Spot Bitcoin ETFs Reverse Outflow Streak, Strategy Continues Buying Spree, and MANTRA’s OM Token Crashes

Takeaways

• Spot bitcoin ETFs posted net inflows of $76.4 million on Tuesday, ending a seven-day outflow streak of $878 million: BlackRock's IBIT pulled in $38.2 million, ARKB added $13.4 million, and Bitwise's BITB totaled nearly $11 million.
• MANTRA’s $OM token crashed 90% in a matter of hours, allegedly due to massive forced liquidations: MANTRA is investigating the incident and emphasized that it is likely external liquidation pressures, rather than deliberate team actions, that led to the dramatic price drop.
• Strategy has resumed bitcoin purchases, boosting its holdings to more than 2.5% of total bitcoin supply: The price of bitcoin has held up comparatively well given recent broader market volatility, making it appealing to corporate buyers.
• DHS is allegedly investigating Anchorage Digital Bank's compliance practices as the firm gains momentum with institutional partnerships: The inquiry comes amid broader shifts toward more crypto-friendly policies in Washington DC.
• Everclear, formerly known as Connext, has launched its upgraded mainnet to improve cross-chain interoperability: Backed by major investors including the Ethereum Foundation, the platform claims to now process settlements in less than ten seconds with minimal fees.

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Spot Bitcoin ETFs Register $76 Million in Inflows Amid Market Recovery

The positive inflows helped to reverse a recent week-long decline that saw a cumulative outflow of $878 million from these products. The recovery was led by prominent names in the market, with BlackRock's IBIT, the largest spot bitcoin ETF by net assets, attracting $38.2 million, followed by Ark and 21Shares’ ARKB with $13.4 million and Bitwise's BITB with nearly $11 million.

Some market analysts have suggested that shifts in the dynamics between the spot and futures markets played a role in these inflows. Meanwhile, spot Ethereum ETFs continued to see outflows, with $14.2 million withdrawn on Tuesday, extending a negative trend to six consecutive days. .

MANTRA Token Plummets 90%, Team Says Liquidations to Blame

The token, which had maintained a trading value around $5.21, tumbled to roughly $0.50 following a massive forced liquidation by a large investor on a centralized exchange. It has since reached a price of around $0.77, with the community still processing the downfall.

In an update posted on its X account, the MANTRA team clarified that the drastic price drop was due to “reckless liquidations” rather than deliberate selling by the team. Community lead Dustin McDaniel also denied accusations of team dumping, stating that no such sell-off occurred. Co-founder John Patrick Mullin attributed the sharp decline to an outsized liquidation event, emphasizing that the team is actively working to resolve the issue and restore stability.

In August 2024, some members of the MANTRA DAO were ordered by a Hong Kong court to turn over financial documents after being accused of misappropriating DAO-related funds. Some community members have reportedly identified significant wallet movements in recent days, suggesting that large volumes of tokens could have been offloaded to major exchanges like Binance and OKX.

Strategy Buys the Dip Amid Macroeconomic Uncertainty

Following a near two-week pause in purchasing activity, the company snapped up an additional 22,048 bitcoin March 31, bringing its total holdings to 528,185 BTC,

While altcoins have been most impacted by recent macro-headwinds, bitcoin has held up comparatively well, trading around the $84,000 level mid-week–it ticked up 1% Wednesday when the NASDAQ fell 3%. The stability has bolstered bitcoin’s reputation as a reliable store of value.

Anchorage Digital Under DHS Scrutiny While Expanding Institutional Partnerships

A DHS subset known as the El Dorado Task Force has reached out to former Anchorage employees to inquire about the bank’s internal practices and policies.

The exact scope and focus of the investigation remain unclear, but the task force’s broader mission is to combat money laundering and transnational financial crime.

The inquiry also comes amid Anchorage’s growing involvement in US crypto policy, with CEO Nathan McCauley attending a White House crypto summit in March. Anchorage previously faced regulatory pressure in 2022 when the Office of the Comptroller of the Currency (OCC) cited the firm for failing to meet anti-money laundering and KYC standards. Despite the ongoing scrutiny, Anchorage has been expanding its role in institutional crypto finance, partnering with Cantor Fitzgerald and BlackRock to provide digital asset custody for their crypto-related products.

Everclear Mainnet Launches, Streamlining Cross-Chain Transactions

Endorsed by influential entities including the Ethereum Foundation, Pantera Capital, Polychain, and Consensys, the iteration streamlines cross-chain settlements. The upgrade integrates protocols allowing users to schedule and automate transaction processes and bridge solutions that simplify asset swaps across chains.

Built to function as a central liquidity hub, Everclear processing speeds have been significantly increased. Since rebranding last year, the platform has experienced notable growth, now managing a monthly volume of $125 million. Collaborations include a notable partnership with the Renzo protocol for the restaking of ETH derivatives.

-Team Gemini