Bitwise has disclosed NRR as the ticker for its proposed spot NEAR ETF in an amended filing with the US Securities and Exchange Commission.

Bitwise NEAR ETF discloses NRR ticker

Bitwise submitted the third amendment to its Form S-1 registration statement on July 31, advancing its plan to offer a US-listed investment product backed by NEAR.

The latest filing identifies NRR as the proposed ticker. Bitwise intends to list the shares on NYSE Arca, although the product cannot begin trading until the necessary registration and exchange approvals are completed.

Bitwise Asset Management, the sponsor’s parent company, also provided $200 in seed capital. The investment covered eight shares priced at $25 each, according to the filing.

The amendment does not disclose the fund’s management fee or any introductory fee waiver. Those details may be added in a later filing as Bitwise prepares the product for a potential launch.

Bitwise originally filed the registration statement for the NEAR product in May 2025. The proposed fund is legally structured as an exchange-traded product rather than a conventional investment company ETF.

Staking could generate additional income

NRR would primarily seek to track the value of NEAR held by the trust, minus its operating costs and other liabilities.

Bitwise has also added staking as a secondary objective. The trust intends to stake up to 100% of its NEAR holdings, allowing it to earn protocol rewards that could increase the amount of NEAR backing each share.

Staking would distinguish the proposed fund from products designed only to track spot cryptocurrency prices. However, the arrangement introduces additional risks related to validator performance, liquidity, custody and the time required to unstake tokens.

The filing does not guarantee that all assets will remain staked at all times. The trust may need to retain liquid NEAR to process redemptions, cover expenses or respond to changing market conditions.

The Bank of New York Mellon would serve as the fund’s cash custodian, administrator and transfer agent. Coinbase Custody Trust Company would safeguard its NEAR holdings.

Bitwise is not alone in pursuing the asset. Grayscale has also amended its filing for a proposed NEAR investment product, reflecting a broader push by US asset managers to expand beyond Bitcoin and Ethereum.

US crypto products move beyond Bitcoin

The Bitwise filing comes as Wall Street firms broaden their digital asset offerings. Morgan Stanley Investment Management launched exchange-traded products tracking Ethereum and Solana in late July.

The Morgan Stanley Ethereum Trust and Morgan Stanley Solana Trust trade on NYSE Arca under the MSSE and MSOL tickers. Both charge an annual management fee of 0.14%.

These launches show that US brokerage investors are gaining access to a wider range of cryptocurrencies without managing digital wallets or private keys. An approved NEAR product would extend that expansion to another proof-of-stake network.

Still, securing approval does not ensure commercial success. Hashdex plans to close and liquidate its US-listed Bitcoin ETF, DEFI, after the fund struggled to attract sufficient assets and trading activity.

DEFI managed about $14.7 million as of July 30 and will stop trading after the market closes on Aug. 17. Its closure shows that fees, liquidity and investor demand remain critical even for funds tracking Bitcoin, the largest cryptocurrency.

NEAR price rises as derivatives demand grows

NEAR traded around $1.73 after gaining approximately 4%, with an intraday range between $1.69 and $1.73. The move followed the amended ETF filing and the rollout of the Nearcore 2.13 network upgrade.

Spot trading volume fell about 10% over the previous 24 hours, suggesting the price recovery had not yet attracted broad market participation.

Derivatives positioning was stronger. CoinGlass data showed NEAR futures open interest rising nearly 6% to $365.17 million, indicating that traders increased their leveraged exposure.

The ETF remains subject to the SEC process, and Bitwise has not announced a launch date. Future amendments could disclose the management fee, fee waivers, and final operating terms.

Expectations for the US Digital Asset Market Clarity Act (CLARITY) are fading as the Senate prepares to begin its summer recess at the end of this week, according to wealth manager Bernstein. With lawmakers stepping away from the calendar, Bernstein warns that the bill’s stalled progress could weigh on crypto valuations again—even as it may also open the door to more active regulator-led rulemaking.

