Strategy Watch #2

insights.glassnodePublished on 2026-03-24Last updated on 2026-03-24

Abstract

Strategy Watch #2 provides institutional analysis of digital asset fund performance and allocation trends. The report covers six key areas: institutional capital flows, fund performance, macro strategies, on-chain vault returns, manager sentiment, and allocation updates. In February and early March, Bitcoin and Ethereum saw significant net outflows (-$9.6B and -$3.2B respectively), while stablecoins attracted inflows (+$6.2B), suggesting a defensive shift toward lower-risk assets. BTC ETF flows turned positive in March, though institutional conviction remains cautious. DeFi Total Value Locked (TVL) on Ethereum declined sharply, with peak outflows of -$23.7B in February, indicating reduced participation in on-chain yield strategies. CME basis yields continued to tighten, reflecting lower institutional leverage and softer derivatives demand. The report also highlights performance trends, with only one strategy type generating positive returns in February. Over 300 managers shared their three-month market outlook, and a new $750M fund of funds was announced.

The full report is freely available in PDF format.

Download PDF version

Welcome to Strategy Watch #2

Strategy Watch was built to address a clear demand for high-signal, impartial analysis of fund-level performance and allocation trends in digital assets.

The inaugural edition confirmed this demand, reaching a broad audience of key decision makers, from leading global asset managers, hedge funds, major investment banks, top-tier crypto-native funds and Fund of Funds.

Building on this early momentum, our objective is straightforward — to make Strategy Watch a must-read monthly publication for the digital asset investment community.

This publication is strengthened by direct input from market participants. Funds and allocators that contribute data and insights help shape a more complete and valuable view of the landscape.

If you have insights, data, or allocation updates worth sharing, we welcome your contribution.

Present your latest initiatives and updates to a curated audience of institutional allocators.

Share updates ↗

Inside the Latest Strategy Watch

The report is structured across six core sections, each focused on a distinct dimension of institutional activity in digital assets:

01 Institutional Flow Monitor |

02 Fund and SMA Performance | February was a bloodbath, check this section to see the only strategy type that returned positively last month.

03 Strategy Deep Dive: Macro Strategies | Hear firsthand from a macro portfolio manager on how they are navigating the current geopolitical challenges. 

04 On-chain Vault Performance | Are ETH curators underperforming ETH staking yield?

05 Manager Monitor | Find out how more than 300 managers are expecting the crypto market to perform over the next three months.

06 Allocation Updates | New USD 750m Fund of Funds is launching. Check this section to learn more.

in partnership with

The Premier Digital Assets Allocator Platform. Learn more

Institutional Flow Monitor

Capital flows into BTC and ETH remained deeply negative through February and into March, with stablecoins turning net positive in early March as investors rotated toward lower-risk positioning.

Bitcoin and Ethereum continued to experience sustained net outflows, with BTC and ETH capital flows registering -$9.6B and -$3.2B. However, stablecoins broke from the broader negative trend, flipping to +$6.2B in net inflows. Rather than signaling a broad return of risk appetite, this rotation likely reflects a defensive repositioning, with capital migrating into dollar-denominated on-chain instruments while conviction in spot crypto assets remains under pressure heading into mid-Q1 2026.

ETF & DAT Net Flows

After sustained February outflows, BTC ETF and DAT flows returned to positive, while ETH institutional flows showed early signs of stabilization.

After sustained February outflows, Bitcoin ETF and DAT flows returned to positive territory, recovering to +28k BTC and +46.8k BTC respectively. Ethereum flows were more measured, with ETF flows near neutral at +46.5k ETH and DAT flows stabilizing at +295.8k ETH. While the directional shift is encouraging, the recovery remains early-stage and uneven, and it would be premature to characterize this as a broad resumption of institutional conviction.

DeFi TVL & Stablecoin Cap

DeFi TVL on Ethereum saw sharp contraction through February before showing early signs of stabilization in March, though the broader declining trend since August 2025 remains intact.

Total Value Locked on Ethereum recorded peak outflows of -$23.7B per month in February, implying sustained withdrawal by larger allocators from on-chain activities such as liquidity provisioning and yield strategies. This slowdown alone is insufficient to signal a reversal, and diminished conviction in DeFi risk-adjusted returns continues to point to shallower liquidity depth across the ecosystem.

CME Basis Yield

CME Basis Yield compressed even further in February, reinforcing waning incentives for market-neutral strategies compared to January.

The monthly dollar value captured by institutions via cash-and-carry trades declined notably for both Bitcoin and Ethereum, building on the sharp compression seen since August 2025. This tightening basis reflects reduced leverage deployment, softer futures demand, and continued pullback in balance-sheet commitment amid tighter liquidity conditions persisting from January into early March 2026.

