Zcash Reclaims Top-20 Spot with $10B Market Cap

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Good Morning,

JPMorgan is upping its Bitcoin bet and scaling back on Ethereum. The bank boosted its holdings in BlackRock’s iShares Bitcoin Trust by 64% to $312M while dropped their ETHA holdings to just 66 shares worth about $1,700.

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In Today's Email:

• What Matters: Zcash Reclaims Top-20 Spot with $10B Market Cap 📈 

• Product of the Week: CFTC to Approve Leveraged Spot Crypto Trading 👀 

• Charts: JPMorgan BTC ETF Holdings, Kazakhstan $1B Crypto Reserve 📊 

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WHAT MATTERS

Zcash Reclaims Top-20 Spot with $10B Market Cap

State of play: Zcash (ZEC) has surged over 750% since October, reaching a $10.9B market cap and overtaking Hyperliquid to rejoin the crypto top 20. The rally pushed ZEC past $680, its highest price since 2018.

• The rally is fueled by renewed interest in privacy assets amid regulatory debates in Europe and growing shielded transaction use.

• Analysts cite Zcash’s improving infrastructure, mobile wallet integrations, and Solana compatibility as key catalysts.

• Arthur Hayes revealed that ZEC has become the second-largest holding in his Maelstrom portfolio after Bitcoin.

• He also calls it an “encrypted Bitcoin” due to its 21M capped supply, Proof-of-Work model, and zk-SNARK privacy tech.

• Despite the hype, experts warn of overextension as funding rates turn deeply negative and speculation outpaces fundamentals.

Why it matters: As governments push tighter oversight, more users are turning to shielded transactions for real financial privacy. It also proves older PoW projects can rise again when they improve usability and cross-chain access.

Our take: Zcash’s story as an “encrypted Bitcoin” fits the moment, but the speed of its rise hints at overheated speculation. Still, growing use of shielded wallets suggests this wave has stronger roots than past spikes.

For builders and investors: The surge in Zcash shows that users still value control over their data and money. Real adoption will depend on making privacy simple and accessible, not just ideological.

PRODUCT OF THE WEEK

CFTC Moves to Approve Leveraged Spot Crypto Trading

Acting CFTC chair Caroline Pham has confirmed that the agency is working with regulated exchanges like CME, Cboe, and Coinbase Derivatives to launch spot crypto trading with leverage as early as next month.

• The move uses existing Commodity Exchange Act powers to regulate leveraged crypto trades under CFTC oversight, marking the first time such products could appear on US regulated markets.

• The initiative aims to provide institutional-grade risk controls and investor protections while expanding access to leveraged trading for assets like Bitcoin and Ethereum.

• Pham is pushing forward despite the ongoing government shutdown delaying the confirmation of Trump’s nominee Mike Selig as her replacement.

• Reports suggest Pham is expected to join MoonPay as chief legal and administrative officer after leaving the CFTC.

Other cool products:

• ArtRun, an “artcoins” trading platform.

• Beefy Finance, a multichain yield optimizer.

• Helix, a spot and derivatives exchange on Injective.

• Accumulated Finance, an omnichain modular liquid staking protocol.

• Lockon, a profitable INDEX that takes advantage of on-chain analysis.

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CHARTS OF THE WEEK

Kazakhstan Plans $1B Crypto Reserve Fund

State of play: Kazakhstan is preparing to launch a national crypto reserve fund worth $500M-$1B by early 2026. The fund will be built using seized and repatriated assets, along with proceeds from state-backed mining operations.

• Instead of holding cryptocurrencies directly, it will invest in ETFs and crypto-focused companies.

• Managed under the Astana International Financial Centre, the initiative marks Kazakhstan’s most decisive step toward institutionalizing its crypto sector.

• Officials say the goal is to turn confiscated digital assets into a tool for economic sovereignty.

Our take: Turning seized assets into a crypto reserve shows growing state confidence in digital markets. Even without direct bitcoin exposure, the move positions Kazakhstan as a potential regional leader in regulated crypto finance.

JPMorgan Boosts Bitcoin ETF Holdings 64%

State of play: JPMorgan Chase increased its stake in BlackRock’s iShares Bitcoin Trust (IBIT) by 64% in Q3, holding 5.28M shares worth ~$312M.

• The move makes it a significant institutional holder, though still smaller than Goldman Sachs and Millennium Management.

• The expansion comes as JPMorgan analysts predict bitcoin could reach $170K within a year, citing easing market volatility and post-liquidation stability.

• In contrast, the bank’s exposure to BlackRock’s Ethereum Trust (ETHA) dropped to just 66 shares worth about $1,700.

Our take: The sharp rise in IBIT holdings shows stronger conviction in BTC’s upside and a clear shift among big banks toward bitcoin-first exposure after recent market turbulence.

QUICK BITES

• JPMorgan’s IBIT exposure jumps 64%.

• Italy's banks support ECB's digital euro plan.

• Ledger considering New York IPO or fundraise.

• Zcash reclaims top-20 spot with $10B market cap.

• US spot BTC ETFs see largest daily outflow since August.

• Trump Media posts $55M Q3 loss as Bitcoin bet reaches $1.3B.

• Kazakhstan to launch a national crypto reserve fund worth $500M-$1B.

• BTC, ETH surge as US Senate advances bill to end government shutdown.

• Acting CFTC chair confirms push to launch leveraged spot crypto trading.

NOTEWORTHY READS & MEME

• Exagroup’s read on Crypto Is Now a Stablecoin Industry.

• CBB’s read on How We Made $5M Running the #1 Arbitrage Bot.

• Stablewatch’s thread on Yield Bearing Stablecoin Ecosytem Map.

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