19th June 2025 > > BBVA, GENIUS, & HYPE.

tl;dr

BBVA is in tune with the CCC. Trump wants GENIUS on his desk. HYPE as a treasury reserve, are you sure?

Market Snap

Market Wrap

The growing threat of an all-out war in the Middle East, and the possibly huge disruption to the flow of oil and gas, is hardly denting risk assets at all. This is the natural reaction when investors have been taught time and time again that Western governments are always over-eager in their embracing of the palliative effects of money-printing aka QE – a policy designed to make the rich richer, and the poor, poorer – in response to market stress. Good news is good news, and bad news has been made into good news. What a mess.

Curious Cryptos’ Commentary – Banco Bilbao Vizcaya Argentaria (BBVA)

That ridiculous price prediction of mine that each and every BTC will be priced at $1.2mm is underpinned by a number of assumptions. A key one of which, you will recall, is that 3% - 5% of all global investment monies will find its way into cryptos, principally BTC. This is not an overnight process, and I admit my timelines have always been a little ambitious, but happen it will. We have had a few way markers so far pointing out this direction of travel – and now we have one more.

BBVA started executing crypto transactions for a select number of clients in Switzerland way back in 2021. In 2024 it started an advisory service for institutional clients. In March this year the Spanish regulator approved BBVA (under the new world-beating MiCA rules) for providing execution and custody of BTC and ETH for its retail clients in Spain using its normal investment app:

https://www.bbva.com/en/innovation/bbva-will-offer-bitcoin-and-ether-trading-and-custody-services-in-spain/

All well and good – as these product offerings proliferate, more investment money will flow into the crypto space. But what is really interesting is this comment from Reuters:

“Spanish lender BBVA is advising wealthy clients to invest up to 7% of their portfolio into cryptocurrencies, an executive said on Tuesday.”

Said Executive, Philippe Meyer, head of digital & blockchain solutions at BBVA Switzerland, added another pearl of wisdom:

"If you look at a balanced portfolio, if you introduce 3% you already boost the performance. At 3% you are not taking a huge risk."

So, that’s 3% - 7% of retail investment portfolios invested in cryptos. I’ll take that.

Curious Cryptos’ Commentary – Stablecoins, again

I know that some readers are a touch sensitive on some topics, so please look away now if you think you are one of those.

Trump has made his feelings clear about the GENIUS Act (Guiding and Establishing National Innovation for US Stablecoins):

Regardless of your personal feelings, Trump is going to be very good for all of our crypto bags.

Curious Cryptos’ Commentary – Treasury reserves

The ever-growing list of companies adding cryptos to the balance are by and large focussed on BTC. Sharplink Gaming (SBET) caught the eye with a public plan to buy ETH not BTC for its reserves though the wisdom of that plan, with the stock down two-thirds or so in a week, is open to question. On the upside, its market cap is now more or less equal to the size of its ETH reserves, so there is scope for outperformance from here.

Eyenovia (EYEN) has announced a $50mm equity private placement to buy … HYPE, the token native to the Hyperliquid platform:

https://www.globenewswire.com/news-release/2025/06/17/3101041/0/en/Eyenovia-Announces-50-Million-Investment-to-Launch-a-Hyperliquid-HYPE-token-Cryptocurrency-Treasury-Reserve-Strategy.html

Michael Rowe, Chief Executive Officer of Eyenovia, explains:

“We are pleased to join the growing number of companies who have adopted similar strategies for the diversification, liquidity and long-term capital appreciation potential that cryptocurrency represents. Following a thorough review of all available alternatives, the Board and I have concluded that this transaction is in the best interests of our shareholders.”

Recently appointed CIO Hyunsu Jung is even clearer on this point:

“I am honored and excited to join the Eyenovia team to help lead this pioneering cryptocurrency treasury strategy built around what we believe to be the most robust digital asset, HYPE. We view Hyperliquid as one of the fastest growing, highest-revenue generating blockchains in the world.”

I can see some merit in a broad-based crypto portfolio allocating a small amount to HYPE, but your entire crypto reserve? I remain thoroughly unconvinced. I do hope I am wrong.