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  • SEC Proposes Crypto Custody Rule Changes, Potentially Allowing Advisor Self-Custody and State Trust Company Roles

    SEC Proposes Crypto Custody Rule Changes, Potentially Allowing Advisor Self-Custody and State Trust Company Roles

    The U.S. Securities and Exchange Commission (SEC) has proposed new rules that could significantly alter the landscape of cryptocurrency custody for investment advisors and state trust companies. Unveiled on Thursday, the proposal aims to address the long-standing challenge of finding qualified custodians for digital assets, potentially allowing investment advisors to self-custody client crypto assets under specific conditions and permitting state trust companies to serve as custodians.

    According to the SEC, this move is a response to market realities and a step toward providing greater clarity in the evolving digital asset space. SEC Chairman Paul Atkins stated that the crypto asset market has grown substantially, and existing regulations have not kept pace. The proposal, according to the SEC, seeks to balance easing access to digital assets with maintaining necessary safeguards for investors.

    Key to the proposal is the allowance for investment advisors to self-custody client crypto assets if they cannot find a qualified custodian. However, this option comes with strict conditions. Advisors must first suggest that no qualified custodian is available and must re-evaluate this quarterly. If a qualified custodian becomes available, the assets must be transferred promptly. Furthermore, self-custody requires robust private key protection mechanisms, comprehensive cybersecurity measures, and the isolation of each client’s assets. Any transfer of self-custodied crypto assets would necessitate approval from at least two authorized personnel.

    Additionally, the proposal would permit state trust companies to act as cryptocurrency custodians. To do so, these companies must obtain state authorization for crypto custody, establish procedures to prevent asset loss or theft, provide audited financial statements and internal control reports, and ensure client assets are segregated from their own.

    This initiative follows legislative efforts, such as the CLARITY Act, which have stalled in the Senate. The SEC appears to be pursuing regulatory changes through administrative rulemaking. This shift to administrative action is viewed by some in the industry, such as Bitwise, as potentially leading to faster regulatory developments without the limitations of broader legislative frameworks.

    SEC Commissioner Hester Peirce noted the challenges financial advisors have faced due to regulatory uncertainty in custody. The SEC’s proposal attempts to bridge this ‘custody gap,’ shifting the issue from a regulatory hurdle to a market-based challenge.

    However, the proposal is not without uncertainties. The strict conditions for self-custody may suggest costly or burdensome, potentially limiting its practical application to larger institutions. It remains to be seen how many investment advisors will opt for self-custody and how many state trust companies will invest in the necessary infrastructure and compliance. The SEC has opened the proposal for a 60-day public comment period, during which industry participants and the public can provide feedback. The final impact will depend on the SEC’s subsequent enforcement standards and the market’s reaction.

    SEC Commissioner Mark Uyeda acknowledged potential conflicts of interest in advisor self-custody but emphasized that advisors’ fiduciary duties to clients remain fully applicable. The proposal also includes provisions for regulated funds to entrust their crypto assets to investment advisors under specific conditions, provided the fund’s board oversees the arrangement.

    This development occurs alongside other regulatory actions. In recent weeks, the SEC has issued guidance on crypto assets, and the Commodity Futures Trading Commission (CFTC) has submitted its own crypto market regulation proposal to the White House. The SEC’s proposal to relax custody rules is a significant signal for the institutionalization of crypto assets, though its ultimate effectiveness will hinge on market adoption and the clarity of future SEC enforcement.

    Why This Matters

    The materials describe a narrow update: The SEC proposed to relax rules regarding cryptocurrency custody, allowing investment advisors to self-custody client crypto assets when qualified custodians are unavailable and permitting state trust companies to act as custodians. The extent to which investment advisors will be willing to self-custody assets given the strict conditions.

    Broader Context

    Source materials place the factual news in this context: SEC 鬆綁加密託管規則！顧問可自保管，州信託公司也能進場.

  • XRP Outflows Surge Past $320M, Mimicking August Rally

    XRP Outflows Surge Past $320M, Mimicking August Rally

    Exchange Outflows of XRP Surge, Evoking Memories of August Rally

    Data from CryptoQuant reveals a significant surge in daily XRP outflows from exchanges, with transactions of 1 million tokens or more exceeding 320 million. This development is particularly noteworthy, according to analyst Xaif Crypto, as a similar spike in August was followed by a more than 42% increase in XRP’s price.

