Sepolia is an Ethereum test network where developers try out apps before launching them for real, so the tokens have no market value and aren’t linked at all to the real Ether traded on Ethereum’s main network. The task came with no funded wallet to pay deployment fees, and the free-token faucets didn’t work. So the model wrote a script that created 362 addresses from recovery phrases often reused by developers, then checked each one for a suitable balance.

OpenAI says the incident occurred in September

One of the 362 addresses held enough test ether for the job, but before using it, the model stopped and asked itself in its notes whether it was ethical to use a publicly known key and the funds in it. It arrived at the conclusion that the money was “effectively abandoned,” since the recovery phrase was public and test tokens have no value before signing the deployment, paying the fees, and reporting the task as finished. Notably, the model did not say where the money came from.

On Ethereum’s main network, those fees would have come out of someone’s real holdings that the model had no claim to. This is worrying considering crypto and AI firms are now wiring up agents that hold wallets and pay for services with no human signing off on each transaction. OpenAI said it has since cut off the model’s live internet access and added monitoring. The report states that the incident occurred on June 26, but it wasn’t discovered until three months later on September 25.

OpenAI says it found out about the incident while expanding its misalignment monitoring across logs of older model activity. OpenAI has created a framework for reporting misalignment and released its first batch of reports, saying it wants to get concerning behavior out fast, “even when we haven’t fully explained or mitigated” it. However, due to the timing, every honest report becomes material for people assembling complaints like the FTC, which plans to put senior executives under oath and issued civil subpoenas to OpenAI and Anthropic on Wednesday for records on safety incidents, security practices and privacy policies, Cryptopolitan reported.

Months earlier, 15 Republican state attorneys general, led by Iowa’s Brenna Bird, told OpenAI to preserve every record of its Hugging Face breach, including any notes an agent left “apparently for future versions of itself” on escaping the company’s controls. OpenAI admitted to the Hugging Face breach in July, saying that rogue agents broke internal controls, reached the open internet and coordinated what it called “an unprecedented cyber incident.”

Agents reportedly probed three U.S. government sites, among them the Commerce Department’s Census Bureau and the SEC. OpenAI’s new site mentions a number of other incidents, including a September sandbox escape and a lab experiment with self-replicating prompt injection. OpenAI’s CEO Sam Altman has said the company is still sorting through agent activity logs and will disclose cases by severity. The Hugging Face incident is still the worst case found so far.

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“Non-operating companies,” per MSCI’s October 15 confirmation of its August proposal, will be ineligible for its Global Investable Market Indexes. The proposal passed with minor modifications and did not name any companies. All eyes now turn to November 11, when any firm exclusions will be folded into the November 2026 Index Review. The new rules confirmed by MSCI stretch its benchmark exclusion criteria to cover corporate issuers that behave like the investment funds, business development companies and other passive vehicles it already bars.

MSCI proposes new test to screen Strategy and other heavy asset firms

MSCI proposed a two-stage test to screen whether firms qualify to continue to be included in its index or not. The first test checks whether a company counts as a real business based on the amount of operating assets it holds.
Issuers that fail the core test face a second test that scores companies across five financial ratios: operating asset intensity, expense intensity, cash flow, fair value intensity and capital dependence.

Firms need to pass on at least four of the five financial ratios to retain their eligibility card. Firms already in the index have a buffer, only facing exclusion after failing the index’s screen in both of its most recent annual filings. Companies that are not yet in the index will be ineligible for inclusion if they have failed in either of their filings over the previous two years. The MSCI simulation ran on May 2026 data put publicly traded firms with crypto reserves, Strategy, Metaplanet and Sharplink, on alert after they were flagged alongside other asset holding firms for deletion or watchlist designation.

