Crypto Sentiment Is Down Bad. But Is It Time to Go All In?

Memecoins, misinformation, and misplaced pessimism—Jeff Dorman explains why crypto’s current sentiment doesn’t match reality and why he thinks now might be the perfect time to buy.

Crypto sentiment is extremely low, but is the market completely wrong? While X is flooded with doomsday takes, Jeff Dorman, CIO of Arca, argues that the real fundamentals of crypto are stronger than ever.

In this episode, Jeff breaks down why investors are overlooking key signals—like growing regulatory clarity, the tokenization of real-world assets, and institutional interest—and how memecoins have hijacked the broader market narrative. He pushes back on claims that there are no fresh narratives and explains why the current climate reminds him of previous market mispricings that turned into massive opportunities.

He also dives into the potential of tokenized assets, why crypto adoption is way ahead of where people think, and why he believes the industry keeps making the same mistakes when it comes to marketing its breakthroughs.

Listen to the episode on Apple Podcasts, Spotify, Pods, Fountain, Podcast Addict, Pocket Casts, Amazon Music, or on your favorite podcast platform.

Now, let’s get into this week’s news! In today’s edition:

• 📈 Ethereum ETF staking? Cboe moves to allow staking in the 21Shares ETH ETF, triggering a price rally.

• 🏛️ Trump’s crypto pivot—the administration ditches a formal crypto council for rotating industry summits.

• 💸 TRUMP memecoin liquidity crunch—Ripple and Galaxy Digital loan $160M to MoonPay as demand surges.

• ⚖️ Memecoins off the SEC’s radar? Hester Peirce suggests they might fall outside the agency’s jurisdiction.

• 📢 New CFTC chief incoming—Brian Quintenz, a pro-crypto pick, is set to take over the regulator.

• 📊 Solana and Cardano ETFs? Franklin Templeton and Grayscale push for new altcoin spot funds.

• 🔗 Uniswap launches Unichain—a new Layer 2 built on Optimism’s OP Stack to slash transaction costs.

• 📅 BitGo’s IPO plans—the crypto custody firm eyes a public listing after a $1.75B valuation.

• 💀 Central African Republic’s memecoin flops—the CAR token crashes 97% in two days.

• 🎁 OpenSea confirms SEA airdrop—a reward for longtime and active NFT traders.

• 🐶 CZ’s dog Broccoli takes over crypto—because why wouldn’t he?

Cboe Seeks SEC Approval for Staking in 21Shares Ethereum ETF

The 21Shares Core Ethereum ETF could become the first U.S. ETF permitted to stake its ether holdings if a Form 19b-4 filing made by the Cboe BZX Exchange to the U.S. Securities and Exchange Commission (SEC)  is approved. The filing, which was made this week, proposes a rule change that would allow staking in the fund.

According to the filing, staking would be conducted through a streamlined “point-and-click” method, aiming to minimize operational risks. Bloomberg ETF analyst James Seyffart noted the significance of the request, stating on X, “I believe this is the first ETF to file with the SEC and request the ability to permit staking.”

The announcement triggered an immediate 6% rally in ether’s price, pushing it to an intraday high of $2,782 on Wednesday. The SEC’s decision remains pending, with analysts speculating on a potentially more crypto-friendly regulatory approach under the new administration.

Trump Administration Rethinks Crypto Council, Eyes Industry Summits Instead

The Trump administration is reconsidering its plan to establish a formal crypto council, opting instead for a series of industry summits, according to sources who spoke with Unchained. The decision aims to prevent internal conflicts within the crypto sector by allowing a rotating selection of industry leaders to discuss key policy issues.

While details remain unclear, early summits are expected to focus on banking, payments, data centers, and Bitcoin mining. Sources also confirmed that trade associations have played a role in shaping these discussions.

Trump initially promised a “Presidential Council of Advisers for Digital Assets” in December, with David Sacks as chair and Bo Hines as executive director. However, Hines has reportedly been exploring alternative approaches in meetings with policymakers.

Reactions to the shift are mixed — some view it as a pragmatic way to gather expert insights, while others question whether the summits will have any real policy impact or merely serve Trump’s business interests.

Ripple, Galaxy Loan $160M to MoonPay to Sustain Trump Memecoin Surge

Ripple and Galaxy Digital stepped in with a $160 million loan to help MoonPay manage overwhelming liquidity demands following the TRUMP memecoin launch on Jan. 18. The sudden spike in trading activity pushed the token’s market capitalization from $200 million to over $10 billion in just 48 hours, but MoonPay faced a major hurdle — it couldn’t access its fiat reserves due to a holiday weekend.

MoonPay CEO Ivan Soto-Wright and president Keith Grossman first secured $100 million from Galaxy Digital, with Mike Novogratz personally overseeing the deal. As demand surged further, Ripple CEO Brad Garlinghouse provided an additional $60 million, ensuring MoonPay could continue operating.

The memecoin craze also led to the launch of Melania Trump’s MELANIA token, further straining MoonPay’s liquidity. The company successfully repaid the loans on Jan. 21, after onboarding 750,000 new users during the frenzy.

SEC’s Hester Peirce Says Memecoins Likely Fall Outside Agency’s Jurisdiction

Hester Peirce, head of the U.S. Securities and Exchange Commission’s (SEC) crypto task force, said in a Bloomberg Crypto interview that many memecoins may not fall under the SEC’s regulatory authority. Peirce explained that while each case would be evaluated individually, “many of the memecoins that are out there probably do not have a home in the SEC, under our current set of regulations.”

Peirce suggested that Congress or the Commodity Futures Trading Commission (CFTC) might take on the task of defining regulatory guidelines for memecoins. The statement comes amid growing concerns over the high volatility of tokens such as TRUMP and MELANIA, both of which saw massive surges before crashing over 79% and 89%, respectively.

