AGP Executive Report

ETF Flows: Bitcoin funds drew $175.6 million on Oct. 13, while Ethereum ETFs ended a 10-day outflow streak with $24.8 million in inflows. XRP funds saw no net flows for a third session; BTC hovered near $83,000 as ETH and XRP remained under pressure. Institutional Adoption: Germany issued 42 of Europe’s 72 new MiCA authorizations in the third quarter, with banks making up nearly all of its newly licensed firms. Standard Chartered also opened direct Bitcoin and ether trading to affluent UAE clients, while Russia approved Sberbank for crypto exchange services. Regulatory Push: South Korea is blocking 27 unregistered exchange websites, including KuCoin and MEXC. In the U.S., the SEC proposed a new crypto custody framework for investment advisers and funds. Market Shifts: Binance will close its mining pool and related services on Nov. 10, telling miners to move their equipment before the cutoff. BitMine, which holds nearly 5% of Ethereum’s supply, is nearing its stated buying limit—raising questions about demand once its purchases stop.

Wallet Security: Ledger says tampered devices sold through reseller CryptoBilis captured recovery phrases, with reported losses reaching $86 million. MediaMarktSaturn has pulled Ledger wallets across its European markets, while Trezor is cutting ties with some resellers from January. Exchange Rules: South Korea ordered website blocks for 27 unregistered crypto platforms, including KuCoin and MEXC, as it tightens local registration requirements. Tokenized Markets: The SEC’s five-year conditional exemption opens a limited path for platforms to trade tokenized listed shares; meanwhile, Citadel has moved tokenized Treasuries through a DTC service, and BNY plans its own pilot. Market Moves: Bitcoin hovered around $83,000–$84,000 as investors weighed a rebound against ETF outflows and macro pressure. Robinhood also disclosed a $25 million Bitcoin purchase for its corporate balance sheet. Russia’s Crypto Push: Sberbank won approval to offer crypto trading, with services expected to begin in December.

Wallet Security: Ledger confirmed an unauthorized implant in a CryptoBilis-sold hardware wallet could capture recovery phrases and transmit them over LTE. Verified losses are tied to the reseller’s devices, with reported thefts topping $86 million. Exchange Crackdown: South Korea ordered 27 unregistered crypto exchange websites, including KuCoin and MEXC, blocked, warning users could face trouble accessing funds or withdrawing. Bitcoin Markets: BTC rebounded above $83,000, but U.S. spot Bitcoin ETFs still saw $65.4 million in outflows, all from BlackRock’s IBIT. A weakening Coinbase premium points to softer U.S. demand as traders await inflation data. Tokenized Stocks: The SEC opened a five-year innovation exemption for certain blockchain-based stock trading venues, a shift that could let tokenized equities trade beyond traditional market hours. Solana: SkyAI sold 1 million SOL to help fund a planned $201 million share buyback, adding pressure as SOL traded near $108. UK Seizure: A preliminary High Court ruling narrowed victims’ path to reclaim roughly 61,000 seized bitcoin, worth about £3.8 billion.

Security Alert: Ledger confirmed an unauthorized chip in wallets sold by reseller CryptoBilis, with reports linking tampered devices to more than $86 million in losses. Ontology resumed block production after a 41-hour halt, but has yet to disclose the vulnerability that prompted it. Market Watch: Bitcoin hovered near $83,000 ahead of U.S. inflation data as crypto ETFs saw heavy outflows. Strategy bought about $21 million in Bitcoin, while Bitmine added 12,532 ETH and moved closer to its goal of holding 5% of ether’s supply. Rules and Politics: The UK opened its crypto authorisation gateway, and the SEC proposed a custody framework that would allow self-custody and state trust companies. In the U.S., crypto PACs put $2.7 million into House races, but a Senate vote on a market-structure bill stalled. Global Expansion: Russia approved Sberbank to offer crypto exchange services, with products planned for December. Meanwhile, a global stablecoin push is drawing scrutiny: the Financial Stability Board warned that existing safeguards remain untested in a crisis. DeFi Activity: THORChain’s weekly swap fees more than doubled from its pre-surge level, though they remain well below the late-September peak.