In a Monday report shared with Cointelegraph, Bernstein framed the near-term risk as a possible “industry knee-jerk reaction” if Congress fails to advance CLARITY. At the same time, the firm argued that a legislative setback might prompt the US Commodity Futures Trading Commission (CFTC) and the US Securities and Exchange Commission (SEC) to intensify policy work under their existing authorities through Project Crypto.

Key takeaways

• Bernstein says odds for CLARITY passage appear to be declining as the Senate heads toward summer recess, increasing near-term downside risk for crypto.
• The firm expects a market bottom and improving momentum toward late Q3 or early Q4, but only if conditions evolve as anticipated after the recess.
• Even without congressional progress, Bernstein expects Project Crypto activity—such as interpretive releases and DeFi-related guidance—to accelerate.
• Prediction market activity on Polymarket currently implies only a 31% chance that CLARITY is signed into law by the end of 2026.
• Banking industry pushback remains a key factor behind legislative friction, particularly around stablecoin yield provisions.

Why summer recess could hurt crypto sentiment

Bernstein’s analysis centers on congressional timing. The firm notes that the Senate’s scheduled move into summer recess could reduce the likelihood of CLARITY being passed before lawmakers pause their work. If that happens, Bernstein expects an immediate negative reaction from the industry—an event-driven sentiment hit that could translate into further declines for Bitcoin and the broader market.

However, Bernstein also provided a tactical view of the trade-offs. The analysts suggested that, despite a potential near-term drop, the crypto market could stabilize and start regaining momentum toward late Q3 and early Q4 ahead of the mid-term cycle.

Regulators may move faster under Project Crypto

While Bernstein warned about the consequences of legislative inaction, it also argued that regulatory outcomes could shift in parallel. In the firm’s view, Senate failure on CLARITY may lead the SEC and CFTC to adopt a more proactive stance, accelerating rulemaking and guidance initiatives under Project Crypto.

Project Crypto was first announced by SEC Chairman Paul Atkins in July 2025, and later expanded into a joint staff effort between the SEC and CFTC in September 2025, according to the SEC’s announcement and the CFTC filing describing the initiative. The objective is to create an operational regulatory structure for digital assets using existing agency authority while Congress finalizes broader market legislation under the CLARITY Act.

Bernstein said the two agencies could publish more interpretive materials tied to token taxonomy, develop clearer rules relevant to decentralized finance (DeFi), and speed up an “innovation exemption” for token issuers seeking temporary relief from securities classification during a finite period.

Prediction markets price in lower CLARITY odds

External market signals appear to be aligning with Bernstein’s caution. Polymarket data, cited by the firm, shows odds of the CLARITY Act being signed into law before the end of 2026 at 31%. That represents a drop of 7 percentage points over the past week and 9 percentage points over the past month, with roughly $3.7 million wagered on the outcome, according to Polymarket’s event page: Clarity Act signed into law in 2026.

This is not the first time odds have been revised downward. Earlier coverage from Cointelegraph noted that Galaxy Digital cut its 2026 CLARITY odds to 50% on June 26, warning that the Senate was running out of time to pass the market structure bill before its August recess.

Ethics and banking opposition add to the legislative drag

Beyond scheduling risk, the politics around CLARITY may be influenced by other developments. White House officials are reportedly weighing a bipartisan ethics counterproposal received on Thursday following negotiations between Republican Senator Thom Tillis and Arizona Democrat Ruben Gallego. The proposal would reportedly allow state attorneys general to sue the Department of Justice if it fails to enforce ethics laws against federal officials, according to sources cited by crypto journalist Eleanor Terrett in reporting at Crypto in America.

Separately, the bill continues to face industry pushback—particularly from banking groups. The CLARITY Act is intended to create the first US regulatory framework for digital assets, but banking-sector concerns have focused on how stablecoin yields would be treated. Critics argued that the draft could allow crypto firms to offer yields on stablecoins without being subject to the same requirements as traditional financial institutions.

Cointelegraph previously reported that banking and related groups pushed back on stablecoin yield provisions, including in an article that can be found here: ABA, state banking groups push back on CLARITY Act stablecoin yield provisions.

