Wall Street is preparing for one of the biggest shifts in financial history as a record number of crypto ETF filings move toward approval. Market experts now warn that the US Securities and Exchange Commission (SEC) may soon face an unprecedented wave of applications, potentially 100 new digital asset funds within the next 12 months. ...

SCARLET: LIVE FROM NEW YORK, I’M SCARLET FU. TIM: WELCOME TO "BLOOMBERG CRYPTO." A LOOK AT THE PEOPLE, TRANSACTIONS, AND TECHNOLOGY SHAPING THE WORLD OF DECENTRALIZED FINANCE. WE HAD A GREAT PROGRAM COME UP.LET’S GET A SNAPSHOT OF THE MARKET AND JUST SEE HOW THINGS ARE SHAKING OUT RIGHT NOW. A LITTLE BIT OF RED ACROSS THE SCREEN. BITCOIN DOWN ABOUT 1%.ETHER DOWN 2.5%. LET’S ZOOM OUT ON THE MONTH FOR SOME OF THE BIGGEST CRYPTOCURRENCIES BY MARKET CAP. YOU CAN SEE A LITTLE BIT OF A DIVERGENCE.THE BEST PERFORM ...

Core Insights - Crypto ETF approvals are now deemed "100%" certain, with Solana funds expected to be approved imminently following the fourth amendment submission [1] - The SEC's approval of generic listing standards has streamlined the approval process for crypto ETFs, reducing the timeline from nine months to as few as 75 days [3][4] Group 1: SEC Developments - The SEC's new generic listing standards eliminate the need for individual 19b-4 filings, making the regulatory process for crypto ETFs more efficient [2] - Issuers can now proceed directly with S-1 registration statements, which is the final step before launching an ETF [4] - The SEC has instructed issuers of proposed ETFs for various cryptocurrencies, including Solana, to withdraw pending Form 19b-4 filings [3] Group 2: Market Impact - Seven major asset managers have filed updated S-1 documents for spot Solana ETFs, indicating strong interest in launching these products [2] - The first fund listed under the new streamlined system is Grayscale's Digital Large Cap Fund, which manages over $915 million in assets [5] - There are currently more than 92 crypto ETF applications awaiting SEC review, with significant deadlines approaching in October and November [5] Group 3: Investment Trends - Bloomberg analysts previously projected a 95% approval probability for Solana and XRP ETFs by year-end, which has now increased to 100% for Solana [6] - Prediction markets show high optimism for Solana ETF approval, with current odds at 99% [6] - Digital asset investment products experienced $812 million in outflows last week, attributed to stronger-than-expected economic data affecting interest rate expectations [6]

Core Viewpoint - The SEC's approval of Greyscale Investment's Digital Large Cap Fund's ETF conversion marks a significant development in the cryptocurrency market, allowing for broader access to multiple cryptocurrencies rather than just single assets [1] Group 1 - The Digital Large Cap Fund (GDLC) is the first multi-token fund, which diversifies investments across leading cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA) [1]

Core Viewpoint - The sentiment towards crypto assets is shifting, with a growing recognition that digital assets are likely to remain in the financial landscape, leading to regret over not investing in Bitcoin earlier [1]. Group 1: Industry Adoption - Companies are increasingly adopting crypto assets, indicating a trend towards mainstream acceptance of digital currencies [1]. Group 2: Investment Philosophy - The focus is on building investment portfolios that prioritize high-quality, dividend-paying companies, particularly for lower and middle-class workers aiming for financial independence [1].

Crypto ETF Filing - Canary Capital filed for the first American-made crypto ETF [1] - The ETF could track U S -based coins like $SOL, $ADA, $XRP & more [1] Potential Impact - This filing matters because it represents a significant step in the development of regulated crypto investment products in the U S [1]

Regulatory Landscape & Institutional Activity - President Trump removed Fed Governor Lisa Cook from the Board of Governors [1] - SEC Crypto Task Force discussed tokenization of traditional assets with Kraken, including proposals for tokenized trading systems and regulatory frameworks [1] - World Federation of Exchanges urged regulators to crack down on tokenized stocks due to lack of equivalent rights and safeguards compared to equities [2] - Canary filed for an "American-Made Crypto ETF" focused on coins developed, mined, or operated in the US [3] Investment & Holdings - Pantera Capital plans to raise up to $1.25 billion to convert a public company into a Solana investment firm [1] - UAE government holds approximately 6,300 BTC, equivalent to ~$740 million, making it the fourth-largest state Bitcoin holder [2] - BitMine increased its ETH holdings by 190,500 ETH last week, reaching a total of 1.71 million ETH worth $8.8 billion [4] - Strategy added 3,081 BTC, now holding 632,457 BTC worth $46.5 billion [4] Market Expansion & Product Development - Gemini introduced the XRP Credit Card [4] - Webull reopened crypto trading to US users [4]

Investment Rating - The report assigns an "Overweight" rating to Futu Holdings Ltd, with a price target increase from US$140.00 to US$160.00, indicating a potential upside of 23% from the current price of US$130.53 [6]. Core Insights - Futu Holdings is positioned to capitalize on the growing cryptocurrency market, which has seen its market cap rise to US$3.4 trillion from US$2 trillion in the past year, with spot trading volume reaching US$18.8 trillion in 2024 [2][18]. - The company has obtained necessary licenses to operate in the cryptocurrency space, including a brokerage license in 2H24 and a VATP license in January 2025, allowing it to offer a range of crypto services [3][4]. - Futu's competitive advantages include a strong brand reputation, a large existing client base, and a comprehensive service offering that enhances trust among potential crypto investors [3][10]. Summary by Sections Market Opportunity - The cryptocurrency market is experiencing significant growth, with a market cap of US$3.4 trillion as of mid-2025, driven by regulatory developments that encourage traditional financial institutions to participate [2][18]. - Futu's strategy includes expanding its crypto offerings to deepen client wallet penetration, particularly in Hong Kong and Singapore, where over 60% of client assets are estimated to be held [8][10]. Revenue Potential - Futu could see an incremental revenue of HK$3.4 billion from spot trading by 2027 if crypto assets grow to 12% of total client assets, compared to an expected gross profit of HK$14.3 billion in 2025 [4][11]. - Additional revenue streams could arise from stablecoins, derivatives, and margin finance, contingent on a clear regulatory framework [4][11]. Regulatory Environment - The Hong Kong SFC has introduced a comprehensive regulatory roadmap for virtual assets, which includes licensing for various crypto-related activities, enhancing the market's credibility and operational framework [9][31]. - The regulatory landscape is evolving, with expectations for further developments in custody, derivatives, and margin trading, which will expand the total addressable market for firms like Futu [36][37]. Competitive Landscape - Futu's established brand and regulatory compliance position it favorably against emerging competitors in the crypto space, allowing it to leverage its existing client relationships to promote crypto adoption [10][83]. - The company has seen significant growth in client numbers and assets, with a 41% increase in funded accounts from 2023 to 2024, indicating strong market demand for its services [85][86]. Client Engagement - Futu's client assets grew at a compound annual growth rate (CAGR) of 33% over the past two years, reaching HK$829 billion in Q1 2025, reflecting increasing client trust and engagement [86][90]. - The firm aims to enhance its offerings through investor education and competitive pricing, which are critical for attracting both retail and high-net-worth clients [10][58].