Institutional Interest in Crypto-Themed ETFs Stays Strong Despite Market Downturn
Brown Brothers Harriman (BBH) Global ETF Investor Survey reveals that institutional interest in crypto-themed exchange-traded funds (ETFs) remains strong, even as the market is 60% below its all-time highs. The survey involved 325 institutional investors, financial advisers, and fund managers from the US, UK, Europe, and China. However, only 25% of respondents plan to increase their allocation to ETFs with cryptocurrency exposure, compared to 33% in 2022. Over 40% of respondents manage more than $1 billion in assets, and over half invest more than 25% of their portfolios in ETFs.
Source: Brown Brothers Harriman
Bitcoin Climbs to $28,000 Amid Recession Warnings
Currently trading above \(28,000, [Bitcoin](https://coin360.com/coin/bitcoin-btc) is showing "classic" behavior, according to crypto trading expert Michaël van de Poppe. He anticipates Bitcoin to continue climbing, potentially hitting \)40,000, but warns of a possible test of $25,000 before that. Bitcoin’s correlation with gold has surpassed 50%, exceeding its correlation with US stocks. Both Bitcoin and gold saw significant declines last year, but gold has increased 8.6% since the Silvergate banking crisis on March 8, nearing its all-time high.
This comes as more projects aim to connect crypto with traditional finance. Recently, Moon Mortgage launched a mortgage product allowing investors to use Bitcoin as collateral to secure real estate funding. The platform plans to expand across the US for investment properties. Moon Mortgage also introduced Trade & Borrow, enabling investors to borrow against Bitcoin.
Changes in the macroeconomic climate include a potential halt to US Federal Reserve interest rate hikes and weak US economic data signaling a possible recession. Bloomberg’s senior commodities specialist Mike McGlone warns that the upcoming financial crisis could be the “worst in our lifetime,” possibly rivaling the 1929 Great Depression. McGlone believes it is “very unlikely for the Fed to ease until risk assets drop to a new lower plateau.”
Ether Outperforms Bitcoin, Reaching an Eight-Month High with Bullish Catalysts Ahead
Ether (ETH) reached an eight-month high of \(1,873, outperforming Bitcoin ([BTC](https://coin360.com/coin/bitcoin-btc)), which increased 1.7% to \)28,300. The ETH-BTC ratio rose by over 1% to 0.066. This rise coincides with the dollar index hitting a two-month low.
The upcoming Shanghai upgrade, less than two weeks away, is seen as a long-term bullish catalyst for Ether and liquid staking tokens. Decentral Park Capital’s portfolio manager views ETH regaining ground against BTC as part of a broader capital rotation play, with crypto likely benefiting from broader equity rallies heading into a historically bullish month.
Manifold Finance is developing a liquid staking derivative called mevETH, which will offer extra yield through maximal extractable value (MEV) strategies, and be accessible on multiple chains through its cross-chain LayerZero protocol. The company also acquired Cream Finance’s validator set to kickstart the protocol and aims to manage 100,000 ether ($178m) by year-end from retail users and counterparties. In future versions, Manifold will add restaking abilities to mevETH, allowing stakers to secure multiple chains or protocols for more rewards.
Aave Pursues Cross-Chain Expansion by Integrating V3 on Starknet and BNB Chain
AAVE, decentralized lending protocol Aave’s token, is up 3.4% in the past 24 hours as the platform seeks to expand its reach to other blockchain ecosystems by integrating Aave V3 on Starknet and BNB Chain. Aave V3 is already supported on the Polygon zkEVM mainnet and various other blockchain networks. The deployment on Starknet will involve creating a cross-chain bridge between Ethereum and Starknet, with the implementation of the protocol following afterward.
The proposal to deploy Aave V3 on BNB Chain aims to grow Aave’s presence further and tap into its user base while leveraging BNB Chain’s decentralized finance ecosystem. Aave’s V3 features more sophisticated risk management tools and parameters to protect users and the protocol.
Summary of Market Events and Price Action
As a summary of today’s events and price action in the market, it is crucial to note the following key points:
- Bitcoin stays above $28,000 while analysts warn of a possible recession
- Ethereum reaches its eight-month high as more platforms roll out support for liquid staking
- Aave propose to launch V3 on Starknet and BNB Chain, AAVE price slightly increases
- DOGE becomes the biggest winner among the top 100 cryptocurrencies by market cap, as Elon Musk’s Dogecoin love affair powers the rise
- Binance CEO denies Interpol Red Notice rumor amidst ecosystem headwinds
- Euler Finance recovers funds after crypto hack, EUL grows by over 10%
Top Altcoin Gainers and Losers
Dogecoin DOGE (+25.11%)
Curve DAO Token CRV (+8.81%)
Chiliz CHZ (+6.45%)
Solar SXP (-7.65%)
Kaspa KAS (-6.28%)
Conflux CFX (-4.05%)
NFT Market Map
Wrapped Cryptopunks (+81.83%) ranked 1st on the NFT leaderboard today following a 55.66% increase in sales, according to NFTGo data. Despite a small drop in floor price, which saw the collection go down to 63.5 ETH from its weekly peak of 69 ETH, Wrapped Cryptopunks still recorded an increase of 16.67% in common holders and 16% in whale holders over the same period.
Otherdeed and Bored Ape Yacht Club saw a surge of 128.21% and 163.75% in trading volume, respectively, as Gucci has partnered with Yuga Labs to launch a series of Gucci products and their associated NFTs, tying into the lore of the Otherside, Yuga’s long-awaited ape-themed metaverse game.
Yuga has announced the launch of KodaPendant, an NFT that represents both a physical piece of jewellery, and a non-fungible token that will unlock perks within the Otherside metaverse. Each KodaPendant will correspond to a physical necklace, a silver chain and pendant. They are only available for purchase by current holders of Koda or Vessel NFTs and the payment can be made with Apecoin, costing $1,917 at the time of writing.