First ETF Outflow Day in Nearly A Month, Coinbase Pushes for ETH ETF
Market Update
- Following NVDA's substantial earnings beat announced after yesterday's market close, equities have experienced a significant surge, with the QQQ climbing 2.4% and the SPX advancing 1.6%. The DXY remains unchanged for the day, while gold is experiencing a slight decline, and the yield curve is flattening, marked by a notable increase in short-term rates but a decrease in the 20-year and 30-year rates. In the crypto market, Bitcoin has not seen the same bounce as NVDA but is still managing to sustain above the $51.5k threshold. Meanwhile, $ETH is on the verge of breaking the $3k barrier, showing increased momentum relative to $BTC. The notable standouts in the crypto market this morning have been AI-related tokens such as $AGIX, $WLD, and $FET, which have emerged as the major winners over the past 12 hours. This is an AI narrative-based rally sparked by Nvidia's earnings report, which underscored its optimistic outlook on the growth potential of AI.
- Yesterday marked the first day of net outflows for BTC ETFs since late January, with a modest yet negative outflow of $36 million. This downturn was primarily driven by a $199 million redemption in GBTC, overshadowing the inflows into other newly launched ETFs. Interestingly, GBTC was the only Bitcoin ETF to record outflows, indicating that the recent market uncertainties have not widely prompted profit-taking among investors of ETFs launched post-January. Despite this, GBTC's assets under management (AUM) remain at nearly $23 billion, even after cumulative outflows surpassing $7 billion. In total, Bitcoin ETFs have attracted over $5 billion in net inflows since January 11th, with BlackRock's ETF receiving $5.6 billion, Fidelity's more than $3.7 billion, ARK's over $1.3 billion, and Bitwise's slightly above $1 billion, highlighting sustained investor interest in these products.
Source: Farside Investors, Fundstrat
- Coinbase has responded to the SEC's request for comment regarding the conversion of Grayscale's Ethereum Trust to a spot ETF. In a detailed response to the SEC, Coinbase presented a comprehensive argument covering legal, technical, and economic grounds, emphasizing that ETH should not be classified as a security but rather as a commodity, a stance supported by historical regulatory and market treatment. This push for approval is part of a broader industry effort, with several prominent financial institutions, including BlackRock and Fidelity, also filing for their spot ether ETFs. Approval of such ETFs would enable investors to speculate on Ethereum's price without direct ownership of the digital asset. Coinbase's advocacy is not just about broadening investment options but also strategically aligns with its business interests, given its role as a custodian and staking institution for numerous approved and proposed crypto ETFs in the U.S. and abroad. As a reminder, the deadline for spot ETH ETFs is May 23rd.
Daily Technical Strategy
Mark L. Newton, CMT
Head of Technical Strategy
Due to a personal matter, Mark Newton will be temporarily unable to publish Daily Technical Analysis. Additional information is not available at this time, but we will provide updates as soon as this changes.
Daily Important Metrics
All metrics as of February 22, 2024 12:27 PM
All Funding rates are in bps
Crypto Prices
Symbol | Market Cap | Last Price | Daily Change | Year to Date | Relative to BTC YTD |
BTC | $1.01T | $51,647 | ↑ 1.43% | ↑ 22% | |
ETH | $359B | $2,986 | ↑ 2.96% | ↑ 31% | ↑ 8.94% |
SOL | $46B | $104 | ↑ 1.40% | ↑ 2.36% | ↓ -20% |
ADA | $21B | $0.5939 | ↑ 1.74% | ↑ 0.20% | ↓ -22% |
DOGE | $12B | $0.0849 | ↑ 2.27% | ↓ -4.69% | ↓ -27% |
LINK | $11B | $18.43 | ↑ 1.07% | ↑ 23% | ↑ 0.87% |
DOT | $9.7B | $7.59 | ↑ 3.25% | ↓ -6.42% | ↓ -29% |
MATIC | $9.4B | $0.9786 | ↑ 5.87% | ↑ 1.92% | ↓ -20% |
NEAR | $3.4B | $3.25 | ↑ 3.17% | ↓ -9.79% | ↓ -32% |
Exchange Traded Products (ETPs)
Symbol | Premium to Nav | Last Price | Daily Change | Year to Date | Relative to BTC YTD |
GBTC | ↓ -1.75% | $37.25 | ↑ 4.78% | ↑ 1.09% | ↓ -21% |
BITW | ↓ -42% | $24.10 | ↑ 3.88% | ↓ -1.87% | ↓ -24% |
ETHE | ↓ -13% | $19.73 | ↑ 4.50% | ↑ 1.39% | ↓ -21% |
BTCC | ↓ -0.29% | $8.07 | ↑ 3.46% | ↓ -1.34% | ↓ -24% |
News
QUICK BITS
CoinDesk Vitalik Buterin Floats Idea of AI-Based Code Audits, Ethereum Project Developers Back Him Up In 2023, crypto users lost an estimated $2 billion to hacks and scams, with Ethereum experiencing the highest losses due to its extensive ecosystem and high-pro... |
The Block FalconX expands into Hong Kong as institutional demand rises FalconX said it plans to offer OTC brokerage and crypto derivatives services to professional investors in Hong Kong. |
The Block Valkyrie launches 2x leveraged bitcoin futures ETF Valkyrie launched a new bitcoin leveraged product that aims to provide two-times the daily performance of a bitcoin futures index. |
MARKET DATA
CoinDesk Ether's $3K Breakout Partly Fueled by Dealer Hedging, Analyst Says Options dealers likely bought ETH in spot/futures market to hedge their short call exposure, adding to bullish momentum, BloFin's Griffin Ardern said. |
DOSE OF DEFI
The Block Gauntlet announces exit from Aave as risk manager John Morrow, co-founder of Gauntlet, said it's been difficult to navigate 'inconsistent guidelines' of Aave’s largest stakeholders. |
CoinDesk Ondo Finance Integrates Tokenized Treasuries Onto Aptos Aptos is the latest chain to offer users access to Ondo’s USDY. |
REGULATION
CoinDesk England's Law Commission Seeks Views on Draft Legislation to Label Crypto as Property The Law Commission also called for evidence on its project on digital assets and electronic trade documents in private international law. |
FUNDRAISING AND M&A
The Block Solana developer platform Helius raises $9.5 million in Series A funding Helius plans to grow its team of 14 employees and bolster its tech stack with the fresh Series A financing. |
The Block Andreessen Horowitz invests $100 million in restaking project EigenLayer: Bloomberg Andreessen Horowitz is reportedly the sole backer in a funding round expected to be announced on Thursday. |
The Block Binance Labs invests in Ethereum liquid restaking protocol Renzo Binance Labs has invested an undisclosed sum in EigenLayer-based Ethereum liquid restaking protocol Renzo. |
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