Bitcoin falls below $90k as equity market goes on 3 day losing streak
Weekly Market Update #61
Major developments for the week:
Spot Bitcoin and Ethereum ETFs: Net flows were $-552.5 million for Bitcoin ETFs and $1.6 million for Ethereum ETFs
Standard Chartered, Animoca Brands, and HKT have formed a joint venture to launch a stablecoin backed by the Hong Kong dollar
The SEC is ending its investigation into OpenSea
Story Protocol has unveiled its technical development roadmap
The Bybit exploiter is laundering stolen funds through memecoins on Pump Fun. Bybit has introduced a recovery bounty program, offering up to 10% of the stolen assets as a reward. The exchange has also fully restored the Ethereum shortfall
Strategy has acquired 20,356 BTC
Franklin Templeton has applied for SEC approval to launch a Solana ETF that includes staking
During the five trading days from 17–21 February 2025, the listed spot Bitcoin ETFs recorded a combined outflow of around $552.5 million. The heaviest losses occurred on 20 February, when withdrawals hit roughly $364.8 million, driven by large redemptions from IBIT (‑$112 million), FBTC (‑$88.2 million), and ARKB (‑$98.3 million). Although BITB (+$24.1 million) and HODL (+$4.2 million) registered modest inflows that day, these were offset by major outflows from BTC (‑$61.1 million) and GBTC (‑$33.5 million). On 18 February, IBIT attracted +$68.4 million, but BITB shed ‑$112.7 million and FBTC lost ‑$16.4 million, resulting in a net daily outflow of ‑$60.7 million. The pattern continued on 19 February (‑$64.1 million) and 21 February (‑$62.9 million), as small inflows into IBIT and HODL were drowned out by substantial redemptions from FBTC, BITB, and especially GBTC (‑$60.1 million on the final day). Across the whole period, FBTC ended down the most (‑$165.5 million), followed by ARKB (‑$107 million) and BITB (‑$105.2 million). Notably, HODL was the only fund to post a net positive flow, finishing at +$4.1 million. Overall, the data reflects strong selling pressure on Bitcoin ETFs, with 20 February accounting for the bulk of the withdrawals.
From 17–21 February 2025, spot Ethereum ETF products posted a combined net inflow of approximately $1.6 million. There was no recorded activity on 17 February, but inflows picked up on the 18th (+$4.6 million) and peaked on the 19th (+$19 million), mainly driven by flows into FETH (+$4.6 million on the 18th and +$24.5 million on the 19th). However, on the 20th and 21st, outflows totalled ‑$13.1 million and ‑$8.9 million respectively, led by redemptions in ETHE (‑$10.3 million on the 20th) and ETHW (‑$8.9 million on the 21st). Despite these late-session selloffs, the early gains in FETH were enough to keep the weekly total in positive territory.
Standard Chartered, Animoca Brands, and HKT Joint Venture (HKD-Backed Stablecoin)
In other news last week, Standard Chartered Bank (Hong Kong), Animoca Brands, and telecommunications firm HKT formed a joint venture to apply for a Hong Kong Monetary Authority licence to issue a Hong Kong dollar–backed stablecoin. By combining Standard Chartered’s secure financial infrastructure, Animoca’s blockchain expertise, and HKT’s extensive mobile payment network, they aim to develop one of Hong Kong’s first regulated stablecoins and explore applications in both domestic and cross-border payments. The initiative aligns with Hong Kong’s efforts to position itself as a global crypto hub, bridging traditional finance with the Web3 ecosystem and encouraging digital asset adoption under a compliant framework.
SEC Closing Investigation into OpenSea
The U.S. Securities and Exchange Commission has closed its investigation into the OpenSea marketplace without filing any enforcement actions alleging that NFTs were unregistered securities. OpenSea’s CEO, Devin Finzer, called the outcome a win for all who are creating and building in the space, asserting that classifying NFTs as securities would have misinterpreted the law and stifled innovation. This result brings relief and clearer regulatory guidance for NFT marketplaces, suggesting that most standard NFT transactions are unlikely to be pursued as securities violations in the near future.
