2024-11-20 07:28

The bullish sentiment in the IBIT options is consistent with the noticeable activity in the $200,000 bitcoin call trading on Deribit. The $100 IBIT call option saw a significant volume on Day One, signaling expectations that prices could double to $100 in the coming months. The bullish sentiment is consistent with the noticeable activity in the $200,000 bitcoin call trading on Deribit. Options tied to BlackRock's spot bitcoin (BTC) exchange-traded fund (ETF) debuted with a bang on Tuesday, registering a staggering first-day trading volume of $1.9 billion. Most activity was concentrated in call options, representing a bullish bias, with some traders betting on doubling the ETF price to at least $100. The Nasdaq-listed ETF closed Tuesday at $52.70. The $100 strike call option saw a trading volume of over 32,000 contracts, according to data tracked by analytics firm ConvexValue. Most of the value happened in the Dec. 12 expiry, which was also the most popular settlement overall, accounting for 40% of the total trading volume of 354,000 contracts. "It’s pretty interesting to see 'professionals' degen into $100 strikes (this effectively means a doubling of BTC prices given IBIT trades near $50)," Samneet Chepal, crypto quant researcher, Samneet Chepal, said on X. The notable uptake for the $100 IBIT call is consistent with activity on offshore crypto options exchange Deribit, where $381 million in notional open interest is locked in the $200,000 strike bitcoin call. Assuming those buyers are investors and not market makers, it's safe to say that they are bracing up for the doubling of the spot price. Note that Tuesday's most traded IBIT option was the call at the $55 strike, and the overall volume of call options was four times higher than that of put options. A call option gives the holder the right but not the obligation to purchase the underlying asset at a predetermined price on or before a specific date. A call buyer is implicitly bullish on the market, looking to profit from or protect the short spot/futures market position from an expected price surge in the underlying asset. According to Deribit, the stateside demand for calls and the resulting "trend trading" by market makers to hedge their books could set the stage for a gamma squeeze higher in BTC's price. "U.S. institutions and retail who can't trade on Deribit, the largest crypto options market, will now be able to enter the space and create more open interest around certain price levels, which can further trigger volatility and gamma squeezes in addition to Deribit," Luuk Strijers, Deribit's chief executive officer said in an email, echoing opinion of other analysts. https://www.coindesk.com/markets/2024/11/20/pro-crypto-traders-are-leveraging-ibit-options-to-bet-on-blackrocks-bitcoin-etf-doubling-to-100-observers/

2024-11-20 05:40

Announcement comes shortly after the exchange launched its own ‘wrapped’ bitcoin on Base – cbBTC Coinbase has begun phasing out wBTC, and will suspend trading on Dec. 19 citing "listing standards". This move comes after Coinbase has launched a competitor to wBTC called cbBTC. Coinbase (COIN) says it is in the process of removing Wrapped Bitcoin (wBTC) from the exchange citing its “listing standards.” wBTC is a token that represents bitcoin on ethereum and other blockchains. While wBTC is offered by BitGo, other similar products have the same concept: custodied crypto on one end, and a representation of the token on its non-native blockchain on the other. This move came shortly after Coinbase announced its own version of wrapped bitcoin called cbBTC, which exists on the Base blockchain. Recently wBTC has come under a considerable amount of scrutiny after BitGo announced it was entering into a joint venture with BiT Global, a custodian partially owned by Justin Sun. While many in the crypto community expressed concerns about Sun’s involvement, BitGo CEO Mike Belshe was quick to point out that Sun has minimal operational control over BiT Global – the custodian’s legal structure means that no individual has more than 20% ownership – and the keys are split between multiple parties. In an earlier interview with CoinDesk, BitGo’s Belshe said that critics of the BitGo-BiT Global tie-up weren’t being “intellectually honest”; promoting their own project’s interests over thoughtful criticism of wBTC. "We are a fiduciary today, and it’s our duty to ensure that the assets are protected, regardless of where they are held," he said, while taking aim at Coinbase’s ‘cbBTC’ for being, in his opinion, too centralized. "Of course, the central bank, CB, Coinbase, they also would love to have Wrapped Bitcoin under their belt," he said. "There is no doubt that the model that BitGo is proposing, how we're going to store the keys, is far superior to anything that Coinbase can or would concoct." Belshe believes this potential level of centralization is antithetical to decentralized finance (DeFi). “If the DeFi community picks central bank Coinbase as the ultimate steward, then I think all DeFi hope should be lost,” he said. https://www.coindesk.com/tech/2024/11/20/coinbase-delists-wrapped-bitcoin-wbtc-citing-listing-concerns/

