Good Morning,

Here's a quick preview of today’s content: Ex-engineer pleads guilty to using his former employer’s cloud servers to mine crypto, Senate Democrats probe for answers on Trump’s crypto dealings, Kraken to take staff on Caribbean Island retreat, Chinese AI models outperform US models in crypto trading, Standard Chartered says Bitcoin will fall below $100k, and so much more

Happy Thursday - Let’s dive in.

Market Snapshot

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• Crypto-related stocks, particularly Bitcoin miners, suffered heavy losses Wednesday

  • Spot BTC ETFs log $477M in positive flows amid softening gold demand, while ETH ETFs report $141.6M in inflows

  • Options open interest hits $108B

  • Bitcoin's MVRV ratio drops below its 365-day average

  • While BTC and ETH continue to trade within tight ranges, ZEC extends its rally +460% in a month

• CPI week begins to take its toll on crypto and risk assets

Market Predictions

• Bettors on Kalshi are predicting when will Dogecoin hit $1?

• 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}}

• Google announces quantum advantage 13,000x faster than supercomputers (CT)

• Citadel CEO Ken Griffin discloses a 4.5% stake in DeFi Development Corp., a DAT focused on accumulating Solana (CT)

• Standard Chartered says Bitcoin will likely fall below $100k (DC)

• NHL signs licensing deals with prediction markets Kalshi and Polymarket (DC)

• Tesla books $80M profit on Bitcoin holdings in Q3 (CD)

• Kraken to take staff on Caribbean Island retreat (CD)

• Brian Armstrong says Coinbase is building private transactions for Base (CD)

• TRM Labs says India and US lead crypto adoption (TB)

• Legal filing claims First Lady Melania Trump isn’t to blame for “scam tokens” (DC)

• 155 crypto ETP filings tracking 35 different assets await review (TB)

• Stablecoin transaction volume up +83% YoY (DC)

• Chinese AI models outperform US models in crypto trading (CT)

• UK regulator sues crypto exchange HTX for unlawful promotion (CD)

• Kraken says tokenized equities trading surpasses $5B (TB)

• Ex-crypto exec claims DeFi company cut him out of stablecoin business (DC)

• Nearly half of US retail crypto holders haven’t earned yield (TD)

• Crypto regulation clarity triggers +125% surge in retail transactions two years in a row (CT)

• 110-year-old US retail chain Bealls now accepts crypto payments (TB)

• Ethereum Foundation moves $610M worth of ETH to new wallet (DC)

• Applied DNA Sciences purchases 4,908 BNB tokens (CT)

• Forward Industries forms crypto advisory board (TB)

• Crypto exchanges begin delisting Kadena (DC)

• MegaETH to offer 5% of its MEGA supply in auction (TB)

• TRON Protocol revenue hits ATH of $1.2B in Q3 (CS)

• Ethereum Foundation announces gas limit cap for Fusaka upgrade (TD)

• Aave DAO proposes $50M annual token buyback program (TB)

Venture Capital

• Prediction market Kalshi attracts investor offers valuing platform above $10B (BW)

• Moon Inc. raises $8.8M to launch a Bitcoin prepaid card, led by Bitcoin miners and investors through issuance of new shares and convertible notes (BM)

• Tesser, a startup building a stablecoin payments solution, raises $4.5M in a seed round led by Castle Island Ventures (PN)

M&A Announcements

• DraftKings acquires prediction market company Railbird to launch its DraftKings Predictions app (DC)

• Payments platform Modern Treasury acquires Beam, a startup specializing in stablecoin-based payment infrastructure, in an all-stock transaction valued at $40M (BW)

• FalconX, an institutional crypto brokerage, acquires 21Shares, a Swiss-based provider of crypto ETPs and ETFs (BW)

• Inveniam Capital Partners signs a definitive agreement to acquire Storj, a player in decentralized cloud storage (CD)

• Layer-1 blockchain XDC Ventures acquires Contour Network, a platform for banks to streamline trade finance with blockchain rails (CD)

• Real estate tokenization firm Propy announces $100M expansion to acquire property title firms across US (CD)

Launches

• Robinhood adds support for Binance's BNB token (TB)

• T. Rowe Price files to launch Active Crypto ETF (CD)

• Coinbase unveils tool for AI agents to access crypto wallets (TB)

• Jupiter DEX launches Kalshi-powered prediction market (CD)

• Liechtenstein launches state-backed blockchain network (CD)

• Deribit offers institutions the ability to trade continuously without moving assets off custody (CD)

• Hyperliquid-based Kinetiq unveils KNTQ governance token (TD)

• Securitize unveils the Securitize MCP Server (CD)

• Alps Blockchain announces corporate rebrand to Alps (CD)

• Pharos launches AtlanticOcean testnet to bring RWA liquidity on-chain (CD)

Regulation

• Senate Democrats continue to probe for answers on Trump’s crypto dealings (BM)

• Sen. Lummis pushes US regulator to finalize open banking rule backing crypto (DC)

• Major Asian exchanges push back on Bitcoin treasury models (DC)

• Crypto adoption in Australia stalls as trust drops despite labor’s push for regulation (DC)

• Reform UK leader sets out party's pro-crypto policies (TB)

• SEC and CFTC target EOY for crypto oversight (TB)

• Hong Kong SFC clears city's first Spot Solana ETF (DC)

• Congress moves to revamp Bank Secrecy Act’s reporting thresholds (CT)

Cybersecurity

• Ex-engineer pleads guilty to using his former employer’s cloud servers to mine crypto (DC)

• Hackers move $1.8B BTC stolen from Chinese mining pool to four wallets (TB)

• Major crypto wallets raise defense network as phishers jack $400M (CT)

• Canada's Cryptomus exchange hit with 177M CAD fine for money-laundering failures (TB)

Extra Reads

• The success of stablecoins isn’t about speculation but about efficient utility, they are quietly becoming the most-used form of digital currency around the world - Here’s why stablecoins will be bigger than Bitcoin

• Crypto exes argue that a self-sovereign city powered by cryptographic and decentralized systems is possible, but would be immensely challenging - Here’s why ‘crypto cities’ flop, and the blueprint that works

• Large holders are reportedly swapping BTC into spot ETF shares without selling, making it easier to borrow against or include in estate plans - Here’s why whales are converting their BTC into ETFs

Chart of the Day

Bitcoin options open interest exceeds futures open interest by $40B

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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.