ETC

Ethereum Classic

ETC at $8.38 is risky with oversold RSI within a downtrend; $8.34 stop is critical. Volatility is high, BTC decline is pressuring ETC – capital protection is priority.

Summary Saba Capital Income & Opportunities Fund now trades at a -13% discount to NAV, its widest since Saba took over in 2021. BRW's post-rights-offering performance has been sharply negative, with a -15% drawdown despite benign market conditions. Key portfolio drags include a large position in Ethereum Classic (down -54%) and Bumble (down -55%) since October 2025. We support the proposed merger with SABA, but urge Saba to prioritize closing BRW's discount and improving performance. Thesis Saba Capital is an asset manager we respect greatly, a manager which is known in the CEF world for their activist stance when it comes to closing out discounts to NAV in the market. We last covered one of their funds in September 2025, when we wrote about the Saba Capital Income & Opportunities Fund ( BRW ). In today's article, we are going to revisit the name and explore the potential reasons behind the disappointing performance for the CEF since the rights offering. Rights Offering Synopsis Unlike traditional mutual funds or ETFs, a closed-end fund, or CEF, issues a fixed number of shares during its initial public offering. Mutual funds and ETFs can create and redeem shares daily to meet investor demand, and thus trade very close to NAV. When a CEF wants to raise more capital, it issues more shares, and this is usually done via a rights offering. A rights offering entails a CEF giving its existing shareholders the opportunity (but not the obligation) to buy more shares. We usually see CEFs doing this when they trade at a premium to NAV. This is exactly what BRW did in September 2025: NEW YORK--(BUSINESS WIRE)--Saba Capital Income & Opportunities Fund ((NYSE: BRW)) today announced that its Board of Trustees (the “Board”) has approved the terms of the issuance of transferable rights (“Rights”) to the holders of the Fund’s common shares of beneficial interest (“Common Shares”) as of October 6, 2025 (the “Record Date”). The subscription price per Share (the “Subscription Price”) will be determined on the expiration date of the Offer, which is currently expected to be October 28, 2025. Let us look at how the CEF was trading at the time: Discount to NAV (YCharts) Before the rights offering, the CEF was trading with the lowest level in its discount in the past three years. Because of dilution issues, the discount widened immediately after the rights offering was announced. The rights offering was successful , raising over $70 million in new capital: NEW YORK-Oct 31, 2025-((BUSINESS WIRE))--Saba Capital Income & Opportunities Fund ((NYSE: BRW)) (the “Fund”), a registered closed-end management investment company listed on the New York Stock Exchange, today announced the final results of its transferable rights offer (the “Offer”) which expired on October 28, 2025 (the “Expiration Date”). The Fund will issue a total of 10,837,601 common shares of beneficial interest, without par value (each, a “Common Share”), as a result of the Offer. The final subscription price of $7.25 per Common Share was determined based on a formula equal to 87.5% of the Fund’s net asset value per Common Share at the close of trading on the New York Stock Exchange on the Expiration Date. Gross proceeds received by the Fund, before any expenses of the Offer, are expected to approximate $78.6 million. Now, rights offerings are great if the capital is used wisely - think about a rights offering right before the market tanks. A CEF is then sitting on a large pile of cash as yields move higher, thus providing dry powder for smart purchases. The market usually also sees a narrowing of the discount once the rights offering is concluded. Unfortunately not for BRW. CEF Is Now Trading At The Widest Discount To NAV Since Saba Took Over In June 2021, the fund was taken over by Saba from Voya - if we look at the discount to NAV since, we get this picture: Discount (YCharts) The CEF is now trading at an astounding -13% discount to NAV, the widest on record since Saba took over. We say this with all due respect, but Saba prides itself on activism to close out discounts in CEFs managed by others - the large move in BRW should prompt the manager to look at their own fund and try to address what the market is considering an issue with this CEF. Let us now revisit the holdings and try to understand why the market is doing this, as well as why the performance has been so poor since the rights offering: Performance (YCharts) We plotted here the CEF total return since the conclusion of the rights offering (we plotted a total return starting Nov 1, 2025). We created a generic cohort formed by the iShares Core 60/40 Balanced Allocation ETF ( AOR ), the iShares Core US Agg Fund ( AGG ), the State Street SPDR Short Term HY Fund ( SJNK ) and the S&P 500 ( SPX ) index. BRW has dropped like a stone, all while the rest of the cohort has positive total returns, with AOR the outperformer. The CEF Is Now Mired In A Drawdown Worse Than 2022 What is more shocking with BRW and its performance is the fact the CEF is currently recording a drawdown worse than what it posted in 2022: Drawdowns (Portfolio Visualizer) One of the things we liked about BRW and cited in our prior article was the low drawdown recorded in 2022. CEFs which manage their downside in bear markets are gems because they never put their investors in a position to panic. We very much like this aspect about active CEFs. BRW however is now showing a drawdown in excess of -15%, much larger than the -10% one recorded in 2022. And the markets are benign on top. We have not seen a blow-up in credit, we have not seen panic in the equity market. All market characteristics are the same, yet BRW is tanking. Not a good look. Fund Composition - Unclear If BRW Is Still Long Crypto Investors can find the Annual Report for the fund here , where they can see the largest exposures: Outright corporate bonds: 13.2%. Senior loans: 7.4%. Convertible bonds: 2%. MBS: 2%. Common stock: 16% (large position in Bumble). Closed End Funds: 14%. Private Funds: 23%. Ethereum: 7.5%. SPAC: 8%. Options: 2.5%. Cash: 3%. Other: residual. Nothing in this composition has tanked, except Ethereum and Bumble. The fund holds a crypto called "Ethereum Classic," but this one has a similar performance to ether, and has actually severely underperformed: Ethereum Classic vs Ether (Seeking Alpha) In the past six months, Ethereum Classic ( ETC-USD ) is down -54% versus just -38% for ETH-USD. Bumble ( BMBL ) is also down like a rock, over -55%. Again, these are exposures from the end of October 2025, so it is unclear how the fund looks now, but we are very bearish crypto currently, and the CEF's bet on 'Ethereum Classic' has been nothing short of disastrous, with a rough -20% underperformance versus normal Ether. Not only did they choose a poor performer, but they chose the worst of the Ethers. Not a good look. Merger On The Table Another item to note for the fund is a potential merger with its sister fund Saba Capital Income & Opportunities Fund II ( SABA ) which has a similar composition. The fund just announced this: Merger (Saba website) We are in favor of the merger since the funds are very similar, but we are not in favor of a very poor performance from this CEF. The manger needs to focus more on BRW/SABA rather than new activist actions. Conclusion BRW is a closed end fund from savvy manager, Saba Capital. The CEF did very well during the 2022 bear market, with a low drawdown of -10%. The story has been very different since the CEF announced a rights offering in September 2025. The fund is now at a -15% drawdown, with a dreadful performance since it completed its offering in October 2025. While Saba chases other managers when their CEFs show large discounts to NAV, they should focus now on BRW, which has a historic high discount to NAV of -13%. We are holders in this name, and while we are in favor of the proposed merger, we very much think the manager should re-focus towards its own funds, close out the discounts and post an acceptable performance in an otherwise benign market. Clipping high fees while posting negative total returns in a calm market is not a sustainable business model and affects the manager's reputation, in our view, as writers of this article and holders of the CEF shares.

