The Gemini Dollar (GUSD) is the one of the world’s first regulated stablecoins. It is issued by Gemini Trust Company LLC, a New York Trust Company. Gemini Dollars correspond on a 1:1 basis with US Dollars in order to provide a stable currency for transactions. GUSD is an ERC-20 and is built on and can be transferred on the Ethereum network.

GUSD

Blockworks

The European Central Bank (ECB) has chosen technology providers to deliver core services for a potential digital euro.



In a notice <a href="https://www.ecb.europa.eu/press/intro/news/html/ecb.mipnews251002.en.html">published</a> on October 2, the ECB said it had signed framework agreements with firms responsible for alias lookup, fraud and risk management, app development, offline payments, and secure exchange of payment information. Service requests will first go to the primary provider in each category, with a second vendor available if needed.



Among the selected companies are Feedzai and Capgemini Deutschland for fraud management, Almaviva and Fabrick for app and software development, and Giesecke+Devrient for offline payment solutions. EquensWorldline and Senacor FCS were chosen for secure information exchange, while Sapient GmbH and Tremend Software Consulting are included in multiple categories.&nbsp;



One additional provider for offline services will be announced later, according to the note.



The ECB stressed that the agreements involve no payments at this stage and include safeguards to adapt scope in line with European Union legislation. A decision to issue a digital euro will only follow adoption of the Digital Euro Regulation, which remains under debate. Development of specific components will depend on future approval from the ECB Governing Council.



The initiative reflects the EU’s ongoing effort to create a central bank digital currency (CBDC) that could coexist with cash, improve payment efficiency, and reduce reliance on private stablecoins. Even if ultimately adopted, however, a digital euro may not be launched until the end of the decade.



This is a developing story.



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This article was generated with the assistance of AI and reviewed by editor&nbsp;<a href="mailto:jeffrey@blockworks.co" target="_blank" rel="noreferrer noopener">Jeffrey Albus</a>&nbsp;before publication.



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Banking

ECB picks providers for digital euro components

Casey Wagner

As the US government shutdown enters its second day, the crypto industry is left wondering how the closure will impact pending regulatory matters.



Currently in limbo: the crypto market structure bill, the status of GENIUS Act policies, and the timeline for approving certain spot crypto ETFs.



<h2 class="wp-block-heading">Spot crypto ETFs&nbsp;</h2>



Perhaps the most direct impact the government shutdown is expected to have on the crypto industry is that new spot crypto ETFs will be delayed.&nbsp;



The Securities and Exchange Commission <a href="https://www.sec.gov/files/sec-plan-operations-during-lapse-appropriations.pdf">said</a> that during the shutdown, staff will not review or approve registration statements or issue notices of effectiveness.&nbsp;



An “extremely limited number” of SEC staff will be monitoring emergency email addresses and phone lines for each commission division, the guidance added. An &#8220;emergency” would be anything that immediately threatens market stability, personal safety or property protection.&nbsp;



One crypto ETF issuer told Blockworks that prior to the shutdown, they were feeling confident about listing on Monday, Oct. 6.&nbsp;



But now things are up in the air.



<h2 class="wp-block-heading">Crypto market structure bill&nbsp;</h2>



Despite the shutdown, members of the Senate Banking Committee plan to work on the market structure bill that is due for a markup, according to a person familiar with the matter.&nbsp;



Lawmakers originally wanted to hold a markup hearing for the Responsible Financial Innovation Act of 2025 at the end of September, Blockworks <a href="https://blockworks.co/news/senate-september-market-structure-bill">previously reported</a>, but the failure to pass an appropriations bill delayed this timeline.&nbsp;



Senate Banking Committee Republicans in September finalized the bill draft, expanding upon the House’s CLARITY Act, which passed in July.&nbsp;



The industry is still waiting for the Senate Agriculture Committee — which oversees the Commodity Futures Trading Commission — to release its version of a market structure bill.&nbsp;



A person familiar with the matter told Blockworks ahead of the shutdown that the Agriculture Committee’s draft was “close” but market structure legislation is proving to be more complicated than stablecoin rules.&nbsp;&nbsp;



Should the Senate Banking Committee move forward with a market structure bill markup mid-shutdown, they wouldn’t be the only Committee proceeding with crypto business as scheduled.&nbsp;



On Wednesday, in the first hours of the shutdown, the Senate Finance Committee held a hearing on crypto tax policy.&nbsp;



In his opening remarks, ranking member Sen. Ron Wyden said that while cryptocurrency taxation is an important issue Senators need to “get right,” holding the hearing yesterday showed a “warped sense of priorities.”&nbsp;



Senate Finance Committee Chairman Mike Crapo said the budget debate will continue, but updating the tax code should be a primary concern for lawmakers.&nbsp;



“Without clear tax rules, taxpayers are left with many unanswered questions and individuals, businesses and our country’s finances bear the burden,” Crapo said. “Lingering tax uncertainty also makes the U.S. a less attractive place to do business and invest, and hurts tax compliance.



