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GM to all of you nutcases. It’s Crypto Nutshell #722 noticin’ something… 👀🥜
We're the crypto newsletter that's more heartwarming than a cowboy and a space ranger becoming best friends... 🤠🚀

What we’ve cooked up for you today…
😱 Shutdown
⏳ Ethereum supply shock incoming
🚀 Time to rip
💰 And more…


Prices as at 4:50am ET

SHUTDOWN 😱
BREAKING: Crypto ETFs were ready to launch, then the US government shut down — here's what could happen next

Yesterday we told you the floodgates were open.
Today? Washington slammed them shut.
Late Tuesday night, Congress failed to reach a funding deal - and the U.S. government officially shut down.
Brutal timing: dozens of crypto ETFs were primed for SEC approval, from Solana to Litecoin to XRP.
Now everything’s in limbo…
Normally, during a shutdown, the SEC “goes home.”
That means no comment letters, no sign-offs, no green lights - nothing moves until funding is restored.
One source put it bluntly: “The expectation is that the SEC is not working on crypto ETFs’ registration statements until the government reopens.”

Could Paul Atkins, the Trump-appointed SEC chair, carve out an exception and push crypto products through anyway?
Maybe. But don’t bet on it.
The irony is painful: just as generic listing standards made ETF approvals “essentially automatic,” politics has yanked the cord.
The SEC could batch-approve multiple ETFs in October or November - but only after the lights come back on.
So yes, the ETF supercycle is still coming. It’s just on pause for the moment.

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ETHEREUM SUPPLY SHOCK INCOMING ⏳
The stage is set…
Ethereum’s supply is vanishing right before our eyes.

Ethereum on exchanges just hit its lowest level in 9 years.
Only 14.8M ETH - just 12.2% of supply - is left sitting on centralized exchanges. 👀

We all know what happens next when supply vanishes…
At the same time, whales are making their move.
Wallets holding 10K–100K ETH are buying massive amounts right now. 👀

Low supply.
Heavy accumulation.
It doesn’t take a genius to see where this leads. 🧠

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TIME TO RIP 🚀
Let’s dive deeper into Ethereum’s supply side dynamics.
To do that we’ll be focusing on the amount of Ethereum currently being staked.
Quick Note: Ethereum staking involves locking up ETH to support the blockchain’s security. In return, users earn rewards for staking.
If you’d like to learn more about staking, check out this article.

Staked ETH won’t stop climbing.
As of today, 35,708,659 ETH is locked away.
That’s +1.71M ETH this year alone - worth about $7.4B at current prices.
And here’s the kicker: that stash now equals 29.47% of Ethereum’s entire supply.
Nearly a third of all ETH is effectively off the market - parked by holders who aren’t touching it anytime soon.
Meanwhile, exchange balances just hit a nine-year low.
This is a textbook supply crunch unfolding in real time.
And history is clear: when demand slams into a shrinking float, ETH doesn’t drift higher…
It rips. 🚀

CRACKING CRYPTO 🥜
Ripple and Coinbase to qualify as crypto custodians under new SEC staff guidance. The staff guidance clarifies the definition of "bank" under the Investment Advisers Act of 1940 and the Investment Company Act of 1940.
US Senate to hold hearing on crypto taxes as IRS offers relief on corporate tax. The US Senate Finance Committee is holding a hearing on Wednesday on crypto asset taxation, following the IRS’s release of relief guidance on the Biden-era CAMT tax.
Circle (CRCL) Expands $635M Tokenized Treasury Fund to Solana Amid Rapid RWA Growth. USYC, Circle’s tokenized money market fund, is currently the fifth largest offering in the rapidly growing, $8 billion tokenized treasuries sector.
Sui digital asset treasury company plans to launch two stablecoins. Competition among stablecoins looks like its about to heat up with several new US dollar-pegged tokens coming down the pike.
WHAT WE’RE READING 📚
Want to get even smarter? Check these out.
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Raremints (link) - Daily crypto news
Bitcoin Breakdown (link) - Daily Bitcoin news
Techpresso (link) - Daily tech news and insights
The Hustle (link) - Get Smarter on Business and Tech
Your Next Breakthrough (link) - Personal growth with Mark Manson
The Neuron (link) - AI trends and tools to keep you ahead
CAN YOU CRACK THIS NUT? ✍️
Select your answer below and you’ll be redirected to the results page. (answer explanation can be found after “Meme Corner”)
Which consensus innovation allows Solana to achieve high throughput alongside Proof of Stake?
MEME CORNER 😂
Because what would the crypto world be without its share of memes?

Trivia Answer: Proof of History 🥳
Proof of History timestamps events, enabling fast and ordered validation. ⏱️
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DISCLAIMER: The content of this newsletter is not financial advice. This newsletter is strictly educational and is not investment advice. Please be careful and do your own research.