Boutique market maker | Only intended for institutional investors, not retail investors in the UK, US or UAE | Disclaimer: https://xitter.gq/t.co/ZTRGHVMdWx
London, United Kingdom
Joined October 2021
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2025 marked a pivotal year in Kappa Lab’s operations and performance. We’re proud to have supported some of the industry’s most ambitious protocols and builders.
We expanded to Dubai, added 4 new business verticals, 13 new partnerships, 18 new exchange integrations, and sustained $15B in monthly trading volume. Together, these milestones reflect a broader trend: institutional-grade crypto infrastructure is scaling rapidly.
Now in 2026, we’re building on this momentum with new initiatives already underway. Stay tuned.
Kappa Lab retweeted
FOMC done. Two members wanted to hike tonight, and Bitcoin's implied vol went down.
That tells you more than the decision itself.
The hold was fully priced. The 10–2 split wasn't. Still, BTC moved about $630 in the hour after the statement, and Deribit's vol index eased.
When a hawkish surprise barely moves the market, people were already hedged.
The real pressure this week is energy. Brent is above $115 and European gas just touched €100. Canada hiked today to stop it spreading. The ECB and BoJ are expected to hold, with hikes still on the table. The US 10-year is back above 5%.
So the risk hasn't gone. It's moved: the ECB, US PCE and GDP tomorrow, then the BoJ and an ~$11B BTC options expiry on Friday. US midterms on Tuesday.
A quiet tape isn't the same as a deep book. That's usually when a thin book gets tested.
Fed Week. Five major events packed into 38 hours.
Wednesday brings the FOMC decision. Thursday follows with US PCE, GDP, and the ECB decision. Friday closes out the week with the BoJ decision and Deribit's monthly options expiry.
@Polymarket currently prices a roughly 94% probability that the Fed holds rates at 3.75%–4.00%, with a smaller probability assigned to a 25bp hike. Beyond Wednesday's decision, attention turns to the Fed's guidance for December and how Thursday's economic data could reshape expectations.
From the desk: Scheduled events change how liquidity behaves. Order books are often thinner in the minutes before a release and may rebuild as new information is absorbed.
Five scheduled release windows in about 38 hours means several of those cycles back to back, so execution quality matters more than usual this week.
Industry Catch-Up | October 28, 2026
$BTC at ~$81K. $ETH at ~$2.3K.
1) The OCC gave @Ripple final approval for its national trust bank. The bank can manage RLUSD reserves and offer custody, but cannot take deposits or lend. RLUSD is live on Robinhood Chain and Bitstamp, with access in the Robinhood app expected later this year.
2) @AnthropicAI made its S-1 public on Oct 26, ahead of a planned Nasdaq listing. Pre-IPO perps on the company already trade on several venues, and @tradexyz added one at up to 10x that day. The contracts are synthetic and track a reference price until the shares list.
3) @HyperliquidX said Payward, @krakenfx's parent, plans to be the first CFTC-regulated deployer of HIP-3 markets, which let outside firms run their own perps on Hyperliquid. US clients could trade them once regulators approve. Payward first set out the plan in September, with Bitnomial to run and clear the markets.
4) 26 companies have objected to tokenized trading of their shares on OKXICE, the @okx and ICE venue, per CoinDesk. IBM, Intel and Oracle are among the latest to use the SEC's 30-day objection window. Nasdaq Inc. said it intends to object for its own shares.
US Spot ETF Flows (Oct 22 to Oct 27):
🔴 $BTC: -$487.10M
🔴 $ETH: -$254.95M
🟢 $ZEC: +$40.16M
🔴 $SOL: -$35.90M
🔴 $HYPE: -$12.18M
🔴 $XRP: -$0.06M
→ Oct 27 drivers: IBIT +$151.46M and FBTC +$24.54M led $BTC, while ETHA saw -$93.28M and FETH +$28.58M.