Market & ETFs: Bitcoin rebounded above $83,000, but crypto funds shed about $1.25 billion last week. XRP ETFs bucked the trend with $11.3 million in inflows, while Bitcoin, Ether and Solana funds saw withdrawals. Wallet Security: Ledger confirmed an unauthorized hardware implant in a device sold by Southeast Asian reseller CryptoBilis. Researchers estimate losses exceed $93 million; Ledger says its own systems were not compromised. Institutional Adoption: South Korea’s Jeonbuk Bank launched corporate loans backed by Bitcoin, while Standard Chartered began institutional custody for Ripple’s RLUSD stablecoin in Dubai. Regulated Markets: UAE-licensed AGCX opened a dirham trading desk, letting clients fund crypto accounts through local bank transfers. China’s Blockchain Push: Beijing backed a national blockchain network as part of a wider digital-economy plan, while its ban on cryptocurrency transactions remains in place.

Bitcoin & Markets: Bitcoin climbed more than 1% to about $83,900 after Ukraine backed a proposed energy ceasefire, while a move above $84,000 liquidated nearly $83 million in short bets. But Treasury yields above 5% are adding pressure, as higher fixed-income returns can pull investors from riskier assets. Wallet Security: Ledger confirmed an unauthorized implant in at least one device sold by reseller CryptoBilis. The compromised wallets may have lost $72 million to $93 million; buyers are urged not to set up affected devices and to move funds if they did. XRP Ledger: Researchers uncovered a decade-old arithmetic flaw that could theoretically have enabled creation of 18.45 trillion XRP. Developers patched it in September, before public disclosure; XRP has since come under price pressure. Tokenized Markets: The IMF says tokenized stocks draw heavy after-hours and fractional trading, but remain less liquid and about 1.5 times more volatile than conventional shares. Sanctions: Ukraine’s latest measures target people and companies accused of helping Russia evade financial restrictions, including crypto exchange operators.

ETF Flows: XRP funds drew $11.3 million last week while Solana funds lost $24.8 million, narrowing the asset gap to $160 million. Dogecoin ETFs, meanwhile, recorded no net flows for seven straight sessions. Wallet Security: COLDCARD is investigating a phishing post published on its official X account; no losses are confirmed. The warning comes as Ledger probes a separate theft and researchers flag fake Ledger sites designed to steal recovery phrases. Market Convergence: OKX founder Star Xu says crypto firms and traditional finance are increasingly moving into each other’s territory, as major financial players invest in the exchange. Stablecoin Rules: ESMA has told EU regulators to ensure crypto firms wind down services involving non-compliant stablecoins within three months, extending scrutiny to custody, transfers and advice. China’s Blockchain Push: Beijing is planning a national blockchain network as part of its digital infrastructure strategy, while keeping its ban on Bitcoin and other independent cryptocurrencies.

Bitcoin Market: Bitcoin hovered near $82,000 a year after the $19 billion liquidation shock. Spot ETF outflows topped $700 million over two days before turning slightly positive, while large wallets added about 15,000 BTC and miner MARA sold 996 BTC. Ethereum Funds: Ether ETFs recorded nine straight days of outflows and lost nearly $2 billion in assets, though falling ETH prices account for much of that decline. Wallet Security: Ledger is investigating reported losses linked to devices sold by Southeast Asian reseller CryptoBilis and has halted the reseller’s sales; the suspected drain is estimated at $86 million. Regulation: France advanced proposals to tax crypto-to-stablecoin swaps from 2027, while the CFTC is pursuing a federal framework for leveraged retail crypto trading. The UK also sanctioned three exchanges over alleged Russia-linked activity. Market Watch: Traders are eyeing next week’s US inflation data as a potential catalyst for crypto prices.

