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  • Industry Groups Seek Expedited Review of Illinois’s 0.2% Crypto Tax Amid Legal Uncertainty

    Industry Groups Seek Expedited Review of Illinois’s 0.2% Crypto Tax Amid Legal Uncertainty

    Industry organizations are pushing for an expedited court review of Illinois’s 0.2% digital-asset tax, seeking a swift resolution on the lawfulness of the measure. The tax is currently slated to take effect on July 1, 2027, following a six-month delay.

    In a filing with the Circuit Court of Sangamon County, Illinois, groups including the Crypto Council for Innovation (CCI) and the Blockchain Association (BA) have requested an expedited schedule for summary judgment. This move aims to resolve the legal merits of the tax as quickly as possible, with a potential decision on its lawfulness by March.

    Legal Challenge and Expedited Timeline

    The organizations are joining existing legal challenges against the tax. The Digital Chamber and the Illinois Blockchain Association have also filed lawsuits. The request for expedited review consolidates the efforts to address the tax’s legality.

    According to the filing, the CCI and BA are seeking to “reach a decision on the tax’s lawfulness as quickly as possible.” This push for an accelerated legal process comes after Illinois officials agreed to delay the tax’s implementation. The delay, which extends from January 1 to July 1, 2027, was part of a settlement in a lawsuit filed by the Digital Chamber.

    Background of the Tax Delay

    This delay was reportedly agreed upon in response to claims that the Digital Asset Tax Act was included in the state’s budget without adequate debate or public feedback. Digital Chamber CEO Cody Carbone stated that the organization would continue legal proceedings “until this tax is struck down for good.”

    CCI CEO Ji Kim commented on the urgency, stating, “While pausing enforcement of the Digital Asset Tax Act protects Illinois consumers and businesses from this onerous and legally flawed tax until July 1, it remains imperative that the merits are determined as soon as possible.”

    The outcome of the request for an expedited schedule remains uncertain, as it is subject to court approval. If granted, a decision on the merits of the law could be reached by March, significantly sooner than the tax’s current effective date.

    Why This Matters

    The push for an expedited review by industry organizations highlights a proactive legal strategy to resolve regulatory uncertainty surrounding Illinois’s digital-asset tax. The potential for a court decision by March, should the expedited schedule be approved, could provide clarity on the tax’s lawfulness sooner than anticipated, influencing future regulatory approaches to digital assets in the state.

    In related news, Summer Mersinger is scheduled to step down as CEO of the Blockchain Association. Kristin Smith is expected to take over as interim head. Mersinger is anticipated to remain with the organization until the end of 2026.

    Broader Context

    Source materials place the factual news in this context: Illinois officials already agreed to delay implementation of a 0.2% tax on crypto assets, but industry-aligned organizations are pushing for summary judgment on the merits.

  • BitGo Reaffirms Custodial Role, Emphasizing Client Asset Control Amid Service Expansion

    BitGo Reaffirms Custodial Role, Emphasizing Client Asset Control Amid Service Expansion

    BitGo is reinforcing its commitment to safeguarding client assets by emphasizing its strict operational framework, which prevents the company from accessing or redeploying client funds without explicit authorization. This assurance comes as BitGo expands its offerings into areas such as prime brokerage, staking, and tokenized assets, services that could traditionally involve custodians utilizing client funds.

    Custodial Safeguards in Practice

    According to BitGo’s Chief Product Officer Eugene Hahr, the company operates strictly as a custodian, meaning client assets remain under the full ownership and control of the client at all times. This principle is underpinned by several key operational and contractual safeguards. BitGo’s custodial services agreements explicitly state that the company cannot access or deploy client assets without direct authorization from the client. This is further supported by a policy of holding assets on a strict 1:1 basis, meaning no rehypothecation occurs. Client assets are maintained in segregated accounts, ensuring they are kept separate from the company’s own funds.

    Technological measures also play a crucial role in enforcing BitGo’s custodial stance. The company utilizes multi-signature wallets, which require multiple approvals for any transaction, akin to a joint bank account needing more than one signature. Additionally, BitGo employs multi-party computation (MPC) technology. MPC splits cryptographic keys into pieces held by different parties, allowing transactions to be signed collaboratively without a complete key ever existing in one place. Both multi-signature and MPC setups are designed to restrict unilateral transaction authorization, according to BitGo, preventing the company from moving client funds on its own.