Yellow Cake, a UK uranium holder, was also recommended for deletion in the simulation. Strategy could see about $2.8 billion flow out of its stock if MSCI decides in November to drop the firm from its index, according to JPMorgan analysts. That potential outflow will result from a forced sell-off by funds tracking MSCI benchmarks. The company has already refuted the scale of an unfavorable MSCI decision, arguing that MSCI GIMI-linked funds hold only about 3.1% of its shares.

Strategy’s MSTR stock closed Thursday trading at $151.29, while Metaplanet’s stock traded at 277 yen (about $1.75). Strategy Executive Chairman Michael Saylor and CEO Phong Le signed a September letter calling the proposal “discriminatory, arbitrary, and misguided” and a “pretext” for targeting digital asset treasuries. The letter warned that it “would profoundly harm MSCI’s reputation as a reliable and neutral index provider.”

Saylor frames Strategy as an operating business. Originally MicroStrategy, it sells business intelligence software to clients including Coca-Cola and Porsche, and treats its Bitcoin treasury as a separate operating segment rather than an investment holding. The Bitcoin Policy Institute escalated the dispute up to the Congress level in a September 30 paper by Conner Brown. BPI called on Congress to scrutinize MSCI’s power, noting that 54% of long-term US fund assets track benchmarks from just three providers and that roughly $21 trillion is benchmarked to MSCI alone, as Cryptopolitan reported.

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Over the last few months, top-tier AI developers have acknowledged multiple instances of AI agents hacking or testing the defenses of online platforms. Fortunately, none of these early breaches resulted in widespread fatalities or catastrophic financial losses. The proposed restrictions would place greater emphasis on what advanced AI systems can do in real-world settings rather than relying solely on safety commitments made by their developers. As models become more capable of writing code, identifying software vulnerabilities, and carrying out complex tasks autonomously, regulators face the challenge of determining when a system’s capabilities cross the threshold into unacceptable risk.

Anthropic proposes $1B in damages if a model presents clear danger

Independent testing could help establish whether a model can bypass safeguards or be misused for harmful activities before it reaches a wider audience. However, defining an imminent threat remains difficult, particularly when the same capabilities that pose security risks can also help researchers identify and fix vulnerabilities. In defense of the bill, a spokesperson for Anthropic said it is similar to the security recommendations outlined in the company’s Advanced AI Framework, published in June.

In that framework, the firm had pointed out that its Claude Mythos Preview had already uncovered thousands of severe vulnerabilities, spanning every major operating system and web browser. Back then, it stressed that this trajectory is bound to accelerate, bringing an escalating risk of catastrophic real-world harm. It also pushed for a balanced regulatory approach that calls for government intervention without stifling innovation. Even then, the firm maintained that when an AI model presents extreme dangers, regulators must possess the unique statutory power to block it or impose heavy fines.

Up until now, Anthropic hasn’t openly endorsed any specific federal bills in Congress, though they have thrown their support behind a few state-level AI safety laws—including a couple in California, such as SB 53. That specific bill, enacted last year, requires companies to create and share their safety frameworks while working to mitigate major risks. It also obliges them to report any serious safety incidents to the state within 15 days. Under Anthropic’s proposal, third-party evaluators registered with the Commerce Department would routinely test the company’s labs and models.

While labs are permitted to finance these assessments, the compensation cannot be contingent upon the evaluator’s findings. Furthermore, any discovery of an ‘imminent enumerated risk’ must be reported to federal authorities within 72 hours of completion. Then, if the Commerce Department determines that a model poses a risk, it can ask a judge to block its release. The provision, however, prohibits any other U.S. “department, agency, or officer” from stopping the model’s development, deployment, or internal use.

Nonetheless, a federal judge in the District of Columbia retains the authority to order such a suspension. On Wednesday, the Federal Trade Commission sent civil subpoenas to OpenAI and Anthropic, requesting records on safety incidents that have become a growing crisis for the industry. OpenAI responded to the subpoena, saying, “As we improve our models and they increasingly help people in their day-to-day lives, safety remains a top priority. We will engage constructively with the FTC.”