ETC features a dominant LH/LL downtrend, $9.2000 support is critical. Breaking $10.1340 BOS brings a bullish shift, BTC downtrend creates downward pressure.

ETC volume remains low at 41.85 million dollars, weakening the rise within the downtrend. There are accumulation signals at support levels, but BTC bearishness stands out.

ETC at 9.84$ level with oversold RSI at critical threshold; breakout above 10.134$ could trigger upside, breakdown below 9.01$ could trigger downside. BTC downtrend increases altcoin risk, be prepa...

BitcoinWorld The DAO’s Remarkable Return: $220M Pledge to Fortify Ethereum Security After a Decade In a stunning development for the cryptocurrency world, The DAO—the infamous decentralized autonomous organization whose 2016 collapse fundamentally reshaped Ethereum—has announced a dramatic return. A decade after the hack that led to Ethereum’s historic hard fork, the project now pledges over $220 million to bolster the very network it once threatened. This extraordinary move, revealed by spokesperson Griff Green, aims to transform dormant assets from the past into a powerful security fund for Ethereum’s future. The initiative seeks to establish Ethereum as a resilient cornerstone of global finance. The DAO’s Return and Its $220M Security Mission According to reports from DL News, crypto entrepreneur Griff Green officially announced the return of The DAO. Significantly, the project now operates as The DAO Security Fund. This fund controls a substantial treasury of over 75,000 ETH, valued at approximately $220 million. These assets originate from a unique and poignant source: unclaimed funds belonging to investors who never recovered their Ethereum after the 2016 exploit. Consequently, the fund’s custodians have devised a forward-thinking strategy. They plan to stake this massive ETH holding to generate consistent yield. Subsequently, they will reinvest the returns directly into projects and initiatives that enhance the overall security of the Ethereum ecosystem. This plan represents a profound shift in narrative. Essentially, resources frozen in time by one of crypto’s greatest crises will now actively fund its defense. The stated goal is unambiguous. The DAO Security Fund intends to help fortify Ethereum against future threats. Moreover, it aims to support the network’s maturation into reliable, global financial infrastructure. This move has immediately sparked intense discussion across blockchain forums and social media. Many veterans recall the original saga with vivid clarity. Ethereum’s Defining Crisis: The 2016 Hack and Hard Fork To understand the magnitude of this return, one must revisit the pivotal summer of 2016. The DAO launched as a groundbreaking experiment in decentralized venture capital. It quickly raised an unprecedented 12.7 million ETH, worth about $150 million at the time. However, a critical vulnerability in its smart contract code allowed an attacker to drain roughly one-third of its funds. This event triggered a monumental crisis for the fledgling Ethereum community. The community faced a brutal dilemma. Leaders could accept the theft and allow the attacker to keep the funds, upholding the “code is law” principle. Alternatively, they could intervene by rewriting the blockchain’s history. After a fierce and divisive debate, the majority chose intervention. Therefore, in July 2016, Ethereum executed a contentious hard fork. This technical maneuver effectively reversed the hack and returned the stolen ETH to original investors. Nonetheless, a minority faction rejected this fork, arguing it violated blockchain immutability. They continued on the original chain, creating Ethereum Classic (ETC). This schism remains a foundational chapter in crypto history. The Hard Fork: Created two separate blockchains: Ethereum (ETH) and Ethereum Classic (ETC). Immutability Debate: Forced the ecosystem to confront the tension between principle and pragmatism. Investor Aftermath: Many investors received refunds, but a portion of ETH remained unclaimed in recovery contracts. From Crisis to Catalyst: Ethereum’s Post-DAO Evolution The hard fork, while controversial, ultimately allowed Ethereum to survive and thrive. The returned capital helped fuel the subsequent Initial Coin Offering (ICO) boom of 2017. Furthermore, the crisis served as a brutal but effective lesson in smart contract security. It spurred the creation of more rigorous auditing practices and formal verification tools. Over the following decade, Ethereum evolved from a simple smart contract platform into the backbone of decentralized finance (DeFi) and non-fungible tokens (NFTs). Its market capitalization soared into the hundreds of billions. Now, The DAO’s return with a security-focused mandate brings the story full circle. The funds that once caused instability are being mobilized to prevent it. Mechanics of the DAO Security Fund: Staking and Reinvestment The operational plan for The DAO Security Fund leverages Ethereum’s modern proof-of-stake consensus mechanism. Staking involves locking up ETH to help validate transactions and secure the network. In return, stakers earn rewards, typically ranging from 3-5% annually. For a fund of 75,000 ETH, this generates a substantial yearly yield—potentially thousands of ETH worth millions of dollars. Projected Annual Yield from The DAO Security Fund (Approximate) Total ETH ETH Value (Approx.) Annual Staking Reward (at 4%) Annual Value (Approx.) 