📣 Message from Us
Welcome back. 👋 Each week we cut through the noise and explain what’s driving crypto. This week we break down Bitcoins’s new all time high, the ETF flows behind it, and what to watch next as crypto adoption continue to spread.
- Validator Digital
📈 This Week in Markets
Crypto’s week-over-week streak continues, with momentum back and breadth improving as investors add exposure beyond Bitcoin. Compared with mid September, markets are steadier, ETF buying has stayed consistent, and short drops have not lasted.
🔦 Bitcoin Set a New All Time High
What happened
Bitcoin set a new all time high above $126,000 on October 6, finishing roughly +10% on the week after rebounding from late-September lows near $109,000. The move tracked heavy demand through U.S. spot ETFs and came alongside improving breadth across large caps.
What drove it
Spot Bitcoin ETFs saw one of their biggest weekly inflows on record, with about $3.55B into BTC products and $5.95B across digital asset funds overall. That steady, regulated demand explains the push to new highs better than sentiment alone. Ethereum and Solana funds also reported sizable buys, confirming investors are using ETFs and ETPs as the clean on ramp.
Breadth and leadership
After Bitcoin moves first, other majors often follow as investors add exposure beyond the leader. That pattern is showing up: over the past week, ETH is up 11.0% while BTC was up 8%. The difference reflects two roles, Bitcoin is the scarce asset many treat like digital gold, while Ethereum is the programmable asset that powers applications and offers staking yield. In weeks with rising risk appetite and clear fund demand, ETH can outrun BTC even as Bitcoin makes new highs.
Seasonality context
October has earned the nickname “Uptober” because it typically posts strong returns. These early-month gains are still below historical October averages, which leaves room to improve if flows stay firm. History also shows November has often been even stronger than October, so seasonality is a supportive backdrop, while flows remain the driver.
What to watch next
Spot BTC ETF net flows are the tell, consistency versus last week will signal whether the breakout holds. Look for breadth across majors, especially ETH and SOL fund flows and whether ETH keeps leading. With Uptober seasonality and returns still below long run October averages, October is set for a strong month.
⏩ Quick Hits + 🔥 Hot Takes
Morgan Stanley officially recommends exposure to Crypto
Morgan Stanley’s Global Investment Committee officially told advisors to keep crypto at 2%–4% in growth portfolios, and 0% in income or capital-preservation mandates. This is a major signal of traditional finance adoption that gives mainstream advisors a clear policy to allocate, which will lower friction and can unlock new ETF and fund flows as crypto moves from “off menu” to “OK, with limits.”Stripe lets companies launch their own stablecoins
Stripe’s Bridge just made it easier for companies to issue their own dollar-backed tokens (stablecoins) instead of relying on giants like Tether or USDC. The new Open Issuance platform handles regulation, reserves, and payments through partners like BlackRock and Fidelity. Companies desire their own stablecoin to keep customers inside their ecosystem, reduce payment fees, or reward loyalty. Think of it as owning the rails, instead of renting them.Visa pilots stablecoins for business payouts
Visa is testing stablecoins usage for businesses so banks and payout platforms can load funds with USDC or EURC and send cross border payments in minutes, even on weekends. Compared with today’s model that runs on weekday business hours and higher legacy fees, this can move money at any hour, free up cash that would sit in overseas accounts, and lower total costs.
Samsung brings crypto to 75 million Galaxy users
Samsung, the world’s number one smartphone maker, now lets U.S. Galaxy users buy and use crypto through Coinbase, a major U.S. exchange listed on Nasdaq. This feature lives in the Samsung Wallet, which links straight to Coinbase - drastically reducing the barrier to entry for Galaxy users. The update includes a three month Coinbase One trial that waives trading fees, putting an easy on ramp inside an app that ships on roughly 75 million phones in the U.S. Next up: “a global rollout,” reports Samsung.Crypto ETF approvals are on ice
October was set for decisions on Solana and XRP spot ETFs - two of the largest tokens still awaiting U.S. approval after Bitcoin and Ethereum. With the federal shutdown sidelining most SEC staff, those reviews are paused until funding returns.
Image generated by Gemini
📈 Chart of the Week
Near-record Weekly Net ETF flows
This chart tracks net flows, inflows minus outflows, across BTC, ETH, and SOL ETFs. Last week totaled a little over $4B, the second highest weekly net figure since launch. Bitcoin led, with solid ETH and SOL contributions, which shows broad demand across majors. Flows rose as Bitcoin set fresh highs and investors used ETFs as the easiest on-ramp amid macro uncertainty.
💬 Tweets of the Week
🔥 LATEST: Morgan Stanley calls Bitcoin "a scarce asset, akin to digital gold," and recommends conservative crypto allocations in multi-asset portfolios.
The firm suggests up to 4% for "Opportunistic Growth" portfolios.
— #Cointelegraph (#@Cointelegraph)
11:30 PM • Oct 5, 2025
This rally revealed something crucial: long-term holders have cooled their selling intensity.
They’re still distributing, but with far less conviction.
This eases supply pressure and allows new participants to accumulate.
— #Swissblock (#@swissblock__)
2:55 PM • Oct 3, 2025
🧩 Blockchain 101: What is Proof of Stake?
Mining (Proof of Work) secures blockchains like Bitcoin by making computers solve puzzles. But puzzles take huge amounts of energy. Newer blockchains, like Ethereum, switched to a different system called Proof of Stake, which uses less energy, scales better, and is much faster.
Instead of racing to solve puzzles, people called validators put up, or “stake”, some of their own cryptocurrency as collateral. Think of it like leaving a deposit to prove you’ll play fair.
When a new page is ready for the record book, the network randomly selects a validator to check and add it. If they add a page that doesn’t follow the rules, like fake money or double-spending, the other validators spot the mismatch and reject it. The dishonest validator then loses part of their deposit.
It’s like a raffle where only people who put skin in the game get tickets. The more you stake, the more likely you are to be picked, but if you cheat, you lose your deposit.
All that mining and staking exists for a simple purpose: deciding which entries belong on the page, and keeping them there. Those entries are called transactions, lines that record who sent what, to whom, and under what rules.
Next Week in 101: What is in a Transaction?
Last Week in 101: What is Proof of Work?
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See you next week,
Don’t speculate, validate.
- Validator Digital
Disclaimer: Individuals have unique circumstances, goals, and risk tolerances, so you should consult a certified investment professional and/or do your own diligence before making investment decisions. The author is not an investment advisor and may hold positions in the assets covered. Certified professionals can provide individualized investment advice tailored to your unique situation. This newsletter is for general educational purposes only, is not individualized, and as such should not be construed as investment advice.