The Crypto Structural Act is about to pass, and the industry is entering a new phase, but the market is still waiting for validation.

Policy Favorability is Gradually Taking Effect

On January 25th, Liquid Capital founder Yi Lihua stated that crypto-friendly policies are gradually being implemented, with the crypto structure bill likely to pass, marking a milestone for the industry. In his view, this means the crypto industry has exited the previously severely hindered phase and is officially entering a macro environment conducive to healthy development. At the same time, it clears obstacles for large-scale participation of US financial institutions in crypto finance construction, and the crypto industry is expected to fully integrate into the mainstream financial system.

The Practical Significance of Policy Shift

Three Major Changes at Different Levels

According to Yi Lihua, the passage of the crypto structure bill will bring three key changes:

• Startup Ecosystem Restart: A large number of excellent founders and high-quality projects will emerge, representing an opportunity window after the industry’s most difficult four years.
• Accelerated Institutional Participation: The large-scale entry of US financial institutions will bring more capital and compliance support to crypto finance.
• Integration into Mainstream Finance: The crypto industry will no longer be a marginal asset but will become part of the mainstream financial system.

The Contrast Between Policy and Market Reality

Interestingly, this policy favorable environment contrasts with current market performance. According to the latest data, as of January 24th, Bitcoin ETFs experienced net outflows of $103.5 million, Ethereum ETFs net outflows of $41.7 million, and both asset classes have experienced net outflows for four consecutive trading days. This indicates that although the policy environment is positive, market participants are still observing and engaging in strategic hesitation.

Core Opportunities in the Ecosystem

The Golden Era of Stablecoins and Asset Tokenization

Yi Lihua emphasizes that the globalization of stablecoins and on-chain finance are the biggest landing application opportunities for crypto. According to BlackRock’s 2026 thematic outlook report, about 65% of tokenized assets are currently deployed on the Ethereum network, making ETH the biggest beneficiary in this cycle.

He revealed that Liquid Capital is actively participating in this opportunity, not only continuously buying ETH but also heavily investing in related projects like WLFI. According to the latest disclosures, Yi Lihua’s ETH holdings amount to 636,717.65 ETH, with an average cost of $3,105. Although facing an unrealized loss of approximately $80 million, this reflects his confidence in the long-term prospects.

Why ETH?

• The primary network for asset tokenization (65% of tokenized assets)
• The most complete stablecoin ecosystem
• The biggest beneficiary of on-chain US debt financial services
• Usually outperforms BTC in historical bull markets

Divergence Among Market Participants

It is important to note that there is a clear divergence in the market. On one hand, major players like Yi Lihua are buying on dips; on the other hand, some institutions are reducing their holdings. On January 23rd, a large trader redeemed 6,300 ETH from Renzo and deposited it into Coinbase, worth $18.63 million, suspected to be for selling. This indicates that even under the expectation of policy benefits, there are significant differences in short-term market outlooks among participants.

Summary

The passage of the crypto structure bill indeed marks a major turning point in policy, creating a foundational institutional environment for the industry’s long-term development. Globalization of stablecoins and asset tokenization, as the most promising applications for real-world implementation, are expected to unleash enormous potential in the upcoming cycle. ETH, as the main network for these applications, holds a clear advantage.

However, from current market performance, policy benefits still require time to translate into market consensus. The continued outflow from ETFs reminds us that most participants are still observing, and the true opportunities may only be unlocked with further substantive progress. The key is to distinguish between the long-term value of policy opportunities and short-term market fluctuations, rather than being swayed by temporary emotions.