In a pivotal development for blockchain automation, Gelato, a decentralized network specializing in smart contract automation, has successfully raised $11 million in a Series A+ funding round led by Hack VC. This new injection of capital brings Gelato’s total funding to $23 million, with investments from Animoca Brands, IOSG Ventures, and Bloccelerate VC. The funds will be used to expand Gelato’s platform, enabling startups and enterprises to build and scale blockchain applications more efficiently, which could drive broader adoption of Web3 technology.
Kraken’s Ink Joins Gelato’s Expanding Customer Base
A highlight of Gelato’s recent funding announcement is the addition of Kraken’s Ink as a customer. Ink, Kraken’s highly anticipated layer-2 blockchain, is expected to launch in early 2025. Kraken, a renowned crypto exchange, aims to empower users through Ink by providing decentralized trading, borrowing, and lending services without the need for intermediaries. Gelato’s platform will facilitate Kraken’s move into decentralized finance (DeFi) by automating complex smart contracts and handling the technical intricacies of a scalable blockchain network.
Speaking with Cointelegraph, Gelato co-founder Hilmar Orth highlighted that Ink aligns with Gelato’s mission to work with Web3 leaders “poised to advance adoption past its current status quo.” He emphasized that Gelato prioritizes partnerships that can address Web3’s limitations by creating a more robust and accessible ecosystem.
Tackling Web3 Scalability Challenges
With the rapid rise in decentralized applications (DApps), scalability has emerged as a crucial issue for the Web3 ecosystem. High transaction fees and slow processing times, especially on networks like Ethereum, often hinder user experience. Orth pointed out that the notion of “all applications fitting on a single blockchain is outdated,” underscoring that a modular, multi-chain approach is critical for scaling Web3 effectively.
Gelato’s platform is geared toward solving these bottlenecks, providing automated solutions that streamline transactions and improve reliability. By offering a decentralized smart contract infrastructure, Gelato facilitates efficient blockchain interactions, reducing the need for manual interventions and mitigating risks like liquidity issues and transaction volatility in cryptocurrency trading.
A Second $11 Million Boost in October
The Series A+ funding follows Gelato’s $11 million Series A raise earlier in October, which saw contributions from prominent investors like Dragonfly Capital, ParaFi Capital, and Aave founder Stani Kulechov. These back-to-back investments reflect strong confidence in Gelato’s role as a leader in the blockchain automation sector.
The earlier funds were earmarked for onboarding more blockchain networks to Gelato’s ecosystem and expanding its team. Currently, Gelato operates a 15-member team that manages its Ethereum-based automation network, serving Web3 companies looking to automate smart contracts and optimize liquidity management.
The new funding will allow Gelato to enhance user experience for both Web2 and Web3 clients, catering to a diverse range of businesses looking to integrate blockchain applications into their operations. With support from industry giants like Kraken and investors across the crypto landscape, Gelato is well-positioned to lead in blockchain automation, bringing scalable solutions to a technology still in its early stages of adoption.
By addressing core Web3 challenges and collaborating with companies like Kraken, Gelato is playing a central role in making blockchain technology more accessible and efficient for enterprises and users alike.
Solana has emerged as a powerful presence in the crypto industry. Since its inception in 2020, the network has dominated the market, demonstrating remarkable levels of user engagement and practical utility, particularly in decentralized finance (DeFi). Many in the industry view it as the next natural contender to receive an ETF approval in the United States.
However, others are more cautious in their evaluations. BeInCrypto spoke with representatives from Gravity, Variant, and OKX to understand the areas where Solana is still lacking. Industry leaders referred to centralization, network reliability, and excessive regulation as points of contention for Solana’s ETF approval.
Bitcoin and Ethereum’s Precedent
The availability of exchange-traded funds (ETFs) for prominent cryptocurrencies has grown over the past year. These funds offer investors diversified investment opportunities and act as a bridge between traditional finance and the increasingly mainstream cryptocurrency market.
Meanwhile, the deadline for some filings, including Grayscale’s, was extended until October. Nonetheless, posts on X and some analytical reports suggest yesterday’s deadline as a date of interest for an initial or consolidated SEC response to several applications.
