Crypto Market Surges: Altcoin ETFs Near Approval, Visa Adopts Stablecoins, and BTCFi Expands
Executive Summary
The cryptocurrency market is experiencing a significant uplift driven by a confluence of regulatory developments, institutional adoption, and infrastructure advancements. Bloomberg Senior ETF Analyst Eric Balchunas has effectively declared 100% odds for the approval of various altcoin spot ETFs, including those for Litecoin, Solana, and XRP, following the SEC's new generic listing standards. Concurrently, Visa has initiated a pilot program to integrate USDC and EURC stablecoins into its Visa Direct service for cross-border payments, aiming to streamline transactions. Furthermore, Starknet has launched a substantial 100 million STRK incentive program to foster its Bitcoin finance (BTCFi) ecosystem, promoting institutional-grade Bitcoin yield products.
The Event in Detail
Visa Pilots Stablecoin for Cross-Border Payments
Visa has launched a pilot program enabling banks and financial institutions to pre-fund cross-border payments using stablecoins. Announced at SIBOS 2025, this initiative utilizes Circle's USDC and EURC to facilitate near-instant payouts via Visa Direct, a move designed to reduce settlement times from days to minutes. Chris Newkirk, president of commercial and money movement solutions at Visa, stated that the goal is to modernize treasury operations and reduce the need for capital to be pre-parked. The stablecoin market capitalization stands at over $307 billion, and Visa has already settled more than $225 million in stablecoin volume. The pilot is currently limited to select partners, with a broader rollout anticipated in 2026. This strategy aims to unlock working capital, mitigate currency volatility exposure, and improve predictability in treasury flows.
Altcoin ETF Approvals Deemed 100% Certain by Bloomberg Analyst
Bloomberg Senior ETF Analyst Eric Balchunas has assessed the odds of SEC approval for spot altcoin ETFs as effectively 100%. This follows the SEC's implementation of new generic listing standards, which have rendered the 19b-4 filing process largely obsolete. The SEC instructed issuers to withdraw pending 19b-4 filings for Litecoin, XRP, Solana, Cardano, and Dogecoin ETFs. The approval now hinges primarily on the S-1 registration statements, which detail the ETF structure and operations. Seven major asset managers, including Franklin Templeton, Fidelity, CoinShares, Bitwise, Grayscale, VanEck, and Canary Capital, have submitted updated S-1 documents for spot Solana ETFs. The new framework fast-tracks pending applications and reduces review timelines for new submissions from 240 days to as little as 75 days. The SEC's approval of Grayscale's Digital Large Cap Fund under this streamlined system, offering exposure to Bitcoin, Ether, XRP, Solana, and Cardano, underscores the shift. Over 92 crypto ETF applications are awaiting SEC review, with decision deadlines extending into October and November, including Franklin Templeton's Solana and XRP ETF applications by November 14.
Starknet Launches 100 Million STRK Incentive for BTCFi Expansion
Starknet is initiating a new era for Bitcoin finance (BTCFi) with a 100 million STRK incentive program and the activation of trustless Bitcoin staking. This initiative aims to position Starknet as a key execution layer for Bitcoin. Re7 Capital, a regulated firm managing over $1 billion in assets, is launching an institutional-grade Bitcoin yield product on Starknet. This product combines conservative off-chain derivatives strategies with on-chain passive yield opportunities, including staking on Starknet, to generate returns in BTC. The staking mechanism on Starknet currently relies on wrapped assets such as tBTC, LBTC, WBTC, and SolvBTC, meaning users interact with smart contracts on Starknet while custody depends on the safety of the wrapper infrastructure and cross-chain bridges. Tom Brand, StarkWare's head of product, emphasized that Starknet's approach allows BTC to directly secure a high-throughput zk rollup, underpinning real economic activity. This differs from projects like Babylon, which focuses on securing external proof-of-stake chains, and Botanix, which builds an EVM chain on Bitcoin.
