A strong week of BTC ETF inflows is capped with Pump.fun launching its own DEX
Weekly Market Update #65
Weekly Market Update
Before diving into this week’s round-up, be sure to check out some of our recently released research content:
Major developments for the week:
Spot Bitcoin and Ethereum ETFs: Net flows were $744.3 million for Bitcoin ETFs and -$102.9 million for Ethereum ETFs
Strategy has acquired more BTC
Ethena Labs unveils the Convergeonchain Settlement Layer, connecting traditional finance with DeFi
The SEC ends its legal case against Ripple, signaling a shift in regulatory policy
Hyperliquid introduces new HYPE Staking Tiers, offering users lower trading fees
NillionNetwork reveals its token strategy, detailing future allocation and utility
Pumpdotfun launches PumpSwap, a dedicated decentralized exchange for its tokens
Berachain’s Proof-of-Liquidity model is set to launch today, 24 March
Fidelity intends to release a Digital Dollar stablecoin backed by Treasury bills
SEC Drops Long-Running Ripple XRP Lawsuit
Last week, in a landmark shift for crypto regulation, the SEC formally dropped its lawsuit against Ripple Labs concerning XRP. Ripple CEO Brad Garlinghouse announced the news, calling it “a resounding victory for Ripple, for crypto, every way you look at it.” The case, originally filed in late 2020 under then-SEC Chair Gary Gensler, alleged XRP was an unregistered security; its dismissal ends a four-year legal battle that Garlinghouse characterized as “doomed from the start.” Many view this outcome as part of a broader policy reversal under the current administration, with the SEC withdrawing several other crypto-related actions. XRP’s price jumped over 12% within 24 hours of the announcement as investors welcomed the end of a significant regulatory overhang. The result is widely seen as a positive precedent for the crypto industry’s future relationship with U.S. regulators.
Moving onto ETF flows, From 17 to 21 March 2025, spot Bitcoin ETFs saw robust net inflows totaling $744.3 million, sharply contrasting the outflows in Ethereum funds. The inflow was dominated by BlackRock’s IBIT, which attracted $537.5 million across the five trading days, including a single-day spike of $218.1 million on 18 March. Fidelity’s FBTC followed with $136.5 million, all front-loaded into the week. ARKB also contributed positively, pulling in $79.5 million. Net flows were further supported by modest gains in HODL ($11.9 million) and BTC ($23.9 million), while other products were either flat or negative. BITB had a volatile week, ultimately ending down $3 million due to a sharp $17.4 million outflow on 20 March. GBTC bled $24.5 million overall, with the largest daily redemption of $21.9 million on 21 March, continuing its trend of structural outflows post-conversion. BTCO and EZBC also saw minor drawdowns. The strength and consistency of flows into leading issuers signal ongoing institutional appetite for spot Bitcoin exposure, with capital concentrating into the most established funds.
Strategy Increases Bitcoin Holdings to 499,226 BTC
Business intelligence firm Strategy (formerly MicroStrategy) acquired an additional 130 BTC last week for approximately $10.7 million, bringing its total holdings to around 499,226 BTC. This stash (purchased at an average price of roughly $66,360 per coin ) now represents over 2% of Bitcoin’s total supply, solidifying Strategy’s position as the world’s largest corporate Bitcoin holder. The latest purchase was financed through proceeds from a new preferred stock issuance, reflecting the company’s continued commitment to Bitcoin accumulation. Co-founder Michael Saylor hailed the milestone as further evidence of Bitcoin’s viability as a treasury reserve asset.
Strategy Launches $500 Million ‘Strife’ Preferred Stock Offering
In other Strategy news, they have also announced plans to offer five million shares of a new Series A perpetual preferred stock (dubbed “Strife,” ticker STRF), paying a 10% annual dividend. The offering aims to raise about $500 million in fresh capital, which the company intends to use for general purposes, including buying more Bitcoin. This move follows Strategy’s previous 8% yield preferred program (STRK) and underscores its aggressive approach to expanding its Bitcoin treasury. By issuing high-yield preferred shares (senior to common stock in a liquidation), Strategy is leveraging equity markets to bolster its crypto war chest. Executive Chairman Michael Saylor described the offering as an example of innovative corporate finance, aligning long-term shareholders with the firm’s Bitcoin-focused strategy.
