New Crypto Coin on the Horizon: Faraday C10 ETF Plans

Faraday Future Intelligent Electric Inc. emerged as an unlikely player in the cryptocurrency space with the announcement of its C10 ETF plan that would potentially create a token or digital asset that could be the next big crypto coin. The ETF would prove to be a textbook pivot for the Nasdaq-listed electric vehicle manufacturer by bringing together traditional corporate finance and digital assets as an endeavor to create value for its shareholders. C10's ETF would include a market-cap weighted index of the largest cryptocurrencies, in addition to a treasury product that holds a significant allocation of said assets. Investors looking to take note of corporations beginning to adopt cryptocurrency will find Faraday's proposal to be an interesting vehicle for a corporation's asset manager to employ new blockchain strategies to find new potential revenue streams. The plans were revealed in the summer of 2025 and Faraday plans to obtain its first round of capital raising between $500 million-$1 billion devoted to cryptocurrencies, contingent on financing provisions.

Faraday is launching its initiative at a time where institutions are adopting cryptocurrency for alternative investment at a record pace, at a time when global prices of digital assets are in the trillions. Faraday's interest in crypto will certainly spur other corporations to sell into the market since it is a compliant model for treasury management for speculative assets. The thought of having a token version of the treasury or an exchange-traded fund that would be tied to the C10, could potentially create the next big crypto coin, and the first product to provide indirect exposure to crypto without the ownership of the digital tokens. Early front-running of the Faraday premier has been promising, with a large increase in its stock as compared to peer companies. Before proceeding with this investment opportunity, investors should investigate the company’s financial overall situation, as the feasibility of the C10 plans relies on capital being accessible. After analyzing Faraday’s finances, consider taking the following concrete actions that would lead to a deeper evaluation of Faraday.

  • Find new SEC filings that give details about their financing approaches and any treasury allocation.
  • Compare this analysis to the Corporate Crypto Treasuries page.
  • Track the stock price with similar crypto market trends.

Econometric financial models would also give you a benchmarking position of potential returns in different market conditions.

These steps would create a logical approach to judge feasibility of Faraday.

Faraday Future’s Move to Crypto

Faraday Future’s basis of adopting crypto into their business strategy model is a critical strategy change to create greater liquidity and created funding sources on top of their core electric vehicle hardware business. In August 2025, Faraday announced the EAI + Crypto dual-flywheel approach of electric AI and digital assets, to unlock synergetic growth. It is important to highlight that not only is this opportunistic pivot in the crypto market; with greater pretend ties into their bigger master plan of connecting traditional industry with blockchain technology. The C10 plans will certainly form the main anchor for ebights for the company’s dual-flywheel strategy, starting with C10 Index value as a marker for the tokenized top ten cryptocurrency market capitalizations (excluding stable coins).

The Index Value will be starting at 1000 value and will be reset each month based on monthly activity matters. If any one asset breaks through the 50% adjustment netting over the month, the allocation in this asset will connected back to 50% allocation ratio. Set up properly, this will provide a reasonable degree of diversification to help offset the volatility of some of the assets, especially bitcoin.

Faraday's shift provides a potential solution for addressing funding issues in the EV space, where capital-intensive R&D and manufacturing can take years, and typically require innovative funding solutions. They plan to allocate treasury funds to crypto for a reasonable return of capital intended to subsidize R&D and production costs. This action has drawn comparison to MicroStrategy's decision to adopt Bitcoin as a treasury reserve asset; however, the latter is a more diversified basket approach at this juncture.  Investors interested in this shift should focus on the changes to Faraday's risk profile per the adoption of anything to do with crypto, as the volatility of crypto could influence corporate governance functions. The C10 plans are structured in that other management teams separate from Faraday will act as a governance team that independently manages the C10 Index project allocated to pseudo crypto-assets by Faraday. For further reading on corporate crypto-adoption, I would refer to MicroStrategy's treasury strategy overview and compare with Faraday's approach and CPA-of-theory funding process. After filtering the investment-relevant risks on the previously mentioned risks of crypto and the market, utilize these bulleted indicators to monitor Faraday's progress:

  • Set calendar alerts for quarterly earnings announcements and price updates related to the company’s treasury accounts, if applicable.
  • Future updated announcements of new executive-level partnerships alternating company directions and consideration relative to the company’s treasury plans,
  • Watching with filters the correlation between the daily price development of crypto, compared to Faraday’s stock price.
  • Analyze the rank and rates, by research analyst firm of the buy versus sell proposition relative to the company's developments that indicate treasury investments with crypto.

