Apr 14, 2025: Our weekly Institutional Insights explores the latest market developments — market performance, industry news, exchange-traded fund (ETF) flows, trending topics, upcoming events and token unlocks — to help you supercharge your crypto trading.

 explores the latest market developments — market performance, industry news, exchange-traded fund (ETF) flows, trending topics, upcoming events and token unlocks — to help you supercharge your crypto trading.

Weekly highlight — Apple exemptions send crypto higher 

US president Donald Trump’s administration recently exempted smartphones, computers and other electronics from reciprocal tariffs, providing significant relief for major technology manufacturers like Apple and NVIDIA. This move, announced by US Customs and Border Protection, limits the impact of Trump’s 125% tariff on goods from China and baseline 10% global tariff affecting many countries.

The exclusions cover popular electronics, such as smartphones, laptops, hard drives and memory chips, typically not domestically produced. This decision is welcome news for consumers who feared rising prices due to potential tariffs. It also benefits major tech companies that have made substantial investment pledges in the US domestic markets to the Trump administration.

The tariff reprieve marks a noteworthy easing in Trump's trade conflict with China, effective retroactively from April 5. White House Press Secretary Karoline Leavitt emphasized that America must not depend upon China for critical technologies, highlighting the president's efforts to secure substantial investments from leading tech firms to bolster domestic manufacturing. 

However, the reprieve may be temporary. The exclusions stem from an initial order designed to prevent cumulative tariffs on specific sectors. While certain semiconductor manufacturing equipment is excluded, the announcement doesn’t cover the 20% tariff targeting China, aimed at addressing fentanyl shipments.

Analysts note that while this exemption is a win for the tech industry, uncertainty remains regarding future tariffs. The administration is poised to further investigate semiconductor imports, potentially leading to new tariffs in the coming weeks. As negotiations evolve, other countries may seek similar exceptions, complicating the trade landscape. 

Overall, while this announcement offers temporary relief, the future of tariffs remains uncertain as the administration continues its aggressive trade policies.

Weekly crypto highlight — Bitcoin has its role to play amid volatility

The concept of "safe haven" assets, traditionally represented by gold and government bonds, is being challenged in today’s volatile markets. For decades, investors relied on a classic portfolio structure of 60% equities and 40% bonds, with capital flowing into gold and government bonds during market downturns. These assets were seen as stable and reliable, ideal for safeguarding against volatility. However, in a world marked by constant market activity, geopolitical unrest and rising skepticism toward governments, the definition of a safe-haven asset may require reevaluation.

Enter Bitcoin, a highly volatile and often misunderstood asset. Despite skepticism from many investors, Bitcoin has significantly outperformed traditional safe-haven assets since the COVID-19 market lows, rising over 1,000% since March 2020. In contrast, long-duration bonds have dropped by 50%, and gold, while up 90% over five years, appears less impressive when adjusted for monetary inflation.

However, Bitcoin's status as a safe haven remains debated. During various risk-off events, it’s behaved more like a high-beta asset than a protective hedge. For instance, in March 2020, BTC fell 40%, while the Nasdaq-100 dropped 27%. But during the recent tariff-led sell-off in April 2025, Bitcoin held up better than the Nasdaq-100, suggesting emerging strength.

Non-sovereign assets like Bitcoin could thrive amid geopolitical tensions, given their decentralized, censorship-resistant nature. Traditional safe havens like gold and long-duration bonds are losing their luster, with gold’s gains overshadowed by monetary expansion and rising yields on Treasury bonds.

As Bitcoin continues to demonstrate resilience, it may challenge the notion of what constitutes a safe haven. While it may not fit the classic definition of a low-volatility asset, its durability, neutrality and liquidity make it increasingly relevant in today’s financial landscape. Thus, the traditional playbook for safe-haven assets may need an update.

Advanced

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Weekly Institutional Insights: Apple exemptions send crypto higher; Bitcoin’s role to challenge gold

Our weekly crypto derivatives analytics report delves into macro events; the current state of crypto and trading signals from spot trading volume; and futures, options and perpetual contracts.

