Falcon USD

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The weekend is just about here, and bitcoin is flirting with its all-time high.



With the government shutdown delaying new potential crypto ETF launches, we can focus today on the US bitcoin funds that have seen ~$2.2 billion of inflows over the last four trading days.



(This is part of a broader “debasement trade” that analysts at a TradFi giant are only now starting to talk about. You’ll have to forgive them for not hearing about this when you did.)



When I wrote about the crypto market outlook for October, bitcoin was in the $117,500 range. It has since surged above $123,000 — sitting 1% off its all-time high at midday.



As many have turned attention to the expected launches of crypto ETFs holding SOL, LTC, XRP, etc., the <a href="http://google.com/search?q=blockworks+shutdown&amp;sca_esv=7c4197be7832523f&amp;rlz=1C5CHFA_enUS1069US1072&amp;ei=kPPfaPacC5Ki0PEP-PrzqAI&amp;ved=0ahUKEwj2pOvRs4iQAxUSETQIHXj9HCUQ4dUDCBA&amp;uact=5&amp;oq=blockworks+shutdown&amp;gs_lp=Egxnd3Mtd2l6LXNlcnAiE2Jsb2Nrd29ya3Mgc2h1dGRvd24yBRAhGKABMgUQIRigATIFECEYoAEyBRAhGKABSLEEUGBY0QNwAHgCkAEAmAGSAqABjQWqAQUwLjEuMrgBA8gBAPgBAZgCA6ACjwPCAgQQABhHmAMA4gMFEgExIECIBgGQBgiSBwUxLjEuMaAH-wyyBwUwLjEuMbgHhQPCBwUwLjIuMcgHDA&amp;sclient=gws-wiz-serp">government shutdown</a> (and therefore SEC pause) gives us a chance to check back on the classics.&nbsp;&nbsp;



Spot bitcoin ETF inflows rebounded in September after the products bled $750 million in August. Though ether ETFs had stolen the show in August, capital flowing to those funds <a href="https://blockworks.co/news/ethereum-etf-momentum-collapses">slowed mightily</a> last month.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="909" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-12.png?w=1024&amp;h=1024" alt="" class="wp-image-108670" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-12.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-12.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-12.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-12.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-12.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-12.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-12.png?w=459 459w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-12.png?w=385 385w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-12.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /></figure>



The above chart doesn’t include Wednesday and Thursday, during which bitcoin ETFs reeled in another $676 million and $627 million, respectively — their highest inflow levels in three weeks.&nbsp;



On the odds of <a href="https://blockworks.co/news/btc-uptober-factors">another “Uptober”</a> playing out for BTC, 21Shares’ Matt Mena had noted the expected Fed rate cut later this month as a major tailwind. Bitcoin can benefit as both a “digital gold” hedge in times of fiscal uncertainty and as a high-beta risk asset when liquidity returns, he explained.&nbsp;



Felix mentioned in <a href="https://forward-guidance.beehiiv.com/p/shut-er-down">yesterday’s newsletter</a> how the ongoing government shutdown (and the delay of jobs data, for example) forces market watchers to lean on recent private payrolls data that showed labor market weakness. Essentially that means “the continuation of the rate-cutting cycle is a lock,” he explained.&nbsp;



Beyond the expected cut, Mena mentioned ETF flows as another reason bitcoin looks well-positioned to retest $124,000 and potentially reach between $140,000 and $150,000 before 2025 is through. The broader market could follow suit, he added.&nbsp;



“Total crypto market cap is poised to challenge the $5 trillion threshold — less than 25% above current levels,” Mena told me earlier this week. “That’s an achievable move considering Q4 2024 saw a 63% surge, with market cap climbing from $2.2 trillion in October to $3.6 trillion by year-end.”



JPMorgan analysts recently went on record saying bitcoin could reach $165,000 by the end of 2025 — noting the asset is undervalued relative to volatility-adjusted gold levels.