Bitcoin and Ethereum ETF Inflows Rebound
US-listed spot Bitcoin and Ethereum ETFs collectively saw over $1 billion in net inflows on September 29, reversing previous outflows and signaling renewed institutional interest. Bitcoin ETFs recorded $521.95 million in inflows, led by Fidelity's FBTC with $298.70 million. Other significant contributors included Ark 21Shares' ARKB ($62.18 million), Grayscale's BTC and Bitwise's BITB (approximately $47 million each), and Invesco's BTCO ($35.34 million). BlackRock's IBIT was the sole Bitcoin ETF to register outflows, totaling $46.64 million. Ethereum ETFs saw even stronger inflows, reaching $546.96 million. Fidelity's FETH led with $202.18 million, followed by BlackRock's ETHA at $154.20 million. Grayscale's ETH and ETHE added $99.84 million and $22.77 million, respectively. This rebound coincided with a broader recovery in asset prices, with Bitcoin climbing back to $114,000, indicating strong institutional demand sensitive to market signals.
Market Implications
The cumulative effect of these developments points to a significant acceleration of institutional investment and integration within crypto markets. Visa's stablecoin pilot directly addresses inefficiencies in traditional cross-border payments, leveraging the $307 billion stablecoin market to improve liquidity and transaction speed for financial institutions. This move is expected to enhance efficiency for cross-border payments, potentially fostering broader mainstream adoption of stablecoins. The near-certain approval of altcoin ETFs will likely introduce substantial new capital into a wider array of digital assets, deepening liquidity and potentially leading to price surges for these assets. This regulatory clarity and streamlined access will attract a broader spectrum of institutional investors who previously faced barriers to entry. Starknet's BTCFi initiative, supported by a 100 million STRK incentive, aims to make Bitcoin a more productive asset within decentralized finance, thereby expanding its utility beyond a store of value. This contributes to deeper integration of crypto into traditional finance and enhances the utility of Layer 2 solutions. The recent rebound in Bitcoin and Ethereum ETF inflows, totaling over $1 billion, underscores renewed investor confidence and a trend towards increased institutional engagement, which is projected to triple in DeFi within two years.
Expert Commentary
Bloomberg Senior ETF Analyst Eric Balchunas emphasized the regulatory shift, stating: > "Honestly, the odds are really 100% now." He clarified that the SEC's new generic listing standards make the 19b-4 filings and their associated clock "meaningless," with only S-1 registrations awaiting formal approval. This indicates a significant procedural streamlining by the SEC. Timothy Misir, head of research at BRN, noted that the sharp recovery in Bitcoin's price to $114,000, coinciding with ETF inflows, reinforces the view that "institutional demand remains highly sensitive to market signals." Chris Newkirk of Visa highlighted the transformative potential of stablecoins in payments, stating: > "Cross-border payments have been stuck in outdated systems for far too long." He added that Visa Direct's new stablecoin integration lays the groundwork for money to move instantly across the world.
Broader Context
These developments signify a pivotal moment in the ongoing convergence of traditional finance and the digital asset ecosystem. Visa's strategic embrace of stablecoins for its Visa Direct service mirrors a broader industry trend toward leveraging blockchain technology for operational efficiency and cost reduction, particularly in global financial infrastructure. This move strategically positions Visa at the forefront of digital payment innovation, enhancing its offering to banks and financial institutions. The SEC's revised approach to ETF approvals, particularly for altcoins, marks a critical maturation of the regulatory landscape. By streamlining the approval process and effectively guaranteeing the listing of a wider range of crypto ETFs, the SEC is facilitating greater mainstream adoption and institutional access, thereby legitimizing digital assets further within conventional investment portfolios. This echoes the impact seen with Bitcoin ETFs, which have seen a structural shift from a retail-driven market to one dominated by institutional demand, with US spot Bitcoin ETFs alone managing nearly $219 billion in assets by early September 2025. Starknet's focus on BTCFi with significant incentives positions it as a key player in unlocking the utility of Bitcoin beyond a passive store of value. Its strategy of enabling trustless Bitcoin staking through wrapped assets, while different from direct native staking, is designed to integrate Bitcoin into the burgeoning decentralized finance ecosystem, creating new yield opportunities for institutional investors through platforms like Re7 Capital. This broader trend indicates that institutional capital is increasingly diversifying into utility-driven altcoins and sophisticated DeFi strategies, signifying a deepening integration of crypto into global financial markets and a reduction in market volatility as institutional participants bring greater stability and liquidity.
Edgen Crypto·Sep 30 2025, 15:38