After initially resisting US president Trump’s “Liberation Day” tariffs, crypto markets joined the global sell-off, with BTC falling from $87K on April 2 to a low of $74K. BTC’s term structure was inverted again before easing, while ETH’s term structure remained inverted. Meanwhile, short-term BTC volatility skews favored OTM puts, reflecting more bearish sentiment than during the Q1 2023 US banking crisis. However, volatility levels decreased after Trump announced a 90-day pause on tariffs (excluding those on China), leading to a significant rally in spot prices.

Please check out the report’s highlights.

BTC open interest declined substantially this week

Bybit’s largest perpetual swap markets initially remained stable during the broader market sell-off and tariff reactions, recovering from the dip after the 

. However, Trump’s recent announcement and subsequent pause of near-unilateral import tariffs significantly impacted these markets, leading to notable declines in open interest for BTC and ETH, which have fallen sharply from their late March highs.

After a brief period of positive funding rates, BTC’s perpetual swap market fluctuated between positive and negative sentiment, indicating traders were hesitant to commit to a strong directional move (similar to trends in options markets). This changed when President Trump announced a 90-day tariff relief, leading to positive jumps in funding rates. Altcoins displayed a similar pattern, with funding rates alternately positive and negative before rising following the tariff announcement.

During the April 6–7, 2025 sell-off, traders sought downside protection, as BTC's spot price fell to $75K in reaction to President Trump’s tariff announcement. The high volume of put options relative to calls indicates strong demand for this protection. Meanwhile, the US's reciprocal tariffs caused a significant inversion in BTC’s at-the-money volatility term structure, which, although it has eased, remains inverted. Additionally, there‘s a stronger skew toward OTM puts at short tenors as compared to the March 2023 US banking crisis. Put open interest has surged over the past week, reflecting extremely bearish sentiment for both the near and long terms.

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Bybit X Block Scholes crypto derivatives analytics report (Apr 9, 2025): Tariffs bring substantial volatility at a level similar to that of the Q1 2023 US banking crisis

In this tutorial, we’ll explore how you can stake and mint Lombard LBTCv on Bybit Web3 Staking with the Bybit Web3 Seed Phrase Wallet. 

In this tutorial, we’ll explore how you can stake BTC to mint 

Please note that in order to get started, you’ll first need to download the Bybit App on the Apple App Store or Google Play Store. 

How to stake and mint LBTCv with Bybit Web3 Staking

: Launch the Bybit App on your mobile device and tap on the 

: Deposit BTC into your preferred Bybit Web3 Seed Phrase Wallet BTC address.

: Once you’ve deposited BTC into your wallet address, tap on the 

drop-down and select the BTC address into which you’ve deposited BTC. 

: Input the exact amount of BTC you’d like to stake, and tap on 

 and sign the message to allow this exact amount of BTC to be staked.

 page. Ensure that the amount of BTC is exactly the same as you wish to stake, and tap on 

: Tap on the icon located at the upper-right corner of the screen to check your transaction history.

: You’ll receive LBTCv in three progressive stages:

: Once you’ve received LBTCv, you can check your points (updated every hour).

If you wish to stake more BTC, simply repeat Steps 7 through 12. However, please

that you won’t be able to stake more BTC as long as you haven’t yet received your LBTCv.

To redeem your LBTC, simply scroll down the 

button. Then, wait three days for the successful redemption of LBTC.

If you wish to cancel your redemption, you can do so within these three days.

Beginner

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How to stake and mint Lombard LBTCv with Bybit Web3 Staking

A Chainlink Spot ETF would bridge TradFi and crypto, offering a simplified way to gain exposure to LINK without the complexities of digital wallets or exchanges.

There's been a recent surge in spot ETF applications as investors look for ways to sidestep the rigid frameworks of traditional finance. The success of 

 — drawing billions in inflows — signals a major shift in the way institutions approach crypto investments. 

 networks, is in line for its own Spot ETF. The proposed fund promises a direct, hassle-free way to invest in Chainlink (LINK), eliminating the need to deal with complex 

 and exchanges. This article explores what a Chainlink Spot ETF is, how it would work, its current market impact and what its potential approval could mean for investors and the broader crypto landscape.