<h2 class="wp-block-heading">GENIUS Act&nbsp;</h2>



Stablecoin legislation, as it turns out, may not be as straightforward as lawmakers originally believed.&nbsp;



The GENIUS Act became law in July, but that was only step one. The bill lays out a general framework, but it delegates responsibilities to federal and state regulators, who are now tasked with writing and issuing new rules. These include licensing requirements, enforcement processes, AML procedures, etc.&nbsp;



It’s going to take a long time, and we knew that prior to the shutdown, but with agencies currently operating with skeleton crews, designing stablecoin policy is not a top priority.&nbsp;



Plus, the lobbying around stablecoin legislation didn’t stop when President Trump signed the GENIUS Act. Big banks and crypto companies — mostly exchanges — are still at odds over rules surrounding stablecoin yields, and both sides are prepared for an expensive fight, according to a person familiar.&nbsp;



The GENIUS Act stipulates that no stablecoin issuers can offer any yield or interest on holdings. It prohibits issues from offering yields directly, but does not block exchanges, or “affiliates,” from doing so.&nbsp;



Banks weren’t happy about this language, but the crypto industry, especially Coinbase, was.&nbsp;



Back in March, when GENIUS Act negotiations were underway, Coinbase CEO Brian Armstrong emphasized the need for allowing interest payments on stablecoins.&nbsp;“We can choose to level the playing field and ensure these laws pave a way for all regulated stablecoins to deliver interest directly to consumers, the same way a savings or checking account can,” Armstrong wrote in a <a href="https://x.com/brian_armstrong/article/1906723887112401179">post</a> on X.



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Capitol Gains

Capitol Gains: Shutdown blues slow crypto work

The perpetuals race has a new entrant in open beta. Lighter has <a href="https://x.com/Lighter_xyz/status/1973508660061180363">opened</a> its public mainnet after roughly eight months in private testing, positioning itself as an Ethereum-settled alternative to the current leaders.



Under the hood, Lighter is a <a href="https://blockworks.co/tag/zero-knowledge-rollup">zk-rollup</a> purpose-built for <a href="https://blockworks.co/tag/perpetuals">perps</a>. A centralized sequencer batches orders, but state transitions — price-time-priority matching, liquidations, funding and risk checks — are verified by custom zero-knowledge circuits. <a href="https://blockworks.co/tag/ethereum">Ethereum</a> smart contracts custody user funds, track the canonical state root, and advance state only after a proof verifies on L1. If the sequencer stalls or censors, users can submit priority operations on-chain or exit via an emergency “Desert Mode” that relies on Ethereum data.



That security posture contrasts with <a href="https://blockworks.co/tag/hyperliquid">Hyperliquid</a>, which runs its own layer-1 secured by its validator set, and with <a href="https://blockworks.co/news/perps-competition">Aster</a>, which currently operates on BNB Chain as a smart-contract. Lighter’s pitch: centralized-style performance, with settlement and finality anchored to Ethereum and fairness enforced by zk proofs.



Lighter is also diverging on fees. Retail traders using the front end pay no trading fees, while API and high-frequency flow is charged. The team says it has enabled automated rules to deter wash-trading and Sybil activity, an attempt to keep points farming from dominating behavior.



By the team’s <a href="https://x.com/Lighter_xyz/status/1973508673982046513">count</a>, private beta usage reached ~188,000 unique accounts and ~50,000 daily activities. With the public launch, Lighter is starting Season 2 of its points program, which it says is planned to run through the end of 2025. Market watchers naturally read that as a prelude to a token, although the project has not announced any token details.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">Along with their public launch, <a href="https://twitter.com/Lighter_xyz?ref_src=twsrc%5Etfw">@Lighter_xyz</a> just quietly flexed their stacked list of investors:<a href="https://twitter.com/foundersfund?ref_src=twsrc%5Etfw">@foundersfund</a> <a href="https://twitter.com/dragonfly_xyz?ref_src=twsrc%5Etfw">@dragonfly_xyz</a> <a href="https://twitter.com/HaunVentures?ref_src=twsrc%5Etfw">@HaunVentures</a> <a href="https://twitter.com/robotventures?ref_src=twsrc%5Etfw">@robotventures</a> <a href="https://twitter.com/a16z?ref_src=twsrc%5Etfw">@a16z</a> <a href="https://twitter.com/lightspeedvp?ref_src=twsrc%5Etfw">@lightspeedvp</a> <a href="https://twitter.com/A_StarVC?ref_src=twsrc%5Etfw">@A_StarVC</a> <a href="https://twitter.com/coatuemgmt?ref_src=twsrc%5Etfw">@coatuemgmt</a> <a href="https://twitter.com/CRV?ref_src=twsrc%5Etfw">@CRV</a> <a href="https://twitter.com/AbstractVC?ref_src=twsrc%5Etfw">@AbstractVC</a> <a href="https://twitter.com/svangel?ref_src=twsrc%5Etfw">@svangel</a> <a href="https://twitter.com/8vc?ref_src=twsrc%5Etfw">@8vc</a> <a href="https://t.co/xfnzcxkKtF">pic.twitter.com/xfnzcxkKtF</a>&mdash; matt (@mattbcapital) <a href="https://twitter.com/mattbcapital/status/1973516338024030282?ref_src=twsrc%5Etfw">October 1, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



The launch was heralded by several prominent founders building on Ethereum, including Eigenlayer’s <a href="https://x.com/sreeramkannan/status/1973563675349782604">Sreeram Kannan</a> and LayerZero’s <a href="https://x.com/PrimordialAA/status/1973566826857767275">Bryan Pellegrino</a>.