    Navigating Expansion

    BitGo’s expansion into prime brokerage and staking services presents a familiar question for institutional clients: how are their assets protected when the custodian offers services that could generate additional revenue by putting those assets to work? BitGo’s messaging indicates a strategy to grow into these areas without crossing the line from custodian to user of client funds. Clients can opt into activities like staking, but the default position is that no asset movement occurs without their explicit consent.

    Insurance and Oversight

    To further bolster confidence, BitGo carries insurance coverage of up to $250 million from Lloyd’s of London. However, it is noted that this figure represents a ceiling on coverage and not a may provide that every possible loss would be fully compensated. BitGo’s banking arm, BitGo Bank & Trust, NA, operates as a federally chartered institution overseen by the Office of the Comptroller of the Currency (OCC), adding a layer of regulatory oversight.

    Hahr has also highlighted the importance of robust custody infrastructure for scaling tokenized equities, particularly in markets that operate 24/7. Unlike traditional stock exchanges that close at night and on weekends, crypto markets are always active, requiring continuous operational support for digital assets.

    While BitGo emphasizes its strict custodial protocols and technological safeguards, an uncertainty remains regarding whether the $250 million insurance coverage from Lloyd’s of London would cover every possible loss scenario. Nevertheless, the company’s core message focuses on maintaining client control and asset security as it navigates its business expansion.

    Why This Matters

    The materials describe a narrow update: BitGo’s Chief Product Officer Eugene Hahr has reiterated that the company operates strictly as a custodian and cannot access or redeploy client assets without explicit client authorization. Whether the $250 million insurance coverage from Lloyd’s of London would cover every possible loss.

    Broader Context

    Source materials place the factual news in this context: BitGo is pushing into prime brokerage, staking and tokenized assets.

  • Injective Markets Heavily Tied to Tokenized Assets

    Injective Markets Heavily Tied to Tokenized Assets

    Injective Blockchain Expands Tokenized Asset Offerings, Achieves SEC Transfer Agent Status

    Injective, a Layer-1 blockchain designed for financial applications, has significantly expanded its offerings of tokenized real-world assets (RWAs), with nearly half of its markets now providing exposure to these instruments. As of mid-October 2026, the platform hosts 135 active RWA perpetual markets, encompassing a diverse range of asset classes.

    A perpetual is a type of futures contract that does not have an expiration date, allowing traders to speculate on an asset’s price movements without directly owning the underlying asset.

    Equities Lead the Charge in RWA Markets

    Equities form the largest segment of Injective’s RWA market, featuring over 111 stock markets. The platform also offers markets for foreign exchange, commodities, and indices. Notably, Injective has introduced markets for pre-IPO assets, including private companies such as SpaceX and OpenAI, which are not yet traded on public exchanges.

    Since early 2025, Injective’s RWA perpetual markets have collectively generated over $5.3 billion in trading volume. In August 2026, monthly activity reached approximately $210 million.

    Landmark SEC Registration Paves Way for On-Chain Securities

    On October 12, 2026, Injective made history by becoming the first Layer-1 blockchain to be registered as an SEC transfer agent. This registration enables Injective to maintain compliant on-chain records of securities ownership. The distinction is crucial: while a perpetual contract tracks a price, a tokenized security registered through a transfer agent is intended to represent legal ownership.

    This regulatory milestone followed the publication of a new whitepaper on October 7, 2026, which outlined three key features: native RWA issuance, role-based permissions, and iAssets, a suite of derivatives products. Role-based permissions empower issuers to control asset access and transfers, a requirement for regulated securities.

    Tokenization Efforts and Trader Appeal

    On-chain tokenization efforts are gaining momentum, with over $1 billion worth of mortgage records already processed. Pineapple Financial, a participant on the platform, aims to tokenize more than $10 billion in assets.

    For traders, Injective offers a unified on-chain venue for accessing equities, foreign exchange, commodities, and pre-IPO companies. However, perpetuals tracking pre-IPO companies present unique challenges, as the absence of public price discovery can complicate valuation and lead to volatility and wide spreads in thinly traded markets.

    Future Outlook for Injective’s RWA Ecosystem

    Several key developments will be worth monitoring in the coming months. These include whether monthly RWA trading volume can surpass the approximately $210 million recorded in August, whether Injective’s transfer agent status will spur native securities issuance on the blockchain, and if Pineapple Financial will progress towards its ambitious $10 billion tokenization target.

