ETF Exodus, Stablecoin Drama & Babylon’s Bitcoin Bet
Weekly Market Update #65
In partnership with Elementus
Happy start to the week! Welcome back to the Reflexivity Weekly Market Update — your concise rundown of the biggest moves in crypto. If someone forwarded this to you, you can sign up here for free to get it straight to your inbox!
Today’s Market Update is in partnership with Elementus. Delivering preeminent on-chain intelligence, Elementus provides macro and micro-level visibility for investment, compliance, and DeFi projects.
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Major Market Developments:
😨Sentiment tanks: Fear & Greed Index drops to 17 as traders brace for more macro uncertainty
📊 ETF Flows: Bitcoin ETFs bleed over $100M despite mid-week inflows; Ethereum ETFs slip $56M
🕵️ Tether stacks BTC: Another $735M worth of Bitcoin added to reserves
🔧 Circle files for IPO: USDC issuer reveals solid profits, aims for NYSE listing
🚫 $70M hack hits UPCX: Yet another DeFi exploit rocks sentiment
🎈 Airdrop season intensifies: Initia, Hyperlane, Babylon, and more rain tokens on active users
🚫 sUSD Depegs, TUSD bailout, SEC clarity: A volatile week for stablecoins — some breaking, some being legitimized
👩💼 Institutions go on-chain: BNY Mellon, BlackRock, Sony, and SMBC embrace blockchain rails
Fear & Greed Index:
Markets remain on edge. The Fear & Greed Index dropped to 17, its lowest in weeks, as ETF outflows, hacks, and macro pressure (tariff fears, rate concerns) sap confidence. Despite regulatory tailwinds (SEC stablecoin clarity, Circle IPO filing), investor psychology has clearly shifted to caution.
ETF Flows:
Bitcoin ETFs saw net redemptions of just over $100M for the week despite a big $218M mid-week inflow (Apr 2), mainly into ARKB and FBTC. Outflows resumed sharply on Thursday and Friday, led by GBTC and BITB.
Ethereum ETFs slipped more quietly, with - $50M in net weekly outflows. The bulk came mid-week as ETHA and ETHE dumped over $50M combined.
Spotlight 🔦
Babylon Genesis is the first Bitcoin-Secured Network (BSN), integrating Bitcoin staking and timestamping to harness Bitcoin’s security. It comprises three components: a Layer 1 blockchain secured by Bitcoin, a coordination layer for integrating additional BSNs, and a liquidity hub managing Bitcoin on-chain.
The native token, $BABY, underpins the Babylon ecosystem. It functions as gas for transactions, empowers governance, and anchors a dual staking mechanism involving both BABY and BTC. This structure rewards stakers and ensures robust, decentralized security.
BABY’s supply is inflationary and adjustable via on-chain governance. Token distribution totals 10 billion BABY, allocated as follows:
Rapid Reflexivity: Quick Market Takes ⚡
Tether buys 8,888 BTC: Tether adds ~$735M worth of BTC to reserves, reinforcing the “Bitcoin-as-treasury” narrative.
Circle files for IPO: USDC issuer discloses $1.68B in 2024 revenue. Strong signal for stablecoin legitimacy.
Sony SG accepts USDC: Sony’s Singapore arm now takes USDC payments online. Real-world stablecoin usage goes mainstream.
VanEck registers BNB ETF trust: First formal step toward a US-listed BNB product.
Justin Sun bailed out TUSD: $450M backstop uncovered in court filings. Stablecoin opacity under scrutiny again.
$70M hack at UPCX: Smart contract exploit highlights lingering DeFi risk. Platform paused.
Hyperlane, Initia airdrops announced: April will be an active month for token distributions.
sUSD depegs to $0.94-$0.96: Liquidity crunch and protocol changes stress Synthetix stablecoin.
Babylon's airdrop triggers $21M in BTC unstaking: Post-airdrop sell pressure hits new Bitcoin staking protocol.
BNY + BlackRock go on-chain: Real-time fund accounting now on Ethereum via BNY’s new platform.
SEC says covered stablecoins aren't securities: Huge win for USDC, USDP. Regulatory clarity fuels optimism.
SMBC x Ava Labs stablecoin MoU: Japan’s second-largest bank gets serious about blockchain settlements.
Mantle unveils crypto banking + index fund: MI4 tokenized index and fiat-crypto integration push DeFi utility forward.
EigenLayer to enable slashing: Launching Apr 17, boosting security for Ethereum’s restaking ecosystem.
For the final update of this week we will take a quick glance at the best and worst performers.
$EOS was the top performer of the last week following a major rebranding initiative, transitioning to 'Vaulta' with a focus on blockchain-powered banking solutions. This strategic shift aims to enhance real-world applicability and has generated substantial investor interest.
The biggest losers of the week all faced over a 30% decline in value over the trading period.
Disclaimer: This research report is exactly that — a research report. It 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.