Research Summary
The report discusses the surge in Bitcoin ETF inflows, opposition to the SEC’s restrictive rules on banks dealing with crypto, and the announcement of StarkNet’s airdrop. It also highlights the rising confidence among U.S. investors in Bitcoin ETFs and the potential impact of Bitcoin’s fourth halving on the market.
Key Takeaways
Bitcoin ETFs Gain Momentum
- Surge in Bitcoin ETF Inflows: Bitcoin ETFs recorded their strongest day since launch on February 13, 2024, with $631m in positive net inflows. BlackRock’s spot BTC ETF saw $493m of net inflows, representing 70% of the total spot BTC ETF flows that day. Fidelity’s spot BTC ETF recorded $163.6m in net inflows, approximately 23% of the total spot BTC ETF flows.
- Increasing Confidence in Bitcoin ETFs: The rising net inflows into BTC spot ETFs suggest increasing confidence among U.S. investors. Bitcoin ETF providers and funds now hold 3.9% of BTC’s circulating supply, surpassing the holdings of publicly traded miners (3.4%) and businesses (3.6%).
SEC’s Restrictive Rules on Banks and Crypto
- Opposition to SEC’s Crypto Guidance: A coalition of bank trade groups has called for the SEC to overturn S.A.B. 121, a guidance that effectively prohibits banks from holding crypto assets. The rule has made it economically impossible for banks to offer cryptoasset custody services due to the increase in regulatory capital they’d be required to hold.
StarkNet’s STRK Token Launch
- StarkNet’s STRK Token to Launch: Starknet Foundation announced the Starknet Provisions Program that will distribute the first allocation of Starknet Tokens (STRK) to the community. The STRK token will be used for paying network fees, participation in governance, and staking within PoS model with a decentralized network of sequencers.
Solana Users Paying Elevated Priority Fees
- Increased Priority Fees on Solana: Solana users have paid a total of $18.2m in priority fees since the start of 2024, compared to just $6.6m in the last four months of 2023. Increased use of the network has made transaction inclusion more competitive, prompting users to add priority incentives to validators.
Actionable Insights
- Monitor Bitcoin ETF Inflows: The surge in Bitcoin ETF inflows indicates a growing interest and confidence in Bitcoin among investors. It’s crucial to keep an eye on these trends as they could significantly impact the Bitcoin market.
- Understand the Impact of Regulatory Decisions: The SEC’s restrictive rules on banks and crypto have significant implications for the crypto market. Understanding these regulations can help in making informed decisions about crypto investments.
- Explore New Crypto Tokens: The launch of StarkNet’s STRK token presents an opportunity to explore new crypto tokens and understand their potential impact on the market.
- Consider the Impact of Network Fees: The increase in priority fees on Solana highlights the importance of considering network fees when investing in or using a particular blockchain network.
