Key Takeaways

• STRC finished Thursday at $88.59, reaching an intraday bottom of $82.50 — representing the most extended period below $100 par since its July 2025 launch
• Volume exploded to 10.7 million shares, significantly exceeding the typical 3.4–3.5 million daily range
• Analyst Jeff Dorman from Arca suggests Strategy could be forced to liquidate $3B–$4B in Bitcoin holdings to bring STRC back to par
• TD Cowen upheld its Buy rating on MSTR with a $400 target, even as MSTR shares dropped 4% to $112.53
• The company has suspended STRC’s ATM offering while shares remain under par value

Strategy’s preferred equity STRC ended Thursday’s trading at $88.59, representing back-to-back closes beneath $90 and the most prolonged period trading under its $100 par value since its initial offering in July 2025.

Strategy Inc, MSTR

Intraday action saw STRC plunge to $82.50 before staging a modest comeback. The security was structured to maintain par value through a flexible dividend mechanism — presently yielding 12.9% with monthly recalibrations.

Share volume exploded to roughly 10.7 million on Thursday, dwarfing the standard daily turnover of approximately 3.4 to 3.5 million. This marked one of the most active trading sessions since the preferred stock’s inception.

With STRC languishing below par, Strategy has temporarily halted the security’s ATM offering. Under normal circumstances when STRC exceeds $100, Strategy issues additional shares to acquire Bitcoin.

The company’s common equity also experienced turbulence, declining 4% to settle at $112.53.

Potential Remedies for STRC’s Par Value Problem

Jeff Dorman, Arca’s Chief Investment Officer, outlined the available pathways on X, characterizing it as the “MSTR pickle continues.”

Dorman’s primary projection — assigned a 70% likelihood — envisions Strategy gradually offloading modest quantities of MSTR shares monthly at dilutive prices. He contends this approach provides STRC investors “a glimmer of hope” while preserving most Bitcoin reserves, though he cautions MSTR equity “would get hammered.”

His secondary forecast, weighted at 25% probability, involves more aggressive intervention: liquidating $3 billion to $4 billion in Bitcoin holdings. Dorman suggests this would “buy a ton of time” and benefit STRC holders, despite creating short-term headwinds for Bitcoin prices.

The final alternative — what Dorman labels the “nuclear” option at 5% probability — would see Strategy suspending dividend payments on its preferred securities. This could leave preferred shareholders recovering just 30 to 40 cents per dollar and potentially exclude Strategy from capital markets indefinitely. However, it would eliminate what Dorman calculates as approximately $1.7 billion in annual cash obligations.

TD Cowen Maintains Optimistic Stance

Despite mounting concerns, TD Cowen reaffirmed its Buy recommendation on MSTR Thursday, preserving its $400 price objective while expressing confidence in Strategy’s preferred stock portfolio, including STRC.

The investment bank characterized Strategy as evolving beyond merely functioning as a leveraged Bitcoin vehicle toward establishing what it describes as a “Bitcoin capital markets platform.”

TD Cowen analysts referenced three investor briefings with CFO Andrew Kang, observing that Strategy may emphasize reserve reconstruction and preferred stock stabilization over fresh Bitcoin acquisitions during challenging market environments.

Critic Peter Schiff escalated warnings on social platforms, suggesting potential litigation against Michael Saylor’s Strategy regarding STRC’s persistent deterioration.

Dorman additionally scrutinized MSTR’s broader valuation metrics, calculating the firm possesses approximately $35.2 billion in unencumbered Bitcoin assets against a $40.4 billion equity capitalization — positioning MSTR at 1.15x modified NAV. He argues the shares “should trade at a discount to NAV now” and face continued downside pressure absent a swift Bitcoin recovery.

The CFTC and SEC have asked the public to comment on how U.S. rules define swaps, security-based swaps, and related derivatives products. 

The joint request focuses on Title VII of the Dodd-Frank Act, the law that split parts of the swaps market between the two agencies.

The request seeks input on swap exclusions, mixed swaps, jurisdictional questions, alternative compliance, and new products. The agencies said comments will remain open for 60 days after publication in the Federal Register.

The agencies said market structures and trading practices have changed since the original rules took shape. They asked whether current definitions still match the way derivatives products now trade.

The review also gives both agencies a common record as they weigh products that may touch both commodities and securities laws. It could also shape future staff guidance for market participants and courts.

CFTC Chair Michael Selig said the request could address “longstanding ambiguities” in Dodd-Frank. SEC Chair Paul Atkins said clarification is “long overdue,” including for event-based products.

