Crypto Markets Rally After Bitcoin ETFs See $400M Of Daily Inflows
Bitcoin’s market capitalization approaches $1T, while Ether trades at $2,500.
It’s been a good week in the crypto markets, with eight of the top 10 tokens by market capitalization posting solid gains over the past seven days.
Bitcoin is currently trading around $47,600 after briefly surpassing the $48,000 mark earlier today, notching a 10.7% gain on the week. Its market capitalization is approaching the trillion-dollar milestone, with Coingecko reporting it at $934B.
Ethereum is changing hands for $2,500, a 9% surge over the past seven days. The network’s market cap has surpassed $300B at the time of writing.
Ads by HypeLab
All top 10 tokens that aren’t stablecoins are enjoying gains. Binance Coin (BNB) lands in third place, trading for $322 with a 7.4% price rise over the past seven days.
Among the top 100 digital assets, Solana memecoin BONK and Layer 1 blockchain Sui are today’s best-performing tokens, gaining 21% and 18%, respectively. Meanwhile, AI project Bittensor is up 15% to $508.
Spot Bitcoin ETFs attract $400M
Driving the short-term gains appears to be rising investor interest in spot Bitcoin ETFs. On Feb. 8, the sector saw $403M in net inflows, the highest since Jan. 17, when inflows topped $453M.
Demand for Bitcoin from the nine ETF providers reached 9,000 BTC yesterday – ten times the amount of Bitcoin that is issued on a daily basis as block rewards.
According to Bloomberg analyst James Seyffart, eight of the nine providers took in money yesterday. Fidelity’s FBTC has surpassed $3B in AUM, while Grayscale’s GBTC outflow streak continued with $101M.
Ether Hits 2-Week High After Ark Amends ETF Filing
Ether rallied after Ark Invest, an asset management firm known for its tech-forward offerings, amended its filing for a spot ETH ETF on Feb. 7.
One key change from ARK is a cash creation and redemption mechanism, which Bloomberg analyst Eric Balchunas said would “bring [the application] in line with the recently approved spot BTC ETF prospectus.”
The amendment also introduces the possibility of staking the ETH tokens backing the potential ETF.
ETH jumped to $2,421, gaining nearly 2% in an hour. The second largest digital asset hasn’t traded above $2,400 since Jan. 22.
Ark’s Bitcoin ETF, ARKB, was one of eleven approved by the SEC last month. The possibility of a spot ETF for ETH has become a major point of discussion among crypto investors in the wake of similar offerings for BTC.
The SEC has postponed decisions on whether to approve ETF applications for ETH from firms like Grayscale and Blackrock. Asset management firms VanEck and Ark both have pending applications as well. The decision date for the SEC is May 23.
TAO Hits ATH
There are other bright spots in the crypto market.
TAO, the token for the AI-focused Bittensor project, has nearly doubled in the past two weeks, continuing a rally that has seen the token’s price increase nearly 10-fold since mid-October.
Dymension’s DYM, which launched yesterday, is up 25% to $6.
JUP, which Solana-based DEX aggregator Jupiter airdropped last week, has also jumped 10% in the last 24 hours. Privacy-focused Monero (XMR) has gained nearly 23% in that span as well.
Farcaster Frenzy Sparks Base Memecoin Mania
Surging activity on Farcaster, a ‘sufficiently decentralized’ social media protocol, has spawned a new wave of memecoins on Base, the Ethereum Layer 2 network built by Coinbase.
DEGEN, a token launched in early January with an airdrop for active Farcaster users, is down 20% today after rallying more than 1000% in the past week.
A second airdrop is underway with a campaign to incentivize engagement on the platform. Users get a daily ‘tip allowance’ to reward their posts of choice, with the recipients being able to claim tokens.
Ads by HypeLab
The flurry of activity comes after Farcaster launched Frames last week, enabling users to embed mini-apps in their posts (called casts on the platform). Community members have been quick to embrace the new feature, launching NFT mints, token airdrops, games and more.
Other notable tokens include FRAME, which peaked at $10M on Jan. 4, and GUAC, which can be claimed daily by Farcaster users.
Meanwhile, most major memecoins have had a rough week, with Solana-based BONK and WIF down 14% and 33%, respectively, in the past seven days. PEPE on Ethereum dropped 12%.
One exception is Pepe Fork (PORK), which has surged to a $250M market capitalization since launching on Jan. 30.