<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">Per this CNBC reporting, the strategy favoring gold and Bitcoin now has a name: JP Morgan analysts are calling it &quot;the debasement trade.&quot;<a href="https://twitter.com/hashtag/economy?src=hash&amp;ref_src=twsrc%5Etfw">#economy</a> <a href="https://twitter.com/hashtag/gold?src=hash&amp;ref_src=twsrc%5Etfw">#gold</a> <a href="https://twitter.com/hashtag/bitcoin?src=hash&amp;ref_src=twsrc%5Etfw">#bitcoin</a> <a href="https://twitter.com/jpmorgan?ref_src=twsrc%5Etfw">@jpmorgan</a> <a href="https://twitter.com/CNBC?ref_src=twsrc%5Etfw">@CNBC</a> <a href="https://t.co/tl1BOMCgz8">pic.twitter.com/tl1BOMCgz8</a>&mdash; Mohamed A. El-Erian (@elerianm) <a href="https://twitter.com/elerianm/status/1973755997173989595?ref_src=twsrc%5Etfw">October 2, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
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As we get set to see a <a href="https://blockworks.co/news/etfs-indexes-crypto-investing">widely expanding array</a> of crypto ETFs, it’s important to remember the role bitcoin plays in a portfolio is different from that of other crypto assets. I’m not telling bitcoin maxis anything they don’t already believe.&nbsp;



Remember what ETF.com analyst Sumit Roy told me about potential demand for the upcoming spot crypto ETFs? They won’t necessarily see flows from the investors who put a fraction of their wealth (2%, let’s say) in BTC as a diversifier and/or hedge.



This ETF-focused Oct. 15 panel at <a href="https://blockworks.co/event/digital-asset-summit-2025-london/home">DAS London</a> with execs from BlackRock and 21Shares is an extra timely one.



<figure class="wp-block-image size-full is-resized"><img loading="lazy" decoding="async" width="1000" height="628" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-11.png" alt="" class="wp-image-108669" style="width:572px;height:auto" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-11.png?w=1000 1000w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-11.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-11.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-11.png?w=409 409w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-11.png?w=416 416w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-11.png?w=349 349w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-11.png?w=80 80w" sizes="auto, (max-width: 1000px) 100vw, 1000px" /></figure>



Another possible tailwind for bitcoin ETFs would be a brokerage firm like Vanguard allowing clients to trade them. This has come up again after a recent <a href="https://www.bloomberg.com/news/articles/2025-09-29/vanguard-weighs-allowing-trading-of-crypto-etfs-a-big-reversal">report</a> that the index fund giant was weighing that possibility. While Vanguard hasn’t responded to me about this report, it’s historically made its crypto stance (or should I say <a href="https://blockworks.co/news/tradfi-crypto-vanguard-stands-apart-bitcoin">anti-crypto stance</a>) very clear. A Vanguard spokesperson has previously told me the firm “continuously evaluates” its brokerage offerings, so this report doesn’t seem too different from that language. Many believe, of course, Vanguard will ultimately cave.&nbsp;



I’ve rambled enough for a Friday. If you’re in a place with seasons, go enjoy this autumn weather.&nbsp;&nbsp;



— Ben Strack



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<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>



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

ETF inflows, ‘debasement trade’ fuel bitcoin’s climb above $123K

Samsung Electronics has partnered with Coinbase to expand cryptocurrency access to more than 75 million Galaxy users in the United States, with plans to extend the effort globally.



Beginning October 3, Samsung Wallet users can access Coinbase One, the exchange’s premium membership program, directly from their devices. The <a href="https://www.coinbase.com/blog/Samsung-taps-Coinbase-to-bring-crypto-to-more-than-75-million-Galaxy-users">collaboration</a> aims to simplify crypto adoption by combining Samsung’s mobile reach with Coinbase’s trading and custody infrastructure.



Coinbase One offers zero trading fees on certain transactions, enhanced staking rewards, dedicated customer support, and limited account protection against unauthorized transfers. A Coinbase debit card, allowing crypto-based payments and rewards, is also tied to the service.



The integration builds on Coinbase’s recent push into mainstream payment tools, including a live rollout of its Samsung Pay feature for US users.



“Together with Samsung, we’re pairing their global scale with Coinbase’s trusted platform to deliver the best value for people to access crypto,” said Shan Aggarwal, Chief Business Officer at Coinbase.



Drew Blackard, Senior Vice President of Mobile Product Management at Samsung Electronics America, added “Samsung Wallet is a trusted tool to millions of Galaxy users, and we’re continually working to find creative ways to enhance the experience with added functionality,” going on to call Coinbase an “ideal partner” in achieving this mission.



This marks one of the largest exchange–hardware partnerships since Apple Pay’s limited crypto wallet integrations.



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/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>

Coinbase

Galaxy users gain Coinbase One access through Samsung Wallet

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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<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>

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



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Capitol Gains

Capitol Gains: Shutdown blues slow crypto work

Macauley Peterson

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.



<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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</ul>

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.



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



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</ul>

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.



<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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<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>

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.



<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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</ul>

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.



<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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</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

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.



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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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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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