For investors and builders, the near-term question is whether CLARITY becomes another casualty of legislative timing—or whether regulatory agencies can partially offset congressional delay through Project Crypto releases that clarify token categories and reduce uncertainty for DeFi and token issuance. Over the next few weeks, market participants will likely watch what, if anything, the Senate manages to advance before recess, and whether the SEC and CFTC accelerate guidance in response to a stalled vote count.

The CLARITY Act remains stuck in the Senate after the White House reportedly failed to respond to a bipartisan ethics proposal, pushing its 2026 passage odds back down to 27%.

White House has not answered ethics proposal

Crypto journalist Eleanor Terrett reported Monday that the White House had yet to respond to the ethics counterproposal submitted by Republican Sen. Thom Tillis and Democratic Sen. Ruben Gallego.

The proposal would reportedly give state attorneys general a role in enforcing restrictions on crypto activity involving federal officials. Under the compromise, state officials could sue the Department of Justice if it failed to enforce the ethics rules.

Democrats opposed an earlier version accepted by the White House because it left enforcement solely to the DOJ. The Tillis-Gallego proposal is intended to address those concerns and secure enough Democratic votes for the bill to advance.

Although the headline issue centers on Trump, the reported development concerns the White House’s response to the compromise rather than the president signing the legislation itself. The bill must still pass the Senate and clear any differences with the House before reaching Trump’s desk.

CLARITY Act faces shrinking Senate timetable

Senate Majority Leader John Thune has not filed a cloture motion for the CLARITY Act, leaving lawmakers with limited time to begin the procedural process before the chamber’s expected recess.

The Senate’s published Monday schedule instead included a cloture vote on the motion to proceed to H.R. 6500, a legislative vehicle for a continuing resolution. It listed no scheduled action on H.R. 3633, the Digital Asset Market Clarity Act. The Senate previously recorded a floor speech by Sen. Cynthia Lummis in support of the bill but no cloture filing.

Even if Thune files cloture, Senate rules require time for the motion to mature before an initial procedural vote can occur. The bill would also need 60 votes to overcome a likely filibuster, requiring support from several Democrats.

The ethics dispute is not the only obstacle. Prosecutors and law enforcement organizations have raised concerns about provisions protecting some non-custodial blockchain developers from Bank Secrecy Act registration requirements.

Treasury Secretary Scott Bessent has rejected that interpretation, arguing that non-custodial developers have never been subject to those obligations and that the bill would codify existing Treasury policy.

Passage odds fall back to 27%

Polymarket traders now assign a 27% probability that the CLARITY Act will be signed into law before the end of 2026. The market had climbed above 80% in February before Senate delays and disagreements over ethics and decentralized finance weakened expectations.

The falling odds reflect the bill’s narrowing legislative path rather than a formal defeat. Negotiations could continue during or after the recess, although a delay would leave less time before the U.S. midterm elections complicate the congressional calendar.

The legislation would establish a federal market-structure framework and clarify how the Securities and Exchange Commission and Commodity Futures Trading Commission divide oversight of digital assets.

Bernstein warns of another crypto sell-off

Bernstein analysts warned that a Senate failure to advance the bill could trigger an immediate decline in Bitcoin and the broader crypto market. They described the potential response as an industry “knee-jerk” sell-off capable of driving digital asset valuations through another leg lower.

“From a tactical standpoint, we expect the crypto market to bottom and start showing momentum towards late Q3 and early Q4 prior to the mid-terms,” the analysts wrote in a Monday client report.

Bernstein expects a legislative delay could also pressure the SEC and CFTC to issue more guidance through Project Crypto. That effort could cover token classifications, decentralized finance and a potential exemption for qualifying token issuances.

Regulatory guidance could provide temporary relief for U.S. crypto companies, but it would not carry the same permanence as a law passed by Congress. The White House’s response to the ethics compromise, and any cloture filing from Senate leaders therefore remain the next developments to watch.

Hashdex has announced plans to wind down its spot Bitcoin exchange-traded fund, the DEFI product listed on NYSE ARCA, and return value to shareholders. In a filing made public Monday, the fund issuer said the liquidation will occur later this month, with cash proceeds distributed to remaining investors and the fund’s approximately 225 BTC holdings sold.