The near-term test is whether Lighter can convert flavor-of-the-moment attention into durable open interest and fee revenue — areas where Hyperliquid still leads — while its Ethereum-anchored architecture becomes a deciding factor for capital that prioritizes provable fairness and exit guarantees.



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Ethereum

Lighter opens public mainnet with Ethereum-settled zk perps

CME Group, the leading US derivatives exchange, announced it will begin offering 24/7 trading for cryptocurrency futures and options in early 2026, pending a regulatory review.



Under the <a href="https://www.prnewswire.com/news-releases/cme-group-to-offer-around-the-clock-trading-for-cryptocurrency-futures-and-options-302573425.html">plan</a>, CME’s cryptocurrency products will trade continuously on the CME Globex platform with only a two-hour weekend maintenance period. Transactions executed during holidays or over weekends will carry the following business day’s trade date, with clearing and settlement also processed on that timeline.



“While not all markets lend themselves to operating 24/7, client demand for around-the-clock cryptocurrency trading has grown as market participants need to manage their risk every day of the week,” said Tim McCourt, Global Head of Equities, FX and Alternative Products at CME Group. “Ensuring that our regulated cryptocurrency markets are always on will enable clients to trade with confidence at any time.”



The potential expansion comes on the heels of record volumes in CME’s crypto segment. In its latest market statistics, also <a href="https://www.cmegroup.com/media-room/press-releases/2025/10/02/cme_group_reportssecond-highestq3andseptemberadv.html">published</a> today, CME reported a record average daily volume of 340,000 cryptocurrency contracts in Q3 2025, representing about $14.1 billion in notional value. Ether futures reached a quarterly record of 236,000 contracts, while Micro Ether futures set a record of 209,000 contracts.



In September alone, cryptocurrency ADV hit 309,000 contracts, with Micro Ether futures surging 472% year over year. These gains underscore the deepening role of digital assets within CME’s broader portfolio, which also saw strong growth in US Treasury, equity index, and metals trading.



If implemented as planned, the shift will reduce traders’ reliance on offshore venues for weekend and overnight risk management. It also signals CME’s intent to capture a greater share of institutional crypto derivatives activity within regulated US markets, though the change will require infrastructure adjustments in clearing, margin, and settlement to handle continuous operations.



This is a developing story.



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This article was generated with the assistance of AI and reviewed by editor&nbsp;<a href="mailto:jeffrey@blockworks.co" target="_blank" rel="noreferrer noopener">Jeffrey Albus</a>&nbsp;before publication.



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CME Group

CME Group eyes 24/7 crypto derivatives trading expansion

DoubleZero announced the launch of its mainnet-beta on October 2, marking a transition from controlled testing to full-scale production and coinciding with the public debut of the 2Z token.



<a href="https://doublezero.xyz/journal/mainnet-beta-is-live-high-performance-networking-at-global-scale">According</a> to the announcement, the network now runs on more than 70 high-performance fiber links across over 25 global locations, contributed by independent providers such as Jump, RockawayX, Distributed Global, Galaxy, Jito and Cumberland/DRW. These links form a dedicated backbone engineered for low-latency, deterministic routing to support high-throughput distributed systems.



The launch follows a staged rollout. Early testnet phases deliberately stress-tested redundancy and failover, while the September 15 mainnet-alpha allowed validators to validate performance at scale. Data from epoch 24 showed that 77% of active links and 82% of measured city-pair routes outperformed the public internet, underscoring the gains of a dedicated transport layer.



At the core of the system is the 2Z token, a Solana Program Library (SPL) asset used for payments, staking and contributor rewards. Genesis supply is capped at 10 billion tokens, with modest inflation to reward network contributions and partial burns to discourage artificial traffic.&nbsp;



This news follows recent guidance from the SEC’s Division of Corporation Finance, where staff issued a no-action letter confirming that 2Z does not need to be registered as a security and that programmatic flows on the DoubleZero network are not considered securities transactions.



This marks a departure from the Commission’s historically cautious stance on token classification, which previously left infrastructure-linked assets in a gray area. Indications suggest the agency is growing ever more open to distinguishing utility-driven distribution models from speculative instruments — a shift that could shape how future DePIN projects approach regulatory compliance.



This is a developing story.



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This article was generated with the assistance of AI and reviewed by editor&nbsp;<a href="mailto:jeffrey@blockworks.co" target="_blank" rel="noreferrer noopener">Jeffrey Albus</a>&nbsp;before publication.



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DoubleZero launches mainnet-beta and 2Z token

Avalanche Treasury Co. (AVAT), a digital asset treasury firm aligned with the Avalanche Foundation will merge with Mountain Lake Acquisition Corp. (Nasdaq: MLAC) in a business combination valued at more than $675 million.



The deal, which <a href="https://www.businesswire.com/news/home/20251002739600/en/Avalanche-Treasury-Co.-Announces-%24675-Million-Business-Combination-with-Mountain-Lake-Acquisition-Corp.-with-Goal-to-Build-%241-Billion-Ecosystem-Treasury">includes</a> about $460 million in treasury assets, is expected to close in the first quarter of 2026 pending regulatory and shareholder approvals, with the combined company slated to list on Nasdaq.



The transaction gives institutional investors a new pathway to gain AVAX exposure through a public vehicle. AVAT’s launch strategy includes discounted token purchases and priority rights on Avalanche Foundation sales to US treasury companies, offering an entry point at 0.77x multiple of net asset value.



