When you send or accept cryptocurrency, it's easy to think you're sidestepping the hidden costs of traditional finance. But behind every "instant" transfer lies a maze of gas fees, withdrawal charges, and profit margins that look a lot like the very system <a href="https://www.benzinga.com/money/what-is-defi">crypto promised to disrupt</a>.



Investor Kevin O'Leary recently <a href="https://www.benzinga.com/crypto/cryptocurrency/25/10/48272356/mr-wonderful-kevin-oleary-warns-crypto-investors-about-ethereums-scalability-issues-after-transaction-fees-spike-to-nine-month-highs">railed against the problem</a>. "Ethereum, the largest blockchain in the world, got congested and fees skyrocketed past $1,000 just to process small transactions," he said. "That's like paying a thousand-dollar toll to drive on a one-lane." 



His warning underscores the growing tension between crypto's promise of low-cost, decentralized finance and the reality of volatile transaction fees that can make even routine transfers prohibitively expensive. And as stablecoin adoption accelerates, those costs—and who profits from them—are becoming increasingly difficult to ignore.



<ul class="wp-block-list">
<li>See Also: <a href="https://www.benzinga.com/crypto/cryptocurrency/25/10/48134643/forget-bitcoin-ethereum-citis-stablecoin-bet-could-spark-a-1-9-trillion-boom-by-2030">Forget Bitcoin &amp; Ethereum — Citi&#8217;s Stablecoin Bet Could Spark A $1.9 Trillion Boom By 2030</a></li>
</ul>



<h3 class="wp-block-heading">What's Happening?</h3>



The new middlemen of crypto—exchanges, wallet providers, and blockchain networks—are quietly building complicated fee structures that rival those of traditional banks. Exchanges like Coinbase (NASDAQ:<a class="ticker" href="https://www.benzinga.com/quote/COIN">COIN</a>) and Binance charge transaction spreads and withdrawal fees; wallet apps add service or "network" charges; and blockchain networks, such as Ethereum, collect gas fees that fluctuate wildly with demand. 



In effect, users pay layers of tolls just to move their digital dollars from one address to another. As a result, there's a growing concern about hidden fees and the profit-driven ecosystem around them. 



<h3 class="wp-block-heading">Why Does It Matter?</h3>



You&#8217;re paying more. By comparison, a traditional cross-border bank transfer through systems like SWIFT or Western Union <a href="https://trolley.com/learning-center/reducing-cross-border-payment-fees-a-guide-for-finance-teams/">typically costs $15–$50</a> and takes a few days. It&#8217;s annoying, but the banks disclose the fees upfront. 



Stablecoins, like USDC, which are pegged to the value of the U.S. dollar, promise quicker transfers, but the reality is users often pay multiple layers of fees: 



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/money/ethereum-gas-fees">Network gas fees</a>.</li>



<li>Exchange transaction or withdrawal fees.</li>



<li>Additional charges to convert USDC back into dollars. </li>
</ul>



These costs can accumulate quickly. Sometimes they exceed the price of a traditional wire transfer, all while remaining opaque and unpredictable until the transaction is completed.



As more consumers shift toward digital assets, such as stablecoins, for remittances, investments, and everyday payments, fees associated with blockchain transactions, exchanges, and wallet withdrawals can quickly add up, often without users realizing the full extent of their costs.



<h3 class="wp-block-heading">Who's Involved?</h3>



<ul class="wp-block-list">
<li>Crypto Exchanges: Platforms like Coinbase, Binance, Gemini and Kraken facilitate the buying, selling, and transferring of stablecoins, often charging fees for each transaction. According <a href="https://alphapoint.com/blog/how-much-are-crypto-exchange-fees/#:~:text=Unfortunately%2C%20Coinbase%20trading%20fees%20are%20among%20the,to%200.05%25%20for%20transactions%20over%20$400%20million.">to</a> AlphaPoint, Coinbase&#8217;s trading fees are among the highest. </li>



<li>Blockchain Networks: Ethereum, which hosts stablecoins like USDC, imposes gas fees for every transaction, which fluctuate based on network congestion.</li>



<li>Wallet Providers: Companies offering digital wallets to store and send stablecoins, such as MetaMask or Coinbase&#8217;s Base app, may also charge fees for withdrawals or transfers.</li>



<li>Regulators: Government agencies, including the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), are beginning to focus on stablecoin regulation (i.e. <a href="https://www.benzinga.com/crypto/cryptocurrency/25/07/46508890/trump-signs-genius-act-ending-biden-era-crypto-probes-and-backing-industry-titans">the GENIUS Act</a>). Plus, U.S. crypto exchanges are requiring Social Security Numbers as part of their KYC (know your customer) procedures, in an effort to appease regulators. </li>



<li>The Trump Family: Subtract the rules and regulations, and you get bigger profits — <a href="https://www.benzinga.com/crypto/cryptocurrency/25/10/48260371/trump-family-reportedly-1-billion-in-profit-from-crypto-ventures">for them</a>. Suppose World Liberty Financial, pitched as a bridge between traditional finance and blockchain, grows at the scale President Trump and his sons hope. In that case, they&#8217;ll be collecting fees on a range of services (lending, borrowing, <a href="https://www.benzinga.com/crypto/cryptocurrency/25/10/48242166/eric-trump-teases-tokenization-plans-related-to-one-specific-building-chance-to-own-part-of-trump-tower">tokenization</a> and stablecoin issuance). </li>
</ul>



<h3 class="wp-block-heading">What's The Backstory?</h3>



Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>), Ethereum (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/eth/usd">ETH</a>), or cryptocurrencies in general, were meant to be less like banks, but the ecosystem built around them has recreated many of the same frictions—just in a different scheme.



Bitcoin, launched in 2009, promised peer-to-peer money free from centralized control, while Ethereum, launched in 2015, aimed to expand that freedom to programmable contracts and decentralized applications. In theory, both offered a way to send money and execute financial transactions without banks taking a cut. 



In practice, though, the ecosystem around them—exchanges, wallets, and blockchain validators—has recreated many of the same frictions. 



Gas fees, network congestion, and conversion charges mean that even "instant" stablecoin transfers can carry costs rivaling traditional banking, leaving users to navigate a new set of tolls in place of the old ones.. 



<h3 class="wp-block-heading">What's The Market Reaction?</h3>



Users are frustrated, and rightfully so. Little has changed since one Reddit user&#8217;s <a href="https://www.reddit.com/r/CryptoCurrency/comments/1c9hxqg/network_fees_are_a_bad_look_for_crypto_right_now/">complaint</a> was logged in 2023, calling fees &#8220;a terrible look for crypto.&#8221;



After trying to move just $60, the charge was $40. PayPal&#8216;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/quote/PYPL">PYPL</a>) Venmo, in contrast, is free, they said. 



&#8220;This is supposed to be the democratic currency owned by the common good and it should be almost free to transact with it at all times,&#8221; the user stated. &#8220;Imagine trying to [buy] a house and the network fees just happen to be &#8216;out of control&#8217; that week.&#8221;



<h3 class="wp-block-heading">What Happens Next?</h3>



As stablecoins and Ethereum-based transactions grow, the spotlight on fees and transparency is only getting brighter. Even O'Leary, an investor usually bullish on crypto, has warned that Ethereum congestion can drive up gas fees.



Lawmakers like Elizabeth Warren have also criticized opaque fee structures and the lack of consumer protections. Rarely do figures with such opposing perspectives find common ground. 



The next chapter for stablecoins may hinge on clearer regulation, smarter technology, and more accountability from exchanges and wallet providers—because until the costs come down, the dream of cheap, decentralized finance remains just that.



Now Read:



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/crypto/cryptocurrency/25/10/48269320/ripple-labs-is-leading-a-1-billion-fundraise-to-establish-xrp-centered-treasury-report">Ripple Labs Is Leading A $1 Billion Fundraise To Establish XRP-Centered Treasury</a></li>
</ul>



Image: Shutterstock

Crypto Replaced Banks With Middlemen In New Costumes: Here's How

Bitcoin rebounded on Friday afternoon after setting an early intraday low below $104,000.