75,000 ETH $220 Million 3,000 ETH $8.8 Million Griff Green’s announcement specifies that these rewards will not be distributed to individuals. Instead, they will be systematically reinvested. Potential recipients include security auditing firms, bug bounty programs, core protocol development teams, and educational initiatives. This creates a sustainable, self-funding engine for ecosystem security. Importantly, the fund’s governance will likely involve a decentralized structure, though specific details remain forthcoming. This approach aligns with the broader trend of decentralized autonomous organizations funding public goods within the crypto space. Expert Perspectives on the Fund’s Potential Impact Blockchain security experts note the strategic timing of this announcement. Ethereum continues to face sophisticated threats from hackers and exploiters. In 2023 alone, DeFi protocols lost over $1 billion to hacks and scams. A dedicated, well-funded security initiative is therefore a welcome development. Analysts suggest the fund could prioritize several key areas: Smart Contract Audits: Funding for comprehensive, multi-firm audits of major DeFi protocols. Client Diversity: Supporting the development of alternative execution and consensus clients to reduce systemic risk. Research Grants: Financing academic and practical research into novel cryptographic security solutions. Education: Creating resources to help developers write more secure code from the start. By providing non-dilutive funding, The DAO Security Fund can address market gaps that venture capital often overlooks. Its enduring, yield-generating model offers a promising template for long-term ecosystem stewardship. Conclusion The return of The DAO marks a remarkable moment of redemption and strategic foresight in cryptocurrency history. A decade after its collapse triggered Ethereum’s great schism, the project re-emerges not as a venture fund but as a guardian. Its pledge of $220 million to bolster Ethereum security represents a powerful commitment to the network’s resilience. By staking dormant assets and reinvesting the yields, The DAO Security Fund aims to create a perpetual engine for protection and innovation. This initiative underscores Ethereum’s continued evolution and the community’s capacity to transform past crises into future strength. Ultimately, the fund’s success will be measured by its tangible contributions to making the Ethereum network safer, more robust, and truly ready for global adoption. FAQs Q1: What exactly was The DAO in 2016? The DAO was a pioneering decentralized autonomous organization launched on Ethereum. It functioned as a investor-directed venture capital fund. Unfortunately, a vulnerability in its code led to a massive hack, resulting in the loss of millions of dollars worth of Ethereum and forcing a historic network split. Q2: Where is the $220 million for the new security fund coming from? The funds originate from unclaimed Ethereum that belonged to investors in the original 2016 DAO. After the hard fork refund process, a significant amount of ETH was never reclaimed. These dormant assets now form the treasury of the new DAO Security Fund. Q3: How will the DAO Security Fund actually improve Ethereum’s security? The fund plans to stake its 75,000 ETH to earn rewards. It will then reinvest those rewards (estimated at several million dollars annually) into security-focused initiatives. This includes funding for audits, bug bounties, core development, client diversity, and security research. Q4: What is the difference between Ethereum and Ethereum Classic? Ethereum (ETH) is the blockchain that resulted from the 2016 hard fork, which reversed the DAO hack. Ethereum Classic (ETC) is the original chain that continued without the fork, upholding the principle of “code is law.” They are now two separate cryptocurrencies with independent development paths. Q5: Who is managing the DAO Security Fund and how is it governed? Crypto entrepreneur Griff Green is the official spokesperson who announced the fund. While specific governance details are still emerging, such funds typically use a decentralized governance model. This likely involves token-based voting by fund participants or a designated multi-signature council of trusted community figures to decide on funding allocations. This post The DAO’s Remarkable Return: $220M Pledge to Fortify Ethereum Security After a Decade first appeared on BitcoinWorld .