Between 17 and 21 March 2025, spot Ethereum ETFs experienced consistent net outflows totaling $102.9 million. The bulk of redemptions came from the ETHA fund, which alone shed $74 million over the five-day span. Significant outflows were also recorded from Grayscale’s ETH product, down $23.7 million, and FETH, which lost $8.8 million. In contrast, only two funds recorded any inflows: CETH saw a modest $0.7 million addition on 19 March, while ETHE registered a $10.2 million inflow on the same day but remained positive only $2.9 million overall due to prior outflows. The flows were notably one-sided, with no movement at all in several ETFs, including ETHW, ETHV, QETH, and EZET. The largest single-day outflow occurred on 18 March, with $52.8 million withdrawn, driven by heavy redemptions from ETHA and Grayscale. The lack of meaningful inflows and widespread stagnation across most funds suggests investor sentiment remained firmly risk-off throughout the week.
Fidelity Files for On-Chain U.S. Treasury Fund on Ethereum
In other Ethereum-related news, Fidelity has filed with the SEC to register a blockchain-based share class of its U.S. Dollar Treasury Money Market Fund, joining the growing trend of tokenizing traditional assets. In a March 21 submission, Fidelity proposed an “OnChain” share class for its Fidelity Treasury Digital Fund (ticker FYHXX), which would use the Ethereum network for record-keeping and transfers. The fund’s underlying assets remain unchanged, but ownership of the new share class can be tracked and transferred on-chain, with Fidelity’s transfer agent reconciling the records daily. Pending regulatory approval, the on-chain fund may launch around May 30, 2025. Fidelity, which manages $5.8 trillion in assets, is the latest Wall Street giant to explore tokenized securities: a market already worth billions in tokenized U.S. Treasury assets. Offering improved transparency and faster settlement, Fidelity’s initiative underscores the mainstream adoption of asset tokenization as major financial institutions modernize their products with blockchain technology.
Hyperliquid Introduces HYPE Staking Tiers for Lower Fees
In other news, the decentralized exchange Hyperliquid is rolling out a new staking tier system for its native token HYPE, offering users reduced trading fees in exchange for staking. Under the program which is set to begin around April 30, traders who stake HYPE can unlock fee discounts of up to 40%, depending on the amount staked.
Meanwhile, Hyperliquid is raising its base fees for non-stakers; for instance, the default spot trading taker fee will double from 0.035% to 0.07%. The top “Diamond” tier requires staking 500,000 HYPE to achieve the full 40% discount, while lower tiers (Wood, Bronze, Silver, Gold, Platinum) offer smaller reductions. Hyperliquid says these changes aim to boost protocol revenue and increase HYPE’s utility, effectively incentivizing user loyalty through token economics.
Pump.fun Launches PumpSwap Decentralized Exchange
The final update of this week comes from the Solana-based memecoin launchpad Pump.fun which has launched its own decentralized exchange, PumpSwap, to facilitate trading for tokens created on its platform. PumpSwap is an automated market maker DEX enabling new Pump.fun tokens to be traded instantly without needing an external listing. Previously, tokens finishing Pump.fun’s bonding curve sales migrated to Raydium with a 6 SOL fee, but PumpSwap now provides fee-free, immediate liquidity migration to its native exchange.
The launch follows a roughly 60% drop in Pump.fun’s fee revenue over the past month, prompting a move to recapture trading volume and user engagement. PumpSwap v1 charges a 0.25% swap fee (0.20% going to liquidity providers and 0.05% to the protocol) and has undergone multiple security audits. By building an in-house DEX, Pump.fun hopes to strengthen its ecosystem and reduce reliance on external exchanges for the memecoin mania it supports.
Disclaimer: This report is not intended to serve as financial advice, nor should you blindly assume that any of the information is accurate without confirming through your own research. Bitcoin, cryptocurrencies, and other digital assets are incredibly risky and nothing in this report should be considered an endorsement to buy or sell any asset. Never invest more than you are willing to lose and understand the risk that you are taking. Do your own research. All information in this report is for educational purposes only and should not be the basis for any investment decisions that you make.