<figure class="wp-block-table"><table class="has-fixed-layout"><tbody><tr><td>Cryptocurrency</td><td>Ticker</td><td>Price</td></tr><tr><td>Bitcoin</td><td>(CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>)</td><td>$106,795.15</td></tr><tr><td>Ethereum</td><td>(CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/eth/usd">ETH</a>)</td><td>$3,837.38</td></tr><tr><td>Solana</td><td>(CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/sol/usd">SOL</a>)</td><td>$183.59</td></tr><tr><td>XRP</td><td>(CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/xrp/usd">XRP</a>)</td><td>$2.30</td></tr><tr><td>Dogecoin</td><td>(CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/doge/usd">DOGE</a>)</td><td>$0.1850</td></tr><tr><td>Shiba Inu</td><td>(CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/shib/usd">SHIB</a>)</td><td>$0.059750</td></tr></tbody></table></figure>



Notable Statistics:



<ul class="wp-block-list">
<li>Coinglass data shows 255,556 traders were liquidated in the past 24 hours for $985.30 million.        </li>



<li>In the past 24 hours, top losers include Aave (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/aave/usd">AAVE</a>), Aster (CRYPTO: ASTER) and Monero (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/xmr/usd">XMR</a>).</li>
</ul>



Notable Developments:



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/crypto/cryptocurrency/25/10/48280591/is-bitcoin-at-106000-cheap-heres-how-you-can-tell">Is Bitcoin At $106,000 &#8216;Cheap&#8217;? Here&#8217;s How You Can Tell</a></li>



<li><a href="https://www.benzinga.com/crypto/cryptocurrency/25/10/48283226/peter-schiff-says-bitcoin-ethereum-crash-is-imminent-but-how-much-worse-can-it-get">Peter Schiff Says Bitcoin, Ethereum Crash Is &#8216;Imminent&#8217;—But How Much Worse Can It Get?</a></li>



<li><a href="https://www.benzinga.com/crypto/cryptocurrency/25/10/48269320/ripple-labs-is-leading-a-1-billion-fundraise-to-establish-xrp-centered-treasury-report">Ripple Labs Is Leading A $1 Billion Fundraise To Establish XRP-Centered Treasury: Report</a></li>



<li><a href="https://www.benzinga.com/crypto/cryptocurrency/25/10/48275894/bitfarms-stock-falls-as-convertible-notes-swell-to-500-million">Bitfarms Stock Falls As Convertible Notes Swell To $500 Million</a></li>



<li><a href="https://www.benzinga.com/crypto/cryptocurrency/25/10/48270634/anthony-scaramucci-was-willing-to-risk-his-business-for-bitcoin-during-the-2022-crypto-winter">Anthony Scaramucci Was &#8216;Willing&#8217; To Risk His Business For Bitcoin During The 2022 Crypto Winter</a></li>
</ul>



Trader Notes: MuroCrypto <a href="https://x.com/MuroCrypto/status/1979237373629059156">noted</a> Bitcoin closing above $108,500 would signal a bullish setup, while staying below keeps the outlook bearish. 



Current conditions, however, suggest that the bullish scenario remains possible.



Rekt Capital <a href="https://x.com/rektcapital/status/1979218018895851584">observed</a> that Bitcoin has been oscillating within its macro range this month. The market experienced a fake breakout above the range high, followed by a fake breakdown below the range low, reflecting ongoing indecision.



Castillo Trading highlighted that Bitcoin's weekly chart remains fairly bullish, adding that it would be surprising if the current move marks a market top.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Still a fairly bullish weekly chart for <a href="https://twitter.com/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$BTC</a> Would be shocked if that's how "the top" transpires. <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw">#Bitcoin</a> <a href="https://t.co/NuIst1ePgu">pic.twitter.com/NuIst1ePgu</a>&mdash; Castillo Trading (@CastilloTrading) <a href="https://twitter.com/CastilloTrading/status/1979244959095226626?ref_src=twsrc%5Etfw">October 17, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Crypto Tony <a href="https://x.com/CryptoTony__/status/1979226147201351870">suggested </a>a long position could be considered if the $107,800 resistance zone flips into support but cautioned that it could also be a bearish retest, emphasizing the need for patience.



Read Next:&nbsp;



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/crypto/cryptocurrency/25/10/48274260/bitcoin-plunges-to-105000-is-this-a-black-friday-in-the-making">Bitcoin Plunges To $105,000: Is This A Black Friday In The Making?</a></li>
</ul>



Image: shutterstock

Bitcoin, Ethereum, XRP, Dogecoin Rebound Ahead Of Weekend — Analysts Say Bullish Case Still Intact

Cardone Capital, led by U.S. real estate mogul Grant Cardone, confirmed the purchase of an additional 200 Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) this week, extending its aggressive accumulation during one of the crypto market's <a href="https://www.benzinga.com/crypto/cryptocurrency/25/10/48280591/is-bitcoin-at-106000-cheap-heres-how-you-can-tell">sharpest corrections of the year.</a>



<h3 class="wp-block-heading">Cardone Goes All-In With Fresh 200 Bitcoin Purchase</h3>



Cardone's latest acquisition follows last week's 300 BTC purchase, bringing the company's total to 500 BTC. 



The move, <a href="https://x.com/GrantCardone/status/1978867490311528620">disclosed</a> via Cardone's X account on Friday, underscores his long-term conviction in Bitcoin despite heightened market volatility.



Speaking with Bitcoin Magazine, Cardone <a href="https://www.youtube.com/watch?v=fVvEGoAH2No&amp;t=27s">explained</a> that traditional saving "erodes wealth over time" and framed Bitcoin as a superior store of value when paired with income-producing assets.&nbsp;



"I got to keep [my money] stored some place. Saving it doesn't keep it because it's going down in value," he said.



<h3 class="wp-block-heading">‘Renters Pay The Bitcoin Bill' Model Gains Traction</h3>



Cardone has developed a hybrid strategy that uses real estate cash flow to fund Bitcoin purchases, positioning renters as indirect contributors to digital-asset accumulation.&nbsp;



"Basically, our renters are buying the investors in a building Bitcoin," he said, describing a structure that currently allocates around 15% of fund assets to Bitcoin, with a long-term goal of achieving a 50/50 balance between real estate and digital assets.



This model, which Cardone calls a "real-world Bitcoin dollar-cost averaging system," has attracted attention from both property investors and crypto advocates for merging tangible cash flow with blockchain exposure.



<h3 class="wp-block-heading">Bridging Property Millions Into A $BTC Fortune</h3>



The billionaire investor emphasized that his approach maintains liquidity while building long-term exposure to Bitcoin.&nbsp;



"Bitcoin is an exciting store of value, but cash flow is essential," Cardone said, arguing that income from tenants can serve as a natural hedge against volatility.



He added that most investors entering Cardone Capital's funds "don't know anything about Bitcoin," making the structure a gateway to passive exposure.&nbsp;



The firm's integration of digital assets mirrors a growing institutional trend, where firms use operational income or reserves to accumulate Bitcoin during pullbacks.



Read next:  



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/analyst-stock-ratings/price-target/25/10/48278826/bny-mellon-ready-to-accelerate-as-profit-margins-climb">BNY Mellon Ready To Accelerate As Profit Margins Climb</a></li>
</ul>



Image: Shutterstock

Grant Cardone Buys 500 Bitcoin In The Dip: 'I Got To Keep My Money Stored Some Place'

Bitcoin's (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) downturn may be only beginning, according to veteran gold advocate Peter Schiff, who warns of an impending collapse across the broader crypto market as Bitcoin broke <a href="https://www.benzinga.com/money/bitcoin-price-prediction">to $106,000 today</a>.



