This Week in Crypto: Uniswap's Proposal Spurs UNI, ETF Volumes Surge, and Coinbase International's Triumph

Uniswap Foundation Proposes Governance Changes

The Uniswap Foundation's recent proposal to reward UNI token holders for staking or delegating tokens has sparked considerable interest. This move, aimed at enhancing governance participation and supporting the Uniswap DAO's autonomy, led to a significant price surge for UNI, with its market cap jumping from $5.5 billion to about $8.5 billion. This development also raises speculation about potential regulatory advancements in the U.S., particularly in light of the SEC's scrutiny of tokens with holder rewards.

Spot Bitcoin ETFs Witness Volatile Trading Volumes

The trading landscape for the newly launched spot Bitcoin ETFs has experienced notable fluctuations. After an initial 85% drop in trading volume, a Bitcoin rally breathed new life into these investment products. This resurgence in interest, marked by a trading volume spike to $2.59 billion on February 20th, illustrates the market's responsiveness to broader crypto price movements and regulatory milestones.

Coinbase International Exchange Gains Traction

Coinbase's International Exchange, launched in Q2 2023, has seen remarkable growth, with trading volume reaching $1 billion on February 20th. Initially catering to institutional traders, the platform's expansion to include eligible retail traders has broadened its appeal. This growth trajectory, especially after the U.S. approval of spot Bitcoin ETFs, underscores Coinbase's reputation for trustworthiness and the strategic allure of 10x leverage trading options.

Hedge Funds and Asset Managers: A Divergence in Bitcoin Sentiment

Hedge funds show skepticism towards Bitcoin's future, amassing a record $3.83 billion in short contracts on the CME, surpassing previous highs. In contrast, asset managers have $3.58 billion in long Bitcoin contracts, with minimal shorts. This divergence comes despite Bitcoin's recent price gains and the upcoming halving, typically seen as bullish. However, both hedge funds and asset managers' positions mirror those around the ETF launch, indicating sustained interest in Bitcoin contracts post-ETF approval, possibly reflecting Bitcoin's growing institutionalization.

Ethereum's Rising Spotlight Amid Bitcoin's Volume Decrease

While Bitcoin experiences a dip in spot volumes, Ethereum's spot volumes have witnessed an uptick from $5.5 billion to $6.97 billion, buoyed by the anticipation of the Dencun upgrade and speculations around a spot Ether ETF. Ethereum's year-to-date increase of over 30% starkly contrasts Bitcoin's 16% rise, highlighting Ethereum's growing prominence and investor interest.

Data & Insights is a weekly newsletter and article series by The Block Research Analyst Rebecca Stevens that highlights recent trends and top charts from The Block’s Data Dashboard. Sign-up to receive Data & Insights in your inbox every Monday for free. Previous articles in the series are available with a subscription to The Block Pro.