Good Morning,

Here's a quick preview of today’s content: Morgan Stanley makes a huge crypto venture investment, WLFI looks to debit cards, Bybit wants to go 24/7, crypto market structure bill to pass by EOY (possibly), FTX Recovery Trust sues Bitcoin mining firm Genesis Digital Assets Limited in bankruptcy court, and so much more

We got loads of VC activity so grab a cup of coffee!

Happy Wednesday - Let’s dive in

Market Snapshot

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• Bitcoin and Ethereum ETFs recorded combined outflows of $439.1M, with BTC funds losing $363.1M and ETH products shedding $76M

  • The market saw $376.20M in crypto liquidations in the last 24 hours

  • Total market cap is at about $4T, +0.4% higher than yesterday

  • BTC is holding just under $113,000, and now down about -2% on the week, while ETH is also flat around $4,186, though ETH’s weekly losses are a starker -5.8%

• Futures positioning has been flushed, and liquidity has returned after last week’s Fed funding cut

• Analysts view the outflows as profit-taking and de-leveraging, with Friday's PCE report seen as pivotal for near-term flows

Market Predictions

• Bettors on Kalshi are predicting will Donald Trump launch an NFT this year?

• Trade your predictions on a range of events, only on Kalshi

• Sign up with code LIT and get a $20 bonus when you trade $100

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

• Founder of Blockworks gave his full crypto IPO watchlist- see list here

• Morgan Stanley plans to offer crypto trading on E*Trade early next year (DC)

• Startup Y Combinator collabs with Base and Coinbase Ventures to create the next wave of “Fintech 3.0” companies (CD)

• Fold partners with Stripe and Visa to power its forthcoming Fold Bitcoin Credit Card (BM)

• Spot Ethereum ETF volumes reach 15% of total spot market volume (TB)

• BlackRock’s crypto ETFs bring in $260M in revenue (CT)

• Crypto’s rich list now comprises 36 billionaires and 241,700 millionaires (TB)

• Binance co-founder CZ refutes reports that YZi Labs is considering opening up to outside investors (TB)

• World Liberty Financial to launch its own debit card ‘very soon’ (TB)

• DEX Uniswap nears $1T in yearly volumes (TD)

• Aster, a perp DEX, is currently valued at over $15B (TB)

• Ethereum co-founder Vitalik Buterin pushes back against claims that Base’s sequencer makes it operate like a centralized exchange (TB)

• Samsung partners with science protocol Galeon to integrate AI features into its ultrasound devices (CT)

• Forward Industries wants to tokenize its Nasdaq shares on Solana (CT)

• Coinbase’s Ethereum Layer 2 network Base reaches new ATH in TVL of $5.1B (TD)

• U.S. judge denies Justin Sun’s bid to block Bloomberg over crypto holdings (CT)

• Exodus Movement partners with Crypto.com to manage a portion of its crypto assets (FM)

• Australia-based Fitell Corporation secures a $100M credit line to accumulate Solana (TB)

• Crypto firm Boerse Stuttgart Digital opens a hub in Madrid, its eighth European office (CD)

• Lamina1, a blockchain content platform, partners with Linea to bring creator-owned media to Ethereum (CT)

• Jack Dishman, founder of token launchpad Clanker, rejects an acquisition offer from Ethereum wallet Rainbow (TB)

Venture Capital

• Morgan Stanley invests in crypto infrastructure firm Zerohash’s $104M Series D-2 raise, which was led by Interactive Brokers (TB)

• Tether in talks with investors to raise $20B at around a $500B valuation (TB)

• UK blockchain startup Fnality secures $136M in a Series C led by WisdomTree, Bank of America, Citi, and more (TB)

• Archetype, a crypto VC firm, raises $100M from institutional investors, pensions, sovereign wealth funds and endowments (BW)

• Crypto infrastructure startup Stablecore raises $20M in a round led by Norwest (PS)

• Crypto startup Raiku raises $13.5M across seed rounds from Pantera Capital, Jump Crypto, and Lightspeed Faction (TB)

• Crypto intelligence firm Cloudburst Technologies raises $7M in a Series A round led by Borderless Capital (CD)

M&A Announcements

• OSL Group has acquired Koinsayang, a crypto exchange based in Indonesia (CC)

Launches

• Bybit introduces 24/5 stock CFD trading on its TradFi platform (FM)

• DEX infrastructure Orderly Network introduces a platform for users to launch their own perp DEXs (CD)

• Ripple’s RLUSD stablecoin debuts into Securitize’s platform (DC)

• Swarm, a regulated decentralized finance platform, to launch nine tokenized equities on Plasma (TD)

• Bubblemaps, a blockchain analytics platform, launches a platform that rewards users with its BMT token (TB)

• Corporate Bitcoin holder, OranjeBTC, to debut on Brazil’s B3 (BM)

• Kazakhstan launches Evo stablecoin with Solana and Mastercard (CT) 

• Coinbase and Cloudflare announce the creation of the x402, a protocol embedding payments into web interactions (BW)

• The Liquidium Foundation releases a liquid staking framework for Rune-based tokens (CS)

• Bullish Europe lists Société Générale-Forge’s USDCV stablecoin (CT)

Regulation

• White House Crypto Council’s Patrick Witt says he expects the crypto market structure bill to pass by EOY (TB)

• SEC Chair Paul Atkins says he hopes to have an innovation exemption in place by the end of 2025 (TB)

• U.S. Senator Cynthia Lummis calls for stronger safeguards around crypto ATMs (DC)

• The CFTC pushes an initiative on tokenized-asset collateral involving stablecoins (CD)

• Tokenization firm tZERO Group receives approval from FINRA to facilitate secondary trading in corporate debt securities (TB)

Cybersecurity

• FTX Recovery Trust sues Bitcoin mining firm Genesis Digital Assets Limited in bankruptcy court (TB)

• Thai authorities bust a $15M criminal enterprise that victimized over 870 South Koreans (DC)

• UXLINK, a project that claims to be a Web3 social platform, suffers a security breach involving its multisig wallet (TB)

• Ontario kidnapper who demanded $1M Bitcoin ransom sentenced to 13 years (DC)

• Shuttered crypto exchange ShapeShift to pay $750k to settle sanctions violations from the U.S. Treasury (DC)

Extra Reads

• Crypto market data shows that cumulative returns in the Asian session are outpacing those in the U.S. and EU - Here's how traders in Asia will drive the next phase of a Bitcoin bull run

• Centralized deepfake detectors are failing against crypto scams, and blockchain detection networks offer the only scalable defense against fraud - Here's how blockchain networks can stop crypto deepfake scams

• Bitcoin suffered one of the largest liquidation events this year, and options traders are positioning with a bearish skew in anticipation for a continuation of the downtrend - Here's why Bitcoin options traders are positioning bearish in the market

Chart of the Day

BTC futures open interest dropped -4.5% from $44.8B to $42.8B

Meme Dump

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