Quick Take

• The net asset value (NAV) premium (or discount) for digital asset treasury (DAT) companies corrected from their highs. Crypto.com Exchange integrated with Talos to enhance trading offerings. Citi plans to launch crypto custody services by 2026.
• US spot BTC ETFs had a net outflow of US$1.2 billion last week, compared to a net inflow of $2.7 billion the week before. Spot ETH ETFs saw a net outflow of $312 million in the same period, down from a net inflow of $488 million the week before.
• On the macro side, US Federal Reserve Chair Powell indicated that the Fed is nearing its goal of having ‘ample’ reserves in the banking system, when it will stop reducing bond holdings. US President Donald Trump declared a trade war with China. The latest CME FedWatch Tool indicated a 99% probability of a rate cut in October, compared to 98% the week before.
• Notable updates: Ethereum’s Fusaka upgrade was activated on the Sepolia testnet, Ripple is reportedly fundraising for $1 billion to purchase XRP to hold in a digital asset treasury, Uniswap added support for Solana on its web app.
• Notable events in the coming week: US Consumer Price Index and S&P Global Manufacturing & Services PMI.

Weekly Market Index

According to our research dashboard, all three indices were down last week. Price, volume, and volatility indices were down by -3.97%, -14.64%, and -44.38%, respectively. BTC’s and ETH’s prices decreased by -5.7% and -4.2%, respectively. Volatility decrease was led by FIL (-68.88%), ATOM (-68.31%), and DOT (-62.30%).

Price decreases coincided with US President Donald Trump declaring a trade war with China, as well as increasing signs of credit stress in the US regional banking sector. Trump subsequently confirmed a meeting with China’s president at the Asia-Pacific Economic Cooperation (APEC) summit in South Korea, set to begin on 31 October.

Additionally, 205 public companies have collectively acquired over 1 million BTC (around US$113 billion), accounting for nearly 5% of BTC’s total supply.

Chart of the Week

The NAV premium (or discount) for DAT companies, which measures the ratio calculated by the companies’ market capitalisation divided by the value of the crypto assets they hold, went through a drastic correction recently. Currently, some DAT companies are trading near or below their net crypto asset value.

Metaplanet’s (MTPLF) ratio dropped from a high of 9.9 (premium to NAV) in February to 0.9 (discount to NAV) on 18 October. Strategy’s (MSTR) ratio was relatively stable, but still dropped from 2.1 in May to 1.2 on 18 October. ETH treasury company Bitmine (BMNR) saw its ratio drop from 2.3 in August to 1.3 last week. This correction in DAT companies’ market valuation is potentially a response to inflated valuations, macro economy, and tightening regulation. This correction has brought DAT companies’ market capitalisations closer in line with their actual crypto reserves.

Weekly Performance

Top-cap tokens decreased in prices last week. BTC and ETH decreased by -5.7% and -4.2%, respectively. US President Donald Trump declared a trade war with China and the US regional banking sector is showing increasing signs of credit stress, which coincided with crypto’s price decrease. 

All key categories decreased in market capitalisation in the last seven days, with Layer-2 and Artificial Intelligence experiencing the largest decreases.

News Highlights

Company News

• Crypto.com Exchange integrates with Talos to boost liquidity and execution tools for crypto trading for institutional clients. This integration is available now for eligible institutional investors in select jurisdictions.

Adoption

• Citi plans to launch crypto custody services by 2026, and is developing solutions for fiat-to-crypto ramps and tokenised deposits. The bank is also exploring stablecoin issuance through backing stablecoin firm BVNK.
• S&P Global partnered with Chainlink to provide on-chain access to stablecoin stability assessments (SSAs), which enables S&P Global Ratings to provide risk assessments to stablecoins from 1 (very strong) to 5 (weak) based on stability of peg to fiat currencies.
• Japan’s banks, Mitsubishi UFJ Financial Group (MUFG), Bank Sumitomo Mitsui Banking Corp. (SMBC) and Mizuho Bank, reportedly plan to issue a yen-pegged stablecoin. This aims to reduce transaction costs and help with settlements. 
• Ant Group’s blockchain division Ant Digital launched Jovay, an Ethereum-based Layer-2 blockchain that aims to integrate real-world assets on-chain. According to its technical paper, the blockchain aims for 100,000 transactions per second.
• New York City Mayor Eric Adams announced the establishment of an Office of Digital Assets and Blockchain Technology, aiming to foster innovation and embrace future technologies.
• Sony Bank applied for a US national trust bank charter with the Office of the Comptroller of the Currency (OCC) to issue and manage stablecoins in the US.

Regulation

• Japan’s Financial Services Agency may allow banks to hold bitcoin and other crypto assets as well as operate licensed exchanges, a move that would mark a huge step toward institutional adoption and regulatory clarity for digital assets in Japan.
• Japan's regulators are considering banning crypto insider trading with new laws planned for 2026. The Securities and Exchange Surveillance Commission will be allowed to investigate suspected violations.
• China’s tech giants, including Ant Group and JD.com, halted their stablecoin initiatives in Hong Kong after Chinese regulators expressed concerns about privately controlled digital currencies.
• Kenya approved a bill to regulate bitcoin and other cryptocurrencies, setting up regulatory frameworks for stablecoins and other digital assets. Additionally, Ghana’s central bank also aims to have crypto regulations by the end of the year.

Investment Vehicles

• BlackRock revamped its money market fund to comply with the US GENIUS Act. The fund, BlackRock Select Treasury Based Liquidity Fund (BSTBL), will help manage reserves for companies with USD stablecoins.
• WisdomTree launched a physically backed Stellar Lumens (XLM) ETP across several European exchanges, including SIX Swiss Exchange and Euronext in Paris and Amsterdam, as well as a planned listing in Deutsche Börse Xetra.
• CME Group introduced CFTC-regulated options on Solana and XRP futures for institutional traders.
• France’s Lightning Stock Exchange (Lise) is planning to launch a tokenised equity exchange for small and medium enterprises. This came after Lise received a DLT trading and settlement (TSS) license from the Prudential Supervision and Resolution Authority (ACPR).

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