Each indicator is designed to keep you aware of announcements that could create investment opportunities.

C10 Index: A Balanced Crypto Benchmark

The C10 Index is defined as the reference crypto plan and basis for Faraday’s thought. It provides a balanced benchmark for tracking and defining major digital assets. C10 is focused on market cap weight, with a 50% capThis benchmark applies particularly well to an investor who wants diversified exposure without managing all the individual assets. The index employs a monthly rebalancing methodology which allows it to remain current with changes in the markets while still achieving a diverse level of exposure. This method also seeks to capture any potential upside from emerging coins that enter the top 10 which could outperform without covering a single asset. Faraday's use of the index for treasury clearly shows confidence in the recommended backward looking approach to weight any on-going allocation. The C10 index can stand in for overall crypto performance, while particularly useful as a proxy for return to the larger industry and the next big coin that has some correlation to a basket approach. To my earlier idea on benchmarking, I would recommend the CoinMarketCap crypto indices page (located here) as a tracking tool comparable to the C10 index. The C10 index excludes stablecoins and like Faraday's vision remains focused on growth-oriented assets for a directional investment strategy. 

You can use the C10 Index for your own purposes with the following numbered suggestions. 

  1. Monitor real time price at FF.com as identified in updates above.
  2. Track relative price against another index.
  3. Draw on historical price to back-test portfolio strategies.
  4. Establish an on-going personal allocation or monthly based on the index rather than discrete attributions or supply/demand.

This seems pretty simple to incorporate the index as part of your approach.

Monthly Rebalancing, the Implicit Marker of Market

The C10 Index employs monthly rebalancing to reflect existing market caps thus keeping the benchmark market relevant. The potential implication for impact in these markets could be liquidity for the basket of underlying assets. Month over month rebalances trigger portfolio adjusted buys/sells proportionate to the weights of the respective markets, that are sequentially driven by a relative factor, that may or may not impact those underlying price. Potentially indicative to future price, yet almost always dependent upon ongoing systematic applied methodology, should provide other ongoing clarity. Likely as it relates to an active treasury for Faraday it could simply establish reduced holdings or on-going portfolio weightings for the index, where the opportunity may exists to trader on shares in the top 10 of the index, as well as diminished weight on the emerging assets on reflections of study based use of this index (and resp).

Rebalance also reflects restructuring of weight as exogenous market condition occur, referencing from above, as assets build weight they generate more relative weight in returns against the value criteria referenced earlier. Ideally a friendlier way to identify that change in trends.This interaction is valuable for investors looking to find the next large-cap crypto coin as index inclusion would increase its visibility. This structure has the virtue of transparency, and you can be informed about the events and prepare for any potential effects.

Now that you have recognized rebalancing, consider these bullets when applying it to your approach:

  • Look for volume increases when there is a rebalancing, to take advantage of a trading play.
  • Leverage rebalance data to find the components of the index that might being undervalued.
  • Review adjustments to market capitalization domination over time if applicable.
  • Include in evaluations of ETF to align with conclusions and plans.

These utilize the construct of the rebalancing.

C10 Treasury: Active and Passive Allocation Model

The C10 Treasury product uses an allocation model that is a hybrid of both active management and passive as it aims to be generally 80% passive tracking the C10 Index and 20% active management for opportunistic purposes. This model adds a level of flexibility to the structure, which allows the treasury to take advantage and effectively execute on providing returns related to market inefficiencies while maintaining diversification. The passive management provides consistency in growing to the assets in the index, while the active takes advantage of strategies such as correlation trades and hedges to generate yield.

The treasury's initial target for investments will be $500 million to $1 billion and will start with $30 million (financing depending). The tiered approach will allow for scaling to initially minimize funding risks through various phases. Once again, for enhanced security, the treasury will be managed separately by Qualigen Therapeutics, Inc., adding additional experience to custody and risk controls in a compliant manner. Once again, staking will also be included in summative if it involved yield-potential growth included for compounding returns and returns related to this with time. The C10 Treasury could be a basis for another large-scale crypto coin through tokenized contribution or use cases.

