Bitcoin

U.S. Bitcoin ETFs Post Year’s 2nd-Biggest Outflows, More May Be on the Way

Published

1 month ago

February 25, 2025

U.S. spot-listed bitcoin (BTC) exchange-traded funds (ETFs) experienced the second-biggest outflows of the year on Monday, dropping $516.4 million, Farside data shows.

The withdrawals, the ninth net outflow in 10 days, reflect a growing discomfort with the largest cryptocurrency, which has traded in a narrow price range between $94,000 and $100,000 for most of this month.

On Tuesday, bitcoin broke out of its three-month channel, falling below $90,000 and sliding to as low as $88,250.

According to Velo data, the bitcoin CME annualized basis — the difference between the spot price and futures — has dropped to 4%. This is the lowest since the ETFs started trading in January 2024. This is also known as the cash-and-carry trade, which is a market-neutral strategy that seeks to profit from the mispricing between the two markets.

The strategy involves taking a long position in the spot market and a short position in the futures market. Velo data shows a one-month futures forward contract. Investors collect a premium between the spread of the spot and futures pricing until the futures contract expiry date closes.

At the current level, the basis trade is less than the so-called risk-free rate, the yield on the U.S. 10-year Treasury of 5%. The difference may persuade investors to close their positions in favor of the greater return. That could see further outflows from the ETFs. Because this is a neutral strategy, investors will also have to close their short position in the futures market.

Arthur Hayes, the co-founder of Bitmex, alludes to the basis trade unravelling in a post on X.

“Lots of IBIT holders are hedge funds that went long ETF short CME future to earn a yield greater than where they fund, short term US treasuries,” he wrote. “If that basis drops as bitcoin falls, then these funds will sell IBIT and buy back CME futures. These funds are in profit, and given basis is close to UST yields they will unwind during US hours and realise their profit. $70,000 I see you mofo!”

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analysts

Tariffs, Trade Tensions May Be Positive for Bitcoin (BTC) Adoption in Medium Term: Grayscale

Published

11 hours ago

April 10, 2025

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Tariffs and trade tensions could ultimately be positive for bitcoin (BTC) adoption in the medium term, asset manager Grayscale said in a research report Wednesday.

Higher tariffs result in stagflation— stagnant economic growth coupled with inflation — which is negative for traditional assets, but positive for scarce commodities such as gold, the report said.

Bitcoin is considered hard money, akin to digital gold, and is viewed as a modern store of value, the report noted.

Cryptocurrencies surged on Wednesday following President Donald Trump’s announcement of a 90-day pause on tariffs for countries that haven’t retaliated against the U.S.

“Trade tensions may put pressure on reserve demand for the U.S. Dollar, opening space for competing assets, including other fiat currencies, gold, and bitcoin,” Grayscale said.

Historical precedent suggests that dollar weakness and above-average inflation may persist, and bitcoin is likely to benefit from such a macro backdrop, the asset manager said.

“A rapidly improving market structure, supported by U.S. government policy changes” could help broaden bitcoin’s investor base, the report added.

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Bitcoin

Jack Dorsey’s Block Launches Open Source Tools To Simplify Bitcoin Treasury Management

Published

1 day ago

April 9, 2025

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Block announced it has released a new open source toolkit designed to help companies manage their Bitcoin treasury holdings more efficiently. The release includes a corporate Bitcoin holdings dashboard and a BTC-to-USD real-time price quote API, now available for all companies and developers via Block’s public GitHub repository under the Block Open Source initiative.

As Bitcoin adoption grows among institutional treasuries, businesses are seeking better tools to track and report their holdings. Block’s new dashboard directly addresses these needs, offering real-time visibility, simplicity, and adaptability.

The dashboard aims to help companies monitor the dollar value of their Bitcoin holdings through a user-friendly interface designed for both finance teams and executives. It integrates real-time pricing data via an open source BTC/USD quote API, with future plans for quarter-end historical lookup features to support financial reporting. Block has invited feedback and feature requests from the open source community via GitHub Issues.