→ Cumulative since debut: $SOL $1.51B, $HYPE $299.26M, $ZEC $209.20M.
→ $BTC ETF net assets stand at $103.94B, 6.40% of BTC market cap. $ETH ETFs hold $14.18B, 4.95% of ETH market cap.
👇 More from this week:
→ OG. com and @cryptocom launched CFTC-regulated crypto perps for eligible US traders, at up to 5x.
→ Robinhood $HOOD reported Q3 crypto transaction revenue of $120M, down 55% YoY. Event contracts brought in $173M, and the company said Robinhood Chain logged $80B+ in DEX volume.
→ @Ondo said 15 of its tokenized stocks are now live on Robinhood Chain, with 11 Uniswap pools.
→ Hong Kong's SFC approved what it called the first secondary trading of tokenized public funds, starting with two ChinaAMC money market funds.
→ @LMAX said it is working with iSAM Securities to offer its perp futures liquidity to FX and CFD brokers.
→ @extendedapp opened RFQ to market makers through its API, with 282 RFQ markets live, it said.
→ Circle $CRCL launched Circle Match, an hourly auction pairing USDC mint and redemption orders for eligible Mint customers.
Fed Week. Five major events packed into 38 hours.
Wednesday brings the FOMC decision. Thursday follows with US PCE, GDP, and the ECB decision. Friday closes out the week with the BoJ decision and Deribit's monthly options expiry.
@Polymarket currently prices a roughly 94% probability that the Fed holds rates at 3.75%–4.00%, with a smaller probability assigned to a 25bp hike. Beyond Wednesday's decision, attention turns to the Fed's guidance for December and how Thursday's economic data could reshape expectations.
From the desk: Scheduled events change how liquidity behaves. Order books are often thinner in the minutes before a release and may rebuild as new information is absorbed.
Five scheduled release windows in about 38 hours means several of those cycles back to back, so execution quality matters more than usual this week.
Bitcoin has spent the past two weeks inside a 7% range, roughly $79K to $85K. Its realised volatility over the last 30 days is about 25%, yet the options market is pricing about 41%.
Implied vol usually sits above realised, but a gap this wide going into a week like this one points to event risk: the Fed on Wednesday, US PCE and GDP on Thursday, and the BoJ and a monthly options expiry worth more than $10B on Friday. At 41%, options imply daily moves of around 2%, against the 1.3% we've actually seen.
A tight trading range doesn't tell the whole liquidity story. This week's scheduled events could test how well the market absorbs sudden shifts in flow, in either direction.
Uniswap basically said 'if the liquidity won't come to us, we'll go to it' 🪝
TLDR
A swap on Uniswap can now be filled using liquidity from other DEXs, without leaving Uniswap.
This changes how liquidity competes. Liquidity no longer has to move to where the traders are, because the traders' orders can now be sent to it. For token teams, where liquidity sits matters less than how well it's priced.
Kappa Lab retweeted
The biggest crypto fund just took "crypto" out of its name.
This is what happens when the infrastructure grows up. Payments, tokenized funds, stocks on-chain: it's all just becoming finance. Our job doesn't change. 👍
Kappa Lab retweeted
$1B in over three days, then $635M out the next day.
That's not long-term allocation. It's short-term positioning, money that moves on the same news it came in on.
The flows that actually build deeper markets are the ones that stay for weeks and months, not days. Those are the flows that bring more market makers in, tighter spreads and better depth across venues. Until we see that kind of consistency, I'd read single-day ETF prints as noise around the trend, not the trend itself.
Flow update: after +$1.08B in net inflows over Oct 19–21, US spot BTC ETFs recorded –$635.5M on Oct 22. The outflows were spread across issuers, including IBIT, FBTC, ARKB, GBTC and BITB, rather than concentrated in one fund. ETH ETFs: –$110.5M.
Our view: one day of ETF flows doesn't tell you where price goes. Most of this money moves through ETF issuers and OTC desks, not public exchanges, so a $635M outflow doesn't mean $635M of selling hit the order books.
