According to CoinShares, crypto investment products faced unprecedented outflows last week, with a staggering $942 million exiting funds globally. This marks a significant shift from the seven-week streak of inflows totaling $12.3 billion.

Various asset managers, including BlackRock, Bitwise, Fidelity, Grayscale, ProShares, and 21Shares, witnessed record outflows totaling $942 million globally. This surpasses the previous record set at the end of January, almost doubling it.

The substantial outflows occurred amidst a 33% decrease in trading volume for crypto investment products, amounting to $28 billion for the week. Additionally, the price correction in underlying cryptocurrencies led to a $10 billion reduction in assets under management for these funds. Nonetheless, the combined AUM remains above previous cycle highs at $88 billion.

Despite over $1 billion in inflows into new spot Bitcoin exchange-traded funds in the U.S., it was insufficient to offset nearly $2 billion in outflows from Grayscale’s converted GBTC fund. The recent price correction prompted hesitancy among investors, resulting in lower inflows into new ETF issuers in the U.S.

The dominance of U.S. spot Bitcoin ETFs drove the majority of net outflows last week, contributing $904 million, while short-bitcoin investment products saw minor outflows of $3.7 million.

Poor sentiment extended beyond U.S.-based funds and Bitcoin, affecting crypto investment products globally. Funds in Sweden, Hong Kong, Switzerland, and Germany experienced outflows, while Brazil and Canada-based funds saw inflows. Ethereum, Solana, and Cardano-based products also suffered outflows, while other altcoin-related funds fared better, registering net inflows.

Bitcoin is currently trading at $66,827, reflecting a 2% decrease over the past week. The broader crypto market also experienced a decline, with the GM30 index falling 10% before partially recovering.

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The London Stock Exchange (LSE) has designated May 28 as the start date for trading in Crypto Exchange-Traded Notes (ETNs). Only professional investors will have authorization to engage in trading activities related to these ETNs. ETN issuers have until April 15 to submit their plans, ensuring eligibility for trading commencement in May.

The LSE decided to commence trading on May 28 after careful consideration. It allows sufficient time for ETN issuers to meet the requirements outlined in the Crypto ETN factsheet. Additionally, it provides issuers planning to admit securities on the launch date ample time to prepare documentation, including the approval of a base prospectus by the Financial Conduct Authority (FCA), as stated in a market notice released by the LSE on Monday.

One of the requirements specified in the Crypto ETN factsheet is that Crypto ETNs admitted to trading on the LSE are solely appropriate for professional investors and are available under trading segments designated exclusively for “Professional investors only.”

ETNs function as debt securities that track an underlying asset. Consequently, Crypto ETNs will enable investors to trade securities reflecting the performance of crypto assets on the exchange.

While similar-styled Bitcoin exchange-traded funds (ETFs) launched in the U.S. in January have amassed $54 billion in assets under management, UK investors currently need access to these offerings. Notably, the UK Financial Conduct Authority (FCA) recently stated that it would not impede plans from Recognized Investment Exchanges (RIEs) like the LSE to list crypto ETNs.

To qualify for trading, ETN issuers must meet the deadline of April 15, as outlined in the LSE notice, and gain approval by May 22.

The impending availability of crypto exchange-traded notes has been viewed positively by industry leaders in the UK. Coinbase UK CEO Daniel Seifert and Kraken UK Managing Director Bivu Das expressed optimism about the potential benefits of offering Bitcoin ETFs in the UK, emphasizing the importance of consumer choice.

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The Philippines Securities and Exchange Commission (SEC) announced on Monday its collaboration with the National Telecommunications Commission (NTC) to impede local traders’ access to Binance, the world’s largest cryptocurrency exchange by daily trading volumes.

Regulators in the Philippines are pursuing measures to prevent local traders from accessing Binance. The SEC stated on Monday that it has initiated efforts to block access to the cryptocurrency exchange due to its lack of the required regulatory license to operate in the jurisdiction. The agency had requested assistance from the NTC two weeks before blocking web pages associated with Binance.

According to the SEC, Binance has been actively running promotional campaigns on social media to attract Filipino investors to engage in trading activities using its platforms. However, the exchange has not obtained the necessary license from regulators to solicit investments from the public or to operate a securities exchange for buying and selling securities.