Nearly a decade after one of crypto’s most defining crises, unclaimed Ether from the 2016 hack of The DAO is being repurposed to support Ethereum’s security, reviving a project whose collapse once threatened the network’s survival. This time, its backers say, the goal is not experimentation but strengthening Ethereum’s defenses using resources left behind by the event that first exposed its vulnerabilities. This week, Ethereum developer and longtime communal member Griff Green announced that hundreds of millions of dollars in Ether that went unclaimed following The DAO hack will be initiated into a new security-centered funding initiative. Source: Unchained In an appearance on the Unchained podcast, Green asserted that huge amounts of ETH are trapped in contracts that were made to compensate victims of the exploit, but they never actually claimed them. Instead, he said, that money will now be used to generate a staking income and fund security work throughout the Ethereum ecosystem. Inside the DAO Hack and Ethereum’s Historic Fork In early 2016, the DAO was initiated as a decentralized venture capital, which permitted tokenholders to make decisions on a shared basis about the allocation of capital. It collected over $150 million in ETH, the biggest crowdfunding project at the time. In June 2016, an attacker used a vulnerability in its smart contracts, called a reentrancy vulnerability , to empty its smart contracts of around 3.6 million ETH into a second contract. The hack caused an existential crisis in Ethereum and a controversial hard fork that refunded most of the stolen money to the investors. That ruling divided the community and formed two blockchains: Ethereum and Ethereum Classic. While the fork restored the majority of funds, the recovery process was not clean. Green said around $6 million was set aside to handle complex cases involving investors who were unable to claim their ETH through standard mechanisms. He joined a multisignature wallet established to manage those cases. Over time, more than 80% of that balance was claimed, but the remainder, now worth around $200 million at current prices, was left untouched. DAO Hack Era Funds Revived for Network Security According to Green, those unclaimed funds will form the backbone of what is being called The DAO Security Fund. The plan involves roughly 70,500 ETH held in an ExtraBalance Withdrawal contract, along with about 4,600 ETH and DAO tokens from the original curator multisig. The capital will be staked, with yield directed toward funding security efforts rather than distributed as a one-time payout. The initiative is being coordinated alongside the Ethereum Foundation and aligns with its broader “ Trillion Dollar Security” push. Green said the fund will operate using decentralized allocation methods rather than top-down grants. Proposed mechanisms include quadratic funding, retroactive public goods funding, ranked-choice voting, and other DAO-style distribution models. Oversight will involve well-known figures from the Ethereum security community, including Vitalik Buterin, MetaMask co-founder Taylor Monahan, Jordi Baylina, and members of the SEAL 911 response group. Giveth, a public goods funding platform co-founded by Green, is also expected to play a role in administering allocations. Ethereum’s Long Road From Early Hacks to Billion-Dollar DAOs The move comes as Ethereum security has become a central concern for both developers and institutions. The DAO hack itself helped give rise to the modern smart contract audit industry , which barely existed before 2016. Ethereum Smart Contract Framework Updated to Combat Security Concerns Ethereum sees significant exchange outflows as investors potentially eye long-term holds. #CryptoNews #news https://t.co/39LzGh5vMy — Cryptonews.com (@cryptonews) December 18, 2023 Since then, Ethereum has grown into the backbone of decentralized finance, NFTs, and tokenized assets, with billions of dollars regularly secured by smart contracts. The revival of the DAO name also reflects how far decentralized governance has evolved since its early days. By 2025, decentralized organizations collectively managed more than $24 billion in treasury assets, with major protocols like Uniswap, Arbitrum, and Optimism overseeing billion-dollar balances. The post Ethereum’s $100M Ghost Fund Rises From the 2016 DAO Collapse — This Time Different? appeared first on Cryptonews .