Two Bitcoin ETFs Land In Top 10 January ETF Inflows
BlackRock and Fidelity’s spot Bitcoin ETF products placed in the Top 10 among all ETFs by inflows during January, reports U.S. financial services company Morningstar.
Net flows – deposits minus withdrawals – into BlackRock’s IBIT fund reached $2.7B, whereas Fidelity’s FBTC accounted for $2.3B.
Along with BlackRock and Fidelity, nine other spot Bitcoin ETFs launched on Jan. 11 after months of speculation and a botched tweet from the SEC.
Unlike the other eight funds in the Top 10, both Bitcoin ETFs went live on Jan. 11, meaning they have been trading for less than a full month. This indicates significant interest from investors, notwithstanding Bitcoin’s volatile price action in the weeks following the ETF launch.
Bitcoin tagged $48,494 on Jan. 11, the day the ETFs started trading, only to plummet in the days after due to alleged selling from Bitcoin miners. It has since recovered after bottoming at $38,740 on Jan. 23 and currently trades for $42,819, according to Coingecko.
The Defiant
Join DeFi Alpha
Crypto Markets Rally After Bitcoin ETFs See $400M Of Daily Inflows
Bitcoin’s market capitalization approaches $1T, while Ether trades at $2,500.
By: Pedro Solimano • 10 hours ago
Crypto Markets Rally After Bitcoin ETFs See $400M Of Daily Inflows
It’s been a good week in the crypto markets, with eight of the top 10 tokens by market capitalization posting solid gains over the past seven days.
Bitcoin is currently trading around $47,600 after briefly surpassing the $48,000 mark earlier today, notching a 10.7% gain on the week. Its market capitalization is approaching the trillion-dollar milestone, with Coingecko reporting it at $934B.
BTC Price chart
BTC Price
Ethereum is changing hands for $2,500, a 9% surge over the past seven days. The network’s market cap has surpassed $300B at the time of writing.
hype image
Ads by HypeLab
All top 10 tokens that aren’t stablecoins are enjoying gains. Binance Coin (BNB) lands in third place, trading for $322 with a 7.4% price rise over the past seven days.
Among the top 100 digital assets, Solana memecoin BONK and Layer 1 blockchain Sui are today’s best-performing tokens, gaining 21% and 18%, respectively. Meanwhile, AI project Bittensor is up 15% to $508.
Spot Bitcoin ETFs attract $400M
Driving the short-term gains appears to be rising investor interest in spot Bitcoin ETFs. On Feb. 8, the sector saw $403M in net inflows, the highest since Jan. 17, when inflows topped $453M.
Demand for Bitcoin from the nine ETF providers reached 9,000 BTC yesterday – ten times the amount of Bitcoin that is issued on a daily basis as block rewards.
According to Bloomberg analyst James Seyffart, eight of the nine providers took in money yesterday. Fidelity’s FBTC has surpassed $3B in AUM, while Grayscale’s GBTC outflow streak continued with $101M.
Subscribe to DeFi Daily Newsletter and Get Smarter on DeFi & Web3.
Enter your email
Subscribe
80k+ investors informed every day.
Ether Hits 2-Week High After Ark Amends ETF Filing
By: Owen Fernau February 08, 2024
Ether Hits 2-Week High After Ark Amends ETF Filing
Ether rallied after Ark Invest, an asset management firm known for its tech-forward offerings, amended its filing for a spot ETH ETF on Feb. 7.
One key change from ARK is a cash creation and redemption mechanism, which Bloomberg analyst Eric Balchunas said would “bring [the application] in line with the recently approved spot BTC ETF prospectus.”
The amendment also introduces the possibility of staking the ETH tokens backing the potential ETF.
ETH jumped to $2,421, gaining nearly 2% in an hour. The second largest digital asset hasn’t traded above $2,400 since Jan. 22.
Ads by HypeLab
ETH Price chart
ETH Price
Ark’s Bitcoin ETF, ARKB, was one of eleven approved by the SEC last month. The possibility of a spot ETF for ETH has become a major point of discussion among crypto investors in the wake of similar offerings for BTC.
The SEC has postponed decisions on whether to approve ETF applications for ETH from firms like Grayscale and Blackrock. Asset management firms VanEck and Ark both have pending applications as well. The decision date for the SEC is May 23.
TAO Hits ATH
There are other bright spots in the crypto market.
TAO, the token for the AI-focused Bittensor project, has nearly doubled in the past two weeks, continuing a rally that has seen the token’s price increase nearly 10-fold since mid-October.
