Bitwise has launched its first exchange traded product tracking Lighter’s LIT token on Deutsche Börse Xetra, giving European investors access to the asset through conventional brokerage accounts.

According to Bitwise, the Bitwise Lighter Staking ETP began trading under the ticker BLIT on Sept. 23 and tracks the Kaiko Lighter Reference Rate. The product carries an annual total expense ratio of 0.85% and is issued by Bitwise Europe GmbH in Germany.

Bitwise Lighter ETP holds more than 1 million LIT

BLIT is physically backed by LIT held in cold storage, meaning the product holds the underlying cryptocurrency instead of providing synthetic exposure to its price.

Bitwise data showed 202,594 ETP units outstanding as of Sept. 23, backed by 1.01 million LIT. Assets under management stood at approximately $4.74 million, with each ETP unit representing just under 5 LIT.

The structure allows investors to gain exposure to LIT using a regular brokerage account without directly holding the cryptocurrency or managing private keys and wallets.

LIT serves as the native token of Lighter, an Ethereum layer 2 decentralized exchange focused on perpetual futures and other onchain markets. The platform uses zero knowledge proofs to verify order matching and liquidations while processing transactions away from Ethereum before submitting proofs to the network.

Lighter has expanded beyond crypto perpetuals by offering markets tied to assets such as Apple, Amazon and Tesla shares. Users gain price exposure through perpetual contracts instead of owning the underlying stocks.

The exchange generates revenue from professional market makers, liquidations and treasury income while charging retail traders no trading fees.

Lighter has become one of the more active platforms in the decentralized perpetual futures market. During a major crypto market selloff in February, the exchange processed roughly $7.5 billion in perpetual futures volume over 24 hours, accounting for close to 9.5% of activity tracked across the sector.

Could the Bitwise ETP impact Lighter price?

The launch gives LIT another potential source of demand because BLIT is backed by the underlying token, but the size of the product remains small compared with LIT’s overall market value.

Bitwise held 1.01 million LIT worth $4.74 million for BLIT as of Sept. 23. CoinGecko placed LIT’s market capitalization at roughly $1.27 billion on the same day, while trading volume stood near $84.7 million.

BLIT therefore represents a small portion of the existing LIT market at launch. Its effect on supply could become more noticeable if the ETP attracts sustained inflows that require more tokens to back newly created units.

LIT was already trading higher around the launch. CoinGecko data showed the token at roughly $5 on Sept. 23, with its value in several currency pairs up close to 9% over the previous 24 hours. LIT had closed Sept. 21 near $4.74 before moving to $5.07 on Sept. 22.

The timing means the ETP listing has arrived during an existing move in LIT, making it difficult to attribute the token’s gains solely to Bitwise’s product.

Previous developments have shown that new distribution channels can coincide with LIT price moves. When Lighter added Robinhood Chain collateral support, LIT gained roughly 15%, while the integration gave eligible Robinhood Wallet users direct access to Lighter perpetual futures.

A similar access point opened in August when Upbit added a LIT won market, allowing customers to buy the token directly against South Korea’s currency.

Supply remains another factor. LIT launched with 25% of its total supply distributed through a community airdrop. Half of the overall token supply was allocated to the ecosystem, while 26% went to the team and 24% to investors. Team and investor allocations were placed under a one year lockup followed by three years of linear vesting.

Bitwise’s current holdings are therefore small compared with the amount of LIT that could enter circulation under the token’s longer term distribution schedule.

Staking has not started for BLIT

Despite its name, the Bitwise Lighter Staking ETP is not currently staking the LIT backing the product.

Bitwise said staking will begin only after BLIT reaches sufficient assets under management to make staking operations efficient. The company has not disclosed the required asset level or a date for activation.

Until then, BLIT provides exposure only to LIT’s price, while investors continue to pay the product’s 0.85% annual fee.

If staking begins, rewards earned by the ETP are expected to accrue daily and be reflected in the amount of cryptocurrency represented by each unit. Bitwise said it will announce the start of staking separately.

LIT already has staking functions within the Lighter ecosystem. Staking can provide access to the Lighter Liquidity Pool, with each staked LIT allowing users to deposit up to 10 USDC into the pool. Unstaking carries a three day lockup period.

Lighter has tied its token economics to protocol activity as well. The project launched LIT in December with plans to direct protocol revenue between ecosystem growth and token purchases depending on market conditions.