  • Solana Schedules Next Major Upgrade

    Solana Schedules Next Major Upgrade

    Solana Sets October 21 for Alpenglow Upgrade, Promising Near-Instant Transaction Finality

    Solana has scheduled October 21 for the rollout of Alpenglow, a comprehensive system upgrade designed to replace the current consensus mechanism used by its validators. The transition is slated to coincide with the start of epoch 1064, which the Solana Foundation anticipates will commence around 3:00 PM UTC on that Wednesday.

    Alpenglow will supersede TowerBFT, the existing consensus system, with the ambitious goal of achieving transaction finality in approximately 150 milliseconds. Transaction finality signifies the point at which a transaction becomes irreversible. Under the current TowerBFT system, this process takes around 12.8 seconds.

    While payments on Solana are currently confirmed with considerable speed, this confirmation does not guarantee irreversibility. Until TowerBFT completes its 13-second cycle, there remains a theoretical possibility that a block could be discarded. This lingering uncertainty compels entities handling significant financial transactions to await the full confirmation window. With finality reduced to about 150 milliseconds, the irreversible confirmation will arrive almost as swiftly as the initial optimistic one, a crucial improvement for applications like checkout systems accepting SOL, decentralized finance (DeFi) platforms, and trading desks settling positions.

    TowerBFT operates by having validators submit their votes as on-chain transactions. A block is only considered final once votes from 32 slots have accumulated. Votor, the voting protocol integrated with Alpenglow, shifts vote processing off-chain. This allows validators to communicate directly, bundle votes into certificates, and achieve block finality after a single round of voting, or at most two.

    If 80% or more of the staked assets back a block in the initial round, it is finalized immediately. Should support fall between 60% and 80%, a second round with a 60% threshold determines whether the block is finalized or skipped. The Solana Foundation states that this design can tolerate up to 20% malicious stake and an additional 20% of offline stake.

    Alpenglow Mainnet Activation

    Alpenglow is set to go live on the mainnet-beta on Wednesday, October 21, at approximately 2:50 PM UTC. This upgrade represents 18 months of development for a migration that will occur within a single slot, drastically reducing finality from seconds to around 150 milliseconds.

    Ordinary users will not need to take any action, and wallets and applications are expected to function as they do currently. The Solana Virtual Machine, transaction formats, programs, and fees will remain unchanged. For developers, the distinction between “confirmed” and “finalized” commitment levels will effectively disappear.

    Each vote account will require an additional 0.8 SOL, beyond its rent-exempt balance, to cover the new Validator Admission Ticket. This is a per-epoch fee of the same amount that will be burned. It replaces the approximately 1 SOL per epoch that validators previously spent on vote transaction fees under TowerBFT. Validators unable to cover this fee will be excluded from voting and block production for the subsequent epoch.

    The feature gate for Alpenglow will activate at the beginning of epoch 1064. However, TowerBFT will continue to manage consensus for an additional 5,000 slots, approximately 18 minutes, before Alpenglow assumes full control at slot 459,653,000. This staggered approach is designed to ensure stability and mitigate any potential issues during the transition.

    Validators approved Alpenglow in September 2025, with the SIMD-0326 proposal passing with 98.27% of the votes cast in favor. In May, Anza Lead Economist Max Resnick indicated to Decrypt that the team was targeting a late Q3 or early Q4 mainnet activation, suggesting the current timeline is proceeding as planned.

    The October 21 deployment will introduce Votor, the first component of Alpenglow. Rotor, which will replace Turbine—Solana’s system for broadcasting block data among validators—is slated for a later release, with no specific date yet announced.

  • Standard Chartered Enables Direct Bitcoin and Ethereum Trading for Wealthy UAE Clients

    Standard Chartered Enables Direct Bitcoin and Ethereum Trading for Wealthy UAE Clients

    Standard Chartered announced on Wednesday that it is enabling direct trading of Bitcoin and Ethereum for its affluent clients in the United Arab Emirates. This new service allows eligible clients to buy and sell the cryptocurrencies directly from their bank accounts, eliminating the need for separate digital wallets or third-party trading platforms.

    Broader Context

    Source materials place the factual news in this context: Standard Chartered is a British lender.