CME lawsuit raises pressure

The public comment request came as CME Group sued the CFTC over the agency’s treatment of crypto perpetual futures. CME argues that Kalshi’s perpetual futures should fall under swaps rules, not ordinary futures rules.

As previously reported by crypto.news, CME accused the CFTC of bypassing congressional requirements when approving Kalshi’s crypto perpetual contracts. The exchange said the agency created a path for new competitors without using the swap framework set by Dodd-Frank.

CME Chief Executive Terrence Duffy had already said the company planned to sue after the CFTC cleared platforms such as Kalshi and Coinbase to offer regulated crypto perpetual futures. CME says the products compete for retail derivatives customers.

Perpetual futures test old categories

Perpetual futures are derivatives contracts without expiry dates. Traders can hold positions without rolling into a new contract, which makes them common on offshore crypto exchanges.

The CFTC allowed Kalshi’s Bitcoin perpetual futures to remain listed under existing futures rules, subject to compliance with the Commodity Exchange Act and CFTC regulations. Crypto.news earlier reported that Kalshi later expanded into other crypto-linked perpetual products.

The dispute now turns on legal definitions. If regulators treat crypto perps as swaps, platforms may face different rules for clearing, reporting, execution, and oversight. If regulators treat them as futures, venues can list them through the futures exchange process.

Prediction markets add another layer

The CFTC and SEC also asked for views on event contracts and other new products. That part of the request matters because prediction markets have grown quickly and now face questions over federal and state oversight.

Crypto.news has reported several CFTC fights involving Kalshi and state gaming regulators. The CFTC has argued that federally regulated event contracts fall under its authority, while states have claimed some sports-linked products look like gambling.

The SEC has also shown interest. Crypto.news earlier reported that Atkins told lawmakers some event contracts may fall under securities law, depending on how they are written.

The new comment process does not settle the CME case or the prediction market disputes. It gives exchanges, crypto firms, legal experts, and the public a chance to tell regulators where the current definitions need clearer lines.

Algorand has unveiled a roadmap aimed at making its network resistant to future quantum computing attacks. The plan, discussed by Algorand Foundation technology chief Bruno Martins, targets upgrades to the protocol’s infrastructure by the end of 2027.

The move comes as researchers and security agencies increasingly warn that sufficiently capable quantum computers could eventually undermine today’s widely used cryptographic schemes. While quantum hardware is still in early development, businesses and regulators are already planning for “migration” to quantum-safe cryptography rather than waiting for a break to occur.

Key takeaways

• Algorand says it will pursue broad “quantum resilience” with protocol and cryptographic upgrades scheduled through end-2027.
• The roadmap includes shifting to quantum-resistant signatures based on Falcon for new accounts involved in consensus.
• Algorand also plans to update parts of its consensus design that currently rely on cryptography it says is not quantum-resistant.
• The network is considering migration approaches such as a “hybrid mix” of classical and quantum-resistant signatures.
• The announcement adds to a growing list of crypto and government efforts to prepare for quantum-era cryptography timelines.

Algorand targets quantum upgrades by end-2027

In remarks posted Thursday, Bruno Martins said the foundation has been researching the quantum threat for several years and is now formalizing an infrastructure update path. According to Martins, governments, standards bodies, and security experts are already planning for a world where quantum computers could break cryptographic systems that protect modern digital infrastructure.

Algorand’s approach focuses on ensuring that the network can keep operating securely as the cryptographic assumptions underpinning current systems become obsolete. The project frames the roadmap as a way to prevent quantum-enabled attackers from exploiting weaknesses in how blockchain participants authenticate and how the network reaches agreement.

Falcon signatures and changes to consensus cryptography

A central part of Algorand’s plan is a shift toward quantum-resistant digital signatures. Martins said the roadmap includes introducing new accounts that use Falcon, a signature scheme designed for post-quantum cryptography.

Algorand also intends to update its consensus mechanism, noting that its current cryptography is not quantum-resistant. In addition, the network will revise how accounts involved in consensus operate, alongside research into possible transition strategies.

One of the options under exploration is a “hybrid mix” that combines classic signatures with quantum-resistant ones—an acknowledgement that migrations in distributed systems often require careful coordination rather than a single abrupt switch.

Why this matters as “migration deadlines” spread

Algorand’s announcement lands amid heightened concern across the crypto market. Quantum computing is expected to be vastly more powerful than today’s supercomputers, but it is still early enough that practical “break crypto” scenarios remain uncertain. Even so, multiple efforts are underway to reduce the risk of being caught unprepared.

