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ARP’s Crypto Digest
ARP Digital
May 06, 2024
General Digital Asset Market View:
Source: ARP Digital Research Team Q2’24
The recalibration continues, with this week seeing significant outflows from the ETF’s, while May 3rd saw a surprising comeback. During the week, GBTC outflows remained low compared to its historical outflows. However, these outflows are considerably significant to the market as the other ETF’s have not been attracting large inflows for a while, until things took a turn on May 3rd. On that note, Fidelity experiences a massive single-day outflow nearing $200M. ARKB also saw a significant setback with their highest recorded outflow of $98M. Blackrock recorded its first outflow, totaling $37M. These significant outflows all took place on May 1st, which marked the worst ETF day ever, with over half a billion dollar sold. Surprisingly, GBTC had its first day of inflow on May 3rd, with $63M inflow, along with all ETF's coming back with positive numbers.
More Crypto:
Source: Bloomberg
Mean Revert - > This week, BTC price reverted to the average purchase price of the Spot BTC ETF buyers (~$57K to ~$58K) before bouncing back to $63k. Briefly, about $37 billion in spot BTC assets excluding GBTC, had no profits or maybe a small loss.
Source: Pitchbook Data Inc., Galaxy Research
VC Investment -> In Q1 2024, VC’s invested $2.49bn (+29% QoQ) into crypto and blockchain-focused companies across 603 deals (+68% QoQ). This was the first rise in both capital invested and deal count in 3 quarters, perhaps signaling that Q4 2023 was the “bottom”, although a continuation of QoQ increases and a more meaningful increase would confirm that over the coming quarters.
Source: Glassnode
Short-Term Holders, Diamond Holders -> With the recent 10% dip in BTC, the short-term holders (wallets holding bitcoin for less than 155 days) have shown relatively muted sell-off behavior compared to the previous dips. This behavior implies that these holders are gradually transitioning to long-term holders as they become less reactive to the market volatility. Such transitioning behavior provides signals to a maturing and sustainable market dynamic.
What Happened This Week:
Pantera Capital has invested in The Open Network (TON) blockchain.
LayerZero's Snapshot #1 has been completed.
Binance founder Changpeng Zhao — 'CZ' sentenced to 4 months in prison.
Tether saw record net profit of over $4.52 billion in the first quarter of 2024.
BlackRock's onchain fund BUIDL has reached $350M AUM. Recently $50M inflows driven by Ondo's $OUSG.
FriendTech launched $FRIEND token on May 2nd .
What to look out for:
Dubai Fintech Summit 2024 From 06 May to 07 May 2024.
EigenLayer’s updated token airdrop strategy, 10th of May TGE.
Binance Announces BounceBit (BB) Megadrop Is Now Open, $BB Listing On May 13.
Chiliz Chain launches Dragon8 hard fork, introducing new tokenomics.
Jupiter announces Jupiter Mobile and acquires ultimate wallet.
Rumor of $ETH spot ETF rejection in May.
What we enjoyed reading and listening to:
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