AVAX fails to rally after VanEck launches the first AVAX ETF in the U.S.

Key takeaways

  • AVAX is up by less than 1% and is trading below $12.
  • VanEck launched the first Avalanche ETF in the United States.

VanEck’s AVAX ETF goes live

The first exchange-traded fund to track the Avalanche’s native token, AVAX, and include staking rewards, launched on the NASDAQ stock exchange. 

VanEck’s Avalanche ETF debuted on Monday and is trading under the ticker symbol VAVX. According to the investment management firm, VAVX is the first and currently the only U.S.-listed ETP focused on providing investors with exposure to the price return and potential staking rewards of Avalanche’s native token, AVAX.

Avalanche is one of the leading blockchains in the crypto space. It is an EVM-compatible blockchain launched by Ava Labs in 2020 with the primary goal of improving existing crypto scalability, interoperability, and usability. 

As a smart contract blockchain, Avalanche can execute contracts automatically when certain conditions are met.  

VanEck Director of Digital Assets Kyle DaCruz pointed out that Avalanche is a unique blockchain because it can link traditional finance and blockchain.

“Avalanche’s architecture is uniquely positioned to bridge the gap between traditional finance and the on-chain economy, focusing on verifiable, real-world utility,” DaCruz added.

AVAX fails to rally

The AVAX/USD 4H chart remains bearish as AVAX fails to rally despite the launch of the VAVX ETF. At press time, AVAX is trading at $11.75.

The momentum indicators remain bearish, suggesting that the bears remain in control. The RSI of 40 is below the neutral 50, while the MACD lines below the neutral region add further bearish confluence to the pair. 

AVAX/USD 4H Chart

If the bearish trend continues, AVAX could retest Sunday’s low of $11.24 over the next few hours or days. An extended bearish performance could see AVAX drop below the $10 psychological level.

However, if the market recovers, AVAX could hit the first major resistance level at $12.5 in the near term.

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Akash Network rallies 15% as demand grows for decentralized AI infrastructure

  • Akash Network price rose sharply to hit highs of $0.53 on Tuesday.
  • The token rallies as the decentralized AI sector attracts attention.
  • Buyers may target $1 next, although bearish pressure persists.

Akash Network’s AKT token climbed sharply on Tuesday, rising about 15% over the past 24 hours as renewed investor interest in decentralized artificial intelligence infrastructure lifted prices across the sector.

While the advance lagged gains seen in tokens such as Hyperliquid, Pump.fun and Axie Infinity, AKT outperformed many of its peers, reflecting growing confidence in decentralized cloud platforms as alternatives to centralized providers.

AKT leads gains among decentralized AI tokens

The broader crypto market posted modest gains on January 27, but a handful of AI-linked tokens recorded outsized moves.

AKT rose to around $0.53, up from intraday lows near $0.41, placing it among the strongest performers in its segment.

Trading activity also accelerated sharply, with 24-hour volume jumping more than 600% to above $45 million.

The surge lifted AKT above many decentralized AI peers, including established projects such as Bittensor and Render, which posted more muted intraday advances.

Market participants attribute the rally to increased attention on Akash Network’s role in distributed AI inference, as demand for decentralized GPU compute continues to grow.

Analysts also point to signs of larger-holder activity and broader sector momentum as contributing factors.

Adoption narrative supports near-term outlook

Interest in AI-related crypto assets has increasingly shifted toward practical adoption rather than speculative themes.

Projects such as Render, Bittensor, NEAR, and Virtuals Protocol have all seen recent price strength tied to real-world usage of AI infrastructure.

Akash Network, which operates a decentralized cloud and GPU marketplace for AI training and inference, has benefited from that shift in focus.

Analysts say investor interest has been supported by the platform’s positioning within the expanding AI compute market.

From a technical standpoint, AKT is showing broadly constructive signals, although near-term indicators remain mixed.

Prices are consolidating around the $0.48 to $0.50 area, a zone that represents near-term supply.

A sustained break above this level would be needed to extend the rally.

If momentum continues and broader market conditions remain supportive, analysts see potential upside toward $0.74, a level backed by improving MACD signals and a recovering relative strength index.

Further out, $1 and $2 are viewed as longer-term reference points, having marked key peaks in the previous market cycle.

However, analysts caution that volatility remains elevated. Profit-taking could trigger pullbacks, with initial support seen in the $0.43 to $0.35 range.

 

 

 

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HYPE soars 23% as commodities trading on Hyperliquid increases

Key takeaways

  • HYPE is up 23% in the last 24 hours and is now trading above $27.
  • The rally follows a surge in commodities trading amid rising interest in safe-haven assets like Gold and Silver.

