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  • Trump, Regulators Push for Perpetual Futures in US

    Trump, Regulators Push for Perpetual Futures in US

    Perpetual Futures Expand Beyond Crypto into Mainstream U.S. Markets

    Perpetual futures, the financial instruments that fueled the cryptocurrency market’s ascent to a trillion-dollar valuation, are now poised to enter the mainstream U.S. financial system, targeting oil, gold, and equities. A regulatory push, spearheaded by President Donald Trump and the Commodity Futures Trading Commission (CFTC), aims to integrate these never-expiring derivatives contracts into the broader financial landscape.

    Unlike traditional futures contracts, which are bound by a specific expiration date for settlement, perpetual futures eliminate the calendar entirely. These contracts function as an open-ended bet on an asset’s price, remaining active until a trader chooses to close their position. Instead of expiration dates, a “funding rate” mechanism is employed to keep the contract’s price aligned with the underlying asset’s spot market price. This system involves periodic payments between traders who are long and those who are short, creating an economic incentive for the contract price to remain close to the real-time market value.

    Originating in cryptocurrency markets, perpetual futures gained significant traction due to their ability to offer leveraged exposure without the recurring administrative burden of rolling over contracts. Offshore platforms, such as Hyperliquid, have reported annual trading volumes in the tens of trillions of dollars solely from these perpetual contracts.

    The CFTC’s approval of Kalshi’s Bitcoin perpetual futures contract, designated BTCPERP, on May 29, 2026, marked a pivotal regulatory moment. By classifying BTCPERP as a futures contract rather than a swap, the CFTC established a legal precedent for introducing perpetuals into regulated U.S. markets.

    The agency’s initiative extends beyond cryptocurrencies. The CFTC issued a policy statement mandating that perpetual futures referencing precious metals, oil, energy commodities, equities, and other traditional financial instruments will undergo individual reviews under Regulation 40.3. This approach ensures each new contract is evaluated on a case-by-case basis, rather than receiving a blanket approval or denial.

    Kalshi has moved swiftly to capitalize on this regulatory shift. On July 21, 2026, the platform, which began as a prediction market before expanding into derivatives, filed applications for perpetual futures contracts on gold, silver, and platinum. By September 2026, perpetual contracts for gold and silver were operational, offering round-the-clock trading five days a week.

    The CFTC also initiated a public comment period from June through August 2026 regarding the potential for 24/7 trading in energy commodities.

    President Trump has actively supported these regulatory developments. At a White House event in August 2026, he lauded the regulatory efforts and specifically encouraged offshore platforms like Hyperliquid to comply with U.S. regulations, underscoring an ambition to position the United States as a leading global hub for derivatives trading.

    However, this expansion is not without its critics. CME Group, a major player in traditional futures trading based in Chicago, filed a lawsuit against the CFTC in June 2026. Their central contention is that perpetual futures should be classified as swaps, not futures contracts.

    This distinction carries significant regulatory weight. Swaps are subject to different, generally more stringent, regulatory requirements than futures, including variations in margin rules, reporting obligations, and oversight structures. If CME’s legal challenge proves successful, it could lead to perpetual contracts facing a regulatory framework that significantly increases their cost and complexity to offer.

    CME Group’s opposition is also driven by competitive concerns. The exchange’s revenue model is largely based on traditional futures contracts with expiration dates. The continuous trading of perpetual contracts presents a direct challenge to this established business model. The ability for traders to hold gold perpetuals indefinitely without the need for contract rollovers could diminish the appeal of standard monthly gold futures.

    The challenges posed by geopolitical tensions, such as those surrounding Iran in 2026, highlighted the risks investors face from overnight market movements when trading is restricted. Perpetual contracts offer a solution by enabling continuous trading, allowing investors to hedge against such risks.

    Perpetual futures are inherently high-leverage instruments. In crypto markets, leverage ratios of 10x, 50x, or even higher are common. Extending this level of leverage to retail investors trading oil or equities raises significant concerns regarding investor protection. The CFTC’s case-by-case review process under Regulation 40.3 appears to be designed to address these potential risks.