2024-11-20 05:14

IBIT options went live Tuesday in a first, a move that market participants widely expect to draw more institutional interest in bitcoin (BTC). Here’s how they could impact the market. On their first trading day, IBIT options amassed nearly $2 billion in notional exposure, an unusual volume for new options. More call options were traded compared to puts (4.4:1 ratio), likely contributing to BTC’s new record highs. Introducing IBIT options is expected to increase institutional involvement in bitcoin, as options provide new avenues for investment and risk management strategies. Options trading on IBIT can lead to shifts in market structure by enhancing liquidity, offering hedging tools, and allowing for speculation on BTC’s price movements, thus influencing market dynamics. Options tied to BlackRock’s bitcoin exchange-traded fund IBIT racked up nearly $2 billion in notional exposure on their debut, a feat some analysts term “unheard of” for those metrics. “1st day of options is just shy of $1.9 billion in notional exposure traded via 354k contracts. 289k were Calls & 65k were Puts,” Bloomberg Intelligence analyst James Seyffart said in an X post. “That's a ratio of 4.4:1.” “These options were almost certainly part of the move to the new #Bitcoin all time highs today,” Seyffart added, pointing to bitcoin move to new record nights in late U.S. hours Tuesday. IBIT options went live Tuesday in a first, a move that market participants widely expect to draw more institutional interest in bitcoin (BTC). In September, the U.S. SEC approved options for several of the 11 spot bitcoin ETFs on several exchanges, and more options products are expected to be available in the coming days. Unwrapping Options Options are financial derivatives that provide the buyer the right, but not the obligation, to buy (in the case of a call option) or sell (in the case of a put option) an underlying asset at a specified price on or before a certain date. A call option gives the holder the right to purchase an asset at a specific price, known as the strike price, within a set time frame. A put option gives the holder the right to sell at the strike price within the specified period. Call options are purchased when expecting price increases; if correct, traders can exercise the option to buy at the strike price or sell it for profit. Put options serve as insurance against price drops or for betting on declines, enabling selling at the strike price if it exceeds the market value. How IBIT Options Could Change BTC market structure Using options can open up a plethora of trading strategies for professional investors — which may bring more liquidity to the market and impact the market structure. Institutions that are particularly averse to trading on offshore unregulated avenues can use IBIT options to hedge bullish exposure while selling calls to generate additional income. Speculators can use IBIT call and put options to benefit from price swings, while bypassing the hassles of owning the underlying asset. Traders can also sell options and earn premiums, a passive income, which is particularly appealing in a stable or slowly declining market where the options might expire worthless. Such strategies are already popular among traders over leading options exchange Deribit. Speaking of the impact on the market structure, some analysts are of the opinion that the expected overwriting of IBIT calls would dampen the implied volatility over the long term. In the short term, especially during a bull run, investor demand for calls could set the stage for a GameStop-like gamma squeeze. Market structure colloquially describes how trading involves participants like investors and traders, how assets are bought or sold, and the regulations around specific asset classes. Options give more ways to trade, making it easier for professional investors to buy or sell without big price changes. Tracking options data could show what traders think will happen to prices, helping everyone understand market expectations. Near expiry dates, options can also predict and cause price swings — creating a window for short-term trading. https://www.coindesk.com/markets/2024/11/20/bitcoin-etf-options-attract-2b-on-day-one-shifting-btcs-market-structure/

