21 Bits Newsletter - April 2026

TL;DR

• U.S. spot Bitcoin ETFs recorded their strongest monthly inflows since October 2025 (~$1.6 billion in net inflows in March)
• On the regulatory front, a bipartisan Senate deal has put the CLARITY Act on track for a vote within weeks, potentially replacing enforcement-based crypto regulation with clearer statutory rules.
• Tokenization continues to gain momentum - Nasdaq and Kraken partnered for 24/7 stock trading, Franklin Templeton and Ondo launched round-the-clock ETF trading from crypto wallets, and New Hampshire announced a $100M Bitcoin-backed municipal bond.
• Bitcoin remains supported at 65,600 despite the broader downtrend, with resistance at 72,700.

THOUGHTS

After four months of sustained net outflows, U.S. spot Bitcoin ETFs have turned a corner. March 2026 marked the strongest monthly inflow period since October 2025, with Bitcoin ETFs absorbing approximately $1.6 billion in net inflows, a sharp reversal from the persistent redemption pressure that characterized the recent market correction. During that downturn, the flows remained consistently negative as prices declined toward the $65,000 region.

What makes the comeback more striking is what was happening in gold at the same time. While Bitcoin ETFs were recovering, gold ETFs shed an estimated $9 billion in cumulative net outflows over just three weeks, with GLD recording its largest single-day withdrawal in over two years. This divergence has prompted serious questions about whether institutional capital is beginning to rotate away from traditional safe-haven assets and toward Bitcoin as an alternative store of value.

The nature of the inflows also stands out. Rather than the speculative, retail-driven demand that defined previous cycles, this recovery has been gradual and institution-led.

A note of caution is worth including. The final week of March saw approximately $296 million in net outflows, breaking a four-week inflow streak. Analysts largely attribute this to routine quarter-end portfolio rebalancing rather than any meaningful shift in sentiment and with the full-year net outflow figure now trimmed to just $210 million, a single strong trading day could push 2026 firmly into positive territory.

TOP STORIES

Franklin Templeton and Ondo Finance Launch 24/7 Tokenised ETF Trading

Franklin Templeton has teamed up with Ondo Finance to bring tokenised ETFs to crypto wallets through Ondo Global Markets, allowing investors to trade around the clock without needing a brokerage account. Ondo acquires the underlying ETF shares and issues tokens that represent economic exposure to those assets. The platform is initially targeting investors across Europe, Asia-Pacific, the Middle East, and Latin America, and has already gained significant traction, reporting over $620M in total value locked and $12B in cumulative trading volume since its September 2025 launch.

New Hampshire plans $100M Bitcoin-backed municipal bond sale

New Hampshire is planning to raise $100 million through a municipal bond sale backed by Bitcoin, according to Bloomberg. The move would make New Hampshire one of the first U.S. states to use Bitcoin as collateral for public debt financing, reflecting growing institutional confidence in digital assets and a broader push by some state governments to incorporate cryptocurrency into their financial strategies.

Ethereum Foundation prepares for quantum threat with new cryptography roadmap.

The Ethereum Foundation has unveiled a roadmap to protect the Ethereum network against the emerging threat of quantum computing. The Foundation is working to integrate quantum-resistant cryptography which is advanced security standards designed to withstand attacks from quantum machines, ensuring the long-term safety and integrity of the Ethereum ecosystem.

U.S. Senators reach bipartisan deal with Whitehouse on stablecoin yield dispute

The CLARITY Act has cleared a major legislative hurdle after Senators Thom Tillis and Angela Alsobrooks reached an agreement in principle with the White House on stablecoin yield language which is the key issue that had stalled the bill for months. The deal aims to protect innovation while preventing widespread deposit flight, and the bill could now move to a Senate vote within weeks. If passed, it would replace regulation by enforcement with clearer rules on token classification, intermediary standards, RWA tokenization, and small transaction taxes. Having already passed the House in July 2025, the Senate version had been held up in the Banking Committee over a dispute between banks and crypto firms, a fight that now appears to be resolved.

Nasdaq Partners With Kraken in Plan for 24/7 Tokenized Stock Trading

Nasdaq and Kraken have partnered to enable 24/7 trading of tokenized stocks. Unlike traditional stock markets with fixed trading hours, this collaboration leverages Kraken’s crypto infrastructure to give investors continuous, round-the-clock access to equity markets. It marks a significant step in bridging traditional finance with the flexibility of blockchain technology.

BITCOIN ANALYSIS

Bitcoin has repeatedly found support at the 65,600 level, despite the broader downtrend remaining intact. A breakout attempt above 76,000 was met with rejection. Key levels to watch are resistance at 72,700 and support at 65,600.

CRYPTO MARKET PERFORMANCE

MARCH 2026

PRODUCT PERFORMANCE

MARCH 2026

March 2026 saw a broad market recovery across crypto assets, partially offsetting February’s correction.

• Bitcoin Product: Up 3.59%, leading the recovery with strong momentum through mid-month before correcting into month-end.
• Crypto Index Product: Up 1.85%, reflecting a broader but more tempered rebound across the crypto market as altcoins recovered unevenly.
• Crypto & Gold Product: Up 0.02%, delivering a near-flat return for the month. While the gold allocation helped cushion February’s downturn, it also limited upside participation during March’s crypto-led recovery.

BLOOMBERG GALAXY CRYPTO INDEX (BGCI)

APRIL 2026

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