Lawmakers in Brazil's Chamber of Deputies have reintroduced a bold proposal to create a Strategic Sovereign Bitcoin Reserve, known as RESBit. The updated bill outlines plans for the government to purchase up to 1 million Bitcoin over the next five years. If approved, the move would position Brazil among the largest state holders of Bitcoin globally. The proposal will now move to committee review for further discussion and evaluation.
In a separate major development, Grayscale Investments has submitted an S-1 filing to the U.S. Securities and Exchange Commission to launch a spot AAVE ETF. This marks a significant step toward bringing decentralized finance into traditional markets. AAVE powers one of the largest DeFi lending platforms, and Bitwise Asset Management has also filed for a similar product. The move signals that the ETF race is expanding beyond Bitcoin and Ethereum.
Meanwhile, market analysis reveals a complex picture for Bitcoin. Despite cooling inflation data, with headline CPI at 2.4% and core at 2.5%, U.S. spot demand for Bitcoin remains weak. The Coinbase Premium Index has stayed negative for months, indicating U.S. participants are not leading price action. Spot Bitcoin ETF flows have also turned inconsistent, with net outflows reaching $410 million by February 13th, extending a two-day total near $686 million. This hesitation from institutional investors, coupled with aggressive sell-side order flow, has kept Bitcoin's recovery in a validation phase rather than a confirmed uptrend.
In the memecoin sector, the total market capitalization has fallen about 34% over the past month. On-chain analytics firm Santiment notes that extreme negative sentiment, where many traders view the sector as "permanently dead," has historically appeared near market bottoms.