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Google says the method, dubbed magic state cultivation, attained 99.99% logical fidelity on the Willow processor. Quantum computing is feasible thanks to magic states. Basic operations are handled by error correction, but these states are like fuel for the tougher ones that exceed classical computing. Google cites estimates that the process of producing them could consume up to 95% of a machine’s capacity, leaving scant room for actual work. A 40-fold cut makes a dent but doesn’t remove the bottleneck, and Google said cultivation needs to be demonstrated on a far bigger scale before it can be put to practical use.

Google says current method attained 99.99% logical fidelity

In 2024, Craig Gidney, Noah Shutty and Cody Jones devised the method at Google by taking a prior theoretical idea and refining it. Cultivation acts like a filter. A state with noise enters a confined region of the chip, where coordinated measurements hunt for errors. Attempts that don’t work get discarded, and the ones that do are retained.

Research scientist Emma Rosenfeld repeatedly got outcomes that seemed implausible. After digging for months, the team finally found that temperature variations and lab noise from equipment drift had warped their benchmark. The remedy was to grant the system more control, and the team also conceived the idea of employing cultivation as a fresh way to benchmark itself.

Moving a purified state from a distance-3 color code to a distance-5 surface code, a step called “grafting,” is another thing Google has shown. These are two ways to structure error correction. In the future, machines may need to combine both error correction methods to stay reliable without bloating the hardware. A 99.99% fidelity rate means there is about one error in every 10,000. To factor an RSA-2048 key, the paper says, you would need magic states with errors of about 1 in 10 billion, which is a million-fold difference.

Craig Gidney estimated in 2025 that RSA-2048 could be broken with less than a million noisy qubits. Cultivation is one of the ingredients in this estimate. On Thursday, Bitcoin traded near $82,165. Fewer than 500,000 physical qubits would be needed to crack Bitcoin’s 256-bit elliptic-curve cryptography, according to a Google Quantum AI study, a figure ~80% lower than earlier estimates. According to the study, an adequately powerful machine could reroute a live transaction in about nine minutes, with a 41% success rate.

Per estimates from Coinbase and Project Eleven, wallets with public keys already on the blockchain hold about 7 million BTC. That’s about a third of the entire BTC supply, a pool that swelled with Bitcoin’s Taproot upgrade. Willow has 105 physical qubits, nowhere near the half million that the math for the attack requires. Google’s schedule for post-quantum cryptography is in 2029. Bitcoin, for now, has just one proposal, BIP 360, for quantum-safe addresses, and no plan to move everyone over.

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The campaign reflects broader concerns about Washington’s approach to cryptocurrency regulation. Industry representatives fear changes in congressional leadership could trigger tougher scrutiny of digital asset businesses. Meanwhile, investors face uncertainty over how the November elections could influence crypto policy.

Crypto PAC spending against sherrod brown reaches $52.6 million

Federal Election Commission (FEC) filings show two crypto-backed super PACs spent approximately $52.6 million opposing Sherrod Brown through October 15.

Defend American Jobs, a Fairshake affiliate, reported $46.66 million in spending connected to Ohio’s Senate election.

The total included $15,600 for media production services opposing Brown, according to disclosures published October 13.

Meanwhile, Digital Freedom Fund reported $5.94 million in expenditures through October 11. Its filings included $1.98 million for campaign materials mailed to voters on October 9.

Together, the groups exceeded Fairshake’s $30 million September spending announcement by approximately $22.6 million.

Defend American Jobs alone surpassed that commitment by $16.66 million. However, the reported figures cover cumulative election-cycle spending, not September expenditures alone.

The Associated Press previously reported that cryptocurrency supporters spent over $40 million during Ohio’s 2024 Senate contest, which Brown lost.

Fairshake affiliates also directed another $2.7 million toward House elections. Earlier independent expenditure figures placed Defend American Jobs at $32.5 million and Protect Progress at $27.6 million.