Market Rout: Bitcoin fell toward $80,000 as more than $2.4 billion in crypto positions were liquidated over the week, mostly from traders betting on rising prices. It later steadied near $82,500, while spot Bitcoin ETFs recorded a modest $21 million inflow on Oct. 9 after heavy withdrawals. Security Alert: Ledger is investigating estimated losses of $86 million tied to wallets bought through an authorized reseller. The company says there’s no sign its own systems were breached and urged some customers not to set up affected devices. XRP Fix: Developers patched a decade-old XRP Ledger flaw that researchers said could have let attackers create XRP through miscounted transactions. Government Wallets: The U.S. moved about $1.5 billion in seized crypto in two days, including 12,267 BTC; whether the assets will be sold remains unclear. Stablecoin Push: A Visa survey found nearly half of APAC consumers open to using stablecoins by 2031, though only 6% of respondents understood how they work. In Europe, regulators are giving platforms three months to remove stablecoins that don’t meet MiCA rules.

Market Pressure: Bitcoin fell toward $80,000 as investors took profits and spot funds saw heavy outflows, while XRP ETFs drew modest inflows against the broader retreat. Wallet Security: Ledger is investigating losses nearing $90 million tied to devices sold through a Southeast Asian reseller; Tether froze some linked USDT as investigators tracked funds. Stablecoin Reach: Coinbase and Samsung plan to make USDC available through Galaxy Wallet, potentially expanding access to millions of users. Regulatory Shifts: The EU gave crypto platforms three months to remove non-compliant stablecoins, while Thailand opened Bitcoin and Ether ETFs to local funds. Enforcement: U.S. officials say they may seize about $1 billion in Iran-linked crypto; New York also permanently barred former Celsius chief Alex Mashinsky from the crypto industry in a settlement carrying up to $35 million in conditional payments.

Market Pressure: Bitcoin bounced above $82,000 after President Trump ruled out strikes on Iran before the midterms, but crypto markets remained shaky. Spot bitcoin ETFs lost $244 million on Thursday, while ether funds logged an eighth straight day of outflows, bringing their withdrawals since Sept. 29 to about $641 million. Payments and Adoption: Crypto card volume climbed 33% in Q3 to $4.31 billion, led in part by stablecoin use. On the XRP Ledger, AI agents and online services processed more than 8 million payments in a month, though XRP’s price fell and the activity’s effect on token demand remains unclear. Regulatory Shift: Spain will require identity checks for every crypto ATM transaction ahead of a FATF review. In the EU, ESMA gave supervisors three months to help firms resolve customer holdings in stablecoins that do not comply with MiCA rules. Institutional Finance: BNY expanded regulated digital-asset custody for select EU institutions under MiCA, as traditional firms deepen their presence in crypto markets.

EU Stablecoin Rules: ESMA told MiCA-licensed firms to stop offering services tied to stablecoins that don’t meet EU rules, with national regulators expected to enforce the change and address existing client holdings. Market Pressure: Bitcoin fell below $81,000 amid heavy liquidations, while U.S. spot Bitcoin ETFs saw $487 million in outflows. The U.S. government also moved seized Bitcoin to Coinbase Prime, with no confirmed sale. Institutional Custody: BNY expanded MiCA-compliant custody in Europe, supporting Bitcoin, Ethereum, Solana and USDC. Standard Chartered is also preparing a digital-asset custody service in Singapore, subject to regulatory approval. Stablecoin Payments: Samsung plans to add USDC transfers through Samsung Wallet for Galaxy users across more than 60 countries. U.S. Oversight: The CFTC proposed federal registration for platforms offering leveraged crypto trading, as broader legislation remains stalled.

Market Slide: Bitcoin fell below $83,000 as Iran-related oil fears lifted yields, wiping out about $547 million in leveraged crypto positions. U.S. spot Bitcoin ETFs recorded $484.9 million in outflows, their biggest daily withdrawal since June. Ethereum Demand: Bitmine, already holding about 4.9% of ether’s supply, plans to stop buying once it reaches 5%—ending a major source of demand. Payments & Banking: Samsung plans to add USDC transfers on Solana to its U.S. Wallet service later this month, potentially reaching 82 million Galaxy devices. Wells Fargo is also reportedly discussing crypto-trading liquidity with Kraken parent Payward. Security: Ethereum co-founder Vitalik Buterin warned that AI-driven advances could weaken cryptographic safeguards, urging preparation without a rush to move funds. Tax Policy: Greece has proposed a 10% tax on crypto gains, with annual gains up to €500 exempt.

