Are crypto-hoarding firms setting themselves up for failure? According to Bitwise’s Chief Investment Officer Matt Hougan, companies adopting Digital Asset Treasury strategies face an uphill battle maintaining their stock premiums. This revelation sends shockwaves through the cryptocurrency investment community. Why Crypto-Hoarding Firms Can’t Sustain Premiums Matt Hougan recently took to social media platform X to explain the structural challenges facing crypto-hoarding firms. He argues that most companies implementing DAT strategies will eventually trade at negative premiums. The core issue lies in fundamental business dynamics that work against these firms over time. Hougan identifies three major burdens that accumulate and devalue DAT strategies: Corporate operating costs that continuously drain resources Liquidity problems that limit financial flexibility Execution risks that threaten strategy implementation The Growth Challenge for Crypto-Hoarding Companies What methods can crypto-hoarding firms use to increase their crypto holdings per share? According to Hougan, the options are both limited and uncertain. For the strategy to maintain value, growth must be continuous and substantial. However, most crypto-hoarding firms struggle with this requirement. The structural dynamics create a scenario where the burdens outweigh the benefits. Consequently, these companies face mounting pressure that eventually leads to discounted trading. What This Means for Crypto-Hoarding Investors Investors in crypto-hoarding firms should understand the inherent risks. The premium sustainability issue affects long-term value creation. While short-term gains might appear attractive, the structural challenges pose significant threats. Hougan’s analysis suggests that crypto-hoarding firms need more than just cryptocurrency exposure to succeed. They require robust business models that can withstand the accumulating burdens he describes. The Future of Digital Asset Treasury Strategies Will all crypto-hoarding firms face this premium decline? Hougan believes most will eventually trade at discounts. The structural factors he identifies create persistent headwinds that are difficult to overcome. This doesn’t mean DAT strategies are doomed. However, crypto-hoarding firms must address these challenges proactively. Companies that find ways to mitigate operating costs, improve liquidity, and manage execution risks might still succeed. FAQs: Understanding Crypto-Hoarding Firm Challenges What are crypto-hoarding firms? Crypto-hoarding firms are companies that implement Digital Asset Treasury strategies, holding significant cryptocurrency reserves as part of their corporate treasury management. Why do crypto-hoarding firms struggle with premiums? They face structural challenges including ongoing corporate operating costs, liquidity constraints, and execution risks that accumulate over time and devalue their strategies. Can any crypto-hoarding firms maintain premiums? While challenging, some firms might succeed if they develop methods to continuously increase crypto holdings per share and effectively manage the structural burdens. What should investors look for in crypto-hoarding firms? Investors should evaluate how companies address operating costs, liquidity management, and execution risk mitigation in their DAT strategies. How quickly do premiums typically decline? The timeline varies, but Hougan suggests the structural dynamics eventually cause most DAT companies to trade at discounts as burdens accumulate. Are there successful examples of crypto-hoarding firms? While some companies have shown temporary success, long-term sustainability remains challenging due to the structural factors identified by Hougan. Found this analysis of crypto-hoarding firms insightful? with fellow investors and cryptocurrency enthusiasts on your social media platforms to continue the conversation about Digital Asset Treasury strategies. To learn more about the latest cryptocurrency trends, explore our article on key developments shaping Bitcoin institutional adoption.
https://bitcoinethereumnews.com/tech/bitwise-cio-reveals-structural-flaws/
Tag: bitwise
DTCC Lists Nine XRP ETFs as Countdown to Potential Launch Begins
The Depository Trust & Clearing Corporation (DTCC) has recently listed nine XRP ETFs on its platform, signaling potential new trading opportunities for investors. These nine products include a mix of spot-based and futures-based strategies, filed between October 2024 and June 2025. The listings suggest that several XRP ETFs could begin trading as early as November 13, pending final regulatory approval.