The firm aims to expand its holdings to more than $1 billion in AVAX, positioning itself as a key partner in Avalanche’s growing ecosystem, according to the company’s press release.



Advisors and board members include Avalanche founder Emin Gün Sirer, Ava Labs executive John Nahas, and representatives from Dragonfly Capital, Galaxy Digital and Aave.&nbsp;



CEO Bart Smith, formerly of Susquehanna International Group and AllianceBernstein, said the company intends to deploy capital actively across ecosystem initiatives, including real-world asset tokenization, stablecoin infrastructure and validator operations.



This is a developing story.



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This article was generated with the assistance of AI and reviewed by editor&nbsp;<a href="mailto:jeffrey@blockworks.co" target="_blank" rel="noreferrer noopener">Jeffrey Albus</a>&nbsp;before publication.



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Avalanche

Avalanche Treasury Co to merge with MLAC in $675M deal

Polygon has become the launch venue for a new tokenized money market fund (MMF) developed by AlloyX, with Standard Chartered Bank taking on the roles of custodian and registrar.



<a href="https://x.com/sandeepnailwal/status/1973746496668680691">Announced</a> Thursday, the partnership is designed to offer institutional investors a bridge between traditional regulated fund products and blockchain-based financial infrastructure.



At the center of the rollout is the AlloyX Real Yield Token (RYT), which represents exposure to the China Asset Management Select USD Money Market Fund. Unlike conventional shares, these tokens are issued and transacted on Polygon’s blockchain, while Standard Chartered ensures off-chain asset custody and recordkeeping.



AlloyX has integrated Chainlink’s Proof of Reserve and NAVLink to provide real-time transparency into the assets backing the token, aiming to address a common institutional concern about on-chain financial products.



AlloyX was acquired earlier this year by Hong Kong’s Solowin Holdings for $350 million, a move that reinforced its positioning as a stablecoin and tokenization provider for the Asia-Pacific market. With RYT, the company is adding an additional layer of decentralized finance mechanics, such as looping strategies on Polygon, to enhance liquidity and yield.



The project reflects a broader push toward real-world asset (RWA) tokenization, which has attracted both startups and established asset managers. Franklin Templeton and Ondo Finance, among others, have previously launched tokenized MMF structures.



AlloyX’s decision to work with Standard Chartered signals an effort to reassure institutional clients on issues of custody, compliance, and oversight, while Polygon’s low-cost settlement network provides scalability for fund transactions.



This is a developing story.



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This article was generated with the assistance of AI and reviewed by editor&nbsp;<a href="mailto:jeffrey@blockworks.co" target="_blank" rel="noreferrer noopener">Jeffrey Albus</a>&nbsp;before publication.



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Polygon

Polygon partners with AlloyX and Standard Chartered on tokenized fund

FG Nexus said Thursday it will partner with Securitize to tokenize its Nasdaq-listed shares on Ethereum, extending blockchain-based ownership rights to both common and preferred stock.



The initiative, <a href="https://www.globenewswire.com/news-release/2025/10/02/3160323/0/en/FG-Nexus-and-Securitize-Enter-into-Agreement-to-Natively-Tokenize-FG-Nexus-Public-Shares-on-Ethereum.html">announced</a> October 2, will let investors choose to convert traditional shares into digital tokens, enabling onchain transfers with real-time settlement and automated compliance.



Alongside the tokenization effort, FG Nexus continues to build its Ethereum-focused treasury. The company recently raised about $200 million in a private placement and now holds roughly 47,000 ETH, valued at around $208 million. Securitize will provide the regulated infrastructure for the project, drawing on its licenses as an SEC-registered broker-dealer, transfer agent, and operator of an Alternative Trading System (ATS). This framework ensures the tokenized equity retains the same legal protections as traditional stock.



“Public markets are entering the programmable age,” said Carlos Domingo, Securitize’s CEO, highlighting the move as a path for US investors to hold real stock onchain.



“FG Nexus’ agreement with Securitize positions the Company at the forefront of financial innovation and demonstrates our commitment to leveraging cutting-edge solutions that benefit our investor community,” said Kyle Cerminara, co-founder, chairman and CEO of FG Nexus.&nbsp;



“Tokenization is rapidly changing financial markets through increased efficiency and enhanced investor access,” added Maja Vujinovic, CEO of Digital Assets at FG Nexus.



This is a developing story.



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This article was generated with the assistance of AI and reviewed by editor&nbsp;<a href="mailto:jeffrey@blockworks.co" target="_blank" rel="noreferrer noopener">Jeffrey Albus</a>&nbsp;before publication.



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<li><a href="https://blockworks.co/newsletter/thedrop">The Drop</a>: Apps, games, memes and more.</li>



<li><a href="https://blockworks.co/newsletter/lightspeed">Lightspeed</a>: All things Solana.</li>



<li><a href="https://blockworks.co/newsletter/supply-shock">Supply Shock</a>: Bitcoin, bitcoin, bitcoin.</li>
</ul>

FG Nexus brings tokenized stock trading to Ethereum

Taiko activates community governance, names heavyweight board of directors

Ben Strack

This is a segment from the Forward Guidance newsletter. To read full editions, <a href="https://blockworks.co/newsletter/forward-guidance">subscribe</a>.