The DAO, the infamous experiment that nearly broke Ethereum in 2016 and led to the creation of the Ethereum Classic fork, is quietly staging a return — this time as a $220 million security fund aimed at hardening the network it once imperiled. Nearly a decade after the original hack that forced a historic hard

Vitalik Buterin and the Ethereum Foundation may be in talks to bring back the DAO after nearly a decade. The entity may bring an extra layer of governance to Ethereum. The Ethereum DAO is coming back, with support from Vitalik Buterin and the Ethereum Foundation. The governance entity will bring another layer to Ethereum, and will have to navigate a more mature crypto market a decade after dissolving. The DAO contract was first deployed in April 2016. The DAO was the original organization based on ETH ownership. Now, the entity will come back as a fund with 75,000 ETH. TheDAO is back. BULLISH A decade later, we’re opening a new chapter. TheDAO Security Fund: activating 75,000+ ETH to strengthen Ethereum security. https://t.co/VV3cH313TE pic.twitter.com/1Sf3g7xUWv — thedao.fund (@thedaofund) January 29, 2026 The DAO gave the original model for similar organizations, but it was extremely short-lived. The governance body dissolved after losing 3.6M ETH in a hack. The funds were later returned in a highly disputed hard fork, which, for some, was damaging to the ‘code is law’ ethos of the early Ethereum community. After the dissolution of the DAO, the hard fork created Ethereum Classic, which still holds the records of the stolen 3.6M coins. However, ETC is much less valuable and influential compared to ETH. Vitalik Buterin brings back the DAO with $220M security fund The DAO will be brought back as an entity with the help of the Ethereum Foundation and Vitalik Buterin. In addition to its governance role, the organization will have a $220M security fund for unexpected circumstances. The fund aims to improve Ethereum security at a stage where smart contract exploits are still a regular event. The funds and ETH available will be much lower compared to the original DAO, which held over 12.5M ETH. The new DAO will use unclaimed remaining ETH from the original organization to boost security and achieve a form of passive income. The proposal arrives at a time when DAOs are rethinking their structure and becoming more centralized . The goal of the new DAO will be to improve governance infrastructure and avoid the mistakes of the original organization. Ethereum DAO to be revived with the efforts of Griff Green The renewed DAO will be relaunched with the efforts of Griff Green , the co-founder of multiple Ethereum ecosystem projects. Green called the DAO a new era for Ethereum, extending the focus on network security and protections against exploits. The DAO will distribute funds to security grants and build reserves for its future operations, reported the Unchained podcast. The 75,000 ETH come from funds that were not claimed following the dissolution of the initial DAO. Of those funds, $13.5M will be directly allocated to security project grants, governed by DAO voting. The remaining reserve of 69,420 ETH will be staked on the Beacon chain smart contract, with the potential to further finance security efforts. Based on passive income staking rewards, the DAO may expect up to $8M annually from block producer and fee rewards. The smartest crypto minds already read our newsletter. Want in? Join them .