UBS Weighs Crypto Trading for Select Clients

📢Sponsor | 💡Telegram | 📰Past Editions

Good Morning,

Two different data sets are telling the same story. Onchain holders are selling at a loss and ETF money is heading out the door. That usually happens when buyers step back and the market starts losing its bid.

Check out our latest podcast episode!

In Today's Email:

• What Matters: UBS Weighs Crypto Trading for Select Clients 👀 

• Product of the Week: Ranger Adds AI Layer to Solana Perps Aggregation 🚀 

• Charts: BTC Data Flips to Net Losses, Spot BTC ETFs See $1.33B Outflows 📊 

You read and share. We listen and improve. Send us feedback at [email protected].

WHAT MATTERS

UBS Weighs Crypto Trading for Select Private Banking Clients

State of play: UBS Group is considering offering cryptocurrency trading to a limited group of private banking clients, according to people familiar with the matter cited by Bloomberg.

• The initiative is still under discussion, with UBS reportedly evaluating potential partners and no final decision made on timing or rollout.

• If launched, the service would be targeted and small in scope, not a broad retail crypto push.

• The move would mark a step beyond UBS’s previous crypto exposure, which has focused on regulated and indirect products.

• This includes tokenization efforts such as a tokenized money market fund on ETH and allowing select clients in Hong Kong to trade crypto futures based ETFs rather than spot assets.

• UBS’s cautious approach mirrors that of other global banks as demand from wealthy and institutional clients grows alongside clearer regulation.

Why it matters: Crypto is increasingly becoming a standard part of private banking offerings rather than an experimental edge case.

Our take: Private banks are reacting to client demand and peer pressure rather than leading the charge. The fact that this is limited, partner driven, and still undecided shows crypto is being slotted into existing wealth products, not reshaping them

For builders and investors: Banks will outsource risk and infrastructure while keeping client ownership. If you are building custody, execution, or compliance rails that reduce balance sheet exposure, you are aligned with this trend.

PRODUCT OF THE WEEK

Ranger Labs Adds AI Layer to Solana Perps Aggregation

Ranger Labs has raised $1.9M to expand its Solana based perpetuals aggregation product and layer AI powered trading tools on top of it.

• Ranger aggregates perp futures liquidity from multiple Solana venues, currently sourcing contracts from Jupiter and Flash, with plans to add Adrena and Drift.

• The goal is to give traders deeper liquidity and better execution through smart order routing, rather than competing as a standalone exchange.

• On top of this base, Ranger plans to introduce AI assisted trading products.

• These include AI managed vaults that combine rule based strategies with data inputs such as market signals and social sentiment.

• The team positions this as a natural extension of automated trading rather than a standalone AI product, with rollouts expected over the coming quarters.

Other cool products:

• RAILGUN, a DeFi privacy protocol.

• Glider, a portfolio automation protocol.

• Twyne, a borrowing optimization protocol.

Take a peek at our referral reward at the bottom of this issue. Share this newsletter and receive our list of 500 crypto VC individuals 👇

CHARTS OF THE WEEK

Bitcoin Onchain Data Flips to Net Losses

State of play: CryptoQuant says Bitcoin holders are realizing net losses for the first time since October 2023, signaling a shift in onchain profit dynamics after more than a year of sustained gains.

• According to the firm, realized profit momentum has been weakening since early 2024, with successive lower profit peaks across 2024 and 2025.

• Over the past 30 days, this has flipped from profit taking to loss realization, with cumulative realized losses reaching the equivalent of up to 69,000 BTC since December 23, 2025.

• CryptoQuant notes that the current pattern closely resembles the 2021 to 2022 bull to bear transition. During that cycle, declining realized profits preceded a broader market downturn.

• Annual net realized profits have now fallen to levels similar to early 2022, while realized losses are tracking comparable patterns.

• CryptoQuant concludes that declining net realized profits point to weakening price strength and frames the recent price rebound as a bear market rally rather than a durable recovery.

Our take: This points to market fatigue. Losses showing up usually mean demand is fading, not that a new rally is starting.

Spot Bitcoin ETFs See $1.33B Outflows

State of play: US spot Bitcoin ETFs recorded $1.33B in net outflows during the week ending January 23, marking their worst weekly performance since February 2025.

• The selling came in a shortened four day trading week due to the Martin Luther King Jr. Day holiday.

• The bulk of the outflows were concentrated early in the week, with $709M exiting on Wednesday and $483M on Tuesday.

• The sharp reversal followed $1.42B in inflows the prior week.

• BlackRock’s IBIT, the largest spot bitcoin ETF, saw outflows on all four trading days and was a major contributor to the decline.

• Despite the weak week, cumulative net inflows into US spot Bitcoin ETFs since launch still stand at $56.5B, with total assets around $115.9B.

• Ethereum ETFs mirrored the weakness, posting $611M in outflows, while Solana ETFs bucked the trend with $9.6M in inflows.

Our take: The ETF selling coincides with onchain data showing bitcoin holders beginning to realize net losses, reinforcing signs of a broader cooling phase across crypto markets.

QUICK BITES

• Japan to approve its first crypto ETFs in 2028.

• Global crypto ETPs log $1.7B in weekly outflows.

• Crypto shaves $100B as geopolitical turmoil mounts.

• Matcha Meta sees $16.8M drained in SwapNet incident.

• Entropy is winding down and returning capital to investors.

• UBS weighs crypto trading for select private banking clients.

• Metaplanet sees $680M in unrealized losses on BTC holdings in 2025.

• Ethereum Foundation forms post-quantum security team, adds $1M prize.

NOTEWORTHY READS & MEME

• Diego’s read on AI Stablecoin Agents Wars.

• Zeus’s read on RWAs 101: Nothing New Is Being Created.

• Gabriel Shapiro’s read on Crypto is Getting Coopted by 'Fintech.'

If you enjoy reading this issue, please consider subscribing. It takes 1 minute of your time, but it would mean the world to us 🙇

Disclaimer: All the information presented in this publication and its affiliates is strictly for educational purposes only. It should not be construed or taken as financial, legal, investment, or any other form of advice.