    Xaif Crypto identified Binance as the primary driver of this recent outflow, with Coinbase, Upbit, Bybit, and Bitget also showing substantial movements. Bitget recently experienced a $387 million breach.

    “The last time we saw a spike like this, in August, XRP rocketed from $1.05 to $1.50,” the trader commented.

    Analyst Amr Taha provided a closer look at Binance’s activity. The exchange’s XRP reserves increased from approximately 2.60 billion to 2.70 billion tokens between September 13 and 27. However, by September 30, these reserves had fallen to 2.647 billion, indicating an outflow of roughly 57 million XRP, or 2.1%, within three days. This outflow represented more than half of the earlier accumulation. Taha suggested that a sustained decline in exchange reserves could lead to fewer tokens available for spot trading, potentially easing selling pressure.

    Leverage Declines Amidst Outflows

    Another CryptoQuant contributor, CryptoOnChain, focused on leverage, noting that it has “reduced faster than price has fallen.” They reported that Binance’s XRP open interest, which represents the value of open futures positions, dropped to $521.5 million on September 29. This was a 15.3% decrease from a six-month high of $616.1 million recorded a week prior.

    During the same period, from September 24 to 29, long liquidations—forced closures of positions betting on higher prices—averaged $3.72 million per day, approximately 2.6 times the six-month daily average. Funding rates also halved, falling from 0.010 to 0.005, although leverage remains above its six-month mean of 0.169. CryptoOnChain posited that traders may have reduced their leveraged long positions before the end of the quarter rather than selling spot XRP.

    “This creates conditions that historically preceded range-bound trading, as positioning is resetting while exchange supply edges higher,” the analyst explained.

    Market Performance and Outlook

    At the time of reporting, XRP was trading near $1.50, having gained approximately 1% over the preceding 24 hours and showing minimal movement on a weekly basis. The fifth-largest cryptocurrency by market capitalization has seen a 16% rally in the last 14 days. However, its annual performance remains subdued, with a decline of over 47% in the past 12 months.

    XRP concluded September with its third consecutive month of gains, adding around 8% to its value. During this period, spot XRP exchange-traded funds saw net inflows of over $121 million, bringing cumulative net inflows to nearly $1.8 billion. These funds have not experienced a down week since early July.

    Looking ahead to October, the month has historically presented challenges for XRP. Only five of the last 13 Octobers have finished in positive territory for the token. The most recent positive October was in 2023, with a 16.5% gain, which was followed by a 16.7% loss in 2024 and a nearly 12% drop last year, following a significant sell-off on October 10.

  • SEC Clears Custody Hurdle for Crypto Advisers

    SEC Clears Custody Hurdle for Crypto Advisers

    SEC Proposes Easing Crypto Custody Rules for Investment Advisers

    The U.S. Securities and Exchange Commission (SEC) has put forth a proposal aimed at simplifying the rules surrounding how investment advisers and funds hold cryptocurrency, potentially removing a significant regulatory obstacle that has hindered some firms from offering digital asset investments to their clients.

    The proposal, unveiled on Thursday, would permit investment advisers to hold clients’ crypto assets directly, under specific conditions, when no eligible third-party custodian is available. It would also broaden the scope of entities that can act as crypto custodians to include state-chartered trust companies.

    “The crypto asset market has grown from a niche curiosity into a multi-trillion-dollar asset class to which investors actively seek exposure. Unfortunately, our rules and regulations have not kept pace,” stated SEC Chair Paul Atkins in a release.

    The initiative addresses a practical challenge in crypto investing: investment advisers often struggle to find qualified custodians for specific digital tokens, thereby limiting the investment options they can present to clients. The Chamber of Digital Commerce has previously voiced concerns regarding the scarcity of qualified crypto custodians. In a May 2025 submission to the SEC, the organization noted that some advisers had either rejected token allocations or requested portfolio companies to hold them until custody solutions became available.

    SEC Commissioner Hester Peirce described the prevailing uncertainty as a regulatory “roller coaster,” remarking that advisers have been “gritting their teeth and holding on for dear life” while awaiting workable custody regulations.

    Under the SEC’s proposed framework, advisers wishing to self-custody client crypto would be required to demonstrate that no approved custodian exists for each specific asset and to re-evaluate this determination on a quarterly basis. Should a custodian become available, the assets would need to be transferred promptly.