For additional information on the core treasury management (including discussions of similar perspectives) in relation to cryptocurrency, CoinDesk has a guide for corporate treasury management.

In analyzing the differences in relation to the 10 certain impact metrics, you can use this listed assessment rubric:

  1. Determine projected yields from staking on the passive side of the allocation.
  2. Conduct simulations on active strategies you have created with actual market data.
  3. Compare these results with performance from just pure passive indices.
  4. Include in your projections the management fees to give a view on returns net of fees.

This method allows for comprehensive evaluation.

Yield Generation Techniques in the Treasury

Yield generation in the C10 Treasury relies on staking eligible assets such as Ethereum for passive income, expecting an annual return of 4-8%, depending on network rates and utilization. The active side is the potential of lending on lending protocols for additional yield that could be as high as 15% on stable pairs. While staking and lending would lead to diversified income streams from assets, you will still rely on appreciation of the asset prices to create total return.

As the treasury invests in only the most liquid coins in the segment, you can be assured continuous staking rewards, and the automated tools will make it easy to participate. This fund can reduce returns from yield compression in saturated yield markets, and help find alpha yield through selective opportunities.

After researching these strategies, consider implementing the following bulleted optimization recommendations:

  • Make sure you are always participating in the highest APY pools with low volatility.
  • Automate the process in the passive allocation to compound your yields.
  • Hedge your staking yield risks in the active allocation with optionality in the active allocation.
  • Monitor the networks for upgrades that could lead to better yield opportunities.

These recommendations maximize yield generation.

Faraday's Roadmap for Implementation in C10

The Faraday Roadmap for C10 implementation is to create an index first and build management of the treasury with the end goal of being fully allocated by mid-2026. Key milestones to see where we are in the roadmap include a complete financing plan to buy the first purchases, and integrating the spin-off, with the expectation of being completed by Q1 2026. This roadmap gives us time to integrate the methodology into the process of rolling out a potential product being enhanced by the future active strategy at some point and eventually following the passive holdings.

The roadmap to the SEC also includes application filings for an ETF in late 2025, with a plan for approval in 2026. Having a roadmap plan along with varying degrees of regular reporting to the SEC allows for a de-risk approach to product management. The subsequent major aspect of the crypto coin is the tokenization timelines accompanying the spin-off. To follow these timelines, it is recommended you participate in the below numbered methods of monitoring:

  1. Enroll in Faraday’s investor relations - you will receive periodic emails sharing market updates.
  2. Consult the SEC EDGAR for filing submissions.
  3. Analyze treasury purchases on blockchain explorers.
  4. Attend each quarter’s earnings calls for updates, when necessary.

Following these strategies will keep you informed.

Milestones and Timeline for Launching ETF

There are timelines, which include milestones for launching C10 ETF. The C10 ETF has a milestone to submit S-1 forms, but this will happen December 2025 - a milestone and timeline to have reviewer fields complete in by Q1 2026. The timeline assumes 6-9 months of submissions stamped with a date - based on similar products launched. The actual milestones are scaling the treasury size and performing compliance audits with appropriate timing.

There is some speculation the launch ETF tracking could occur at the same time as the remaining tokenization portion execution for the spin-off. One or both processes could enable some uncertainty to wash; therefore order is/ can be good for the growth of these process and minting methodology when launching a mission of ETF tracking in C10.

Once milestones are aligned, utilize the below bulleted techniques to monitor:

  • Set calendar reminders for filing timelines.
  • Analyze peer ETF filing approvals for their estimated timelines.
  • Examine the amends made from those filings when applicable.
  • Be prepared to trade once approved.

These techniques will enable comprehensive tracking of milestones.

Potential Returns and Data Points for Each Investor

Potential returns, when relative to C10, will be connected to the pricing of the market of cryptocurrencies, with backtested data indicating a performance of 1,891% over a 5-year horizon.

There are also reasonable expense ratio metrics for an ETF package – with expense ratios of 0.5-1% that shall direct competitive expense ratios.

Potential of the Next Big Crypto Coin

The next-big crypto coin potential adds speculative upside, contingent on successful tokenization. With the scenario, returns can be estimated through these numbered calculation tools:

  1. Entering historical index data into spreadsheet models
  2. Including active management premium of 5-10%
  3. Factoring in fees and taxation with net calculations
  4. Running scenarios through Monte Carlo simulation methods.