Commodity trading on Hyperliquid pushes HYPE above $27

HYPE, the native coin of the Hyperliquid decentralized exchange, is the best performer among the top 20 cryptocurrencies by market cap.

The coin is up 23% in the last 24 hours and is now trading above $27 per coin. The rally comes as Hyperliquid’s HIP-3 decentralized exchanges recorded a new milestone, with their open interest rising to a new high of $790 million.

This figure represents over 200% growth in the past month but remains below Hyperliquid’s $8 billion open interest across all markets.

HIP-3 has been around since October 3 and allows qualified developers to deploy their own perpetual futures markets on Hyperliquid’s HyperCore infrastructure.

Thanks to this framework, trading for a wide range of assets beyond traditional cryptocurrencies, including commodities, stocks, and other real-world assets are now live on Hyperliquid. 

Hyperliquid CEO Jeff Yan stated on X that,

“Hyperliquid has quietly achieved an important milestone of becoming the most liquid venue for crypto price discovery in the world. With HIP-3 teams leading the way, Hyperliquid has also grown to become the most liquid venue for perps on tradfi assets.”

The surge in trading volume can be attributed to rising interest in Gold and Interest. Investors have been pushing their money into Gold and Silver as safe havens due to heightened global economic uncertainty

Gold and Silver perpetual contracts have seen particularly strong volume as investors seek hedges against inflation and geopolitical risks.

Data obtained from Flowscan shows that HIP-3 recorded a daily trading volume of $1.29 billion over the past 24 hours, with open interest at $693.8 million at the time of publication.

HYPE faces critical resistance at $28.4

The HYPE/USD 4H chart is bullish and efficient as Hyperliquid has rallied in the last 24 hours. The coin is up 23% since Monday and is now trading above the 20-day Exponential Moving Average (EMA).

HYPE/USD 4H Chart

HYPE is currently trading at $27.4 and could rally towards the $28.4 resistance level in the near term. An extended rally would allow HYPE to hit the $30 psychological mark. 

The Relative Strength Index (RSI) and MACD are above their neutral levels, indicating a dominant bullish momentum.

However, if the $28 resistance holds, HYPE could retest the Monday low of $21.6 in the near term.

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What the BPS ruling reveals about Australia’s crypto compliance gap

  • Misleading claims about Qoin approval, liquidity, and merchant acceptance were upheld.
  • The court imposed financial penalties, public notices, and a long-term operating ban.
  • ASIC is easing some crypto licensing requirements while maintaining enforcement pressure.

Australia’s long-running court battle against BPS Financial has ended with a decisive ruling that sharpens the spotlight on regulatory gaps in the country’s crypto and digital payments sector.

The Federal Court has ordered BPS Financial Pty Ltd to pay 14 million Australian dollars in penalties for operating its Qoin Wallet without the required licence and for making misleading claims about the product.

The case, brought by the Australian Securities and Investments Commission, centred on whether BPS crossed the line from technology provider to financial services operator.

The court found that it did.

By promoting and issuing the Qoin Wallet as a non-cash payment facility tied to its Qoin digital token, BPS was found to have engaged in regulated conduct without holding an Australian Financial Services Licence, breaching the Corporations Act.

How Qoin crossed into regulation

Between January 2020 and mid-2023, BPS promoted the Qoin Wallet as a way for users to transact using Qoin tokens across a network of merchants.

The court determined that this activity went beyond a simple software product. It involved issuing a payment facility and providing financial services and advice, both of which require licensing in Australia.

ASIC argued that the structure and promotion of the Qoin Wallet meant consumers were encouraged to treat it as a functional alternative to traditional payment methods.

The court agreed, finding that the absence of a licence during this period placed the product outside Australia’s legal framework for consumer protection.

Misleading claims under scrutiny

The court also upheld findings that BPS engaged in misleading and deceptive conduct.

Earlier judgments in 2024, upheld on appeal in 2025, found that the company made false statements about the status and functionality of Qoin.

These included claims that the product was officially approved or registered, that Qoin tokens could be readily exchanged for fiat currency or other crypto-assets, and that the token was widely accepted by merchants.

The court found these representations created an inaccurate impression of liquidity, acceptance, and regulatory standing.

ASIC launched civil penalty proceedings in 2022 after concluding that such claims were likely to influence consumer decisions.

The Federal Court imposed penalties totalling 14 million Australian dollars, including 1.3 million dollars for unlicensed conduct and 8 million dollars for misleading representations.

