ARP's Crypto Digest

ARP’s Crypto Digest

General Digital Asset Market View:

Fidelity and BlackRock’s IBIT led the charge with substantial contributions, particularly on Tuesday, where Fidelity saw a staggering $379 million inflow and IBIT attracted over a quarter-billion dollars, totaling $274.4 million. Throughout the week, IBIT maintained its momentum, consistently bringing in large sums, including $155 million on Wednesday and $350 million on Thursday. Bitwise also showed impressive performance, notably surpassing $2 billion in cumulative flows with a $61 million inflow on Tuesday. GBTC on the other hand had a modest $15 million inflow on Wednesday but moderate outflows later, including a $38 million outflow on Thursday. 

Overall, the net inflows for the week were outstanding, exceeding $1.5 billion, marking it the best ETF week since mid-March. This influx highlights strong investor confidence in Bitcoin ETFs, particularly those managed by industry leaders like Fidelity and BlackRock.

More Crypto:

A short-term, 30-day correlation between Bitcoin and the Nasdaq 100 Index of US technology stocks is around the highest since early 2023, suggesting that further gains in the equity gauge may be accompanied by a move higher in the crypto market leader.

As we enter June, both crypto and traditional financial markets are experiencing the typical summer trading slowdown. Historically, Q3 has the lowest volume, with BTC trade volumes over 40% lower than the highest-volume quarter. In Q3 2023, BTC-USD volumes hit a multi-year low of $44 billion, despite BlackRock’s spot ETF filing. This decline may be due to tighter regulations and worsening liquidity infrastructure after US banking turmoil. 

However, the launch of 11 spot ETFs in the US has already improved BTC price discovery and liquidity, offering hope that this summer’s volumes might not be as low.

What Happened This Week:

• Robinhood to buy Bitstamp, Crypto Exchange for $200M. 

• Binance resumes Mastercard payments for crypto as well as the Binance-branded Visa card.

• Kraken Said To Be In Talks For Pre-IPO Fund Raising Round.

• Sandbox has raised $20M in convertible debt co-led by Kingsway Capital and Animoca Brands.

• Phala Network has announced that Multi AI Agent bots are coming to Telegram soon and $PHA just entered the 5th halving period.

• Mantra has partnered with ZAND BANK, licensed by the Central Bank of the UAE.

What to Look Out For:

• Wormhole co-founder has hinted at the release of a staking feature.

• Binance announced the launch of the $IO Launchpool. Trading starting June 11.

• Chainlink has announced a discussion in NYC on June 7 with JPMorgan Chase & Co. about tokenized assets.

• Horizen has proposed a Strategic Technical Plan for migrating $ZEN and EON. Voting begins on 6/18.

• Mask Network has announced that Season 1 of $MASK staking is coming soon.

What we enjoyed reading and listening to:

• ETH 2030 Price Target and Optimal Portfolio Allocations — Link

• The Financialization of Crypto and the Influence of Narratives — Link

• How the U.S. Government Can Protect the Dollar Through Stablecoins — Link

• How Digital Assets & Virtual Economies Will Fuel Global Immersion with Ledger — Link

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