As the SEC awaits the confirmation of a new chair, Peirce also remarked that formal rule-making on broader crypto regulation could be “a little premature” at this stage.

Brian Quintenz Tapped to Lead CFTC

Brian Quintenz, a former CFTC commissioner and current head of policy at a16z crypto, has been nominated by President Donald Trump to lead the CFTC, according to a White House document viewed by Unchained. His appointment could significantly shape the regulatory landscape for crypto markets, as lawmakers push to expand the CFTC’s jurisdiction over digital assets.

Quintenz, who served at the CFTC from 2017 to 2021, has been a vocal supporter of decentralized finance (DeFi) and industry-led regulatory frameworks. “Brian has a long track record of supporting DeFi and advocating for sound policies that will enable DeFi developers and users to thrive,” said Miller Whitehouse-Levine, CEO of the DeFi Education Fund.

His nomination comes as Congress considers market structure legislation that could shift regulatory authority from the SEC to the CFTC, a move supported by pro-crypto lawmakers and industry leaders aiming for clearer oversight in the U.S.

Franklin Templeton and Grayscale Push for Altcoin Spot ETFs

Franklin Templeton has officially entered the Solana ETF race, registering its Franklin Solana Trust in Delaware on Feb. 10. The firm joins a growing list of asset managers — including Grayscale, Canary Capital, Bitwise, VanEck, and 21Shares — seeking regulatory approval for spot Solana exchange-traded funds (ETFs).

Meanwhile, Grayscale Investments has filed a 19b-4 submission with the U.S. SEC for a spot Cardano ETF under the ticker GADA. If approved, it would be the first U.S. ETF providing direct exposure to Cardano (ADA).

Bloomberg ETF analysts James Seyffart and Eric Balchunas have increased approval odds for several crypto ETFs following SEC leadership changes, now estimating a 70% chance for Solana ETFs and a 75% chance for Dogecoin ETFs.

Also, Franklin Templeton is expanding its $594 million money market fund to Solana.

Uniswap Launches Unichain

Uniswap Labs has officially launched the Unichain mainnet, a layer 2 blockchain built on Ethereum, designed to enhance DeFi transaction speed and reduce costs. The network is built using Optimism’s OP Stack, making it part of the growing Optimism Superchain ecosystem.

Unichain aims to cut gas fees by 95% compared to Ethereum’s mainnet while offering block times of one second, with future upgrades targeting 250-millisecond speeds. 

BitGo Reportedly Considering IPO in 2025

BitGo, one of the leading institutional crypto custody firms, is reportedly exploring an initial public offering (IPO) as soon as the second half of 2025, according to Bloomberg. The Palo Alto-based company is said to be in discussions with potential advisers, though no final decisions have been made.

Founded in 2013, BitGo provides custody, trading, borrowing, and lending services for digital assets, serving over 1,500 institutional clients across 50 countries. The firm processes around 8% of all global bitcoin transactions by value, according to its website

BitGo’s last funding round in 2023 raised $100 million, valuing the company at $1.75 billion, with backers including Goldman Sachs, DRW Holdings, Redpoint Ventures, and Valor Equity Partners. If the IPO proceeds, BitGo would join other crypto firms, such as Gemini, Kraken, and Circle, in seeking public listings amid a more favorable U.S. regulatory environment under the current administration.

Central African Republic’s Memecoin Launch Sparks Skepticism

The Central African Republic (CAR) launched its own memecoin, CAR, on Feb. 10, with President Faustin-Archange Touadéra announcing the project on X. He described it as an “experiment” meant to unite people and raise the country’s global profile. The token debuted on Solana-based launchpad Pump.fun, following CAR’s prior embrace of bitcoin as legal tender.

However, the launch was quickly met with questions over its authenticity. A deepfake AI detector flagged Touadéra’s video announcement as suspicious, and the token’s official X account was suspended. The President later stated that the government was working with X to restore the account and emphasized that the token’s supply was locked using Streamflow’s infrastructure.

Despite early momentum, CAR’s price plummeted nearly 97% within 72 hours, falling from $0.89 to $0.024, according to DEX Screener.

OpenSea Confirms SEA Token Airdrop

NFT marketplace OpenSea has launched OS2, a revamped trading platform that integrates NFT and token trading while supporting 14 new blockchains, including Ethereum layer 2s such as Sony’s Soneium and Bored Ape’s Apechain. The update is part of OpenSea’s efforts to reclaim market dominance after facing stiff competition from platforms like Blur.

As part of the upgrade, OpenSea confirmed an upcoming SEA token airdrop, with allocations based on historical platform usage rather than recent activity. U.S. users will be eligible, though specific distribution details and timing remain undisclosed.

OS2 will introduce reduced marketplace fees, meaning OpenSea’s cut will be slashed to 0.5%, and it will also enable cross-chain purchases. 

Fun Bits: CZ’s Dog Broccoli Becomes Crypto’s Newest Superstar

Move over Dogecoin, there’s a new top dog in town, literally. Binance founder Changpeng “CZ” Zhao has set the crypto world on fire by revealing the name and face of his pet Belgian Malinois: Broccoli. Yes, Broccoli.

In a heartwarming post on X, CZ recounted how he unexpectedly received the dog from a zoo-owning friend and picked the name because it starts with a “B” and has some green in it (sounds familiar, right?). He even joked that it has a “blocky” sound because even CZ’s dog can’t escape crypto references.

Naturally, the memecoin frenzy erupted instantly, with traders racing to launch Broccoli-themed tokens on BNB Chain. While CZ insists he’s not launching a coin, he hinted at the BNB Foundation rewarding the best Broccoli memes.

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