What Happened: In his latest posts on X, Schiff <a href="https://x.com/PeterSchiff/status/1979178930662728082">noted</a> that Bitcoin has lost 34% of its value relative to gold since its August all-time high, underscoring the digital asset's sharp underperformance compared to the traditional safe-haven metal.



He suggested that Bitcoin's weakening relative strength signals that the downtrend could deepen further before any sustained recovery begins.



In another <a href="https://x.com/PeterSchiff/status/1979141335232790587">post</a>, Schiff predicted a severe downturn for both Bitcoin and Ethereum (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/eth/usd">ETH</a>), warning that the next phase of the bear market could trigger a cascade of failures throughout the crypto industry. 



He expects the crash to result in massive financial losses, bankruptcies, loan defaults, and widespread layoffs across crypto firms and service providers.



Also Read: <a href="https://www.benzinga.com/crypto/cryptocurrency/25/10/48274260/bitcoin-plunges-to-105000-is-this-a-black-friday-in-the-making">Bitcoin Plunges To $105,000: Is This A Black Friday In The Making?</a>



Why It Matters: Schiff's outlook implies a potential systemic crisis, where the collapse of major digital assets could destabilize exchanges, lenders, and DeFi protocols, leading to a broader market decimation extending beyond individual tokens.



He also tied his warning to the macro backdrop, <a href="https://x.com/PeterSchiff/status/1979131985860633019">noting</a> that U.S. investors are bracing for a replay of the 2008 financial crisis as regional bank stocks plunge amid loan losses and economic weakness.



However, Schiff argued that the real threat lies in a dollar crisis, fuelled by monetary instability and eroding global trust in the greenback's value.



Read Next:



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/crypto/cryptocurrency/25/10/48271640/bitcoin-plummets-5-ethereum-xrp-dogecoin-tumble-over-6-as-crypto-liquidations-top-1-billion">Bitcoin Plummets 5%, Ethereum, XRP, Dogecoin Tumble Over 6% As Crypto Liquidations Top $1 Billion</a></li>
</ul>



Image: Shutterstock

Peter Schiff Says Bitcoin, Ethereum Crash Is 'Imminent'—But How Much Worse Can It Get?

Wall Street shrugged off credit concerns that battered bank stocks on Wednesday, with large-cap indices posting slight gains by midday trading in New York, setting up for <a href="https://www.benzinga.com/markets">a positive weekly close.</a>



 • AXP is among today&#8217;s top performers. <a href="https://www.benzinga.com/quote/AXP" target="_blank" rel="noreferrer noopener">Watch the momentum here.</a>



The S&amp;P 500 rose 0.2% to 6,650 points, nearly erasing Thursday's losses, while both the Nasdaq 100 and the Dow Jones edged 0.3% higher.



After suffering their worst day since April on Wednesday, financials and bank stocks rebounded. The SPDR Regional Banking ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/quote/KRE">KRE</a>) climbed 1.1%, while the Financials Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/quote/XLF">XLF</a>) added 0.5%.



President Donald Trump said the U.S. is "going to do fine with China," indicating that the extra 100% tariff on Chinese goods he threatened to impose at the start of November was "not sustainable," but added that Beijing had "forced him into this position" and the levies "could stand."



American Express Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/quote/AXP">AXP</a>) was the day's top gainer, with shares jumping 6.2% on stronger-than-expected earnings and upbeat guidance.



Oracle Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/quote/ORCL">ORCL</a>) dropped more than 6%, leading losses within the S&amp;P 500, after the company announced highly ambitious growth targets for its AI cloud division — a move that drew skepticism from Wall Street analysts.



Gold's relentless rally came to a halt Friday, with the yellow metal plunging 3% to $4,200 per ounce amid profit-taking. Silver slumped 5.9% to $50.90.



Risk-off sentiment extended to crypto markets. Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) fell 1.6% to $106,000, marking its fourth straight session of losses, while Ethereum (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/eth/usd">ETH</a>) dropped 2.5% to $3,800.



<h2 class="wp-block-heading">Friday&#8217;s Performance In Major U.S. Indices, ETFs</h2>



<figure class="wp-block-table is-style-stripes"><table class="has-fixed-layout"><tbody><tr><td>Major Indices </td><td>Price</td><td>1-day %</td></tr><tr><td>Dow Jones</td><td>46,036.97</td><td>0.3%</td></tr><tr><td>Nasdaq 100</td><td>24,695.46</td><td>0.3%</td></tr><tr><td>S&amp;P 500</td><td>6,632.91</td><td>0.2%</td></tr><tr><td>Russell 2000</td><td>2,435.86</td><td>-1.2%</td></tr></tbody></table><figcaption class="wp-element-caption">Updated by 1:10 p.m. ET</figcaption></figure>



According to&nbsp;<a href="https://www.benzinga.com/pro/?utm_source=BZprocontent&amp;t=be2bearmibe3na1">Benzinga Pro</a>&nbsp;data:



<ul class="wp-block-list">
<li>The&nbsp;Vanguard S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/quote/VOO">VOO</a>) edged 0.2% higher to $608.21.</li>



<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/quote/DIA">DIA</a>) rose 0.2% to $460.52.</li>



<li>The tech-heavy&nbsp;Invesco QQQ Trust Series&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/quote/QQQ">QQQ</a>) inched 0.2% up to $601.32.</li>



<li>The&nbsp;iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/quote/IWM">IWM</a>) dropped 1.2% $242.22.</li>



<li>The Consumer Staples Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/quote/XLP">XLP</a>) outperformed, up 0.5%; the Utilities Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/quote/XLU">XLU</a>) lagged, down 0.6%.</li>
</ul>



<h2 class="wp-block-heading">Friday&#8217;s Earnings Movers</h2>



<ul class="wp-block-list">
<li>American Express Company up 6.3%</li>



<li>Interactive Brokers Group, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/quote/IBKR">IBKR</a>) down 3.1%</li>



<li>CSX Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/quote/CSX">CSX</a>) up 2.8%</li>



<li>Truist Financial Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/quote/TFC">TFC</a>) up 3.4%</li>



<li>SLB N.V. (NYSE:<a class="ticker" href="https://www.benzinga.com/quote/SLB">SLB</a>) down 2.5%</li>



<li>State Street Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/quote/STT">STT</a>) down 3.3%</li>



<li>Fifth Third Bancorp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/quote/FITB">FITB</a>) up 1.1%</li>



<li>Huntington Bancshares Incorporated (NASDAQ:<a class="ticker" href="https://www.benzinga.com/quote/HBAN">HBAN</a>) up 0.7%</li>



<li>Regions Financial Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/quote/RF">RF</a>) down 0.2%</li>



<li>Ally Financial Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/quote/ALLY">ALLY</a>) up 2.1%</li>



<li>Comerica Incorporated (NYSE:<a class="ticker" href="https://www.benzinga.com/quote/CMA">CMA</a>) up 1.4%</li>



<li>Webster Financial Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/quote/WBS">WBS</a>) down 0.4%</li>
</ul>



Read now:



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/markets/economic-data/25/10/48275960/wealthy-households-expected-to-drive-nearly-all-gains-of-christmas-spending">A Rare Holiday Spending Boom Is Coming—But Only For The Wealthy</a></li>
</ul>

Stocks Shrug Off Bank Fears, AMEX Jumps: What's Moving Markets Friday?

The U.S. Securities and Exchange Commission (SEC) has indicated uncertainty regarding whether recent filings for highly leveraged ETFs, such as <a href="https://www.benzinga.com/etfs/specialty-etfs/25/10/48239861/bitcoin-ethereum-tesla-on-5x-steroids-volatilityshares-seeks-sec-approval-for-its-wildest-ride-yet?utm_source=coingecko&amp;utm_campaign=partner_feed&amp;utm_medium=partner_feed&amp;utm_content=site">Volatility Shares&#8217; planned 5x products</a>, would be approved, raising new questions about leverage limits in the U.S. market.