  • Bitcoin ETFs Net $2B Amid $87K Price Rejection

    Bitcoin ETFs Net $2B Amid $87K Price Rejection

    US spot Bitcoin ETFs experienced a significant surge in institutional investment over the past week, attracting approximately $2 billion in net inflows. This marks the most robust institutional buying activity seen since late 2025. However, the rally in Bitcoin’s price proved short-lived, with the cryptocurrency briefly touching $87,397 before facing rejection and falling back below the $84,000 mark.

    Record Inflows Amidst Price Volatility

    The week’s trading saw a notable spike on September 21, when spot Bitcoin ETFs recorded a single-day net inflow of around $999 million. This figure represents the largest one-day influx since October 2025, a period when Bitcoin’s market momentum was considerably different.

    The strong buying trend continued in the subsequent days. September 22 saw an additional $715 million enter the ETFs, followed by $347 million on September 23. These three consecutive days of substantial accumulation collectively pushed the week’s total inflows past the $2 billion threshold.

    Key Players Drive Inflows

    An examination of the record-breaking September 21 session highlights the dominant players in the market. BlackRock’s IBIT fund led the charge, absorbing $381 million, followed by ARK 21Shares’ ARKB with $289 million, and Fidelity’s FBTC with $239 million. These three products accounted for the vast majority of the day’s inflows, underscoring the concentration of the ETF market among a few major issuers.

    Shifting Institutional Sentiment

    Since August 19, cumulative net inflows into Bitcoin ETFs have reached approximately $4.6 billion. More significantly, this sustained buying pressure has propelled year-to-date ETF flows into positive territory, standing at roughly +$320 million. This represents a considerable turnaround from an earlier period this year characterized by significant outflows.

    Bitcoin’s Price Action and Resistance

    Bitcoin’s price briefly breached the $87,000 level for the first time since January, reaching an intraday high of $87,397. However, the cryptocurrency quickly retreated below $84,000, establishing the $87,000 mark as a significant resistance level.

    The recent rally was partly propelled by short liquidations, a common market dynamic where rising prices compel bearish traders to close their positions, thereby accelerating the upward price movement. Conversely, the subsequent price reversal triggered long liquidations. Analysts are closely monitoring support levels between $82,000 and $85,000 to gauge whether the current pullback represents a healthy consolidation or a more concerning trend.

    Implications for Institutional Adoption

    The shift in year-to-date ETF flows from net outflows to positive territory suggests a genuine change in institutional sentiment towards Bitcoin. Earlier in 2026, spot Bitcoin ETFs experienced substantial capital outflows amid macroeconomic uncertainty and a prolonged price downturn that tested investor conviction. The cumulative inflows since mid-August alone now total $4.6 billion.

    The dominance of BlackRock, Fidelity, and ARK 21Shares on the inflow leaderboard is also noteworthy. When a single fund like IBIT absorbs $381 million in one session, it reflects the type of institutional infrastructure utilized by pension funds, endowments, and registered investment advisors.

    A divergence appears to be emerging between ETF demand and Bitcoin’s price action. Theoretically, $2 billion in weekly buying should exert considerable upward pressure on the price. The fact that Bitcoin could not sustain the $87,000 level despite this accumulation suggests that sellers are equally active at these price points. The critical question for the coming weeks will be whether this pace of inflows can be maintained, or if the support zone between $82,000 and $85,000 will be tested imminently.

  • Mid-Tier Bitcoin Holders Accumulate 113,950 BTC Amid Price Rally

    Mid-Tier Bitcoin Holders Accumulate 113,950 BTC Amid Price Rally

    Mid-Sized Bitcoin Wallets Accumulate Heavily as Price Nears Key Resistance

    Wallets holding between 100 and 1,000 Bitcoin have significantly increased their holdings, adding 113,950 BTC since July 15. This accumulation has boosted their combined reserves by 2.22% to 5.24 million BTC, according to data from Santiment. This buying spree coincides with Bitcoin’s recent brief surge to $87,000 earlier this week, before it pulled back and stabilized around $84,000.

    The central question for market observers is whether this sustained demand is building a solid foundation for a further price breakout, or if it’s merely a temporary bounce driven by short covering that could falter as leveraged positions unwind.

