Weekly Update: 28th of March
What happened between the 21st and 28th of March?
- Solana futures ETFs went live on Nasdaq, marking a first for the asset, but the financial instrument has failed to sustain investor enthusiasm. Read more
- Bitcoin and the broader altcoin market recovered lost ground and entered a wait-and-see environment as Trump’s tariffs loomed. Read more
- Two strategic digital assets bills in Arizona are on their way to the House of Representatives, making it a step closer to a strategic reserve. Read more
Solana enters traditional financial U.S. market
On March 17th, the digital assets market saw Solana make its debut in U.S. traditional finance with the launch of its Solana futures ETF on the Chicago Mercantile Exchange (CME). Despite high anticipation, the ETF struggled to gain significant investor interest. On its first trading day, it recorded a modest volume of just 194 contracts, stabilizing around 150 contracts daily. However, on March 25th and 26th, the ETF saw a slight uptick, reaching 200 contracts on two consecutive days.
In our view, the lack of immediate traction is not particularly concerning, as this futures-based instrument does not involve direct Solana holdings but instead tracks its price through derivative contracts. When the Solana spot ETF launches—likely by the end of the year—we anticipate significantly greater investor interest.
The digital assets market recovers lost ground
After a period of market declines in February and early March, the digital assets market has regained momentum, recovering much of its lost ground. This rebound has been largely driven by the Federal Open Market Committee’s (FOMC) neutral stance on March 19, which reaffirmed expectations for two interest rate cuts in 2025, as well as Trump’s softened approach to tariffs.
Bitcoin is currently showing signs of stabilization as the market anticipates Trump’s tariff announcement on April 2. While expectations suggest a more lenient stance than previously feared, stricter measures could have a negative impact on financial markets.
Arizona takes the lead in the race of a Bitcoin reserve
On March 24th, two strategic digital asset reserve bills passed Arizona’s House Rules Committee and are now set for a full vote on the House floor.
The first bill would allow the state of Arizona to establish a strategic digital asset reserve consisting of seized assets from criminal proceedings. The second bill focuses exclusively on Bitcoin, enabling Arizona’s Treasury and state retirement system to allocate up to 10% of available funds into Bitcoin.
While the bills have a strong chance of passing in the House of Representatives, where Republicans hold a 33-27 majority, the biggest challenge may come from Democratic Governor Katie Hobbs. She holds veto power and has already blocked 22% of proposed bills in 2024—the highest rate of any U.S. governor. Whether these bills advance remains to be seen.
In other digital assets news
- Strategy’s, formerly known as MicroStrategy, Bitcoin holdings have surpassed the 500,000 mark, reaching a total of 506,137 Bitcoin, worth approximately $44 billion and is around 2.4% of the total Bitcoin supply.
- World Network is reportedly in talks with Visa to launch a stablecoin wallet, potentially bringing digital assets to Visa’s global users. Worldcoin gained 13% on the news.
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