Disclaimer: This report does not provide any investment advice. All data is provided for information and educational purposes only. No investment decision shall be based on the information provided here and you are solely responsible for your own investment decisions.
Exchange balances presented are derived from Glassnode’s comprehensive database of address labels, which are amassed through both officially published exchange information and proprietary clustering algorithms. While we strive to ensure the utmost accuracy in representing exchange balances, it is important to note that these figures might not always encapsulate the entirety of an exchange’s reserves, particularly when exchanges refrain from disclosing their official addresses. We urge users to exercise caution and discretion when utilizing these metrics. Glassnode shall not be held responsible for any discrepancies or potential inaccuracies. Please read our Transparency Notice when using exchange data.

Related Questions

QWhat is the primary purpose of the Strategy Watch publication?

AStrategy Watch was built to address a clear demand for high-signal, impartial analysis of fund-level performance and allocation trends in digital assets, aiming to be a must-read monthly publication for the digital asset investment community.

QWhich was the only strategy type that returned positively in February according to the report?

AThe report indicates that readers should check the 'Fund and SMA Performance' section to see the only strategy type that returned positively in February, though the specific strategy name is not stated in the provided text.

QWhat was the trend in capital flows for Bitcoin (BTC) and Ethereum (ETH) through February and into March?

ACapital flows into BTC and ETH remained deeply negative, with BTC and ETH capital flows registering -$9.6B and -$3.2B, respectively.

QHow did stablecoin capital flows behave in contrast to BTC and ETH in early March?

AStablecoins broke from the broader negative trend, flipping to +$6.2B in net inflows, which likely reflects a defensive repositioning into lower-risk, dollar-denominated on-chain instruments.

QWhat does the sharp compression in CME Basis Yield indicate about market conditions?

AThe compression in CME Basis Yield reflects reduced leverage deployment, softer futures demand, and a continued pullback in balance-sheet commitment amid tighter liquidity conditions, indicating waning incentives for market-neutral strategies.

Related Reads

Luno Cuts 20% of Global Workforce as Cryptocurrency Exchange Shifts Priorities Towards Automation

Luno, a global cryptocurrency exchange owned by Digital Currency Group, is reducing its global workforce by 20% as part of a major operational restructuring driven by a downturn in retail crypto activity and increased automation. CEO James Lanigan announced the layoffs on July 28, stating it was a difficult but necessary decision to build a more sustainable structure for the long term. The company did not disclose the total number of affected employees, though South African staff are among those impacted, with formal consultations initiated there in line with local labor laws. This marks the second major round of layoffs in three and a half years, following a 35% staff reduction in January 2023. The company cites cyclical declines in retail user activity and ongoing investment in automated tools as key factors behind the restructuring, which has fundamentally changed the firm's resource needs. Concurrently, Luno is reorganizing into three unified divisions built on a single core platform: 1) a consolidated consumer and API platform serving over 16 million users in Africa and Asia-Pacific, 2) a stablecoin solutions unit focused on the zar-backed 'Zaru' stablecoin launched in February 2026, and 3) an institutional arm offering OTC services and cross-border settlement networks. This restructuring follows recent market withdrawals, with Luno discontinuing services in certain markets from September 1, 2026.

cryptonews.ru16m ago

Luno Cuts 20% of Global Workforce as Cryptocurrency Exchange Shifts Priorities Towards Automation

cryptonews.ru16m ago

Underdog's UDX trading volume reaches $1.2 million in a day, representing about 5% of the company's estimated total trading volume

Underdog's newly launched prediction market exchange, UDX, recorded $1.2 million in nominal trading volume on July 27, just 10 days after processing its first test trades. This figure represents about 5.4% of Underdog's average daily trading volume, which CEO Jeremy Levine has estimated will reach $4.4 billion for 2026. The exchange launched with an existing client base and market maker program, avoiding typical liquidity challenges. However, the $1.2 million is a nominal volume (counting both sides of a trade) and not customer bets. Additionally, most of Underdog's historical trading volume has been routed through third-party exchanges like Kalshi and Crypto.com/Nadex. The company's recent CFTC-certified contracts for combo bets are expected to boost UDX's volume soon. Underdog's key challenge will be shifting a larger portion of its significant daily volume from external platforms to its own exchange, following a path similar to DraftKings and others in the sector.

cryptonews.ru16m ago

Underdog's UDX trading volume reaches $1.2 million in a day, representing about 5% of the company's estimated total trading volume

cryptonews.ru16m ago

Coinbase's 'Wrapped XRP' Expands DeFi Possibilities Through Integration with Doppler Finance on the Base Platform