US Regulation: The CFTC is moving toward a federal framework for leveraged crypto trading, including registration for crypto markets. The proposal is a major step, but Rep. French Hill says agency rules cannot replace durable legislation. Market Pressure: Bitcoin fell below $84,000 as liquidations neared $700 million. Spot Bitcoin ETFs drew about $119 million, while Ether funds lost $201.9 million, extending their outflow streak. Trading Access: Coinbase completed its Deribit integration, giving eligible US traders a regulated route to global options and perpetual futures liquidity. Quantum Risk: Ethereum researcher Justin Drake urged the industry to prepare for a potential future threat to exposed wallets, while stressing that today’s cryptography has not been broken. Blockchain Claims: Sui reported 40.6 million transactions per second in a stress test, but the figure came from off-chain payment channels—not the main network’s native throughput.

Market Risk-Off: Bitcoin slid toward $83.6K and crypto saw about $550M in leveraged long liquidations as oil jumped, yields rose, and traders waited on Fed minutes. Institutional Flows & Treasuries: Robinhood confirmed a first $25M BTC balance-sheet buy, while the US government moved $100M+ in BTC/BNB to Coinbase Prime addresses (sale not confirmed). Ethereum Outlook: Citi/VanEck/Standard Chartered/Bernstein issued a wide ETH target spread ($3,028 to $6,000) and an “Ethereum Rainbow Chart” points to ETH staying in “accumulate” territory into late October. Regulation Watch: The CFTC pushed ahead with retail leverage rules after Congress stalled, while FinCEN withdrew proposed self-custody and mixer reporting rules. Crypto Policy & Security: France and the US highlighted Hamas-linked crypto funding via charity fronts; Russia’s Sberbank was approved as a regulated crypto custodian for BTC/ETH/USDT. ETFs & Exchange Moves: Winklevoss filed for a spot Zcash ETF on Nasdaq (WINK), Coinbase plans to relaunch Coinbase Pro after Deribit integration, and BTCC refreshed its Trust Center for its 15th year. Asia Adoption: Hong Kong moved toward licensing crypto firms, and South Africa’s FNB launched crypto trading for nearly 9M customers via VALR.

Ethereum vs Bitcoin: Ether’s rally is getting a warning sign: thinner order books and an Ethereum staking exit queue hitting a yearly record (about 843,000 ETH queued), raising questions about near-term sell pressure. Zcash ETF fee war: The Winklevoss twins filed for a spot Zcash ETF (WINK) with a 0.25% sponsor fee, undercutting Grayscale’s 2.5% and aiming to turn privacy-coin momentum into ETF demand. Bitcoin levels in focus: BTC is consolidating around the mid-$80Ks as traders watch key resistance/sell-wall zones near $87,000 and $85,000 support, while ETF flows and macro rates keep flipping sentiment. Stablecoin and regulation pressure: Conduit sued Tether over a $2.76M USDT freeze, while the SEC’s latest crypto FAQ is framed as non-binding guidance and the CFTC pushes a new federal path for leveraged retail crypto trading. Crypto adoption, but with friction: Visa research finds stablecoin interest is rising in Asia Pacific, yet misconceptions and trust gaps remain; meanwhile, community banks show hesitation about stablecoin services due to deposit and lending concerns. On-ramps and custody expansion: ether.fi tapped MoonPay to consolidate payments infrastructure, and South Africa’s FNB launched crypto investing inside its app (but in a closed ecosystem). Security reminder: NordVPN flagged a mature Roblox phishing “supply chain,” and synthetic identity fraud is accelerating with AI-generated identities.