What we watch after a swing like this is how fast buyers and sellers come back to the order book, and how deep it is when they do.
Flow update: after +$1.08B in net inflows over Oct 19–21, US spot BTC ETFs recorded –$635.5M on Oct 22. The outflows were spread across issuers, including IBIT, FBTC, ARKB, GBTC and BITB, rather than concentrated in one fund. ETH ETFs: –$110.5M.
Our view: one day of ETF flows doesn't tell you where price goes. Most of this money moves through ETF issuers and OTC desks, not public exchanges, so a $635M outflow doesn't mean $635M of selling hit the order books.
What we watch after a swing like this is how fast buyers and sellers come back to the order book, and how deep it is when they do.
Industry Catch-Up | October 22, 2026
$BTC at ~$81K. $ETH at ~$2.2K.
1) @USOCC issued its final GENIUS Act rule for the stablecoin issuers it oversees, effective Jan 18, 2027. Issuers must hold reserves at least equal to outstanding stablecoins and generally pay redemptions within two business days. The OCC dropped a proposed presumption that some third-party reward deals breach the yield ban, and AML and sanctions rules will follow separately.
2) @Lighter_xyz said on its Q3 investor call that it plans to apply to the CFTC in November. The application would cover DCM and DCO licenses, which allow a firm to run a regulated exchange and clearinghouse. CEO Vladimir Novakovski said the team has held extensive early talks with CFTC staff and gave no approval timeline.
3) @OndoPerps listed a pre-IPO OpenAI perp on Oct 21, with up to 3x leverage, hourly funding and a $1,600 seed price. It is a separate market from OPAIPon, the fully funded OpenAI note on Ondo Perps' spot order book. US persons cannot trade it.
4) @extendedapp was scheduled to start moving its settlement layer from Starknet to @circle's @arc on Oct 22 at 13:00 UTC. It described the move as part of a strategic partnership with Circle. Trading was set to continue, with deposits and withdrawals paused for up to two hours.
US Spot ETF Flows (Oct 15 to Oct 21):
🟢 $BTC: +$1B
🔴 $ETH: -$244.4M
🔴 $SOL: -$31.3M
🔴 $HYPE: -$17.6M
🔴 $ZEC: -$9.6M
🔴 $XRP: -$1.9M
→ On Oct 21, $IBIT (+$235.0M) and $FBTC (+$212.7M) led $BTC ETF inflows. In $ETH, $ETHA posted -$29.3M, offset by Grayscale's $ETH fund (+$28.1M) and $FETH (+$13.0M).
→ Cumulative net inflows since launch: $XRP ETFs $1.80B, $SOL ETFs $1.55B, $HYPE ETFs $311.4M and the $ZEC ETF $169.0M.
→ As of Oct 21, $BTC ETFs held $109.31B in net assets (6.42% of $BTC market cap) and $ETH ETFs $15.36B (5.05% of $ETH market cap).
Industry Catch-Up | October 22, 2026
$BTC at ~$81K. $ETH at ~$2.2K.
1) @USOCC issued its final GENIUS Act rule for the stablecoin issuers it oversees, effective Jan 18, 2027. Issuers must hold reserves at least equal to outstanding stablecoins and generally pay redemptions within two business days. The OCC dropped a proposed presumption that some third-party reward deals breach the yield ban, and AML and sanctions rules will follow separately.
2) @Lighter_xyz said on its Q3 investor call that it plans to apply to the CFTC in November. The application would cover DCM and DCO licenses, which allow a firm to run a regulated exchange and clearinghouse. CEO Vladimir Novakovski said the team has held extensive early talks with CFTC staff and gave no approval timeline.
3) @OndoPerps listed a pre-IPO OpenAI perp on Oct 21, with up to 3x leverage, hourly funding and a $1,600 seed price. It is a separate market from OPAIPon, the fully funded OpenAI note on Ondo Perps' spot order book. US persons cannot trade it.
