Good Morning,

Here's a quick preview of today’s content: Brazil sentences 14 in $95M crypto money laundering case, UK considers ban on crypto donations to political parties, CME launches Bitcoin volatility index, Bitcoin miners face worst profitability crunch on record, IBIT among most-traded ETFs, and so much more

Happy Wednesday - Let’s dive in.

Market Snapshot

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• Crypto markets rebound as BTC reclaims $90K and ETF demand surges

  • Bitcoin has its strongest rally since May, reversing the weekend plunge and lifting the total market cap back over $3T

  • XRP and SOL lead altcoin gains as majors regain ground; ETH, and BNB also notch solid advances

  • ETF momentum accelerates under the “Vanguard effect,” with XRP ETF inflows topping $756M

  • Implied-volatility spread between BTC and the S&P 500 widens again, signaling shifting macro risk pricing

• Analysts say markets “appear less worried” as sentiment stabilizes and inflows return

Prediction Markets

• Bettors on Polymarket are predicting #1 searched person on Google this year?

• Track and trade live odds on any event, only on Polymarket

Headline Roundup
^{_{The major headlines driving crypto markets}}

• Bank of America endorses 4% crypto allocation to portfolios (DC)

• Strategy CEO says reserve reduces pressure to sell Bitcoin (BBG)

• BlackRock execs say tokenization could redraw market plumbing (DC)

• American Bitcoin plunges 40% on heavy volume (CD)

• Bitcoin miners face worst profitability crunch on record (TB)

• IBIT among most-traded ETFs (CD)

• Harvard’s wager on Bitcoin came right before bust (WSJ)

• Strategy trading explodes to highest in a year (CD)

• Sam Bankman-Fried praises Trump's pardon of ex-Honduran president (TB)

• Ripple’s RLUSD stablecoin tops $1B on Ethereum (TD)

• Elon Musk's X Money searches for tech lead (TB)

• Kalshi becomes CNN's official partner (TB)

• Grayscale predicts new BTC highs in 2026 (TB)

• Cantor Fitzgerald reveals Solana ETF holdings (DC)

• AI investment drives global growth through 2026 (CD)

• Iren sells $2.3B convertible notes (CD)

• DAT boom stalls as flows drop to $1.3B (CT)

• Bybit, Mantle, and Aave partner to bring DeFi liquidity on-chain (CD)

• Concordium adds ID checks to stablecoin payments (CT)

• Terminal Finance shuts down after converge fails (TD)

• Monad briefly dips below ICO price (TD)

• Taurus adds staking to its custody system (CT)

• 35 key crypto hires, moves and exits (TB)

• Aave DAO mulls pulling back multichain strategy (TB)

• Astria Network sunsets shared sequencer network (TB)

• Sanctioned lender Huione shuts down branches (DC)

• Cango posts 60% Q3 revenue jump (TB)

• Christmas Solana meme coin wakes from hibernation (DC)

Venture Capital

• Kalshi closes its $1B financing round, pushing its valuation to $11B led by Paradigm, with participation from veteran VC firms(CD)

• Decentralized AI compute network Gonka raises $50M from Bitfury (BW)

• RWA tokenization platform OpenEden raises an undisclosed round backed by Ripple and major institutions (CT)

M&A Announcements

• Kraken reaches a deal to purchase tokenized stocks specialist Backed Finance (TB)

• Sonnet BioTherapeutics Inc.'s merger to become a DAT has finally been approved (TB)

Launches

• Myriad launches prediction markets with Trust Wallet (DC)

• CME launches Bitcoin volatility index (CT)

• Ethereum devs push ZK system toward deployment (CD)

• Bitcoin miner Canaan plans green-energy mining platform (CT)

• RedotPay taps Ripple to roll out Nigerian crypto cashouts (CT)

• Stable unveils tokenomics ahead of mainnet (TB)

• LBank launches VIP program (CD)

• Unlimit debuts Stable.com, a clearing house for stablecoins (CD)

• Mt Pelerin launches the crypto IBAN (CD)

Regulation

• Atkins says SEC has authority to drive crypto rules forward (CT)

• South Korea's ruling party issues ultimatum on stablecoin bill (TB)

• Group of EU banks push for a euro-pegged stablecoin (CT)

• Russia mulls relaxing crypto rules (CT)

• UK considers ban on crypto donations to political parties (CT)

• Lawmakers stumble on stablecoin terms as Congress grills Fed (CT)

• UK passes property laws for crypto (CT)

• Poland's President vetoes MiCA bill (CD)

Cybersecurity

• Brazil sentences 14 in $95M crypto money laundering case (CD)

• Fraudster jailed in UK after converting $650K company funds to crypto (DC)

• Justice dept seizes domain linked to crypto scam compound (DC)

• AI models demonstrate human capability in contracts exploit (DC)

Extra Reads

• Ethereum's Fusaka upgrade is expected to be implemented, including key features like PeerDAS, which changes how the network collects and verifies data from layer-2 networks - Here’s what to expect from Ethereum’s Fusaka upgrade

• Texas’ Bitcoin reserve initiative signals a shift in how governments may approach crypto and how it could influence the financial system at a macro level - Here’s why Texas’ reserve signals a shift in crypto policy

Chart of the Day

Ethereum open interest spiked +13% to $1.97B

Meme Dump

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*DISCLAIMER: Investment advice provided by Autopilot advisers LLC, an SEC registered investment advisor. Past performance does not guarantee future results. Investing carries risks including the risk of the loss of principal. Performance doesn’t include fees. See more here.