Gate Research Institute: Ethereum Spot ETF saw the third highest net outflow in history last week | ZEC contract holdings hit a new high

Crypto Market Overview

• BTC ( -0.42% | Current Price 95,092 USDT): BTC remains in a short-term weak consolidation downward structure, with 92,976 USD constituting an important low point in the short cycle, which is also the core defense position for bulls. As long as this range is not broken, prices are expected to continue forming a rebound structure at the bottom range; to the upside, attention should be focused on the breakout situation at 95,200 USD. Once stabilized, the short-term rebound may extend to the previous dense trading area of 96,500–97,200 USD. On November 14, the net outflow of BTC ETF reached 492 million USD in a single day, among which BlackRock's IBIT saw an outflow of 463 million USD, and Fidelity's FBTC had an outflow of 2.1 million USD.
• ETH (-1.8% | Current price 3,143 USDT): ETH is still in a weak oscillation structure during the short cycle, but a significant rebound signal has appeared after hitting a low of 3,004 USD. From a key price perspective, the 3,000–3,020 USD range forms an important short-term support, with bulls repeatedly organizing defense in this range, allowing the short-term rebound structure to be established; upward resistance is concentrated in the 3,150–3,180 USD area. If ETH can break through and maintain above MA30, there is hope for a further challenge to the previous oscillation dense range of 3,220–3,260 USD. On November 14, ETH ETF saw a net outflow of 177 million USD in a single day, with BlackRock ETHA inflowing 173 million USD.
• Altcoins: Most mainstream altcoins continue to decline, with overall market sentiment being cautious, and investor sentiment mainly leaning towards “buy” and “neutral”. The Fear and Greed Index reports 14 today, falling into the extreme fear zone, indicating that market risk appetite remains low.
• Macro: On November 14, the S&P 500 Index fell by 0.05%, closing at 6,734.11 points; the Dow Jones Index dropped by 0.65%, closing at 47,147.48 points; the Nasdaq Index rose by 0.13%, closing at 22,900.59 points. As of November 17, 11:00 AM ( UTC+8, the spot gold price is temporarily reported at 4,081 dollars per ounce, with a 24H increase of 0.04%.

Trending Tokens on Juejin

RESOLV Resolv (+44.4%, Market Cap 31.339 million USD)

According to Gate market data, the current price of the RESOLV token is $0.197, which has increased by about 44.4% in the last 24 hours. Resolv is a DeFi protocol that centers around the issuance of a stablecoin called USR, using ETH and BTC as collateral; it maintains the peg of USR to the US dollar through a strategy known as “Delta Neutral,” which hedges against price fluctuations of ETH and BTC using perpetual contracts, thereby stabilizing value without relying on traditional fiat reserves.

The recent rise of RESOLV is mainly attributable to the strong buyback mechanism of the protocol and the continuously expanding capital inflow. The protocol allocates 75% of its income for buybacks each week, with a cumulative execution of $100,000 in RESOLV buybacks and acquisitions last week (average price of about $0.11), supported by 20% of the core protocol fees, creating sustained buying pressure. Additionally, the Resolv on-chain spot fund has maintained significant net inflows over the past 7 days, further enhancing market confidence. As the protocol accelerates integration with high-quality multi-chain projects on the ecosystem front and improves stablecoin yield by reducing risk exposure on the earnings front, the intrinsic value support continues to strengthen, and multiple favorable factors collectively boost the price performance of RESOLV.

LIGHT Bitlight Labs (+49.17%, circulating market cap 7,885.88 million USD)

According to Gate's market data, the current price of the LIGHT token is 1.8 USD, with an increase of approximately 49.17% in the last 24 hours. Bitlight Labs is an infrastructure project dedicated to enhancing the functionality of Bitcoin, with its core focus on enabling smart contracts and stablecoin transactions through the integration of the RGB protocol and the Lightning Network.

The core driving force behind the rise of LIGHT comes from the key technological breakthroughs of the RGB native DEX. Bitlight Labs announced the first successful integration of Bitcoin, the Lightning Network, and the RGB protocol, enabling PayJoin + RGB20 transactions across BTC, LN, and RGB, allowing users to seamlessly conduct stablecoin transactions and payments on the Bitcoin underlying network. This update is regarded as a milestone progress due to its high technical difficulty, significantly enhancing the usability and expectations of the RGB ecosystem, thereby further strengthening LIGHT.

KITE Kite AI (+13.59%, circulating market value 167 million USD)

According to Gate.io market data, the current price of the KITE token is $0.092, having increased approximately 13.59% in the last 24 hours. Kite AI is a decentralized ecosystem built on a custom blockchain platform, with the mission of creating a fair artificial intelligence economy where everyone can contribute and receive corresponding rewards.

The strong rise of KITE is mainly attributed to its rapid expansion and key developments in the AI payment sector. Kite AI previously received a strategic investment of $33 million to drive the large-scale adoption of the x402 protocol, positioning itself as one of the first Layer 1 blockchains to fully support x402 payment primitives. The project has quickly gained popularity in the “AI × Payment” narrative and significantly raised market expectations. Recently, KITE has launched on Avalanche, achieving seamless cross-chain bridging from BSC and Ethereum to AVAX, while also integrating with Pieverse to create the first multi-protocol agency payment and cross-chain identity authentication channel, further solidifying its core position as x402 native infrastructure. The combination of technological breakthroughs and cross-chain ecosystem expansion has led to a positive market outlook on KITE's long-term value in the AI agency economy, driving its price increase and becoming the main driving force behind this round of growth.