 • MSTR stock is moving in positive territory. <a href="https://www.benzinga.com/quote/MSTR" target="_blank" rel="noreferrer noopener">Watch the momentum here.</a>



Since the U.S. government shutdown, the SEC has seen a flood of 3x and 5x leveraged equities seeking ETF registration statements, said Brian Daly, director of the SEC&#8217;s division of investment management, according to Reuters. Daly said that it is uncertain whether these ETFs would be in compliance with the Derivatives Rule (Rule 18f-4), which primarily caps leverage at 2x.



Volatility Shares submitted on Wednesday for 27 extremely<a href="https://www.benzinga.com/etfs"> leveraged ETFs</a>, which include the first-ever to propose a 5x ETF in the U.S. market. The 5x target implies that the fund would seek to quintuple the day&#8217;s return on an underlying stock or asset, a dramatic increase from the 2x limit previously sanctioned for single-stock leveraged ETFs. Among the new leveraged ETFs are those tied to Bitcoin, Tesla and Strategy.



If sanctioned, the suite would consist of 27 products across 3x and 5x leverage levels, effective as of Dec. 29, making them perhaps the riskiest&nbsp;<a href="https://www.benzinga.com/crypto" target="_blank" rel="noreferrer noopener">crypto-tied products</a>&nbsp;offered to American investors.



ETF specialists warn that such extreme leverage poses tremendous risks. Analysts pointed out that among such ETFs that were launched more than three years ago, over half have closed and 17% have lost over 98% of their value over their lives.



Amplifying returns also amplifies losses, and broad-based selling from leveraged ETFs can exacerbate market declines, as seen last week when $26 billion of ETF selling added to a market sell-off triggered by U.S.–China trade tensions.



The filings arrive during a period when the SEC is working with skeletal personnel because of the shutdown, which restricts its capacity to read filings, pursue misconduct, and police markets.



Volatility Shares&#8217; filings, which cover both 3x and 5x ETFs tied to Bitcoin treasury trailblazer Strategy Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/quote/MSTR">MSTR</a>), are set to take effect 75 days after filing. According to analysts, while this SEC management has been more open to creative approaches, 5x leveraged single-stock ETFs can push regulatory boundaries.



For investors, the developments highlight both the promise and the danger of excessive leverage. While there is potential for outsized gains, the combination of compounding that occurs on a daily basis, volatile underlying assets and limited regulatory scrutiny might make these products among the most risky in U.S. markets.



Read Next: 



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/etfs/sector-etfs/25/10/48277713/is-crisis-brewing-again-regional-bank-etf-flashes-red-as-shutdown-reaches-week-3">Is Crisis Brewing Again? Regional Bank ETF Flashes Red As Shutdown Reaches Week 3</a></li>
</ul>



Photo: Shutterstock

5x Tesla, Bitcoin, Strategy ETFs In Doubt As SEC Signals Uncertainty During Shutdown

Bitcoin's (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) weakness is raising concerns that the crypto market is increasingly dominated by short-term trading, <a href="https://www.benzinga.com/money/bitcoin-price-prediction">impacting price performance</a>.



What Happened: In a detailed <a href="https://x.com/Pentosh1/status/1978822437165748353">post</a> on X on Friday, prominent trader Pentoshi highlighted Bitcoin's critical levels:



<ul class="wp-block-list">
<li>$108,000–$109,000 to the downside</li>



<li>$115,000–$116,000 for continuation to new highs</li>
</ul>



He noted that temporary dips below support may be tradable within minutes or hours, but sustained breaches could open the door to $98,000, putting altcoins at risk.



Pentoshi emphasized that Bitcoin can appear "expensive" or "cheap" at the same price, depending on whether it is retesting from above or below. 



He recommends staying neutral and adaptable, ready to trade in either direction based on market behaviour.



Given thinner order books and overall market weakness, he advised reduced trade sizes while awaiting a decisive move. 



Compared to other markets, crypto has been far weaker, with stocks and commodities drifting higher while altcoins remain largely stagnant.



Also Read: <a href="https://www.benzinga.com/crypto/cryptocurrency/25/10/48274260/bitcoin-plunges-to-105000-is-this-a-black-friday-in-the-making">Bitcoin Plunges To $105,000: Is This A Black Friday In The Making?</a>



Why It Matters: Pentoshi explained that the crypto market is dominated by short-term trading cycles. 



Sustained moves in altcoins are rare, with narratives often reversing within two weeks. 



Thin liquidity limits upside potential, while downside risk remains high, with some assets at risk of dropping to zero.



For altcoins to see meaningful gains, key support and resistance levels must be reclaimed, though timing remains uncertain.



Read Next:



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/crypto/cryptocurrency/25/10/48271640/bitcoin-plummets-5-ethereum-xrp-dogecoin-tumble-over-6-as-crypto-liquidations-top-1-billion">Bitcoin Plummets 5%, Ethereum, XRP, Dogecoin Tumble Over 6% As Crypto Liquidations Top $1 Billion</a></li>
</ul>



Image: Shutterstock

Is Bitcoin At $106,000 'Cheap'? Here's How You Can Tell

Dogecoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/doge/usd">DOGE</a>) and Shiba Inu (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/shib/usd">SHIB</a>) are fading in momentum, while a little-known meme coin called Ark of Panda (AOP) is seizing the spotlight with surging Binance Alpha volume and a breakout setup that traders say could fuel a 300% run.



<h3 class="wp-block-heading">Chart Signals Point To Explosive Breakout</h3>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="694" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/10/17120832/image-467-1024x694.png" alt="" class="wp-image-1120093" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/10/17120832/image-467-1024x694.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/10/17120832/image-467-300x203.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/10/17120832/image-467-768x520.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/10/17120832/image-467-1536x1040.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/10/17120832/image-467.png 2048w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>



<a href="https://in.tradingview.com/symbols/AOPUSD/">AOP 300% Moonlight Potential (Source: TradingView)</a>



On the hourly chart, AOP is consolidating inside a descending resistance structure while holding firm above its $0.078–$0.077 liquidity base.&nbsp;



The token trades near $0.08, pressing against the downtrend line, with resistance between $0.0825–$0.0830.



RSI has stabilized around 45, while the major EMAs are tightly clustered near $0.081–$0.082, signaling compression ahead of a volatility breakout.



A confirmed move above $0.083 could open a path toward $0.10, followed by possible extensions to $0.15 and $0.20 — a move that would represent a potential 300% rise.&nbsp;



Failure to defend the $0.077 base, however, could expose deeper liquidity zones near $0.074.



<h3 class="wp-block-heading">Binance Alpha Incentives Trigger $5.8 Billion AOP Volume Surge</h3>



AOP's 24-hour trading volume surpassed $5.8 billion on Binance Alpha, <a href="https://coinmarketcap.com/exchanges/binance-alpha/">accounting</a> for roughly 70% of total exchange turnover.&nbsp;



The spike coincided with Binance's short-term incentive program rewarding users with leaderboard points for high-frequency trades and limit order volume.



Quadruple point multipliers for certain order types encouraged rapid turnover, creating a feedback loop that inflated activity.&nbsp;



Analysts caution that while the incentives boosted reported liquidity, they may not reflect sustained demand once the campaign ends.



<h3 class="wp-block-heading">Whale Supply Concentration Could Spark Violent AOP Price Swings</h3>



Only 300 million tokens are <a href="https://coinmarketcap.com/currencies/ark-of-panda/">currently</a> in circulation from a 2 billion total supply as per CoinMarketCap.&nbsp;



Concentrated ownership increases volatility potential, with a small number of large holders able to influence short-term price moves.



This thin market structure means even modest selling could trigger outsized corrections, particularly if exchange activity cools once incentive-driven demand fades.



