Market gauges new year ETF flows as Ethena unveils 2025 roadmap
Weekly Market Update #55
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 $256 million for Bitcoin ETFs and -$38.1 million for Ethereum ETFs.
MicroStrategy aims to raise as much as $2 billion through a preferred stock offering.
MicroStrategy also acquired 1,070 BTC for about $101 million, at an average price of roughly $94,004 per coin.
Strive filed paperwork to introduce a “Bitcoin bond” ETF.
Synapse Protocol rolled out $CX and launched staking for $SYN.
SonicSVM unveiled the $SONIC token alongside its TGE date.
Ethena Labs presented their 2025 Roadmap, titled “Convergence.”
Story Protocol debuted its foundation website.
The Frax Finance frxUSD proposal was passed.
Over this five‐day period, the standout developments are the net outflows from IBIT (–$139.5 million) and GBTC (–$167.2 million), offset by notable inflows into FBTC ($275.4 million), ARKB ($201.5 million) and BITB ($86.7 million). The most dramatic single‐day drop occurred on 2 January, mainly driven by IBIT shedding $332.6 million, while the subsequent day saw a sweeping rebound led by significant inflows into IBIT, FBTC, ARKB and BITB. With 1 January showing no recorded activity, the overall result is a positive total flow of around $256 million across the BTC ETFs.
BTC annualized return by session also flipped positive for all sessions last week with Europe leading the way at +6.79%.
Sectoral performance for the week was clearly dominated by AI and Gaming both coming in at +24.90% and 22.57% respectively. It will be interesting to monitor these respective performances as the month progresses.
MicroStrategy aims to raise as much as $2 billion
In the first quarter of 2025, MicroStrategy aims to raise as much as $2 billion through public offerings of perpetual preferred stock. This funding will underpin its ambitious Bitcoin acquisition efforts and fortify its balance sheet, aligning with the company’s broader “21/21 Plan” to secure $42 billion over three years via equity and fixed-income instruments. Features of the proposed preferred stock may include convertibility, cash dividends, and redemption options. This move underscores MicroStrategy’s enduring commitment to Bitcoin as a reserve asset, despite ongoing concerns over market volatility and the firm’s heavy debt load.
Earlier today, MicroStrategy confirmed the purchase of 1,070 Bitcoin for around $101 million, at an average price of $94,004 per coin. This latest buy increases its total Bitcoin holdings to 447,470 BTC, acquired at an overall average price of $62,503. The acquisition is part of MicroStrategy’s continuing policy of aggressive Bitcoin investment, funded by stock sales and convertible bond offerings.
Strive filed paperwork to introduce a “Bitcoin bond” ETF.
In other Bitcoin developments this week, Strive Asset Management, co-founded by Vivek Ramaswamy, has filed with the SEC to launch a “Bitcoin Bond” ETF. This actively managed fund will allocate at least 80% of its assets to bonds issued by companies, including MicroStrategy, that use the proceeds to purchase Bitcoin. It will also utilise derivatives such as swaps and options for additional exposure. This approach offers investors indirect access to Bitcoin through corporate bonds, aiming to mitigate some of the volatility risks associated with cryptocurrency.
Over this five‐day window, Ethereum ETF flows ended in the red by about $38.1 million overall, driven primarily by significant outflows on 2 January, when ETHW shed $56.1 million and ETHE lost another $21.4 million. The only notable gains on that day were absent, leaving total flows down $77.5 million. Meanwhile, FETH benefitted from a $31.8 million inflow on 31 December and then added another $27.1 million on 3 January, ultimately leading that product to a net gain of $38.5 million. ETHA sat at zero until 3 January, when it surged by $33.9 million, while ETHE’s aggregate loss of $51.6 million made it the biggest laggard. The result is that early weakness, including a –$55.5 million start on 30 December, was only partly offset by late buying, culminating in a net outflow for the period.
Synapse Introduces Staking
Synapse Protocol is a decentralized cross-chain communication network that enables secure, seamless data and asset transfers across EVM and non-EVM blockchains. It facilitates cross-chain transactions, smart contract interactions, and NFTs, making it easier for developers to create interoperable dApps. Its key features include a cross-chain AMM, liquidity pools, and an optimistic security model, while its native token, SYN, is used both for governance and staking to help secure the network.
Recently, Synapse introduced $CX, a new token claimable by staking $SYN at a rate of 5.5 $CX per $SYN. Users can unstake their $SYN at any time but must forfeit the locked $CX to do so. Alongside this, Synapse launched a staking program offering incentives to those who lock their $SYN, bolstering the network’s security. This move aligns with the Protocol’s broader vision of enhanced cross-chain interoperability and lays groundwork for the forthcoming Proof-of-Stake Synapse Chain.
$SONIC TGE is announced for January 7th 2025
In other news last week, Sonic SVM confirmed that its native token, $SONIC, will debut at the TGE on 7 January 2025. The total supply is capped at 2.4 billion, with 57% dedicated to community initiatives: encompassing ecosystem development, 7% set aside for initial claims, and 20% earmarked for HyperGrid rewards. Upon TGE, 15% of the token supply will be released into circulation. An eligibility checker for the initial claims went live on 3 January. Designed for staking, governance, and in-game transactions, $SONIC underpins Sonic’s broader blockchain gaming ecosystem.
Ethena Labs 2025 Roadmap
For the final update of the week, Ethena Labs has introduced its 2025 roadmap, titled “Convergence,” with the goal of uniting DeFi, CeFi, and TradFi. Key highlights include:
iUSDe Launch
Ethena plans to release iUSDe, a TradFi-compatible variant of its synthetic stablecoin, sUSDe, offering institutional investors access to crypto-based yields. iUSDe features token-level transfer restrictions to meet regulatory standards, making it suitable for inclusion in fixed-income portfolios. Ethena aims to formalise partnerships with asset managers, private credit funds, and other financial institutions by the end of January 2025.
Telegram Integration
Ethena is developing a payment and savings application within the Telegram platform, leveraging sUSDe to deliver a seamless neobank experience. Users will be able to send, spend, and save sUSDe directly in Telegram, with Apple Pay integration ensuring easy transitions between savings and mobile payments.
Ethereal Trading Platform & Derive Protocol
These forthcoming services target spot trading and on-chain options. Ethereal is a dedicated perpetual and spot exchange that exclusively uses sUSDe for its order book, with Ethena providing liquidity and hedging flows. Derive is a protocol for on-chain options and structured products, using sUSDe as a core collateral asset. Both platforms aim to enhance the trading ecosystem for retail and institutional users alike.
Ethena has experienced considerable growth, with its synthetic dollar, USDe, becoming the third-largest USD asset in crypto and reaching nearly $6 billion in 2024. Ethena generated $100 million in revenue and by December 2024, it surpassed a run-rate annualised revenue of $1.2 billion.
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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.