The decision is tied to an internal review of the fund’s business and market conditions, including trading liquidity, ongoing operating expenses and investor interest, according to the filing.

Key takeaways

• Hashdex will liquidate its DEFI spot Bitcoin ETF later this month and distribute cash to remaining shareholders.
• The fund is expected to sell its roughly 225 BTC position as part of the wind-down process.
• Hashdex cited trading liquidity, operating costs, and investor demand as reasons for the liquidation decision.
• The DEFI fund has traded on NYSE ARCA under the DEFI ticker since March 2024.
• At the time of publication, the ETF reported net assets of about $14.25 million and sat far below the scale of the largest U.S. Bitcoin ETF products.

Why Hashdex is liquidating the DEFI spot Bitcoin ETF

Hashdex’s plan centers on a straightforward liquidation and distribution. In an SEC filing, the issuer stated that it has determined the fund should be wound down after assessing multiple operational and market-related factors.

The filing points to three key considerations that frequently influence whether an ETF can operate efficiently: how liquid the product is in the market, the costs of running the fund, and whether investor participation is strong enough to justify continued operations. Those factors, taken together, are described as the basis for Hashdex’s decision.

The fund, which trades on NYSE ARCA under the DEFI ticker, has 200,000 shares outstanding and reported net assets of $14.25 million, per the fund’s website. The issuer’s filing also indicates that the ETF has been trading under the DEFI ticker since March 2024.

Scale and timing: a spot ETF that arrived after the rush

DEFI is often framed as a “late entrant” into the broader wave of U.S. Bitcoin ETFs. The first wave of competing Bitcoin ETF launches began months before Hashdex’s spot product began trading, and the issuer later launched the fund with a narrower runway relative to larger, already-established peers.

That timing mattered in a market where investor flows quickly concentrated into the most widely held products. The fund’s assets and liquidity are reflected in the comparatively small net asset base. SoSoValue data indicates DEFI’s highest asset level reached $17.54 million on May 9, 2025.

By contrast, WisdomTree Bitcoin Trust (BTCW) is currently much larger. According to the figures cited via the article’s reference, BTCW had $140.37 million in net assets as of Friday’s market close, underscoring the wide gap between DEFI’s reported size and that of the next-largest U.S.-traded Bitcoin ETF after the major leaders.

Industry commentary at the time of the spot ETF expansion suggested that competitive positioning was possible even for late entrants—if fees were attractive and the product could find demand. In a March 27, 2024 post cited in the article, Bloomberg Senior ETF analyst Eric Balchunas said: “The getting is so good right now I could see this one getting some bites (if the fee is competitive) despite being so late.”

From futures ETF origins to a spot ETF wind-down

Hashdex’s Bitcoin fund story did not start with a spot product. The issuer previously launched the Hashdex Bitcoin Futures ETF in 2022. Over time, Hashdex shifted into the U.S. spot-ETF landscape, and DEFI began trading in March 2024 under NYSE ARCA’s DEFI ticker.

The fund’s lifecycle now appears to be ending just over a year after it began trading as a spot ETF. While the filing does not cite a market-wide issue, it is clear that the issuer’s internal assessment concluded that continuing the fund was no longer justified given the operational economics and demand signals.

For investors, that matters because liquidation changes the practical mechanics of exposure: instead of holding shares in a continuously operating ETF, remaining shareholders will receive cash after the fund sells its underlying Bitcoin holdings. That can alter tax and portfolio planning considerations depending on each investor’s jurisdiction and circumstances.

What to watch next for DEFI shareholders and the broader ETF lineup

Hashdex’s liquidation announcement may also serve as a reminder that even in a bullish macro narrative around Bitcoin ETFs, product viability can differ significantly across issuers. Liquidity, cost structure and sustained investor demand can determine whether an ETF remains competitive enough to justify continued operation.

