The infrastructure convergence

Bitcoin and the broader crypto market came under pressure late in the week before recovering some of the losses after President Trump signalled progress towards a potential agreement with Iran and other Middle Eastern countries. Despite the rebound, both Bitcoin and Ethereum finished the week slightly lower.

Bitcoin and Ethereum were down -1.84% and -3.06% respectively over the seven days to 24 May 2026. Bitcoin’s market capitalisation is down to US$1.53 trillion while the global crypto market sits at US$2.57 trillion. Bitcoin’s market dominance is at 59.9%.

Source: CoinMarketCap. As at 24 May 2026. Past performance is not indicative of future performance. Performance is shown in US dollars and does not consider any USD/AUD currency movements.

Source: Glassnode. Past performance is not indicative of future performance.

Crypto news we’re watching

The AI buildout gives Bitcoin miners a new role

Bernstein research argues Bitcoin miners are evolving from pure crypto plays into strategic AI infrastructure providers, as hyperscalers race to secure power capacity for data centres and AI workloads. Many miners already control large-scale energy access, cooling systems and data centre infrastructure, giving them a significant advantage in the increasingly power-constrained AI buildout¹.

The market is beginning to value some miners less on Bitcoin production and more on their ownership of scarce compute and energy infrastructure. As AI demand accelerates, the overlap between crypto mining and AI infrastructure is becoming increasingly difficult to ignore.

Traditional markets continue moving on-chain

A DeFi exchange offering perpetual contracts tied to individual US equities using Nasdaq data is another sign that traditional markets are steadily moving on-chain. Rather than tokenising actual shares, the platform allows traders to gain 24/7 synthetic exposure to stocks through perpetual futures, bringing crypto-style market structure into equities trading.²

The line between traditional finance and crypto-native infrastructure continues to blur, with exchanges increasingly competing to bring equities, commodities and other real-world assets into always-on blockchain markets. As tokenisation evolves, the opportunity may not just be digitising assets, but rebuilding how markets trade, settle and operate altogether.

CRYP company spotlight

AI and crypto begin reshaping real-world infrastructure

Hut 8’s US$16 million investment into Louisiana water infrastructure highlights how crypto and AI infrastructure are increasingly reshaping the physical economy around them. The project, tied to Hut 8’s River Bend AI data centre campus, includes new wells, water mains and utility upgrades expected to benefit thousands of local households and businesses. The signal is broader than Bitcoin mining, with digital infrastructure firms increasingly becoming builders of long-duration real-world infrastructure.³

Hut 8 is held in the Betashares Crypto Innovators ETF (ASX: CRYP)⁵. CRYP provides exposure to global companies at the forefront of the crypto economy.⁵

Bitcoin (BTC): US Spot ETF Net Flows [USD]

This metric shows the total net flow of funds of the leading Bitcoin and Ethereum ETFs traded in the US, reflecting the day-to-day changes in the ETFs’ holdings.

According to data from Glassnode as of 22 May 2026, after an impressive run to mid-May, net outflows have picked up, and the last five days are the worst since January 2026.

Source: Glassnode. Past performance is not indicative of future performance.

Bitcoin (BTC): Percent balance on exchanges – All exchanges

This is a measure of the percentage of circulating supply in profit i.e. the percentage of existing coins whose price at the time they last moved was lower than the current price. If the current price is higher than the last transaction price, that coin is considered to be in profit

According to data from Glassnode as of 23 May 2026, 61% of the bitcoin supply is in profit at current prices.

Source: Glassnode. Past performance is not indicative of future performance.

Altcoin news

Hyperliquid’s HYPE token surged over 43% over the last 7 days and 82% over the last year as much of the broader crypto market remains under pressure, driven by explosive growth in trading activity and rapid expansion into tokenised real-world assets. Open interest in its RWA segment has doubled to US$2.6 billion in just two months, while new products tied to stocks, commodities and prediction markets are broadening the platform’s reach⁶. In addition, two HYPE ETFs launched in the US last week.

References:

1. https://cointelegraph.com/news/bernstein-bitcoin-miners-gain-strategic-role-in-ai-infrastructure

2. https://www.coindesk.com/markets/2026/05/19/a-defi-exchange-becomes-the-first-to-offer-equity-perpetuals-powered-by-nasdaq-data

3. https://www.prnewswire.com/news-releases/hut-8-commits-16-million-to-expand-water-infrastructure-in-west-feliciana-parish-302775525.html

4. As at 22 May 2026. No assurance is given that this company will remain in the portfolio or will be a profitable investment.

5. CRYP does not invest in crypto assets directly and does not track price movements of any crypto assets. For more information on risks and other features of CRYP, please see the Product Disclosure Statement and Target Market Determination (TMD), available at www.betashares.com.au.

6. https://www.fxempire.com/forecasts/article/hyperliquid-price-news-hype-is-up-124-while-the-rest-of-crypto-bleeds-heres-why-1599410