$BTC (+1,31%) has barely budged for most of this week, showing remarkable discipline. Market participants remain in defensive positions, funding rates have fallen, and ahead of the U.S. elections, investors seem increasingly unwilling to take on additional risk. Nevertheless, $BTC (+1,31%) held up better than large swaths of the crypto market and many assets that are more sensitive to market volatility. This speaks less to a renewed sense of optimism than to a market that is becoming increasingly selective about the risks it is willing to take.

One development this week deserves more attention than it has received so far: tradeXYZ and ICE, the owner of the New York Stock Exchange, plan to offer perpetual futures based on the $HYPE (+0,59%)—subject to approval by the U.S. Commodity Futures Trading Commission (CFTC). For #hyperliquid this is a significant vote of confidence. The move suggests that the technology is outgrowing the experimental realm of the crypto world and finding its way into the infrastructure of regulated financial markets. This is precisely the convergence we expected with the continued development of tokenization and round-the-clock trading.

The market is waiting—for the elections, for the next inflation figure, for the Fed, and perhaps for someone else to blink first on the geopolitical front. #bitcoin It hasn’t broken out to the upside, but despite expectations of tighter interest rates, volatile stock markets, and heightened geopolitical risks, it hasn’t been ready to break out to the downside either.

(Text by CoinShares’ Head of Research, James Butterfill)

$BITC (+0,84%)

$LIQD (+2,02%)

The crypto trading platform $HYPE (+0,59%) is tapping into an additional source of revenue to support its in-house token #hyperliquid. Already, the majority of fee revenue is being used to repurchase $HYPE (+0,59%) on the market. According to estimates, the platform generated total revenue of more than $1.4 billion and spent approximately $1.26 billion of that on buybacks.

Interest income is now being added to this: The stablecoin USDC, a cryptocurrency pegged to the U.S. dollar, is backed by cash and bonds that generate interest. A portion of this interest will be paid $HYPE (+0,59%) in the future for the USDC holdings on its platform. The first payment under this agreement, known as AQAv2, was made on October 3 and amounted to approximately $14.5 million. The funds will be used for additional $HYPE (+0,59%)purchases. The acquired tokens are permanently destroyed (“burned”) and thus removed from circulation.

For $HYPE (+0,59%)holders, this means additional demand amid a declining supply. The more USDC in $HYPE (+0,59%) , the greater the potential new revenue stream. Future payments, however, depend on the holdings and interest rates.

$LIQD (+2,02%)

The crypto market has received little support from capital inflows recently. U.S. spot$BTC (+1,31%)ETFs have now recorded eight consecutive weeks of outflows—the longest streak since their launch—with more than $6.5 billion flowing out since May. In $ETH (+1,14%)-ETFs, inflows have slowed, while Strategy, the Saylor-led #bitcoinTreasury company, sold 3,588 $BTC (+1,31%) to finance dividends on preferred shares. Against the backdrop of these challenging market conditions, $HYPE (+0,56%) continues to trade near its all-time high.

#hyperliquid-ETFs have recorded inflows every week since their launch in May, including approximately $161 million in June, bringing the total assets under management (AUM) of the three U.S. products to about $336 million. The European products have additionally recorded a volume of over 55 million US dollars. While these figures are still small in absolute terms, on a market-capitalization-adjusted basis, this ranks $HYPE (+0,56%) rank among the strongest crypto ETF launches to date. Their relative strength compared to the broader crypto market remains clearly evident.

In our view, this is a strong signal that the tokenomics of $HYPE (+0,56%) are resonating with investors. The allocation of 99% of platform fees toward the systematic buyback of $HYPE (+0,56%) creates a direct link between protocol activity and token demand, thereby giving the asset a value creation mechanism that clearly stands out in the current market.

$BITC (+0,84%)

$LIQD (+2,02%)

$CETH (+1,23%)

The tokenization of real-world assets has gained significant momentum in recent months. More than 40 billion U.S. dollars worth of traditional assets have now been digitized. This surge is driven primarily by platforms such as $HYPE (+0,56%), which demonstrate that modern blockchain infrastructure can match traditional exchanges in terms of trading volume—with just eleven employees. The key: true programmability of assets and transactions that take mere milliseconds.

The next wave of growth could be the so-called agent economy. As artificial intelligence becomes more autonomous, intelligent software agents will use blockchain technology to purchase services from one another, allocate capital, and invest cash reserves. It remains to be seen whether these agents will rely on existing management systems or evolve into independent robo-advisors that design their own strategies.