Earlier coverage highlighted that Google researchers, in a March paper, suggested quantum computers may need fewer resources than previously estimated to compromise certain cryptographic protections used by blockchains. That same paper pointed to Algorand as likely among the most quantum-ready networks, while also noting that Ethereum and Solana are exploring preparations.

Beyond crypto, governments have been setting expectations for quantum-resistant upgrades. The French cybersecurity agency ANSSI said it will stop certifying security products that do not include quantum-resistant encryption, aiming to push businesses toward quantum-safe systems by 2030. In the United States, the NSA has required new national security systems to use its quantum-resistant algorithms starting Jan. 1, 2027, with non-quantum-resistant systems expected to be phased out by end-2030.

Meanwhile, Google has reportedly set an internal readiness deadline of 2029, citing the pace of progress in quantum computing hardware and error correction. While these deadlines are not directly comparable across organizations, they underline the same core logic: once quantum capabilities grow, timelines for migration may not be long enough to handle complex security changes later.

Quantum readiness is becoming a competitive network feature

Algorand is not alone in addressing quantum risk. Tezos has launched a prototype blockchain for quantum-resistant private payments, while Circle has released a roadmap aimed at making its Arc blockchain quantum-ready. Academic research also continues to explore whether a functional quantum computer might require fewer resources than originally believed, with some scenarios suggesting deployment could occur before 2030.

What distinguishes Algorand’s plan is its focus on both authentication and consensus mechanics. Many “quantum-safe” efforts start at the cryptographic layer—upgrading signatures or encryption—yet blockchain security depends on a broader set of protocol assumptions. By highlighting consensus updates and considering transitional methods such as hybrid signature approaches, the roadmap emphasizes that quantum resilience is not just about swapping algorithms, but about maintaining safe system behavior throughout the transition.

Looking ahead, market participants will likely watch for how Algorand phases these changes from research into implementation, including whether the network targets staged activation milestones beyond the end-2027 timeline. Just as importantly, readers should monitor how closely other major protocols align their migration strategies, since the risk posed by quantum advances will depend not only on theoretical capability, but on how quickly systems can evolve without disrupting users and validators.

The U.S. Commodity Futures Trading Commission (CFTC) has settled its enforcement action against Celsius Network founder Alex Mashinsky. 

A federal court consent order permanently bans him from trading in markets overseen by the agency. It also bars him from registering with the CFTC.

The order ends the CFTC case filed in July 2023 against Mashinsky and Celsius. The agency said the action was its first case against a digital asset lending platform. Celsius had already settled with the regulator, leaving Mashinsky as the final defendant in the matter.

The ban covers commodities, futures, and derivatives markets under CFTC oversight. It gives the regulator a final court order against the former Celsius chief, who once promoted the company as a safer way for customers to earn yield on crypto deposits.

Regulator cites customer fraud claims

The CFTC said Mashinsky and Celsius misled customers about the safety, profits, and legal status of the company’s crypto lending business. The agency alleged that they ran a “scheme to defraud” hundreds of thousands of customers while promoting Celsius as a safe place for digital assets.

Ireland has released a national risk assessment on digital assets for the first time in seven years, detailing “very significant” concerns around money laundering and terrorism financing while also warning that crypto can be attractive to fraudsters and may help criminals evade sanctions.

The assessment, published by the Irish Department of Finance as part of the government’s policy priorities, comes as Ireland moves toward implementing industry standards on how crypto-related activities are accepted as a source of funds by the second half of 2027.

Key takeaways

• Ireland’s 2026 national risk assessment describes crypto assets as posing “very significant” risks for money laundering and terrorism financing.
• The government cites increased enforcement pressure, including more prosecutions related to money laundering and fraud incidents in which the use of crypto is “particularly attractive” to criminals.
• The report flags vulnerabilities beyond illicit finance, including potential sanctions evasion and difficulties in tax compliance and enforcement.
• Ireland highlights regulatory inconsistency internationally as a risk for Irish service providers, alongside gaps in oversight for largely unregulated areas such as decentralized finance.
• Political donation concerns remain part of the picture, even as Ireland has already prohibited cryptocurrency donations to political parties for more than four years.

Seven-year gap and a sharper focus on illicit finance

In the risk assessment released Thursday, Ireland said crypto-related activity presents “very significant” risks connected to money laundering and terrorism financing. The Department of Finance framed the assessment as a response to the evolving threat landscape, pointing to higher levels of legal and criminal activity involving digital assets since the last time such a country-specific evaluation was published.