    Self-custody would also necessitate robust safeguards for private keys, cybersecurity measures, and the clear segregation of each client’s holdings. Any transfer of self-custodied crypto assets would require approval from at least two authorized individuals.

    SEC Commissioner Mark Uyeda acknowledged that adviser custody presents “an inherent conflict of interest,” emphasizing that advisers’ fiduciary duties would remain in effect when they hold clients’ crypto assets.

    The proposal also suggests allowing regulated funds to maintain crypto assets in self-custody with their investment adviser, provided the adviser adheres to self-custody requirements and the fund’s board of directors oversees the arrangement.

    The use of state-chartered trust companies—financial institutions authorized by a U.S. state to manage assets on behalf of others—would be subject to distinct conditions. These include ensuring the trust company is authorized by the relevant state authority for crypto custody, possesses adequate procedures to protect crypto assets from loss, theft, or misappropriation, and provides audited financial statements and internal control reports. Client holdings must also be kept separate from the company’s own assets.

    The package further proposes modifications to audit, recordkeeping, and disclosure requirements. The SEC will accept public comments on the proposal for 60 days following its publication in the Federal Register.

    This latest proposal is part of a broader effort by the SEC and the Commodity Futures Trading Commission (CFTC) to establish clearer regulatory frameworks for crypto assets within their existing authorities, particularly after the CLARITY Act did not advance in the Senate last month. The CFTC has submitted its own crypto market proposal for White House review, while the SEC has recently opened avenues for trading tokenized stocks.

  • NYDFS and Wyoming Division of Banking Sign MOU to Coordinate Crypto Regulation

    NYDFS and Wyoming Division of Banking Sign MOU to Coordinate Crypto Regulation

    New York and Wyoming have established a framework for cross-state cryptocurrency supervision through a Memorandum of Understanding (MOU) signed on Thursday. The agreement aims to streamline regulatory processes and enhance collaboration between the New York State Department of Financial Services (NYDFS) and the Wyoming Division of Banking, potentially reducing administrative burdens for crypto businesses operating in both states.

    The core of the MOU focuses on creating a coordinated approach to overseeing cryptocurrency companies. This includes mechanisms for sharing information related to license reviews, coordinating examinations, and collaborating on enforcement actions, according to the MOU.

    A key provision introduces an accelerated review process for established, compliant companies. Businesses licensed in one of the two states for three or more years with no enforcement actions may be eligible for expedited review in the other state. As per the Wyoming Division of Banking and NYDFS, the second state regulator commits to making a decision on such applications within six months.

    This initiative addresses the ongoing challenge of a fragmented regulatory landscape for digital assets in the U.S. New York has operated under its BitLicense system since 2015, while Wyoming established its charter system for digital assets, including Special Purpose Depository Institutions (SPDIs), starting in 2018.

    As stated by NYDFS, the collaboration is intended to improve regulatory efficiency and reduce compliance costs for businesses. It also aims to strengthen cross-state enforcement capabilities. This development could potentially set a precedent for other states looking to coordinate their approaches to cryptocurrency regulation.

    However, uncertainties remain regarding the broader impact of such interstate cooperation. It is yet to be seen whether these state-led alliances can effectively fill the regulatory vacuum or if they represent a transitional phase before potential federal legislation is enacted. Federal-level cryptocurrency legislation has seen stalled progress.

    The agreement was signed on Thursday. New York introduced the BitLicense system in 2015, and Wyoming established its digital asset charter system in 2018. In 2023, NYDFS Chairman Michael Brown testified before Congress about the BitLicense system’s role in consumer protection.

    This regulatory cooperation may signal a move towards a more unified, albeit state-led, approach to crypto regulation in the U.S. The potential for similar collaborations between other states could lead to a ‘regional alliance’ model. Nevertheless, the ultimate effectiveness of interstate cooperation in addressing the complexities of cryptocurrency regulation, and its role as a long-term solution, remains to be determined.

    Why This Matters

    The materials describe a narrow update: NYDFS and the Wyoming Division of Banking have established a cross-state cryptocurrency regulatory coordination mechanism through an MOU. Whether interstate cooperation can fill the regulatory vacuum.

    Broader Context

    Source materials place the factual news in this context: US House of Representatives began a legislative marathon on crypto on the 14th, covering stablecoins, regulatory boundaries, and anti-CBDC.

