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ARP's Crypto Digest
ARP Digital
February 03, 2025
General Digital Asset Market View:
Source: Farside, ARP Digital Research Team Q1’25
Bitcoin ETF’s generated approximately $318.56 million in inflows on the final day of January, marking their fourth consecutive day of net inflows. With these recent gains, the cumulative net inflows of Bitcoin ETFs surpassed $40 billion, reaching around $40.5 billion, fueling optimism about their future performance.
Additionally, Jan 31st profits indicated that Bitcoin ETFs ended the last trading day of the week on a positive note. Over the past week, the funds recorded net inflows on four out of five trading days. Altogether, the profitable week brought in $559.84 million in net weekly gains.
Macro:
Key releases to watch for in the US this week include the latest run of labour market datasets (JOLTS, ADP, claims, NFP & QCEW revisions) and the ISM indices. Elsewhere, focus will be on Eurozone inflation following from a series of weaker prints from the majors last week and wages data in Japan. Chinese pricing data (CPI, PPI) for January will also be released on Sunday. From a monetary policy standpoint, the main events are the BoE decision on Thursday (25bps cut widely expected and almost fully priced) and the RBI decision on Friday (the first cut in over four years also expected).
More Crypto:
Source: K33 Research
The Nvidia crash on Jan 27 had ripple effects on the crypto market, with CME traders rapidly de-risking.
Bitcoin futures basis fell to negative terrain for the first time since August 2023, while notional OI saw its largest daily decline ever of a massive 17,225 BTC.
Source: Kaiko Research
A lot has happened in the week since Gary Gensler left the US Securities and Exchange Commission. One of the more interesting developments has been the rapid uptick in exchange-traded fund filings tied to digital assets.
As of the last count there’s now 35 ETF live applications. These range from converting closed-end trusts into spot ETFs to more ambitious filings which would seek to turn newly minted memecoins into spot ETFs.
Source: Glassnode
At 50.2%, the proportion of wealth held by new Bitcoin investors (24H to 3 months), is still well below the levels seen during previous ATH cycle tops:
2018 peak: 85%
2021 peak: 74%
What Happened This Week:
Kraken has relaunched its on-chain staking services, including $ETH $SOL for US customers, two years after the SEC sued the company.
The SEC approved Bitwise’s combined Bitcoin and Ethereum ETF.
The spot price of gold has surpassed $2,795 per ounce and is on track to break its ATH of late October 2024.
The Nasdaq 100 futures fell more than -200 points as the market reportedly reacted to the launch of DeepSeek. $BTC is also coupled to this, and fell.
Sam Bankman-Fried’s Parents Explore Seeking Trump Pardon for Son.
Tether hits $13 billion profits for 2024 and all-time highs in U.S. Treasury holdings.
What to Look Out For:
Czech National Bank (CNB) approves proposal to study Bitcoin as a reserve asset.
OpenAI is in talks to secure up to $40B in a funding round that would value the startup at $340B. SoftBank is expected to lead the round, putting in $15~25B.
According to DefiLlama data, Uniswap v4 has a TVL of around $1 million and is believed to have already been deployed.
Kraken to delist USDT and other stablecoins in EEA (European Economic Area) by March 31 due to MiCA.
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