstream financial instrument hinges on the alignment between traditional finance’s risk controls and the evolving capabilities of on-chain infrastructure. The ongoing expansion of RWAs on Ethereum demonstrates that large-scale capital is looking beyond pure speculative bets toward assets that can be tokenized, securitized, and traded within regulated frameworks. A 0.25% expense ratio on a Staked Ethereum ETF, paired with an 18% retention of staking rewards as fees, signals an industry attempt to balance competitive pricing with sustainable staking incentives. The underlying staking ecosystem—where custodians like Coinbase play a key role in facilitating services—highlights a path for institutions to access ETH staking without shouldering daily operational risk directly.

Moreover, the $20+ billion RWA market on Ethereum reflects a concerted effort to bring real assets onto the blockchain, blending gold, Treasuries and bonds with programmable settlement and liquidity access. The involvement of BlackRock, JPMorgan Chase, Fidelity and Franklin Templeton underscores how the line between traditional custody and digital asset infrastructure is blurring. In parallel, venture funding from players like Dragonfly Capital reinforces confidence in the long-run viability of tokenized stocks and private credit offerings, suggesting a maturation phase for the sector that could underpin sustained demand for ETH as a settlement and collateral layer.

Price catalysts remain tied to the broader risk environment. While a near-term move to $2,500 is discussed in market chatter, the path will likely depend on regulatory clarity, ETF inflows, and the pace at which RWAs scale from pilot projects to widely adopted products. The bear market bottom observed in early February may prove to be a reference point if new catalysts emerge, but investors will want to see consistent demand signals, improved liquidity, and clear governance for staking yield structures before committing meaningful capital.

What to watch next

• Regulatory milestones for ETH-focused ETFs and any SEC updates on product approvals or adjustments.
• Upcoming quarterly ETF flow data to gauge whether institutional inflows into Ether-based products accelerate.
• New RWAs issuances and partnerships on Ethereum, including any large-scale tokenizations of traditional assets.
• Price action around the $2,000–$2,500 zone and whether macro risk sentiment supports a durable breakout for ETH.

Sources & verification

• Harvard’s 2025 Q4 Form 13F filings showing an $87 million stake in BlackRock’s iShares Ethereum Trust and adjustments to its iShares Bitcoin Trust.
• MarketBeat data detailing changes in notable iShares Ethereum Trust holdings.
• DefiLlama data on the RWAs aggregate on Ethereum exceeding $20 billion in value.
• Dragonfly Capital’s $650 million fundraise focused on tokenized RWAs and related on-chain infrastructure.

Institutional bets build as ETH ETFs mature and RWAs expand

Ether (CRYPTO: ETH) has begun to demonstrate a degree of resilience that could be the prelude to a broader regime shift in active institutional exposure. The most meaningful signal to date is the combination of major asset managers embracing Ethereum-based products and the rapid expansion of real-world asset tokenization that sits atop the Ethereum chain. The Harvard disclosures, which show an $87 million addition to BlackRock’s iShares Ethereum Trust in Q4 2025, and a concurrent trimming of iShares Bitcoin Trust holdings, exemplify a nuanced preference for ETH-driven exposure over BTC-focused routes. This bifurcation in appetite suggests institutions are seeking regulated, scalable access to staking and on-chain liquidity, rather than relying solely on the volatility of the broader crypto market.

BlackRock’s Staked Ethereum ETF adds another dimension to the narrative. With a 0.25% expense ratio and an 18% retention of staking rewards as service fees, the vehicle aims to strike a pragmatic balance between cost efficiency and the revenue necessary to compensate the intermediaries that enable staking. The arrangement underscores a broader trend in the industry: in order to scale, staking products must align the incentives of custodians, exchanges, and fund managers with the long-term interests of investors seeking yield-bearing crypto exposure. Coinbase’s involvement as a staking service intermediary is cited as a notable practical factor in ensuring smooth on-ramp and on-chain execution for such portfolios.

Beyond the ETF mechanics, the size and scope of RWAs on Ethereum point to a maturation of the ecosystem. The aggregate RWAs on Ethereum now surpass $20 billion, a milestone that includes tokenized gold and a growing slice of US Treasuries, bonds, and money market funds. The involvement of major financial institutions—BlackRock, JPMorgan Chase, Fidelity, and Franklin Templeton—signals a coordinated push to bring more traditional assets under a tokenized, on-chain framework. When measured alongside other blockchain ecosystems, Ethereum’s RWAs stand out as a bridge between regulated finance and decentralized technologies, reinforcing the case for ETH as a robust platform for both settlement and collateral.

The venture funding environment is also shifting in this space. Dragonfly Capital’s recent $650 million round, aimed at real-world assets and tokenized financial instruments, illustrates persistent appetite from crypto-focused investors to back asset-backed models that operate in concert with established market infrastructure. In practice, this means more pilot programs, more credible custodial arrangements, and more sophisticated deals that link asset origination with tokenized issuance and on-chain trading. The result could be a multi-year trajectory in which RWAs contribute to sustained demand for ETH, even as the broader crypto market experiences sideways or choppy price action.

