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Media

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July 3rd, 2025

U.S.–China Tech Thaw Spurs Rally – Why Adoption Momentum Justifies Increased Exposure

Key Takeaways:

  • U.S.–China deal signals renewed tech cooperation
  • Institutional and corporate crypto adoption accelerates
  • Market rallies strongly on macro and ETF tailwinds

The U.S. and China reached a breakthrough in trade negotiations as the Trump administration facilitated chip exports in exchange for easier access to rare-earth minerals. This easing of trade tensions is seen as a major bullish driver for global growth, lifting the Nasdaq by 1% and spilling over into digital assets.

Adoption momentum is showing signs of a snowball effect in corporate and institutional adoption:

  • Chinese firm Addentax signed a $1.3B term sheet to acquire 12,000 BTC through a stock-for-crypto deal, joining the list of public Bitcoin treasury firms.
  • The first Solana staking ETF launched yesterday—not a spot product, but still a major step forward for Solana exposure in regulated markets.
  • A spot Solana ETF could follow by end-2025, further legitimizing the asset.

ETF flows reflect strong demand:

  • Bitcoin ETFs: +$408M inflows, fully reversing Tuesday’s outflows
  • Ethereum ETFs: –$2M outflows, a minor drop following recent gains
  • Solana ETF: ~+$12M inflows on day one—a strong debut relative to market cap

Markets reacted very positively to these developments:

  • Global market cap: ↑ 3% to $3.38T
  • Bitcoin: ↑ 2.4% to $109,300
  • Ethereum: ↑ 6% to $2,593
  • Solana: ↑ 4% to $155

The combination of easing geopolitical tensions, surging institutional adoption, and ETF innovation provides a strong foundation for another leg higher. If today's U.S. employment report comes in weaker than expected, it could bolster rate cut expectations and amplify bullish momentum. We are increasing exposure accordingly and tilting further toward altcoins, which are well-positioned to outperform in this phase.

Positioning:

  • Cash: 10% – Minimal dry powder reserved for volatility
  • BTC: 72% – Core anchor; strong institutional accumulation trend
  • ETH: 10% – Increasing again as breakout momentum builds
  • SOL: 8% – Overweight; benefitting from ETF narrative and strong catch-up potential
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