Redux

This is the CF Benchmarks Newsletter - Summer Catch-Up Edition; a stop-gap issue covering the vacation season.

Inside, you'll find a selection of recent institutionally relevant crypto developments. As usual, there's a benign bias towards what's most salient for clients of the world's largest crypto index provider by assets referenced (that's CF Benchmarks) and our products; including regulated benchmark indices, Digital Asset Frameworks, and Data Series.

We've also curated a set of recent CF Benchmarks Newsletter articles covering some of the most significant events in our space of the last few months.

It's been a busy summer, and this edition isn't a complete record.

Normal service will resume in September.

SEC on pause mode

The SEC has extended deadlines for decisions on multiple spot crypto ETF filings, chiefly for those funds proposing to invest directly in assets for which no existing physically-based ETP exists as yet, e.g., Solana, XRP, and several other assets.

Likewise, the SEC has signaled that it's consideration of the multi-asset crypto ETFs is also not yet complete.

A large swathe of notices indicating that the SEC was beginning a longer review period now point to October 2025, as the Commission potentially awaits the establishment of broader digital-asset rule making before individual approvals land.

For example, here is a tweet by Bloomberg's James Seyffart after the SEC notified 21 Shares and Bitwise of extensions to the reviews of their Solana ETF filings:

Hinting at somewhat more constructive circumstances, Seyffart also noted extended timelines before potential approval of a raft of XRP ETF filings:

ETH peaks, flows ebb

Among large-cap assets, it's undoubtedly been Ethereum's summer, culminating in fresh record high ETH prices in recent days.

Additional color on ETH from a related article can be found further down in this edition, though before then, here is a summary of the resurgent ETH ETF flow patterns seen over the last several weeks.

One-Week Surge

• Between Aug 11–18, Ethereum spot ETFs saw a spectacular inflow of about $2.85 billion in a single week. Bitcoin ETFs, by contrast, pulled in around $548 million—a sharp divergence. The divergence is captured by Coindesk here.
• This inflow phase also included daily inflows like $524 million on Aug 12, forming part of a multi-day streak totaling over $2.34 billion.

Broader August Momentum

• As of mid-August, spot Ethereum ETFs had accumulated roughly $2.3 billion—nearly equal to the 500,000 ETH issued by the network since the September 2022 Merge—underscoring strong institutional demand.

Sudden Pullbacks

• However, on August 18, Ethereum ETF flows faced turbulence: a steep $197 million single-day outflow—the second-largest on record for ETH ETFs, and the beginning of a three-day streak of withdrawals.
• Volatility within momentum: Institutional interest remains robust, but mid-month profit-taking or sentiment shifts triggered notable short-term drawdowns.

Corporate Treasury Trend surmised

Following the lead of early movers like MicroStrategy (now simply known as Strategy) and even Tesla, the summer has also brought a wave of fresh firms adding crypto assets to their corporate treasury holdings - and disclosing such additions too.

That broad class of adoptees is distinct, though of course related, to the large swathe of newcomers seen in recent months to a relatively new class of firms now known as crypto corporate treasury companies. These seem to be closely aligned with the structure and purpose of hedge funds and/or similar investment firms, but are clearly quite a bit more than that too.

A detailed look at the two strands is beyond our scope here, though we outline key features of the trend's recent contours below.

Strategic Reserve & Inflation Hedging

• Bitcoin remains the dominant choice. As of mid‑2025, over 50 public companies hold Bitcoin in their treasuries—collectively around 849,000 BTC, valued at nearly $93 billion. Major players like MicroStrategy hold over 582,000 BTC—about 3% of total supply. (AP News).
• Ethereum’s appeal is rising. Firms like BitMine Immersion have pivoted from Bitcoin to Ethereum, now holding 833,000 ETH (over $3 billion), motivated by staking and DeFi yield opportunities. (AMINA Bank)

2. Diversification Beyond Bitcoin

• Broadening beyond BTC and ETH, treasuries now often include stablecoins, tokenized Treasurys, and real-world assets (RWAs):
  • Q1–Q2 2025: Stablecoin market cap stands around $227–$246 billion, with USDC and USDT dominant; EUR-backed stablecoins are growing under MiCA regulation.
  • Tokenized U.S. Treasury bills—$2.8 billion issued via Securitize; RWAs and tokenized assets increasingly feature in corporate holdings.

