🔼 Crypto market sentiment shifted as open interest for BTC and ETH futures contracts rose; UFC and Crypto.com partnered to co-present UFC Freedom 250

Quick Take

• Crypto market sentiment shifted as open interest (OI) for BTC and ETH futures contracts rose. UFC and Crypto.com partnered to co-present UFC Freedom 250. Hong Kong granted its first stablecoin issuer licenses to HSBC and a Standard Chartered-led group. 
• U.S. spot BTC ETFs saw a net inflow of US$786 million last week, up from the $22.2 million inflow the week prior. Spot ETH ETFs saw a net inflow of $187 million in the same period, reversing a $42 million outflow from the week prior.
• In March, the U.S. Consumer Price Index (CPI) jumped significantly to 3.3% year-on-year, up from 2.4% in February — the highest jump since 2022. This was driven by a massive 10.9% monthly increase in energy costs, with gasoline prices skyrocketing 21.2% over the month.Core CPI (excluding food and energy) remained more stable at 2.6%, slightly below forecasts. The 10-year U.S. Treasury yield climbed to 4.32% from February’s 3.96% as investors "priced out" Federal Reserve rate cuts for 2026. China’s CPI rose 1.0% year-on-year, a slight dip from February’s 1.3%. Eurozone retail sales data in February showed a 0.2% contraction, underscoring fragile consumer confidence across the bloc. Reports indicated the Bank of Japan (BoJ) is eyeing a rate hike to 1.0% by mid-2026. The yen weakened past 160 per dollar, significantly increasing the cost of imported fuel and adding urgency to BoJ tightening.
• Notable updates: Google Quantum AI suggests Zcash has higher quantum resilience despite forgery risks. Telegram's CEO announced a major TON blockchain upgrade to improve network performance. Hyperliquid crude oil futures jumped 7% following a U.S. naval blockade order, and Bitwise filed an updated S-1 for a proposed spot Hyperliquid ETF. WLFI raised concerns by using 5 billion of its own WLFI tokens to borrow $75 million in stablecoins from Dolomite protocol, though WLFI claims over-collateralization. The TAO token declined after Covenant AI, a major subnet developer of Bittensor, exited the network. Covenant AI alleged that the exit was due to pressure and suspended emissions by Bittensor co-founder Jacob Steeves, an accusation that Steeves has denied.

Research Dashboard

According to our research dashboard, the price, volume, and volatility indices grew by +5.28%, +24.01% and +36.95%, respectively, last week. 

Token prices in the index showed mixed performances. BTC and ETH prices increased by +2.6% and +3.9%, respectively. ZEC and TON outperformed in the price, volume, and volatility. WLFI’s price dropped the most among tokens in the index, but led the volume and volatility surge.

A March 2026 Google Quantum AI whitepaper cited Zcash when analyzing quantum risks to current cryptography. Research suggests Zcash may have better resilience than other privacy tools; while a quantum attacker could forge false proofs, they may not be able to break the core privacy. Telegram CEO Pavel Durov announced that the TON blockchain has been upgraded to a high-performance infrastructure, powered by Catchain 2.0 and a new streaming layer. Recent on-chain data shows that World Liberty Financial (WLFI) borrowed roughly $75 million in stablecoins by pledging 5 billion WLFI tokens as collateral on Dolomite, a lending protocol co-founded by WLFI’s Chief Technology Officer. The scale of this position raised red flags regarding liquidity risk. World Liberty Financial defended the move as yield-generating and claimed positions remain safely above liquidation thresholds.

Chart of the Week

The crypto market recently experienced a significant shift in sentiment, evidenced by a marked increase in open interest (OI) for both BTC and ETH futures contracts. As of April 12, BTC OI rose by 16.8% week-over-week to$54.8 billion, while ETH OI climbed 19.5% to $32.4 billion.

This rise in OI — which represents the total number of outstanding derivative contracts yet to be settled — is widely interpreted as a strong indicator of renewed risk appetite among institutional and retail investors alike. This expansion signals that the market is positioning for a major move, underscoring a palpable return of speculative interest and risk-taking in the digital asset space.

Weekly Performance

Top-cap tokens saw mixed performances last week. TON led the surge, while ADA led the drop. 

All categories saw market capitalization increases, except for RWA.

Notable Updates

News Highlights

Company News

• UFC and Crypto.com partnered to co-present UFC Freedom 250 — a landmark event celebrating America’s 250th birthday — to be held at the White House on June 14, 2026, with a $1 million CRO bonus pool for fighters.
• Crypto.com introduced a Cash Yield Program for eligible users in select EEA countries, offering up to 3% p.a. on EUR balances via money market funds managed by Fidelity International, with no minimums, caps, or lockups.

Regulation

• Japan’s cabinet approved a draft amendment to reclassify cryptocurrencies as financial products under the Financial Instruments and Exchange Act, shifting from their status as payment tools. This reclassification is expected to provide clearer investor protections and a robust framework for domestic institutions to offer digital asset services legally.
• Hong Kong granted its first stablecoin issuer licenses to HSBC and a group led by Standard Chartered. This development signals a major step in the city's ambition to become a regulated global hub for digital finance, bridging traditional banking liquidity and the stablecoin market.

Adoption

• Six major Swiss banks, including UBS, launched a sandbox for a joint Swiss Franc-pegged stablecoin. This collaborative approach aims to create a unified digital currency for the Swiss financial center, streamlining domestic payments and reducing settlement risks through shared distributed ledger technology (DLT) standards.

Investment Instruments

• CME Group expanded its digital asset derivatives suite by launching futures for Avalanche (AVAX) and Sui (SUI). This provides institutional investors with regulated tools to gain exposure or hedge positions in emerging Layer-1 blockchain ecosystems beyond Bitcoin and Ethereum.
• Canary Capital filed with the SEC to launch a PEPE ETF, marking a shift toward institutional products for high-market-cap "meme coins." The filing tests regulatory boundaries regarding the market maturity and manipulation risks associated with non-utility tokens.

Other

• The U.S. Department of the Treasury's Office of Cybersecurity and Critical Infrastructure Protection (OCCIP) expanded its free cybersecurity threat intelligence program to include digital asset companies. This move aims to bolster defenses against increasingly sophisticated state-affiliated hackers and reflects a broader federal initiative to treat blockchain infrastructure as critical financial technology.

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