    Service Integration and Security

    The service is available to clients classified as Professional Investors and operates under licensing approval from Dubai’s Virtual Assets Regulatory Authority (VARA). Standard Chartered will handle the custody and settlement of these digital assets through a closed-loop model. The bank states this approach reduces clients’ exposure to third-party wallet risks.

    Samir Subberwal, the bank’s global head of wealth solutions, retail products, data and analytics, highlighted the significance of this integration, stating, “This launch represents a significant milestone for Standard Chartered as we bring digital assets into our core wealth offering.” He added, “Clients now want more than access, and are looking for the security that comes with buying through a regulated institution.”

    Expanding Crypto Offerings

    This move integrates digital assets into Standard Chartered’s core wealth management offering. Previously, the bank provided indirect exposure to cryptocurrencies through instruments like ETFs, structured products, and over-the-counter derivatives. Standard Chartered also brought its institutional crypto desk to the UAE last month through its unit in the Dubai International Financial Centre, which is overseen by the Dubai Financial Services Authority.

    Standard Chartered’s crypto custody service went live in the UAE in September 2024. The bank also operates a crypto custody service in the EU via a Luxembourg entity, which became operational a few months after the UAE launch.

    Context and Background

    Standard Chartered is a global systemically important bank, and the UAE is identified as one of its four global wealth hubs. The bank’s venture arm, SC Ventures, backs Zodia Markets, a digital asset infrastructure provider.

    While the bank has historically been involved in the digital asset space, including through analyst commentary, this direct trading service for wealth clients in the UAE is described as a global first for Standard Chartered and the first crypto trading offering from an international bank in the UAE. The bank has not provided specific details on the exact date of the announcement on Wednesday, nor the precise timeframe for the EU custody service launch or the UAE institutional desk launch.

  • Evernorth to Deploy 473 Million XRP with Ripple, Kraken, Coinbase

    Evernorth to Deploy 473 Million XRP with Ripple, Kraken, Coinbase

    Evernorth Taps Ripple, Kraken, Coinbase, and BitGo for XRP Treasury Strategy

    Evernorth Holdings, a digital asset treasury company, has named Ripple, Kraken, Coinbase, and BitGo as its inaugural institutional execution partners. The company intends to leverage its substantial holdings of 473 million XRP to generate returns, moving beyond a simple buy-and-hold approach.

    The strategic partnerships are designed to facilitate institutional strategies for Evernorth’s XRP treasury. The company’s CEO, Asheesh Birla, stated that the objective is to generate earnings and, over time, increase the amount of XRP represented per share.

    The announcement, made on October 14, coincided with Evernorth’s ringing of the Nasdaq closing bell to mark its public debut. This treasury strategy represents a significant step in Evernorth’s ambition to enhance institutional access to the XRP market.

    “We’re putting our treasury to work,” Birla remarked, emphasizing the company’s desire to actively participate in the growth of the XRP ecosystem. He further elaborated that the company aims to grow XRP per share while simultaneously supporting the broader ecosystem.

    The selection of Ripple, Kraken, Coinbase, and BitGo was based on their robust institutional infrastructure, licensing, financial stability, and proven track record serving public companies and asset managers.

    Each partner will play a distinct role in supporting Evernorth’s operations. Ripple will provide connectivity to the XRP ecosystem and its underlying infrastructure. Kraken and Coinbase will offer exchange services for trade execution, while BitGo will handle the institutional custody of Evernorth’s digital assets.

    Collectively, these four partners will enable Evernorth to manage its XRP holdings and implement its planned strategies, adhering to the stringent controls and reporting standards expected of a Nasdaq-listed entity.

    Evernorth has not yet disclosed the specific allocation of its XRP treasury across various strategies or provided concrete return targets. The success of these plans will also be contingent on prevailing market conditions and the emergence of new opportunities, such as the development of credit markets on the XRP Ledger.

  • SUI ETFs Attract Consistent Inflows Amidst Network Growth and Technical Buy Signal

    SUI ETFs Attract Consistent Inflows Amidst Network Growth and Technical Buy Signal

    US-listed SUI Exchange Traded Funds (ETFs) have experienced five consecutive weeks of inflows, accumulating approximately 14 million SUI tokens. This sustained investor interest coincides with significant network developments and a positive buy signal from the SuperTrend indicator on the 4-hour chart, suggesting potential for network expansion.