Read next:  



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/analyst-stock-ratings/price-target/25/10/48278826/bny-mellon-ready-to-accelerate-as-profit-margins-climb">BNY Mellon Ready To Accelerate As Profit Margins Climb</a></li>
</ul>



Image: Shutterstock

DOGE And SHIB Are Done — Another Meme Coin Could Soon See 300% Upside

Cardano (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/ada/usd">ADA</a>) is down 9% on Friday, while XRP (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/xrp/usd">XRP</a>) performed marginally better with a 7% decline.



<a href="https://www.benzinga.com/crypto/cryptocurrency/25/10/48269320/ripple-labs-is-leading-a-1-billion-fundraise-to-establish-xrp-centered-treasury-report">Ripple's billion-dollar digital asset treasury</a> raise may be a factor as wider crypto markets reel from heavy liquidations.



<h3 class="wp-block-heading">ADA Price Crashes Through Support As $0.55 Target Looms</h3>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="694" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/10/17095741/photo_6309826490413026506_w-1024x694.jpg" alt="" class="wp-image-1119854" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/10/17095741/photo_6309826490413026506_w-1024x694.jpg 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/10/17095741/photo_6309826490413026506_w-300x203.jpg 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/10/17095741/photo_6309826490413026506_w-768x520.jpg 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/10/17095741/photo_6309826490413026506_w-1536x1040.jpg 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/10/17095741/photo_6309826490413026506_w.jpg 2048w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>



<a href="https://in.tradingview.com/symbols/ADAUSD/">ADA Price Analysis (Source: TradingView)</a>



ADA fell to $0.61 after failing to defend its $0.74–$0.79 EMA cluster, breaking below the wedge structure that has guided price action through 2025. 



The move marks a major test of the ascending trendline dating back to January.



A daily close below $0.62 would confirm a structural breakdown, exposing targets near $0.55 and $0.50, both prior liquidity zones.&nbsp;



Technical readings show momentum remains under bearish control, with all major EMAs stacked above current price.



The Supertrend line near $0.81 further reinforces resistance.&nbsp;



Bulls would need to reclaim $0.68–$0.70 quickly to shift sentiment, though current bias remains tilted toward further downside into November.



<h3 class="wp-block-heading">XRP Holds The Line At $2.20</h3>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="694" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/10/17095907/photo_6309826490413026507_w-1024x694.jpg" alt="" class="wp-image-1119858" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/10/17095907/photo_6309826490413026507_w-1024x694.jpg 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/10/17095907/photo_6309826490413026507_w-300x203.jpg 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/10/17095907/photo_6309826490413026507_w-768x520.jpg 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/10/17095907/photo_6309826490413026507_w-1536x1040.jpg 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/10/17095907/photo_6309826490413026507_w.jpg 2048w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>



<a href="https://in.tradingview.com/symbols/XRPUSD/">XRP Technical Analysis (Source: TradingView)</a>



After slipping to $2.18, XRP rebounded to $2.27, maintaining its long-term ascending trendline.



The pattern remains a symmetrical triangle, with support near $2.20 and resistance capped by a descending trendline from July's $3.20 high.



Decisive break below $2.20 could send XRP toward $2.00, while resistance between $2.64–$2.78—defined by the 50-day and 100-day EMAs, remains a barrier for bulls.



A close above $2.91 would confirm trend reversal and restore upward momentum.



<h3 class="wp-block-heading">Ripple's $1B Crypto Treasury Becomes Lifeline For XRP Investors</h3>



Ripple's new $1 billion digital-asset treasury (DAT) plan has provided a near-term anchor for XRP. 



This initiative mirrors corporate accumulation strategies used by Strategy Inc. and Metaplanet, emphasizing long-term institutional exposure to blockchain assets.



The announcement coincides with heavy market liquidations, totaling nearly $19 billion across crypto this week, led by altcoin losses.&nbsp;



Ripple's effort, combined with its $1 billion acquisition of GTreasury, represents a coordinated push to deepen liquidity and expand XRP's role in institutional payments.



<h3 class="wp-block-heading">Outlook</h3>



The divergence between ADA and XRP highlights a split in market sentiment.&nbsp;



ADA price has entered clear bearish territory after breaching $0.62, while XRP continues to find footing above its structural support at $2.20.



If ADA fails to recover above $0.68, further losses toward $0.55 and $0.50 appear likely.&nbsp;



For XRP, sustained stability above $2.20 could allow consolidation, with the next bullish confirmation requiring a breakout over $2.78–$2.91.



Read Next: 



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<li><a href="https://www.benzinga.com/trading-ideas/long-ideas/25/10/48271751/how-to-earn-500-a-month-from-steel-dynamics-stock-ahead-of-q3-earnings">How To Earn $500 A Month From Steel Dynamics Stock Ahead Of Q3 Earnings</a></li>
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Image: Shutterstock

Cardano, XRP Down 9% 'Black Friday' But Ripple's $1B XRP Treasury Plans Give Bulls Hope

Bitfarms Ltd. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/quote/BITF">BITF</a>) shares extended their decline Friday after the company<a href="https://www.benzinga.com/pressreleases/25/10/g48267187/bitfarms-announces-pricing-of-upsized-us-500-million-of-convertible-senior-notes"> boosted its convertible notes </a>offering to $500 million, expanding a deal announced a day earlier that had already pressured the stock. 



The move underscores investor interest in the company's debt despite recent turbulence in the Bitcoin mining sector.



 • BITF is having a challenging session. <a href="https://www.benzinga.com/quote/BITF" target="_blank" rel="noreferrer noopener">Get the complete analysis here.</a>



The new issue consists of $500 million in 1.375% convertible senior notes due 2031, with an option for initial buyers to purchase up to an additional $88 million, bringing the potential total to $588 million. The transaction is expected to close around Oct. 21, subject to standard approvals.



The notes carry an annual interest rate of 1.375%, payable semiannually starting in July 2026, and mature on Jan. 15, 2031. Holders can convert the notes into Bitfarms stock at a rate of roughly 145.69 shares per $1,000 of principal, equal to a conversion price of about $6.86 per share — representing a 30% premium to Thursday's Nasdaq close of $5.28.



Also Read: <a href="https://www.benzinga.com/etfs/sector-etfs/25/10/48227893/bitfarms-300m-ai-pivot-sparks-etf-rethink-can-blockchain-funds-handle-the-ai-boom">Bitfarms&#8217; $300M AI Pivot Sparks ETF Rethink: Can Blockchain Funds Handle The AI Boom?</a>



Proceeds from the offering will fund general corporate purposes and the purchase of capped call transactions aimed at limiting potential dilution. Those capped calls are initially set at $11.88 per share, or 125% above the stock's last closing price.



The company said banks and financial institutions facilitating the capped calls may engage in hedging or derivative transactions involving Bitfarms shares, which could add to near-term volatility.



Shares have come under sustained pressure this week as investors weigh the impact of the <a href="https://www.benzinga.com/trading-ideas/movers/25/10/48254154/bitfarms-bitf-stock-is-sliding-thursday-whats-going-on">capital raise</a> on existing equity holders. Bitfarms, which operates energy-efficient data centers across North America, continues to expand its infrastructure for high-performance computing and Bitcoin mining.



The stock has a 52-week high of $6.60 and a low of 67 cents. It remains up about 231% year-to-date and trades roughly 118% above its 50-day simple moving average, reflecting strong momentum in tandem with Bitcoin's rebound this year.



BITF Price Action: Bitfarms shares are trading 6.63% lower at $4.93 at publication on Friday.



Read Next: 



 • <a href="https://www.benzinga.com/crypto/cryptocurrency/25/10/48271640/bitcoin-plummets-5-ethereum-xrp-dogecoin-tumble-over-6-as-crypto-liquidations-top-1-billion">Bitcoin Plummets 5%, Ethereum, XRP, Dogecoin Tumble Over 6% As Crypto Liquidations Top $1 Billion</a>



Photo: Shutterstock

Bitfarms Stock Falls As Convertible Notes Swell To $500 Million

Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) is in a reset phase, with the largest crypto liquidation event in years and weakening ETF inflows prompting bearish <a href="https://www.benzinga.com/crypto/cryptocurrency/25/10/48235901/bitcoin-struggles-at-111000-as-ethereum-xrp-dogecoin-sentiment-dips-to-fear">sentiment among investors</a>.



