Major developments for the week
- Only 4 days until Bitcoin halving! Event is set for April 19 at 15:13 UTC
- Hong Kong gives initial approval to BTC and ETH spot ETFs
- Bitcoin ETF products saw net outflows of $82.5 million last week
- Digital asset markets saw more than $1.5B in long liquidations
- Chainlink introduces new Transporter app
- Yearn.Finance protocol creator Andre Cronje announces framework for launching memecoins to foster a safer environment
- Uniswap receives Wells notice from the SEC, intends to fight it
- ARB will undergo a $94.87 million unlock on April 16th, 2024
Hong Kong gives initial approval to BTC and ETH spot ETFs
Another interesting development occurred yesterday on the ETF front in which Hong Kong regulators approved the introduction of spot BTC and ETH exchange-traded funds. The Hong Kong Securities and Futures Commission has given the green light to three ETF providers. Among them, Harvest Global and Bosera International have confirmed their approval to offer Bitcoin and Ether ETFs. Although these asset managers have received approval, there will be a period of time prior to the official launch of their ETF products.
As the landscape of Bitcoin investment evolves with the SEC’s historic approval of various spot Bitcoin ETFs, a significant ripple effect is anticipated across the entire Bitcoin value chain, benefiting everyone from miners to custodians. eToro’s @BitcoinWorldWide Smart Portfolio emerges as an ideal solution, offering a comprehensive investment option that aligns with the growing potential of the entire Bitcoin value chain.
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Two months on from the BTC Spot ETF approval, and the Bitcoin and crypto universe is humming. How has ETF approval reshaped institutional perceptions? What does this mean for Bitcoin’s future?
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Bitcoin ETF products saw net outflows of $82.5 million last week
Bitcoin ETFs have held steady with approximately 830,000 BTC (~$55 billion) in assets under management for over a month (see chart below).
Past performance is not an indication of future results
Last week, Bitcoin ETFs experienced net outflows of $82.5 million, a marked change from the previous week’s net inflows of $845 million. Since their inception, these ETF products have recorded a total net flow of $12.7 billion, with current on-chain holdings at 841,000 BTC, representing 4.27% of the total circulating supply of Bitcoin.
Past performance is not an indication of future results
Digital asset markets saw $1.5B+ in long liquidations
Last week, the markets experienced a significant liquidation event, with $1.5 billion in long positions being liquidated. In total, over $12 billion in open interest was wiped out, including approximately $6 billion from altcoins (see chart below).
Past performance is not an indication of future results
This event marks the largest long liquidation since the cycle began in October and is one of the largest altcoin liquidation events ever recorded.
Past performance is not an indication of future results
Altcoins accounted for nearly half of the $1.5 billion in long liquidations, totalling $750 million. Of the remaining sum, Bitcoin represented approximately $525 million and Ethereum about $268.5 million.
Chainlink introduces Transporter app
Chainlink has introduced Transporter, a new application designed to transfer cryptocurrency tokens and messages across different blockchains, utilising its Cross-Chain Interoperability Protocol.
The app will allow users to bridge supported tokens such as ETH and LINK across a spectrum of eight blockchains. The application currently supports integration with Arbitrum, Avalanche, Ethereum, Optimism, and Polygon, among others. Moreover, the platform is committed to continual growth, with plans underway to expand both the range of supported tokens and compatible blockchain networks in the near future.
The development of Chainlink’s Transporter aligns with the growing need for sophisticated Web3 applications that can seamlessly interact across multiple blockchains. The @Web3Applications Smart Portfolio is structured to capitalize on advancements in cross-chain technology, offering investors strategic exposure to cutting-edge Web3 projects.
Yearn.Finance protocol creator announces framework for launching memecoins
While Fantom emerged last week as an advocate for creating a secure environment for memecoin enthusiasts and investors, Yearn.Finance creator Andre Cronje has announced a proposal for a framework to launch memecoins. The proposal addresses important risks such as token dumping, liquidity withdrawal and unregulated token control. The plan recommends direct proposal submissions, securing marketing funds in multi-signature wallets, allocating a significant portion of tokens to a liquidity pool and implementing transaction size limits. These measures aim to reduce the speculative tendencies in the sector and lay the groundwork for a more stable and reliable memecoin community.
Leading memecoins outperform every other crypto subsector YTD
In recent months, memecoins have attracted considerable interest from a diverse range of market participants, according to CoinGecko. Over the last year, open interest in memecoins has significantly increased, indicating a growing demand for exposure to this market niche.
Past performance is not an indication of future results
In March of this year, trading volume for memecoins peaked at $163 billion, marking a substantial increase in activity:
Past performance is not an indication of future results
This heightened interest in memecoins has led protocols and individuals to develop strategies that enhance the ecosystem’s safety and transparency. (See related story above.)
Arbitrum to undergo $94.87M unlock today: April 16, 2024
Past performance is not an indication of future results
The primary unlock event this week features ARB. Scheduled for today (April 16, 2024), $ARB plans to release 3.49% of its circulating supply. This comprises $57.47 million for Team, Future Team & Advisors. It also comprises $37.4m for Investors. $ARB vesting schedule is estimated to reach completion by July 17, 2027.