4) @extendedapp was scheduled to start moving its settlement layer from Starknet to @circle's @arc on Oct 22 at 13:00 UTC. It described the move as part of a strategic partnership with Circle. Trading was set to continue, with deposits and withdrawals paused for up to two hours.
US Spot ETF Flows (Oct 15 to Oct 21):
🟢 $BTC: +$1B
🔴 $ETH: -$244.4M
🔴 $SOL: -$31.3M
🔴 $HYPE: -$17.6M
🔴 $ZEC: -$9.6M
🔴 $XRP: -$1.9M
→ On Oct 21, $IBIT (+$235.0M) and $FBTC (+$212.7M) led $BTC ETF inflows. In $ETH, $ETHA posted -$29.3M, offset by Grayscale's $ETH fund (+$28.1M) and $FETH (+$13.0M).
→ Cumulative net inflows since launch: $XRP ETFs $1.80B, $SOL ETFs $1.55B, $HYPE ETFs $311.4M and the $ZEC ETF $169.0M.
→ As of Oct 21, $BTC ETFs held $109.31B in net assets (6.42% of $BTC market cap) and $ETH ETFs $15.36B (5.05% of $ETH market cap).
👇 More from this week:
→ @CMEGroup launched Bitcoin Cash and Uniswap futures on Oct 19, with @FalconXGlobal and GSR executing the first block trade. $BCH $UNI
→ @StanChart signed definitive agreements to acquire 100% of Zodia Custody, subject to regulatory approvals.
→ @Grayscale opened in-kind investing across 10 products, letting eligible investors exchange tokens such as $BTC, $ETH, $SOL and $XRP directly for fund shares.
→ The CFTC registered @tZERO's subsidiary as a derivatives clearing organization. tZERO's DCM application is still pending.
→ DEXs Aerodrome and Velodrome merged into @aeroxyz, which is launching across seven networks.
→ @BlackRock filed for the iShares Bitcoin Managed Protection ETF ($PBIT), which would use $IBIT call options to offer downside protection with capped upside.
→ Tokenized $META shares issued by @Backpack went live on @solana via @sunrise.
Kappa Lab retweeted
TOKEN2049 Singapore takeaways
A bit late with this post, but here it is.
I left more optimistic than I arrived. Bull market energy is back, and so is retail. The crowd felt younger — more people there for themselves rather than a company badge. I didn’t see a booth I’d call fluff.
A few things stayed with me:
- Prediction markets have my attention. Once you’re inside the book, @Polymarket feels closer to a crypto exchange than a traditional bookmaker. Quoting, latency, inventory risk, adverse selection — the problems are familiar. I think there’s more room here than people assume.
- Tokenized stocks are launching with a market maker already in the seat. @Securitize launched on Solana with Jump. Nobody is waiting for liquidity to show up on its own.
- Nasdaq plans to move to 23-hour trading, five days a week, from December 6. Longer hours make liquidity harder. Overnight books can be thin, and someone has to keep quoting.
- The same stock is trading as different tokens across different venues. Keeping those prices aligned means understanding what each token represents and how you can hedge or redeem it. There’s a lot of market making work ahead.
- I also heard that “vaults are dead.” I don’t agree. People underestimated the work involved. Launching a vault is the beginning. Designing, running, and risk-managing the strategy is the ongoing commitment.
We’re building in this space at @KappaLab_io. We run three HLP-style vaults, including FLP on @hibachi_xyz and MLP on @meridiandotxyz. Separately, we run a USDe credit vault on @WildcatFi.
If you’re issuing or listing tokenized assets on your exchange, or launching a venue / rethinking a vault, my DMs are open. We can help with both the liquidity and the strategy behind it.
We had more KLIP conversations than I expected, too. Foundations already hold their native token and bear its volatility. KLIP is our dedicated yield strategy for your treasury’s assets. It generates yield from the volatility while you retain custody.
