Insights 
VT 
The US Federal Reserve plans to cut the policy rate after its October meeting.
Fed’s Language Crucial
The language in the statement and comments from Fed Chair Powell will be crucial due to the lack of economic data releases.
Solana has formed a partnership with Western Union, a leading remittance network. Institutional interest in Solana is growing, demonstrated by the Bitwise Solana Staking ETF, which recorded $56 million in trading volume on its first day.
With UK mortgage approvals for September 2025 coming in stronger than expected at 65,940, we see signs of resilience in the housing market. This could make the Bank of England more cautious about cutting rates too quickly, especially with core inflation having been sticky around the 3% mark earlier in the year. We should consider positioning for UK interest rates to remain slightly elevated, perhaps by looking at options on short-sterling futures that profit if rate cut expectations are pushed further out.
Bank of Canada’s Expected Rate Cut
The Bank of Canada is expected to cut its interest rate to 2.25% this Wednesday, a move we see as already priced into the market. The key will be the bank’s forward guidance, which we anticipate will be dovish given that Canadian GDP growth slowed last quarter and unemployment recently ticked up to 6.2%. This points toward continued weakness for the Canadian dollar, making options that bet against the CAD versus the US dollar an interesting play.
Similarly, we are anticipating a rate cut from the US Federal Reserve following their meeting this week. Because this move is widely expected, we believe market direction will depend entirely on Chair Powell’s language regarding the path forward, especially with core inflation metrics like PCE having eased to just 2.5%. A dovish tone could reduce market volatility, making it a good time to look at buying call options on the S&P 500 or selling VIX futures.
The recent Solana partnership with Western Union, combined with strong ETF inflows, signals growing institutional acceptance of the asset. We saw a similar pattern back in early 2024 when the new Bitcoin ETFs attracted over $12 billion in net flows within their first two months, driving a significant price rally. This suggests increased volatility and upward potential for SOL, making the purchase of call options or the sale of cash-secured puts viable strategies to capitalize on the momentum.
