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Defiance Proposes 3X Leveraged Exposure on Bitcoin, Ethereum Funds and Crypto Stocks

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In brief

  • The Defiance prospectus covers proposals for 49 ETFs offering three times leveraged long and short exposure.
  • The offerings include products focused on Coinbase, BitMine Immersion, Strategy, and ETFs tracking the prices of Bitcoin, Ethereum, and Solana.
  • Defiance already offers a number of two times leveraged funds for Strategy and Robinhood, among other firms.

An asset manager known for exchange-traded funds geared toward risk-embracing investors wants to ratchet up the possibilities for these thrill-seekers, filing an application for 49 funds offering three times long and short leveraged exposure to tech and crypto-focused firms, gold, and ETFs that individually track the price of Bitcoin, Ethereum and Solana, among other assets. 

The Defiance Investments’ N-1A prospectus filed Friday with the U.S. Securities and Exchange Commission includes proposals for the 3X leveraged and inverse leveraged ETFs for crypto exchange giant Coinbase, Bitcoin treasury MicroStrategy, brokerage Robinhood, Ethereum treasury BitMine Immersion, and USDC stablecoin issuer Circle. It also aims to provide similar exposure to Grayscale’s Bitcoin and Ethereum mini-trust ETFs, and Volatility Shares’ Solana ETF.

Defiance and other firms already offer a number two times leveraged ETFs that are geared toward short-term investors, asking them to speculate on the one-day direction of certain stocks, many of them in the technology sector.



The company’s current offerings include the Daily Target 2X Long MSTR ETF (MSTX) and Daily Target 2X Long HOOD (HOOX), which seek results that are two times the daily share price change of Strategy and Robinhood. 

Three times leveraged funds are far rarer, with many observers of the space doubting that issuers would try to introduce more of these products, which can become a bad bet if the underlying asset veers in an unexpected direction. The prospectus itself warns repeatedly that the various funds proposed may not be right for all investors. 

“Things are getting wild,” Bloomberg ETF Analyst James Seyffart quipped in a Friday X post on the Defiance offerings. 

Still, the proposal with its crypto-focused products dovetails with issuers’ growing efforts to address investor demand for funds based on digital assets. On Friday, LeverageShares and Themes Trust included 3X long and short funds focused on COIN and HOOD among 14 ETFs in its proposal to the SEC.  

As of late August, the regulator was weighing more than 90 ETFs tracking individual tokens, combinations of coins, and different strategies. Those applications, which once seemed unlikely, followed the raging success of spot Bitcoin and Ethereum ETFs, with the BTC funds alone now commanding about $150 billion in assets, according to data from analytics platform CoinGlass. 

In a text to Decrypt, ETF.com Senior ETF Analyst Sumit Roy noted market concern about 3X funds and their potential limited audience.

“The conventional wisdom was that the SEC was only going to allow 2X leverage going forward, but these filings suggest that it may be willing to allow more volatile products to hit the market,” Roy wrote. “If they launch, these would be extremely risky funds designed for the most aggressive short-term traders.”

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Bitcoin price eyes $100k crash as Convano adopts Metaplanet-style buying strategy
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Babylon proposes BTC-BABY co-staking to lower inflation

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Babylon has proposed cutting BABY inflation and launching BTC-BABY co-staking, a system designed to align Bitcoin and BABY holders while reducing supply growth.

Summary

  • The proposal aims to cut inflation from 8% to 5.5%.
  • BTC-BABY co-staking aligns Bitcoin and BABY holders.
  • Testnet in September, mainnet launch in October.

Babylon has put forward a governance proposal that would cut BABY inflation and introduce a co-staking system linking Bitcoin with the network’s native token.

According to the Sept. 29 forum post, the plan aims to lower annual inflation from 8% to 5.5%, reducing supply growth by approximately 30%. At the same time, a co-staking mechanism would allow Bitcoin (BTC) stakers to boost their rewards by also staking BABY, thereby strengthening demand for the native token.

Inflation adjustment for sustainability

Under the proposal, annual inflation would fall from the current 8%, which is evenly split between Bitcoin and BABY stakers, to a new breakdown of 1% for BTC stakers, 2% for BABY stakers, and 2.35% reserved for BTC-BABY co-stakers. Another 0.15% would be shared between validators and finality providers to maintain network security. 