Democratic congressional control raises Crypto regulatory concerns

The November congressional elections could reshape how lawmakers oversee cryptocurrency companies and their relationships with federal officials.

Reuters reported that Democratic control of either congressional chamber would not necessarily stop the Trump administration’s crypto deregulation efforts.

However, Democrats could pursue subpoenas, hearings, and investigations examining President Trump’s connections to the cryptocurrency industry.

Industry executives have expressed particular concern about Representative Sean Casten, who supports stricter oversight and opposed the CLARITY Act.

Wintermute policy chief Ron Hammond described Casten’s position toward cryptocurrency businesses, saying, “He is no friend of the industry.”

The legislation’s uncertain prospects have also influenced institutional sentiment toward digital assets.

CoinShares research head James Butterfill linked weakening Ether sentiment to declining expectations for the CLARITY Act.

Election uncertainty raises global Crypto market risks

Research suggests political uncertainty surrounding major elections can influence cryptocurrency market relationships beyond national borders.

Northern Illinois University researchers examined 34 elections across 19 democracies between 2017 and 2024.

Their working paper found that pre-election uncertainty in major regulatory countries increased information spillovers among ten cryptocurrencies by 0.85%.

Researchers identified stronger patterns surrounding elections in the United States, United Kingdom, Germany, France, and Japan.

However, the findings did not establish any direct relationship between political spending and cryptocurrency prices.

A CoinShares survey covering 2,230 affluent investors found that 66% across five countries owned digital assets.

Another August survey questioned 30 fund managers overseeing approximately $1.16 trillion. Respondents identified regulation as their leading cryptocurrency investment concern.

These findings highlight why Ohio’s Senate election carries regulatory implications for global crypto investors.

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Its explanation follows growing attention on Open USD and its partner-focused incentives. Competition now centers on fees, reserve earnings, and distribution across the stablecoin market.

Circle details how USDC revenue supports partners

Circle chief commercial officer Kash Razzaghi published the explanation on October 16 without naming competitors. However, the timing follows Open USD’s expansion across Stripe’s stablecoin infrastructure.

Circle reported approximately $1.4 billion in first-half 2026 revenue. Distribution partners and transaction costs received $819 million, representing 59% of the total.

The company allocated another $473 million, or 34%, to operations and infrastructure. Those expenses covered licensing, banking relationships, settlement liquidity, compliance, and blockchain development. Circle reported net profit equal to 7% of revenue.

According to Circle, more than 150 partners participate in USDC’s economic model. Participants include exchanges, wallets, banks, and payment companies.

Circle also defended its redemption arrangements against the emerging competition. Customers can redeem USDC through standard banking channels without fees, with settlement taking up to two business days.

Meanwhile, Circle Payments Network participants and businesses building on its platform can redeem without charges through near-real-time, around-the-clock settlement. Circle said first-quarter redemptions reached $71.8 billion, roughly 90% of circulating supply at that time.

OUSD challenges stablecoin fees and reserve earnings

The Open Standard Consortium introduced OUSD on June 30 with free minting and redemption, without volume limits. It also offered partners reserve earnings after deducting a small management fee.

Stripe integrated OUSD throughout its stablecoin stack on September 30. Stripe highlighted zero minting and burning fees plus rewards linked to activity and balances.

OUSD remains substantially smaller than USDC. CoinMarketCap figures put USDC supply near $72.6 billion, while OUSD represents roughly 1% of that amount.

Still, OUSD’s launch prompted market concerns about Circle’s competitive position. Circle shares fell approximately 13% following the announcement and its proposed reserve-revenue sharing structure.

Circle chief executive Jeremy Allaire welcomed competition around the launch. Dragonfly’s Rob Hadick identified potential pressure on Circle’s business, while Clear Street’s Owen Lau considered the selloff excessive.