According to the Department of Finance, the period since the previous assessment has included an increase in prosecutions tied to money laundering, along with incidents of fraud where crypto was “particularly attractive” to criminal groups. The government also described how digital assets can be leveraged to exploit compliance and enforcement weaknesses.

Beyond money laundering: sanctions, taxation, and bribery

Ireland’s assessment did not limit itself to illicit finance channels alone. It also warned that crypto assets present vulnerabilities that “may facilitate sanctions evasion.” In parallel, the government highlighted challenges for tax compliance and enforcement, suggesting that the way crypto is used can complicate oversight and detection.

The report further notes risks associated with corruption. Ireland stated that crypto has been used to bribe officials involved in decisions affecting the sector. While the assessment describes vulnerabilities broadly across criminal use cases, it also emphasizes how administrative and regulatory roles can be exploited when oversight is weak or fragmented.

Regulatory patchwork and uneven protections

A central theme in the assessment is the uneven regulatory environment around crypto. Ireland pointed to “inconsistent international regulation” as a vulnerability affecting Irish service providers, implying that companies operating in Ireland may face risks not only from domestic enforcement but also from cross-border standards and gaps.

The government also singled out parts of the ecosystem that remain comparatively less regulated. The risk assessment highlights “largely unregulated areas of the industry such as decentralized finance,” indicating concern that oversight and controls may not be aligned with the same expectations applied to more traditional financial intermediaries.

Ireland’s approach is notable given its relatively high crypto participation compared with some other markets. The report references research from the Central Bank of Ireland published in December, which said about 10% of the population invested in crypto.

Where policy is heading: standards by 2027 and ongoing enforcement

Ireland’s assessment was issued alongside a wider policy direction tied to implementing industry standards relating to the acceptance of crypto-related activities as a source of funds, with a target of the second half of 2027. The framing suggests the government wants to reduce ambiguity around how crypto can be treated within the financial compliance system—particularly in contexts tied to anti-money laundering and related safeguards.

Recent enforcement actions in the country also underscore that the issue is not purely theoretical. In November 2025, the Central Bank of Ireland fined Coinbase Europe Limited about $24 million for Anti-Money Laundering and Countering the Financing of Terrorism violations, citing delayed reporting failures in its transaction monitoring system.

On the political side, the assessment references that concerns about crypto being used to pay corrupt officials are persistent—yet Ireland has already moved to restrict political donations. According to the risk assessment, official cryptocurrency donations to political groups have been banned in Ireland for more than four years. In April 2022, Irish officials proposed that no Irish political parties be allowed to accept cryptocurrencies such as Bitcoin, Ether, privacy coins, and others.

What to watch next

With Ireland targeting implementation of relevant standards by mid-to-late 2027, the immediate question for users, exchanges, and service providers will be how quickly regulatory expectations tighten around acceptance of crypto-related funds, compliance controls, and oversight of riskier parts of the ecosystem. Readers should also monitor how Ireland’s “very significant” risk framing translates into concrete supervisory actions and guidance over the next reporting cycle.

Microsoft Threat Intelligence is warning Windows users about a cryptocurrency clipper strain of malware transmitted via USB drives. 

The malware, which has been affecting users since February, steals clipboard data to extract wallet credentials using “high-frequency clipboard theft, screenshot exfiltration, and wallet-address substitution,” Microsoft said Wednesday.

The crypto clipper also hides legitimate files and replaces them with lookalike shortcuts, so victims unknowingly execute malware while a worm component propagates automatically to USB storage devices. 

This malware is insidious because it’s more than just an info stealer, it functions as a backdoor, meaning that attackers can push and execute arbitrary code on infected machines at any time, turning a simple crypto theft into a persistent foothold for ransomware. 

The execution of this clipper is also notable because it does not depend on a traditional installer or exposed IP-based infrastructure, the Microsoft researchers said.

“This malware family shows how lightweight, script-based stealers can deliver outsized impact when paired with anonymized communications and runtime tasking.”  

Tor network used for obfuscation 

The malware deploys two obfuscated JavaScript payloads in the Windows Documents directory and creates scheduled tasks for both the worm and stealer components.

The malware also secretly installs a copy of Tor on the victim’s computer but renames it ugate.exe to disguise it as something innocent. It then uses the anonymizing Tor network to connect to its malicious operators at hidden “onion” addresses.