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After bitcoin just logged its third straight September in the green, we’ll see if the asset can pull off positive returns for a seventh consecutive October.



While bitcoin’s month-over-month October strength is usually supported by September weakness, BTC’s <a href="https://www.coinglass.com/today">5% rise</a> last month changes the set-up a bit.&nbsp;



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="966" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-5.png?w=1024&amp;h=1024" alt="" class="wp-image-108584" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-5.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-5.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-5.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-5.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-5.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-5.png?w=426 426w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-5.png?w=432 432w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-5.png?w=363 363w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-5.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /></figure>



Still, the chance of the “Uptober” narrative playing out again appears solid for several reasons, according to 21Shares crypto research strategist Matt Mena.



A Wednesday report by ADP showed that private employers shed 32,000 jobs in September — “a downside surprise” that boosts expectations for another Fed rate cut, Mena said. The probability of a 25bps cut on Oct. 29 stands at 99%, according to the CME FedWatch <a href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html">tool</a>.&nbsp;



“As liquidity expectations rise, BTC tends to outperform — benefiting both as a digital gold hedge in times of fiscal uncertainty and as a high-beta risk asset when liquidity returns,” Mena told me.



Recent market action underscores this resilience, with bitcoin rising from $108,000 to ~$118,000 by mid-day Wednesday — even after $2 billion in leveraged long liquidations last week. The asset is up 26% year to date.&nbsp;



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1422" height="866" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-4.png?w=1024&amp;h=1024" alt="" class="wp-image-108583" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-4.png?w=1422 1422w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-4.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-4.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-4.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-4.png?w=422 422w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-4.png?w=429 429w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-4.png?w=360 360w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-4.png?w=80 80w" sizes="auto, (max-width: 1422px) 100vw, 1422px" /></figure>



As for other economic data, the latest government shutdown means the Bureau of Labor Statistics may not be able to deliver the jobs report it was set to publish Friday.&nbsp; “[Expect] near-term choppiness from a data blackout and policy uncertainty, but if the Fed stays on track for an October cut and the dollar softens, the backdrop tilts risk-on — historically supportive for bitcoin,” Mena added.



Beyond just October, the fourth quarter is bitcoin’s strongest. This trend was helped by the lead-up to bitcoin ETF approval in 2023 and Trump’s election victory last November.&nbsp;&nbsp;



Grayscale research head Zach Pandl said he expects BTC, ETH and SOL to make new highs in Q4 so long as the Senate makes progress on market structure legislation and macro conditions hold up.&nbsp;



Ether, which dipped to ~$3,800 last week, climbed above $4,300 today (12% off its all-time high). Though the asset has grown 30% so far in 2025, ETH has not, on average, seen the gains BTC has in October (+4.7% vs. BTC’s +20.4%).



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1114" height="678" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/10/Screenshot-2025-10-01-at-16.32.36.png?w=1024&amp;h=1024" alt="" class="wp-image-108604" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/10/Screenshot-2025-10-01-at-16.32.36.png?w=1114 1114w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/Screenshot-2025-10-01-at-16.32.36.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/Screenshot-2025-10-01-at-16.32.36.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/Screenshot-2025-10-01-at-16.32.36.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/Screenshot-2025-10-01-at-16.32.36.png?w=422 422w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/Screenshot-2025-10-01-at-16.32.36.png?w=429 429w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/Screenshot-2025-10-01-at-16.32.36.png?w=360 360w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/Screenshot-2025-10-01-at-16.32.36.png?w=80 80w" sizes="auto, (max-width: 1114px) 100vw, 1114px" /></figure>



“The biggest risk to both crypto and traditional markets is a hawkish pivot from the Fed,” Pandl told me. “As long as rates are heading lower and the economy holds up reasonably well, asset valuations should remain supported.”



As for where bitcoin lands at the end of 2025, Ledn CIO John Glover last week noted the difference in opinion among technical analysts. While he believes BTC could go up to $145,000 by year-end, another camp thinks the bull market ended when bitcoin nearly reached their $125,000 target.



“I remain steadfast in my view that there are higher prices yet to come, and that any dip down to $100,000 or slightly below is a buying opportunity,” Glover added at the time. “However, one view that we all share is that once this bull cycle is complete…the bear market will begin very soon.&#8221;



As conditions fluctuate, investors will soon have more tools to navigate this asset class.



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bitcoin etf

The factors set to spur another ‘Uptober’ for BTC

Macauley Peterson

Ethereum ETFs recorded a dramatic slowdown in September, with monthly inflows collapsing from $3.9 billion in August to just $285 million, according to Blockworks Research data.&nbsp;



The sharp drawdown marks one of the steepest reversals since ETH ETFs launched earlier this year.



The month-over-month change reflects what Blockworks Research <a href="https://blockworks.com/news/prop-amms-solana-rev">analysts call</a> a “flows-driven market.” Last week was the most negative week in aggregate since the March selloff, with bitcoin ETFs posting $900 million in outflows and Ethereum ETFs losing $800 million. Both asset classes have seen ETF flows mirror underlying spot prices, reinforcing the thesis that secondary market activity in the funds is dictating near-term price action.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="889" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-1.png?w=1024&amp;h=1024" alt="" class="wp-image-108577" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-1.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-1.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-1.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-1.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-1.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-1.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-1.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-1.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-1.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /><figcaption class="wp-element-caption">Source: <a href="https://blockworks.com/analytics/crypto-etfs/crypto-etfs/crypto-etfs-etf-flows">Blockworks Research</a></figcaption></figure>



Part of the most recent outflows may be the result of the monthly trends, according to James Butterfill, CoinShares Head of Research, who notes that options expirations at the end of the month beget outflows while early month inflows typically follow.