People wanted to know what their treasury would have earned. We ran the backtests, and they were impressed by the numbers. Curious what yours would look like? Request a free backtest at klip.kappalab.io. Results within 48 hours.
Also, some of the sharpest trading conversations I had came from very small teams. There’s more good work happening outside the big names than the headlines suggest.
Thank you to everyone who made time for a meeting, a coffee, or a conversation that ran far too late. I came home with new connections, and I expect a few of them to turn into things we build together.
See you at the next one.
Industry Catch-Up | October 15, 2026
$BTC at ~$81K. $ETH at ~$2.3K.
1) @coinbase said on Oct 7 that its @DeribitOfficial integration is complete, creating the Coinbase Global Exchange. US institutions can begin onboarding through Coinbase Prime via Coinbase Financial Markets. The rollout would connect them to Deribit's global options liquidity through the same platform they use for spot trading and custody. Options trading for those clients is expected in the coming weeks. US retail options are planned for later this year.
2) @variational_io has overtaken @tradexyz’s long-held lead in weekly onchain RWA derivatives volume. Blockworks data for Oct 5–11 shows $13.40B in notional volume for Variational versus $12.35B for Tradexyz, a difference of about $1.05B. The shift highlights competition for order flow in traditional-asset derivatives traded onchain.
3) @BNYglobal said on Oct 13 that it completed a tokenized Treasury repo transaction with @citsecurities. The security settled within minutes on BNY's private digital ledger. Citadel Securities then used it as collateral for overnight financing from BNY. Linking settlement and financing this way could make collateral available for borrowing sooner. The bank also said it plans to add tokenized deposits and extend settlement hours.
4) The @CFTC proposed on Oct 9 to classify event contracts on sports, politics, culture and weather as swaps. The agency says the proposal would resolve uncertainty over whether these contracts fall under its derivatives oversight. Comments are due within 30 days of publication in the Federal Register. A separate interim rule excludes sportsbook wagers and casino games from the swap definition. That rule takes effect upon Federal Register publication.
US Spot ETF Flows (Sep 30 to Oct 14):
🔴 $ETH: -$884.4M
🔴 $BTC: -$688.5M
🔴 $ZEC: -$119.3M
🔴 $SOL: -$43.5M
🔴 $HYPE: -$13.4M
🟢 $XRP: +$12.8M
- Oct 14 fund flows: $FBTC (-$152.7M) and $IBIT (-$110.9M) led $BTC outflows, while $BITB saw +$2.2M. In $ETH, $ETHA (-$109.8M) and Grayscale's $ETH fund (-$18.8M) led outflows.
- Cumulative net inflows since debut: $XRP ETFs at $1.80B, $SOL ETFs at $1.58B, $HYPE ETFs at $329.1M, and $ZCSH at $178.7M.
- As of Oct 14, $BTC ETFs hold $104.83B in net assets, 6.38% of $BTC market cap. $ETH ETFs hold $15.20B, 5.15% of $ETH market cap.
More below👇
#cryptonews #digitalassets #fintech #defi #web3
👇 Also in this edition:
- ChainCatcher reported over $678B in Papertrade's launch-day notional volume, citing its dashboard, and raised concerns about incentive-driven trading.
- The SEC approved Cboe's rules for binary options on company metrics, including $COIN, $MARA and $HOOD. Trading remains subject to clearing approvals.
- ESMA said MiCA-authorized firms should stop services involving non-compliant stablecoins for EU clients. Existing exposures must be addressed within three months of its Oct 8 opinion, with limited services allowed for the wind-down.
- The EBA classified $USDC as the EU's first significant e-money token under MiCA, bringing it under joint EBA and French supervision from Nov 12.
- GSR committed $100M over several years to Hare, mainly through a credit facility. The venture with Turtle plans Aave-powered vaults.
- VanEck requested withdrawal of the registration statement for its proposed Lido Staked Ethereum ETF.
