We’ve all been waiting patiently for any sort of decision with the many, many Bitcoin ETF applications.

It seemed like Crypto and TradFi were about to have this big, elaborate wedding and then the nuptials were put on ice.

But in this period of inactivity, handsome, new suitors have arrived.

Like a DeFi Jane Austen novel, Ethereum ETFs have arrived to try to reignite that blazing, ETF fire.

Will Ethereum ETFs be able to get through the SEC and clinch the win we all need?

Espresso Shots

☕️ Sui Providing Over $50 Million to DeFi

The Sui Foundation, which manages the Sui blockchain, is pumping its ecosystem with $51.3 million, according to an initial announcement reported by Decrypt.

Where’s the money coming from? The Sui Foundation is claiming 117 million of its native SUI tokens from external market makers. 117 million SUI is currently worth roughly $51.3 million, according to Coinbase’s converter.

That money won’t just strengthen Sui and Sui’s on-chain transaction matching platform, DeepBook — it will also allow the creation of a series of grants that will be offered to DeFi developers.

Sui, which was just launched last spring, is already emerging as one of DeFi’s biggest players. On August 2, the Sui blockchain hit a record 65.8 million transactions, the highest 24-hour performance of any blockchain in history, according to a tweet from the Sui network.

Naturally, the grants offered to DeFi developers won’t be millions of dollars, they will be smaller portions of that sum — or “chop Sui.”

☕️ Clipping SBF’s Wings

The DOJ has focused on two private jets formerly owned by Sam Bankman-Fried as prosecutors continue to seize assets in the ongoing case.

The two jets were listed as SBF’s assets according to an October-4 filing by the DOJ.

But there is a dispute with Island Air Capital, a Bahamian aviation company, which claims it bought the planes from FTX via a “handshake” loan for roughly $28.4 million, according to a Fortune report. It’s still unclear if that purchase was made with funds associated with fraudulent activity.

Island Air Capital’s attempts to sell the planes were thoroughly halted when the jets were seized by U.S. marshals.

It’s still up for debate if the planes belong to the DOJ, FTX debtors, or Island Air Capital, but they certainly don’t belong to Sam Bankman-Fried anymore.

This development will probably help SBF fit in in jail, where most of the inmates also don’t own private jets.

☕️ Dreaming with AI

Prophetic AI intends to induce lucid dreaming using AI.

You’ve probably already had a lucid dream or two, a dream in which you know you’re dreaming and can control the direction of the dream.

Prophetic AI wants to make lucid dreaming a constant possibility with the use of a non-invasive neural link powered by AI.

Their mission goes beyond just the obvious choice to make yourself fly in your dreams. Prophetic AI believes that lucid dreaming could lead to prophetic visions and consciousness-expanding phenomena.

“If you look at the history of Prophets, whether it's Abraham, Mohammed or Buddha, they received their Prophetic AI wisdom from dreams,” Co-Founder Eric Wollberg said in a discussion with Decrypt. “The goal here is to make anyone a prophet, to give people access to that prophetic knowledge, wisdom, and interface.”

Though no word yet on whether AI can dream, but as all Philip K. Dickheads know, it’s probably just a bunch of electric sheep.

Polled Brew

Spilling the Beans

Millions Flow Into New ETH Investments 💰 🚀

The Bitcoin Spot ETF was supposed to be crypto’s big break.

It was a huge step in the growing cohesion between DeFi and the traditional stock market.

All the biggest TradFi players were involved; BlackRock, Fidelity, WisdomTree, VanEck, etc..

It’s a long list, and one that we’ve probably had to bring up too many times, because we’ve been stuck in this regulatory purgatory since BlackRock started the current ETF landslide in June 2023.

Now, they say that indecision is a decision. But is inactivity an activity unto itself? No, no it’s not.

But some of those firms with their applications stuck in the mud decided to stop waiting around and do something about it.

And that meant going down a different route entirely.

Three investment managers: VanEck, ProShares, and BitWise, launched Ethereum Futures ETFs on October 2nd.

Unlike crypto spot ETFs, futures ETFs are regulated by the CFTC and don’t require a months-long approval process.

Six funds went live in the first week of October and enjoyed a pretty strong start.

On the first day of trading, the six funds racked up a cumulative trading volume of $1.92 million. The largest of the six, the ProShares Ether Strategy ETF, hit $878,560 according to data collected by Reuters.

But Ethereum, despite its well-established blockchain utility, has always played second fiddle to Bitcoin.

Though $1.92 million in trading volume seems like a lot of money at first glance, it’s actually a disappointing volume for funds of this nature.

Analysts were quick to point out that when the ProShares Bitcoin Strategy ETF launched in 2021, it traded $1.02 billion on its first day.

Though we’re always excited about a new pathway for crypto trading, this seems like another instance in which Ethereum is unable to crawl out of Bitcoin’s shadow.

On some level, it’s human nature. It’s hard to get excited about what you’re already allowed to have.

The Ethereum ETFs are the warm, fresh-baked cookies at a high school graduation party. They’re received with polite smiles when the doting mother puts them out. But the teenagers are still hungrily eying the ice-cold beers — the Bitcoin Spot ETFs — in the back porch cooler.

It would appear that the launch of these six Ethereum futures ETFs was “a” development in crypto, but not the development.

That said, this launch has incited the development of several more ETH futures ETFs, and maybe one of those will be the powder keg the market needs.

In the meantime, we’re still waiting on Bitcoin spot ETF approval or the next halving event to firmly thrust the market out of crypto winter and into the milk-and-honey trading of a bull market.

It does feel like the approval of Bitcoin spot ETFs is a matter of “when” and not “if,” but that “when” has been taking an awfully long time.

And we’re still firmly optimistic. But in the meantime, we’ll keep dusting the cobwebs off our “Congratulations BlackRock!” banner.

Crypto 101

Ethereum Futures ETF: These funds allow investors to buy into futures contracts regarding the future performance of Ethereum, rather than purchasing ETH directly.

In an ETF, the investor owns a share of a large pool of Ethereum, a share that they’ve agreed to buy or sell at a later date, depending on the contract.

The Last Sip

The Last Sip: We’re still fascinated by the concept of using AI to decode lucid dreams, but if you’re not flying in a lucid dream, what are you doing? And if you don’t choose flight, at least give yourself big jumps or Spiderman-style web-slinging. And if none of that interests you, at least make yourself, like, really sexy.

Stay Caffeinated,

Coffee & Crypto Team

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