Related: ‘TrapDoor’ malware targets crypto dev tools in supply chain attack

“The combination of Tor-routed C2, clipboard targeting, screenshot capture and remote code execution gives attackers both immediate monetization paths and continued control over compromised devices,” Microsoft said. 

Crypto clipper execution flow. Source: Microsoft

Private keys and seed phrases targeted 

The crypto clipper focuses on “high-value financial artifacts” from the clipboard, including BIP39 mnemonic seed phrases and Bitcoin and Ethereum private keys. 

It also replaces copied wallet addresses with attacker-controlled ones across Bitcoin, Tron and Monero and takes screenshots every ten seconds for additional context. 

Microsoft Defender Antivirus detects the malware as Trojan:Win32/CryptoBandits.A.

Microsoft recommended disabling autoplay on removable media, blocking .lnk execution from USB drives, and monitoring for proxy activity and spawned scripts. 

2026 has seen a significant escalation in Windows-based crypto stealers. A new Windows malware strain called Lucid Stealer that targets browser extensions and crypto wallets was identified earlier this month by the Foresiet Threat Intel Team. 

Magazine: The end of anon? AI could unmask crypto’s hidden identities

Former Ethereum Foundation contributor Trent Van Epps has warned that Ethereum could face a core development funding gap within the next three to nine months. 

In a new article, he said the network may enter a “slow-burning funding crisis” as the Foundation reduces spending and a major client funding program ends.

Van Epps worked at the Ethereum Foundation from May 2021 to April 2026. He focused on core development coordination, Protocol Guild funding, and Ethereum’s political economy. His comments add a new layer to debate over who should fund the people who maintain Ethereum’s base software.

XRP gave back more of last week’s rally on Wednesday after sellers pushed the token through $1.15 support, a level traders had been watching since the recent move above $1.20.

The decline came on some of the session’s heaviest volume and followed another rejection below the descending trendline that has capped every recovery attempt for months.

News Background

• XRP remains caught between growing expectations for U.S. crypto legislation and a market that continues to prioritize technical levels over narrative.

• Traders are also watching the year-long symmetrical triangle that has compressed price action between support near $1.10 and resistance around $1.25.

Price Action Summary

• XRP fell from $1.1873 to $1.1465 during the 24-hour session, losing 3.4%.

• The sharpest selling arrived around 15:00 UTC when volume surged to 134.2 million XRP, roughly 170% above average, breaking support at $1.1550.

• Buyers emerged near $1.13 and helped lift XRP back toward $1.15 into the close, though the rebound failed to reclaim broken support.

Technical Analysis

• The key development was the loss of $1.15. That level had acted as support following last week’s breakout and now risks turning into resistance.

BlackRock’s spot Bitcoin ETF is doing more than simply introducing mainstream investors to crypto, according to Jay Jacobs, the firm’s US head of equity ETFs. In remarks shared with Cointelegraph on its Chain Reaction podcast, Jacobs said that many investors who first buy BlackRock’s iShares Bitcoin Trust (IBIT) go on to explore other traditional exchange-traded funds—suggesting a two-way bridge between Wall Street and digital assets.

Jacobs also highlighted BlackRock’s broader framing of market convergence, arguing that investors increasingly view decentralized finance, active strategies, and traditional index products as components of a single portfolio toolkit rather than as mutually exclusive categories. The comments arrived alongside BlackRock’s launch of a new Bitcoin-income product, the iShares Bitcoin Premium Income ETF (BITA), which generates yield by selling covered call options on Bitcoin holdings.

Key takeaways

• BlackRock says a large share of IBIT buyers are first-time ETF investors, implying Bitcoin has functioned as an entry ramp into the wider ETF market.
• Jacobs described a “two-way” shift: after gaining Bitcoin exposure, many investors also add other BlackRock funds such as S&P 500, AI-themed, and gold ETFs.
• BlackRock launched BITA, a Bitcoin strategy designed to produce income through covered call options on its Bitcoin exposure.
• BlackRock’s Jacobs ties the trend to a broader “Great Convergence,” where TradFi and DeFi are increasingly treated as portfolio building blocks.

Bitcoin ETFs as an ETF “on-ramp”

Jacobs’ central point is that IBIT has attracted investors who may not have previously owned ETFs at all. He told Cointelegraph that “around three-quarters” of investors in iShares Bitcoin Trust have never owned an ETF before, positioning the product as a pathway into the ETF ecosystem rather than a standalone crypto vehicle.

