Bitcoin ETFs Set Volume Record, Aero Provides Reminder of Potential Goldmine On COIN Balance Sheet
Market Update
- Bitcoin surged higher yesterday evening during Asian market hours, climbing from $54.8k to reach $57k. This increase followed a day of impressive inflows into spot $BTC ETFs. $ETH has taken a backseat for the time being, currently trading slightly above $3.2k. $STX is performing well, up over 6%, but other recent market leaders are lagging. It appears that flows have shifted towards more speculative corners of the market, with memecoins such as $BONK, $DOGE, $PEPE, and $SHIB all outperforming on the day. Equity markets are showing mixed results today, with small caps and utilities outperforming while tech stocks are lagging. Both the QQQ and SPX are down approximately 0.15% on the day. Meanwhile, long-term interest rates are moving higher, and short-term rates are moving lower, potentially due to weaker-than-expected durable goods orders released this morning. As mentioned last week, correlations between Bitcoin and equities had begun to increase, so a trading day where equities are weak while Bitcoin remains strong will be an interesting data point to observe.
- On Monday, the trading volume of nine new spot Bitcoin ETFs reached a record $2.4 billion, eclipsing the initial record set on their debut day, January 11th, with BlackRock's ETF leading the way with $1.3 billion in trades. This achievement brings the cumulative trading volume of all Bitcoin ETFs to $52 billion since their inception. In addition to being a sign of general attention from institutions, this volume metric indicates a mature and liquid market for these ETFs, which benefits investors through better pricing. Yesterday, BTC ETFs experienced over $500 million in net inflows, with BlackRock's IBIT attracting more than $100 million once again. Notably, GBTC reported only $22 million in outflows, marking the lowest single-day outflow since the ETFs were launched.
Source: Farside Investors, Fundstrat
- The Base Ecosystem Fund, led by CB Ventures, has acquired an undisclosed stake in $AERO, the native token of Aerodrome Finance, a prominent liquidity protocol on the Base blockchain. This investment led to a significant 70% increase in AERO's value. Aerodrome dominates the Base network, accounting for approximately 25% of the total value locked (TVL) of $500 million, according to DefiLlama. The partnership between Aerodrome and the Base Ecosystem Fund is aimed at advancing the Base ecosystem's future. This initiative is a key part of the Base Ecosystem Fund's wider investment strategy, which has previously included support for various projects such as Avantis, BSX, Onboard, OpenCover, Paragraph, and Truflation.
- This investment is a great reminder that, beyond surpassing last quarter's estimates and offering positive forward guidance for its core business lines, Coinbase is also investing in external companies and tokens through its balance sheet. There is potential for significant value accrual to the company's balance sheet once accounting standards are updated to reflect the fair value of these assets.
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
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All metrics as of February 27, 2024 12:58 PM
All Funding rates are in bps
Crypto Prices
| Symbol | Market Cap | Last Price | Daily Change | Year to Date | Relative to BTC YTD |
 BTC | $1.12T | $56,849 | ↑ 6.23% | ↑ 35% | |
 ETH | $388B | $3,230 | ↑ 2.70% | ↑ 42% | ↑ 7.36% |
 SOL | $47B | $107 | ↓ -2.18% | ↑ 5.38% | ↓ -29% |
 ADA | $22B | $0.6115 | ↑ 0.26% | ↑ 3.16% | ↓ -31% |
 DOGE | $14B | $0.0958 | ↑ 9.80% | ↑ 7.62% | ↓ -27% |
 LINK | $11B | $18.95 | ↓ -0.70% | ↑ 27% | ↓ -8.01% |
 DOT | $10B | $8.11 | ↑ 1.36% | ↓ -0.04% | ↓ -35% |
 MATIC | $9.9B | $1.03 | ↓ -3.42% | ↑ 7.12% | ↓ -27% |
 NEAR | $4.1B | $3.97 | ↓ -4.93% | ↑ 10% | ↓ -24% |
Exchange Traded Products (ETPs)
| Symbol | Premium to Nav | Last Price | Daily Change | Year to Date | Relative to BTC YTD |
| GBTC | ↓ -0.08% | $37.25 | ↑ 4.78% | ↑ 1.09% | ↓ -34% |
| BITW | ↓ -44% | $24.10 | ↑ 3.88% | ↓ -1.87% | ↓ -36% |
| ETHE | ↓ -8.33% | $19.73 | ↑ 4.50% | ↑ 1.39% | ↓ -33% |
| BTCC | ↑ 0.28% | $8.07 | ↑ 3.46% | ↓ -1.34% | ↓ -36% |
News
MARKET DATA
The Block Blast crosses $2 billion in TVL ahead of Feb. 29 mainnet launch Ethereum Layer 2 Blast has hit more than $2 billion in total value locked. Blast’s mainnet launch is anticipated for Feb. 29. |
The Block Bitcoin price surge above $56,000 causes spike in short liquidations Over the past 24 hours, bitcoin surged to a multi-year high of over $56,000, as spot bitcoin ETF trading volume increased. |
The Block New bitcoin ETFs surpass 300,000 BTC holdings in under two months Daily net inflows exceeded $500 million on Monday as total net inflows reached $6 billion and bitcoin’s price surged. |
CoinDesk Ether Demand Is Driven by U.S. Investors, Data Shows Coinbase premiums for ether (ETH) tokens were higher than usual in the past week, suggesting the demand was led by U.S. investors, CryptoQuant said. |
DOSE OF DEFI
CoinDesk Stablecoin USDC Is Making a Comeback: Coinbase Total market cap of the dollar-linked coin has increased faster than larger rival USDT's in recent months. |
CoinDesk Days After Ditching Aave, Risk Manager Gauntlet Moves to Rival Lender Morpho According to Gauntlet, the move offers the potential for more money with greater flexibility. |
FUNDRAISING AND M&A
CoinDesk AERO Surges 77% After CB Ventures Invests In Aerodrome Finance AERO, the native token of liquidity protocol Aerodrome Finance, jumped by 77% on Tuesday after it was selected by the Base Ecosystem Fund, which is led by CB Ve... |
The Block Initia is planning to launch its incentivized testnet in the next two months, with its mainnet coming shortly after. |
The Block Binance Labs invests in Bitcoin staking protocol Babylon Binance Labs has invested in Bitcoin staking protocol Babylon as it continues to show interest in the staking and restaking verticals. |
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