Quick Take

• Ether exchange net flows (30-day moving average) hit the lowest since 2023; Crypto.com obtains CFTC margined derivatives licenses; Exodus Movement selects Crypto.com Custody as digital asset custodian.
• US spot BTC ETFs had a net outflow of US$898 million last week, following a net inflow of $887 million the week before. Spot ETH ETFs saw a net outflow of $796 million in the same period, the largest weekly net outflow since inception.
• On the macro side, S&P Global US PMI Composite Output Index fell for a second consecutive month, from 54.6 in August to 53.6 in September, with both manufacturing and services sectors reporting weaker expansions. Core Personal Consumption Expenditures rose 2.9% annually in August and 0.2% for the month, in line with Dow Jones consensus forecast. Fed Chair Powell noted that equity prices are 'fairly highly valued'. The latest CME FedWatch Tool showed an 89% probability of a rate cut in October, compared to 92% the week before.
• Notable updates: Tether reportedly raising up to $20 billion that could value the company as high as $500 billion; Hyperliquid founder announces HIP-3 infrastructure for mainnet; Ripple and Securitize allow holders of BUIDL and VBILL to exchange their shares for RLUSD.
• Notable events in the coming week: US ISM Manufacturing & Services PMIs, US Nonfarm Payrolls, and Australia’s RBA Interest Rate Decision.

Weekly Market Index

Price index was down by -6.42% last week. Volume and volatility indices were up by +19.30%, and +37.34% respectively. Volatility increase was led by ETH (+80.57%) and XRP (+50.41%).

Tokens in our index dropped in prices last week. This coincided with net outflows from US spot BTC and ETH ETFs, as well as crypto liquidations primarily driven by long positions. SOL (-14.50%) and NEAR (-12.98%) led the drop.

Chart of the Week

Ethereum exchange net flows (30-day moving average) hit the lowest level since 2023, reaching a net outflow of 57,950 ETH on 22 September.

Exchange net flows are calculated as inflows minus outflows. Accelerating net outflows may indicate a shift towards other custodial solutions or DeFi deployment, reducing immediate selling pressure. This trend coincided with institutional accumulation of ETH via spot ETH ETFs and digital asset treasuries.

Weekly Performance

Top-cap tokens decreased in prices last week. BTC and ETH decreased by -2.7% and -7.0%, respectively.

All key categories decreased in market capitalisation in the last seven days, led by Meme.

News Highlights

Crypto.com News 

• Crypto.com obtained approval from the US Commodity Futures Trading Commission (CFTC) for derivatives licenses in the US for margined derivatives. Specifically, Crypto.com | Derivatives North America (CDNA) is now approved to offer cleared margined derivatives on cryptocurrencies and other asset classes with an amendment to its Derivatives Clearinghouse Organisation (DCO) license, building on existing capabilities to offer fully collateralised derivatives through its prediction markets.
• Exodus Movement selected Crypto.com Custody Trust Company as its digital asset custodian. This partnership enhances security and regulatory safeguards for Exodus.

Adoption

• Morgan Stanley will enable Bitcoin, Ethereum, and Solana trading via its online brokerage platform E*Trade in the first half of 2026. This will give clients access to digitised assets, traditional assets and crypto in the same ecosystem.
• The European Central Bank (ECB) set a mid-2029 launch target for its digital euro, the proposed central bank digital currency. It is expected to function as an electronic version of the euro for daily transactions.
• Nine major European banks,including UniCredit and ING, are developing a euro-pegged stablecoin compliant with Markets in Crypto-Assets (MiCA) regulation. It is expected to be issued in the second half of 2026 as a digitised European payment standard.
• Vanguard is reportedly considering crypto ETF access for brokerage clients. This marks a major shift to its stance on digital assets.
• UK Finance, representing over 300 financial services firms in the UK, launched a project for tokenised sterling deposit. The pilot is expected to run till mid-2026, and is in collaboration with Barclays, HSBC, Lloyds Banking Group, NatWest, Nationwide and Santander.
• The US State of Ohio approved crypto payments for state services, making it the fourth US state to accept crypto for government fees. 
• China opened a digital yuan operations center in Shanghai, overseeing platforms for cross-border payment, blockchain services and digital assets to drive the development of digital yuan.
• Swift is experimenting with migrating its messaging system on-chain using Ethereum Layer-2 Linea. The initiative involves multiple banks including BNY and BNP Paribas.

Regulation

• SEC Chair Atkins aims to roll out an 'innovation exemption' for certain digital assets by year-end, as part of ‘Project Crypto’ to lower regulatory burdens for the sector.
• The US Commodity Futures Trading Commission (CFTC) is launching an initiative to allow tokenised collateral, including stablecoins, in derivatives markets. The CFTC is currently inviting stakeholders to submit suggestions on the initiative.
• Australia unveiled draft legislation to tighten oversight of crypto service providers, with new licensing requirements for ‘digital asset platform’ and ‘tokenised custody platform’ service providers. The government is currently seeking feedback from stakeholders.

Investment Vehicles

• Bitwise filed for a Hyperliquid ETF, the first proposal aimed to provide exposure to HYPE.
• REX Shares and Osprey Funds are launching the first Ethereum staking ETF in the US under a 1940 Act ETF structure. The ETF provides exposure to spot Ether along with staking yields.
• Hashdex expanded its Crypto Index Fund (NCIQ) to include XRP, SOL, and XLM under new generic listing rule changes from the SEC. The Fund currently includes five cryptocurrencies including bitcoin and Ether.
• BlackRock filed to register a Delaware trust company for its proposed Bitcoin Premium Income ETF, building covered call options on bitcoin futures to generate yield.
• 21Shares Dogecoin ETF was listed on the Depository Trust & Clearing Corporation (DTCC) with the ticker TDOG. This indicates the set up of technical systems essential for trading, and does not confirm SEC approval.

Others

• Tether is reportedly raising up to $20 billion in a fundraising round that could value the company at up to $500 billion. SoftBank and ARK are among potential investors considering the investment.

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