Bitcoin Market Update
Bitcoin (BTCUSD) traded flat as the cryptocurrency markets geared up for the highly anticipated bitcoin halving event scheduled for later this week. Spot bitcoin exchange-traded funds (ETFs) experienced net outflows, marking a rare occurrence in the new asset class.
Spot Bitcoin ETFs Experience Net Outflows
Last week, U.S. spot bitcoin ETFs reported net outflows, a phenomenon that has only been observed three times since their introduction in January. Between April 8 and April 12, these funds, consisting of 11 ETFs, saw a total loss of approximately $83 million in assets, as reported by BitMEX Research. This significant shift follows the previous week’s net inflows of $485 million. Despite this setback, spot bitcoin ETFs have accumulated a total of $12.5 billion in net positive inflows since their inception.
- Grayscale Bitcoin Trust ETF (GBTC) witnessed a decline, with $767 million exiting the fund last week.
- Other prominent funds like BlackRock’s iShares Bitcoin Trust (IBIT) and the Fidelity Wise Origin Bitcoin Fund (FBTC) saw inflows of $487 million and $90 million, respectively.
Uniswap Labs and SEC Notice
Decentralized exchange Uniswap Labs disclosed receiving a Wells notice from the U.S. Securities and Exchange Commission (SEC), signaling potential enforcement actions. This news led to a sharp drop in the price of Uniswap’s native token, UNI. Uniswap Labs CEO Hayden Adams expressed readiness to contest the charges outlined in the notice.
Monad Labs Funding News
Monad Labs recently raised $225 million in a funding round led by Paradigm, aimed at further developing its Layer 1 blockchain to compete with the likes of Ethereum and Solana. This financial support will enable Monad to expand its team and enhance the capabilities of its blockchain technology.
- The Layer 1 blockchain by Monad maintains compatibility with the Ethereum Virtual Machine (EVM).
- Monad’s testnet, launched in March, has demonstrated the capacity to handle around 10,000 transactions per second, a significant increase compared to Ethereum’s current throughput.
Market Outlook for the Week
All eyes are on the upcoming bitcoin halving event, expected to occur by the end of the month. This event, which reduces the rate of new bitcoin issuance, has historically influenced market dynamics. However, industry reports suggest that the spot bitcoin ETF market may play a more significant role in shaping supply-and-demand dynamics for bitcoin at present.
Miners are anticipating changes in revenue following the halving, with potential impacts on both bitcoin-denominated revenue and dollar terms. Developments in Layer 2 networks and other solutions are also expected to impact the cryptocurrency market in the coming days.