3. On-Chain Liquidity & Yield Generation

• Corporations are deploying idle crypto via DeFi protocols:
  • Use of platforms like Yearn Finance, Aave Treasury, Ondo Finance (for tokenized Treasurys) enables automated yield, liquidity optimization, and real-time settlement.
  • Institutional-grade implementations like JPMorgan’s Kinexys, which executed cross‑chain delivery-versus-payment using tokenized Treasurys and Chainlink’s CCIP.

4. Institutional Adoption Signals

• 25% of CFOs plan to integrate digital currencies within two years, according to Deloitte’s Q2 2025 survey Deloitte Italia.
• Around 43% of mid-to-large enterprises globally now include crypto in their financial strategy, per Deloitte’s Digital Finance Report.

5. Governance, Custody & Compliance Frameworks

• The development of robust infrastructure has become essential:
  • MPC custody (e.g., Fireblocks), insured cold storage (BitGo), AML/KYT tools (Chainalysis, Elliptic), and smart-contract governance wallets (MetaMask Institutional).
  • Integration with ERP systems (SAP, Oracle), proof‑of‑reserve attestations, real‑time on‑chain audit trails, and multi-signature or DAO‑style governance frameworks are elevating treasury control.
• Accounting evolution: FASB now requires fair‑value marking of digital assets with unrealized gains reflected in net income—streamlining crypto into GAAP reporting.

6. Speculation vs. Sustainability (Risks)

• The trend carries speculative risk:
  • A summer wave raised $86 billion this year alone for crypto treasury strategies—from diverse sectors like hospitality and toys. (The Wall Street Journal)
  • Critics warn of SPAC‑like speculative momentum and caution firms about survivability in a downturn. (The Wall Street Journal)
  • Mike Novogratz argues the craze has peaked, though he sees long-term strategic treasuries remaining vital. (Business Insider)
  • MarketWatch notes that full tokenization of traditional assets remains constrained by structural and regulatory barriers.

Summer Recaps

MicroBit joins Hong Kong crypto ETF wave with dual BTC and ETH launch

MicroBit Capital Management became the latest Hong Kong firm to utilize the Asia Pacific variants of our flagship Bitcoin and Ether indices to calculate the net asset value of their ETFs.

Read the full launch post here.

Ethereal: Ethereum’s Renaissance

CFB Newsletter Issue 87 – July 28, 2025

Ethereum staged a powerful comeback over the summer, marked by surging ETF inflows, strong price performance, and renewed confidence in its long-term role in institutional portfolios.

• ETF demand surged: Ether spot ETFs pulled in $2.12bn in the week ending July 19, including a single-day record of $727m. By late July, cumulative 2025 inflows were close to the $10bn forecast by the CFB Research team.
• Network upgrades delivered: The Dencun (March) and Pectra (May) upgrades significantly boosted scalability, efficiency, and staking mechanics, cementing Ethereum’s investability case.
• Market structure is evolving: Alongside record open interest in CME Ether futures, signs of a developing ETH futures “basis” suggest institutions are beginning to deploy cash-and-carry strategies in Ether, mirroring Bitcoin’s maturation.
• Corporate adoption accelerates: Ethereum is at the center of the “corporate balance sheet unlock”—stablecoin rails like Visa’s USDC settlement on Solana and Ethereum mean treasuries are increasingly holding ETH (and SOL) to fund fees, collateralize DeFi, and capture native staking yields.

“The increase in fund flows into the Ether ETFs just as we see record net short positions into corresponding CME futures contracts indicates that institutions are beginning to deploy the same market-neutral arbitrage strategies used in Bitcoin across other large cap digital assets.” — Gabe Selby, CFA, Head of Research, CF Benchmarks (quoted in Bloomberg).

