Performance Update

As of September 2025, Bursera Capital's total ROI is 1325.82% since the fund's inception in 2019, with Bitcoin standing at 1000.22% and the average fund reaching 596.64%. Returns are -1.83%, with the average fund reporting -0.18% and Bitcoin at 5.38%. Our Compound Annual Growth Rate (CAGR) of 52.06% continues to lead both Bitcoin (45.27%) and the average fund (32.60%).

Market News

Key developments shaping digital asset markets and policy this month:

• Senate takes up crypto taxation: In October, the Senate Finance Committee will hold a hearing to assess how digital asset rules should apply to areas like staking, mining, and tokenized products. The session could serve as a foundation for new legislation aimed at clarifying long-standing tax gray zones.
• $442M in forced liquidations: A broad selloff triggered more than $442 million in liquidations, led by Ethereum, Bitcoin, and Solana. The event underscored the risks of excessive leverage, but analysts note that clearing out weak positions may create healthier market conditions going forward.
• Naver moves deeper into digital finance: South Korea’s largest internet company, Naver, completed a stock-swap acquisition of Upbit’s parent company. By bringing one of the nation’s top exchanges into its financial arm, Naver is positioning itself at the center of a rapidly evolving regional fintech landscape.
• CFTC explores stablecoin use in collateral: The Commodity Futures Trading Commission (CFTC) is seeking public input on whether stablecoins and other tokenized assets should be permitted as margin in derivatives markets. Adoption would mark a significant step in linking traditional financial infrastructure with blockchain-based instruments.
• Aave cements dominance in DeFi lending: Active loans on Aave have climbed past $30.5 billion, giving it roughly 65% market share in decentralized borrowing. The scale reinforces Aave’s role as a critical liquidity hub, though it also concentrates risk in a single protocol.

Senate Schedules Hearing on Crypto Taxation

Lawmakers to evaluate how current rules apply to staking, mining, and tokenized assets as federal oversight expands.

The U.S. Senate Finance Committee has scheduled an October hearing to examine digital asset taxation. The review will focus on how the Internal Revenue Service (IRS) rules apply to activities such as staking rewards, mining income, and tokenized products, with lawmakers expected to weigh whether new legislation is needed to modernize the framework.

• Hearing details: The Senate Finance Committee will hold the hearing in October, marking one of the most direct examinations of digital asset taxation at the federal level to date. The session reflects mounting pressure on lawmakers to clarify rules for a rapidly expanding market.
• IRS treatment in question: Current tax codes classify most digital assets as property, but questions remain about how staking rewards, mining income, and tokenized financial instruments should be recognized and reported. These gray areas have created uncertainty for both retail investors and institutions.
• Treasury’s role: The hearing follows the Treasury Department’s rollout of updated reporting requirements earlier this year, which sought to strengthen transparency and close tax gaps in the sector. Lawmakers are expected to use this guidance as a foundation for the upcoming debate.
• Testimony expected: Industry leaders, tax experts, and policymakers will provide input during the session, offering perspectives on how rules can balance investor compliance obligations with broader federal revenue goals.
• Compliance challenges: Companies and individuals alike have raised concerns about the administrative burden of current tax treatment. Proposals for simplification or exemptions—particularly for smaller transactions—may be part of the discussion.
• Policy implications: The outcome of the hearing could set the framework for U.S. digital asset taxation for the next decade, shaping investor participation, institutional adoption, and the country’s broader competitiveness in financial innovation.

Digital Asset Market Liquidations Top $442M Amid Broad Dip

Massive liquidations underscored heightened volatility as Bitcoin, Ethereum, and Solana declined, though signs of resilience remain in focus.

Over the past 24 hours, more than $442 million in crypto positions were liquidated — primarily long positions — reflecting extreme short-term stress across the market. The event highlighted how quickly leveraged bets can unwind when volatility accelerates.

• Ethereum drives the losses:Ethereum accounted for more than $180 million in liquidations as its price fell over 4% on the day and nearly 13% over the week, underscoring its outsized influence on broader market sentiment.
• Bitcoin’s share of liquidations:Bitcoin contributed $63 million in liquidations, despite a relatively modest 1.4% decline. Its resilience relative to altcoins illustrates its role as a defensive anchor within digital assets.
• Solana and smaller tokens hit hard:Solana triggered nearly $35 million in liquidations following a 5% drop, while emerging projects like Aster also saw double-digit losses, highlighting the fragility of risk appetite outside the largest networks.
• Market breadth weakens: The global crypto market shed roughly 2.2% over 24 hours, with only a handful of major tokens showing gains on the week, reflecting widespread pressure across asset classes.
• Shakeout may reset leverage: The scale of liquidations has cleared many overextended positions, potentially reducing systemic risk and setting a more stable foundation for future market moves.
• Longer-term narratives intact:Despite near-term volatility, institutional adoption, regulatory developments, and continued infrastructure growth remain in place, supporting a constructive longer-term outlook for digital assets.

