ARP Crypto Digest

ARP’s Crypto Digest

General Digital Asset Market View:

After more than a month of green inflows, last week was a brutal red week for BTC ETF’s.

Fidelity and GBTC had consistent strong outflows throughout the week, causing pressure on the net flows. BlackRock's IBIT saw zero net flows throughout the week except one $1.5M inflow on Thursday, which indicates a brutal slowdown in the flows. All net flows of the week were significantly on the negative.

Such slowdown is normal, particularly for an ETF that has been consistently on the grind up for a couple of months. Additionally, these challenging periods provide a great stress test to real holders and a path to maturity of the asset class.

More Crypto:

In 2024, Bitcoin hit an all-time high with a volatility rate of 40%, much lower than the 106% spike in 2021. The launch of spot Bitcoin ETFs in the US had a muted impact on volatility.

Recent changes in Bitcoin’s market structure might explain the relatively stable price action. The US market close now commands a larger share of trading volume, with liquidity more concentrated around East Coast trading hours.

Therefore, BTC ETF demand trends are crucial for understanding Bitcoin’s price movements. The recent reversal of inflows into US BTC ETFs likely contributed to selling pressure, along with macroeconomic news.

According to data from State of Crypto Index, the number of mobile wallet users in crypto has reached an all-time high of 28 million. This surge is a strong indicator that improvements in user experience are drawing more mainstream users into the space.

MetaMask Mobile, Coinbase Wallet, and Trust Wallet remain popular, collectively accounting for the majority of users. However, newer mobile wallets like Phantom have shown the fastest growth in recent months.

Crypto dot com estimates there are 580 million crypto owners globally, suggesting significant potential for the number of mobile wallet users to grow more than 20 times from the current base of crypto owners.

What Happened This Week:

• Standard Chartered Is Building a Spot BTC, ETH.

• Dell CEO posting about Bitcoin [he is pro Bitcoin nothing new but openly posting after long time].

• Pantera Capital is raising funds for second TON token investment.

• The CFTC is probing Jump Crypto, previously one of the sector’s biggest players.

• MicroStrategy has acquired an additional 11,931 BTC for ~$786.0M using proceeds from convertible notes & excess cash for ~$65,883 per Bitcoin.

• Fantom has announced the Sonic Labs Innovator Fund, committing up to 200M FTM.

What to Look Out For:

• The German government has begun selling 50K seized Bitcoin, with around 3K BTC already sold.

• Coinbase will list $CORE today and perpetual futures for $ALT, $LDO, and $PENDLE on June 27.

• Aleph Zero has announced the launch of the Aleph Zero EVM Testnet. The MVP of zkOS privacy features will roll out in Q3 2024.

• EtherFi DAO proposed using up to 50% of protocol revenue for ETHFI buybacks.

What we enjoyed reading and listening to:

• In Conversation With President Trump — Link

• Tether Announces Launch of Alloy by Tether: A New Digital Asset Backed by Tether Gold — Link

• Crypto’s Future of Policy, Politics, and the Fight for a Pro-Crypto Government — Link

• A Survey of Large Language Models for Financial Applications: Progress, Prospects and Challenges — Link

ARP Digital is regulated by the Central Bank of Bahrain as a Category 3 Crypto Asset Service Provider. All communications and services are directed at Professional Clients only, persons other than Professional Clients, such as Retail Clients, are NOT the intended recipients of our communications or services. ARP Digital does not provide investment advice, and nothing herein shall be considered, construed as, or deemed to be, investment advice. Furthermore, nothing herein is intended to be, or shall constitute, an offer or invitation to buy securities or any form of financial instrument or investment product by ARP Digital or any of its related parties or persons.