PPI, ETFs and DATs

Find our most recent reports in collaboration with Bybit below:

• Bybit x Block Scholes Quarterly Report: What will drive crypto in Q3 2025?

• Bybit x Block Scholes July Volatility Review

• Bybit x Block Scholes Quarterly Report: Altcoin season and the evolving role of Bitcoin

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Daily Updates:

• The Producer Price Index (PPI) report “measures the average change over time in the selling prices received by domestic producers for their output”, and is therefore a measure of wholesale inflation in the US.
• Yesterday’s report showed PPI inflation decreased 0.1% in August from a month earlier, the first decline in four months, and far below expectations of a 0.3% increase.
• Year-over-year, PPI rose 2.6%, massively undershooting expectations of 3.3%, while core PPI rose 2.8% against expectations of 3.5%.
• The previous PPI report covering inflation over the period of July came in far higher than expected, and showed the largest increase since March 2022. That resulted in a selloff across risk-on assets including BTC, which fell from an ATH of $124K earlier that day down to $117K.
• Those figures however were also revised down yesterday. Core PPI in July was downwardly revised from 3.7% to 3.3%.
• Both crypto and US stocks pushed higher on the unexpected decline and treasury bond yields fell lower, as the data reinforced the market’s expectations of a September rate cut and more to come before the year ends. However,markets are still awaiting one final piece of macro data, CPI inflation, due later today.  

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• The S&P 500 hit yet another all-time high, while BTC finally broke out past the $113K upper bound that we have commented it has traded under. Since last evening, it has been consolidating at $114K.
• Ether is up 2.65% over the last 24 hours. After initially paring back all of its gains following the report, it now trades above $4,400.
• Spot Ethereum ETFs also look to be turning around a six day outflow streak. Yesterday the products purchased $171.5M of Ether, while Bitcoin Spot ETFs purchased a mega $741.5M — the largest daily inflow since Jul 16, 2025.
• Volatility smile skews abated some of their tilt towards out-the-money puts amidst the spot rally too. 7-day 25-delta put-call skew rose from a low of -4.7% and is now trading at -1.7%. Therefore, although ETH traders are still demanding a premium for downside protection, that premium has eased slightly.
• A similar recovery is seen in BTC skew too. 7-day options skew is now at -1.2%, close to the highest it's been all month.

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• Immediately after the report, President Trump posted “Just out: No Inflation!!! ‘Too Late’ must lower the RATE, BIG, right now. Powell is a total disaster, who doesn’t have a clue!!! President DJT”

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• According to Bloomberg’s ETF analyst Eric Balchunas, five crypto ETFs from REX and Osprey have passed the SEC’s 75-day review window and are now expected to begin trading by Friday.
• That list includes the REX-Osprey Bonk ETF, Trump ETF, Bitcoin ETF, XRP ETF and Doge ETF.
• Balchunas said “Post-effective means that it’s going to launch, basically”, in reference to a specific filing made with the SEC.

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• Many of these ETFs are structured to be filed under the Investment Company Act of 1940, designed to provide a simpler route to launch.
• Spot Bitcoin ETFs on the other hand were filed under the Securities Act of 1933. According to Balchunas, “This is a ‘40 Act, which doesn’t directly invest fully in spot”, therefore “So long as the SEC doesn’t say anything, you can let it launch 75 days after filing.”

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• BitMine Immersion Technologies, a public crypto mining and the largest ETH digital asset treasury (DAT) company, added 46,255 ETH worth $201M to its treasury, blockchain analytics firm Onchain Lens reported Wednesday. The transfers originated from a BitGo wallet across three addresses, one tied to BitMine.
• With the purchase, BitMine’s Ethereum holdings rose to about 2.13M ETH valued at $9.3B. The company aims to accumulate 5% of Ethereum’s total supply.

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• The Hong Kong Monetary Authority has issued draft guidance that would ease capital requirements for banks holding certain digital assets, Caixin reported Thursday morning.
• The proposal, set out in a new supervisory policy manual known as CRP-1, explains how crypto assets will be treated under Basel Committee capital standards due to take effect locally in 2026.

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This Week’s Calendar:

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Charts of the Day:

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