“The evolving ETF landscape has supported the growth of a much more active options market,” Butterfill told Blockworks.



For ether, the reversal was particularly acute. ETH saw a peak-to-trough price drawdown of nearly −20% in September, before rallying into month-end with a 4% surge on September 30 that left the token down just −3.5% for the month overall. While ETFs are expected to dampen volatility by anchoring institutional demand, September’s flows notwithstanding.



“When [the ETFs] were launched at the beginning of 2024, Bitcoin’s 30-day average volatility was around 40%; today it has fallen to just 25%,” Butterfill said.



A closer look at issuer-level flows shows the divergence within ETH funds. ETHA posted $315 million of net inflows, while smaller products like FETH (−$51.6M), ETHW (−$38.8M), and ETHE (−$28.7M) dragged the category lower.&nbsp;



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="889" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-3.png?w=1024&amp;h=1024" alt="" class="wp-image-108579" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-3.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-3.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-3.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-3.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-3.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-3.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-3.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-3.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-3.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /><figcaption class="wp-element-caption">Source: <a href="https://app.blockworksresearch.com/analytics/team/charts/2650">Blockworks Research</a></figcaption></figure>



Bitcoin ETFs, meanwhile, continued to draw heavier absolute flows and with more resilience relative to ether. The BTC ETFs rebounded to $3.5 billion net inflows in September. Despite a weak final week, creations earlier in the month more than offset redemptions.&nbsp;



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="889" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-2.png?w=1024&amp;h=1024" alt="" class="wp-image-108578" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-2.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-2.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-2.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-2.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-2.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-2.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-2.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-2.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-2.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /><figcaption class="wp-element-caption">Source: <a href="https://blockworks.com/analytics/crypto-etfs/crypto-etfs/crypto-etfs-etf-flows">Blockworks Research</a></figcaption></figure>



Butterfill cites fiscal uncertainty as a tailwind. “With recent macro data coming in weaker than expected, raising expectations for two rate cuts this year instead of one, the US$1.1bn of inflows into Bitcoin appear to be closely tied to this shift,” he said.



The split has widened the performance gap between the majors. Bitcoin ETFs remain the preferred institutional vehicle, while Ethereum ETFs have proven more vulnerable to swings in sentiment. Some investors are opting into alternative proxy plays — like corporate treasuries holding ETH directly — but for now, the ETF lens remains the cleanest gauge of where large pools of capital are rotating.



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ETFs

Ethereum ETF momentum collapses after record August

Lava, a bitcoin-focused financial services startup, announced on Wednesday that it has raised $17.5 million in new funding while also launching a lending product offering yields on US dollars.



In a <a href="https://x.com/lava_xyz/status/1973419826669559964">post</a> on X, the company said its platform allows users to fund overcollateralized loans secured entirely by bitcoin (BTC), with lenders earning up to 7.5% on their deposits.&nbsp;



The funding follows Lava’s earlier $10 million Series A round led by Founders Fund and Khosla Ventures. New backers in this extension include Peter Jurdjevic, Bijan Tehrani of Stake, Charlie Spears, Jacob Brown, Lee Linden, and Zach White. The firm said the additional capital will be used to expand its infrastructure for bitcoin-denominated financial products.



Lava’s service is available globally, offering access to dollar liquidity without selling bitcoin, alongside zero-fee bitcoin trading and yield-bearing USD accounts. The model resembles earlier crypto lending products, such as BlockFi’s interest accounts, which drew scrutiny from the US Securities and Exchange Commission (SEC) and resulted in enforcement actions in 2022.



Lava’s raise comes amid a surge of late-stage and strategic crypto financing activity in September, according to Blockworks Research. Total crypto fundraising reached its highest monthly levels since early 2022, with infrastructure, finance, and blockchain Layer 1 projects leading deal volume.



This is a developing story.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



This article was generated with the assistance of AI and reviewed by editor&nbsp;<a href="mailto:jeffrey@blockworks.co" target="_blank" rel="noreferrer noopener">Jeffrey Albus</a>&nbsp;before publication.



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Lava raises $17.5M and launches bitcoin-backed lending platform

The Ethereum Foundation announced the appointment of new leadership for its Privacy Research Cluster, a move designed to better coordinate ongoing work on cryptography, private computation, and secure scaling solutions.



The cluster will oversee projects ranging from zero-knowledge proofs (ZKPs) to multiparty computation, tools that help preserve user privacy while maintaining verifiability on Ethereum’s public blockchain, <a href="https://blog.ethereum.org/2025/10/01/privacy-cluster-leads">according</a> to a post on the Ethereum Foundation blog.



The Privacy Cluster is part of the foundation’s broader research and development framework, which also includes scaling, security, and protocol sustainability. The new leads will focus on creating standards and shared infrastructure for privacy-preserving technologies.



Privacy has long been a contested area in Ethereum’s roadmap. While zero-knowledge research has already produced mainstream tools such as zkEVM rollups, their implementation raises regulatory and security questions.