A Chainlink Spot ETF is an exchange-traded fund, backed by Chainlink (LINK) tokens, that would directly track the market price of LINK, a cryptocurrency powering decentralized oracle networks, thus enabling investors to gain exposure without directly holding the asset itself.

 (ETF) would offer investors direct exposure to LINK’s price movements without requiring the investors to handle the digital asset directly. 

Authorized Participants (APs), typically large financial institutions or market makers approved by the ETF issuer, play a central role in maintaining liquidity and aligning the ETF’s market price with its net asset value (NAV). These entities facilitate the creation and redemption of ETF shares by acquiring LINK tokens from exchanges or over-the-counter markets, and transferring them to the ETF’s custodian, a regulated entity responsible for secure storage. 

In exchange, the ETF issuer provides APs with newly created shares, which represent fractional ownership of the underlying assets. The shares are then introduced to secondary markets for investors to trade.

Creation, redemption and listing of shares

When redeeming shares, APs collect ETF shares from the market and return them to the issuer, receiving LINK tokens from the custodian in return. These tokens can be sold on the open market or held, depending upon the AP’s strategy. This creation-redemption process enables an 

 mechanism that stabilizes the ETF’s price, relative to its underlying assets. 

If the ETF is trading at a premium to NAV, APs create and sell shares to capitalize on the price difference, pushing the market price downward. Conversely, if the ETF is trading at a discount, APs redeem shares, reducing supply and driving the price upward. This dynamic ensures that the ETF’s market price remains closely tied to LINK’s actual value. 

Shares are listed on exchanges and traded like traditional stocks, integrating seamlessly into existing portfolios while offering potential tax efficiencies. The structure combines the accessibility of conventional investments with the benefits of cryptocurrency exposure, appealing to those seeking indirect participation in LINK’s market movements through a regulated and familiar framework. For investors, the ETF will simplify exposure to Chainlink by eliminating the need to manage 

 or wallets, or navigate complex crypto exchanges. 

The Hashdex Nasdaq Crypto Index US ETF, which includes Chainlink (LINK), has gained attention as a significant development in the crypto ETF space. This ETF, 

 in February 2025 and currently provides exposure to Bitcoin and Ethereum. 

 with the SEC on Mar 14, 2025 to expand the ETF's scope to include additional cryptocurrencies like LINK, ADA and SOL. This application remains the sole filing for a Spot Link ETF (as of Mar 20, 2025). While the SEC has approved the fund's initial structure, its response to the inclusion of Chainlink and other assets remains pending.

The SEC has historically been cautious about approving spot cryptocurrency ETFs, due to concerns about market manipulation and investor protection. However, the approval of multi-asset ETFs such as NCIQ signals a potential shift in regulatory attitudes. Market sentiment has been cautiously optimistic, with investors viewing these developments as a step toward broader acceptance and integration of cryptocurrencies into traditional financial systems. The timeline for the approval of Chainlink Spot ETFs remains uncertain, but growing institutional interest and regulatory advancements suggest progress in the near future.

Current impact of Chainlink Spot ETF applications on the crypto market

The anticipation surrounding Chainlink Spot ETF applications is clearly influencing market sentiment. Although Chainlink's price hasn’t yet surged dramatically, increased investor interest and speculation about potential ETF approvals have boosted overall optimism. 

Data from LINK and CoinGlass reveals that 

 have fallen to 138.8 million coins, the lowest since September 2024, indicating that investors are holding onto their tokens in self-custody wallets instead of selling. This trend reflects a growing belief that SEC approval for a Spot LINK ETF could substantially boost the token’s price. In addition, Chainlink’s role as one of the largest oracle networks and its innovative cross-chain interoperability protocol for asset tokenization further reinforce this positive outlook.

What will it mean if a Chainlink Spot ETF application is approved?

The approval of a Chainlink Spot ETF would have some significant implications for both the cryptocurrency market and traditional financial sectors, as follows.