Read the full issue below

CF Benchmarks Newsletter Issue 87 - CFB

CF Benchmarks Newsletter Issue 87 - CFB

CFBKen Odeluga

REX-Osprey lays foundation for US SOL and staking wave

REX-Osprey’s SOL Staking ETF Takes Flight

CFB Newsletter Issue 86 – July 3, 2025

The U.S. market’s first Solana ETF and its first staking-enabled ETF made its debut this summer: the REX-Osprey Solana + Staking ETF (SSK).

• Double milestone: First U.S. ETF for Solana and first to incorporate staking rewards.
• CF Benchmarks’ role: NAVs reference the CME CF Solana-Dollar Reference Rate (SOLUSD_RR), underscoring regulated benchmark integrity at the heart of this new product.
• Strong launch: $12m was traded on day one—healthy for a first-to-market ETF, especially compared with earlier Solana products.
• Structural nuance: As a ’40 Act fund, SSK faces inherent limitations on distribution and appeal relative to ’33 Act ETFs—factors institutions will weigh carefully.
• Market signal: CME Solana Futures jumped ~44% off June lows, suggesting positive sentiment around staking-enabled ETFs and Solana’s evolving institutional profile.

Read the full article below

CF Benchmarks Newsletter Issue 86 - CFB

CF Benchmarks Newsletter Issue 86 - CFB

CFBKen Odeluga

Kindled: In-Kind sparks new crypto ETF phase

CFB Newsletter Issue 88 – August 11, 2025

The SEC’s approval of in-kind creation and redemption for U.S. spot crypto ETFs is as pivotal as it seems—and potentially more transformative than markets yet appreciate.

• Historic growth already: U.S. Bitcoin ETFs became the fastest-growing ETFs in history, led by BlackRock’s IBIT, which hit $70bn AUM in under 18 months—more than 5× faster than gold’s GLD.
• IBIT’s dominance: IBIT alone controls ~60% of U.S. spot Bitcoin ETF assets, underscoring how growth has been concentrated rather than evenly distributed.
• In-kind strengthens leaders: IBIT’s advantages—brand trust, distribution scale, model-portfolio inclusion—are now reinforced by in-kind mechanisms, further sharpening its edge.
• Leveling opportunities: While IBIT remains dominant, in-kind approval broadens the field: mandates previously deterred by cash-only redemptions now have greater choice among more specialist or crypto-native issuers.
• Beyond BTC and ETH: In-kind could prove especially critical for ETFs tracking less-established assets, where cash-only constraints might have been a deal-breaker for allocators.

Read the full article below

CF Benchmarks Newsletter Issue 88 - CFB

CF Benchmarks Newsletter Issue 88 - CFB

CFBKen Odeluga

SEC's portfolio pause examined

SEC Approves Grayscale’s Multi-Asset Crypto ETF… Then Presses Pause

CFB Newsletter Issue 86 – July 2, 2025

The SEC’s green light for Grayscale’s conversion of its Digital Large Cap Fund (GDLC) into a multi-asset spot crypto ETF was a landmark: the first U.S. approval for a diversified crypto portfolio holding BTC, ETH, SOL, ADA, and XRP. But the approval was quickly followed by an unusual delay.

• Historic step: Grayscale’s approval in principle opened the door to diversified crypto ETFs—one of the most closely watched frontiers for institutional adoption. Other issuers, including Bitwise and KraneShares, also have live applications.
• Surprise reversal: Within 24 hours, the SEC exercised a rarely used “Discretionary Review”, placing a temporary stay on the fund’s launch despite its prior approval.
• Possible reasons: Analysts cited the inclusion of assets like XRP and Cardano—neither yet approved individually—as well as potential internal divisions within the SEC as factors.
• Mixed regulatory signals: The pause came soon after contradictory SEC communications on staking—first a Division of CorpFin statement suggesting staking wasn’t a securities issue, then a public rebuke from Commissioner Crenshaw.
• Institutional implications: The episode underscores that while regulatory clarity is advancing, internal divergence at the SEC could extend timelines for multi-asset approvals, even as demand for diversified crypto exposure builds.

Read the full article below

CF Benchmarks Newsletter Issue 86 - CFB

CF Benchmarks Newsletter Issue 86 - CFB

CFBKen Odeluga