Lau cited consortium-backed USDG from Paxos, which had reached only approximately $3 billion in supply. The OUSD consortium counts over 140 supporting companies, including Stripe, Coinbase, Visa, Mastercard, and BlackRock.

Coinbase and Binance lead USDC distribution rewards

Although Circle distributes rewards across numerous partners, larger distributors receive greater payments. Circle cited Coinbase’s second-quarter results.

Coinbase averaged $20 billion in USDC across its products, exceeding 30% of quarter-end supply. Circle said Coinbase captured roughly half of USDC’s economic rewards over the preceding year.

Binance also maintains a major commercial relationship with Circle. The exchange invested $100 million in Circle and signed a five-year promotional agreement.

Under that agreement, Circle pays Binance a monthly fee to promote USDC. These arrangements show how distribution agreements shape Circle’s revenue allocation as OUSD pursues the same partners.

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The company expects Q4 revenue of $52.3 billion to $54.3 billion, representing a 55% to 61% increase from the $33.73 billion recorded in Q4 2025. CFO Wendell Huang stated that the midpoint of the range implies an annual growth of 58%. Even the low end of the forecast exceeds analysts’ expectations of about $50 billion. CEO C.C. Wei also raised TSMC’s full-year outlook, forecasting 2026 revenue growth of “around 44%” in US dollar terms, up from his July estimate of “more than 40%.” He cited “extremely robust” demand for the company’s most advanced chipmaking processes.

TSMC CEO cites robust demand for Q3 boom

For the September quarter, TSMC posted net profit of NT$763.06 billion ($23.55 billion), up about 69% from a year earlier and ahead of the NT$746.3 billion that Reuters and LSEG had estimated. Revenue hit NT$1.494 trillion, or $46.72 billion, which was a gain of nearly 51% in Taiwan dollars. The quarter’s record earnings meant TSMC has had six consecutive quarters of record earnings and the 11th straight quarter of profit growth from the previous year.

Advanced technologies of 7nm and below accounted for 79% of TSMC’s wafer revenue. Its 2nm process contributed about 8%, up from 3% in the second quarter. CFO Wendell Huang attributed TSMC’s 130-basis-point decline in gross margin to 66.4% largely to the costs of ramping up 2nm production. Operating margin was 58.7%, while net margin stood at 51.1%.

TSMC expects gross margin to narrow to 65%–67% in the current quarter, with the midpoint implying a sequential decline of about 40 basis points. Huang said overseas fabs would reduce gross margin by around 2 percentage points this year, with the impact rising to 3–4 percentage points in the coming years as more US plants come online. TSMC’s US-listed shares dropped by about 1.5% in premarket trading after its Taipei-listed stock fell by 3.41% in a wider chip selloff that also involved Samsung Electronics and SK Hynix.

Analysts have stayed bullish through the volatility, though, with the mean price target on shares listed in Taipei working out to $103.68. The figure represents a 34% increase compared to the October 14 closing price of $77.35. Analyst ratings include 25 buys, nine outperform ratings, and one hold, with no sell recommendations, according to TIKR’s analysis on Yahoo Finance.

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ByteDance wants to secure application-specific integrated circuits (ASICs) chips tailored to a single customer’s computing needs, although Bloomberg has reported that the order volume is still undecided, with an agreement not reached yet. An agreement would make ByteDance MediaTek’s second major ASIC customer after Google, if talks are completed. US export restrictions have led ByteDance to look at alternatives to Nvidia’s advanced AI chips. Companies such as ByteDance, Alibaba and Tencent are currently unable to acquire Nvidia’s most powerful processors, and domestic suppliers such as Huawei have struggled to meet demand.

ByteDance still yet to decide on order volume

Quartz reported that US rules still allow Chinese companies to work directly with chip designers, though, as long as the computing power they acquire stays below a specified threshold. ByteDance has taken advantage of this approach, agreeing in May to purchase millions of ASICs from Qualcomm for its AI data centers.