    Not all analysts are convinced that the recent price action reflects a genuine resurgence in risk appetite. Bernardo Brites, co-founder of Trace Finance, suggests that the speed of Bitcoin’s recovery was partly fueled by a short squeeze. He emphasizes that the more critical question is the origin of this new capital.

    “I wouldn’t interpret this as a broad return of risk appetite,” Brites stated. “Bitcoin rallying through a rate hike, $100 oil, and elevated yields suggests some investors are treating it as a hedge against inflation, fiscal and geopolitical risk rather than as a bet on easy money.”

    This perspective is crucial for interpreting the current resistance levels. It suggests that the market may be viewing Bitcoin as a macro hedge rather than a purely technical setup.

    Santiment has been tracking this cohort of 100-to-1,000 BTC wallets for five years, and their activity has historically correlated closely with market trends. Periods of substantial accumulation by these wallets have frequently preceded or coincided with significant price movements. The current data indicates that this group continued to buy throughout the recent recovery, suggesting that the rally is not solely driven by retail investors.

    Technical Outlook and Key Price Levels

    From a technical standpoint, Bitcoin has reclaimed its 365-day moving average, which is currently situated around $80,500. This is a significant level, as Bitcoin last broke above it in March 2023, a move that preceded a substantial rally. Additionally, the cryptocurrency has surpassed the $76,000-$81,000 supply band, which had previously capped price action for several weeks.

    The $88,000-$90,000 price range is particularly noteworthy due to the distribution of Bitcoin supply, rather than being a psychological round number. A significant concentration of Bitcoin in this area suggests that sellers are likely to emerge as the price approaches it, making the $90,000 mark the next critical test for the market.

    This dual perspective—macro hedge versus technical setup—provides traders with a framework for anticipating future price movements. A sustained inflow of capital into Bitcoin ETFs, coupled with renewed growth in stablecoin supply, would likely strengthen the current rally as it confronts resistance. Conversely, a slowdown in either of these factors, especially a decline in ETF demand while Bitcoin remains below $88,000, could leave the rally vulnerable to giving back gains as leveraged positions are liquidated.

    Ki Young Ju, founder of CryptoQuant, has posited that the current market cycle is more likely to yield a 3-to-5x rally, rather than a repeat of the extreme 10x surges seen in previous cycles. He attributes this to a maturing market and increased institutional participation, which tend to temper excessive volatility.

    While this view does not predict Bitcoin’s exact trajectory beyond $90,000, it does adjust expectations for what constitutes a strong outcome in this cycle. This distinction is important to consider as the market navigates the current resistance test and the broader structural recovery unfolds.

  • BlackRock: AI Stablecoins to Boost Ethereum Demand

    BlackRock: AI Stablecoins to Boost Ethereum Demand

    Ethereum Trades Sideways as BlackRock Eyes AI-Driven Stablecoin Payments

    Ethereum is currently trading at $2,695, marking a 2.6% decrease over the past 24 hours. This pullback follows a significant 10.3% gain over the preceding seven days, leaving the cryptocurrency in a volatile short-term trading range after its recent rally.

    BlackRock’s AI-Powered Commerce Vision

    A more significant narrative is emerging around the concept of machines transacting autonomously without human intervention. BlackRock’s latest research posits that stablecoins could become the primary settlement mechanism for “agentic commerce”—a future where artificial intelligence systems engage in transactions independently. The firm has identified Ethereum and Circle’s Arc as potential platforms for this burgeoning field.

    This represents a notable shift in perspective, with a major asset management firm now considering AI-to-AI payments as a viable investment thesis rather than a mere novelty. Despite a recent dip, Ethereum’s price performance remains robust, with the token still up 8.3% over the last 14 days and 7.1% over the past 30 days.

    Ethereum’s market capitalization stands at approximately $329 billion, with a 24-hour trading volume of $16.71 billion. This context suggests that the AI-payment thesis is developing within a market where ETH has demonstrated increasing momentum in recent weeks, even amidst ongoing short-term price fluctuations.