### What Does a DTCC Listing Mean?
When an ETF appears on the DTCC site, it means the fund has completed initial registration steps and is prepared for market settlement once regulatory approval is granted. However, it’s important to note that a DTCC listing does not confirm that trading has already started.
### Futures-Based XRP ETFs Already Trading
Currently, four XRP ETFs that utilize futures contracts to track the token’s price movements are actively trading in the market. Examples include the ProRP ETF. These futures-based funds offer daily leverage ranging from one to two times the price movement of XRP. Instead of holding actual XRP tokens, these ETFs gain exposure through derivatives contracts.
In addition, the REX-Osprey XRP ETF, launched in September, operates as a hybrid product with approximately 80% spot exposure. This fund functions under the regulatory framework of the 1940 Act, allowing it to trade while pure spot XRP ETFs await final SEC approval.
### Spot-Based XRP ETFs Awaiting SEC Approval
Five XRP ETFs focusing on direct spot exposure—meaning they hold actual XRP tokens—are still under review by the Securities and Exchange Commission (SEC). Among these is the spot component of the 21-Osprey ETF. Progress on these applications stalled following the U.S. government shutdown on October 1, which delayed the review of more than 16 altcoin ETF filings, including those involving XRP, Solana, Dogecoin, and Cardano.
### Renewed Optimism for Spot XRP ETFs
Recent developments have boosted optimism for the approval of spot XRP ETFs. Canary Capital has removed a delaying amendment from its filing, setting an automatic effective date of November 13, pending the Nasdaq’s clearance of the ticker symbol.
Both Fidelity and Canary Capital have filed final S-1 updates for their altcoin ETF applications, aligning with this same November 13 target date. If the SEC approves these submissions, several spot XRP ETFs are expected to start trading on or around that date.
### Broader Progress in the Altcoin ETF Market
Despite earlier delays, the altcoin ETF market has seen notable progress recently. On October 28, Canary Capital launched the first U.S. spot Litecoin ETF, while Bitwise rolled out its spot Solana ETF under new generic listing standards on the same day. Grayscale’s Solana ETF followed with a launch on October 29.
These developments demonstrate that the SEC has resumed processing applications for altcoin ETFs, signaling potential momentum for the approval of XRP ETFs and other pending cryptocurrency products before the end of November.
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Investors interested in XRP ETFs should keep an eye on regulatory updates and market announcements as November 13 approaches, which could mark a significant expansion in options for crypto-based exchange-traded funds.
https://coincentral.com/dtcc-lists-nine-xrp-etfs-as-countdown-to-potential-launch-begins/
SOL Price Plunges to $158 as BSOL ETF Fails to Spark Rally
**Solana Price Crashes to $158 Following Breakdown from Symmetrical Triangle Pattern**
Solana (SOL) has experienced a sharp price decline, dropping to $158 after breaking down from a critical symmetrical triangle pattern that traders had closely monitored. This breakdown marked a clear shift in market momentum following weeks of consolidation and typically signals the start of a strong directional move.
The price fell below a crucial support zone between $178 and $180, a level that combined horizontal support with the 0.382 Fibonacci retracement and the 21 exponential moving average (EMA). This breach led to the formation of a lower low at $158, confirming strong bearish momentum.
### Technical Indicators Signal Mixed Outlook
Technical analysis presents a mixed picture for Solana’s next move. The Bollinger Band Width Percentile spiked on the four-hour chart, indicating heightened volatility. However, the daily reading stands at 65%, suggesting room for further price movement as the market searches for direction.
### Bitwise’s BSOL ETF Launch Drives Market Attention
On October 28, Bitwise introduced its BSOL ETF, a staking-enabled investment product for Solana. The fund gained significant traction, accumulating $400 million in assets under management within its first week—a figure surpassing Rex-Osprey’s SSK ETF, which holds $370 million.