2025 Predictions and Market Expectations
The tentative approval of a Solana ETF has generated much debate across social media platforms. ETF President Nate Geraci formally predicted that 2025 would be the year of crypto ETFs and that Solana would receive its approval this year.
Per previous reports, former Trump White House Secretary Anthony Scaramucci expressed that, with a Trump reelection, Solana ETFs could gain approval during Q1 of 2025. According to his predictions, Solana would receive the SEC’s green light during the next two weeks.
Meanwhile, the prediction market Polymarket estimates an 82% chance that a Solana ETF will get approved in 2025.
According to a Polymarket poll, Solana has an 82% chance of getting an ETF approval in 2025. Source: Polymarket
Several factors make an imminent Solana ETF approval seem plausible. Less than five years after the network launched, Solana quickly became a major player in the crypto industry, attracting users for its high transaction speeds and low gas fees.
“From a network perspective, Solana’s performance has been remarkable, now driving nearly 50% of all global DEX volume– a dominance that fundamentally reshapes the DeFi landscape. The blockchain is not just handling unprecedented transaction volumes… it’s transforming our understanding of blockchain scalability at scale,” Lennix Lai, Global Chief Commercial Officer at OKX told BeInCrypto.
Solana has established itself as a dynamic force in the crypto industry following a successful 2024.
A Messari report detailed particular growth in Solana’s final quarter across DeFi, liquid staking, NFTs, and institutional involvement. The total value locked (TVL) in Solana’s DeFi sector increased substantially, growing by 64% to $8.6 billion, which placed it behind Ethereum as the second-largest network based on TVL.
Solana’s positive performance, coupled with Donald Trump’s reelection to the US presidency, further amplified the crypto industry’s optimism over an ETF approval.
However, some industry experts have expressed more tempered expectations.
Experts Offer Tempered Expectations
A few days before Trump assumed the presidency, Bloomberg Intelligence analyst James Seyffart said Solana ETFs may not be launched in the US until 2026. He cited the SEC’s precedent of taking a lot of time to review filings as the cause for delay.
In another post, Bloomberg Senior ETF analyst Eric Balchunas said that ETF approvals for other cryptocurrencies were more likely to occur before Solana.
“We expect a wave of cryptocurrency ETFs next year, albeit not all at once. First out is likely the BTC + ETH combo ETFs, then prob Litecoin (bc its fork of btc = commodity), then HBAR (bc not labeled security) and then XRP/Solana (which have been labeled securities in pending lawsuits),” Balchunas said.
Balchunas further explained that complex legal issues around Solana, relating to its status as a security, need to be resolved before it can gain ETF approval. Consequently, he deemed the approval of Litecoin or Hedera ETFs more likely.
Uncertainty over whether Solana classifies as a security is a major driver fueling doubts over its ETF approval.
Security Classification Concerns
Martins Benkitis, co-founder and CEO of Gravity, explained that Solana’s regulatory classification complicates its path to approval.
“It’s no secret there’s currently a lack of precedent for Layer-1 blockchains beyond Bitcoin and Ethereum in the ETF space, this suggests cautious optimism but with higher regulatory hurdles. Bitcoin, being a commodity in the SEC’s eyes, and Ethereum’s gradual transition to PoS had different legal considerations. Solana, on the other hand, faces concerns over potential classification as a security due to its token distribution and foundation’s involvement,” Benkitis told BeInCrypto.
The SEC identified Solana as a security in lawsuits against Binance and Coinbase over the past two years, although these lawsuits have since been dropped. The SEC argued that these tokens could be considered investment contracts under the Howey Test.
While some interpreted the SEC’s lawsuit withdrawal as a softening stance on Solana’s security classification, others quickly challenged this assumption.
“There is no reason to think [the] SEC has decided SOL is a non-security. That they don’t want to do discovery on a dozen tokens in the Binance case appears to be a litigation tactic, not a change in policy,” said Jake Chervinsky, Chief Legal Officer at Variant, following the Binance lawsuit withdrawal in July 2024.