  • Shinhan Bank Pilots Solana Stablecoin for Corporate Remittances

    Shinhan Bank Pilots Solana Stablecoin for Corporate Remittances

    Shinhan Bank Completes Stablecoin Pilot for Corporate Remittances

    Shinhan Bank has successfully concluded a pilot program for stablecoin-based corporate overseas remittances, developed with technical assistance from the Solana Foundation. A key innovation of the project is its seamless integration into existing client workflows, requiring no changes for corporate users. Participants did not need to open cryptocurrency wallets or hold stablecoins, with their banking routines remaining entirely unchanged.

    Proof-of-Concept Completion

    The South Korean financial institution announced the completion of this proof-of-concept on September 30, 2026. Shinhan designed the test to meticulously replicate the actual remittance operations of a major Korean corporation, covering the entire process from counterparty registration to execution and final settlement. Stablecoin-based transfers and settlements were integrated directly into the bank’s current systems.

    Privacy and Network Considerations

    To ensure data privacy, Shinhan conducted the pilot on a private solution operating on the Solana network. The objective was to maintain the confidentiality of sensitive transaction details while still enabling transparent validation of each transaction.

    Evaluating Performance and Viability

    Shinhan stated that the trial allowed for a thorough evaluation of both the technical performance and the operational feasibility of the implemented system.

    Broader Stablecoin Initiatives

    This corporate pilot is not Shinhan Financial’s sole venture into Solana-based projects. Its affiliate, Shinhan Card, has been independently exploring retail stablecoin payments through a separate collaboration with Solana, announced on April 30, 2026. These two initiatives are distinct, with the bank’s focus on corporate treasury operations for international money transfers and Shinhan Card targeting consumer payments.

    Regulatory Landscape

    The initiatives are unfolding against the backdrop of South Korea’s evolving regulatory environment. The country’s Digital Asset Basic Act is currently under development and aims to establish a more structured legal framework for digital assets. Shinhan has indicated that its next step involves assessing the system’s potential for real-world application, ensuring alignment with emerging regulatory guidelines.

    The Invisible Stablecoin Layer

    A significant aspect of the project’s design is the unobtrusive nature of the stablecoin layer. Shinhan is not requiring corporate clients to adopt cryptocurrency; instead, it is investigating whether blockchain infrastructure can operate discreetly beneath the services clients already utilize.

    Path to Commercialization

    With the Digital Asset Basic Act still pending, Shinhan cannot launch a commercial product based solely on this proof-of-concept. The timing of any rollout will be contingent on how lawmakers define the regulations governing stablecoins and the financial institutions that handle them.

    Market Watch Points

    Industry observers are closely monitoring several key developments. Firstly, progress on the Digital Asset Basic Act is crucial, as it will likely determine whether pilot programs like this can transition into viable commercial products. Secondly, market participants will be watching for any timeline Shinhan might publish for a commercial corporate remittance service. Thirdly, the announcement of comparable trials by other Korean lenders will be significant. Finally, the parallel development of both corporate and retail tracks within Shinhan Financial will be noteworthy, given that both Shinhan Bank and Shinhan Card are now actively pursuing separate Solana-based stablecoin initiatives.

  • SEC Proposes Crypto Custody Rules to Reduce Regulatory Ambiguity

    SEC Proposes Crypto Custody Rules to Reduce Regulatory Ambiguity

    The Securities and Exchange Commission (SEC) on Wednesday proposed a new framework aimed at clarifying how registered investment advisers and regulated funds can custody crypto assets. This initiative seeks to replace years of regulatory ambiguity with a clear compliance path, potentially easing barriers for institutional investors interested in digital assets.

    Addressing Regulatory Uncertainty
    The proposal tackles a significant challenge for investment professionals: determining which crypto arrangements satisfy the “qualified custodian” requirements under the Investment Advisers Act of 1940 and the Investment Company Act of 1940. It has long been unclear which crypto arrangements meet these strict safekeeping standards, causing many firms to hesitate in offering digital-asset strategies.

    Key Provisions and Goals
    Key aspects of the proposed framework include allowing for self-custody under specific conditions, permitting state trust companies to serve as custodians for crypto assets, and updating rules for financial-statement audits for advisers and broker-dealer custodial services for funds. The SEC stated that the overarching goal is to widen investor access to crypto strategies by removing obstacles that have kept advisers on the sidelines.