    Technical Outlook for Ethereum

    Ethereum’s current technical structure appears to be consolidating after its recent surge, rather than indicating a definitive trend reversal. The $2,542–$2,550 zone, which aligns with the 50-week moving average, remains a critical support level. Holding this area is key to maintaining the broader positive outlook.

    On the upside, $2,672 is the immediate level to monitor, having been breached during the latest price movement. A sustained break above this point could draw attention to $2,805, identified by recent analysis as the next significant breakout level.

    Should buyers successfully maintain control above $2,805, further targets are anticipated around $2,950–$3,000, followed by the $3,150–$3,250 region. Such a move would reignite discussions about whether current momentum and institutional inflows can sustain another upward trajectory. Conversely, a decline below the $2,542–$2,550 support zone would weaken the current structure, bringing $2,533 into focus, with further support expected around $2,450.

    While ETH holders who participated in the recent rally have cause for optimism, the scale of potential gains needs to be contextualized. A move from the current $2,695 to $3,000 represents an approximately 11% increase. While solid, this is not a transformative gain, reflecting the reality of investing in an asset with a market capitalization already in the hundreds of billions.

    The Road Ahead for AI Payments

    The extent to which AI-driven payment volume will translate into actual fee revenue for Ethereum remains an open question. This will be crucial to track through developments in stablecoin payment infrastructure, rather than assuming it is already factored into current valuations. This gap between the compelling narrative and immediate upside potential is precisely what is attracting interest to early-stage infrastructure projects.

    LiquidChain Aims to Unify Liquidity

    LiquidChain ($LIQUID), a Layer 3 project, is developing a unified execution environment designed to integrate liquidity from Bitcoin, Ethereum, and Solana. This initiative aims to allow developers to deploy applications once and access all three ecosystems, thereby avoiding fragmentation across different blockchains.

    The project’s presale is priced at $0.014958, and it has so far raised $970,000. Key features include Single-Step Execution and Verifiable Settlement, intended to streamline cross-chain interactions within a single, deploy-once architecture. Investors are advised to conduct their own research into LiquidChain before significant capital inflows potentially impact its price.

  • SEC Greenlights AMMs for Tokenized Stocks; XRPL Poised to Lead

    SEC Greenlights AMMs for Tokenized Stocks; XRPL Poised to Lead

    SEC Decision Puts XRP Ledger’s AMM Tech in Spotlight

    The U.S. Securities and Exchange Commission (SEC) has opened a new regulatory pathway for tokenized stocks to trade via automated market makers (AMMs), a move that has placed the XRP Ledger (XRPL) back in the spotlight. The SEC’s September 17 decision grants a temporary exemption to certain blockchain-based platforms, allowing them to facilitate the trading of tokenized U.S. stocks through permissioned AMM liquidity pools.

    While the SEC’s order does not specifically mention XRP, Ripple, or the XRP Ledger, it establishes a framework for “Tokenized Securities Venues.” This framework permits eligible platforms to operate AMM-based markets under defined conditions.

    Potential Bullish Implications for XRP

    The decision could be seen as bullish for XRP due to the XRP Ledger’s existing native AMM functionality. The XRPL’s AMM amendment went live on its mainnet in March 2024, integrating built-in liquidity pools alongside its established decentralized exchange (DEX). This pre-existing infrastructure makes the SEC’s recent decision particularly significant for the XRP ecosystem.

    The SEC’s “Innovation Exemption” offers temporary relief from specific securities regulations for these Tokenized Securities Venues. These venues can leverage AMMs and liquidity pools to connect buyers and sellers of tokenized National Market System (NMS) stocks.

    Conditions and Requirements for Tokenized Trading

    The exemption is conditional, not a blanket approval for tokenized equities across all crypto markets. The SEC has stipulated that participating venues must operate permissioned systems and adhere to stringent investor protection requirements. These include ensuring that tokenized stocks grant holders the same rights and privileges as traditional shares, such as dividend and voting rights.

    Furthermore, the framework allows the original stock issuer to object if a third party tokenizes its shares. Trading of tokenized stocks must also cease if trading in the underlying traditional stock is halted on its primary listing exchange.

