Crypto Market Sheds $150 Billion as China Hits Back at the US
Markets
“Cryptocurrencies continued to lose ground after a historic round of liquidations that triggered a sharp selloff over the weekend. Smaller, more volatile tokens sank further still, dragging the combined market value of all cryptocurrencies down by more than $150 billion over a 24-hour period. The slide came as China imposed curbs on the American units of Hanwha Ocean Co., one of South Korea’s biggest shipbuilders, hitting back against US measures against the Chinese shipping sector. Earlier, about $19 billion of leveraged crypto positions were liquidated in a brutal selloff that began October 10, after US President Donald Trump threatened China with harsher tariffs in response to new export controls.”
Source: Bloomberg
Bitcoin and Ethereum Spot ETFs See $755M in Outflows as Traders Turn Cautious After Weekend Wipeout
ETPs
“U.S. spot bitcoin and ether exchange traded funds saw a combined net outflow of $755 million on the first day after the historic crypto liquidations event over the weekend. According to SoSoValue data, spot bitcoin ETFs recorded $326.5 million in negative flows yesterday. Spot Ethereum ETFs saw a heavier $428.5 million net outflow, with funds moving out from seven ether ETFs with no inflows on the day. BlackRock's ETHA saw $310 million net outflows, which marks its second worst performance since debut. ‘Monday’s outflows reflect post-liquidation caution,’ said Vincent Liu, CIO at Kronos Research. 'Investors are pausing, clearly waiting for clearer macro signals before putting more capital to work. Sentiment is driving activity more than fundamentals now.’”
Source: The Block
Metaplanet’s Enterprise Value Sinks Below Bitcoin Holdings
Treasury Companies
“Metaplanet Inc.’s enterprise value dipped below that of its Bitcoin reserves, underscoring diminishing investor appetite for so-called digital-asset treasury firms globally. The Tokyo-listed hotelier pivoted to accumulating the original cryptocurrency in April 2024 and once commanded a hefty premium to its Bitcoin net asset value. Its shares hit an all-time high in mid-June but have slumped about 70% since, dragging the company’s mNAV - the ratio of its market capitalization and debt to its token holdings - to 0.99 at one point on Tuesday, according to data published by the company. It isn’t alone. The share prices of numerous token hoarders have come under pressure in recent weeks, as the pace of their buying slows.”
Source: Bloomberg
Citi Targets 2026 Launch for Crypto Custody Service as Wall Street Dives Deeper Into Digital Assets
Custody
“Citi is aiming to launch a service for the custody of crypto assets in 2026, an executive at the bank told CNBC, as Wall Street giants expand their footprint in the digital currency space. Biswarup Chatterjee, global head of partnerships and innovation in the services business at Citi said the bank has been developing a crypto custody service for the last two-to-three years and is making progress. ‘We have various kinds of explorations... and we’re hoping that in the next few quarters, we can come to market with a credible custody solution that we can offer to our asset managers and other clients,’ Chatterjee said. For Citi, Chatterjee said the lender is looking at both an in-house developed technology solution for custody as well as potential partnerships with third-parties.”
Source: CNBC
California Approves Law to Preserve Unclaimed Crypto in Original Form
Policy
“On Monday, California Governor Gavin Newsom signed Assembly Bill 1052 (AB 1052) into law, amending the state's Unclaimed Property Law to include digital financial assets such as cryptocurrencies. The bill requires that unclaimed crypto assets-those that have been dormant for 3 years on custodial platforms such as exchanges-be transferred to state custody in their original form, without forced liquidation or cash conversion. This prevents automatic sale and ensures the assets are held securely by a qualified custodian until the owner reclaims them. Senate Bill 822 (SB 822) covers crypto assets such as Bitcoin and Ethereum, and ensures that unclaimed crypto assets retain their original form when remitted to the state, rather than being liquidated, according to the bill. Governor Newsom signed the bill into law on Saturday.”
Source: The Block
