Arp's Crypto Digest

General Digital Asset Market View:

Spot crypto ETFs recorded notable activity this week, with Bitcoin funds bringing in nearly $900 million in net inflows, lifting total holdings to more than 1.3 million BTC. Some funds, including BlackRock’s IBIT, also registered outflows later in the week. Ethereum ETFs continued their run of positive inflows, marking another consecutive week of capital additions. The contrasting flow patterns across Bitcoin and Ethereum highlight active positioning by institutional investors through regulated products.

Macro:

Highlights in economic indicators include the global flash PMIs, the US PCE and consumer sentiment in Europe. Monetary policy decisions will be due in Sweden and Switzerland. This week features a flood of Fedspeak that will provide insights on where officials line up in what looks like a historically-divided Committee on the policy path ahead, even if there was broad agreement for last week’s 25bp reduction.

More Crypto:

BTC and SOL saw notable drops in open interest, hinting at a pullback in speculative activity and a potential short squeeze.

Meanwhile, ETH, XRP, and BNB showed rising OI, suggesting renewed leveraged positioning and growing conviction in directional trades.

Tokenized investment funds have reached a record AUM of $7.7B, as asset managers show growing interest in bringing traditional products on-chain.

Leading the pack is BlackRock’s BUIDL.

What Happened This Week:

• Crypto-friendly officials eyed for CFTC chair as Quinten’s confirmation stalls.

• Yzilabs increases its stake in Ethena Labs to back digital dollars.

• SEC approves generic listing standards for commodity and digital asset ETFs, streamlining approvals.

• FED cuts 25bps as expected, with projections showing 50bps more rate cuts in 2025.

• Next Technology, a Chinese Bitcoin treasury firm, plans a $500M stock sale to buy Bitcoin.

What to Look Out For:

• Ex-PanteraCapital partner to lead Solmate, a $300M Solana treasury in the UAE.

• Kraken partners with Circle to expand global access to USDC and EURC.

• Binance nears deal to end DOJ compliance monitoring.

• Google teams up with Coinbase to integrate crypto into its new AI payments protocol.

• PayPal to add Bitcoin and Ethereum to its P2P payment system.

What we enjoyed reading and listening to:

• What Fed rate cuts mean for on-chain lending & borrowing — Link

• AI and Crypto: Parallel Lines or Intersecting Ones? — Link

• Four Categories I’m Excited About — Link

• Tokenized Stocks Launched, and Three Key Observations — Link

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