The Daily: Ripple leads $1 billion XRP treasury raise, MegaETH buys back portion of pre-seed stake, and more

The following article is adapted from The Block’s newsletter,  The Daily , which comes out on weekday afternoons.

Happy Friday! Bitcoin briefly slid below $104,000 this morning as " extreme fear " grips markets, with concerns over U.S. regional banks and renewed China trade tensions weighing on sentiment.

In today's newsletter, Ripple is reportedly leading an effort to raise $1 billion for a new XRP treasury company, MegaETH buys back 4.75% of equity and token warrants from pre-seed investors, Bitcoin ETFs see their largest daily outflows since August, and more.

Let's get started!

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Ripple leads $1 billion raise for new XRP treasury

Ripple is leading a $1 billion raise to create a new XRP digital asset treasury , Bloomberg reported, citing sources familiar with the matter.

• The fundraising is expected to occur via a special purpose acquisition company (SPAC), with Ripple contributing part of its own (substantial) XRP holdings.
• The details of the raise and the transaction structure are still being discussed and remain subject to change, but if completed, the new entity could become the largest XRP-focused DAT to date.
• The move comes amid cooling sentiment around DAT firms like Strategy, Metaplanet, and BitMine, as some begin to trade at market caps below their net crypto asset values.
• In June, Singapore-based Trident Digital announced plans to raise $500 million to build an XRP treasury.
• XRP , the world's fifth-largest cryptocurrency, fell 5.8% in the past 24 hours to trade at $2.27 amid the broader market downturn.

MegaETH buys back equity and token warrants from pre-seed investors

MegaETH repurchased 4.75% of its equity and token warrants from pre-seed investors ahead of its mainnet and token launch later this year, though the terms of the deal were not disclosed.

• However, co-founder Shuyao Kong said the buyback, approved by key stakeholders including Dragonfly and Echo, was completed above its $20 million seed-round valuation of "9-figures."
• Kong explained that some investors exited after shutting down their funds, and because MegaETH bans secondary sales, its team was the only permitted buyer.
• MegaETH said the buyback reflects its commitment to aligned ownership and tight governance as it readies a public token sale on Cobie's Sonar platform.

Spot Bitcoin ETFs see largest daily outflows since August, worth $536 million

Spot Bitcoin ETFs saw $536 million in net outflows on Thursday — their largest single-day withdrawal since Aug. 1, led by Ark Invest's ARKB and Fidelity's FBTC.

• The exodus reflects rising investor risk aversion amid U.S.-China trade tensions and a broader crypto market deleveraging, LVRG Research Director Nick Ruck said.
• Ruck noted that ETF outflows signal increased market fragility in the near-term, and suggested that prices may face further downward pressure.
• Meanwhile, spot Ethereum ETFs also reversed course with $56.9 million in net outflows on Oct. 16 after two days of gains.

Arthur Hayes' family office, Maelstrom, targets $250 million for new private equity fund

Arthur Hayes' family office, Maelstrom, is seeking to raise more than $250 million for a new private equity fund targeting up to six mid-sized crypto firms, according to Bloomberg.

• Managing Partner Akshat Vaidya said the fund will focus on blockchain service providers, including trading infrastructure and analytics startups, investing between $40 million and $75 million annually.
• Each acquisition will be structured through a special purpose vehicle targeting cash-generating businesses, Vaidya said.
  The raise comes amid a surge in crypto M&A activity this year, with Ripple, Coinbase, and Stripe among those striking major deals.

FIFA's World Cup NFT platform faces criminal complaint from Swiss gambling regulator

Swiss gambling regulator GESPA filed a criminal complaint against FIFA , alleging its World Cup NFT platform operates illegal, unlicensed gambling services.

• The investigation found that FIFA Collect's competitions involve monetary stakes, cash prizes, and chance-based outcomes qualifying as lotteries or sports betting.
• FIFA's NFT collections, initially built on Algorand and later migrated to Polygon, are now set to move to its own Avalanche-based "FIFA Blockchain."

Looking ahead to next week

• UK CPI inflation data are due on Wednesday. U.S. CPI numbers are scheduled for release on Friday.
• ECB President Christine Lagarde speaks on Tuesday and Wednesday.
• Melania Meme, Layer Zero, KAITO, and Scroll are among the crypto projects set for token unlocks .
• Zebu Live kicks off in London. Blockchain Africa Conference and Lugano Plan ₿ Forum also get underway.

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