Research Summary
The report discusses the recent surge in Bitcoin’s market, the proposal by Uniswap Foundation to activate the “fee switch,” and Robinhood’s integration with Arbitrum, an Ethereum L2. It also highlights the significant net inflows into spot BTC ETFs and the potential impact of the Bitcoin ETF story on wealth managers and financial advisors.
Key Takeaways
Bitcoin’s Market Surge
- Bitcoin’s Recovery: Bitcoin touched $64k for the first time since November 15, 2021, and is now 10% away from its all-time high. Spot BTC ETFs saw a net inflow of $1.77bn from February 26 to February 28, with Blackrock’s BTC ETF ($IBIT) seeing $1.24bn in net inflows during this time.
Uniswap Foundation’s Proposal
- Uniswap’s Fee Switch: The Uniswap Foundation has proposed to activate the “fee switch,” which would enable the distribution of protocol fees to UNI token holders. The proposal is currently being debated on the Uniswap governance forum.
Robinhood’s Integration with Arbitrum
- Robinhood and Arbitrum Collaboration: Robinhood and Arbitrum announced a collaboration to facilitate the onboarding of new users to web3. Robinhood is integrating Arbitrum’s L2 technology to power low-fee in-app swaps for Robinhood Wallet users.
Spot BTC ETFs’ Net Inflows
- Spot BTC ETFs’ Inflows: Spot BTC ETFs are currently extracting 10x-11x the amount of newly-produced BTC from the market than BTC issued daily from the block reward. If the current BTC ETF inflows hold or even increase over the next 51 days, the Bitcoin ETFs will be taking +20x more BTC off the market than the daily issuance.
Bitcoin ETFs’ Impact on Wealth Managers and Financial Advisors
- Bitcoin ETFs’ Influence: The increased access to the spot BTC ETFs for wealth managers and financial advisors in the U.S will inevitably contribute to the acceleration of net inflows. Wells Fargo and BOA’s Merrill Lynch announced that they will begin offering the spot BTC ETF to clients on their brokerage platforms on an unsolicited basis.
Actionable Insights
- Monitor Bitcoin’s Market: With Bitcoin’s recent surge and its proximity to its all-time high, it’s crucial to keep a close eye on the market trends and developments.
- Understand the Implications of Uniswap’s Proposal: The proposal to activate the “fee switch” could have significant implications for UNI token holders. Understanding these implications can help in making informed decisions.
- Assess the Impact of Robinhood’s Integration with Arbitrum: The collaboration between Robinhood and Arbitrum could potentially facilitate the onboarding of new users to web3. Assessing the impact of this integration can provide insights into future trends.
- Track the Inflows into Spot BTC ETFs: The significant net inflows into spot BTC ETFs could have a substantial impact on the Bitcoin market. Tracking these inflows can provide valuable insights into market trends.
- Consider the Influence of Bitcoin ETFs on Wealth Managers and Financial Advisors: The increased access to spot BTC ETFs for wealth managers and financial advisors could accelerate net inflows. Considering this influence can help in understanding the potential impact on the market.