Others believe that a pro-crypto administration should be enough to influence the SEC to consider Solana as a non-security. Lai disagrees.
“The changing political landscape, particularly with Trump’s victory and pro-crypto stance, could create a more constructive environment for innovative blockchain platforms like Solana. However, the technical and market structure considerations will remain crucial regardless of administration changes,” he said.
In the meantime, there are several other requirements Solana must meet.
On his part, Lai added other aspects to the list of considerations.
“While Polymarket shows high odds for 2025 approval, several critical factors suggest a more complex pathway: Solana’s technological architecture presents unique challenges with its PoS mechanism; The absence of CME futures raises liquidity and risk management concerns; Historical network downtime incidents need addressing; Centralization questions relative to BTC and ETH remain unresolved; Institutional interest hasn’t matched BTC and ETH levels despite the network driving 48% of global DEX volume; [and] the temporary nature of trending themes suggests caution in using current volumes as primary indicators,” Lai told BeInCrypto.
Concerns about centralization and scalability have long been discussed regarding Solana, even outside of discussions over an ETF approval.
Since 2021, Solana has suffered over a dozen network outages varying in severity. These outages have jeopardized the network’s reputation as stable and reliable– two strongly considered characteristics during the ETF approval process.
“From a market making standpoint, network reliability is crucial as any downtime or congestion can significantly impact trading operations and order execution,” Benkitis affirmed.
However, Solana has successfully curbed the number of outages it has experienced. Once notorious for the frequency of its shutdowns, the last time Solana experienced one was in February 2024.
Meanwhile, developers designed Solana’s upcoming Firedancer validator client to improve network stability and transaction processing. Its distinct codebase offers greater resilience against widespread outages and will enhance Solana’s performance.
Yet, Solana must also mitigate centralization concerns to improve its chances of obtaining ETF approval.
Centralization Concerns
Solana’s validator node requirements, which demand significant hardware investments, can create barriers to entry. These obstacles can potentially concentrate power within the network among those capable of affording the necessary infrastructure.
In turn, the protocol’s limited number of validators compared to other networks raises concerns over centralization. For context, while Solana currently has around 2,000 active validators, Ethereum passed the one million benchmark last year—the largest number recorded by any blockchain network.
Though Solana’s hardware reliance speeds up the network, it also raises decentralization concerns. Benkitis factored this aspect into his evaluation of an ETF approval.
Its currently underdeveloped futures market infrastructure further complicates Solana’s viability as an ETF candidate.
Its filings were unprecedented because the network did not have a previously established futures market. This factor was crucial in determining an ETF approval for Bitcoin and Ethereum.
“The lack of CME futures and institutional frameworks comparable to BTC/ETH could influence [the SEC’s] evaluation,” Lai said.
He added that the proliferation of meme tokens minted on Solana could present themselves as a potential roadblock.
“Market reactions reflect Solana’s emergence as the primary driver of this cycle, with DEX volumes exceeding $100 billion and dominating major aggregators. However, I believe the temporary nature of trending themes suggests continued volatility. While technological advancement and growing institutional adoption may provide stronger foundations, we need to maintain perspective on the cyclical nature of crypto trends,” Lai said.
This more recent development in Solana’s attraction also brings its set of downsides.
Meme Coin Influence and Regulatory Concerns
The expanding meme coin market on Solana partially explains its popularity. Platforms like Pump.fun allow anyone to launch their tokens, and this design has even led to celebrities launching their tokens on the platform.
More recently, political figures like Donald Trump and Argentine president Javier Milei have also launched meme tokens on Solana platforms. Yet, these activities have proven to be high-risk. In many cases, meme coin investments have caused smaller retailers millions of dollars in losses.
Benkitis said that the SEC might frown upon the speculative nature of these trading activities.
“While an ETF approval could unlock liquidity opportunities, the market’s heavy dependence on speculative sentiment calls for a measured and cautious approach,” he said.
With so many considerations, approving a Solana ETF in 2025 is far from guaranteed. The SEC’s eventual decision will be a defining moment for the network and the broader crypto industry.