BlackRock launched iShares Bitcoin Trust in January 2024 and has since positioned it as its flagship crypto offering. According to the figures cited in Jacobs’ discussion, the fund manages about $48 billion in assets and holds 765,936 BTC. That scale has helped make Bitcoin exposure accessible through familiar brokerage channels and regulated fund structures.

But Jacobs emphasized that the relationship doesn’t stop at Bitcoin. He characterized IBIT as a starting point for many investors who later diversify within BlackRock’s broader lineup—an outcome that matters for both asset managers and investors because it suggests crypto products can change how capital is allocated across traditional market segments.

Where investors go after IBIT

In Jacobs’ account, once investors acquire Bitcoin exposure through IBIT, many “start buying other BlackRock funds,” including traditional benchmark and thematic ETFs. He pointed to examples such as an S&P 500 fund (IVV), an artificial intelligence-focused product (BAI), and a gold ETF (IAU).

This is a meaningful behavioral signal: it implies that crypto ETF adoption may accelerate familiarity with the wider ETF wrapper, potentially reducing the friction that often keeps investors segmented between “crypto” and “traditional” strategies. For traders and portfolio managers, the practical takeaway is that Bitcoin allocations might increasingly behave like a component of an ETF-managed portfolio rather than a separate, stand-alone bet—especially for investors building through mainstream channels.

For BlackRock, the pattern also supports a broader thesis about distribution and product chaining—crypto launches that can feed into traditional fund demand after the investor base expands.

BITA adds a new angle: covered-call income on Bitcoin

BlackRock introduced its newest Bitcoin-related ETF on Wednesday: the iShares Bitcoin Premium Income ETF (BITA). The product is designed to generate income by selling covered call options against its Bitcoin holdings.

Covered call strategies are commonly used in equity and income-focused ETFs to generate option premium, typically with trade-offs such as potential limits on upside during strong rallies. In the context of Bitcoin, the structure gives investors a different risk-and-return profile compared with pure spot exposure—shifting the objective from simply tracking Bitcoin’s price to adding an income mechanism that can support yield generation across market cycles.

What remains to be seen is how investors will differentiate between IBIT (spot exposure) and BITA (income via covered calls). If Jacobs’ “entry ramp” theory holds, investors who first bought IBIT for access could be the same pool considering additional strategies within the same product family.

BlackRock’s “Great Convergence” thesis

Jacobs connected the investor behavior he described to BlackRock’s “Great Convergence” narrative—an idea that the boundaries separating crypto, decentralized finance, and traditional finance are becoming less relevant. He said historically investors held assets in separate silos, such as DeFi versus TradFi, active funds versus index funds, and private assets versus publicly listed instruments.

In his view, those divisions are fading as investors look for portfolio solutions that can mix approaches. Jacobs suggested the conversation is moving from “versus” framing to “ampersands,” arguing that people are increasingly combining strategies instead of choosing between them.

That perspective aligns with broader industry experimentation around how crypto traders access traditionally unavailable opportunities. The discussion referenced a recent high-profile SpaceX IPO where crypto participants reportedly sought ways to get exposure ahead of TradFi trading. According to the article, this included pre-IPO perpetual futures and tokenized stock offerings.

While Jacobs did not provide a direct performance forecast, the linkage underscores the same theme: crypto market participants are increasingly finding routes into TradFi-style assets and events, while TradFi-style wrappers (like ETFs) are increasingly used to bring crypto exposure into conventional portfolios.

Pre-IPO perps show crypto-to-TradFi demand

The text cited CryptoQuant for data showing that pre-IPO perp trading volumes on crypto exchanges rose sharply—from around $1 billion in early May to roughly $22 billion in the period leading up to the comments. It also noted Binance as the largest venue, based on CryptoQuant’s reporting.

For readers, this matters because it provides a concrete example of investor appetite for TradFi-adjacent exposures, even when the underlying asset (private company shares or early access mechanics) doesn’t map cleanly onto traditional market access. It also illustrates why fund and derivative structures are evolving: investors want access through instruments that match their preferred liquidity and execution environment.

At the same time, these numbers also highlight how quickly activity can concentrate once a new access method spreads across venues. If volume growth continues—or reverses—could influence how exchanges and liquidity providers decide which TradFi-linked products to expand next.

Going forward, investors should watch whether BlackRock’s product roadmap reinforces the same behavioral pattern Jacobs described—Bitcoin as an initial entry, followed by broader ETF participation—and whether covered-call Bitcoin strategies like BITA attract meaningfully different demand compared with spot-focused exposure. The pace of “convergence” will likely be measured less by headlines and more by how frequently new ETF buyers expand into additional traditional allocations.