Matt Hougan, CIO of Bitwise, predicts Ethereum ETFs will see $15 billion in net inflows in their first 18 months of trading. In a note sent to clients, he cited ETH/BTC market cap comparisons, international ETF data, and spot/futures arbitrage trading. He believes the lack of staking rewards is a “rounding error” that will not impact demand.

Following a week of net outflows, U.S. spot bitcoin ETFs recorded $31 million in net inflows, primarily coming from Fidelity's FBTC and Bitwise's BITB. The inflows occurred as expectations increased around the launch of spot ether ETFs.

Bitwise has made a significant move in the cryptocurrency market by filing the first S-1 application for an XRP-based spot exchange-traded fund (ETF) with the U.S. Securities and Exchange Commission (SEC). This application marks a notable development as Bitwise becomes the first company to seek approval for an ETF that is directly linked to XRP, a cryptocurrency that has gained considerable recognition and longevity in the crypto space. Bitwise's CEO, Hunter Horsley, emphasized that XRP has the potential to attract mainstream investors, highlighting its established presence in the market. In the broader context of cryptocurrency exchanges, there have been notable developments regarding Bybit, the third-largest offshore exchange. Recently, Bybit opened registration and authentication for users in China, a significant shift from its previous policy that strictly prohibited Chinese users from accessing its services. This change comes amid a competitive landscape where other exchanges have already begun catering to Chinese users, raising concerns among Bybit's internal employees about the implications of this decision. Additionally, the cryptocurrency regulatory landscape is evolving, particularly in Hong Kong, which is implementing new compliance policies. While these regulations may not transform Hong Kong into a crypto haven, they do offer a framework that could foster growth and compliance within the industry. The Hong Kong government has outlined key points regarding cryptocurrency compliance, indicating a structured approach to regulation. In terms of operational challenges, Binance has been facing scrutiny regarding its contract approval processes, particularly concerning its stablecoin BUSD. The exchange has been criticized for delays in addressing contract approvals, which has raised concerns about the security and management of user funds. Furthermore, Binance has reportedly begun layoffs, with a significant portion of its workforce potentially affected, although the company maintains that it continues to seek new talent in various departments. Overall, these developments reflect the dynamic nature of the cryptocurrency market, where regulatory changes, competitive strategies, and operational challenges are continuously shaping the landscape. The filing for an XRP ETF by Bitwise, the shift in Bybit's user policy, and the evolving regulations in Hong Kong all contribute to a rapidly changing environment that stakeholders in the crypto space must navigate.