What Happened: Bitcoin hit a new all-time high above $126,000 in early October before reversing sharply due to escalating U.S.–China tariff concerns, causing a historic $19 billion futures deleveraging, one of the largest in crypto history. 



Glassnode data <a href="https://insights.glassnode.com/the-week-onchain-week-41-2025/">shows</a> the reset is characterized by reset leverage, cautious sentiment, and reliance on renewed demand for recovery:



ETF &amp; Market Dynamics:



<ul class="wp-block-list">
<li>SoSoValue data <a href="https://sosovalue.xyz/zh/assets/etf">shows</a> U.S. spot Bitcoin ETFs recording $536.4 million in net outflows on Thursday. Ark &amp; 21Shares led with a $275.15 million outflow, followed by Fidelity.</li>



<li>Spot markets saw high volumes: Binance dominated by selling, while Coinbase showed net buying, suggesting institutional absorption.</li>



<li>ETF inflows weakened, turning slightly negative (–2.3K BTC this week), signaling demand fragility without panic.</li>
</ul>



On-Chain Insights:



<ul class="wp-block-list">
<li>BTC retraced below the $117,000–$114,000 supply cluster, where top holders are now at a loss.</li>



<li>Price currently sits in the 0.85–0.95 quantile range ($108,400–$117,100); failure to hold above $108,000 could indicate deeper structural weakness.</li>



<li>Long-term holders continue distributing (~0.3 million BTC sold since July 2025), adding sell-side pressure and constraining upside momentum.</li>
</ul>



Also Read: <a href="https://www.benzinga.com/crypto/cryptocurrency/25/10/48260220/this-bitcoin-bear-market-will-be-brutal-peter-schiff-claims-as-gold-hits-4290">&#8216;This Bitcoin Bear Market Will Be Brutal&#8217;, Peter Schiff Claims As Gold Hits $4,290</a>



Futures &amp; Options Market:



<ul class="wp-block-list">
<li>Futures open interest has collapsed by over $10 billion, a deleveraging event comparable to May 2021 and the FTX crash in 2022.</li>



<li>Open interest has rebuilt rapidly to near all-time highs, reflecting quick repositioning.</li>



<li>Technical indicators show heavy demand for short-term downside protection, while long-dated options remain relatively stable.</li>
</ul>



Read Next:



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<li><a href="https://www.benzinga.com/crypto/cryptocurrency/25/10/48271640/bitcoin-plummets-5-ethereum-xrp-dogecoin-tumble-over-6-as-crypto-liquidations-top-1-billion">Bitcoin Plummets 5%, Ethereum, XRP, Dogecoin Tumble Over 6% As Crypto Liquidations Top $1 Billion</a></li>
</ul>



Image: Shutterstock

Bitcoin Plunges To $105,000: Is This A Black Friday In The Making?

I've looked into the financial markets for over two decades, from the dot-com bubble to the global financial crisis, from the rise of passive ETFs to the wild west of crypto winters. But nothing in my career has felt quite as structurally precarious as the current collapse of the digital asset treasury company (DATC) model. It's not just a market correction. It's the implosion of a financial illusion built on leverage, narrative, and a dangerous assumption that arbitrage would hold forever. Today, the numbers speak for themselves: market-to-Net Asset Value (mNAV) ratios, the very heartbeat of these firms, are collapsing. Strategy, once the gold standard, now trades near an mNAV of 1.5. That might sound healthy until you realize it's a steep discount from the 3x, 4x, even 5x premiums it once commanded. Worse, companies like Bitmine Immersion and SharpLink have already dipped below 1.0, meaning their stock prices are now less than the value of the Bitcoin or Ethereum they claim to hold. In plain terms, you could buy their shares, liquidate the company, and walk away with more crypto than the market is currently pricing in. That's not a bargain, it's a red flag waving violently in a hurricane.



Why is this happening? Because the model is breaking. Not bending. Breaking. And the cracks are spreading fast.



At the core of the rot is nonstop dilution. These companies rely heavily on At-The-Market (ATM) equity programs to raise capital. The idea was elegant in theory: when the stock trades above NAV, issue new shares, use the proceeds to buy more BTC or ETH, and watch the cycle compound. But in practice, it's a self-cannibalizing machine. Every time they flood the market with new shares, Forward Industries, for instance, has an ATM program sized at $4 billion, the share price gets hammered by supply overload. This happens even as their crypto holdings grow. The result? A paradoxical situation where the company's balance sheet strengthens while its equity valuation weakens. Retail investors, who bought in expecting to ride the coattails of Bitcoin's rallies, are instead watching their holdings lag, or worse, decline, while BTC soars. Confidence evaporates. They exit. And that retail selling, combined with relentless dilution, creates a textbook death spiral: more shares issued, lower price per share, wider mNAV discount, more retail panic, even more pressure to raise capital via dilution. The gap between asset value and market perception doesn't just widen; it yawns open like a fault line.



So what can these firms do? The options are grim, and none are sustainable without fundamental change.



One path is issuing high-yield preferred shares. On the surface, it sounds attractive: offer 8%, 10%, even 12% to lure yield-hungry investors back. But let's be brutally honest, how does a company with no real revenue, no operating profits, and a stated mission to hold crypto forever generate the cash to pay that yield? The only liquid asset they have is the very Bitcoin or Ethereum they swore never to sell. To pay a dividend would be to betray their core thesis and signal desperation. It's a non-starter.



Another idea is share buybacks. In normal markets, buybacks are a powerful tool to support valuation and signal confidence. But these companies don't have cash reserves. They survive on new issuance. Their entire financial engine runs on selling equity to buy crypto. Where would the money for buybacks come from? It's like trying to fill a bucket with a hole in the bottom using water from the same bucket. The math simply doesn't work.



That leaves the nuclear option: direct redemptions. Allow shareholders to exchange their stock for the underlying BTC or ETH at NAV. This would instantly restore mNAV parity. No more discount. No more illusion. But this move would effectively transform these entities into exchange-traded funds. And that's a regulatory line they cannot cross. The SEC has spent years carefully approving spot Bitcoin and Ethereum ETFs under strict custody, transparency, and investor protection rules. A backdoor redemption mechanism would trigger immediate regulatory intervention, likely a halt in trading, enforcement actions, or forced restructuring. The moment they offer redemptions, they're no longer a strategic treasury; they're an unregistered investment company. The legal risk is existential.



This entire house of cards was built on a playbook pioneered by Michael Saylor's Strategy, which raised $27 billion to accumulate Bitcoin. The market rewarded it with massive premiums because it was first, credible, and operated with a degree of transparency. But imitation is not innovation. Companies like Metaplanet in Japan tried to copy the model, and dozens more rushed in, believing the premium was a permanent feature, not a temporary anomaly of early-mover advantage and market euphoria. Now, as the arbitrage breaks, when the stock no longer reliably tracks or outperforms the underlying asset, the cycle ends. These firms weren't Bitcoin treasuries. They were volatility wrappers. And every wrapper, no matter how shiny, eventually unwinds.



But the deeper, more troubling truth is how these companies are born and funded. This isn't public finance as we know it. It's a shadow system of corporate alchemy.



