Today’s Cryptocurrency Updates: BlackRock’s New ETF, Coinbase’s India Comeback, and ZKsync Lite Transition

By: crypto insight|2025/12/09 09:30:13

Key Takeaways

BlackRock seeks approval to launch an ETF focusing on staked Ether, marking a notable development in crypto financial products.
Coinbase reopens its platform in India after a two-year hiatus, signaling a strategic return to one of the world’s largest markets.
ZKsync Lite, a pioneering zero-knowledge rollup on Ethereum, is set to retire in 2026, preparing the ground for more advanced blockchain technologies.
These developments reflect the dynamic landscape of crypto investments, regulatory challenges, and technological advancements.

WEEX Crypto News, 2025-12-09 09:17:01

BlackRock’s Ambitious Move with Staked Ether ETF

BlackRock, a leading asset management company, has taken a strategic step by applying for regulatory approval to list a staked Ether exchange-traded fund (ETF) in the United States. This initiative is part of BlackRock’s broader strategy to expand its cryptocurrency offerings, capitalizing on the growing interest in digital assets. The application process, detailed in a Friday filing with the US Securities and Exchange Commission (SEC), involves a Form S-1 registration statement, a mandatory step for companies seeking to introduce new investment vehicles such as ETFs. However, it’s important to note that filing does not imply automatic approval, as regulatory compliance and scrutiny are crucial aspects of this process.

The proposed ETF, intending to trade on the Nasdaq exchange under the ticker ETHB, represents a significant move in financial markets. If approved, it could be one of the pioneering investment products linked to staked cryptocurrencies. The move by BlackRock follows Grayscale Investments’ earlier enhancement of their ETH trusts with staking capabilities last October. This highlights a trend among financial institutions to integrate crypto staking into their investment offerings, reflecting the burgeoning interest in diverse crypto products.

Historically, the SEC has been cautious in approving crypto staking funds, with the first spot Ether ETFs gaining approval only as recently as May 2024. Nevertheless, the landscape is gradually evolving, as evidenced by Canary Capital’s SEC filing for a staked Injective (INJ) product in July, and the launch of staking products tied to Solana (SOL) by Grayscale and Bitwise in October.

BlackRock’s robust position in the crypto investment space is underscored by its management of the largest spot Bitcoin (BTC) exchange-traded fund, the iShares Bitcoin Trust ETF, traded under the ticker symbol IBIT. This strategic expansion into staked Ether ETFs illustrates BlackRock’s commitment to broader cryptocurrency adoption and its potential to galvanize similar pursuits by other financial firms.

Coinbase Strategically Re-enters the Indian Market

In a move signaling strategic market expansion, major US-based cryptocurrency exchange Coinbase has re-launched its services in India, reinvigorating its platform after withdrawing from the market over two years ago. This significant return was announced by Coinbase APAC director, John O’Loghlen, at the recent India Blockchain Week (IBW), marking Coinbase’s renewed commitment to tapping into the vast potential of the Indian crypto market.

Coinbase’s decision to cease operations in September 2023, a year after its local exchange debut in 2022, underscored the challenges and volatility cryptocurrency platforms face globally. However, the renewed efforts to resume operations symbolize a calculated approach to re-establish its presence and harness the growing interest in crypto assets within the region. The strategic move is part of a long-term plan to introduce local fiat on-ramps by 2026, restoring and enhancing the platform’s services to better meet the needs of the Indian market.

John O’Loghlen emphasized Coinbase’s commitment to a clean start, reiterating the company’s intent to off-board previous customers who were originally serviced through overseas entities. This bold strategy aims to foster a fresh and regulated operational framework, ensuring compliance with local regulations and providing users with a reliable crypto trading platform.

The exchange’s current approach includes immediate access for Indian users to conduct crypto-to-crypto trades, revalidating Coinbase’s adaptability and strategic market penetration. This revitalized focus comes on the heels of last October’s early-access program and the appointment of Karan Malik as India’s marketing lead, underscoring an invigorated dedication to local engagement and market integration.

