Key Takeaways
- • U.S. spot Bitcoin ETFs lost $484.9 million on Oct. 7, their largest daily withdrawal since June, followed by roughly $244 million on Oct. 8; BlackRock's IBIT accounted for $207.7 million of the earlier outflow, per Farside Investors.
- • Bitcoin recovered above $82,000 on Oct. 9 after dipping toward $80,300, but remained roughly 5% lower over seven days, according to CoinGecko.
- • FinCEN withdrew two proposed crypto rules via notices filed Oct. 5: a 2020 wallet proposal covering self-custody transfers and a 2023 foreign cryptocurrency mixing proposal.
- • OKX added Circle, Ripple, Qube Research & Technologies and Standard Chartered's SC Ventures to its strategic round at a $25 billion pre-money valuation, announced Oct. 6.
- • IRS Revenue Procedure 2026-20, issued Oct. 6, preserves federal tax classification for qualifying investment and grantor trusts that stake proof-of-stake assets, subject to specified conditions.
Summary
Bitcoin lost its early-October gains as U.S. spot Bitcoin ETFs recorded heavy withdrawals. The funds lost $484.9 million on Oct. 7, their largest daily outflow since June, followed by approximately $244 million on Oct. 8, according to Farside Investors. BlackRock's IBIT accounted for $207.7 million of the earlier withdrawal. Bitcoin recovered above $82,000 on Oct. 9 after briefly approaching $80,300, with CoinGecko placing it near $82,365, though still roughly 5% lower over seven days. The rebound followed President Donald Trump's statement ruling out attacks on Iran before the Nov. 3 midterm elections, although he said the U.S. blockade would remain.
The Financial Crimes Enforcement Network (FinCEN) withdrew two proposed rules through notices filed Oct. 5. The 2020 wallet proposal would have required financial institutions to keep records for covered transfers above $3,000 and report transactions exceeding $10,000, including qualifying transfers involving self-custody wallets. The bureau also withdrew its 2023 foreign-mixing proposal and the related money laundering finding, acknowledging that its definition could discourage lawful activity and create substantial compliance costs. FinCEN said it would continue monitoring illicit finance. Coin Center welcomed the withdrawals as a financial-privacy victory.
OKX expanded its strategic investment round with Circle, Qube Research & Technologies, Ripple and Standard Chartered's SC Ventures. The Oct. 6 announcement valued the exchange at $25 billion before the new investment, extending a round begun by Intercontinental Exchange in March. All four investors already work with OKX across stablecoins, liquidity and custody. CEO Star Xu said the capital would support growth and real-world asset tokenization. Earlier arrangements with ICE include plans for regulated U.S. futures infrastructure and tokenized NYSE equities, subject to regulatory approval.
Separately, the IRS updated its staking framework on Oct. 6 through Revenue Procedure 2026-20. Eligible investment and grantor trusts can stake proof-of-stake assets while preserving their federal tax classification, provided conditions covering exchange listings, custody, independent staking providers and liquidity management are met. Rewards must generally reach holders within 60 days after the relevant quarter ends. The guidance addresses trust classification and does not grant a general tax exemption for staking income.
Other developments included Bitmine's purchase of 15,112 ETH, lifting its holdings to 6,016,414 tokens, valued at approximately $16.4 billion and representing 4.9% of Ethereum's supply, per its Oct. 5 update. The CFTC opened a public consultation on Regulation CTX and Regulation CAM on Oct. 5, with comments due within 60 days of Federal Register publication. Ripple expanded its brokerage agreement with Brevan Howard, which oversees approximately $35 billion, covering multi-asset prime brokerage, clearing and financing.
The Financial Crimes Enforcement Network (FinCEN) withdrew two proposed rules through notices filed Oct. 5. The 2020 wallet proposal would have required financial institutions to keep records for covered transfers above $3,000 and report transactions exceeding $10,000, including qualifying transfers involving self-custody wallets. The bureau also withdrew its 2023 foreign-mixing proposal and the related money laundering finding, acknowledging that its definition could discourage lawful activity and create substantial compliance costs. FinCEN said it would continue monitoring illicit finance. Coin Center welcomed the withdrawals as a financial-privacy victory.
OKX expanded its strategic investment round with Circle, Qube Research & Technologies, Ripple and Standard Chartered's SC Ventures. The Oct. 6 announcement valued the exchange at $25 billion before the new investment, extending a round begun by Intercontinental Exchange in March. All four investors already work with OKX across stablecoins, liquidity and custody. CEO Star Xu said the capital would support growth and real-world asset tokenization. Earlier arrangements with ICE include plans for regulated U.S. futures infrastructure and tokenized NYSE equities, subject to regulatory approval.
Separately, the IRS updated its staking framework on Oct. 6 through Revenue Procedure 2026-20. Eligible investment and grantor trusts can stake proof-of-stake assets while preserving their federal tax classification, provided conditions covering exchange listings, custody, independent staking providers and liquidity management are met. Rewards must generally reach holders within 60 days after the relevant quarter ends. The guidance addresses trust classification and does not grant a general tax exemption for staking income.
Other developments included Bitmine's purchase of 15,112 ETH, lifting its holdings to 6,016,414 tokens, valued at approximately $16.4 billion and representing 4.9% of Ethereum's supply, per its Oct. 5 update. The CFTC opened a public consultation on Regulation CTX and Regulation CAM on Oct. 5, with comments due within 60 days of Federal Register publication. Ripple expanded its brokerage agreement with Brevan Howard, which oversees approximately $35 billion, covering multi-asset prime brokerage, clearing and financing.
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