Ethereum Spot ETFs Shake Off Negative Sentiment, Strategy To Purchase an Additional $2B Bitcoin, and NFTs Mount Comeback With $3M Sale

Takeaways

• Spot ether ETFs have recorded roughly $393M in net inflows this month while spot bitcoin ETFs have faced net outflows: Some investors are increasingly optimistic about Ethereum’s upcoming Pectra upgrade, with expectations of enhanced network performance. But the price has yet to reflect the positive momentum as ether transaction fees continue to decline.
• Meteora’s co-founder Ben Chow has resigned amid insider trading allegations following the LIBRA token collapse: An independent investigation is set to be launched as the fallout raises serious ethical concerns about high-profile token launches.
• Strategy, formerly MicroStrategy, is raising $2B through convertible notes to expand its already massive bitcoin holdings: The move comes as the company continues to streamline operations through layoffs.
• Standard Chartered, Animoca Brands, and HKT are launching an HKD-backed stablecoin under Hong Kong’s new regulatory framework: The joint venture aims to leverage each partner’s strengths to offer digital asset solutions for a variety of use cases.
• A US art collective has purchased Sam Spratt’s one-of-a-kind NFT for $3 million, in the largest NFT sale in three years: The acquisition could hint at a shift to investors refocusing on artistic value in the NFT space.

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Spot ETH ETFs Register Roughly $393M in Inflows This Month

Amid rising anticipation for Ethereum’s forthcoming Pectra upgrade, US-listed ether spot ETFs have attracted a remarkable $393 million in net inflows this month—nearly seven times the inflows recorded in January. In contrast, spot bitcoin ETFs have experienced net outflows of $376 million, signaling tradfi investors could be warming up to ether.

This movement is largely driven by strategic trading techniques such as carry trading, where investors buy spot ETFs while shorting ETH futures. Despite earlier price declines pushing ether to around $2,000, the price has since rebounced, now trading between $2,600 and $2,800. But challenges remain.Ethereum transaction fees have plummeted about 70% recently, signaling weak onchain demand.

Some analysts have suggested Ethereum could finally see a resurgence, with the upcoming Pectra upgrade scheduled for April 8. The upgrade promises faster transactions and enhanced staking mechanics. The ETH Foundation’s recent $120 million allocation to DeFi projects also suggests that institutional interest could be on the rise. Some estimates have suggested a 30% chance of ether surpassing $3,000 by the end of the quarter.

Meanwhile, the price of bitcoin shook off trade worries this week and a general malaise in recent weeks, pushing close to $98,000 as of mid-day Thursday.

Meteora Co-Founder Resigns Amid Insider Trading Allegations Over LIBRA Fallout

Meteora, the Solana-based crypto firm behind a slate of recently launched celebrity tokens, is facing turmoil following the collapse of LIBRA. Ben Chow, one of the co-founders, has resigned amid insider trading allegations tied to LIBRA, a token once backed by Argentine President Javier Milei that plummeted over 90% shortly after its launch.

Meteora’s pseudonymous founder, known as Meow, confirmed via a tweet that Chow’s departure was due to a series of “strategic mistakes” in leadership, though neither has offered further comment.

The LIBRA debacle has ignited accusations of insiders dumping tokens at peak prices, with on-chain analysts pointing to suspicious wallet activity. Meteora, which had only provided technical support for the token launch, now finds itself embroiled in a broader controversy that raises questions about the ethics of high-profile token projects. Chow initially claimed on X that Meteora had no control over LIBRA’s token distribution, but later backtracked as doubts about the firm’s role emerged.

The Libra fallout hit the price of Solana, with the cryptocurrency down about 10% over the past week, settling around $175 by mid-day Thursday.

Strategy Raises $2B via Convertible Notes To Expand Bitcoin Holdings

Strategy, formerly known as MicroStrategy, has announced a new capital-raising initiative to further bolster its bitcoin treasury. The company is issuing $2 billion in 0% convertible notes, with the funds earmarked primarily for acquiring additional Bitcoin.

Led by Executive Chairman Michael Saylor, Strategy remains the largest corporate bitcoin holder globally, currently owning 478,740 tokens valued at over $45 billion. In its recently filed audited 2024 annual report, the company revealed significant cost-cutting measures, including a more than 20% reduction in its workforce compared to last year.

Notably, Strategy’s bitcoin holdings more than doubled in 2024, rising to 447,470 tokens from 189,150 at the end of 2023, after spending $22.1 billion. This year, the company has already spent about $3.2 billion to acquire an additional 31,270 tokens. However, Strategy briefly paused purchases earlier this month

Standard Chartered, Animoca Brands & HKT Join Forces To Launch HKD-Backed Stablecoin

Standard Chartered’s Hong Kong division has partnered with web3 investor Animoca Brands and telecom firm HKT to create a joint venture aimed at issuing a stablecoin pegged to the Hong Kong dollar. The group plans to apply for a license from the Hong Kong Monetary Authority (HKMA) under the forthcoming stablecoin regulatory framework, positioning itself among the first regulated issuers in the region.

Hong Kong continues to develop its digital asset strategy, having introduced the Stablecoins Bill in December 2024, which outlines licensing requirements for fiat-backed stablecoin issuers. By leveraging Standard Chartered’s robust banking infrastructure, Animoca’s crypto expertise, and HKT’s advanced mobile wallet technology, the new stablecoin is intended to support several use cases, including payments, finance, and cross-border transactions. The three companies have also been integral to shaping Hong Kong’s regulatory landscape, having participated in the HKMA’s stablecoin issuer sandbox since March 2024.

US Art Collective’s Makes $3M NFT Acquisition the Largest NFT Sale in 3 years

US-based art collective Kanbas has purchased Sam Spratt’s unique NFT artwork, "X.Masquerade," for $3 million, marking the largest NFT sale in three years. The piece is part of the "Story of Luci" series and connects to an exclusive event on Gemini's Nifty Gateway Studio, where supporters purchased "Mask of Luci" NFTs worth more than $2.1 million.

The acquisition and subsequent sales comes at a time when the NFT market, once booming in 2022, has seen declines, with flagship collections such as Bored Ape Yacht Club experiencing a floor-price drop of more than 90%. Bur the $3 million investment from Kanbas underscores a renewed interest in NFTs that offer genuine artistic and cultural value. This move may indicate that investors are starting to prioritize quality and intrinsic value over speculative trading.

-The Gemini Team