The creation process bypasses traditional IPO safeguards entirely. There are three dominant playbooks, all designed for speed and opacity. The first is the reverse merger: find a dying public shell, no revenue, few shareholders, trading on fumes, take control, rebrand, and emerge as a digital asset treasury. TRON did this with SRM Entertainment. Janover became DeFi Development Corp. overnight. The second is the SPAC route: merge with a special purpose acquisition company that's already public, clean, and hungry for a deal. The third is the silent takeover: quietly buy 51% of a microcap stock from insiders or on the open market, stage a board coup, and pivot the company's entire identity without a formal merger filing. Over 30 companies in 2025 alone have used one of these three models. The infrastructure is now industrialized. You don't need a product, a team, or a track record. You just need legal control of a broken ticker and a compelling crypto narrative.



Funding follows the same pattern of opacity. These aren't startups raising from VCs based on technology or traction. They're capital markets machines built to convert stock price hype into crypto holdings. They use three high-speed mechanisms. First, PIPEs, Private Investment in Public Equity deals, where institutional insiders buy large blocks of stock at a steep discount, behind closed doors. TRON raised $100 million this way. Strive Asset Management pulled in $750 million. Forward Industries secured $1.65 billion for Solana plays alone. These aren't seed rounds, they're pre-arranged liquidity events for insiders.



Second, convertible notes: debt instruments that convert into equity if the stock price rises. GameStop raised $2.7 billion this way to buy Bitcoin. Nano Labs prepped $500 million for BNB. It's debt disguised as equity, a ticking time bomb of future dilution that explodes the moment the stock rallies.



Third, ATM programs, which we've already discussed. The reflexive loop is clear: hype the narrative, stock trades above NAV, sell shares, buy crypto, re-hype, repeat. It's a closed loop that works beautifully, until it doesn't. And when it breaks, retail investors are left holding the bag.



This brings us to the most corrosive element of all: insider trading isn't an exception in this space, it's the operating model. Information leaks at every stage. Legal firms drafting merger documents. Exchanges prepping wallet integrations. Advisors whispering to favored funds. But the most egregious leaks happen during roadshows, the private investor meetings that precede public announcements. SharpLink's stock was flat until day two of its roadshow. Then, it spiked 1,000% before the deal even closed. That's not organic market discovery. That's privileged information being weaponized. Insiders get in early, often for pennies, then dump on retail once the hype hits social media. This is the new digital IPO: no lockups, minimal disclosure, zero accountability.



I have seen cycles come and go, I'm deeply skeptical that this model survives another bull run. The structural flaws are too severe, the incentives too misaligned, the regulatory risks too high. The mNAV collapse is the market's verdict: these wrappers add cost, risk, and opacity without delivering the promised premium. If mNAV stays below 1, the illusion is over. There's no magic. No alchemy. Just underperforming shells trading at a discount to the very assets they're supposed to represent.



To founders, traders, and investors: if you're not asking who minted the company, who funded it in private, and who front-ran the announcement, you're not an investor, you're exit liquidity. And in this game, the house always wins. Until it doesn't.



Benzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga&#8217;s reporting and has not been edited for content or accuracy.

The Treasury Trap: How Crypto-Backed Stocks Are Trading Below Their Own Assets

For years, crypto sought validation from the financial establishment. Now, one of TradFi's most iconic institutions is inching onto its turf. Nasdaq (NASDAQ:<a class="ticker" href="https://www.benzinga.com/quote/NDAQ">NDAQ</a>) has <a href="https://www.nasdaq.com/newsroom/qa-nasdaqs-new-proposal-tokenized-securities" rel="nofollow">asked the SEC</a> for permission to list tokenized shares – digital replicas of ordinary equities recorded on a blockchain. Each token would be backed one-for-one by a traditional share, carrying the same rights to dividends and ownership. The difference lies in the wrapper: a programmable asset that, in theory, can trade around the clock, settle instantly and move across borders without the usual chain of intermediaries.



Opinion is divided. Supporters hail it as the clearest sign yet that blockchain infrastructure is maturing. Critics see a glossy solution in search of a problem. America's equity markets already <a href="https://www.nasdaqtrader.com/Trader.aspx?id=DailyMarketSummary" rel="nofollow">clear trades in two days</a> and offer ample liquidity. Yet symbolism matters. For Nasdaq, which white-labels its trading tech and rents it to crypto platforms (while keeping its main exchange firmly traditional), the move marks a shift from arm's-length experimentation to direct participation. 



It comes as the agency&#8217;s new overseers <a href="https://www.sec.gov/newsroom/speeches-statements/atkins-keynote-address-inaugural-oecd-roundtable-global-financial-markets-091025" rel="nofollow">soften their tone</a>. Gary Gensler, the SEC's past chairman, was notoriously hostile toward crypto trading venues, but even he conceded that distributed-ledger technology might have a role in traditional finance, provided it stays tightly controlled. Nasdaq's proposal, with its insistence on regulated custody and a permissioned network, is designed to slot neatly into those constraints.



<h2 class="wp-block-heading">Mainstreaming the chain</h2>



Institutional momentum plays a part. The digital-assets market is recovering from its 2022 implosion, with the success of spot bitcoin exchange-traded funds and pilot tokenization schemes by BlackRock and JPMorgan signalling a new phase of experimentation. Nasdaq seems determined not to miss this shift, remembering that legacy exchanges once hesitated over electronic trading only to find themselves playing catch-up.



The arguments for tokenization of real-world assets (RWA) are <a href="https://www.benzinga.com/markets/cryptocurrency/25/04/44902294/rwa-tokenization-could-be-cryptos-killer-app-is-there-a-place-for-it-in-your-portfolio" rel="nofollow">well understood</a>: cut out settlement delays, enable fractional share ownership, and reduce the friction of cross-border trading. In practice, a lot depends on trust in the underlying plumbing: the smart contracts, custodians and networks that would support the tokens. 



Tokenized assets may be modern in form but still need traditional gatekeepers. That tension between the crypto ideal of decentralization and Wall Street's preference for control, sits at the heart of the project. DeFi purists will see little to celebrate in a system that keeps the old intermediaries in place, only with blockchain as a new coat of paint.



<h2 class="wp-block-heading">A controlled revolution</h2>



Nasdaq isn't alone. Switzerland's SIX Digital Exchange, Germany's Deutsche Börse and the London Stock Exchange Group are all testing tokenized platforms. Singapore's Project Guardian brings central bankers and asset managers together to experiment with tokenised bonds and funds. Yet none carry the same symbolic weight. If Nasdaq, a byword for mainstream finance, persuades the SEC that on-chain equities can sit comfortably within existing rules, it will signal that tokenization <a href="https://x.com/TheRealTRTalks/status/1974133944162390370?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1974133944162390370%7Ctwgr%5E8561fbd3756337b4455e3ba2839a32f61c161138%7Ctwcon%5Es1_c10&amp;ref_url=https%3A%2F%2Fwww.techopedia.com%2Fnasdaq-tokenized-stocks-future" rel="nofollow">has graduated</a> from laboratory experiment to regulatory reality.



Marc Baumann, CEO of 51 Group, <a href="https://www.51insights.xyz/p/144-nasdaq-tokenizes-stocks" target="_blank" rel="noreferrer noopener nofollow">calls Nasdaq's filing</a> "the start of a once-in-a-generation overhaul of capital markets." 



A start, but not a revolution. Many of tokenization's promised efficiencies could be achieved with existing systems. The real impact may be psychological. Once a blue-chip American stock exists as a token under SEC oversight, the line between "digital assets" and everything else becomes harder to draw.&nbsp;



For all the techno-utopian rhetoric, this is less a leap into a decentralized future than a controlled evolution – Wall Street appropriating the voice of its would-be disruptors while keeping a firm grip on the rails.



If the SEC gives its blessing, the move won't remould markets overnight. But it would mark a turning point: the moment blockchain stopped knocking on TradFi's door and was invited in – if only into the lobby.



Benzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga&#8217;s reporting and has not been edited for content or accuracy.

Nasdaq's Token Gamble

Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) fell below $104,000 on Friday before president Donald Trump said high tariffs on China "will not stand," easing trade tensions but doing little to stop <a href="https://www.benzinga.com/money/bitcoin-price-prediction-oct-14">the market's decline</a>.