    For the broader crypto market, a key takeaway is the SEC’s explicit acknowledgment of AMM liquidity pools as a component of an on-chain securities trading structure. The SEC’s order also provides conditional relief for liquidity providers supplying tokenized stocks to these pools. These exemptions are set to last for five years, allowing regulators to monitor market development.

    XRP Ledger’s Integrated AMM

    This regulatory development has spurred renewed interest in blockchain networks that already possess native AMM infrastructure. The XRP Ledger’s AMM functionality, introduced via the XLS-30 amendment, became active on its mainnet on March 22, 2024. Unlike a separate application, the XRPL’s AMM is integrated directly into its DEX. This allows users to create liquidity pools for asset pairs, contribute liquidity, and receive LP tokens representing their stake.

    The XRPL’s DEX is designed to combine order-book liquidity with AMM liquidity for trade execution, enabling transactions to utilize whichever route offers the most favorable exchange rate. This native design is gaining relevance as regulators begin to address on-chain securities markets.

    Infrastructure Over Immediate Endorsement

    However, it is premature to interpret the SEC’s decision as an approval of tokenized stocks on the XRP Ledger itself. The Innovation Exemption is technology-neutral and sets requirements for eligible Tokenized Securities Venues, rather than endorsing specific blockchains.

    For XRP holders, the significance lies more in the potential for infrastructure development than an immediate new use case for XRP. If regulated tokenized equity markets eventually expand onto public blockchains, networks with existing AMM and DEX infrastructure, like XRPL, could possess a foundational advantage. The SEC has now provided a regulatory framework that explicitly considers AMM-based trading.

    The crucial next step is whether financial firms will opt for public networks such as the XRP Ledger for these markets. The SEC has opened the door, but the industry must now decide whether to walk through it.

    Ultimately, the current XRP news centers on a regulatory development that could enhance the relevance of XRPL’s AMM architecture for tokenized assets, rather than an explicit SEC endorsement of XRP.

  • UK Banks Pioneer Interbank Tokenized Deposit Transactions

    UK Banks Pioneer Interbank Tokenized Deposit Transactions

    UK Banks Pioneer Blockchain-Based Tokenized Deposits in Landmark Trial

    London, UK – Major British banks, including Lloyds, NatWest, Barclays, and HSBC, have successfully conducted the world’s first interbank transactions using tokenized bank deposits on blockchain technology. The landmark trials, part of the Great British Tokenised Deposit (GBTD) project, signal a significant step towards faster, more programmable financial settlements within the UK’s banking sector.

    Real-World Tests Showcase Programmable Payments

    The GBTD project, announced by UK Finance, demonstrated the ability of tokenized deposits from different banks to move seamlessly across separate blockchain systems and automate payment settlements. This innovation aims to deliver the benefits of digital currency while maintaining the security and protections associated with traditional bank deposits.

    Lloyds Banking Group, NatWest, and Barclays participated in live remortgage transactions. In these tests, funds were held securely on the blockchain until the property transfer was confirmed. Upon verification, the money was automatically disbursed between the banks.

    Concurrently, HSBC led a separate trial simulating an online marketplace purchase. This test utilized programmable deposits to hold the buyer’s funds, which were then automatically released to the seller once the delivery of goods was confirmed by the system. The technology powering these transactions was provided by Quant Network.

    Supporting Regulated Digital Currency

    The successful trials align with the Bank of England’s objective to ensure digital money remains within the purview of regulated financial institutions. Unlike privately issued stablecoins, tokenized deposits represent existing bank deposits converted into digital tokens on a blockchain. This approach leverages the security of bank money while incorporating blockchain’s efficiency and programmability, enabling faster payments and the implementation of automated rules for fund transfers.

    Bank of England Governor Andrew Bailey has previously voiced concerns regarding the risks associated with privately issued stablecoins.

    Future Expansion to Digital Bonds

    UK Finance has indicated that banks are already progressing to the next phase of development, with plans to issue three tokenized digital bonds in early 2027. These bonds are expected to utilize the same tokenized deposit system for trading, clearing, and settlement, offering a platform for banks to explore blockchain applications beyond basic payments and into larger financial transactions.

    Industry analysts anticipate substantial growth in tokenized financial assets. The Citi Institute, for instance, forecasts that the market for tokenized financial assets could expand to between $5.5 trillion and $8.2 trillion by 2030.