This toolset will prepare you for realistic rates of return.

Benchmarking Against Traditional ETFs

When compared to traditional ETF benchmarks, the C10 exhibits a similar volatility factor, paired with higher growth - crypto outpaced stocks during bull cycles. As an example, when benchmarking against S&P 500 ETFs, if the C10 could potentially exhibit a CAGR of 70%, the S&P 500 CAGR averages about 10%. This benchmarking example underlines The appeal to risk-seeking investors.

The diversified exposure (across coins) of the C10 greatly reduces any one-asset risk that exists in Bitcoin ETF holdings. The ETF Database's crypto category provides an ideality for benchmarking.

Challenges & Risks of Faraday's Crypto Plans

The challenges that Faraday faces in implementing their planned treasury to crypto asset conversions includes receiving financing to build their treasury to good size - their treasur with an initial investments of $30 million has a lot leverage as a company, especially within existing financial constrains. The risk associated with crypto volatility is very clear. Crypto's drawdowns can easily undercut or destroy returns. Another risk includes obtaining the regulatory approval required for an ETF launch - this regulation can cause significant delays in any launch plans or requirements.

The active allocation also brings forth management risk where a poor allocation could easily underperform, compared to a passive strategy. Reuters provides coverage around Faraday challenges to bring some context around the financial markets that are currently influencing these issues.

In terms of challenges, these numbered mitigation strategies to address some of these risks:

  1. Ensure personal holdings are diversified beyond Faraday exposure
  2. Maintain awareness of news surrounding financing possibilities - execution risk
  3. Know your regulatory environments and discuss potential risk
  4. Be sure to consider the required volatility item by using hedging tools

That is your risk mitigation strategy which should help on the down too.

Volatility Management of the C10 Treasury

The C10 treasury is well structure for volatility - hedging will take place in the active segment of the treasury while passive segments are structured with decent diversification. This will help cushion swing impact, while backtests indicated a drawdown of 76.5%. The treasury will also not be adjusted without updates to the portfolio given a dynamic rebalancing strategy exists to encourage a reduction in exposure in downturns, for example.

The structure of the treasury allows for the fluidity of reallocation to stablecoin in extreme volatility - capital preservation is principle. This management is critical to maintaining consist performance.

After ungaging volatility, consideration can be shown as below by numbered techniques to use:

  • Options can be used for downside protection within the active portion of the portfolio.
  • Rebalances will be established based upon time taking effect - threshold-based rebalances.
  • A portion of the treasury can and should be stable assets as liquidity and capital helps hedge volatility.
  • Resourcing previous volatility provides further insight for scenario building.

These technique will ensure additional stability of the treasury.

Conclusion

Faraday's C10 ETF plans are differentiated as a forward-thinking plan that seeks to bring to market the next big crypto coin through appropriately designed treasury tokenization. The plan enhances the traditional index format plus alternate active management and the products tangible socially compelling attraction. In addition, this approach allows for additional hybrid management to enable investors obtain exposure without investing directly with the market risk. The spin-off and ETF structure provides additional ways to manage regulatory issues for the investor's and firm's protection and access for retail and institutional participants.

As Faraday scales its treasury, the potential for sustainable and reduced risk is enhanced, with maturing crypto markets as example.

Further reach could be noted as this venture will straddle forward-looking crypto and elevated position use by industries, as an example, establishing EV companies like Faraday as a player with opportunity to utilize crypto assets as MMA for strategic variables. Lessons learned and competition will occur in the future, since issues of financing and crypto drag of volatility are ever-present. Overall, I hope the proposed structure will mitigate the risk associated with a crypto strategy.

Investors aligned with this vision may have compelling idea for improved diversification and yield - the ETF approval marks a substantial milestone.

In summary, Faraday's plans to codify corporate engagement - balance and yield generation will have lasting appeal future advantages to the investor most if denture loses instances posed not occur this, plus the significance of engaging corporate expansion process will feel significant value. This could redefine corporate structure and next generation of crypto engagement while achieving other goals - we will see can happen of faraday achieve these plans in arrival 2025.

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Pub: 30 Oct 2025 09:39 UTC

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