The buyback mechanism has previously coincided with price moves. LIT climbed around 16% when Lighter’s treasury began token buybacks in January, when protocol fees began flowing toward market purchases.

Bitwise expands its onchain trading products

BLIT follows Bitwise’s move into investment products tracking tokens connected to decentralized perpetual futures platforms.

The asset manager launched the Bitwise Hyperliquid Staking ETP in Europe in April, giving investors exchange traded exposure to HYPE. Bitwise later introduced a U.S. Hyperliquid ETF in May.

The U.S. product recorded 16 consecutive days of inflows following its launch before posting its first daily outflow in June, showing how flows into exchange traded crypto products can change after their initial trading period. Crypto.news previously reported that the Bitwise ETF created another regulated demand channel for HYPE while exposing the token to changes in ETF flows.

Lighter and Hyperliquid have competed for activity in the decentralized perpetual futures market. Lighter recorded close to $198 billion in 30 day perpetuals volume toward the end of 2025, compared with roughly $166 billion for Hyperliquid at the time.

Bitwise Managing Director and Head of Europe Bradley Duke said the new ETP expands the firm’s European staking products into a platform bringing assets such as U.S. stocks onto blockchain infrastructure.

“As on-chain trading platforms increasingly bridge crypto and mainstream markets, we expect this kind of infrastructure to become more relevant to a broader range of investors,” Duke said.

Lighter founder and CEO Vladimir Novakovski said the platform was built to provide institutional grade perpetuals trading onchain using zero knowledge proofs for verifiable execution.

“We’re excited to bring LIT to European investors who don’t yet have a direct way into on-chain markets,” Novakovski said.

BLIT is domiciled in Germany and listed on Deutsche Börse Xetra under ISIN DE000A4AV9T5. Bitwise lists the product as a secured debt security with physical replication, no leverage and no asset lending.

Bitcoin climbs above $86,000 as spot ETF inflows near $1 billion, while Ether funds gain traction and renewed crypto demand supports a broader market rebound.

Key Insights

Bitcoin trades near $86,500 as ETF inflows reach almost $1 billion in one day.

IBIT, ARKB and FBTC captured most of Monday’s renewed Bitcoin ETF demand.

Ether ETF inflows also rise, widening the recovery beyond Bitcoin across crypto.

Bitcoin traded near $86,500 on Wednesday as strong ETF demand reinforced its recent breakout and lifted broader crypto markets. The cryptocurrency reached $87,395 this week, marking its highest level since January. Meanwhile, U.S. spot Bitcoin ETFs attracted $998.95 million on September 21, according to SoSoValue data.

Bitcoin

Bitcoin’s latest advance followed a sharp reversal in ETF flows after a weak period for digital-asset products. The funds recorded their largest daily inflow since October 2025, while Bitcoin moved above $87,000 during Monday’s session. Moreover, the buying followed a $433 million inflow recorded by spot Bitcoin ETFs on September 18.

BlackRock’s iShares Bitcoin Trust led Monday’s ETF activity with $381.4 million in net inflows. ARK 21Shares Bitcoin ETF followed with $289.1 million, while Fidelity Wise Origin Bitcoin Fund received $238.8 million. Together, the three funds accounted for most of the day’s reported inflows, showing concentrated demand across major products.

The renewed demand also coincided with heavy short-position liquidations across crypto markets. Nearly $919 million in crypto short positions were reportedly liquidated during the latest surge, according to data cited by Investors Business Daily. Therefore, the rally combines stronger ETF flows with forced buying from traders who had positioned for further price declines.

Ether

Ether has also gained support as flows into spot Ether ETFs strengthen alongside Bitcoin’s recovery. U.S. spot Ether ETFs attracted about $143.8 million on September 18, ending three consecutive sessions of redemptions. BlackRock’s iShares Ethereum Trust accounted for most of that daily inflow, according to SoSoValue data.

The broader Ether ETF market then recorded about $270 million in net inflows on September 21. That marked the strongest single-day inflow for the group since October 2025, according to reported SoSoValue figures. Meanwhile, Ether recently traded around $2,773 as its price followed the wider cryptocurrency recovery.