  • XRP Price Outlook: October Weakness, But 3 Metrics Signal Bullish Turn

    XRP Price Outlook: October Weakness, But 3 Metrics Signal Bullish Turn

    XRP Pulls Back from Highs, But Key Metrics Signal Underlying Strength

    XRP is currently trading at $1.50, marking a 7.6% decline over the past 24 hours after reaching a high of $1.63 during that period. Despite this pullback and some bearish price predictions, XRP has still managed to gain 15.1% over the last seven days, demonstrating a significant recovery from its recent lows. The cryptocurrency’s market capitalization now stands at approximately $94.1 billion, having briefly approached the $100 billion mark during its recent rally.

    Trader Sentiment and Institutional Interest

    Binance’s top traders are maintaining substantial long positions even as XRP retested support levels below the $1.56–$1.60 zone, which it had previously broken through earlier in the week. Analysts have noted a reported $2.2 billion institutional buy-up associated with the move towards $1.48, although specific transaction details remain scarce. During the surge towards $1.60 on September 23, indicators such as whale accumulation, growth in new wallet addresses, and interest in XRP-based Exchange Traded Funds (ETFs) all showed strengthening trends.

    Broader Market Headwinds

    The wider market sentiment is not providing much support. Treasury yields have reached their highest point since 2007 this week, driven by inflation concerns. This has led to declines in major stock indices like the Dow, S&P 500, and Nasdaq, signaling a risk-off environment that can negatively impact cryptocurrencies, in addition to token-specific factors.

    Technical Outlook for XRP

    XRP’s current chart structure suggests a pullback following a breakout attempt, rather than a breakdown. Immediate support is identified in the $1.50–$1.53 range, with more significant floors at $1.44–$1.45 and $1.35–$1.40 should selling pressure intensify. The 20-day Exponential Moving Average (EMA), currently hovering around $1.4171, represents a critical level that bulls must defend to maintain the broader upward trend.

    Forward-Looking Indicators

    Data from the Relative Strength Index (RSI) and historical rebound patterns indicate that the current pullback might be less severe than what October seasonality might suggest. Further analysis of open interest, funding rates, and ETF flows could provide additional context on whether leverage is positioned for a short squeeze or a liquidation cascade.

    Strategic Positioning in October

    Holding XRP through the anticipated volatility of October is considered a defensible strategy, as three key bullish metrics—whale flows, futures positioning, and ETF interest—suggest that dips are likely to be met with buying interest. However, with a market capitalization exceeding $90 billion, XRP is unlikely to deliver the tenfold returns seen from earlier stages of its growth. Such significant upside potential is now more commonly found in presale-stage tokens that are still establishing their market value.

    Emerging Opportunities in the Crypto Space

    For investors seeking potentially higher returns, emerging opportunities exist in the presale market. Maxi Doge ($MAXI), a meme token designed around leverage trading culture, has garnered attention. The token features a mascot embodying “1000x leverage” energy, holder-exclusive trading competitions with leaderboard rewards, and a Maxi Fund treasury to support liquidity and partnerships. The presale has already raised $4.8 million, with the token currently priced at $0.000284. Dynamic APY staking is also available for early holders, aligning with the project’s ethos of capitalizing on market movements.

  • Bitcoin Whales Buy the Dip, Double Down on Rally

    Bitcoin Whales Buy the Dip, Double Down on Rally

    Bitcoin Briefly Touched $87,000, Whales Accumulate Amid Shifting Market Dynamics

    Earlier this week, Bitcoin briefly surged to $87,000 for the first time since January before pulling back and stabilizing around $84,000. Despite the short-term volatility, a key segment of investors, often referred to as “smart money,” has continued to bolster their positions.

    Whale Accumulation Signals Confidence

    Data from Santiment indicates that Bitcoin’s whale wallets are actively increasing their holdings. Wallets containing between 100 and 1,000 BTC have collectively acquired an additional 113,950 units since July 15. This has pushed their total holdings up by 2.22% to approximately 5.24 million BTC. Santiment, which has monitored this specific wallet group for five years, notes that their activity often correlates closely with broader cryptocurrency market movements. Historically, periods of significant accumulation by these large holders have preceded or coincided with substantial Bitcoin price increases.