📣 New discussion post is live on the forum

It suggests two big changes:
🟠 Lower BABY inflation
🟠 Introduce BTC-BABY co-staking

Let’s break down what this means and why it matters 👇 pic.twitter.com/x22vPwVWSp

— Babylon (@babylonlabs_io) September 28, 2025

This adjustment brings overall inflation down to 5.5% per year, slowing the growth of BABY’s supply while preserving incentives for participation. Babylon said the shift reflects a move from bootstrapping adoption to ensuring long-term sustainability, supported by the $6.38 billion in Bitcoin already staked through its protocol.

Co-staking to align holders

The proposed co-staking system ties Bitcoin staking more closely to BABY. For every 20,000 BABY staked, one BTC becomes eligible for extra rewards. A user pairing 6 BTC with 50,000 BABY would earn enhanced returns on 2.5 BTC, while staking 6 BTC with 150,000 BABY would make the entire position eligible.

Babylon said this design strengthens alignment between Bitcoin holders and BABY stakers, giving both groups a direct incentive to participate more deeply in the network. The team expects the mechanism to go live on testnet in late September, with mainnet deployment planned for October.

The proposal also sets the stage for further adjustments once trustless Bitcoin vaults are introduced. These vaults, still in development, will allow native BTC to interact with decentralized finance applications across chains without bridging or wrapping.

Babylon said its tokenomics will evolve alongside these launches, but the immediate step is to reduce inflation and integrate BTC and BABY through co-staking.





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Tesla Proposes a Trillion-Dollar Bet That It's More Than Just Cars
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Tesla Proposes a Trillion-Dollar Bet That It’s More Than Just Cars

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Tesla launched a limited robotaxi service in Austin, Texas, earlier this summer, but it’s unclear whether the vehicles driving around the city are technologically advanced enough to count toward that 1 million robotaxi goal. (The proposal specifies that the robotaxis must not have a “human driver,” and the vehicles in Texas have safety monitors sitting in their front passenger seats for city rides and in the driver’s seats for highway trips.)

Meanwhile, the company is reportedly falling well short of its goal to produce 5,000 units of Optimus, its humanoid robot, by the end of this year, having produced only a few hundred. Musk has said that Optimus could one day revolutionize the global economy by replacing the majority of human labor, but The Information reported in July that the Optimus team was having particular trouble with the robot’s hands. The company’s vice president of Optimus robotics, a nine-year Tesla veteran, left in June.

“For Musk to receive the full pay package, Tesla will need to be the leader of autonomous vehicles and humanoid robots in a number of countries,” says Seth Goldstein, a senior equity analyst at Morningstar, a financial services firm.

Musk’s past pay packages have been unconventional and controversial. Unlike other CEOs, Musk does not receive annual compensation or incentives but is instead paid according to Tesla’s long-term performance. His 2018 pay package, worth more than $50 billion, is still in legal limbo after a shareholder lawsuit accusing the Tesla board of insufficient transparency and independence led to a Delaware judge striking it down last year. (Tesla responded by reincorporating in Texas.) The board granted Musk an interim $29 billion stock award last month.

The proposal demonstrates that, despite Musk’s controversial moves, Tesla’s board sees him as a crucial part of the automaker’s success and that the Musk era is far from over. “This new pay package should keep Elon Musk at Tesla for at least the next decade,” says Goldstein.

The package’s goals double down on the messages of Tesla’s “Master Plan Part IV,” a lofty mission statement posted this week exclusively on X, Musk’s social platform. Tesla’s Master Plans were once cheeky blogs posted directly by Musk onto Tesla’s website, complete with back-of-the-envelope energy cost calculations. The new plan points to Tesla’s more civilizational ambitions. “Autonomy must benefit all of humanity,” one section reads; “Greater access drives greater growth,” reads another, complete with renderings of Optimus robots serving cocktails and watering plants.

But if Musk wants to change the world and make his trillion, he’ll have to stay in his lane—and out of President Donald Trump’s, for whom he once served as “First Buddy”. The board-run committee that put together the pay proposal has met with Musk 10 times since February, the Tesla board wrote in its filing. Among other things, the filing reads, the committee received “assurances that Musk’s involvement with the political sphere would wind down in a timely manner.”