In the near term, the key question for DEFI holders is how the liquidation process will be executed in practice—particularly around the timing of the sale of the fund’s Bitcoin holdings and how cash distributions are calculated and delivered after liquidation. For the wider market, readers should also watch whether other smaller Bitcoin ETF products face similar viability reviews, and whether fee competition continues to reshape which funds capture the most assets.

As Hashdex moves toward distribution, investors should focus on the specific mechanics of the wind-down as described in the SEC filing and any follow-up disclosures, while keeping an eye on how quickly the remaining U.S. Bitcoin ETF ecosystem consolidates further around the largest and most liquid products.

FalconX has reportedly cut about 10% of its global workforce as the digital asset prime broker prepares for an extended cryptocurrency market downturn.

FalconX layoffs affect about 10% of staff

FalconX implemented the workforce reduction across its global operations, Bloomberg reported Monday, citing people familiar with the matter. The company employed approximately 350 people before the layoffs, suggesting that around 35 positions may have been affected.

Its workforce was spread across the United States, the United Kingdom, Singapore and Hong Kong. FalconX has not publicly disclosed which teams, offices or roles were included in the cuts.

The company has not disclosed the expected cost savings, severance expenses or a timeline for completing the restructuring.

FalconX operates as a prime broker for institutional digital asset investors, offering trading, financing and risk management services. Unlike a retail exchange, its core customers include hedge funds, asset managers and other professional trading firms.

FalconX shifts its Singapore strategy

FalconX is also changing its strategy in Singapore, where it plans to concentrate on crypto derivatives trading and withdraw its license application with the Monetary Authority of Singapore.

The withdrawal does not mark a complete exit from Asia. FalconX reportedly plans to retain a presence in the region while expanding its European operations.

FalconX entered Singapore in 2023 and launched an over-the-counter derivatives business aimed at institutional customers across the Asia-Pacific region. At the time, the company said it intended to seek the licenses needed to offer a broader set of prime-brokerage services.

The new approach narrows that plan as FalconX directs resources toward business lines it considers better positioned during the downturn. The company has not provided details about how the change will affect existing Singapore employees or customers.

Bitcoin downturn pressures crypto companies

The cuts come as falling cryptocurrency prices weigh on trading volumes and industry revenue. Bitcoin was trading near $63,500 on Tuesday after reaching an intraday low around $62,200, leaving it nearly 50% below its October 2025 peak above $126,000.

The decline has reduced retail activity and pushed crypto companies to control costs or expand into businesses less dependent on spot-market trading. Derivatives, institutional services and tokenized financial products have become increasingly important as firms seek more stable revenue sources.

FalconX strengthened its institutional and asset-management operations in November 2025 by completing its acquisition of 21shares. The transaction combined FalconX’s prime-brokerage infrastructure with the crypto exchange-traded product issuer’s global business.

21shares currently manages more than $12 billion across over 50 crypto exchange-traded products, including US-listed funds. FalconX has not indicated that the reported layoffs will affect those products or their investors.

Crypto layoffs spread across the industry

The FalconX reduction is the latest in a series of layoffs that have swept through the cryptocurrency industry during the market slowdown.

As reported by crypto.news on July 31, Luno cut about 20% of its global workforce while redirecting resources toward institutional customers and its business-to-business unit. Chief Executive James Lanigan said automation and operational changes had reduced the resources required to run the exchange.

Pump.fun also reportedly dismissed employees shortly before their PUMP token allocations were scheduled to vest. At least one former worker allegedly lost an allocation that later reached a seven-figure value. Former employees also claimed that Baton Corp., the company behind Pump.fun, conducted another round of layoffs in July.

Coinbase, Crypto.com, Gemini and BitGo have also reduced staff during the broader downturn. The growing number of cuts suggests that companies are preparing for weak market conditions to continue, even as many redirect spending toward automation, derivatives and institutional services.

FalconX’s next steps will center on implementing its narrower Singapore strategy while developing its European business. Further details will depend on whether the company formally confirms the layoffs and explains how the restructuring affects its regional operations.

A former FBI supervisory agent allegedly stole about $1 million in cryptocurrency, mixed it with personal funds, and asked ChatGPT how to use the money and relocate to Europe.