Block further highlighted that companies are increasingly turning to Bitcoin for a variety of strategic reasons:

Diversification: Adding Bitcoin alongside traditional treasury assets.
Ecosystem support: Demonstrating alignment with Bitcoin innovation, particularly for crypto-forward businesses.
Inflation hedge: Serving as a store of value in the face of fiat currency devaluation.
Portfolio optimization: Aiming to enhance risk-adjusted returns.

The first working prototype of the dashboard was created by non-engineers using Block’s internal open source AI agent, called codename goose. The AI agent enabled non-technical teams to prototype tools rapidly, with engineers from Block’s Bitcoin Platform team joining later to finalize development. Codename goose also contributed to front-end development via automated coding assistance.

Block has long been a corporate leader in Bitcoin investment. Its Bitcoin Investment Memo from October 2020 and its Bitcoin Blueprint for Corporate Balance Sheets laid the foundation for businesses entering the crypto space. Block said it continues to purchase Bitcoin through a monthly dollar-cost averaging (DCA) program and updates its dashboard quarterly after earnings reports. Its live Bitcoin treasury dashboard can be viewed here.

With this release, Block emphasized that it aims to empower other companies to manage Bitcoin on their balance sheets more confidently and transparently, further accelerating mainstream adoption of the world’s leading digital asset.

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Altcoin

Why Isn’t XRP Skyrocketing? Expert Explains The Hidden Forces

Published

1 day ago

April 9, 2025

admin

XRP prices dipped below $2 for the first time since December 2024 on Monday, even after a number of positive developments for the cryptocurrency.

The decline is surprising to many investors who had hoped recent good news would send its value higher. Market analyst Vincent Van Code attributes this underperformance to underlying economic issues and not with XRP itself.

Trump Tariffs Are Blamed For Crypto Market Decline

Van Code attributes the recent decline in cryptocurrencies to the tariffs imposed by US President Donald Trump on other nations.

The tariff situation is just a power play to utilize economic pressure to get better negotiating terms, said Van Code. He expects these trade tensions to be short-term and perhaps pave the way for the market to rebound in the near future.

Current #XRP prices are not aligned with recent @Ripple market announcenets, SEC case conclusion news, XRP US stockpile.
Do you think this is becuase XRP is not performing well?
I DONT! This is a global market downturn. Impacts across multiple markets, multiple countries, and…
— Vincent Van Code (@vincent_vancode) April 9, 2025

XRP Fundamentals Strong

Even after falling to $1.64 on April 7, XRP has shown a rebound by increasing to $1.82—a 10% increase. Van Code pointed out that Ripple and XRP’s fundamental strengths have not changed. They’re a hundred times better than a year ago when the SEC lawsuit was at its peak, he said.

The SEC-Ripple case resolution, potential inclusion in US digital asset reserves, and Ripple’s Hidden Road acquisition were all considered positive developments for the cryptocurrency.

Investment Strategy During Market Uncertainty

Van Code described his approach to today’s market condition, showing he buys such assets like XRP when sentiment is low but fundamentals remain in place.

He looks at weekly charts for larger decisions and uses hourly charts for intraday action. The market commentator termed XRP the “Fight Club” of cryptos because of its ability to withstand market action and stress.

Future Growth Drivers For XRP

Going forward, Van Code identified three key drivers to XRP adoption: regulation, corporate usage, and solid partnerships. He warned investors to avoid being influenced by short-term price fluctuations due to outside influences such as the tariff scenario.

The analyst said that he would only be jittery if XRP was the sole cryptocurrency that is dropping in value. He also stated that the current decline is part of a larger market trend and not particular to XRP.

The cryptocurrency market still responds to economic policy as investors look for indications that the tariff issue is resolved. Most XRP supporters are optimistic that as soon as these external pressures are gone, the price will more accurately reflect the good news surrounding Ripple and its currency.

Featured image from Unsplash, chart from TradingView

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