If you’re looking to capture the market and trade LINK tokens, Bybit offers the 

A Chainlink Spot ETF would connect cryptocurrency with traditional finance by allowing investors to track LINK’s price without the complications of managing digital wallets. Specifically, it would keep the ETF's price in line with LINK’s market value, increase liquidity and attract institutional investors. Approval of a Chainlink Spot ETF could drive LINK's price higher, similar to trends seen with Bitcoin ETFs, and confirm Chainlink’s importance in the crypto ecosystem, encouraging its use across various industries. 

However, investors need to be cautious of potential short-term price swings and changes in regulations. Overall, this ETF would make crypto investing simpler for a broader audience, strengthening Chainlink’s position and supporting wider acceptance of blockchain technology in the financial world.

Intermediate

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Chainlink Spot ETF: A gateway to decentralized oracle investment

Bybit Learn

Bitcoin

If the SEC approves a Bitcoin spot ETF application, it would mark a seminal moment for both the crypto industry and the financial markets. Learn more here.

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) has set the crypto world abuzz. As a Jan 10, 2024 

 approached, rumors were swirling and causing market volatility. The 

 of the U.S. Securities and Exchange Commission (SEC) was hacked on January 9 to announce a phony approval before Bitcoin spot ETFs were finally approved a day later. What's all the fuss about — and why does it matter? 

This article unravels the Bitcoin spot ETF approval and explains how it works, the status of pending applications and its implications for crypto investors.

A Bitcoin spot ETF is an investment product that tracks the price of Bitcoin in the spot market, where it’s bought and sold for immediate delivery.

 aims to mirror the spot Bitcoin price by buying Bitcoin in a secure digital vault. In contrast, current Bitcoin ETFs use 

 or other indirect instruments to gain exposure to Bitcoin. With the advent of a Bitcoin spot ETF, investors could access Bitcoin spot exposure on a traditional stock exchange, such as the NYSE or the Nasdaq, without directly buying and storing Bitcoin.

A Bitcoin spot ETF would work similarly to other ETFs that track commodities or currencies. The fund would have a sponsor or manager, who would create and redeem the fund's shares in exchange for Bitcoin. In addition, it would have a custodian to store and secure Bitcoin on behalf of the fund, which would charge a fee for its services and aim to track the performance of a Bitcoin price index.

Investors who want to invest in Bitcoin through a spot ETF wouldn’t need to buy, sell or store Bitcoin themselves. They would simply buy and sell shares of the fund on the stock exchange, just as with any other stock. A Bitcoin spot ETF would provide several benefits for investors:

Current Landscape of the Bitcoin Spot ETF

, Valkyrie, ARK 21Shares, Bitwise and Fidelity applied for approval for spot Bitcoin ETFs from the U.S. Securities and Exchange Commission (

the SEC needed to approve both the 19b-4 and S-1 filing forms for each ETF. 

 believed they were close to final approval after discussing final wording changes on spot Bitcoin ETF filings with the SEC on Friday, Jan 5, 2024, and many expected approval as early as Jan 9 or 10. 

By January 9, several leading financial firms had updated their S-1 filings, signaling the final stages before the possible approval of their respective spot Bitcoin ETFs. Notably, these filings have revealed sponsor fees, many of which are being announced for the first time. 

For example, BlackRock initially set a sponsor fee of 0.3%, which was later reduced to 0.25%. Its original discount was also reduced from 0.2% to 0.12% during its first year or until the ETF accumulates $5 billion in assets. VanEck has opted for a lower permanent fee of 0.25%, while WisdomTree's fee is higher at 0.3%. Bloomberg ETF analyst Eric Balchunas commented on the competitiveness of BlackRock's fees, highlighting the challenging environment for other firms. 

Similarly, ARK 21Shares reduced its fee from 0.8% to 0.21%, with no fees for the first six months or until reaching $1 billion in assets, a move Balchunas described as significant in the context of the ongoing fee wars. Additionally, Grayscale filed an amended S-3 form to convert its flagship Bitcoin trust into an ETF, lowering its fee from 2% to 1.5%. 

These updates follow the recent final amendments to their 19b-4 forms. Now, the focus shifts to the SEC for their decision. After SEC approval, the ETFs can start trading the next day.