The recent actions taken by regulators in the Philippines to limit access to the trading platform are not unexpected. Last autumn, the country’s SEC issued warnings indicating its intention to block Binance due to its failure to obtain approval to offer investment products to residents of the Philippines.

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A year ago, the cryptocurrency industry was grappling with layoffs and regulatory challenges, while trading activity had significantly dwindled. Fast forward to 2024, and the narrative has dramatically shifted from doom and gloom to ETF-fueled optimism, with Coinbase (NASDAQ:COIN) emerging as a standout performer. The company’s stock has surged by nearly 70% this year to approximately $265, garnering praise from analysts at JPMorgan.

Reflecting on previous crypto bull markets, it’s worth noting that the industry’s highs and lows can be subject to exaggeration. Coinbase CEO Brian Armstrong has consistently emphasized that both the downturns and upswings in crypto markets are often overstated. This sentiment holds not only for crypto but for markets in general.

As for Coinbase, recent developments have been overwhelmingly positive. The company’s stock rally, coupled with a renewed focus on product excellence from its leadership, has garnered widespread attention. Armstrong’s shift away from cultural controversies and towards product enhancement has been particularly noteworthy. Coinbase’s role as a Bitcoin custodian for institutional giants like BlackRock and Fidelity, along with the success of its Base blockchain, has further solidified its position in the market.

JPMorgan’s bullish report, which includes a $300 price target for Coinbase, highlights the growth potential in the exchange and custody services offered by the company. Additionally, the report anticipates Coinbase’s involvement in the evolving landscape of blockchain use cases. However, it’s essential to temper this optimism with a dose of reality.

While Coinbase is indeed innovating in blockchain services, regulatory hurdles, particularly from the SEC, pose significant challenges. Thinning margins constrain the profitability of Coinbase’s exchange and custody services, while regulatory constraints hinder the monetization of blockchain-related offerings like Base.

Nevertheless, JPMorgan’s analysts spotlight one area of Coinbase’s business with substantial growth potential—the offshore derivatives platform, which is reportedly scaling rapidly. This segment represents a lucrative opportunity for Coinbase, as it caters to traders seeking highly leveraged positions. In the short term, this aspect of Coinbase’s business warrants close observation.

In summary, while JPMorgan’s optimism towards Coinbase is justified in some respects, it’s crucial to maintain a balanced perspective considering the regulatory and operational challenges inherent in the cryptocurrency industry.

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Coinbase Global (NASDAQ:COIN) shares have seen a remarkable 68% surge since February 23, closely tracking Bitcoin’s 37% ascent. As the halving date for Bitcoin approaches on April 17, COIN stock is poised to continue its upward trajectory alongside Bitcoin. This surge has also inflated COIN’s put option premiums, making them an appealing prospect for short-put strategies.

The impending Bitcoin halving will reduce the number of BTC coins that miners can generate per successful hashing attempt. Scheduled roughly every four years, analysts anticipate the next halving to occur on April 17. With miners needing updated equipment and a diminished supply of Bitcoins, this event is expected to drive Bitcoin prices higher. Consequently, anticipation of this event has driven Bitcoin’s price surge.

Coinbase Global is likely benefitting from heightened cryptocurrency trading activity this quarter, buoyed further by the introduction of ETF funds trading in Bitcoin. So, how high can COIN stock climb?

Analysts suggest Coinbase is poised to generate significant free cash flow, with revenue projections for the year reaching as high as $4.79 billion. Based on estimated operating cash flow margins, this could lead to a considerable rise in cash flow compared to previous estimates.

Using a 1.5% free cash flow yield metric, COIN stock valuation could reach $106.66 billion, implying a price target of at least $403 per share. Consequently, shorting near-term put options with their elevated premiums appears to be a lucrative move.

Shorting put options offers an immediate yield, particularly for out-of-the-money strike prices. For instance, with a strike price 10% out-of-the-money, investors could achieve a 3.25% immediate yield. Similar opportunities exist for nearby expiry periods, such as April 12, presenting substantial potential yields for various strike prices.

However, it’s crucial to acknowledge the risks involved, especially given the potential volatility in the stock. While this strategy can yield significant gains for COIN stockholders, a reversal in stock performance could lead to unrealized losses.

In summary, shorting put options on COIN stock presents an attractive opportunity for investors confident in the stock’s continued ascent. Nevertheless, prudent risk management is essential to navigate potential market fluctuations.

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