StoryProtocol Reveals Technical Roadmap
Another interesting development came from StoryProtocol, a blockchain network focused on tokenizing intellectual property. It released a technical roadmap detailing major upgrades planned for 2025. A key milestone in the second quarter of that year is the launch of the IP Portal, a user-friendly interface for registering and browsing on-chain IP, described as a consumer-facing “GitHub for IP.” The project will also introduce a Story Attestation Service to verify the legitimacy of on-chain IP assets by confirming social identities and detecting infringements, thereby streamlining and safeguarding the process of bringing IP onto the blockchain.
In the third quarter of 2025, the network’s first post-mainnet upgrade will emphasize performance improvements, such as faster block times and increased throughput. It will also introduce IPKit, an integrated front-end SDK enabling developers to incorporate IP registration, discovery, and monetization features directly into their applications. Moreover, ongoing collaboration with research institutions will drive continuous enhancements to scalability, underscoring the platform’s commitment to innovation.
Bybit Exploiter Laundering Money via Memecoins on Pump Fun
In one of the largest crypto hacks to date, attackers suspected of ties to North Korea–linked Lazarus Group stole approximately $1.4 billion in ETH from the Bybit exchange. Investigators found that the thieves laundered part of the stolen funds by minting memecoins on a Solana-based decentralised platform called Pump.Fun, including one token named “QinShihuang” that reached over $26 million in trading volume as the exploiters moved assets across multiple wallets and chains. Their efforts were thwarted when the Solana community and Pump.Fun operators blocked and delisted the token, preventing further liquidations. Bybit praised the swift, community-led action that helped contain the incident.
Since then, Bybit has replenished its Ethereum holdings through OTC deals and loans, fully covering the 499,000 ETH gap to maintain 1:1 backing of client assets. In February, the exchange launched a “Recovery Bounty Programme,” offering up to 10% of the stolen sum (around $140 million) to ethical hackers or intelligence providers who help reclaim the funds. Bybit is also collaborating with other exchanges, stablecoin issuers, and blockchain organizations to freeze and retrieve the laundered assets: so far, about $43 million has been successfully frozen. These coordinated efforts aim to minimize user impact and deter future cyber attacks.
Strategy Acquires 20,356 BTC
Michael Saylor’s firm Strategy (formerly MicroStrategy) has made a substantial purchase of 20,356 BTC at an average price of around $97,514 each, amounting to roughly $1.99 billion. This acquisition was funded through a $2 billion convertible note offering as part of its “21/21 Plan,” designed to raise $42 billion over three years for further Bitcoin investments. The transaction brings Strategy’s total Bitcoin holdings to around 499,096 BTC (about 2.4% of the entire supply). Though the over-the-counter purchase has little immediate market impact, it underscores Saylor’s confidence in Bitcoin’s long-term value and signals a robust institutional appetite for digital assets.
Franklin Templeton’s Solana ETF Filing (with Staking)
The final update of this week comes from the asset management giant Franklin Templeton who has filed a registration proposal with the SEC for a Solana ETF that would incorporate staking. The fund plans to hold SOL for investors and stake some of its holdings with trusted providers, generating staking rewards. Franklin Templeton would oversee the staking process and manage any returns, aiming to distribute these yields to ETF shareholders. This follows earlier filings for a Solana Trust and mirrors previous attempts at staking-based ETFs for Ethereum, which were shelved in 2024 due to regulatory reservations.
If approved, the Franklin Templeton Solana ETF would mark a significant expansion in institutional crypto offerings by giving traditional investors regulated exposure to both Solana’s price movements and its staking rewards. It may also pave the way for additional Proof-of-Stake assets to enter mainstream investment portfolios and indicate growing acceptance of crypto ETFs beyond Bitcoin.
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