When asked about the relaunch, a Coinbase representative maintained the exchange’s focus on fostering transparent crypto trading services, empowered by its Financial Intelligence Unit (FIU) registration in March. This regulatory alignment is crucial for establishing a compliant and trusted operational model in India.

ZKsync Lite: Transitioning to Next-Gen Technology

The evolutionary paradigm of blockchain technology continues to shift as ZKsync Lite, the first zero-knowledge (ZK) rollup network on Ethereum, prepares for its scheduled retirement in 2026. Introduced by Matter Labs as ZKsync 1.0 in 2020, this network was initially designed for optimizing fast transfers and non-fungible token (NFT) minting processes. Despite its limited functionality, mainly due to the lack of smart contract support, ZKsync Lite represented a groundbreaking proof-of-concept within the blockchain community.

ZKsync Lite’s planned sunset signifies more than the conclusion of an operational phase; it punctuates a remarkable journey of technological innovation. The network’s purpose was to demonstrate the feasibility and efficiency of production ZK systems, contributing invaluable insights into advanced blockchain construction. These insights are now paving the way for more sophisticated technologies, including Matter Labs’ zero-knowledge Ethereum Virtual Machine (zkEVM), introduced under the new ZKsync Era.

This strategic evolution from ZKsync Lite to the enhanced zkEVM underscores a broader trend of technological refinement and the continuous pursuit of blockchain scalability. The cessation of ZKsync Lite’s development in early 2023 marks a transitional phase focusing on integrating smart contract capabilities, setting precedence for other blockchain technologies to embrace similar advancements.

Matter Labs has assured that while ZKsync Lite prepares for its orderly sunset, other products within its portfolio will remain unaffected, maintaining operational stability and progressive development. Future guidelines concerning ZKsync Lite’s transition will include concrete dates and migration plans, ensuring a seamless evolution for current users.

The Dynamic Intersection of Technology and Regulation in Cryptocurrency

In light of these developments, the cryptocurrency landscape continues to embody dynamic interplay between technological advancements and regulatory frameworks. The proposed BlackRock staked Ether ETF is illustrative of the financial industry’s push towards embracing new crypto-based financial products and navigating the intricate compliance requirements set by regulatory bodies.

Similarly, Coinbase’s comeback in India reflects a pragmatic approach to evolving market dynamics and regulatory climates, showcasing the adaptability required for crypto exchanges to thrive globally. The challenges encountered and overcome in these markets highlight the intricate balance between innovation and regulation, an equilibrium central to the future of cryptocurrency adoption.

Moreover, the planned transition of ZKsync Lite resonates with a recurring theme within the tech industry: the relentless pursuit of innovation. The shift towards more advanced blockchain architectures, such as zkEVM, aligns with the sector’s broader push for scalability and efficiency, hallmarks of a rapidly advancing digital era.

FAQs

What is the significance of BlackRock’s staked Ether ETF filing?

BlackRock’s filing for a staked Ether ETF highlights a significant development in crypto investments, as it represents one of the first potential offerings tied to staked cryptocurrencies. Approval of such a product would underscore a growing acceptance and integration of digital assets within traditional financial markets.

Why did Coinbase originally exit the Indian market?

Coinbase withdrew from India after a challenging debut in 2022, rooted in the complexities of regulatory compliance and operational hurdles. The relaunch represents a strategic opportunity to stabilize and expand its presence under more favorable conditions.

What are zero-knowledge rollups, and why are they important?

Zero-knowledge rollups are a scaling solution for blockchains like Ethereum, designed to increase transaction speed and efficiency by bundling multiple transactions into a single block. They are critical for advancing blockchain scalability and improving network performance.

What does the sunset of ZKsync Lite mean for its users?

The scheduled sunset of ZKsync Lite in 2026 marks the end of its operational lifecycle, transitioning users towards more advanced technologies like zkEVM, which offer enhanced functionality, including smart contract support.