Japan is at the cusp of a landmark regulatory shift, potentially reshaping the playing field for crypto market participants.
Amid tough regulations in the country, crypto firms such as Metaplanet have been looking outward, but planned reforms could mean a paradigm shift.
Japan Eyes Regulatory Overhaul to Unlock Bitcoin ETFs and Tax Reform
On June 24, the country’s Financial Services Agency (FSA) released a formal proposal. It aims to reclassify crypto assets under the Financial Instruments and Exchange Act (FIEA).
If adopted, this change could pave the way for Bitcoin ETFs (exchange-traded funds) in Japan. The proposal could also reduce the tax burden on crypto investors from a maximum of 55% to a flat 20%. Such a move would align digital asset gains with stock investments.
Local media reports that the proposal will be deliberated at the Financial System Council meeting on June 25. It is one of the most serious efforts yet to align Japan’s crypto regulations with those of mature financial markets.
Currently, crypto assets in Japan are regulated under the Payment Services Act, limiting their treatment to digital payment methods. The proposed transition to FIEA would officially define cryptocurrencies as “financial products.”
It would also open them up to enhanced investor protections. Among them is creating the regulatory framework necessary to list Bitcoin ETFs on Japanese exchanges.
“[the FSA aims to] strengthen investor protection and market transparency while encouraging broader participation by both institutional and retail investors,” local media reported.
This is a sharp pivot away from Japan’s historically cautious stance. It is also part of a broader national strategy to become an investment-driven economy.
Tax Reform Could Accelerate Institutional Adoption
One of the proposal’s most consequential elements is the shift from progressive taxation to a flat 20% tax rate on crypto gains. Notably, such a rate would mirror the capital gains tax on traditional equities.
This change could dramatically increase domestic participation, especially from high-net-worth individuals and institutions deterred by Japan’s steep tax regime.
Some analysts believe Japan’s unfavorable crypto regulations partly influenced the move.
“Metaplanet is moving beyond Japan’s limited capital markets and regulatory frameworks…Japan will be the R&D center, while the US becomes another capital aggregation and BTC acquisition engine,” wrote Adam Livingstone in a post.
In the same tone, Metaplanet’s filing indicated that “the United States, as the world’s preeminent financial center, offers optimal conditions for efficient and large-scale Bitcoin acquisition and management.
This suggests moving into the US provides superior capital market access and better legal clarity on Bitcoin. A tax change at home could reverse that trend. It may give companies like Metaplanet more reason to scale their crypto operations domestically.
Japan’s government is positioning crypto assets as a strategic pillar in its “New Capitalism” initiative, detailed in the 2025 revised Grand Design and Action Plan. This blueprint calls for developing full-scale Web3 infrastructure, supporting NFTs, and turning Japan into a global hub for alternative investments.
If approved, this system overhaul would mark a historic turning point, signaling Japan’s transition from a regulatory gatekeeper to a global champion of crypto utilization.
Joseph Chalom, BlackRock’s Head of Digital Assets Strategy, switched careers to become SharpLink Gaming’s new co-CEO. SharpLink has been an Ethereum treasury firm in recent months, and Chalom wants to “activate” its ETH.
At BlackRock, Chalom helped pioneer the company’s Bitcoin and Ethereum ETFs alongside ETH-based tokenized funds and other products. However, he is an Ethereum maximalist, and SharpLink can better fit into that long-term vision.
Now that he’s moved on from BlackRock, Chalom described a few strategies for turbocharging SharpLink’s Ethereum commitments.
Essentially, he wants to make ETH the new foundation of DeFi worldwide, “activating” it through native staking, restaking, and more. As SharpLink’s new co-CEO, he can marshal company resources to achieve this goal.
In the long run, Chalom envisions a world where stablecoins, RWAs, AI agents, and more all fit comfortably into Ethereum’s blockchain. BlackRock has had a significant influence on the ETH ecosystem, but SharpLink will prioritize it long-term.
This kind of bold, trend-setting approach might protect the company from market risks and create fresh opportunities.