    Context and Next Steps
    SEC Chairman Paul Atkins noted that the agency’s existing rules “have not kept pace” with the evolving crypto asset market, which has grown substantially since Bitcoin’s advent in 2008. The proposed rules are intended to replace “the grey of uncertainty created by custody rules crafted for a bygone era,” according to agency statements. This regulatory effort is part of a broader build-out by the SEC, particularly as legislative efforts like the Clarity Act have stalled.

    It is crucial to note that this proposal is not final. A 60-day public comment period will begin once the proposal is published in the Federal Register. During this time, the agency will gather feedback and may revise the rules before any vote to adopt them.

    This proposal follows other recent SEC actions in the crypto space, including an “innovation exemption” for tokenized stocks and the proposed Regulation Crypto Assets framework for crypto fundraising. SEC staff have also offered clarifications, such as stating that token buybacks do not inherently classify a crypto asset as a security.

    The SEC’s move signals an increasing focus on providing regulatory clarity for the digital asset market, potentially encouraging greater institutional participation by addressing key compliance concerns. However, the specific conditions for self-custody and the requirements for state trust companies are not yet detailed, and the final rules remain subject to change following the public comment period.

    Why This Matters

    The materials describe a narrow update: The SEC proposed a framework to govern how registered investment advisers and regulated funds can custody crypto assets, aiming to provide a clear compliance path and replace regulatory ambiguity. The proposal is not final and can be revised before adoption.

    Broader Context

    Source materials place the factual news in this context: The crypto asset market has grown from a niche curiosity into a multi-trillion-dollar asset class to which investors actively seek exposure.

  • Evernorth Secures Shareholder Approval for Nasdaq Listing

    Evernorth Secures Shareholder Approval for Nasdaq Listing

    Evernorth Poised for Nasdaq Debut as SPAC Merger Nears Completion

    Evernorth is on track to become a publicly traded XRP treasury company, with its shares expected to begin trading on the Nasdaq under the ticker XRPN following the closure of its merger with blank-check firm Armada Acquisition Corp. II. The company anticipates holding an XRP treasury valued at approximately $710 million at current market prices.

    Key Milestones Reached

    Shareholders of Armada Acquisition Corp. II have approved the proposed business combination, clearing a significant hurdle for Evernorth. The deal is slated to close on October 7, with trading of the combined entity’s shares on Nasdaq anticipated to commence the following day, contingent upon the satisfaction of remaining closing conditions. This approval follows Evernorth’s filing of its Form S-4 registration statement with the U.S. Securities and Exchange Commission in March, which was declared effective in August.

    Substantial XRP Holdings Expected

    Upon closing, Evernorth projects it will possess around 473 million XRP. The company asserts this will establish it as the largest publicly traded, pure-play XRP treasury firm.

    Funding and Investor Base

    The transaction is expected to generate approximately $300 million in gross cash proceeds. This includes $225 million from private placements, $30 million from convertible note financing, and roughly $48 million from Armada II’s trust. Investors have also directly contributed XRP to the transaction.

    At the time of publication, XRP was trading around $1.50, according to CoinGecko data, placing Evernorth’s anticipated 473 million-token treasury at an estimated $710 million.

    Evernorth’s investor roster includes prominent names such as Ripple, Kraken, Pantera Capital, SBI Group, Arrington Capital, and GSR. The company intends to enhance its XRP holdings per share through yield strategies, active participation in the XRP ecosystem, and capital markets activities.

    Broader Market Context

    Evernorth’s planned Nasdaq listing occurs amidst a mixed landscape for other cryptocurrency companies seeking to access U.S. public markets via SPAC mergers this year.

    Tokenization firm Securitize successfully began trading on the New York Stock Exchange in July after its merger with Cantor Equity Partners II. Similarly, CoinShares made its Nasdaq debut in April following a $1.2 billion merger with Vine Hill Capital Investment Corp.

    However, crypto treasury companies have also encountered challenges. Ether Machine abandoned its planned merger with Dynamix in April, citing unfavorable market conditions and halting plans for a $1.5 billion yield-bearing Ether fund. In July, Adam Back’s Bitcoin Standard Treasury Company and Cantor Equity Partners I revised the terms of their proposed merger and indefinitely postponed a shareholder vote, while renegotiating a deal to “better reflect market conditions.”