The court also barred BPS from operating a financial services business without a licence for 10 years, ordered corrective notices to be published on the Qoin Wallet app and website, and required the company to pay most of ASIC’s legal costs.

Judge Downes described the conduct as serious and unlawful, noting the involvement of senior management and weak internal compliance systems.

A widening compliance gap

The BPS decision lands at a time when ASIC is adjusting parts of its crypto regulatory approach.

In December, the regulator finalised exemptions designed to simplify the distribution of stablecoins and wrapped tokens.

These measures allow the use of omnibus accounts with appropriate record-keeping and remove the need for some intermediaries to hold separate Australian Financial Services licences.

The changes aim to reduce compliance costs for firms operating in digital assets and payments.

In a report released on Tuesday titled Key issues outlook 2026, ASIC chair Joe Longo identified digital assets and fintech as areas where regulatory gaps persist.

The report also flagged risks linked to opaque private credit, superannuation operational failures, high-risk investment sales, and AI-related consumer harm.

Together, these developments show a regulator trying to balance flexibility with consumer protection.

The BPS ruling exposes where that balance has yet to be fully defined.

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Bitwise launches non-custodial DeFi vault as asset managers move on-chain

  • The initial strategy focuses on USDC stablecoin lending through overcollateralised pools on Morpho.
  • Bitwise said the strategy currently targets returns of up to 6%, depending on market conditions.
  • The launch signals a broader shift by asset managers toward building and managing on-chain infrastructure.

Bitwise has taken a clear step beyond exchange-traded products by launching its first non-custodial on-chain yield strategy, signalling a deeper push into decentralised finance infrastructure.

The firm confirmed the launch on Jan. 26, positioning the new product as an on-chain vault curated by Bitwise but executed entirely through smart contracts.

Users retain control of their assets at all times, while Bitwise oversees how capital is allocated across decentralised lending markets.

The move highlights how traditional crypto asset managers are increasingly experimenting with direct DeFi exposure rather than relying solely on regulated wrappers.

Non-custodial vault structure

The new product is structured as a non-custodial vault, meaning users do not transfer control of their funds to Bitwise or to any centralised intermediary.

Instead, assets remain in user-controlled wallets and are deployed on-chain according to predefined rules.

Bitwise manages the strategy parameters, but all activity takes place transparently on public blockchains.

This setup is designed to appeal to investors who want exposure to on-chain yield without sacrificing custody.

All positions are visible on-chain, allowing users to track where funds are deployed in real time.

The firm has framed this as a way to combine professional portfolio management with the core principles of decentralised finance.

Stablecoin yield focus

The initial vault focuses on stablecoin lending, starting with USD Coin USDC.

Deposited funds are allocated to overcollateralised lending pools, where borrowers must post excess collateral to secure loans.

This structure is intended to limit counterparty risk compared with undercollateralised lending models.

The strategy is built on Morpho, a decentralised lending protocol that allows asset managers to design customised lending strategies while relying on standardised smart contracts.

According to Bitwise, the vault currently targets returns of up to 6% annually, depending on market conditions.

The firm has emphasised that yields will fluctuate based on on-chain supply and demand rather than being fixed or guaranteed.

Risk management on-chain

Bitwise said strategy design and ongoing risk oversight are led by Jonathan Man, CFA, who heads the firm’s multi-strategy solutions group.

The vault draws on Bitwise’s existing research, trading, and risk infrastructure, which has been developed through years of managing crypto investment products.

Smart contract execution ensures that positions are managed automatically according to predefined rules, while transparency allows users to independently verify activity.

Bitwise has not disclosed performance data so far, noting that the vault is still in its early stages.

Asset managers eye DeFi infrastructure

The Morpho vault represents Bitwise’s first direct move into non-custodial DeFi strategies.

Until now, the firm has primarily been associated with exchange-traded products and research aimed at traditional investors.

This launch marks a shift toward building and managing on-chain tools rather than offering exposure solely through off-chain products.

Morpho has gained traction as a platform for professional-grade DeFi strategies, enabling managers to deploy capital programmatically while maintaining on-chain transparency.

Bitwise has said it views on-chain vaults as a growing segment of the crypto market and plans to explore additional strategies over time.

While the firm has not shared timelines for expansion, it has described the vault as an early step in a longer on-chain roadmap.

As more capital flows into blockchain-based finance, Bitwise’s move suggests that asset managers are increasingly treating DeFi as core financial infrastructure rather than a peripheral experiment.

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