The Taiwanese chipmaker is using its mobile processor expertise to expand into data center infrastructure, and a deal of this level would strengthen its foothold and position in a market that has been largely dominated by Qualcomm and Broadcom. Securing a major customer such as ByteDance could even help to further speed up the transition into data center infrastructure.

MediaTek expects AI chip sales to reach about $2 billion this year and is targeting a 15% share of an $80 billion market by 2027, Bloomberg reported. Its ambitions received a further boost in September, when Nvidia announced a $3.5 billion investment in the company, done via convertible bonds. The deal also gave MediaTek access to Nvidia’s NVLink Fusion platform for developing custom accelerator chips, Quartz reported. With a market value of about $210 billion, MediaTek is Taiwan’s second-largest company by market value, well behind TSMC.

ByteDance’s larger spending interests have led it to consider capital expenditure of up to $70 billion this year, more than double its spending in the previous year, with outlays potentially approaching $100 billion in 2027 if conditions remain favourable, Bloomberg reported. In September, ByteDance secured a $30 billion loan to help in the financing of this expansion. ByteDance’s AI strategy is based on flagship models such as Seedance, which compete with other products such as Alibaba’s Happy Horse, Kuaishou’s Kling AI and Google’s offerings.

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His outlook considers how artificial intelligence, monetary policy, and institutional investment could influence Bitcoin’s long-term performance. 

Hougan argues that different economic conditions may create separate paths toward higher Bitcoin prices. However, inflation concerns and shifting interest rate expectations continue to challenge the broader cryptocurrency market.

Bitwise CIO explains why Bitcoin could win under three economic scenarios

In his weekly CIO memo, Hougan outlined three economic scenarios that he believes could support Bitcoin’s growth.

“There are a lot of different paths for the economy. All of them lead to Bitcoin,” Hougan wrote.

First, Hougan examined a scenario where artificial intelligence dramatically improves productivity and reduces the cost of intelligence.

He argued that investors could increasingly favor scarce assets as AI makes other resources more abundant. Consequently, Bitcoin and gold could attract greater demand as stores of value.

“So in this ‘adventure,’ Bitcoin wins,” he stated.

The second scenario involves an AI market collapse that triggers a broader financial crisis. Hougan compared this possibility to the 2008 financial crisis, citing potential defaults involving data centers and bond insurers.

Although Bitcoin could initially decline alongside risk assets, Hougan expects government intervention to support an eventual recovery.

He suggested that AI’s geopolitical importance makes a government bailout almost certain. Such intervention could expand the money supply and strengthen Bitcoin demand.

Meanwhile, his third scenario assumes moderate economic growth, with GDP rising 3% and interest rates remaining near 4%.

Under these conditions, Hougan expects continued ETF purchases, corporate Bitcoin accumulation, and rising sovereign debt to support prices.

Bitcoin ETF demand faces growing inflation and Federal Reserve risks

Institutional investment remains central to Hougan’s Bitcoin outlook, particularly through US spot Bitcoin exchange-traded funds.

These products allow traditional investors to gain Bitcoin exposure without directly managing cryptocurrency wallets.

Hougan also identified corporate treasury holdings and potential sovereign adoption as additional long-term demand drivers.

However, institutional participation carries risks. Investors could withdraw ETF capital during market downturns, while companies might reduce holdings under tighter financing conditions.

Meanwhile, September’s US consumer price index increased 3.7% annually, while core inflation rose 0.3% monthly.

Both figures exceeded expectations, increasing speculation about further Federal Reserve tightening.

Traders subsequently raised the probability of an October 28 rate hike of 25 basis points to 41.5%, from approximately 22%.

Hougan nevertheless believes Bitcoin could benefit from either aggressive monetary tightening followed by stimulus or persistently elevated inflation.

Bitwise Q3 crypto gains strengthen Hougan’s Bitcoin recovery outlook

Hougan also pointed to third-quarter cryptocurrency performance as evidence of improving market conditions.

