Loyal TRU Capitalists,
Hello and welcome to another edition of the TRU Capital newsletter.
January 2025 has seen a flurry of news and action in the digital asset space. Change and progress are coming at an ever-increasing speed. Amid all this chaos lies opportunity. The task now is to separate the signal from the noise.
As a reminder we'll be speaking and attending the Family Office Digital Asset Forum Event from February 3rd-6th! If you're in Tampa and Saint Pete
We will be sending a recap post event, and as always if you'd like to invest along side us click the button below to book a time with our team.
Now with that said, let's lock in.
Donald Trump was inaugurated as the 47th President of The United States of America. Just days before he was sworn in, he launched two memcoins within hours of each other.
and $MELANIA.
The launch raised billions in capital and onboarded an estimated 400,000 first-time participants to crypto. Others are expected to follow suit and launch their own tokens. Dave Portnoy of Barstool has already publicly discussed doing so.
While the meme coin space is overheated, this could signal a trend change in capital markets and capital formation. Donald Trump increased his net worth by billions with a single tweet while he was at a celebration dinner. The market has taken notice. Things will change. We could see entities and content creators of all kinds launch their own tokens: McDonald's Token, Harvard University Token, Squawk Box Token, Taylor Swift Coin, etc.
ETF FILINGS
With the expectation of a crypto-friendly administration, the number of spot ETF and ETP applications in the US has increased. Right now, the two assets getting the most attention are XRP and Solana.
We anticipate approval for these in time but would remind investors that approval of a product does not equate to demand. Keep an eye on how this plays out and what investors actually end up buying.
World Liberty Financial
It's also worth noting that the self-styled "First Crypto President" also has his own DeFi project on Ethereum. World Liberty Financial has been aggressively accumulating digital assets throughout January, notably buying $47M of Bitcoin and $47M of ETH on the day of his inauguration among other purchases.
This is a clear signal that Trump is personally committed to making America the world leader in crypto and digital assets.
Regulatory Clarity President Trump signed an executive order calling for a working group to create a framework for digital assets in the United States. He has appointed David Sachs his administration's Crypto and AI Czar. The working group will include the Treasury Secretary as well as chairs of the SEC, CFTC, and other chief regulators.
Acting SEC Chair and Commissioner Hester Peirce have also announced that they are leading an new task force to overhaul the SEC's treatment of crypto and digital assets.
Trump has also repealed SAB 121 which will allow Banks to begin to move toward offering custodial services for digital assets. This will lead to people being able to borrow against their assets instead of being forced to sell them.
Strategic Digital Asset Stockpile
Wyoming Senator Cynthia Lummis has been pushing a bill for the US to buy 1m Bitcoin over four years. Trump's Executive Order on crypto mentioned developing a "strategic digital asset stockpile" which could include Bitcoin and other assets being held by the US Treasury.
So far, fourteen states in the US have introduced some kind of legislation to explore a strategic Bitcoin reserve with as many as twenty states expected to pursue this in the near future. Arizona has already moved their bill out of committee and could soon bring it to the floor for a vote.
AI Agents
Enough about policy, January has also seen an explosion of degen interest in the intersection between AI Agents and digital assets. Virtuals Protocol, aI16z, AIXBT, ZEREBRO, and more.
As this technology continues to evolve and mature we anticipate increased investment and attention on this sector of the market which will lead to its expansion and rapid growth over the course of 2025 and beyond.
Pay attention and get educated. There is a lot of noise right now but this is evolving fast even by crypto standards and it is going to get big and stay big.
FED Continues Quantitative Tightening
The Bank of Canda has announced an end to Quantitative Tightening, meaning they will be turning on their money printers. The Bank of China is expected to rush out a stimulus of an estimated $140B to try to jumpstart their economy like an EMT with a defibrilator.
Jerome Powell, Trad Fi's biggest goombah and Chairman of the Federal Reserve, decided to hold rates constant and continue Quantitative Tightening by allowing bonds to roll off of the Fed's balance sheet. We expect global liquidity conditions and restrictive monetary policy to reach the limits of their sustainability in the first half of this year, and then, may God bless Jerome's Almighty Money Printer.
MicroStrategy's
The great Gigachad Michael Saylor has found yet another way to weaponize Wall Street against itself to continue turning economic value into Bitcoin. MicroStrategy announced plans to begin offering a preferred stock called
with an 8% yield to diversify its funding sources and bring in a new group of investors.
This new product
is part of the 21/21 plan to raise $42B to buy Bitcoin. It is aimed at attracting volatility-averse capital in the market for exposure to Bitcoin while keeping the interest costs to Microstrategy manageable and offers a safety valve through a share conversion option.
Microstrategy is essentially behaving like an investment bank for Bitcoin now and if you're at all interested in finance it's worth reading Microstrategy's entire 21/21 plan. Also, they have been announcing more Bitcoin purchases every Monday morning like a clock for weeks but that's BAU at this point.
WEN ALT SEASON
We forecast a bottoming of global liquidity to take place in early 2025 for this cycle, followed by a rush of liquidity being injected from central banks around the world. The US Treasury Secretary and The Chairman of The Fed will be forced to adopt a more accomodative monetary policy and create circumstances to weaken the dollar against other central bank fiat currencies in order to maintain global economic stability and growth. This will drive the value of risk assets, and particularly digital assets, much higher.
However, this bull run is different. In the 2021 bull run the total number of digital assets on the market grew from about 300K to 3M tokens. Today, there are about 37 million digital asset tokens on the market with more launching every day.
It is now more important than ever to be able to evaluate the value proposition of these assets and be able to separate the signal from the noise. There will be a massive alt season as quantitative easing returns and global liquidity rises. However, not all 37 million digital assets are created equal, and being properly positioned to capture returns will be more important than ever.
That's where we come in.
This is TRU Capital.
We believe capital is value, cryptography is truth, and Truth is priceless. "Buy the truth, and sell it not" - Proverbs 23:23 KJV
HODL,
The General Partners of Tru Capital Robert J Miller
Founder & Owner,
Fundamental and Thesis Driven Digital Asset Investing for Investors.
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