From a price perspective, the catalysts discussed—ETF inflows, deeper RWA adoption, and regulatory clarity—could provide the conditions for a rebound toward the $2,500 level noted in market discussions. The bear cycle that bottomed near $1,744 on February 6 has left a price floor that investors are watching closely, with the possibility of a renewed risk-on environment driving ETH higher as institutional confidence grows. While no single event guarantees a sustained rally, the confluence of regulated access, staking economics, and tangible on-chain assets tied to ETH strengthens the case for a constructive, though cautious, upside path in the medium term. The landscape suggests that the next phase of ETH’s price narrative will be driven less by frothy retail speculation and more by disciplined, asset-backed finance and regulated market access. Harvard’s stake in BlackRock’s ETH Trust and the evolving real-world asset framework remain central reference points as this story develops. For additional context on RWAs’ market dynamics, see Tokenized RWAs climb despite market rout, and for coverage of Dragonfly Capital’s funding round, visit Dragonfly’s $650M fund. The price-angle discussion around a potential move to $2,500 is also explored in ETH chart patterns and rally scenarios as noted in market analysis. Investors should monitor price action, ETF flow data, and regulatory developments to gauge how these structural shifts translate into tangible market movements.

The positive sentiment reflects strong and meaningful activity from the XRP community, despite the bears dominating the broader market.

The crypto market may be in a bear season now, but some assets are in the spotlight, thanks to their strong communities. One such cryptocurrency is XRP, the native asset of the XRP Ledger (XRPL), otherwise known as the Ripple Network.

Recent data from the asset management giant Grayscale ranked XRP as the second-most-discussed asset in the platform’s community, after bitcoin (BTC). This reflects strong and meaningful activity from the XRP community.

The Second Most Talked-About Asset

According to a voiceover from Grayscale’s Head of Product and Research, Rayhaneh Sharif-Askary, during the Ripple Community Day, XRP has a broad, vibrant community with “diehard fans.”

Grayscale advisors have reported that their clients are constantly asking about XRP. The asset is even considered the second-most discussed asset, behind BTC in some cases. Sharif-Askary revealed that a huge part of the excitement surrounding XRP is from persistent demand for products linked to the asset. Investors see the XRPL as a “battle-tested blockchain that has a real opportunity to capture market share” and are looking to tap into the ecosystem.

Additionally, the Grayscale product and research head believes the narrative and price sentiment surrounding XRP will change. The asset’s growth may have been delayed so far by lagging product-market fit and regulatory challenges. However, positive sentiment from the community is likely to change the narrative for the asset.

Bullish Predictions For XRP

Sharif-Askary’s remarks about positive community sentiment are echoed by weekly inflows into crypto investment products. CryptoPotato reported that most crypto funds just recorded a fourth consecutive week of outflows, but only products tied to assets like XRP saw positive flows.

Bitcoin and Ethereum have continued to lag in sentiment, with their investment products losing $133 million and $85 million, respectively, last week. XRP, on the other hand, attracted over $33.4 million, with relatively steady demand.

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Interestingly, analysts are making bullish price calls for XRP. Last weekend, XRP emerged as one of the top gainers in the market, rallying over 16%, amid predictions that the Ripple asset may have begun to decouple from other larger-cap cryptocurrencies. At the time of writing, data from CoinMarketCap showed XRP trading around $1.45, with a slight decline over the last 24 hours. Regardless of the downturn, market experts foresee a bullish breakout in the asset’s price trajectory over the coming weeks.

Bitwise Asset Management has filed with regulators to launch a new line of exchange-traded funds tied to political prediction markets, marking its latest push into alternative investment products.

The filing was disclosed by Bloomberg ETF analyst James Seyffart, who shared details on social media. According to the preliminary prospectus dated Feb. 17, the proposed funds would operate under the “PredictionShares” brand and remain subject to regulatory approval.

The document states that the offering is incomplete and that the securities cannot be sold until the registration statement becomes effective.

Election-focused contracts at the core

The filings outline several proposed ETFs linked to U.S. political outcomes. These include separate funds tracking whether Democrats or Republicans win the 2028 presidential election, as well as products tied to control of the House and Senate in the 2026 mid-term elections.

Trading platform eToro jumped more than 20% after reporting better-than-expected fourth-quarter earnings, with revenue coming mainly from its crypto services.

The company reported on Tuesday that its Q4 net income increased 16% from a year ago to $68.7 million, with earnings per share of 71 cents, compared with analyst expectations of 60 cents.

Fourth-quarter revenue came in at $3.87 billion, down 40% from the prior-year period, with crypto revenue accounting for the bulk of earnings at $3.59 billion.

The earnings beat bucked eToro’s main crypto rivals, Coinbase and Robinhood, whose Q4 earnings both missed expectations as their revenues took a hit amid a crypto market crash late last year.

Meanwhile, eToro’s full-year 2025 revenue rose more than 9% from 2024 to $13.84 billion, while its net income jumped 12% year-on-year to $215.7 million. Its full-year crypto revenue was $13 billion, up nearly 7% from 2024.

Shares climb on Q4 beat, CEO says it will catch crypto wave

Shares in eToro (ETOR) ended trading on Tuesday up 20.4% to $33.07 on the company’s earnings beat, making it one of the best-performing crypto stocks for the day. The stock fell slightly after-hours to $33.

EToro CEO Yoni Assia said it is “a pivotal moment for financial services” as artificial intelligence and the increasing use of blockchain infrastructure are “reshaping how people invest and interact with markets.”

“EToro is uniquely positioned to capture this opportunity,” he said. “We are positioning eToro for a financial system that is increasingly moving on-chain. With our long-standing leadership in crypto and tokenization, we are well placed to help shape this transition.”

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Assia told investors on an earnings call that eToro was seeing some of its crypto-focused customers “suddenly trading commodities” for the first time.

“There’s somewhat of a convergence or a shift from crypto, which now has lower volatility, to now basically gold, silver, and other commodities that have higher volatility,” he said.