Good Morning,

Here's a quick preview of today’s content: Coinbase CEO wants to go full AI, Justin Sun’s wallet gets mysteriously frozen, Kraken makes a huge acquisition, the Fed Reserve will hold a very important meeting on crypto, covered calls are coming to crypto, Wyoming chooses Hedera, and so much more.

HAPPY FRIDAY - Let’s dive in.

Market Snapshot

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• Bitcoin ETFs recorded two consecutive days of inflows exceeding $300M, totaling $633.3M across both sessions

  • BTC dropped -2.4% over the past 24 hours to $109,500, bringing its weekly losses to -3.2%

  • ETH is down -4% on the day to $4,309, now down -6% over the week

• Positioning in the derivatives market has a bearish feel, with more than $4.5B in crypto options set to expire on Deribit on Friday

Market Predictions

• Bettors on Kalshi are predicting if the Kansas City Chiefs are going to beat the LA Chargers

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

• A wallet linked to Tron founder Justin Sun is blacklisted by World Liberty Financial after moving $9M in WLFI tokens (DC)

• Coinbase bumped up the max leverage from 20x to 50x on international perpetual futures (X)

• American Bitcoin stock drops below its IPO price just one day after debuting on the Nasdaq (CD)

• Coinbase CEO Brian Armstrong wants half of all code at the exchange to be AI-generated (DC)

• Publicly traded companies collectively hold over 1M BTC (CD)

• Bitcoin traders purchase bearish options as a hedge against potential reports that could lead to a sell-off (CD)

• World Liberty Financial’s governance token hits a new low price (DC)

• Ether’s seven-day CEX spot volume edges past Bitcoin’s for the first time in seven years (TB)

• India and the U.S. lead crypto adoption globally (TB)

• CFTC Commissioner Kristin Johnson warns that prediction markets have "too few guardrails" (DC)

• Nasdaq aims to put constraints on the rush of companies looking to raise money for crypto treasury strategies (CD)

• Australia's tax office reports self-managed retirement funds have 4% less crypto than last year (CT)

• DeFi TVL surges 41% so far in Q3, surpassing $160B (TD)

• Trading volume on Ethereum’s DEX rose 45% to $74B (TD)

• Whales increase their ETH holdings by 14% in the past five months (DC)

• Figma reveals it now holds $91M in Bitcoin (CD)

• CARDS token soars 286% as traders flock to tokenized Pokémon card platform (TD)

• REX-Osprey poised to bring first Dogecoin ETF to market next week (TB)

• A Bitcoin address holding over $50M moves some of its stash (DC)

• A weakening U.S. dollar is creating a bullish narrative for Bitcoin (DC)

• The Uniswap community is voting on a proposal to create a new legal entity in Wyoming (TB)

• Stripe and Paradigm build a layer-1 blockchain specifically for stablecoins and payments (DC)

• Bloomberg analyst says altcoin ETF approvals unlikely to trigger a traditional alt season (CS)

• Abu Dhabi Global Market grants GFO-X Group in-principle approval to set up a crypto exchange (FM)

• Bitcoin financial services firm River says private businesses have accumulated 84,000 Bitcoin in 2025 (CT)

• Ripple teams up with Chipper Cash, VALR and Yellow Card to distribute RLUSD to corporate and institutional users in Africa (CD)

• Etherscan, a popular EVM blockchain explorer, expands to the Sei blockchain with Seiscan (CD)

• NFT platform NFL All Day revamps their collector experience (DC)

• ICP experiences heavy volatility during the last 24 hours (CD)

• TRON announces a collaboration with NEAR to enable cross-chain stablecoin transfers (CS)

• Ripple's legal battle with the SEC concludes with a mixed ruling (CD)

• CalPERS records mixed reactions from board candidates on crypto investments (DC)

Venture Capital

• Mega Matrix files a $2B shelf registration to fund a crypto treasury focused on Ethena's governance token (CD)

• Singapore-based BlockSpaceForce and Mainnet Capital launch a new crypto hedge fund with a $100M AUM target (TB)

• Electric Capital and Paradigm help raise $40M for the Ethereum advocacy company Etherealize (CT)

• RWA tokenization has become a key focus for VC (CT)

M&A Announcements

• BitMine acquires $65M worth of ETH via Galaxy Digital (TB)

• RedStone, a provider of oracle data feeds for blockchains, acquires Credora, an on-chain credit rating platform (CD)

• Kraken announces it has acquired Breakout, a proprietary trading firm (FM)

• DeFi Development Corp. announces the acquisition of 196,141 SOL (TB)

Launches

• Grayscale launches Ethereum covered call ETF (BW)

• The Frontier Stable Token, authorized by the U.S. state of Wyoming, to launch on the Hedera blockchain (CT)

• Crypto custody Fireblocks unveils its own payments network (CD)

• Boerse Stuttgart unveils Seturion, a blockchain-based pan-European settlement platform (CD)

• Etherscan launches Seiscan, a dedicated block explorer for the Sei Network (TB)

• Uniswap Labs and the Uniswap Foundation team up with cross-chain bridge Wormhole to expand support for more tokens (TD)

• LBank announces the integration of Ondo Finance’s tokenized stocks assets (CD)

• InvroMining launches AI cloud mining infrastructure, introducing multi-asset modules (CD)

Regulation

• The SEC unveils a new rulemaking agenda proposing major rollbacks of crypto asset regulation (DC)

• The Federal Reserve Board will host a conference on payments innovation regarding crypto and AI (DC)

• Japan’s Financial Services Agency proposes regulating crypto under the FIEA (CT)

• ECB board member Piero Cipollone says a digital euro would be required to ensure users can still make payments during major outages (CD)

• UK regulators draft new AML rules for crypto firms (DC)

• The SEC’s Crypto Assets Task Force reviews a roadmap to protect crypto from future quantum computing threats (CT)

• Christine Lagarde, president of the ECB, says the EU should hold non-EU stablecoin issuers to the same standard (TB)

• Wintermute asks the SEC to confirm that network tokens should not be classified as securities (CT)

• ChainUp, a digital asset solutions provider, has been named a finalist in two categories at the ALB Pan-Asian Regulatory Awards 2025 (CD)

Cybersecurity

• Researchers discover malicious NPM packages using Ethereum smart contracts to hide harmful code (CD)

• Venus Protocol recovers user’s $13.5M stolen in phishing attack (CT)

• HiddenLayer researchers detail a new AI “virus” that spreads through coding assistants (DC)

• Investigators find no evidence to support accusations of fraud or misconduct in Cardano’s ADA Voucher Program (CS)

Extra Reads

• How does DeFi work in creating investment yields? - Crypto for Advisors: The Mechanics of Generating Yield On-Chain

• Australian self-managed retirement funds held $1.9B in crypto at the end of June, but fresh data suggests they sat out this year’s digital-asset rally - Australian Retirement Funds Have ‘Missed the Rally’ in Crypto This Year
  

Chart of the Day

Stablecoin liquidity hits a record $68B

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.