Web3🌗Wednesday News Roundup: ARK ETF Outflows, Bitfinex Volatility Bets, Ethena's $1.2B Cap, KBW's Coinbase Forecast
1. ARK Bitcoin ETF records $87M outflows, surpassing GBTC.
2. Bitfinex Derivatives introduces Bitcoin and Ether implied volatility bets.
3. Ethena launches with a $1.2 billion market cap.
4. KBW sets Coinbase's target at $230 amid a 40% YTD surge, expanding its services beyond the exchange.
Stay tuned for details!✨
Welcome to the latest edition of our Web3 roundup! Today, we're delving into the dynamic world of cryptocurrencies and blockchain technology, where significant developments continue to unfold. Join us as we explore the latest news and trends shaping the Web3 landscape, providing insights into the ever-evolving crypto ecosystem. Whether you're a seasoned investor or just dipping your toes into the world of decentralized finance, there's something here for everyone. So, let's dive in and discover what's happening in the world of Web3!
1. ARK Bitcoin ETF records $87M outflows, surpassing GBTC.
Cathie Wood’s ARK 21Shares Bitcoin exchange-traded fund (ETF) has experienced a significant daily outflow of over $87 million, surpassing Grayscale’s Bitcoin Trust (GBTC) for the first time since the launch of spot Bitcoin ETFs in the United States. The outflows from ARKB totaled $87.5 million on April 2, marking the second consecutive day of outflows. Meanwhile, GBTC witnessed a relatively low outflow day of $81.9 million, despite consistently shedding around $254 million per day over the past five trading days. Despite the recent outflows, ARKB remains the third-largest among newly launched spot ETFs, with $2.2 billion in assets under management (AUM). Additionally, the launch of 2x and -2x leveraged spot Bitcoin ETFs indicates increasing market volatility, with Bitcoin ETFs trading around $111 billion in volume in March, nearly triple the volume of February and January combined.
Martin Young
2. Bitfinex Derivatives introduces Bitcoin and Ether implied volatility bets.
Bitfinex Derivatives launches perpetual futures tied to Volmex's BTC and ETH implied volatility indices, enabling users to speculate on cryptocurrency price fluctuations. These futures, based on real-time options data, mirror Wall Street's VIX index, offering insights into expected turbulence over 30 days. Traders can trade BTC and ETH volatility futures denominated in USDT, enhancing their ability to navigate market uncertainties and capitalize on price swings. This move follows Deribit's introduction of similar contracts last year, further expanding the range of trading instruments available in the crypto derivatives market.
Omkar Godbole
3. Ethena launches with a $1.2 billion market cap.
Despite controversy and complex operational structure, Ethena Labs launches $ENA governance token and expands USDe stablecoin, drawing over $1.2 billion in backing. Criticized for past misleading press releases and perceived risks, it stands as the 80th most valuable cryptocurrency. Understanding its intricate mechanisms is paramount before considering investment. $ENA holders wield power akin to shareholders in corporate governance. The protocol relies on Ethereum and staked Ethereum as collateral, with delta hedging employed to stabilize USDe's value against Ethereum's price fluctuations. This strategy involves a complex system of derivatives contracts and off-exchange settlement mechanisms, blending centralized and decentralized elements for efficiency and security. While trading $ENA is available on major exchanges, its sophisticated nature demands careful consideration and research for potential investors.
Jose Antonio Lanz
4. KBW sets Coinbase's target at $230 amid a 40% YTD surge, expanding its services beyond the exchange.
KBW has upped Coinbase's price target to $230, reflecting growth in USDC and trading volumes, despite regulatory hurdles. Coinbase's stock soared over 40% year-to-date, prompting KBW to increase its target from $160. The rise is attributed to surging USD Coin balances, up 32% in Q1, and a spike in trading volumes, hitting $5.1 billion ADV in March. However, legal battles with the SEC pose risks to institutional investment. Despite challenges, Coinbase diversifies its services, expanding into ancillary sectors like derivatives trading and Web3 development. JMP Securities maintains a bullish outlook, with a $300 target, anticipating Bitcoin ETF adoption and traditional wealth management capital inflow. Coinbase actively engages in political advocacy to navigate regulatory uncertainties, showcasing its commitment to fostering a favorable crypto regulatory environment.
As we conclude this edition of our Web3 roundup, we've witnessed the remarkable momentum and innovation driving the cryptocurrency and blockchain industry forward. From groundbreaking ETF developments to the emergence of new projects like Ethena, it's clear that the world of decentralized finance continues to evolve at a rapid pace. As we navigate through these exciting times, it's essential to stay informed, adaptable, and open-minded to the opportunities and challenges that lie ahead. Whether you're an investor, developer, or simply curious about the future of finance, we hope this roundup has provided valuable insights and inspiration. Remember to stay tuned for future updates as we continue to explore the ever-changing landscape of Web3. Thank you for joining us on this journey, and until next time, happy exploring!
