Record-Setting BTC Inflows, Coinbase to Issue $1B in Convertible Notes
Market Update
- BTC surged in the overnight hours, nearing $74k, following a day of record inflows into spot ETF products. It's now trading around $72.5k.ETH is showing relative weakness this morning, dipping just below $4k. This may be due to capital rotating into Layer 2 solutions and other Ethereum-related assets following the successful Denunc upgrade. Ethereum-adjacent assets such as AAVE, SYN, MATIC, MKR, and ARB -0.03% , are outperforming thus far today. SOL has continued its gradual climb, now trading just north of $152. NEAR 0.03% is also showing relative strength ahead of next week's NVIDIA AI conference. In traditional markets, rates are on the rise following a disappointing 10-year auction yesterday, with anticipation building ahead of a significant 30-year auction today. Equities are seeing gains across most sectors, although major indices are being weighed down by tech stocks; the SPX is down about 0.20%, and the QQQ is down about 0.70%. Despite the uptick in rates, traditional gold has edged slightly higher, up about 0.30% for the day.
- Spot Bitcoin ETFs recorded 14,706 BTC, or over $1 billion, in net inflows on Tuesday, eclipsing the previous February record of $673 million. BlackRock achieved a record $849 million in inflows, whereas Grayscale experienced a relatively modest $79 million in outflows, significantly below its recent trend. This caps a recent stretch from Monday, March 4th, through Tuesday, March 12th, during which net inflows into spot ETFs totaled over $3.8 billion.
Source: Farside Investors, Fundstrat
- Additionally, capital flows on the stablecoin front have been decidedly positive. The total market cap of stablecoins is approaching $146 billion, indicating a rapid influx of capital into the crypto ecosystem.
Source: DefiLlama, Fundstrat
- Coinbase announced plans to issue $1 billion in Convertible Senior Notes due 2030 in a private sale aimed at qualified institutional buyers, with an additional $150 million option for over-allotments. These notes, unsecured and accruing semi-annual interest, may be converted into cash, Coinbase Class A stock, or a mix, at Coinbase's discretion. The specifics, including the interest rate and conversion terms, will be determined at the time of the offering. To mitigate potential dilution from the conversion of notes and manage cash payment obligations, Coinbase plans to engage in capped call transactions with certain initial purchasers or financial entities. These agreements are designed to limit stock dilution and cash payments above the principal amount upon note conversion. Coinbase expects that these transactions might influence its Class A stock price due to initial hedge setups and subsequent market transactions by the counterparties. The company plans to use the sale proceeds to manage and repay existing debts, support general corporate activities, and possibly invest in or acquire new companies, products, or technologies.
Daily Technical Strategy
Mark L. Newton, CMT
Head of Technical Strategy
Injective has gained some technical appeal following yesterday's breakout of the three-month consolidation pattern that began last December. The act of having broken out back above $46.46 definitively has carried prices back to new all-time highs, and volume has been consistently high since mid-February on recent gains. This specific pattern is often referred to as a Cup and Handle pattern given the visible "cup" which occurred from mid-December into late February. Subsequently, a minor breakout attempt happened which looked to have failed but managed to consolidate at much higher levels. The act of having exceeded the neckline of this pattern happened on Tuesday 3/12, with its breakout back above $46.46. Similar to the price action following last year's breakout of April 2021 peaks near $27.50, this latest breakout should also serve to take INJ higher in the weeks to come. Initial technical price resistance targets lie near $68, followed by $83 which likely could cause some slowdown to the ongoing trend. However, yesterday's move was a clear bullish development and bodes well for upside follow-through in the weeks to come.
Daily Important Metrics
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All metrics as of March 13, 2024 10:20 AM
All Funding rates are in bps
Crypto Prices
| Symbol | Market Cap | Last Price | Daily Change | Year to Date | Relative to BTC YTD |
 BTC | $1.43T | $72,924 | ↑ 1.28% | ↑ 73% | |
 ETH | $479B | $3,988 | ↓ -0.23% | ↑ 75% | ↑ 2.62% |
 SOL | $70B | $159 | ↑ 5.59% | ↑ 56% | ↓ -17% |
 ADA | $27B | $0.7510 | ↑ 0.62% | ↑ 27% | ↓ -46% |
 DOGE | $24B | $0.1679 | ↓ -1.36% | ↑ 89% | ↑ 16% |
 DOT | $14B | $10.88 | ↑ 2.03% | ↑ 34% | ↓ -39% |
 MATIC | $13B | $1.28 | ↑ 7.87% | ↑ 33% | ↓ -39% |
 LINK | $12B | $20.49 | ↓ -0.28% | ↑ 37% | ↓ -36% |
 NEAR | $8.2B | $7.84 | ↑ 4.67% | ↑ 118% | ↑ 45% |
Exchange Traded Products (ETPs)
| Symbol | Premium to Nav | Last Price | Daily Change | Year to Date | Relative to BTC YTD |
| GBTC | ↑ 1.04% | $64.31 | ↑ 5.24% | ↑ 75% | ↑ 1.85% |
| BITW | ↓ -36% | $37.40 | ↑ 1.38% | ↑ 52% | ↓ -20% |
| ETHE | ↓ -14% | $34.16 | ↓ -0.96% | ↑ 76% | ↑ 2.87% |
| BTCC | ↑ 0.01% | $13.12 | ↑ 4.13% | ↑ 60% | ↓ -12% |
News
QUICK BITS
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MARKET DATA
The Block BlackRock’s spot bitcoin ETF crosses $15 billion in AUM amid record inflow and volume BlackRock's IBIT witnessed its largest daily inflows of $849 million on Tuesday while generating a record $4 billion in trading volume. |
CoinDesk First Mover Americas: Coinbase Plans $1B Bond Sale The latest price moves in bitcoin (BTC) and crypto markets in context for March 13, 2024. First Mover is CoinDesk’s daily newsletter that contextualizes the lat... |
The Block Global crypto funds break 2021 inflow record in under 3 months in 2024 Inflows of nearly $1.8 billion so far this week alone were enough for this year to break the prior record of $10.6 billion for the whole of 2021. |
DOSE OF DEFI
The Block Vega creates derivatives market for crypto points, starting with EigenLayer Vega follows Whales Market and Pendle is supporting trading for points ahead of any potential token airdrop. |
REGULATION
CoinDesk Indonesia’s Finance Regulator Issues New Crypto Regulation to Strengthen Industry This is part of the preparations for the transition of crypto supervision to OJK by January 2025. |
CoinDesk EU Regulators Publish Batch of Draft Rules for Stablecoins Under MiCA The draft Regulatory Technical Standards (RTS) lay out requirements for issuers when dealing with complaints about stablecoins referencing multiple currencies. |
WEB 3.0
The Block Swell plans Layer 2 ‘restaked rollup’ alongside native governance token Liquid restaking protocol Swell will launch its own Layer 2 rollup chain, leveraging several features from restaking protocol EigenLayer. |
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