Issue #80

Written by Magnet Capital | Feb 12, 2024 11:25:00 PM

Market Overview

As of the time of writing (Monday 5pm), the total market cap of the crypto asset market is $US1.89T, up (9.9%) from last week.

Below is the weekly performance of the top crypto assets.

News Headline Highlights

Bitcoin ETF update
- ETF's experienced their second and fourth largest net inflow days since launch, recording $403m and $541m of net inflows on Thursday and Friday of last week.
- Grayscale's Bitcoin ETF, GBTC, recorded its three smallest outflow days since launching last week, with $51m on Friday being the smallest daily outflow to date.
- Bitcoin's price returns to ETF launch levels, implying all ETF investors to date are now in profit.
- Fidelity’s FBTC joins BlackRock’s IBIT in attracting $3B in AUM since launch.
- Ark’s ARKB surpassed $1B in AUM since launch.
- Thus far, BTC ETFs have been massively successful, with Blackrock’s IBIT ranking #5 in YTD flows & Fidelity’s FBTC ranking #8, beating 99.9% of all ETFs.
Fidelity has included BTC allocations in their “all in one ETF”, adding 1% (conservative), 2.5% (balanced) and 3.1% (aggressive). The Bitcoin will be added via FBTC, their BTC ETF.
MicroStrategy added to their Bitcoin holdings in January, buying 850 BTC at a price of $37.5 million. The company now owns 190,000 BTC - $8.2 billion in digital coins at today's prices.
Deribit announced their intentions of adding launching linear options for Solana (SOL), XRP (XRP) and Polygon (MATIC). "Based on demand from our clients, we chose to expand our offerings with some key altcoins; SOL, MATIC, and XRP," Deribit Chief Commercial Officer Luuk Strijers said in an email to The Block.
Genesis Global, the bankrupt crypto lender, has requested for court approval to sell ~$1.4B worth of GBTC, Grayscale’s Bitcoin ETF shares. It also wants to sell 9 million shares of the Grayscale Ethereum Trust and 3 million shares of the Grayscale Ethereum Classic Trust.
Consensys, a blockchain and web3 software company, and Robinhood, launched the integration of Robinhood Connect with MetaMask. Using MetaMask’s Buy Crypto feature, customers can now purchase crypto through Robinhood’s low cost order engine. After purchase, users will have self custody of their assets and be able to interact with web3 services.

Crypto Asset Project Updates

Ethereum developers announced March 13 as the target date for its long-awaited Dencun upgrade. The Dencun upgrade is primarily known for its "proto-danksharding" feature, which is expected to reduce costs for transactions on "Layer-2" networks by up to 90%.
The Solana Blockchain experienced an outage, rendering it unusable for five hours on Tuesday. A post-mortem report on this week’s Solana network outage pointed the finger at a previously known bug.
GoDaddy, the global leader in domain registration, announced a partnership with Ethereum Name Service (ENS), a pioneer in blockchain-based naming systems. The partnership will enable domain name users to link their domains to ENS effortlessly, with no additional costs or technical experience required.

Regulation Station

U.S. Treasury Secretary Janet Yellen told lawmakers that the government's financial risk watchdogs want there to be a minimum level of federal oversight of stablecoin issuers – a system that sets universal compliance standards beyond what states like New York and Texas currently impose. The council of financial regulators she leads "believes it's critical for there to be a federal regulatory floor that would apply to all states and that a federal regulator should have the ability to decide if a stablecoin issuer should be barred from issuing such an asset".
Hong Kong announced plans to consult the public/industry on a framework for over-the-counter (OTC) crypto venues "very soon". The consultation will cover virtual-asset (VA) outlets such as shops and online platforms, the Financial Services and the Treasury Bureau (FSTB).

The Weekly Deal Room

Superform Labs, a universal yield marketplace, raised $6.5m in a Seed Round led by Polychain Capital.
Omega, a decentralized infrastructure that will redefine omnichain & Bitcoin DeFi, raised $6m in a Private Round from Borderless Capital, Alpha Lab Capital, Psalion and others.
Flood, a decentralised exchange aggregator, raised $5.2m in a Seed Round led by Bain Capital Crypto.
GLIF, a Filecoin liquid staking service, raised $4.5m in a Seed Round led by Multicoin Capital.
Lightlink, an Ethereum L2 blockchain that lets dApps and enterprises offer users instant, gasless transactions, raised $4.5m in a Seed Round co-led by T&B Media Global Thailand and MQD.
Startale Labs, a web3 infrastructure company, raised $3.5m at a $63.5m valuation in a Series A from UVM Signum Blockchain Fund, Sony Network and Samsung Next Ventures.
Fuzzland, a company building tools for devs, traders, MEV bots, and auditors to quickly and accurately analyse any smart contracts, raised $3m in a Seed Round led by 1kx.

Metric of the Week

Measured by assets under management 1 month after an ETFs launch 4 Bitcoin ETFs rank in the Top 25 ETFs, out of 5,535 total launches in 30yrs. BlackRock's IBIT and Fidelity's FBTC are in a league of their own w/ over $3b each, and ARK's ARKB and Bitwise's BITB also made list.

Source: Bloomberg Intelligence

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