The ETF activity gives the crypto rebound a broader base beyond Bitcoin, although daily flows can change quickly. Bitcoin still commands the largest share of U.S. spot crypto ETF assets, while Ether products continue building institutional market access. As a result, sustained creations across both groups would provide a clearer measure of whether renewed demand can persist after short-covering activity fades.

Diversification Debate and What Comes Next

The latest market action also intersects with a wider debate about portfolio diversification and dollar exposure. Howard Marks has argued that moving from U.S. stocks into dollar cash or bonds does not remove risks linked to the currency itself. His framework instead highlights assets such as international equities, gold and real estate as alternative sources of exposure.

Gold ETFs such as SPDR Gold Shares and iShares Gold Trust provide exposure to physical bullion rather than another dollar-denominated security. International equity funds such as Vanguard Total International Stock ETF also provide exposure to companies outside the United States. Real-estate funds, including U.S. and international REIT ETFs, offer another diversification route but remain sensitive to interest rates and economic conditions.

For crypto markets, the immediate focus remains on whether ETF demand can remain strong after the latest surge. Monday’s near-$1 billion Bitcoin inflow provides a major data point, but one session cannot establish a lasting trend. Therefore, continued ETF creations, sustained spot demand and reduced dependence on short liquidations will remain important measures for the next phase.

Wallets labeled as belonging to the FTX bankruptcy estate and Alamada Research transferred as much as 27,373 ether , worth about $75 million, to crypto market maker Wintermute, according to two onchain analysts.

PeckShieldAlert flagged a transfer of 23,639 ether, worth roughly $65 million, from an Alameda Research and FTX bankruptcy estate-labeled address to a Wintermute wallet early on Wednesday. Onchain analyst EmberCN said six wallets transferred a combined 27,372 ether to Wintermute in a post on X. EmberCN traced the transfers and shared the Wintermute wallet movements on the Arkham intelligence platform.

The discrepancy between the two onchain analysts suggests that PeckShield’s alert identified the largest single transaction, whereas EmberCN took into consideration several transfers. The largest part of the transfer sent 23,639 ether to an labeled “Wintermute” on Etherscan.

A transfer to a market maker or over-the-counter platform can signal that a holder intends to sell or hedge a large position without sending it directly to an exchange. But the onchain data does not establish that Wintermute has sold the ether or that the transfer was made to fund creditor repayments.

Bitcoin (BTC) faces its “next real test” at $90,000 as traders continue to return to unrealized profit.

Key points:

• Bitcoin profit-takers may stall BTC price upside at $90,000, CryptoQuant predicts.
• Onchain signals, including price reclaiming its 365-day moving average at $80,500, led analysts to call the start of the next bull market.
• CryptoQuant CEO Ki Young Ju sees future cycle tops and bottoms as shallower thanks to institutional ownership.

Profit-taking means “natural pause” for BTC price at $90,000

In its latest weekly report issued on Tuesday, onchain analytics platform CryptoQuant warned that the area around $90,000 will bring increased odds of profit-taking should price reach it.

Bitcoin traders’ realized price — the average acquisition price of BTC that last moved onchain between one and three months ago — currently sits at $64,300. CryptoQuant data shows upper and lower bands around this level, signifying profit or loss margins for this cohort of the supply. The “upper band” for profit-taking sits at $90,300, or 40% above the realized price.

“The upper band coincides with the $88K–$90K on-chain supply cluster, making it the next resistance to clear. Historically, as price approaches the upper band, trader profit margins stretch and selling can intensify — a natural pause point within an uptrend, not a reversal,” CryptoQuant analysts stated.

Bitcoin trader realized price data (screenshot). Source: CryptoQuant

The report describes the path between current spot price at $86,000 and the profit-taking zone as “largely clear” while seeing no return to bear-market conditions.

“The bull market is confirmed. Technicals, valuation and on-chain data now point the same way — up,” it continued, echoing a previous assertion from CryptoQuant CEO Ki Young Ju.

In an X post this week, Ki saw future Bitcoin price cycles becoming less extreme than previous ones thanks to a shift from retail to institutional BTC ownership. 

“Today, a much larger market and growing institutional ownership are dampening both extremes. The same forces that limit the upside also soften the downside,” he wrote.

Bitcoin profitability stabilizes in 2026

Ki noted that during the 2026 bear market, Bitcoin’s market value to realized value (MVRV) ratio did not fall below its breakeven point of 1 at any point, signaling that the broader investor base remained in aggregate profit throughout — a clear contrast to prior macro downtrends.

