Spot Bitcoin exchange-traded funds (ETFs) in the United States have witnessed net outflows for the third day in a row, tempering the initial excitement seen in early March as over $58 million exited these products yesterday, bringing the total net inflow down to roughly $12.43 billion.

The supply of Bitcoin on centralized cryptocurrency exchanges could be depleted in as little as nine months over the upcoming halving event, according to a report by cryptocurrency exchange Bybit.

Senator Sherrod Brown (D-OH), a prominent crypto skeptic and Chair of the Senate Banking Committee, has signaled openness to advancing a new law for stablecoins. However, his support hinges on bundling the stablecoin bill with other, unrelated measures.

Top stories in the Crypto Roundup today:

• Bitcoin ETFs See Third Consecutive Day of Net Outflows
• Bitcoin Exchange Reserves Face Potential Depletion in Nine Months: Bybit
• Crypto Skeptic Senator Open to Stablecoin Bill, With Strings Attached
• Chart of the Week: Open Interest Experiences Significant Decline

Bitcoin ETFs See Third Consecutive Day of Net Outflows

Spot Bitcoin exchange-traded funds (ETFs) in the United States have witnessed net outflows for the third day in a row, tempering the initial excitement seen in early March as over $58 million exited these products yesterday, bringing the total net inflow down to roughly $12.43 billion.

As has been the pattern, Grayscale's Bitcoin Trust (GBTC) saw significant outflows, with data showing nearly $79.4 million leaving the ETF yesterday. The Ark 21Shares Bitcoin ETF also experienced net outflows, with approximately $12.88 million exiting the fund.

Most other spot Bitcoin ETFs saw modest inflows that ranged between $1.37 million and $3.56 million, with BlackRock’s iShares Bitcoin Trust bucking the trend and seeing $25.78 million of inflows.

The trading volumes for these ETFs stabilized throughout the month after a consistent decline from a peak in March, with cumulative trading volumes having already surpassed $215 billion.

Bitcoin Exchange Reserves Face Potential Depletion in Nine Months: Bybit

The supply of Bitcoin on centralized cryptocurrency exchanges could be depleted in as little as nine months over the upcoming halving event, according to a report by cryptocurrency exchange Bybit.

The report predicts that demand for BTC from spot Bitcoin exchange-traded funds, coupled with Bitcoin’s supply issuance reduction from the halving, could lead to exchange reserves running out. It reads:

“Bitcoin reserves in all centralized exchanges have been depleting faster. With only 2 million Bitcoins left, if we assume a daily inflow of $500 million to Bitcoin Spot ETFs, the equivalent of around 7,142 bitcoins will leave exchange reserves daily, suggesting that it will only take nine months to consume all of the remaining reserves.”

Bitcoin’s halving event will reduce the coinbase reward miners receive per block found, from 6.25 BTC to 3.125 BTC, effectively cutting in half the supply of newly minted Bitcoin entering the market.

Bybit’s report comes as Bitcoin exchange reserves have already hit a near three-year low of 1.94 million BTC, according to data from CryptoQuant.

Crypto Skeptic Senator Open to Stablecoin Bill, With Strings Attached

Senator Sherrod Brown (D-OH), a prominent crypto skeptic and Chair of the Senate Banking Committee, has signaled openness to advancing a new law for stablecoins. However, his support hinges on bundling the stablecoin bill with other, unrelated measures.

Brown made his position clear during a brief interview at the US Capitol on Tuesday, in which he expressed willingness to move forward with a stablecoin bill as part of a larger package that would also include proposals authorizing banks to work with marijuana businesses and clawing back compensation for executives at failed financial institutions.

The senator emphasized that any such compromise would need to address his concerns surrounding consumer protection for him to lend his support. Stablecoins have become a divisive issue in Congress, as Federal regulation would lend them legitimacy as an asset class and potentialyl lead to broader adoption.

While House Financial Services Chair Patrick McHenry (R-NC) and the crypto industry have prioritized stablecoin legislation, Senator Elizabeth Warren (D-MA) remains a vocal critic, suggesting that passing a stablecoin law without proper safeguards would lead to a financial crisis.

Efforts to reach a compromise are underway. McHenry recently met with Senate Majority Leader Chuck Schumer (D-NY) and Representative Maxine Waters (D-CA), the top Democrat on the House Financial Services Committee, to discuss potential solutions with the Biden administration.

Chart of the Week: Open Interest Experiences Significant Decline

This week's Chart of the Week delves into the recent influence of recent political events in the cryptocurrency market, highlighting how these events trigger varying degrees of volatility.

The chart shows Bitcoin’s open interest, a metric reflecting the total value of outstanding futures contracts, has seen a decline of 3.6% from $26.15 billion to $25.2 billion, between April 14-16. Ethereum’s open interest meanwhile dropped 1.2%, while the altcoin sector experienced a deeper decline, with Solana’s dropping 14.8%.

The data underscores the leveraged nature of the cryptocurrency market, with sudden price drops appearing to have caught futures traders off guard, leading to a decline in open interest. This further emphasizes the inherent volatility of cryptocurrencies, especially during weekends when traditional markets are closed and liquidity is typically lower.

State of the Crypto by Top Tier Exchange Volume

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