<h3 class="wp-block-heading">Trump's Tariff Comments Fail To Rescue Bitcoin Price</h3>



Bitcoin stayed under pressure even after U.S. President Donald Trump <a href="https://x.com/DeItaone/status/1977485127715528774?utm_source=chatgpt.com">said</a> he believes the U.S. will "be fine with China" and answered "no" when asked if high tariffs would stand.&nbsp;



The remarks briefly eased concerns over renewed trade tensions but had little effect on market sentiment.



Traders said the reaction reflected persistent caution across risk assets, with crypto markets still weighed down by tightening liquidity and weak inflows.&nbsp;



The comments did not trigger a sustained rebound in Bitcoin trading volumes or price action.



<h3 class="wp-block-heading">Bitcoin Outflows Top $1.6 Billion As Liquidity Dries Up</h3>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="253" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/10/17083158/image-461-1024x253.png" alt="" class="wp-image-1119665" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/10/17083158/image-461-1024x253.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/10/17083158/image-461-300x74.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/10/17083158/image-461-768x189.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/10/17083158/image-461-1536x379.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/10/17083158/image-461.png 2048w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>



<a href="https://www.coinglass.com/currencies/BTC/spot">BTC Netflows (Source: Coinglass)</a>



Data from Coinglass shows that Bitcoin recorded more than $1.66 billion in cumulative outflows over the past five sessions, including $365 million on Oct. 17 alone. 



The consistent withdrawals highlight continued portfolio de-risking by both institutional and retail participants.



The selling pressure has drained short-term liquidity, making the market more vulnerable to price swings.&nbsp;



Stabilization in exchange flows will be critical for any meaningful recovery attempt in the near term.



<h3 class="wp-block-heading">Bitcoin Chart Breakdown Raises Alarms On $100,000 Test</h3>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="694" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/10/17083158/image-461-1024x694.png" alt="" class="wp-image-1119664" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/10/17083158/image-461-1024x694.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/10/17083158/image-461-300x203.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/10/17083158/image-461-768x520.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/10/17083158/image-461-1536x1040.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/10/17083158/image-461.png 2048w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>



<a href="https://in.tradingview.com/symbols/BTCUSD/">BTC Price Prediction (Source: TradingView)</a>



Technical analysis: Bitcoin's daily chart confirms a breakdown below $108,000, where the 200-day exponential moving average (EMA) had previously acted as strong support.&nbsp;



The breach shifts focus toward $103,500 as the next short-term demand zone, while $100,000 remains the main psychological and structural support level.



<h3 class="wp-block-heading">Momentum readings also show continued weakness.&nbsp;</h3>



The RSI has dropped to 34, near oversold territory, while major moving averages have turned lower in alignment with the bearish trend.



Unless inflows stabilize, the next pivot could form closer to $100,000, with a deeper extension exposing $92,000 as the next major support area.



Read Next: 



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Image: Shutterstock

Trump Says China Tariffs 'Won't Stand' — But Bitcoin Crashes 5% Anyway

Renowned investor and "Shark Tank" personality&nbsp;Kevin O'Leary raised an alarm Thursday about Ethereum&#8217;s (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/eth/usd">ETH</a>) network congestion and fee spike over the weekend.



<h2 class="wp-block-heading">Ethereum&#8217;s &#8216;Cracks Are Showing&#8217;</h2>



In an X post, O&#8217;Leary highlighted that Ethereum became severely congested, causing even small transactions to cost upwards of $1,000. He likened this to&nbsp;&#8220;paying a thousand-dollar toll to&nbsp;drive on a one-lane highway.&#8221;



O'Leary, also known as "Mr Wonderful," added that innovation isn&#8217;t&nbsp;just about hype,&nbsp;but&nbsp;about building infrastructure that can&nbsp;handle scale.



&#8220;For over a decade, we've talked about going on-chain, and now with real-world adoption finally happening, the cracks are showing,&#8221; he rued



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Over the weekend I witnessed something every crypto investor should pay attention to. Ethereum, the largest blockchain in the world, got congested and fees skyrocketed past $1,000 just to process small transactions. That's like paying a thousand-dollar toll to drive on a one-lane… <a href="https://t.co/m9o1sRUQE0">pic.twitter.com/m9o1sRUQE0</a>&mdash; Kevin O&#39;Leary aka Mr. Wonderful (@kevinolearytv) <a href="https://twitter.com/kevinolearytv/status/1978897749719265632?ref_src=twsrc%5Etfw">October 16, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



See Also:&nbsp;<a href="https://www.benzinga.com/money/ethereum-eth-price-predictions">Ethereum (ETH) Price Prediction: 2025, 2026, 2030</a>



<h2 class="wp-block-heading">Transaction Fees Soar To Nine-Month Highs</h2>



Indeed, Ethereum&#8217;s <a href="https://www.benzinga.com/money/ethereum-gas-fees#:~:text=How%20much%20is%201%20gas%20in%20ETH%3F&amp;text=The%20current%20price%20of%201,GAS)%20is%20around%200.00008143%20ETH.">average daily gas price</a> reached a nine-month high last Friday, according to data from Etherscan, amid broader market sell-offs



Gas price is the price per unit of computation a user is willing to pay for a transaction on Ethereum. During high traffic, it surges as users try to jump the queue and have their transactions prioritized.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="575" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/10/17020537/image-445-1024x575.png" alt="" class="wp-image-1119069" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/10/17020537/image-445-1024x575.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/10/17020537/image-445-300x168.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/10/17020537/image-445-768x431.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/10/17020537/image-445.png 1241w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption class="wp-element-caption">Source: Etherscan</figcaption></figure>



<h2 class="wp-block-heading">O&#8217;Leary&#8217;s Bet On BTC, ETH</h2>



O&#8217;Leary has been known for his long-standing belief in the potential of Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) and Ethereum. He said last month that the two assets <a href="https://www.benzinga.com/crypto/cryptocurrency/25/09/47736001/mr-wonderful-kevin-oleary-says-bitcoin-ethereum-enough-to-capture-the-promise-of-crypto-advises-against-irrelevant-tokens">alone could capture more than 90% of the cryptocurrency market&#8217;s volatility and yield</a> and that one shouldn&#8217;t chase other tokens.



Previously, he stated that the younger generation, specifically the GenZs,&nbsp;<a href="https://www.benzinga.com/crypto/25/08/47406495/kevin-oleary-says-gen-zs-invest-in-bitcoin-ethereum-alongside-stocks-a-chance-he-never-had-early-in-his-investment-journey" target="_blank" rel="noreferrer noopener">are investing in Bitcoin and Ethereum alongside traditional stocks</a>, a chance he did not get early in his investment journey.



Price Action: At the time of writing, BTC was exchanging hands at $108,289.67, down 2.45% in the last 24 hours, according to&nbsp;<a href="https://pro.benzinga.com/dashboard?_gl=1&#x2A;380nj0&#x2A;_ga&#x2A;MTEyOTAyOTcxMy4xNzEzMzY0NTYy&#x2A;_ga_V7ZK73W7N0&#x2A;MTcxNDk4MzIzMi42LjEuMTcxNDk4OTE0Ni4wLjAuMA.." target="_blank" rel="noreferrer noopener">data from Benzinga Pro</a>. ETH traded down 3% at $3,896 at last check.



Read Next:&nbsp;



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<li><a href="https://www.benzinga.com/personal-finance/management/25/09/47808466/if-you-dont-have-money-you-dont-have-a-marriage-says-kevin-oleary-most-marriages-can-survive-infidelity-but-not-financial-stress">&#8216;If You Don&#8217;t Have Money, You Don&#8217;t Have A Marriage,&#8217; Says Kevin O&#8217;Leary. Most Marriages Can Survive Infidelity, But Not Financial Stress?</a></li>
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Photo courtesy: Zakharchuk/Shutterstock

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