FBI agent allegedly transferred crypto using discovered keys

Federal authorities arrested Yaroch on Friday over allegations that he took cryptocurrency from wallets described in court documents as “adversarial cryptocurrency accounts.”

An affidavit filed on Aug. 1 said Yaroch discovered private keys that gave him access to the digital wallets. He allegedly used those keys to transfer funds to himself through roughly a dozen transactions beginning in late 2024 or early 2025.

Yaroch reportedly told investigators that he was frustrated by his inability to do more to stop people connected to an “adversarial nation” from using cryptocurrency. However, prosecutors allege that he transferred the assets for his own benefit rather than through an authorized seizure or forfeiture process.

The suspected theft totaled approximately $1 million, according to the affidavit. Court documents did not identify the digital assets involved or disclose the wallets from which they were allegedly taken.

Yaroch later told a Department of Justice employee that he had made “some very poor decisions related to cryptocurrency wallets.” During a separate interview, he also acknowledged to federal agents that he had made a serious mistake.

ChatGPT searches covered $1 million and Portugal

Investigators said Yaroch mixed the disputed cryptocurrency with his personal funds and used ChatGPT to consider what to do with the money.

His questions reportedly covered how to spend or invest $1 million and whether he should leave the United States for a European country. The affidavit included a response in which ChatGPT suggested Portugal based on personal details Yaroch had shared, including his family, preferred property size and interest in wine.

“Given everything you’ve told me — [name of Yaroch’s child], your wife, the desire for a 2-5 hectare estate, interest in age-worthy red wine, and the goal of actually living there rather than just owning a property — I would not start by chasing citizenship,” the chatbot responded, according to the affidavit.

The response then identified Portugal as its top option for Yaroch’s stated circumstances. Authorities also found that he had purchased a ticket to Portugal departing on Sept. 3, along with a return flight.

The court filing does not indicate that ChatGPT knew the funds were allegedly stolen. It also does not establish that Yaroch acted on the chatbot’s financial suggestions.

Former agent worked in FBI counterintelligence

Yaroch served as a supervisory special agent in the FBI headquarters’ Counterintelligence and Espionage Division. He had previously worked in the agency’s Boston field office.

His position could become a central part of the case because it may explain how he encountered the wallet keys and assets described in the affidavit. The filing, however, does not publicly detail how the FBI obtained the wallets or what investigation they were connected to.

The FBI fired Yaroch on July 31. He was later charged with interstate transportation of stolen goods and receipt of stolen goods, securities, and money.

The charges remain allegations, and Yaroch has not been convicted.

Crypto custody failures face wider scrutiny

The case comes as cryptocurrency security incidents renew questions about access controls and the handling of wallet credentials.

Coldcard recently faced scrutiny over a five-year seed-generation flaw linked to suspected attacks involving more than 1,800 BTC across over 5,200 potential victim addresses. Galaxy Research cautioned that those figures are on-chain estimates and do not confirm that one attacker caused every loss.

Separately, Ostium said an attacker compromised its off-chain infrastructure and manipulated BTC-USD price reports to drain 23.75 million USDC from its liquidity vault. The protocol said its smart contracts and governance multisigs were not breached.

Yaroch’s case differs because it concerns alleged insider theft by a US law-enforcement employee rather than an external technical exploit. It nevertheless shows how access to wallet keys can bypass other safeguards when custody procedures fail.

FalconX, the digital-asset prime broker that acquired 21Shares last November, has reportedly cut about 10% of its workforce as it braces for what Bloomberg describes as a prolonged downturn in crypto markets. The staff reduction, reported Monday, comes as the firm looks to refocus its business and tighten spending across key regions.

According to people familiar with the matter cited by Bloomberg, FalconX is also reshaping its Singapore strategy—shifting emphasis toward crypto derivatives trading—and plans to withdraw its license application with the Monetary Authority of Singapore (MAS). Bloomberg further reported that the company intends to keep a presence in Asia while expanding its European operations.