How do regulatory frameworks impact cryptocurrency innovation?

Regulatory frameworks significantly influence crypto innovation by setting standards for compliance and risk management. Balancing regulation with technological advancement is crucial to fostering a secure and competitive environment for crypto assets.

Over the past 24 hours, the crypto market has shown strong momentum across multiple dimensions. The mainstream discussion has focused on Coinbase's official entry into the prediction market through the acquisition of The Clearing Company, as well as the intense controversy within the AAVE community regarding token incentives and governance rights.

In terms of ecosystem development, Solana has introduced the innovative Kora fee layer aimed at reducing user transaction costs; meanwhile, the Perp DEX competition has intensified, with the showdown between Hyperliquid and Lighter sparking widespread community discussion on the future of decentralized derivatives.

I. Mainstream Topics

1. Coinbase Acquires The Clearing Company, Officially Entering Prediction Market

This week, Coinbase announced the acquisition of The Clearing Company, marking another significant move to deepen its presence in this field after last week's announcement of launching a prediction market on its platform.

The Clearing Company's founder, Toni Gemayel, and the team will join Coinbase to jointly drive the development of the prediction market business.

Coinbase's Product Lead, Shan Aggarwal, stated that the growth of the prediction market is still in its early stages and predicts that 2026 will be the breakout year for this field.

The community has reacted positively to this, generally believing that Coinbase's entry will bring significant traffic and compliance advantages to the prediction market. However, this has also sparked discussions about the industry's competitive landscape.

Jai Bhavnani, Founder of Rivalry, commented that for startups, if their product model proves to be successful, industry giants like Coinbase have ample reason to replicate it.

This serves as a reminder to all entrepreneurs in the crypto space that they must build significant moats to withstand competition pressure from these giants.

2. Kalshi Launches Kalshi Research and Integrates BSC Network

Regulated prediction market platform Kalshi launched its research arm, Kalshi Research, this week, aimed at opening its internal data to the academic community and researchers to facilitate exploration of prediction market-related topics.

Its inaugural research report highlights Kalshi's outperformance in predicting inflation compared to Wall Street's traditional models. Kalshi co-founder Luana Lopes Lara commented that the power of prediction markets lies in the valuable data they generate, and it is now time to better utilize this data.

Meanwhile, Kalshi announced its support for the BNB Chain (BSC), allowing users to deposit and withdraw BNB and USDT via the BSC network.

This move is seen as a significant step for Kalshi to open its platform to a broader crypto user base, aiming to unlock access to the world's largest prediction market. Furthermore, Kalshi also revealed plans to host the first Prediction Market Summit in 2026 to further drive industry engagement and development.

3. AAVE Token Incentive Controversy Persists as Founders and Whales Increase Holdings Against the Market Trend

The AAVE community recently engaged in heated debates around an Aave Improvement Proposal (AIP) titled "AAVE Tokenomics Alignment Phase One - Ownership Governance," aiming to transfer ownership and control of the Aave brand from Aave Labs to Aave DAO.

Aave founder Stani Kulechov publicly stated his intention to vote against the proposal, believing it oversimplifies the complex legal and operational structure, potentially slowing down the development process of core products like Aave V4.

The community's reaction was polarized. Some criticized Stani for adopting a "double standard" in governance and questioned whether his team had siphoned off protocol revenue, while others supported his cautious stance, arguing that significant governance changes require more thorough discussion.

This controversy highlights the tension between the ideal of DAO governance in DeFi projects and the actual power held by core development teams.

Despite governance disputes putting pressure on the AAVE token price, on-chain data shows that Stani Kulechov himself has purchased millions of dollars' worth of AAVE in the past few hours.

Simultaneously, a whale address, 0xDDC4, which had been quiet for 6 months, once again spent 500 ETH (approximately $1.53 million) to purchase 9,629 AAVE tokens. Data indicates that this whale has accumulated nearly 40,000 AAVE over the past year but is currently in an unrealized loss position.

