Markets Rebound, BTC ETF Inflows Rise, Jelly Didn't Set so Hyperliquid Let it Go

• BTC ETFs log $449.4M in net outflows; ETH ETFs see $40.3M withdrawn
• GameStop to raise $1.3B through convertible debt for planned bitcoin purchases
• Ripple set to recover $75M from SEC settlement, drops cross-appeal

Crypto markets back in green, BTC ETFs saw Inflows, Jelly jammed Hyperliquid

Cryptocurrency markets traded in positive territory this week, with total market capitalization holding above the $2.85 trillion mark while bitcoin’s market dominance remained strong, staying above 60%. Among the blue chips, bitcoin recorded a weekly gain of 5.1%, while ether posted a 4% increase compared to the previous week. The market saw renewed momentum on March 24, following comments from US President Donald Trump, who hinted that the upcoming April 2 announcement on tariffs might be less aggressive than initially anticipated—especially after cars and microchips were excluded from the list. In the US spot ETF space, bitcoin spot ETFs attracted a net inflow of $449.4 million over the past five trading days. In contrast, ether spot ETFs experienced a net outflow of $40.3 million during the same period. BlackRock continued its crypto push, listing a bitcoin exchange traded product (ETP) in Europe. The product began trading on Tuesday under the ticker IB1T on Germany’s Xetra exchange, and as BTCN on Euronext exchanges in Paris and Amsterdam.

Bitcoin rose on Tuesday after GameStop announced that its board had unanimously approved adding bitcoin as a treasury reserve asset. The next day, GameStop followed up with news that it would offer $1.3 billion in convertible notes with a 0% coupon. The company said it plans to use the proceeds to purchase bitcoin. With this decision, GameStop joins other companies like Strategy (MSTR), Semler Scientific (SMLR), MARA Holdings (MARA), and Riot Platforms (RIOT), which have also issued convertible debt to buy bitcoin. Until now, GameStop’s net income has largely come from yield on US Treasury investments, aside from strong sales during holiday quarters. On Tuesday, the idea of shifting from low-risk treasuries to a more volatile asset like bitcoin raised questions about potential earnings volatility. However, with Wednesday’s announcement, it appears GameStop is adopting a barbell investment approach—holding both treasuries and bitcoin to balance risk and opportunity.

In recent months, the hybrid exchange Hyperliquid has gained attention for its rapid user growth and liquidity. However, this week presented a challenge. Hyperliquid’s automated market maker vault suffered losses due to suspected manipulation of the JELLY token. According to Lookonchain, a trader holding $4.85 million worth of the JELLY token executed a strategy that combined a short position on Hyperliquid with spot purchases on-chain. This move triggered a liquidation on Hyperliquid, effectively transferring the short exposure to Hyperliquidity Provider (HLP), the platform’s automated market-making bot integrated with its liquidation engine. Following the liquidation, the trader aggressively bought JELLY on spot markets, driving the price higher. This price surge led to HLP’s unrealized losses ballooning to $13.5 million at one point. Due to the low liquidity on decentralized exchanges, the trader was able to move the price more easily than would have been possible on Hyperliquid itself. 

To contain the losses, Hyperliquid force-closed the JELLY market, settling it at $0.0095—far below the $0.50 price being reported by decentralized exchange oracles. “After evidence of suspicious market activity, the validator set convened and voted to delist JELLY perps,” Hyperliquid announced on X. “All users apart from flagged addresses will be made whole from the Hyper Foundation. This will be done automatically in the coming days based on on-chain data.” The incident bears resemblance to the 2022 exploit on Mango Markets, where trader Avraham Eisenberg executed what he described as a “highly profitable trading strategy” by manipulating oracle prices to extract profits from derivative positions.

Markets may have been choppy, but crypto’s foot is on the gas

The SEC and Ripple Labs have reached a tentative settlement that could bring their years-long legal dispute to an end. According to Ripple’s chief legal officer, Stuart Alderoty, the SEC will retain $50 million of the $125 million court-ordered fine paid by Ripple last year and return the remaining $75 million. The proposed agreement, which still requires approval from SEC commissioners and the court, comes shortly after the SEC dropped its appeal of Judge Analisa Torres’ 2023 ruling. In that decision, Torres found that Ripple’s programmatic sales of XRP to retail exchanges did not violate securities laws, though its institutional sales did—resulting in the $125 million penalty. That fine was significantly lower than the nearly $2 billion the SEC initially sought in civil penalties, disgorgement, and interest. As part of the settlement, Ripple will also withdraw its cross-appeal, and the SEC has agreed to ask the court to lift the standard injunction previously imposed on the company.