Despite this strong interest in the BSOL ETF, the fund launch did not prevent the steep price decline in SOL. Market participants remain watchful, anticipating whether continued fund inflows might offer the buying pressure necessary to reverse the downtrend.
### Solana Tests Critical Support Zone Between $155 and $165
Currently, Solana’s price is testing an important historical demand zone between $155 and $165. This area has previously attracted strong buying interest during corrective phases and is now under scrutiny as traders evaluate whether accumulation will occur.
The $155 level represents the next significant support. If this zone fails to hold, Solana’s price could extend losses toward the $130 to $140 range — levels that mark deeper retracements from recent rallies.
### Market Outlook and Potential Recovery Catalysts
Volatility indicators hint that the market may be approaching an exhaustion point, potentially setting the stage for a short-term relief bounce as momentum indicators reach extreme values. However, daily timeframe signals suggest there is still room for further movement.
A key factor in any potential recovery will be continued inflows into the BSOL ETF. If institutional interest and fund flows increase, these could provide critical buying pressure to stabilize or even lift Solana’s price.
For now, market structure and sentiment hinge on whether the current support levels near $155 hold firm, determining if Solana will rebound or face continued declines.
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*Stay tuned for further updates on Solana’s price action and market developments.*
https://coincentral.com/sol-price-plunges-to-158-as-bsol-etf-fails-to-spark-rally/
Bitwise’s NYSE Listing Update Hints XRP ETF Approval Could Arrive Within 20 Days
The long-awaited XRP exchange-traded fund (ETF) from Bitwise could soon become a reality. Bitwise, the $15 billion asset management giant, has just submitted Amendment No. 4 to its XRP ETF filing with the U.S. Securities and Exchange Commission (SEC), revealing two crucial details. Experts believe such updates usually signal the final step before approval. If cleared by the SEC, the XRP ETF could go live within just 20 days.
On October 31, Bitwise filed Amendment No. 4 with the SEC to update its S-1 form. The latest updated document includes two key details: first, the listing venue will be the New York Stock Exchange (NYSE); and second, the management fee will be 0.34%.
Eric Balchunas, senior ETF analyst at Bloomberg, believes Bitwise’s latest filing marks a major step forward for XRP’s entry into traditional finance. “Adding the NYSE and fee means Bitwise has checked nearly all boxes,” he said. Historically, once issuers include exchange and fee details in their S-1 forms, it usually means they’re just waiting for the final green light from the SEC.
### XRP ETF Could Launch in 20 Days
Following the update, ETF expert James Seyffart of Bloomberg Intelligence provided more context. He noted that Bitwise’s latest filing contains “shorter language” that could allow the product to go live within just 20 days, pending SEC clearance. Seyffart also mentioned that Bitwise isn’t alone—major players like VanEck, Fidelity, and Canary Funds have also updated their filings, signaling that the race to launch an XRP ETF is heating up fast.
Meanwhile, Crypto America host Eleanor Terrett revealed that Canary Funds removed the “delaying amendment” from its S-1 filing, which gives the SEC control over timing. This change sets Canary’s XRP ETF up for a potential launch date of November 13, pending Nasdaq’s approval of its 8-A filing.
### Impact of XRP ETF on Price
After the latest XRP ETF updates, XRP’s price saw a modest uptick, trading around $2.51, reflecting growing optimism among traders. Analysts say that if the XRP ETF gets approved, it would mark the first-ever U.S. spot ETF for XRP—a historic moment that could push the token toward its all-time high price.
At present, XRP faces strong resistance near the $2.75 level. A breakout above this point could open the door for a test of the $3 psychological mark. However, if selling pressure continues, XRP might correct by up to 19%, potentially retesting the $2 support zone within its long-term channel pattern.
Stay tuned as the SEC decision approaches—this could be a defining moment for XRP and the broader cryptocurrency market.
https://coinpedia.org/news/xrp-etf-approval-nears-as-bitwise-confirms-nyse-listing-and-20-day-launch-window/