As if there weren’t already enough intrigue, the SEC’s X (formerly Twitter) account posted a false statement approving spot Bitcoin ETFs on January 9. The regulator confirmed that hackers had compromised the account, likely because they hadn’t set up two-factor authentication. The bogus tweet caused about 

 in liquidations, after the price of Bitcoin rose and promptly fell when the truth came out. 

Current Impact on the Crypto Market of Bitcoin Spot ETF Applications

The anticipation surrounding potential approval of Bitcoin spot ETFs in the U.S. 

 a visible impact on the crypto market, notably affecting Bitcoin's price and overall sentiment. A flash-crash triggered by a 

 predicting rejection of all BTC spot ETF applications momentarily pushed BTC below $41,000. However, 

 estimate of a 90% probability of SEC approval by Jan 10, 2024 contributed to Bitcoin's rebound to $45,000. Soon after, BTC price further surged to $47,000 for the first time since April 2022, buoyed by investor optimism surrounding the anticipated approval of U.S. spot BTC ETFs.

According to a recent survey, financial advisors view the spot ETF approval as a significant catalyst, with 88% expressing interest in purchasing Bitcoin once these ETFs receive approval. They're considered preferable to existing futures-based options, and there's a prevailing belief that they’ll draw substantial investment into the world’s primary cryptocurrency. 

Analysts expect the ETFs could attract over 

In addition, there's speculation that attention might shift to 

. Markus Thielen of Matrixport anticipates potential outperformance of ETH over BTC, with decisions on 

 applications potentially arriving around May.

Overall, market sentiment is bullish, given that ETF approval could mark a pivotal moment in mainstream adoption and acknowledgment of digital assets. It's expected to bolster market liquidity and transparency and potentially diminish volatility and manipulation risks. In addition, it’s seen as a catalyst for further innovation in the crypto space, potentially sparking advancements in futures, options contracts, 

On Jan 10, 2024, the SEC finally approved Bitcoin spot ETFs for the first time based on a 3-2 vote. Despite previously having spoken negatively about the risks of crypto, SEC Chair Gary Gensler cast the deciding vote in support of ETF approval. A federal court mandate to review Grayscale’s ETF application may have put the pressure on.

Meanwhile, applications from ARK 21Shares, Invesco/Galaxy, VanEck, WisdomTree, Fidelity

, Valkyrie Investments, BlackRock, Grayscale, Bitwise, Hashdex and Franklin Templeton have all been approved.

What Does Bitcoin Spot ETF Application Approval Mean?

The SEC’s approval of Bitcoin spot ETF applications marks a huge moment for the crypto industry and the financial markets. Such a decision signals that U.S. regulators recognize Bitcoin as an asset class, and that the crypto industry has a shot at meeting their standards of investor protection and market integrity. This recognition could open doors for more innovation and the adoption of crypto assets, making it easier for all sorts of investors to get involved with Bitcoin.

Here are some potential developments following the approval of Bitcoin spot ETFs:

However, there are concerns as well. The introduction of a Bitcoin spot ETF could mean more regulations and middlemen entering the crypto market, which might go against the very principles that have driven crypto's growth — decentralization and freedom from traditional financial controls. Again, being tied to the stock market and regulatory bodies could steer the crypto industry in directions that might not align with its original goals.

In essence, while a Bitcoin spot ETF could bring in resources and connections, there’s also the possibility it may compromise some of the fundamental values that make cryptocurrencies unique. There’s a balancing act between growth and staying true to the principles that sparked the crypto revolution.

The current Bitcoin spot ETF approval makes it easier for institutional and retail investors to get into Bitcoin without the technical and regulatory complexities associated with directly holding the digital asset. As a result, it’s been one of the most anticipated and influential events for the crypto world. This approval could transform how people invest in cryptocurrencies. Yet, it may overshadow other cryptocurrencies and introduce new regulations that challenge crypto's core principles. It would be a big step forward, but it also poses questions about maintaining the essence of decentralization in this evolving landscape.

Bitcoin Spot ETF Approval: What It Means for Crypto Investors

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