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Philippines Congressman Proposes BTC Reserve to Attack National Debt

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A bill proposed in the Philippine Congress would create a government-run bitcoin (BTC )reserve that cannot be touched for two decades except to pay down the nation’s rising debt load, setting some of the strictest sovereign crypto storage rules yet.

The proposed Strategic Bitcoin Reserve Act, introduced by Rep. Miguel Luis R. Villafuerte, directs the Bangko Sentral ng Pilipinas (BSP) to purchase 2,000 BTC annually over five years for a total of 10,000 BTC.

“The State shall promote and maintain economic prowess, including monetary stability and the convertibility of the peso, especially in times of crisis. With the increasing role of cryptocurrency in the world’s financial system, it is imperative to enact measures aimed at diversifying our assets to ensure financial security,” the bill reads.

Villafuerte’s legislation stipulates that the holdings would be locked for 20 years, and during that period, bitcoin may only be sold or swapped for the purpose of retiring government debt. Once the holding period ends, the central bank governor would be restricted to offloading no more than 10% of the assets in any two-year window.

In January, the country’s Bureau of the Treasury reported that its national debt hit $285 billion, or 60% of its GDP.

Villafuerte wrote in the bill that he was inspired by commodity-style reserves such as the U.S. Strategic Petroleum Reserve or Canada’s maple syrup stockpile.

To ensure resilience, the country’s central bank would establish geographically dispersed cold-storage facilities across the country, audited quarterly through public cryptographic attestations and verified by independent third parties.

The bill says that forks and airdropped assets must also be retained for at least five years, and stresses that private ownership of BTC will not be infringed, with promises that citizens’ crypto holdings would not be subject to confiscation.



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Sonic Labs Proposes Token Issuance To Enter U.s. Tradfi Markets
Crypto Trends

Sonic Labs Proposes Token Issuance to Enter U.S. TradFi Markets

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Sonic Labs is moving to expand $S into U.S. traditional finance, aiming for ETFs, ETPs, and NASDAQ PIPE structures. The proposal, announced via X, targets institutional adoption and a stronger U.S. presence. 

This project is set to be led by Sonic USA LLC, which will bring on a CEO and put together a team based in the U.S. to tackle market and regulatory opportunities. 

To ensure swift strategic moves, the proposal also rolls out updated tokenomics. The plan includes launching new tokens to support a $100 million NASDAQ PIPE, a $50 million ETF allocation, and 150 million $S tokens for Sonic USA’s operations. 

Right now, Sonic Labs is at a bit of a disadvantage since it only holds a small fraction of its initial allocation. Other L1 chains hold onto 50–90% of tokens, allowing for quick collaborations and increased market visibility for strategic reasons.  

Strategic Goals and Token Usage

Sonic is set to fund three projects with this issuance’s tokens. To kick things off, they’ll partner with BitGo to ensure secure custody and work with an ETF provider for tracking $S in ETP/ETF products. This initial phase will provide liquidity support and ensure everything meets institutional-grade compliance.

Moreover, Sonic’s financial strategy will be bolstered by NASDAQ PIPE allocations, paving the way for long-term treasury inclusion and open market acquisitions.

Sonic USA LLC also plans to bring in new leadership, establish an office in New York City, and push for regulatory harmonization to drive domestic growth. Plus, every token transaction will be transparently recorded on-chain.

The plan also includes updates to the gas fee structure. Ninety percent of FeeM transactions are directed to builders, while five percent goes to validators, and the remaining five percent is set to be burned. For non-FeeM transactions, half will be allocated to validators, and the other half will be burned.

These changes aim to reduce net inflation, create a deflationary atmosphere, and boost the value of the $S. 

Through modernizing its tokenomics and expanding into the U.S. market, Sonic could enhance its competitive edge. With the issuance of strategic reserves, Sonic can become more agile in seizing opportunities in traditional finance, improve its visibility on platforms like CoinMarketCap and CoinGecko, and encourage wider adoption.

Also Read: Kraken Expands xStocks to Tron, Boosting Access and DeFi Trading



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