Coinbase's Wrapped XRP (cbXRP) expands DeFi utility through integration with Doppler Finance on the Base platform. Doppler, an institutional-grade yield infrastructure built on the XRP Ledger (XRPL), announced the expansion, starting with cbXRP support and planning to include other tokenized assets later. This move is part of Doppler's broader multi-chain strategy to enable tokenized assets to be used for lending, borrowing, staking, and other DeFi applications on-chain. cbXRP is a 1:1 XRP-backed token issued by Coinbase, allowing holders to interact with Base's DeFi ecosystem while maintaining exposure to the underlying asset. Public dashboards show nearly 105.64 million cbXRP in circulation, fully backed by an equivalent amount of XRP in reserve. The integration aligns with Coinbase's expansion of Base into a platform supporting payments, lending, borrowing, and tokenized investments. It also coincides with growing XRP ecosystem developments, including over one million transactions by XRPL agents and Ripple's treasury solutions for enterprise liquidity management. Doppler plans to gradually add support for more tokenized assets on Base in future deployment phases.

cryptonews.ru18m ago

Coinbase's 'Wrapped XRP' Expands DeFi Possibilities Through Integration with Doppler Finance on the Base Platform

cryptonews.ru18m ago

U.S. Department of Justice Charges Cryptocurrency Investor in Alleged $20 Million Fraud Affecting Dozens of Victims

The U.S. Department of Justice has charged 43-year-old crypto investor Benjamin Paul Weiner with a 29-count indictment related to an alleged $20 million fraud affecting dozens of victims. The charges include wire fraud, money laundering, bank fraud, and aggravated identity theft. Weiner pleaded not guilty and was released on bail. Prosecutors allege Weiner solicited investments into companies he controlled through false statements. The scheme impacted victims across South Dakota, Minnesota, and neighboring states. He allegedly used new investor funds to pay personal expenses and earlier participants, while obfuscating fund flows through financial institutions and crypto exchanges. This case mirrors recent DOJ actions against crypto frauds employing Ponzi-like tactics. The FBI reports crypto-related losses exceeded $11.36 billion in 2025, with investment fraud being the costliest category. Separately, Weiner is accused of obtaining a $1 million line of credit using fake documents and another person's identity. If convicted, he faces up to 20 years for wire fraud/money laundering, 30 years for bank fraud, and a mandatory 2-year consecutive sentence for identity theft. His federal trial is set for September 15, 2026.

cryptonews.ru19m ago

U.S. Department of Justice Charges Cryptocurrency Investor in Alleged $20 Million Fraud Affecting Dozens of Victims

cryptonews.ru19m ago

Turkey blocked 47,493 illegal betting sites amid expanded measures targeting cryptocurrency accounts

Turkey has blocked access to 47,493 illegal betting websites since January 1st as part of a nationwide crackdown on online gambling operators and their payment networks. Police and gendarmerie conducted 680 operations, detaining 5,629 suspects, with 3,231 placed in pre-trial detention and 1,515 placed under judicial supervision. Cybercrime units are conducting 24/7 monitoring of illegal betting sites, social media ads, and digital payment channels. Investigators are tracking bank accounts, e-money services, and crypto asset wallets suspected of facilitating betting operations or laundering criminal proceeds. The actions follow earlier raids in May targeting over 670 suspects, with one investigation in Adana uncovering cryptocurrency platforms used for laundering betting revenues. Authorities highlighted a specific case involving a network allegedly coordinated by a suspect with initials İ.Ö.Ö., which reportedly generated revenue from illegal betting and match-fixing. Prosecutors identified seven overseas crypto wallets that received transfers from this network, estimating total transaction volume at $4 billion. All related bank and crypto accounts were frozen. The network allegedly recruited individuals to act as "common accounts" for processing bets in exchange for a 1% commission. In separate operations, authorities blocked 4,742 bank accounts and six crypto accounts in Adana, and identified transactional activity worth approximately $104 million across 47 suspects. Assets including companies, vehicles, and properties were seized. The crackdown includes real-time disruption. During the 2022 World Cup final, prosecutors identified and ordered the freezing of 6,314 bank accounts used for illegal betting, aided by an AI analysis system called AVCI. They project illegal betting volume for the 2026 World Cup could reach $50 billion. Justice Minister Yılmaz Tunç stated that 19 offshore "financial companies" managing panel systems for illegal betting sites were identified, with legal proceedings initiated against 23 suspects. He emphasized a strategic shift towards "draining the swamp" through coordinated asset seizures and digital evidence collection, rather than relying on individual prosecutions.

cryptonews.ru21m ago

Turkey blocked 47,493 illegal betting sites amid expanded measures targeting cryptocurrency accounts

cryptonews.ru21m ago

Trading

Spot
活动图片