    Network Advancements and Partnerships

    Several key advancements are bolstering the SUI ecosystem. The network recently demonstrated its capacity during a live stress test at Basecamp, reportedly handling over 40 million transactions per second, a figure more than six times its previous record. This test simulated AI agent activity using over 10,000 programmable tunnels, with transactions settled on the Sui network. This development aligns with a collaboration announced with Alibaba Cloud, aimed at integrating cloud and AI inference services into Sui’s Agent Payments system. According to the latest findings by Ali Martinez, this could allow AI agents to pay for services using stablecoins within set spending limits.

    Further expanding SUI’s utility, the network is being integrated into Samsung Wallet’s offering for Galaxy devices in the United States. This integration is expected to support stablecoin transfers without gas fees for an estimated 82 million eligible devices. Additionally, Circle’s Cross-Chain Transfer Protocol V2 has launched on Sui, enabling native USDC to move between Sui and 29 other supported blockchains, enhancing payment and DeFi options.

    The SUI ecosystem is also seeing progress in its Bitcoin finance initiatives. The project, known as Hashi, is preparing for a phased mainnet rollout this month. Hashi has reportedly secured over $500 million in capital commitments from more than 20 participating institutions, with Anchorage Digital named as a launch partner.

    Performance and Stability

    These developments come as the Sui network has surpassed a significant milestone, recording over 5 billion total transactions, with the current figure standing around 5.02 billion, according to BSCN. For the past 30 days, the network has reported 100% uptime. However, the network has faced stability challenges earlier this year. In May, Sui experienced three major outages within a 48-hour period, resulting in over 15 hours of downtime. Prior to that, a consensus bug in January halted block production and transaction processing for approximately five hours and 52 minutes.

    Outlook

    While the current uptime metrics show improvement, these past incidents highlight the ongoing need for network stability as it scales. The sustained inflows into SUI ETFs, combined with the technical buy signal and the ongoing development of its ecosystem, indicate growing momentum. However, the long-term success of these integrations and projects, alongside the network’s ability to maintain consistent uptime, remains a key area for observation.

    Why This Matters

    The materials describe a narrow update: US-listed SUI ETFs have seen consistent inflows for five weeks, totaling around 14 million SUI. The exact timing and impact of the ‘next leg higher’ for SUI.

    Broader Context

    Source materials place the factual news in this context: Amid weakening demand for Bitcoin and Ethereum exchange-traded funds, US-listed SUI ETFs are moving in the opposite direction.

  • Babylon Labs Proposes Native Bitcoin Collateral for Aave V4

    Babylon Labs Proposes Native Bitcoin Collateral for Aave V4

    Babylon Labs is advancing a proposal for Aave V4 that would enable users to borrow assets by using Bitcoin as collateral, without requiring the Bitcoin to leave the Bitcoin network. This approach aims to circumvent the need for wrapped Bitcoin (WBTC) and maintain self-custody for users.

    Why This Matters

    The materials describe a narrow update: Babylon Labs is developing a protocol (Trustless Bitcoin Vaults – TBV) that allows users to borrow assets on Aave V4 by using Bitcoin as collateral, with the Bitcoin remaining on the Bitcoin network in self-custodial Taproot UTXOs. Risk parameters still need to be set.

    Broader Context

    Source materials place the factual news in this context: Bitcoin has always had an awkward relationship with DeFi. It’s the largest crypto asset, yet using it in lending markets has usually meant wrapping it and trusting someone to hold the real coins.

    Trustless Bitcoin Vaults Protocol

    The proposal is built on Babylon’s Trustless Bitcoin Vaults (TBV) protocol. TBV locks Bitcoin in self-custodial Taproot UTXOs directly on the Bitcoin network. The system utilizes Taproot scripts and zero-knowledge proofs to enforce borrowing rules and manage collateral, with cryptography effectively replacing the role of a traditional custodian. This means no third party ever holds the private keys to the locked Bitcoin.

    Aave V4 Integration

    Aave V4’s modular architecture, which organizes markets into components called spokes, will accommodate this integration. Babylon’s plan introduces two new spokes: the Babylon Core Lending Spoke, where borrowers would deposit their vault-backed Bitcoin and take out assets like USDC, USDT, and WBTC, and the BTC Vault Swap Spoke, designed to manage liquidations.