Related: Bitcoin adds to bull-market hopes as price metric prints fourth-ever bullish cross

As Cointelegraph reported, MVRV has now crossed above its 365-day moving average — an event that signaled the end of both the 2018 and 2022 bear markets.

Bitcoin MVRV ratio. Source: CryptoQuant

New capital inflows to Bitcoin remain notably high this month. The US spot Bitcoin exchange-traded funds (ETFs) saw net inflows of $1.7 billion for the first two days of the week, per data from UK-based investment company Farside Investors. Monday’s $999 million tally constituted the largest single-day total since October 2025.

Bitcoin ETF netflows data. Source: Farside Investors

Bitcoin is consolidating on Wednesday after an explosive breakout on Monday, trading at $86,379 in the European morning, up 0.24% since midnight UTC and 1.3% over 24 hours as daily trading volume dips by 36% to $38 billion.

Beneath the surface the rally has narrowed sharply, with 38 of the 100 CoinDesk 100 constituents lower on the day, even as the index itself rose 0.67% to 1,926.99. Over the rolling 24 hours the picture is still broad, 87 higher and 13 lower, which places the weakening firmly in the past few hours rather than on Tuesday.

The majors have split rather than moved together, XRP (XRP) adding 3.3% to $1.62 and bitcoin cash 2.0% to $351.59, while ether slipped 0.089% to $2,750.24 as chainlink lost 0.0053%.

BitMEX, the crypto derivatives platform that helped pioneer perpetual futures trading, marked the end of an era Wednesday, shutting down exchange operations except for withdrawals..

Trading, deposits and new positions are no longer available as of 04:00 UTC on Tuesday, BitMEX said in a statement on X. Users can still log in and withdraw their balances through the platform’s website, but the company said deposits are definitely no longer possible.

BitMEX, which was co-founded by Arthur Hayes, Ben Delo and Samuel Reed in 2014 urged its customers to withdraw funds and said account fees now apply to know-your-customer (KYC) verified users who leave balances on the exchange. The monthly charge is based on an annualized 1% of assets or a $50 equivalent minimum, whichever is greater.

The closure brings to an end the 11-year run of an exchange that helped establish the perpetual swap, now the dominant instrument in crypto derivatives markets. But BitMEX’s shutdown is not a freeze on customer assets, as the platform reiterated that withdrawals remain available as it winds down.

US Commodity Futures Trading Commission (CFTC) Chair Michael Selig said financial markets should prepare for “mass tokenization” as regulators adapt existing frameworks for blockchain, artificial intelligence and onchain markets.

In remarks delivered Tuesday at the US Treasury Market Conference, Selig said tokenization of real-world assets (RWAs) could become the foundation of a more efficient financial system, enabling near-instant settlement and real-time collateral movement between clearinghouses, intermediaries and users.  

“Just as the transition from hand signals to electronic trading advanced our financial system, I believe tokenization can do the same for all asset classes,” Selig said, adding that the CFTC would pursue principles-based rules as tokenization and onchain finance evolve.

Selig said in August that the CFTC would move ahead with crypto rules under its existing authority if Congress did not pass the CLARITY Act. The Senate failed to advance the bill on Sept. 15.

Related: CFTC issues warning over risky prediction market ‘mention’ contracts

On Sept. 17, the CFTC submitted a regulatory action covering crypto asset transactions and markets for White House review. The filing is still at the “prerule” stage and does not detail the planned regulations.

SEC also moves to bring markets onchain

Officials at the US Securities and Exchange Commission (SEC) have also promoted the development of tokenized markets.

In a Bloomberg TV interview, the SEC’s Division of Trading and Markets Director Jamie Selway said that tokenization and crypto have recently become politicized but are “not naturally a politicized function.”

Selway said US success in developing the markets should receive bipartisan support.

On Sept. 17, the SEC granted a temporary “Innovation Exemption” for tokenized US stock trading. 

The exemption lets certain platforms trade digital versions of US-listed stocks under certain conditions.

SEC Chair Paul Atkins said in February that such an exemption could facilitate onchain trading while regulators developed longer-term rules.

Magazine: Who needs CLARITY anyway? ARB could see 70X increase: Hodler’s Digest

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