  • CLARITY Act Failure in Senate Sparks Crypto Market Rally Amidst Regulatory Uncertainty

    CLARITY Act Failure in Senate Sparks Crypto Market Rally Amidst Regulatory Uncertainty

    The US Senate’s recent failure to advance the CLARITY Act has introduced a period of regulatory ambiguity for the cryptocurrency market, coinciding with a notable rally in several digital assets. While the bill’s stall avoids potential new restrictions on stablecoins and exchange operations, it leaves the long-term regulatory landscape uncertain.

    The CLARITY Act, after years of negotiation, did not secure the necessary 60 votes in the US Senate. This outcome has been viewed by some in the industry as a positive development. According to Hougan, Chief Investment Officer at Bitwise, the failure was beneficial because the final version of the bill contained compromises that could have imposed new restrictions on stablecoins, exchange operations, and licensing. With the bill stalled, existing stablecoin rules remain in place, and established exchanges such as Coinbase and Kraken avoid potential changes to their operational frameworks for now.

    Following the vote, several digital assets experienced price increases. Bitcoin and Ethereum each rose approximately 11%. More significant gains were seen in other cryptocurrencies, with NEAR jumping 125%, Uniswap rising 49%, and Avalanche gaining 44%. The proposed legislation would have restricted platforms from paying customers interest or rewards on stablecoin balances and would have created a national licensing system for spot crypto exchanges, potentially limiting how exchanges combine trading and brokerage services.

    In parallel with the legislative developments, the Securities and Exchange Commission (SEC) has recently provided clearer guidance in certain areas. The SEC has allowed certain tokenized US stocks to trade through blockchain-based systems under temporary rules. According to Hougan, these temporary rules could offer tokenization companies an opportunity to test their technology in real markets sooner. Additionally, the SEC has clarified that announcing a buyback program does not, by itself, turn a token into a security once a blockchain network is functional. Hougan interprets this clarification as beneficial for revenue-generating tokens, citing examples like NEAR and Uniswap, which have seen gains while utilizing protocol revenue for buybacks.

    Despite the immediate positive market reaction and the SEC’s recent clarifications, significant regulatory uncertainty persists. Hougan expects that “crypto to be too big to crush,” but acknowledges that future regulatory changes remain a possibility. Michael Saylor also sees the current situation as an opportunity. He recently argued that the crypto sector may be better served by working with supportive regulators at agencies like the SEC, CFTC, and Treasury, rather than accepting restrictive legislation. Saylor believes the industry should use the coming years to build compliant crypto products under existing rules, focusing on lowering costs, expanding access, and giving users more control over their money, rather than rushing to pass compromise legislation.

    However, the long-term regulatory outlook carries inherent risks. A major uncertainty remains regarding potential regulatory shifts under a new administration. Future leadership at the SEC or CFTC could adopt a more stringent approach to cryptocurrency regulation. This evolving landscape underscores the need for the industry to navigate carefully, balancing innovation with compliance in the face of ongoing regulatory ambiguity.

    Why This Matters

    The materials describe a narrow update: The US CLARITY Act failed to pass the Senate. Future regulatory changes under a new administration.

    Broader Context

    Source materials place the factual news in this context: The CLARITY Act failed to get the 60 votes needed to move forward in the US Senate after years of negotiations.

  • Bitcoin Breaks $85K Sell Wall, Eyes Further Gains

    Bitcoin Breaks $85K Sell Wall, Eyes Further Gains

    Bitcoin’s formidable $85,000 resistance level may have just weakened. A significant sell wall, a large concentration of sell orders at a specific price, has reportedly been dismantled by buyers, according to a post on X. This development could pave the way for further price appreciation by reducing the overhead supply of sell orders.

    Understanding Sell Walls

    A sell wall is a technical indicator in cryptocurrency markets representing a substantial cluster of limit sell orders placed at a particular price point. For the price to surpass this level, buyers must absorb all these outstanding sell orders. The larger the sell wall, the more buying pressure is required to break through it.

    On-chain analytics firm Glassnode identified a sell wall on the Binance exchange situated between $85,000 and $85,500. This wall had reportedly tripled in size between September 24 and September 30, 2026.

    Recent Price Action and Influencing Factors

    On September 21, Bitcoin briefly breached the $85,000 mark, reaching an intraday high of approximately $85,248. A portion of this surge was attributed to the liquidation of roughly $648 million in short positions. Short liquidations occur when traders who bet on a price decline are forced to buy back the asset to close their positions, thereby adding to buying pressure during an upward move.

    However, after the short squeeze subsided, Bitcoin struggled to maintain its position above $85,000 and subsequently retreated.

