Ripple is reportedly leading a significant fundraising effort to establish a new digital asset treasury focused on XRP. Sources familiar with the matter indicate that the company aims to raise $1 billion for this new entity. This development comes as the broader cryptocurrency market experiences notable shifts, including significant outflows from Bitcoin exchange-traded funds (ETFs) and strategic moves by other major players in the digital asset space.
Key Takeaways
- Ripple is spearheading a $1 billion fundraising round for a new XRP-focused digital asset treasury.
- The fundraising is expected to occur via a special purpose acquisition company (SPAC).
- MegaETH has repurchased 4.75% of its equity and token warrants from pre-seed investors.
- Spot Bitcoin ETFs recorded $536 million in net outflows, the largest since August.
- Arthur Hayes' family office, Maelstrom, seeks $250 million for a new private equity fund.
- FIFA's World Cup NFT platform faces a criminal complaint from a Swiss gambling regulator.
Ripple's $1 Billion XRP Treasury Plan
Ripple is reportedly leading a $1 billion fundraising initiative to create a new digital asset treasury specifically for XRP. This information comes from Bloomberg, citing individuals with knowledge of the plans. The fundraising is anticipated to be structured through a special purpose acquisition company (SPAC).
Ripple itself is expected to contribute a portion of its substantial XRP holdings to this new venture. While the specifics of the fundraising and the transaction structure are still under discussion and may change, a successful completion would establish the largest XRP-focused digital asset treasury to date.
Context on Digital Asset Treasuries
Digital Asset Treasury (DAT) firms manage significant holdings of cryptocurrencies, often for corporate balance sheets. Recent market sentiment around these firms, such as Strategy, Metaplanet, and BitMine, has shown some cooling. Some of these firms are now trading at market capitalizations below their net crypto asset values, indicating a shift in investor perception.
This move by Ripple follows a similar announcement in June by Singapore-based Trident Digital. Trident Digital had previously stated plans to raise $500 million to build its own XRP treasury. XRP, currently ranked as the world's fifth-largest cryptocurrency, saw a 5.8% decline in value over the past 24 hours, trading at $2.27 amidst a broader market downturn.
MegaETH Repurchases Investor Stakes
MegaETH has bought back 4.75% of its equity and token warrants from its pre-seed investors. This repurchase occurred ahead of the company's mainnet and token launch, both scheduled for later this year. The specific terms of this deal have not been publicly disclosed.
Shuyao Kong, co-founder of MegaETH, stated that the buyback was approved by key stakeholders, including Dragonfly and Echo. Kong noted that the transaction was completed at a valuation exceeding its $20 million seed-round valuation, reaching into the "9-figures."
Kong explained that some investors chose to exit after closing their funds. Due to MegaETH's policy against secondary sales, the company's team was the only permitted buyer for these stakes. MegaETH indicates that this buyback demonstrates its dedication to aligned ownership and strong governance as it prepares for a public token sale on Cobie's Sonar platform.
Bitcoin ETFs See Significant Outflows
Spot Bitcoin ETFs experienced substantial net outflows totaling $536 million on Thursday. This marks the largest single-day withdrawal since August 1. The outflows were primarily led by Ark Invest's ARKB and Fidelity's FBTC.
Market Sentiment and Outflows
- Total Outflows: $536 million
- Leading Funds: Ark Invest's ARKB, Fidelity's FBTC
- Primary Drivers: U.S.-China trade tensions, broader crypto market deleveraging
Nick Ruck, Research Director at LVRG Research, attributed this exodus to rising investor risk aversion. He cited ongoing U.S.-China trade tensions and a broader deleveraging trend within the cryptocurrency market as key factors impacting sentiment. Ruck also suggested that these ETF outflows signal increased market fragility in the near term, potentially leading to further downward pressure on prices.
In a related development, spot Ethereum ETFs also saw a reversal, recording $56.9 million in net outflows on October 16. This followed two consecutive days of gains for these funds.
Maelstrom Targets $250 Million for Private Equity
Maelstrom, the family office of Arthur Hayes, is aiming to raise over $250 million for a new private equity fund. Bloomberg reports that this fund intends to target up to six mid-sized crypto firms. Akshat Vaidya, Managing Partner at Maelstrom, indicated that the fund will concentrate on blockchain service providers.
These service providers include companies focused on trading infrastructure and analytics startups. Maelstrom plans to invest between $40 million and $75 million annually. Vaidya clarified that each acquisition will be structured through a special purpose vehicle, with a focus on businesses that generate cash.
This fundraising effort occurs amidst a surge in crypto mergers and acquisitions (M&A) activity throughout the current year. Major players like Ripple, Coinbase, and Stripe have all been involved in significant deals, highlighting a consolidating trend in the industry.
FIFA's NFT Platform Faces Legal Action
FIFA's World Cup NFT platform is currently facing a criminal complaint from GESPA, the Swiss gambling regulator. The complaint alleges that FIFA's platform operates illegal, unlicensed gambling services. An investigation conducted by GESPA concluded that competitions on FIFA Collect involve monetary stakes, cash prizes, and outcomes based on chance.
These elements, according to the regulator, qualify the activities as lotteries or sports betting, which require specific licensing. FIFA's NFT collections were initially built on the Algorand blockchain. They later migrated to Polygon and are now slated to move to FIFA's own Avalanche-based "FIFA Blockchain."
Upcoming Events and Market Outlook
Looking ahead to the next week, several key economic data releases are scheduled. The UK's Consumer Price Index (CPI) inflation data is expected on Wednesday. The United States will release its own CPI numbers on Friday, which are closely watched for inflation trends and their potential impact on monetary policy.
European Central Bank (ECB) President Christine Lagarde is set to deliver speeches on both Tuesday and Wednesday, which could offer insights into the Eurozone's economic outlook. In the cryptocurrency space, several projects are scheduled for token unlocks, including Melania Meme, Layer Zero, KAITO, and Scroll. Additionally, major industry conferences such as Zebu Live in London, the Blockchain Africa Conference, and the Lugano Plan ₿ Forum are set to begin.