TAO 1 year chart
TAO 1 year chart
Dymension’s DYM, which launched yesterday, is up 25% to $6.
JUP, which Solana-based DEX aggregator Jupiter airdropped last week, has also jumped 10% in the last 24 hours. Privacy-focused Monero (XMR) has gained nearly 23% in that span as well.
Subscribe to DeFi Daily Newsletter and Get Smarter on DeFi & Web3.
Enter your email
Subscribe
80k+ investors informed every day.
Farcaster Frenzy Sparks Base Memecoin Mania
By: yyctrader February 07, 2024
Farcaster Frenzy Sparks Base Memecoin Mania
Surging activity on Farcaster, a ‘sufficiently decentralized’ social media protocol, has spawned a new wave of memecoins on Base, the Ethereum Layer 2 network built by Coinbase.
DEGEN, a token launched in early January with an airdrop for active Farcaster users, is down 20% today after rallying more than 1000% in the past week.
DEGEN Price chart
DEGEN Price
A second airdrop is underway with a campaign to incentivize engagement on the platform. Users get a daily ‘tip allowance’ to reward their posts of choice, with the recipients being able to claim tokens.
Ads by HypeLab
The flurry of activity comes after Farcaster launched Frames last week, enabling users to embed mini-apps in their posts (called casts on the platform). Community members have been quick to embrace the new feature, launching NFT mints, token airdrops, games and more.
Other notable tokens include FRAME, which peaked at $10M on Jan. 4, and GUAC, which can be claimed daily by Farcaster users.
Guac Frame Screenshot
Guac Frame Screenshot
Meanwhile, most major memecoins have had a rough week, with Solana-based BONK and WIF down 14% and 33%, respectively, in the past seven days. PEPE on Ethereum dropped 12%.
One exception is Pepe Fork (PORK), which has surged to a $250M market capitalization since launching on Jan. 30.
Subscribe to DeFi Daily Newsletter and Get Smarter on DeFi & Web3.
Enter your email
Subscribe
80k+ investors informed every day.
Two Bitcoin ETFs Land In Top 10 January ETF Inflows
By: Pedro Solimano February 05, 2024
Two Bitcoin ETFs Land In Top 10 January ETF Inflows
BlackRock and Fidelity’s spot Bitcoin ETF products placed in the Top 10 among all ETFs by inflows during January, reports U.S. financial services company Morningstar.
Net flows – deposits minus withdrawals – into BlackRock’s IBIT fund reached $2.7B, whereas Fidelity’s FBTC accounted for $2.3B.
Along with BlackRock and Fidelity, nine other spot Bitcoin ETFs launched on Jan. 11 after months of speculation and a botched tweet from the SEC.
ETF January Flows chart
ETF January Flows
Unlike the other eight funds in the Top 10, both Bitcoin ETFs went live on Jan. 11, meaning they have been trading for less than a full month. This indicates significant interest from investors, notwithstanding Bitcoin’s volatile price action in the weeks following the ETF launch.
Bitcoin tagged $48,494 on Jan. 11, the day the ETFs started trading, only to plummet in the days after due to alleged selling from Bitcoin miners. It has since recovered after bottoming at $38,740 on Jan. 23 and currently trades for $42,819, according to Coingecko.
BTC Price chart
BTC Price
New Bitcoin ETFs help to counter GBTC sales
Not all is rosy in the spot Bitcoin ETF world, however, with Grayscale’s GBTC witnessing the second-largest ETF outflow of January, reaching $5.7B.
The closed-end fund converted to an ETF, and investors could exit their positions at close to the net asset value (NAV). Since late January, outflows have slowly receded from $640M on Jan. 22 to $255M on Jan. 29, as per James Seyffart, an analyst at Bloomberg.
The number could see another spike, however, as Genesis - a beleaguered sister company of Grayscale – files to sell off $1.4B in GBTC shares.
DeFi Alpha
Premium Content
Start for free
The other nine spot Bitcoin ETFs helped to offset the outflows from GBTC, with total flows reaching $1.45B, according to BitMex Research.
“Really something to see the Nine come back from that dip last week and overwhelm GBTC outflows for net positive six days straight totaling half a bil,” wrote Eric Balchunas, senior ETF analyst for Bloomberg.
He went on to conclude that “Typically there's slow decline after a big hyped launch. Strong week 3 (and inflows every single day) shows these ETFs have legs.”