- @binance said it will close Binance Pool and related mining services on Nov 10.
- @Ledger asked resellers in seven Asian markets to suspend sales during a hardware-tampering investigation.
Kappa Lab retweeted
Great engagement between our team and foundations at TOKEN2049.
Every foundation asked the same question: how much would KLIP have earned on our token?
Request a free backtest and find out at klip.kappalab.io
Your foundation already carries your token's market risk. Looking for yield?
→ Lend it: you take on credit and protocol risk.
→ Sell calls: you hand the upside to the option buyer.
KLIP is a third way.
- Tokens stay in your custody.
- Every trade visible in real time.
- Exit anytime.
Every foundation that started with KLIP is still running it, and most have increased their size.
We're at TOKEN2049 this week. What's your token? We'll show you what it would have earned with KLIP.
DM us, or book a call: klip.kappalab.io
For qualified institutional clients outside the UK, US and UAE. Not financial advice.
FLP cap raised to $2.5M. Allocation open. We operate the vault.
That’s more room for capital behind @hibachi_xyz 's book. 🤝
Week 22 of The Playoffs is complete.
Points
- 76.5M in circulation (+1.31% WoW)
- Weekly activity distribution is 500,000 this week. The other 500,000 is reserved for the Hibachi Open
- EUR and BTC still earn up to a 1.5x boost
Hibachi Open
- $102.8M eligible volume
- 47 traders past the $500k threshold
- Ends Sunday Oct 18, 23:59 UTC
- Leaderboard below
$300M in total volume unlocks the cash prize pool. 6 days left.
Product
- Institutional FX spot is the main engineering priority
Vaults
- FLP by @KappaLab_io : (+16.2% APR), allocation available, new cap $2.5m
- GAV by @GrowiFinance : (+2.9% APR), allocation available
Vault deposits earn yield and points.
Kappa Lab retweeted
Day 2🫡
Day 2 at @token2049 Singapore, and our team is in town until Saturday.
Exchanges, foundations, vaults, partners: @kiranxyz_
Collabs, KOLs, creators, research, PR, events: @vickbln
Message them on Telegram: t.me/kirandhanani - t.me/vickbln
Day 2 at @token2049 Singapore, and our team is in town until Saturday.
Exchanges, foundations, vaults, partners: @kiranxyz_
Collabs, KOLs, creators, research, PR, events: @vickbln
Message them on Telegram: t.me/kirandhanani - t.me/vickbln
Your foundation already carries your token's market risk. Looking for yield?
→ Lend it: you take on credit and protocol risk.
→ Sell calls: you hand the upside to the option buyer.
KLIP is a third way.
- Tokens stay in your custody.
- Every trade visible in real time.
- Exit anytime.
Every foundation that started with KLIP is still running it, and most have increased their size.
We're at TOKEN2049 this week. What's your token? We'll show you what it would have earned with KLIP.
DM us, or book a call: klip.kappalab.io
For qualified institutional clients outside the UK, US and UAE. Not financial advice.
Kappa Lab retweeted
Looking forward to meeting partners at Token. This year's event is looking big!
Dm me if you'd like to meet.
The best conversations at @TOKEN2049 happen off stage.
Kappa Lab will be in Singapore from 5 to 9 October, and we'd like to meet you.
We're a digital asset market maker. We provide liquidity across 1,500+ markets on 50+ centralized and decentralized exchanges.
Kiran Dhanani (@kiranxyz_), our CBO, is meeting exchanges, foundations, vault operators, trading firms, traders, and potential partners.
→ Telegram: @ Kirandhanani - t.me/kirandhanani
Victoria Kabalan (@vickbln__), our Marketing Lead, wants to meet agencies, creators, designers, researchers, KOLs, PR and events teams, and anyone up for co-marketing.
→ Telegram: @ vickbln - t.me/vickbln
Reach out to Kiran or Victoria on Telegram to schedule a meeting.
Learn more about Kappa Lab: kappalab.io