Key takeaways

• Bloomberg reports FalconX has reduced roughly 10% of staff as the firm anticipates a longer-than-expected crypto market slump.
• FalconX is reportedly pivoting in Singapore toward crypto derivatives and intends to withdraw its MAS license application.
• The workforce cut affects staff across multiple markets, after FalconX previously had around 350 employees in the US, UK, Singapore, and Hong Kong.
• FalconX’s move aligns with broader industry cost reductions seen across exchanges and crypto service providers during the downturn.
• The report highlights a wider sector shift from pure spot trading toward derivatives and tokenized asset products.

Workforce cuts and a broader corporate reset

Bloomberg, citing people familiar with the matter, said FalconX carried out the layoffs as part of preparations for what it described as an extended downturn. Before the reduction, the company employed about 350 people across the United States, the United Kingdom, Singapore, and Hong Kong, according to the report.

Bloomberg also noted that FalconX is reshaping its strategy in Singapore by placing more focus on derivatives-related activity. At the same time, the firm is reportedly preparing to withdraw its license application with MAS, signaling that it expects its Singapore roadmap to change materially rather than waiting for approval.

Cointelegraph reached out to a FalconX spokesperson for comment but did not receive an immediate response.

Singapore licensing changes signal a strategic pivot

The decision to withdraw a licensing application—if confirmed—marks a tangible adjustment to FalconX’s approach in Singapore. Rather than pursuing the planned regulatory pathway, the firm is reportedly moving toward a derivatives-focused business model while maintaining its wider regional footprint.

Bloomberg’s report also suggested that FalconX plans to keep operating in Asia, but with a different emphasis, while expanding in Europe. For investors and counterparties, these kinds of shifts can affect how firms allocate liquidity, structure partnerships, and manage regulatory risk across jurisdictions.

FalconX’s earlier acquisition of 21Shares in November also frames the importance of this period: prime brokerage activity and related capital markets services can be highly sensitive to trading conditions, volatility, and institutional engagement—variables that tend to soften during extended bear-market stretches.

Industry downsizing grows as trading volumes cool

The reported workforce reduction adds FalconX to a broader list of crypto businesses scaling back operations during the market downturn. Bloomberg’s report places the company alongside moves already seen from exchanges and infrastructure providers, including Coinbase, Crypto.com, Luno, Gemini, and BitGo, according to references cited in the original coverage.

While the scale and reasons vary by firm, the pattern is consistent: when spot activity and retail participation weaken, businesses often reduce headcount and reallocate resources toward segments that may hold up better—such as derivatives, institutional services, and tokenized real-world asset products.

Exchanges increasingly lean on derivatives and tokenized products

Pressure on exchanges has been building as Bitcoin and other digital assets retreated from last year’s highs, weighing on trading volumes and retail engagement. Earlier coverage from Cointelegraph cited analysts who believe Bitcoin may not yet have reached a market bottom, implying that the broader industry could face continued headwinds.

At the time of the original reporting, Bitcoin was last trading below $64,000—about 50% under its October peak above $126,000. In such conditions, many platforms appear to be searching for revenue resilience beyond spot trading.

CoinGecko data referenced in the original article suggests that the “crypto TradFi” sector—covering tokenized assets, derivatives, and traditional finance-style products—grew fivefold to $6.6 billion between January 2025 and June 2026. Tokenized stocks and commodities were described as leading contributors to that expansion.

Coinbase’s most recent earnings, as referenced in the original coverage, also underscored how the mix can shift during a downturn. Even though the company missed earnings expectations, it reported that 88% of second-quarter net revenue came from businesses other than spot Bitcoin trading, with derivatives, prediction markets, and tokenized assets playing a more prominent role.

Taken together, these developments point to a central industry tension: spot-driven revenue models can be difficult to sustain in extended drawdowns, while firms with deeper derivatives distribution, tokenization services, or institutional market-making capabilities may have more levers to manage through volatility cycles.

What to watch next is whether FalconX’s reported Singapore licensing withdrawal and derivatives emphasis translate into measurable growth in activity—or whether the company’s European expansion becomes the next major operational focus. For the wider market, the key signal will be how quickly trading ecosystems shift their revenue dependence away from spot as conditions remain uncertain.