US regulators have warned that privacy-preserving protocols may fall under enhanced scrutiny if they facilitate money laundering or obscure financial records. Ethereum’s foundation, however, has emphasized that advancing privacy is critical to user autonomy and censorship resistance.



This is a developing story.



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This article was generated with the assistance of AI and reviewed by editor&nbsp;<a href="mailto:jeffrey@blockworks.co" target="_blank" rel="noreferrer noopener">Jeffrey Albus</a>&nbsp;before publication.



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Ethereum Foundation names leaders for privacy research cluster

Boccaccio

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Over the past month, we’ve seen increasing popularity in perpetual DEXs: both in their tokens (ASTER and APEX) as well as a variety of platforms, which have seen increased volumes due to farming activity (Lighter, Pacifica etc). With the Hyperliquid airdrop worth billions of dollars, most participants are focused on being early to the “next Hyperliquid,” akin to how the L1 trade played out last cycle, where participants wanted to have the chance to be early again.



One key critique that has come up against Hyperliquid is that it is now losing its lead. On first glance, this appears to be true. While Hyperliquid maintained strong positioning with $9.19 billion in average daily volume, Aster&#8217;s explosive entry caused Hyperliquid&#8217;s market share to compress from 56.1% to 13.7% among leading perpetuals DEXs.



However, volume metrics can be easily gamed. Open interest is much more expensive to fake and provides a more reliable indicator of genuine platform usage. By this measure, Hyperliquid remains the dominant platform for perpetual trading with over $13.1 billion in open interest, displaying a notably healthy OI/volume ratio of 1.61.&nbsp;



OI on competitors is much lower. Lighter has $5.39 billion average daily volume over the past month, $1.37 billion in OI as of today, with a OI/volume ratio of 0.181. Aster has an OI/volume ratio of just 0.02.



One key differentiator for Hyperliquid will be how it responds to impeding competitors. In the early days, Ethereum dismissed Solana as a competitor, claiming it was ephemeral activity. That wasn’t the case. Dismissing Lighter and Aster as doing well only because they are being farmed heavily would be a mistake; the tide can shift quickly. Lighter has a strong working product (albeit without the listing velocity and UI of Hyperliquid) and Aster has Binance and CZ’s backing.&nbsp;



Another interesting potential implication here is if we see fee compression for perpetual DEXs. Lighter has 0 fees for both makers and takers. We saw a shift toward zero fees on traditional brokerages and exchanges, as brokerages needed to compete with those offering zero fees. It will be interesting to see if Hyperliquid will have to offer zero fees as well.



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0xResearch Newsletter

Perps competition heats up

Now’s as good a time as any to talk crypto ETFs as more US launches are imminent (even with the latest <a href="https://blockworks.co/news/etf-sec-govt-shutdown">government shutdown</a>).&nbsp;



The anticipated boom of both single-asset and index offerings is set to expand the investor base entering the crypto asset class, industry watchers say.&nbsp;



How do we know we’re set to see more crypto ETFs flood the US market? For one, the SEC finalized its generic listing standards. Those, as you might recall, are set to streamline approvals as long as an ETF proposal meets various <a href="https://blockworks.co/news/crypto-etf-swell">spelled-out requirements</a>.&nbsp;



There are roughly a dozen crypto assets the agency appears ready to allow in the ETF wrapper, per the guidelines — litecoin and solana among them.&nbsp;



A person familiar with the filings told me earlier this month that solana ETF amendments were due Sept. 26. They weren’t kidding.&nbsp;



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">NEW: Bunch of updated filings for the Solana ETF prospectuses. Signs of movement from issuers and the SEC. <a href="https://t.co/2XXaXct6w7">pic.twitter.com/2XXaXct6w7</a>&mdash; James Seyffart (@JSeyff) <a href="https://twitter.com/JSeyff/status/1971689757525868812?ref_src=twsrc%5Etfw">September 26, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



It’d be fair to say the SEC is most focused on the solana ETF proposals right now, another person close to the filings told me Tuesday.



Perhaps we’ll see some more amendments, though the S-1s look pretty close to ready. And <a href="https://x.com/EleanorTerrett/status/1972666249315303665">reports</a> of various 19b-4s soon being withdrawn make sense given exchanges wouldn’t need a rule change to list ETFs holding assets fitting the new standards.&nbsp;



It’s worth noting that 19b-4s could still be filed for proposed ETPs holding assets that fall outside the generic listing standards.&nbsp;



And it’s possible too for the standards to evolve over time. Perhaps, some believe, to not necessarily require an asset to have a regulated futures market — and/or to include prerequisites based on token-specific data.



Whether we are weeks away (or mere days) from the solana ETFs launching remains to be seen. Several issuers are essentially ready to launch, but hesitant to speculate on exactly when the SEC will sign off. Bitwise CIO Matt Hougan told Blockworks’ own Katherine Ross we could see <a href="https://blockworks.co/news/crypto-etf-market-outlook">multiple new crypto ETFs by Halloween</a>.



But beyond timing, what should we expect from investor demand?&nbsp;&nbsp;



Well, US bitcoin ETF inflows stand at $57.3 billion. Ether ETFs have so far attracted $13.7 billion. That inflow difference more or less corresponds to the market caps for BTC (~$2.2 trillion) and ETH (~$500 billion).



