Insights 
VT 
The decrease in UK consumer credit from £1.692 billion to £1.491 billion in September highlights a reduced borrowing trend among UK consumers during the month.
The Bank of Canada is projected to lower its benchmark interest rate by a quarter point to 2.25%. This reduction follows a recent similar rate cut and forms part of the bank’s ongoing easing strategy.
US Federal Reserve Rate Cut
The US Federal Reserve is anticipated to cut its policy rate after the October meeting. Attention will be on the statement language and comments from Fed Chair Powell, especially as no economic data releases are expected at that time.
Solana has partnered with Western Union, a major remittance network. Institutional support for Solana is growing, evidenced by the Bitwise Solana Staking ETF recording $56 million in trading volume on its first day.
The recent dip in UK consumer credit to £1.491 billion confirms the trend of economic slowing we have seen develop through 2025. With UK third-quarter GDP growth coming in at a sluggish 0.2%, we see an opportunity to hedge against further weakness in the British Pound. We are considering buying put options on the FTSE 100 index for the coming weeks.
With the Bank of Canada widely expected to cut its key interest rate to 2.25%, the move itself is likely already priced into the currency markets. We saw Canadian inflation finally fall to 2.1% last month, giving the central bank justification to continue the easing cycle that began earlier this year. The real opportunity for a trade will be in any surprise language in their statement, making short-term straddles on the Canadian dollar an interesting play on volatility.
US Federal Reserve Meeting
The upcoming US Federal Reserve meeting is the most significant event on our radar, with Fed funds futures now implying a 90% chance of a quarter-point rate cut. US Core PCE inflation, the Fed’s preferred gauge, dropped to 2.5% in the last report, providing Chair Powell with the necessary cover to begin easing. We anticipate a spike in the VIX index, and are preparing for market swings based on how dovish his forward guidance is.
On the crypto front, the Solana partnership with a legacy payment giant like Western Union is a major signal of mainstream adoption. The $56 million in first-day trading volume for the new Bitwise Solana Staking ETF is a very bullish indicator of institutional interest, echoing the demand we saw for the first Bitcoin ETFs back in 2024. We are looking at buying SOL call options to capitalize on this clear upward momentum.
