Crypto Market Update: 21Shares Files for Hype ETF, Australia Moves to Regulate Stablecoins
October 29, 2025 – The cryptocurrency market showed notable developments on Wednesday, October 29, 2025, as Swiss asset manager 21Shares filed with the U.S. Securities and Exchange Commission (SEC) to launch a new passive exchange-traded fund (ETF) tracking the Hype token. Meanwhile, Australia has taken steps to formally regulate stablecoins and related digital assets under its existing financial laws.
Bitcoin and Ether See Mild Declines Amid Mixed Market Sentiment
As of 9:00 p.m. UTC, Bitcoin (BTC) was trading near US$110,735, down 2.6% over 24 hours. After opening at a high of US$113,536, the leading cryptocurrency experienced a pullback to lows around US$110,020. Similarly, Ether (ETH) dropped 3% to approximately US$3,915.70, fluctuating between US$3,890.47 and US$4,007.21 during the day.
Investor sentiment has shown signs of cautious optimism following softer-than-expected U.S. inflation data, which boosted global risk appetite. Analysts noted a "risk-on" tone returning across major asset classes after the release of the U.S. consumer price index for September. Bitcoin researcher Axel Adler Jr. highlighted positive stablecoin inflows and withdrawals of Bitcoin and Ether from exchanges, indicating reduced selling pressure and potentially higher investor confidence.
The U.S. Federal Reserve’s decision to cut its benchmark interest rate by 25 basis points to a range of 3.75%–4.00% also influenced market dynamics. Despite a mixed response, Bitcoin struggled to break through key resistance levels and showed signs of consolidation.
Altcoins such as Solana (SOL) and XRP also reflected modest declines, with SOL trading near US$193.36 (down 1.1%) and XRP at US$2.59 (down 1.5%).
Crypto Fear & Greed Index Updates
The Crypto Fear & Greed Index recovered from last week’s low of 29 to 39, signaling a gradual improvement in investor mood. Although still cautious, the shift toward neutral territory suggests easing anxiety and a potential uptick in market confidence, especially ahead of future Federal Reserve policy updates.
Derivatives activity displayed short-term selling pressure, with significant liquidations of approximately US$158 million in Bitcoin and US$116 million in Ether over the past four hours. However, Bitcoin futures open interest modestly increased to US$73.94 billion, reflecting sustained trader interest.
Key Cryptocurrency Industry News
21Shares Files for Hype ETF
21Shares has submitted an application to the SEC for an ETF tracking the Hype token, native to the Hyperliquid network, which has surged over 1,500% in the past year. The Hype token currently ranks as the 11th largest cryptocurrency by market capitalization. Coinbase and BitGo are appointed custodians for the fund’s holdings. This marks 21Shares’ first ETF filing since agreeing to an acquisition by FalconX, with the firm managing over US$11 billion in crypto-linked products. The deal is expected to accelerate ETF adoption through improved market infrastructure.
Grayscale Solana Trust ETF Launches With Staking
Grayscale Investments unveiled the Grayscale Solana Trust ETF (ARCA:GSOL), the first staking-inclusive product to list under new SEC guidelines. The ETF offers exposure to Solana’s price movements alongside automatically reinvested staking rewards. Solana is regarded for its high throughput and low transaction fees, attracting institutional and retail investors alike.
Western Union to Issue US Dollar Stablecoin on Solana Blockchain
Western Union announced plans to launch USDPT, a US dollar-backed stablecoin on the Solana blockchain. Custodied by Anchorage Digital, USDPT will debut in 2026 across Latin America, Africa, and Southeast Asia—regions with high remittance and mobile money activity. Integrating its existing fiat network with blockchain technology, Western Union aims to enable faster settlements and cost-effective cross-border transfers while maintaining its global remittance corridors.
Australia Moves to Regulate Stablecoins as Financial Products
The Australian Securities and Investments Commission (ASIC) officially classified stablecoins, tokenized assets, and wrapped tokens as financial products subject to licensing requirements under current financial services laws. Firms have until June 2026 to comply with new regulations, which extend consumer protections and establish custody standards for digital assets. This regulatory milestone empowers ASIC to oversee stablecoin providers and address misconduct in the fast-growing digital asset sector.
Architect Launches Regulated Exchange for Perpetual Futures
Architect Financial Technologies introduced AX, the world’s first regulated exchange for perpetual futures on traditional financial assets including currencies, interest rates, stocks, indices, metals, energy, and commodities. Operating under Bermuda’s financial regulator, AX offers secure clearing, API-driven anonymous order matching, and accepts both fiat currency and digital stablecoins as collateral. The platform aims to serve institutional clients such as hedge funds and asset managers seeking regulated derivative trading avenues.
BitGo Supports Canton Network Assets With Qualified Custody
BitGo announced support for custody of Canton Coin, the native token of the Canton Network, under qualified custody arrangements in the U.S. The privacy-enabled Canton Network is designed for regulated financial markets, fostering interoperable applications around real-world assets. This partnership aims to boost institutional adoption by providing compliant and insured access to Canton’s blockchain ecosystem.
Looking Ahead
The combination of regulatory advancements, new product launches, and traditional finance integration continues to shape the evolving crypto landscape. Market participants are watching closely for further clarity from U.S. regulators on ETFs, as well as the impact of central bank policies and innovative stablecoin offerings such as Western Union’s upcoming USDPT.
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