This October was a volatile month for digital assets. Early in the month, Bitcoin surged to a new all-time high above $126,000 (~A$192,470) driven by rising concerns over currency debasement and US’s sovereign debt levels. However, escalating trade tensions between China and the U.S. pressured risk assets, triggering a cascade of liquidations that resulted in roughly US$19 billion in leveraged positions liquidated within 24 hours on 10 October, marking it the sharpest liquidation event in the market’s history. Markets partially recovered over the month but remained in a risk-off mode. Bitcoin ended the month at US$110,430 (~$168,690) following the Federal Reserve’s anticipated 25-basis-point rate cut and confirmed that quantitative tightening would conclude in December while maintaining a hawkish forward guidance.
Regulatory advancements continued to shape the digital asset landscape. In Australia, ASIC released an updated guidance classifying certain digital asset activities, including stablecoins, wrapped tokens, tokenised securities, and custodial wallets as financial products requiring an AFSL. To allow the industry time to adjust, ASIC issued a sector-wide no-action position until 30 June 2026. The updated framework aims to enhance investor protections while providing greater operational certainty for compliant firms.
In the U.S., Federal Reserve Governor Christopher Waller proposed the creation of “skinny master accounts” at the inaugural Payments Innovation Conference. These limited-access payment accounts would allow select stablecoin issuers and trust-chartered entities, enabling them to connect directly with the Fed’s payment rails. This proposal is seen as a constructive development, potentially legitimising regulated stablecoins as part of the broader monetary ecosystem by streamlining settlement flows and embedding them into U.S. payment infrastructure. Governor Waller also stated that the central bank plan is entering a new era and cryptocurrency will “no longer be on the fringes”.
Institutional adoption remained strong throughout October. J.P. Morgan announced plans to allow institutional clients to use Bitcoin and Ethereum as collateral for loans by year-end, building on its earlier decision to accept crypto-linked ETFs as collateral. This move highlights the growing integration of digital assets into traditional financial markets.
October saw a significant expansion in the U.S. ETF market with the introduction of several first-ever spot staking exchange-traded products. Grayscale led this development by adding staking features to its Ethereum Trust ETF , Ethereum Mini Trust ETF, and Solana Trust. In addition, new spot ETFs for Solana with staking, Litecoin , and Hedera also made their debut. This new generation of products highlights the growing convergence between traditional finance and blockchain-based yield models. By embedding staking rewards within regulated ETF structures, issuers are opening the door for a wider range of institutional investors to access yield-bearing digital assets in a compliant, exchange-traded format. Along with this development, a wave of new crypto ETF filings was submitted following the U.S. SEC approved streamlined listing standards in September.
Corporate treasury activity sustained its momentum in October despite market volatility. DigitalX acquired 2 BTC during the month, bringing total holdings to 504 BTC. In the U.S., Strategy (formerly MicroStrategy) acquired 777 BTC in October, increasing its total holdings to 641,205 BTC, while Coinbase expanded its Bitcoin position by 2,772 during the third quarter to reach 14,548 BTC. In Europe, Sequans Communications purchased 29 BTC, bolstering its Bitcoin treasury to 3,234 BTC. Meanwhile, in Japan, Metaplanet announced a share buyback of up to 150 million shares (13% of total issued shares, excluding treasury stock) to enhance capital efficiency and mNAV. According to Bitcoin Treasuries data, there are now 190 public companies worldwide holding Bitcoin as part of their balance sheets.
Governments and sovereign wealth funds also accelerated their Bitcoin exposure in October. Luxembourg’s Intergenerational Sovereign Wealth Fund invested 1% of its $730 million portfolio in Bitcoin ETFs, becoming the first Eurozone sovereign fund to do so. The fund is authorised to allocate up to 15% of its assets to alternative investments, including crypto. In France, lawmakers introduced a bill on October 28 proposing the establishment of a national Bitcoin reserve equivalent to 2% of total Bitcoin supply, approximately 420,000 BTC, positioning the country as a potential leader in strategic Bitcoin adoption within the EU.
Despite elevated volatility, October underscored Bitcoin’s continued institutionalisation, both as a strategic treasury asset and within the global regulatory framework, with Australia and the United States emerging as key jurisdictions shaping the next phase of digital-asset integration.
