ARP's Crypto Digest

General Digital Asset Market View:

This week, significant outflows occurred particularly on October 1st, when Fidelity’s FBTC experienced a dramatic outflow of $144.7 million. Other funds like BITB and ARKB also saw substantial outflows of $32.7 million and $84.3 million, respectively.

 Despite some recovery attempts towards the end of the week, where FBTC, BITB, and ARKB managed to record inflows of $13.6 million, $15.3 million, and $5.3 million respectively on the final day, the overall movement for the week still reflected a net negative outflow, marking the first weekly net outflow since early September. 

Total assets of these funds dropped from $61.21 billion to $57.73 billion over the week, coinciding with a decrease in bitcoin’s price from about $65,000 to $62,000. Bitwise plans to modify its crypto futures ETFs by incorporating Treasuries to reduce volatility. 

More Crypto:

While people were spreading FUD about a $eth ICO seller, another fund quietly bought 56,093 ETH using $129.3M USDC at an average price of $2,305 during the August 5 crash. 

On October 2nd, they added another $66M worth of ETH to their holdings.

Options volumes have increased over the past few weeks as markets shift to a risk-on mindset. Traders are positioning themselves to capture upside price movements ahead of what is historically BTC’s best trading month. BTC’s price has only ended October down twice since 2013.

Looking at the three expiries in October, we can see that most of the volume is focused on the BTC options expiring at the end of the month. Typically, the front-month contracts would have more volume and liquidity.

What Happened This Week:

• Sonic Labs launched Arcade, a game page with an allotted 200m $S airdrop.

• Japan is set to review its regulations on crypto. This could mean a lower crypto tax rate and the possible opening of a crypto ETF in Japan.

• Bitwise has filed an application to establish a trust to launch an XRP Spot ETF, but it’s unclear whether it will be approved.

• Aptos announced that Franklin Templeton has launched an on-chain US Government Money Market Fund (FOBXX) on Aptos Network.

• Initia, a network for rollups, revealed that it raised $14M in funding.

What to Look Out For:

• Injective announced that it is entering phase 1 of “INJ 3.0”, which aims to deflate $INJ.

• Grayscale has introduced new crypto funds for $AAVE, accessible to accredited investors.

• Berachain announced the RFB Program, an ecosystem bootstrapping program.

• Avalanche announced a $40M ecosystem grants program.

What we enjoyed reading and listening to:

• Meta CEO Mark Zuckerberg predicts smart glasses will replace phones by 2030 — Link

• VanEck’s Crypto AI Revenue Predictions by 2030 — Link

• This Cycle, We Are Entering the Era of 3rd Generation Smart Contract Platforms — Link

• The Inefficient Market Hypothesis — Link

• Are Regulatory Failures to Blame for Crypto Banking Issues? — Link

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