    Liquidations, a critical component of lending markets, are handled by the BTC Vault Swap Spoke. When a loan’s collateral value falls below a certain threshold, liquidators step in to repay the debt and claim the collateral at a discount. Babylon’s solution involves settling these liquidations in WBTC. This provides liquidators with an immediately usable asset on Ethereum, while the underlying Bitcoin collateral remains secured on its native network. This design aims to keep liquidations permissionless, allowing anyone to act as a liquidator.

    Control over risk parameters, such as loan-to-value ratios and liquidation thresholds, remains with the Aave Decentralized Autonomous Organization (DAO). Babylon builds the technical infrastructure, but the Aave DAO tokenholders will ultimately decide on these crucial settings.

    Development Timeline and Context

    The partnership between Babylon Labs and Aave was first announced on December 3, 2025. A DAO temperature check, an initial gauge of community interest, began on May 25, 2026. A public testnet deployment for native BTC-backed borrowing was active by October 2026. Additionally, HashKey Cloud reported its integration of TBV for institutional clients on October 7, 2026.

    This development addresses a long-standing challenge in Decentralized Finance (DeFi): integrating Bitcoin, the largest cryptocurrency, into lending markets without compromising user custody. Historically, this has often required wrapping Bitcoin into tokens on other blockchains, a process that many Bitcoin holders, particularly those adhering to the “not your keys, not your coins” principle, find unappealing. Babylon’s model seeks to eliminate this objection by allowing users to borrow against their Bitcoin while retaining full control over their private keys.

    Furthermore, the integration could potentially increase the utilization of WBTC within Aave’s existing pools. Aave holds a significant supply of WBTC, but borrow demand for it has historically lagged. By facilitating WBTC payouts to liquidators and allowing borrowers to take out WBTC, the proposal might put more of this idle supply to work.

    Next Steps and Uncertainties

    However, the proposal is still navigating the Aave DAO governance process. Further votes, including the ARFC (Aave Request for Comment) and AIP (Aave Improvement Proposal) stages, are required before the integration can go live on the mainnet. The specific risk parameters set by the Aave DAO will be crucial in determining the adoption and success of this feature. Additionally, the robustness of the WBTC settlement mechanism under market stress and the competition from existing wrapped Bitcoin products will be key factors to monitor.

  • BlackRock Crypto ETF Assets Surge 63% to $80 Billion in Q3

    BlackRock Crypto ETF Assets Surge 63% to $80 Billion in Q3

    BlackRock’s Digital Assets Division Sees Significant Growth in Q3 2026

    BlackRock’s cryptocurrency business experienced a robust third quarter in 2026, with its digital assets division growing to approximately $79.6 billion to $80 billion in assets under management. This represents a substantial increase of roughly 63% from the $48.8 billion recorded at the close of the previous quarter. However, the division has yet to reach the peak performance it achieved last year.

    Third-Quarter Results and Key Drivers

    The world’s largest asset manager announced its third-quarter earnings on October 14, 2026. The digital assets segment’s performance was primarily propelled by two flagship funds: the iShares Bitcoin Trust (IBIT) and the iShares Ethereum Trust (ETHA).

    Net inflows into BlackRock’s digital asset exchange-traded products totaled $7.9 billion for the quarter, marking the strongest quarterly inflow since the third quarter of 2025.

    Price Appreciation Contributes to Growth

    Beyond new capital, price appreciation played a significant role in the surge of assets under management. Bitcoin’s value climbed by over 42% during the quarter, rising from approximately $58,564 to around $84,000. Ethereum also saw notable gains over the same period.

    On-chain data from Arkham Intelligence corroborates this trend, tracking BlackRock-linked crypto holdings at approximately $77.1 billion, an increase of about 62%. The majority of these holdings are attributed to IBIT’s Bitcoin exposure.

    Broader Business Context

    For perspective, BlackRock’s overall business is immense. The firm reported total net inflows of $205 billion for the quarter, pushing its firm-wide assets under management to a record $15.5 trillion. Within this vast portfolio, the digital assets category contributed approximately $8 billion to the firm’s total ETF flows of $135 billion.

    Recovering from Previous Peaks

    The digital assets category had previously reached a high of around $104 billion in September 2025. Despite the impressive 63% quarterly growth, the division still falls short of this previous peak. Assets stood at $48.8 billion at the beginning of the third quarter of 2026, less than half of their value a year prior.