    This trend has persisted as the cryptocurrency has experienced a sharp ascent since mid-August. The data suggests that not only have large holders continued to purchase during the recent rally, but the surge is also not solely driven by retail traders.

    Technical Indicators Point to a Bullish Trend

    The recovery and subsequent rise in market optimism follow Bitcoin’s successful re-establishment above its 365-day moving average, which was hovering around $80,500. The last time Bitcoin achieved a similar technical feat was in March 2023, a period that subsequently saw a significant price appreciation. This latest breakout could signal a positive shift in the longer-term trend.

    Bitcoin also navigated through a substantial supply zone situated between $76,000 and $81,000. The next significant resistance level to monitor is between $88,000 and $90,000, where a considerable amount of Bitcoin is concentrated, presenting the next major hurdle for the ongoing rally.

    Expectations for the Current Cycle

    However, the current market cycle may not replicate the extreme price swings that Bitcoin was once known for. Ki Young Ju, founder of CryptoQuant, anticipates a more moderate rally of 3-to-5 times the current price, rather than another tenfold surge. He foresees a potentially milder bear market ahead, attributing this to the growing market maturity and increasing institutional interest, which he believes are dampening extreme price volatility.

    Short Squeeze and ETF Inflows Drive Momentum

    Not all market observers view the recent price action as a widespread return of risk appetite. Bernardo Brites, co-founder of Trace Finance, suggested to CryptoPotato that the speed of the recovery was partly fueled by a short squeeze. He raised the question of the origin of the new capital entering the market.

    Notably, U.S. spot Bitcoin ETF inflows attracted nearly $1 billion on Monday alone. Smaller inflows were also recorded in the subsequent two trading sessions. This suggests that a significant portion of the fresh capital is entering the market through traditional financial channels rather than directly via cryptocurrency platforms.

    Brites commented, “I wouldn’t read this as a broad return of risk appetite. Bitcoin rallying through a rate hike, $100 oil, and elevated yields suggests some investors are treating it as a hedge against inflation, fiscal and geopolitical risk rather than as a bet on easy money.”

    For Brites, the crucial factor moving forward is the sustained inflow into ETFs. He anticipates a stronger foundation for the rally if demand remains robust and stablecoin supply begins to increase again.

    “If ETFs remain the only engine, the move is vulnerable, and Bitcoin could give back a good part of these gains as positioning normalizes,” he added.

  • 21Shares Lists Europe’s First Zcash ETP on Euronext Exchanges

    21Shares Lists Europe’s First Zcash ETP on Euronext Exchanges

    21Shares has launched Europe’s first exchange-traded product (ETP) for Zcash, listing on Euronext Paris and Euronext Amsterdam on September 22. The ETP, trading under the ticker ZCASH, offers investors regulated exposure to the privacy-focused cryptocurrency.

    The fund is physically backed, meaning it holds the underlying Zcash tokens, with BitGo serving as the institutional custodian. On its launch day, the Zcash ETP had 5,000 securities outstanding, a net asset value of $20.04 per unit, and approximately $100,000 in assets under management. The ETP charges an annual management fee of 2.5%.

    This new product aims to simplify access to Zcash for European investors by removing the operational complexities associated with direct cryptocurrency ownership, such as setting up exchange accounts or managing private keys. The ETP provides exposure to Zcash’s unique features, including its optional shielded transactions that allow users to obscure sender, receiver, and transaction amounts, a capability not present in more transparent cryptocurrencies like Bitcoin and Ether.

    Zcash, which forks Bitcoin’s code, maintains a 21 million coin cap, proof-of-work mining, and a halving schedule. Coinholders recently voted with 98.9% in favor of retaining the Bitcoin-style halving model. This structure is designed to keep inflation in check.

    The 2.5% annual management fee for the Zcash ETP is higher than those typically seen for Bitcoin or Ethereum ETPs. According to interpretations of the market, this premium is attributed to the less common nature of Zcash custody for institutional custodians, suggesting 21Shares is betting on regulated demand for privacy coin exposure justifying the increased cost.