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="1000" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image.png?w=1024&amp;h=1024" alt="" class="wp-image-108560" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image.png?w=411 411w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image.png?w=418 418w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image.png?w=350 350w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /></figure>



As far as the demand for any new US crypto ETFs that launch, ETF.com analyst Sumit Roy said assuming the flows will be proportional to market cap is a good starting point.



“But the new coins may actually underperform compared to that,” he added. “That&#8217;s because BTC, and to a lesser extent, ETH, are benefiting from asset allocation flows from certain investors [who say], ‘I&#8217;ll put 2% of my portfolio in bitcoin as a diversifier/hedge.’”



While coins (excluding ETH) won&#8217;t see those flows initially, Roy argued, they may eventually benefit if crypto index funds take off in a bigger way. “Right now, index funds are small relative to funds that hold single assets like BTC,” he said. “If that ever changes, then the flows could be more widely distributed.”



<h2 class="wp-block-heading">A new phase of crypto investing</h2>



Hashdex CIO Samir Kerbage indeed expects that to change. His firm recently got the regulatory go-ahead to add assets to its Nasdaq Crypto Index US ETF (NCIQ). Holding only BTC and ETH when it launched in February, NCIQ now also holds XRP, solana, stellar and cardano.&nbsp;



The index NCIQ tracks is designed to evolve in order to best represent the broad crypto market.&nbsp;



“There’s a chance that in five to 10 years from now, this index could have 20, 50, 100 or 200 assets,” Kerbage told me.



Hashdex’s broader goal is helping financial advisers make sense of the crypto ecosystem (beyond just BTC and ETH) by addressing historical pain points related to allocating to the space.



“There are going to be multiple single-asset ETPs, but most importantly, we’re going to start to see passive, index, benchmark and active strategies,” Kerbage explained. “So a lot of variations on top of this asset class, and this is how an asset class evolves.”



Hashdex’s thinking goes that advisers and pension funds don’t want to try to pick individual winners.&nbsp;



“They don’t do this for equities and they’re not going to do this for crypto,” Kerbage said. “They’re going to pick a benchmark.”&nbsp;



All’s to say, we’re about to enter an entirely new phase of crypto exposure optionality. Investors hungry for them will just have to wait a teensy bit longer.



A modified version of this article appeared in yesterday&#8217;s edition of the <a href="https://blockworks.co/newsletter/forward-guidance">Forward Guidance newsletter</a>. 



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<li><a href="https://blockworks.co/newsletter/empire">Empire</a>: Crypto news and analysis to start your day.</li>



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Upcoming ETFs, evolving indexes to mark new chapter for crypto investing  

CoinShares International Limited announced Wednesday that it will acquire Bastion Asset Management, a London-based alternative investment manager focused on digital assets.



The transaction, subject to approval by the UK Financial Conduct Authority, will <a href="https://coinshares.com/us/news/coinshares-set-to-acquire-bastion-asset-management/?utm_source=twitter&amp;utm_medium=social&amp;utm_campaign=News_Corporate_0925&amp;utm_content=coinshares-set-to-acquire-bastion-asset-management">integrate</a> Bastion’s strategies, team, and expertise into CoinShares’ broader asset management platform.&nbsp;



CoinShares, headquartered in Jersey with roughly $10 billion in assets under management, said the move enhances its actively managed offerings as it continues to position itself as a comprehensive provider of digital asset investment solutions.



The acquisition aligns with CoinShares’ strategy of combining its established passive products, such as exchange-traded products (ETPs), with more sophisticated actively managed strategies aimed at institutional investors. Bastion brings a market-neutral, quantitative alpha approach that has been deployed over the past three years across a growing client base.



Following the acquisition, Bastion co-founders Philip Scott and Fred Desobry will join CoinShares.



CoinShares’ announcement highlighted that the deal supports its US growth strategy. With the firm already holding registered Investment Advisor status under the Investment Company Act of 1940, the integration of Bastion’s expertise will allow the creation of institutional-grade actively managed funds tailored to US investors.



This is a developing story.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



This article was generated with the assistance of AI and reviewed by editor&nbsp;<a href="mailto:jeffrey@blockworks.co" target="_blank" rel="noreferrer noopener">Jeffrey Albus</a>&nbsp;before publication.



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Get the news in your inbox. Explore Blockworks newsletters:



<ul class="wp-block-list">
<li><a href="https://blockworks.co/newsletter/the-breakdown">The Breakdown</a>: Decoding crypto and the markets. Daily.</li>



<li><a href="https://blockworks.co/newsletter/0xresearch">0xResearch</a>: Alpha in your inbox. Think like an analyst. </li>



<li><a href="https://blockworks.co/newsletter/empire">Empire</a>: Crypto news and analysis to start your day.</li>



<li><a href="https://blockworks.co/newsletter/forward-guidance">Forward Guidance</a>: The intersection of crypto, macro and policy.</li>



<li><a href="https://blockworks.co/newsletter/thedrop">The Drop</a>: Apps, games, memes and more.</li>



<li><a href="https://blockworks.co/newsletter/lightspeed">Lightspeed</a>: All things Solana.</li>



<li><a href="https://blockworks.co/newsletter/supply-shock">Supply Shock</a>: Bitcoin, bitcoin, bitcoin.</li>
</ul>

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