Investor optimism in the crypto sector remains strong amid a more relaxed regulatory environment under the Trump administration. In line with this sentiment, US-based spot exchange Coinbase (COIN) is reportedly in advanced talks to acquire Deribit, a leading global crypto derivatives platform, according to Bloomberg. The report states that both companies have informed Dubai regulators—where Deribit holds a license—of the ongoing discussions. Earlier this year, Bloomberg also reported that Deribit was exploring a sale, with a potential valuation estimated between $4 billion and $5 billion. Kraken was also rumored to be considering an acquisition at the time. While Coinbase is primarily known for its spot trading services, acquiring Deribit would mark a major move into the high-margin crypto derivatives space. In 2024, Deribit processed nearly $1.2 trillion in trading volume—almost double its total from the previous year.

Earlier this week Kraken announced that it agreed to acquire the US-based futures platform NinjaTrader for $1.5 billion, aiming to expand its crypto futures and derivatives offerings in the United States. NinjaTrader, a CFTC-licensed platform founded in 2003, serves nearly 2 million customers with a suite of futures trading tools. Kraken, which reports a global user base of 15 million, announced the deal in a press release on Thursday. With regulatory licenses in the UK, EU and Australia, Kraken will enable NinjaTrader—headquartered in Chicago—to expand its reach into those international markets. Earlier this month, the US Securities and Exchange Commission dropped a 2023 lawsuit that accused Kraken of commingling customer and corporate funds and operating as an unregistered securities broker. In January, Kraken also reintroduced staking services for US users. The acquisition of a CFTC-regulated platform, coupled with renewed staking services, signals Kraken’s growing focus on the US market amid evolving regulatory developments under the Trump administration. The deal is expected to close by the end of the first half of 2025, pending customary closing conditions.

Fidelity Investments is conducting advanced testing of its own stablecoin as it expands into blockchain-based money market products, according to a Financial Times report. The news comes shortly after the $5.9 trillion asset manager filed documents to launch a tokenized money market fund on Ethereum. This new product would be a blockchain-based version of its existing Treasury Digital Fund, which provides exposure to US dollars and treasuries. The stablecoin, according to sources cited by FT, would function as digital cash within this on-chain fund. Fidelity joins a growing list of traditional financial firms entering the tokenized government bond space. BlackRock and Franklin Templeton already offer blockchain-based money market funds, collectively managing over $2 billion in assets. Fidelity’s move into the stablecoin market positions it alongside industry giants Tether and Circle. Tether’s USDT leads the space with a $144 billion market cap, followed by Circle’s USDC at $60 billion. While both have long dominated the US dollar-pegged stablecoin sector, shifting regulatory dynamics in the US could reshape the competitive landscape. Lawmakers in both the Senate and House of Representatives have introduced bills aimed at establishing a federal stablecoin framework. The Senate’s version, the GENIUS Act, gained bipartisan support in a Banking Committee vote on March 13. Industry observers expect a finalized framework could reach the White House by the end of Q2 2025.

While markets have remained choppy, there’s no shortage of momentum in the crypto industry. US exchanges are reviving plans to offer tokenized equities, and international platforms are eyeing entry—or re-entry—into the US market. A strong year for most exchanges in 2024 has armed them with the capital and confidence to pursue acquisitions and expand aggressively. Fintech giants like Revolut are racing to roll out crypto products, and stablecoins continue to grow independently of bitcoin’s price—just as they have in previous cycles. New stablecoin projects are launching steadily, keeping news flow active across the space. All eyes are now on the forthcoming update to the broader market structure bill, which could bring much-needed regulatory clarity and shape the next chapter for the industry.

Macro pulse 

TradFi assets saw a risk-on tone this week, oil futures rallied by 3.7% compared to previous week and the US equities rose by 0.7% during the period. US stocks rallied Monday on reports that President Trump’s April 2 tariffs may be more targeted, avoiding broad sector-specific measures. A strong S&P Global Services PMI added to the upbeat tone. Later in the week, however, Trump announced 25% tariffs on all non-US-made cars, along with new tariffs on pharmaceuticals and lumber, reigniting trade concerns. On the monetary front, Fed's Musalem (2025 voter) said inflation risks have increased and maintaining current policy is appropriate for now. If the labor market stays strong and tariff effects feed through, the Fed may need to keep rates higher for longer—or even tighten further. Elsewhere, the 10-year US treasury yields rose by 11 bps and the US Dollar index rallied by 1.1% while the Gold & Silver index declined by 0.7% week on week.

^{*Note: Weekly (7 calendar day) performance figures are as of 8am SGT on March 27, 2025} 

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