Naver Acquires Upbit in Strategic Stock Swap

South Korea’s leading tech conglomerate integrates a major crypto exchange into its platform as it deepens its push into digital finance.

South Korea’s tech giant Naver has acquired Dunamu, the parent company of Upbit, through a stock swap that places the exchange under Naver Financial’s control. The transaction brings one of the country’s largest crypto exchanges directly into Naver’s ecosystem, reinforcing its strategy of building a multi-layered financial and technology platform.

• Deal structure and consolidation: Naver executed the acquisition through a share-exchange transaction rather than cash, issuing new equity to Dunamu stakeholders. This mechanism consolidates control of Upbit under Naver Financial, signaling a long-term commitment to embedding crypto trading within its core operations.
• Investor reception and stock gains: Following the announcement, Naver’s stock price jumped more than 7%, reflecting investor enthusiasm for its move deeper into digital assets. The market response underscores confidence that crypto integration can strengthen Naver’s competitive positioning within Korea’s technology and finance sectors.
• Scale of combined platforms: Upbit already commands a leading share of Korea’s crypto trading volumes and millions of active users. By aligning these with Naver’s more than 25 million daily active users across payments, search, and content services, the acquisition creates one of the largest consumer finance ecosystems in the region.
• Synergies and “super app” vision: Naver aims to leverage Upbit’s exchange infrastructure to expand its payments platform, integrate trading with consumer services, and accelerate the development of a unified “super app.” The goal is to blend equities, digital assets, retail payments, and lifestyle services under a single digital interface.
• Stablecoin and tokenization roadmap: Analysts view the acquisition as a likely precursor to a won-pegged stablecoin initiative and broader tokenization projects in South Korea. Such an expansion could position Naver at the forefront of integrating digital currencies with mainstream commerce and financial services.
• Regional and strategic implications: This consolidation marks a significant milestone in Asia’s digital finance sector, showing how large tech firms are merging with crypto platforms at scale. It underscores how supportive regulatory environments in South Korea are enabling rapid convergence between traditional internet giants and next-generation financial infrastructure.

CFTC Eyes Stablecoins as Tokenized Collateral

Regulator begins public consultation to allow stablecoins in derivatives margin as part of push toward more efficient capital use.

The CFTC under Acting Chair Caroline Pham has unveiled an initiative to permit stablecoins and other tokenized assets to serve as collateral in derivatives markets. The agency is soliciting stakeholder feedback through October 20, signaling a regulatory shift that could tighten the intersection between traditional finance and decentralized markets.

• Policy pivot underway: The CFTC invites written submissions on how to integrate stablecoins and tokenized non-cash assets into collateral frameworks, touching on valuation, custody, and regulatory guardrails.
• Mandate and momentum: This effort aligns with the CFTC’s “crypto sprint” agenda and directives from the President’s Working Group report, positioning collateral modernization as a central frontier for innovation.
• Role of the GENIUS Act: With stablecoins now regulated under the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, legal certainty exists for U.S.-licensed issuers to underwrite stablecoin-backed collateral structures.
• Risk and complexity: Integrating stablecoins into margin regimes raises challenges—reserve guarantees, auditability, solvency models, and interoperability across clearing systems all must be addressed.
• Capital efficiency upside: If implemented successfully, this could lower friction in capital markets, giving participants new ways to deploy liquidity without requiring overcollateralization in cash or bonds.
• A measured step forward: This initiative does not guarantee immediate adoption, but opens a path toward token-native infrastructure in regulated derivatives markets, blending innovation with oversight.

Aave Loan Activity Surges to $30.5B, Dominating DeFi Lending

Protocol sets a new milestone as it captures nearly two-thirds of decentralized borrowing and lending activity.

Aave has reached a record $30.5 billion in active loans, giving it control of roughly 65% of the decentralized finance (DeFi) lending market. The achievement highlights both the scale of the platform and the growing reliance on Aave as the core liquidity hub for crypto-based borrowing.

• Unmatched market share: Aave’s outstanding loans now exceed $30 billion, leaving competitors far behind. Its closest rival manages less than $5 billion, underscoring the protocol’s entrenched leadership in DeFi lending.
• Total value locked expansion: With over $42 billion in total value locked (TVL), Aave is not only the largest decentralized lending protocol but also one of the most significant players across all of DeFi.
• Revenue generation: The platform collected nearly $25 million in fees over the past week, ranking it among the highest-earning protocols and putting it on par with some centralized issuers in terms of revenue.
• Beyond borrowing: Aave’s role extends past simple lending—users deploy it for collateral management, leverage strategies, and yield optimization, making it a central tool in DeFi portfolio construction.
• Competitive yields: Interest rates available on Aave deposits continue to outpace traditional banking products, with stablecoin yields around 5–6% compared to sub-1% savings accounts in many global markets.
• Opportunities and risks: The protocol’s dominance provides stability but also raises concentration concerns. Nonetheless, its growth demonstrates the potential for DeFi lending to serve as a long-term alternative to conventional finance.