Alpha Interpretation

Ethereum spot ETF saw a net outflow last week, reaching a historical third-highest of 729 million USD.

Last week (November 10-14), the Ethereum spot ETF experienced a significant outflow of funds, with a total net outflow of $729 million, marking the third highest level in history. According to SoSoValue data, all nine major ETFs tracking Ethereum recorded net outflows, with BlackRock's ETHA seeing the most notable outflow of $421 million, while the cumulative historical net inflow remains at $13.45 billion; followed by Grayscale's ETH, with a weekly net outflow of $135 million and a total historical net inflow of approximately $1.34 billion.

This round of capital outflow shows that investors are taking a cautious attitude towards the Ethereum spot market in the short term. Although the historical cumulative inflow remains strong, the market tends to temporarily reduce positions or take back some profits against the backdrop of increased volatility or macro uncertainty. The short-term changes in ETF fund flows may exert some pressure on Ethereum's spot price, but in the long run, continuous institutional investment and cumulative net inflow still provide stable support for the demand for Ethereum assets.

ZEC contract positions break through 1.5 billion dollars, with a significant increase in trading activity on privacy networks.

The privacy network Zcash (ZEC) has seen a significant increase in on-chain activity recently, with the number of mainnet transactions reaching 44,505 in the last 24 hours, and peaking at 73,862 on November 13. This is a noticeable increase compared to an average of about 10,000 transactions per day in October, and around 3,000 transactions before the price surge at the beginning of October. The transaction activity of ZEC has clearly increased. In the last 24 hours, the mainnet transaction volume of ZEC was approximately 1,679,199 ZEC, equivalent to about 1.17 billion USD. At the same time, the total ZEC contract positions across the network continue to set records. According to Coinglass data, the total ZEC contract positions have increased to 2,097,100 ZEC, with a market value exceeding 1.5 billion USD, reaching an all-time high, with a growth rate of 21.49% in the past 24 hours.

The number of transactions on the ZEC mainnet and the contract positions have both reached historical highs, indicating a significant increase in the market's attention to privacy network assets. The continuous growth in on-chain activity and the expansion of contract positions suggest that traders are actively positioning themselves in ZEC while simultaneously boosting market liquidity and price elasticity. Privacy assets are gradually becoming a new emerging hotspot of interest for investors in the current macro and crypto market volatility environment, and this trend may provide support for ZEC's medium to long-term price and ecological development.

Japanese regulators plan to reclassify cryptocurrencies such as BTC and ETH as financial products, with the tax rate possibly reduced to 20%.

The Financial Services Agency (FSA) of Japan plans to reclassify 105 types of encryption assets, including Bitcoin and Ethereum, as financial products and include them in the regulatory framework of the Financial Instruments and Exchange Act. Currently, Japanese residents must declare cryptocurrency gains as “miscellaneous income,” with a maximum tax rate of up to 55%. If the proposal is approved, the trading gains from these encryption assets will be taxed at a capital gains tax rate of 20%, consistent with stock trading. The relevant proposal is expected to be included in the budget plan for early 2026.

This move marks a significant adjustment in Japan's regulation and taxation of encryption, which will substantially reduce the trading tax burden while clarifying regulatory identities, helping to enhance market transparency and compliance. The decrease in capital gains tax rates means that trading costs for investors in the Japanese market will be lower, potentially attracting more individual and institutional investors into the market, thus boosting the activity and liquidity of crypto asset trading. In addition, a clear positioning of financial products also helps crypto assets gain wider recognition within the traditional financial system, further promoting their long-term development. <br> Reference:

• Gate, https://www.gate.com/trade/BTC_USDT
• Farside Investors, https://farside.co.uk/btc/
• Gate, https://www.gate.com/trade/ETH_USDT
• Farside Investors, https://farside.co.uk/eth/
• Gate, https://www.gate.com/crypto-market-data
• Investing, https://investing.com/indices/usa-indices
• Investing, https://investing.com/currencies/xau-usd
• CoinGecko, https://www.coingecko.com/categories
• SoSoValue, https://sosovalue.com/assets/etf/Total_Crypto_ETH_ETF_Fund_Flow?page=usETH
• BitinfoCharts, https://bitinfocharts.com/comparison/zcash-transactions.html#3m
• Coinglass, https://www.coinglass.com/zh/BitcoinOpenInterest
• DLNews, [https://www.dlnews.com/articles/regulation/japanese-crypto-tax-relief-in-sight-as-regulator-set-to-classify-bitcoin-as-financial-product/]

<br> (https://www.dlnews.com/articles/regulation/japanese-crypto-tax-relief-in-sight-as-regulator-set-to-classify-bitcoin-as-financial-product/) Gate Institute is a comprehensive blockchain and encryption research platform that provides readers with in-depth content, including technical analysis, hot insights, market reviews, industry research, trend forecasts, and macroeconomic policy analysis.

Disclaimer Investing in the crypto market involves high risks. Users are advised to conduct independent research and fully understand the nature of the assets and products being purchased before making any investment decisions. Gate does not accept any liability for losses or damages arising from such investment decisions.