    IBIT Leads the Way, Sensitivity to Price Remains

    IBIT continues to be the primary driver of the digital assets business. Arkham’s data indicates that Bitcoin exposure through IBIT constitutes the largest portion of BlackRock’s crypto holdings, with ETHA playing a secondary role.

    The $7.9 billion in net inflows is a critical figure, signifying active investor commitment rather than solely relying on market appreciation. While price gains can inflate assets under management, these inflows demonstrate investors’ deliberate decision to allocate fresh capital.

    Given that a substantial portion of the AUM increase is linked to Bitcoin’s rally, BlackRock’s crypto figures remain highly susceptible to price fluctuations. A market downturn could quickly diminish the reported asset values, even if investor positions remain unchanged.

    The $104 billion peak from September 2025 now serves as a clear benchmark. Reaching this level again will likely require a combination of sustained investor inflows and continued price appreciation in the digital asset market.

  • Injective Eyes Wall Street with INJC Staking ETF Proposal

    Injective Eyes Wall Street with INJC Staking ETF Proposal

    Proposed ETF Could Bring Injective Token to Mainstream Brokerages

    Injective’s native token, INJ, may soon trade under a ticker symbol familiar to traditional investors: INJC. Canary Capital is behind the proposed Staked INJ Exchange-Traded Fund (ETF), having submitted an amended registration statement to the U.S. Securities and Exchange Commission (SEC) on September 24, 2026. The fund aims to provide investors with exposure to INJ without the need for a cryptocurrency wallet, with plans to stake the majority of its holdings to generate additional yield.

    Injective, a Layer 1 blockchain designed for finance and tokenization, is now part of a growing wave of digital asset-related ETF applications. The company’s CEO believes regulators might act more swiftly than the market anticipates.

    The INJC ETF would directly hold INJ tokens, offering investors spot exposure to the asset’s price fluctuations. Furthermore, the fund’s structure is designed to stake approximately 90% of its assets. Staking involves locking up tokens to support the security of a blockchain network, with participants receiving rewards in return.

    BitGo is slated to act as the custodian, responsible for holding the fund’s tokens. The ETF is intended for listing on the Cboe BZX exchange. An S-1 filing is the registration document companies or funds submit to the SEC before offering securities to the public. Amendments to these filings typically follow feedback or updates, suggesting the application process is progressing rather than stalled.

    Canary Capital is not the sole entity pursuing an INJ-related ETF. At least three such applications are currently pending with the SEC. Alongside Canary’s INJC proposal, filings from 21Shares and REX-Osprey are also in review.

    Injective CEO Eric Chen has indicated that the timeline for approval could be sooner than some expect. In an interview on October 5, 2026, he suggested that a 2027 launch for U.S. INJ-linked ETFs might be overly conservative. With multiple active applications underway, Chen posited that U.S. INJ ETFs could potentially launch before 2027.

    In early October 2026, the Injective Foundation introduced its Trench Treasury program. This initiative aims to fund smaller projects being developed on the Injective blockchain and to reward community contributors. The initial funding round is targeting projects such as Sprout and RunUp.

    The inclusion of staking within an ETF structure introduces a yield component, positioning it more as an income-generating investment rather than solely a bet on price appreciation. However, staked tokens can be less liquid, requiring a fund that stakes a significant portion of its holdings to manage redemptions carefully. Maintaining a portion of assets in an unstaked state is one method to address this.

    If approved, the INJC ETF could attract investors who might otherwise avoid setting up cryptocurrency exchange accounts. The presence of three distinct INJ ETF applications suggests that issuers perceive significant investor demand.

    Regulatory approval timelines can be subject to delays, and Chen’s projection of a pre-2027 launch remains an outlook, not a certainty. Staking also presents its own technical and liquidity considerations that traditional ETF investors may not be accustomed to evaluating.

    Key developments to monitor include further amendments to Canary’s S-1 filing, any progress on the 21Shares and REX-Osprey proposals, and signals from the SEC regarding its comfort level with staking mechanisms within an exchange-traded fund structure. On the Injective ecosystem front, the progress of Sprout, RunUp, and other Trench Treasury recipients will be indicative of whether the blockchain’s on-chain activity can align with its ambitions in the traditional financial markets.