The founder and whale's increased holdings during market volatility were interpreted by some investors as a confidence signal in AAVE's long-term value.

4. Top Articles: DeFi Curators and Ethereum Annual Summary

In this week's top article, Morpho Labs' "Curator Explained" detailed the role of "curators" in DeFi.

The article likened curators to asset managers in traditional finance, who design, deploy, and manage on-chain vaults, providing users with a one-click diversified investment portfolio.

Unlike traditional fund managers, DeFi curators execute strategies automatically through non-custodial smart contracts, allowing users to maintain full control of their assets. The article offered a new perspective on the specialization and risk management in the DeFi space.

Another widely circulated article, "Ethereum 2025: From Experiment to Global Infrastructure," provided a comprehensive summary of Ethereum's development over the past year. The article noted that 2025 is a crucial year for Ethereum's transition from an experimental project to global financial infrastructure. Through the Pectra and Fusaka hard forks, Ethereum achieved significant reductions in account abstraction and transaction costs.

Furthermore, the SEC's clarification of Ethereum's "non-securities" nature and the launch of tokenized funds on the Ethereum mainnet by traditional financial giants like JPMorgan marked Ethereum's gaining recognition from mainstream institutions. The article suggested that whether it is the continued growth of DeFi, the thriving L2 ecosystem, or the integration with the AI field, Ethereum's vision as the "world computer" is gradually becoming a reality.

II. Mainstream Ecosystem Updates

1. Solana: Launches Kora Fee Layer and propAMM Data Research

The Solana Foundation engineering team released a fee layer solution called Kora this week.

Kora is a fee relayer and signatory node designed to provide the Solana ecosystem with a more flexible transaction fee payment method. Through Kora, users will be able to achieve gas-free transactions or choose to pay network fees using any stablecoin or SPL token. This innovation is seen as an important step in lowering the barrier of entry for new users and improving Solana network's availability.

Additionally, a deep research report on propAMM (proactive market maker) sparked community interest. The report's data analysis of propAMMs on Solana like HumidiFi indicated that Solana has achieved, or even surpassed, the level of transaction execution quality in traditional finance (TradFi) markets.

For example, on the SOL-USDC trading pair, HumidiFi is able to provide a highly competitive spread for large trades (0.4-1.6 bps), which is already better than the trading slippage of some mid-cap stocks in traditional markets.

Research suggests that propAMM is making the vision of the "Internet Capital Market" a reality, with Solana emerging as the prime venue for all of this to happen.

2. Perp DEX: Hyperliquid vs. Lighter Competition Intensifies

The competition in the perpetual contract DEX (Perp DEX) space is becoming increasingly heated.

In its latest official article, Hyperliquid has positioned its emerging competitor, Lighter, alongside centralized exchanges like Binance, referring to it as a platform utilizing a centralized sequencer. Hyperliquid emphasizes its transparency advantage of being "fully on-chain, operated by a validator network, and with no hidden state."

The community widely interprets this as Hyperliquid declaring "war" on Lighter. The technical differences between the two platforms have also become a focal point of discussion: Hyperliquid focuses on ultimate on-chain transparency, while Lighter emphasizes achieving "verifiable execution" through zero-knowledge proofs to provide users with a Central Limit Order Book (CLOB)-like trading experience.

This battle over the future direction of decentralized derivatives exchanges is expected to peak in 2026.

Meanwhile, discussions about Lighter's trading fees have surfaced. Some users have pointed out that Lighter charged as much as 81 basis points (0.81%) for a $2 million USD/JPY forex trade, far exceeding the near-zero spreads of traditional forex brokers.

Some argue that Lighter does not follow a B-book model that bets against market makers, instead anchoring its prices to the TradFi market, and the high fees may be related to the current liquidity or market maker balance incentives. Providing a more competitive spread for real-world assets (RWA) in the highly volatile crypto market is a key issue Lighter will need to address in the future.

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