What is absolutely essential for such machine-to-machine transactions: low-cost and ultra-fast blockchains. That is why this activity is already focusing on $SOL (+2,13%) and so-called Layer 2 networks such as $BASE and $MATIC (+1,92%) —precisely because these systems offer the speed and cost-efficiency required. Volumes are still small today, but they are real and growing steadily. They could soon become one of the most reliable indicators of how quickly AI technology is truly penetrating the economy.

$LIQD (+2,02%)

$SLNC (+1,13%)

$CPYG (+0,92%)

We would frame this thematically, rather than as tips. $BTC (+1,31%) The core position remains—best understood as long-term monetary hedging rather than as a risky investment. It has proven remarkably resilient amid the Fed’s shift toward a restrictive monetary policy. $ETH (+1,14%) is the direct beneficiary of the tokenization trend and serves as a settlement infrastructure—we evaluate it based on its staking yields. One name that illustrates where the market structure is heading is $HYPE (+0,59%): Prior to the recent SpaceX listing, its SPCX perpetual contract traded over $1.30 billion in 24 hours, and its pre-IPO complex has open positions of around $291 million and a cumulative volume of $6 billion. This illustrates that on-chain venues are becoming true drivers of price discovery for assets that traditional markets either severely ration or fail to price continuously.

$BITC (+0,84%)

$CETH (+1,23%)

$LIQD (+2,02%)

Geopolitical events do not adhere to stock market opening times. When the US and Israel launched coordinated attacks on Iran on a Saturday at the end of February, the traditional commodity markets were closed. $HYPE (+0,59%)A decentralized perpetual futures exchange, which operates around the clock, was not.

$HYPE (+0,59%) is a crypto-native trading platform based on its own layer 1 blockchain. It is best known for its on-chain order book and permissionless market creation mechanism (HIP-3), which allows anyone to create perpetual futures on almost any asset. Since the escalation in the Middle East #hyperliquid has become a centralized venue for real-time commodity pricing outside of traditional trading hours. Its perpetual contract linked to oil has seen daily volumes of up to around 1.7 billion US dollars - around 250 times what it was before the conflict began. Open interest across all HIP-3 markets exceeded USD 1.2 billion, with only 7 of the 30 largest markets being crypto pairs. Commodities and equity indices accounted for the rest.

This is arguably the most compelling real-world use case for on-chain derivatives to date and a clear signal that 24/7 permissionless markets are no longer a theoretical value proposition.

$LIQD (+2,02%)

While traditional exchanges were closed last weekend, the market for tokenized assets recorded a trading volume of almost $HYPE (+0,59%) a trading volume of almost 1.4 billion US dollars. Geopolitical events also take place on Saturdays - and markets are increasingly reacting to them in real time.

The traditional financial world is beginning to adapt. ICE, owner of the New York Stock Exchange, recently invested in OKX, while Nasdaq is working with Kraken on tokenized stocks.

Tokenization is thus evolving from experiment to infrastructure.

At the same time, an important dividing line is emerging within the crypto industry: tokens only work if they are at the center of a platform's economic architecture. Where this is not the case, equity could ultimately prove to be the more robust model.

You can invest in Hyperliquid via the following vehicle: $LIQD (+2,02%)

(Author: Jérémy Le Bescont, CoinShares Lead Content Manager)

$HYPE (+0,59%) (Hyperliquid) is a decentralized trading platform for perpetual futures (derivatives without a fixed maturity date that allow investors to speculate on price movements). The platform has achieved a clear product-market fit and is already generating significant turnover in relation to its valuation.

The business model is immediately value accretive for token holders, as 99% of protocol revenue from trading fees is used to buy back the native token. This reduces the circulating supply, which can support the token value.

The HIP-3 update also introduced the trading of tokenized shares - securities that are digitally represented on the blockchain. These are already recording solid trading volumes and extend the platform's value proposition beyond pure derivatives.

Hyperliquid is thus positioning itself as a revenue-generating blockchain application with considerable scaling potential, especially if other protocols adopt similar models. Investment is not only possible directly via the token, but also indirectly via exchange-traded products (ETPs) offered by specialized digital asset managers such as CoinShares - comparable to investments in Bitcoin or Ethereum.

You can invest in Hyperliquid via the following ticker $LIQD (+2,02%)