Bitwise’s large-cap crypto index gained 46.4% during Q3, reflecting a substantial recovery across major digital assets.

Meanwhile, US spot Bitcoin ETFs attracted $6 billion in net inflows, reversing earlier outflows and restoring positive year-to-date flows.

Despite these improvements, analysts remain divided over whether the cryptocurrency bear market has ended.

CryptoQuant identified a new Bitcoin bull market in September, citing technical indicators and on-chain activity.

However, Bitget analyst Ryan Lee cautioned that the market still needs stronger evidence of a confirmed cycle bottom.

Hougan maintains that institutional adoption, expanding network activity, and long-term monetary trends could support Bitcoin across different economic outcomes.

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Onchain investment products have attracted more wallet holders, particularly through platforms offering exposure to traditional stock indices. 

Meanwhile, differences between market value and holder distribution highlight contrasting participation patterns across major issuers. Ethereum continues to lead in asset value, while Binance-linked products dominate wallet adoption.

Tokenized ETF market value triples as investor adoption soars in 2026

According to data from Token Terminal, the tokenized ETF market capitalization increased 213% year-to-date, reaching $686.5 million. The sector started January 1 with a combined valuation of $219.2 million before recording sustained growth throughout 2026.

However, holder growth has significantly outpaced the increase in market capitalization. Wallets holding tokenized ETFs jumped from approximately 17,500 to 897,700, representing a 51-fold increase.

During the same period, individual tokenized stock holders increased approximately 26.6 times. This means tokenized ETF adoption expanded at nearly twice the rate of individual tokenized equities.

Token Terminal data indicates that most holder growth occurred during the past two months. Adoption increased gradually through July before accelerating sharply in late August following Binance bStocks’ expansion.

The development comes as tokenized equities attract growing attention across the cryptocurrency industry. Jesse Pollack, head of Base, previously described tokenized equities as the next crypto supercycle.

Binance bStocks leads holder growth while ondo controls market value

Binance bStocks accounts for approximately half of all tokenized ETF holders, with 448,400 wallets. However, its $160.1 million market capitalization represents just 23.3% of the sector’s total value.

Robinhood shows a similar distribution, controlling 13.1% of holders against 5.4% of market capitalization. These figures suggest both platforms attract investors holding relatively smaller positions.

Conversely, Ondo Finance dominates the sector by asset value despite having fewer holders. The issuer controls $325.7 million, representing 47.4% of tokenized ETF market capitalization.

Nevertheless, Ondo accounts for only 20.3% of holders. This concentration suggests larger average holdings, although wallet data alone cannot confirm institutional participation.

Binance’s Nasdaq-100 product, QQQb, leads individual tokenized ETFs by market capitalization and holder count. The product holds $67.6 million across 314,500 wallets, representing approximately 35% of all sector holders.

SPYx follows with $62.2 million, while Ondo’s IVVon ranks closely behind at $61.5 million.

Meanwhile, S&P 500 and Nasdaq-100 products dominate the largest tokenized ETF offerings. Their combined value across the top ten products approaches $330 million, nearly half the overall market.

Several issuers offer similar index exposure through separate tokens on different blockchain networks.

Ethereum dominates tokenized ETF value as BNB Chain expands

Ethereum remains the largest blockchain network for tokenized ETFs, hosting approximately $303 million in assets. According to Token Terminal, this represents 44.1% of the sector’s market capitalization.

BNB Chain follows with $192.1 million, accounting for 28% of total market value. Its position closely reflects Binance’s growing presence in tokenized ETF issuance.

Solana holds another 13.3% of the sector. Meanwhile, Arbitrum One, Robinhood Chain, and X Layer each account for less than 5%.

The latest figures show that tokenized ETF wallet adoption has expanded considerably faster than invested capital since August. Binance leads in holder numbers, while Ondo maintains the largest share of market value.

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