    Two primary forces contributed to this price pullback. Firstly, demand from U.S. spot Bitcoin Exchange-Traded Funds (ETFs) showed signs of cooling. Net inflows into these ETFs experienced a sharp decline after September 22, reaching a low of just $24 million on September 28.

    Secondly, long-term Bitcoin holders began to take profits. Their share of realized profits increased significantly, rising from 34% to 55% in the week ending September 29.

    Throughout this period, Bitcoin managed to hold above several key support levels. These include the Short-Term Holder Cost Basis, which hovers around $73,300, and the True Market Mean, located near $77,200.

    Key Indicators to Monitor

    Several factors will be crucial in determining Bitcoin’s next move.

    The first is the sustainability of the sell wall’s removal. Sell walls are composed of limit orders, which can be canceled or repositioned at any time. Therefore, monitoring the order book depth on Binance within the $85,000 to $85,500 range will be important.

    The second signal to watch is ETF flows. The significant drop in inflows to $24 million on September 28 highlighted how rapidly institutional demand can fluctuate.

    The third factor is the behavior of long-term holders. With their realized profit share at 55%, these long-term investors have been a significant source of supply at current price levels.

    The price action on September 21 also offers a cautionary tale. The brief surge above $85,000, partly fueled by liquidations, ultimately proved unsustainable.

    On the downside, the True Market Mean near $77,200 and the Short-Term Holder Cost Basis around $73,300 represent critical levels. A sustained break below these points could signal a weakening market structure.

  • Evernorth Treasury Vote Clears Path for XRP Listing on Nasdaq

    Evernorth Treasury Vote Clears Path for XRP Listing on Nasdaq

    Evernorth Secures Shareholder Approval for Nasdaq Listing with 473 Million XRP Treasury

    Evernorth’s merger with Armada Acquisition Corp. II received shareholder approval on Wednesday, paving the way for its substantial 473 million XRP treasury to be listed on Nasdaq.

    The vote saw approximately 20.5 million shares in favor and 1.4 million against, according to a filing by Armada II on Thursday. This development follows the SEC declaring Evernorth’s registration statement effective on August 27.

    Evernorth anticipates the deal will officially close on October 7. The company’s shares are expected to commence trading the following day under the ticker XRPN, which is already utilized by the special purpose acquisition company (SPAC).

    The firm announced that the merger and its associated private placements have collectively raised over $1 billion, a figure that aligns with its initial projections for the transaction made in October 2025. A portion of this total was contributed by investors in XRP, with the company’s announcement not specifying a dollar valuation for these holdings.

    Evernorth’s statement indicates that approximately $300 million of the total funds raised is in gross cash. Private placements account for $225 million of this cash component. An additional $30 million is derived from convertible notes that the company agreed to sell in September.

    Investors in advance funding provided $214 million of the capital raised through private placements, as detailed in the proxy statement. Evernorth utilized these funds in late 2025 to acquire 84.4 million XRP at an average price of $2.54 per token, which are now part of its existing holdings.

    The SPAC’s trust is contributing an additional $48 million in cash. This trust held approximately $241.9 million as of the August 20 record date. Public shareholders had the option to redeem their shares from the trust at an estimated $10.52 per share until September 28. Neither Thursday’s announcement nor the vote filing specified the number of shareholders who exercised this option.

    RippleWorks supplied the largest portion of Evernorth’s XRP holdings, amounting to 211.3 million tokens, through an investment in the SPAC’s sponsor, Arrington XRP Capital Fund. The sponsor is obligated to exchange these tokens for Evernorth shares upon closing. It has committed to voting these shares according to RippleWorks’ direction. Chris Larsen, co-founder and Executive Chairman of Ripple, is a co-founder of RippleWorks and serves on its board.

    Ripple itself contributed 126.8 million XRP at the time the merger agreement was finalized. An additional 50 million XRP comes from the Larsen Lam Children’s Remainder Trust.

    Evernorth Holdings’ financial statements, included in the proxy filing, report the cost of 346.3 million of its XRP at $846.6 million. By June 30, 2026, the company carried these tokens on its books at $348.8 million. It recorded impairment charges of $233.7 million in 2025 and $264.1 million in the first half of 2026.

    Evernorth accounts for XRP at its cost basis and subsequently reduces its value to the lowest intraday price observed since each batch was acquired. This written-down value is not subsequently increased if the price of XRP recovers.