    Recent market activity shows Zcash has experienced significant gains, with its price (ZEC) reportedly gaining over 2,700% this year. On Wednesday, ZEC pushed past $1,600, reaching an intraday high near $1,680 before settling around $1,522. The cryptocurrency’s market capitalization is reported to be near $27.5 billion.

    In related developments, Grayscale converted its Zcash Trust into the ZCSH ETF on NYSE Arca in August. Grayscale’s ZCSH has attracted over $233 million and holds close to $890 million in assets. A 3-for-1 share split for Grayscale’s ZCSH is scheduled for September 30.

    The launch of the Zcash ETP by 21Shares may indicate increased investor interest in privacy coins, a trend also reflected in the performance of ZEC and the actions of asset managers like Grayscale. The ETP offers a regulated avenue for European brokerage investors to gain exposure to Zcash’s distinct features and market dynamics.

    Why This Matters

    The materials describe a narrow update: 21Shares launched a physically backed Zcash ETP on Euronext Paris and Euronext Amsterdam, charging a 2. The ETP removes the operational headache of buying Zcash directly for investors, such as opening crypto exchange accounts or managing private keys.

    Broader Context

    Source materials place the factual news in this context: Zcash is a privacy coin that allows its users to shield balances and transfers, unlike more traditional crypto assets like Bitcoin and Ethereum, which are transparent by default.

  • Bitcoin Price Levels Tested Amidst ETF Inflows and Spot Market Activity

    Bitcoin Price Levels Tested Amidst ETF Inflows and Spot Market Activity

    Bitcoin has surpassed key technical levels, including its True Market Mean of $77,000 and a long-term holder supply cluster between $84,000 and $85,000. Analysis from Glassnode indicates these levels are being tested, with potential for further price movement towards $95,000-$97,000, supported by strengthening inflows into US spot Bitcoin ETFs and increased spot market trading activity. However, the ability of Bitcoin to hold above $84,000 is a key factor for maintaining the path towards the $96,700 resistance zone, and a move back below this level could refocus attention on the $77,000 support level.

    Current Market Position and Driving Factors
    In recent days, Bitcoin has moved above these significant levels. Glassnode analysts have identified the next potential resistance around $96,700. Selling pressure has remained relatively light during this period, and spot trading volumes have seen a substantial increase. This surge in volume, a 121% climb in 24-hour exchange volume since the rally began, is noteworthy as it marks the first significant volume expansion in approximately a year to occur while Bitcoin’s price was rising.

    US spot Bitcoin ETFs have resumed net buying, attracting approximately $1.3 billion over the past five days. This marks a return to positive inflows after a period of outflows, with the latest session recording the largest single-day inflow since early July. The current market movement appears to be driven primarily by spot buying rather than a significant buildup in leverage, as indicated by the minimal increase in perpetual futures open interest over the past 30 days.

    Altcoin Performance and Holder Behavior
    Altcoins have also participated in the market’s upward trend, with about 72.5% of tracked altcoins outperforming Bitcoin over the past week. This broad market participation without a corresponding leverage buildup suggests a potentially healthier market dynamic. From a holder behavior perspective, weekly realized profits remain well below the levels seen near the 2024 and 2025 market tops, indicating that holders are not yet aggressively taking profits.

    Historical Context and Uncertainties
    Furthermore, Bitcoin’s June low remained above its Realized Price. Glassnode noted that if Bitcoin continues to hold above $77,000, this June low could represent the shallowest bear market low observed in the cycles they have examined since 2017. Uncertainties remain regarding Bitcoin’s ability to sustain its position above key levels, with $84,000 serving as a critical threshold for maintaining the upward trajectory towards potential resistance.

    Why This Matters

    The current analysis indicates that Bitcoin has surpassed key price levels including its True Market Mean ($77,000) and a long-term holder supply cluster ($84,000-$85,000). Whether Bitcoin may hold above $84,000 to maintain the path towards the $96,700 resistance zone remains a key point of observation.

    Broader Context

    Analysis places the factual news in this context: Bitcoin has moved above its $77,000 True Market Mean and a major long term holder supply cluster around $84,000 to $85,000.