2024-11-19 22:26

A former SEC attorney who now represents blockchain companies, Goody Guillén would be "an instant change maker," said one token project founder. The Trump transition team is considering Teresa Goody Guillén, partner at law firm BakerHostetler and co-lead of its blockchain team, among several candidates to become the next SEC chair, industry sources said. Goody Guillén is a seasoned securities lawyer with experience serving the SEC and opposing the agency on behalf of blockchain companies and traditional businesses. President-elect Trump is seeking a pro-crypto non-bureaucrat to drastically overhaul the SEC with light-touch regulation, the sources said. Teresa Goody Guillén, a veteran of the U.S. Securities and Exchange Commission, is among the candidates president-elect Donald Trump is considering to lead the agency, people familiar with the situation said. Goody Guillén is a partner at law firm BakerHostetler and co-lead of its blockchain practice. Crypto companies are privately advocating for her to head the regulator based on her experience serving the SEC and opposing the agency on behalf of blockchain companies and traditional Wall Street firms. "She is the best candidate of all the people that are currently being opined on,” said Brendan Playford, co-founder of Masa, a token-powered decentralized data provider for AI companies. Goody Guillén would make immediate changes to the SEC, he said. “She has a clear understanding of the laws, has a clear understanding of the way the SEC works,” Playford said. “We would just have an instant change maker that would dramatically transform the industry with someone that's very pro-crypto.” Goody Guillén declined to comment for this story. A request for comment from Trump transition team spokesperson Karoline Leavitt went unanswered. Crypto professionals have the Trump team's ear in the selection process following a campaign in which the industry spent over $130 million on the former president and other Republican candidates. Coinbase CEO Brian Armstrong reportedly met privately with Trump to discuss personnel appointments. Goody Guillén enters a competitive shortlist to replace SEC chair Gary Gensler, who began referring to his job in the past tense last week and is expected to step down before Trump’s inauguration on January 20. SEC chairs customarily resign during the transition to a new administration. On the campaign trail, Trump vowed to “fire” Gensler on the first day of his presidency. Other SEC chair candidates reportedly include Willkie Farr & Gallagher LLP partner Robert Stebbins, Paul Hastings partner Brad Bondi, former SEC commissioner Paul Atkins, Robinhood chief legal officer Dan Gallagher, and former acting Comptroller of the Currency Brian Brooks. 'Tough as hell' According to her LinkedIn page, Goody Guillén was an attorney for the Office of the General Counsel at the SEC from 2009 to 2011, when Mary Shapiro became the first woman to head the agency. Later, as chief operating officer and managing director at Kalorama Partners, Goody Guillén worked with former SEC chair Harvey Pitt advising clients against SEC enforcement cases.. The Trump transition team is seeking an overhaul of the SEC and looking for a pro-business non-bureaucrat who will unwind the expanded agency created under Gensler’s tenure, and end the practice of "regulation by enforcement action," according to three people with knowledge of the matter. In terms of crypto, the Trump team wants someone who understands the industry and will exercise restraint when it comes to applying securities laws to digital assets until clear legislation is passed by Congress, the sources said, Peers described Goody Guillén as embodying these principles. “She is understated … but she's tough as hell,” said Charley Cooper, senior advisor at digital asset solutions provider R3 and a former chief operating officer at the U.S. Commodity Futures Trading Commission. “She would govern based on substantive understanding of securities laws as they apply to the traditional markets, as well as to crypto, and she will dramatically roll back the prior administration's default to regulating through enforcement and arbitrarily reading into statutes written 90 years ago." Nicole Trudeau, general counsel for investment firm Wave Digital Assets, has worked with Goody Guillén on a number of crypto-related bankruptcies and SEC receiverships. “Teresa is a true trailblazer in the crypto space, bringing the expertise and vision needed to lead the SEC and drive the growth of U.S. crypto and capital markets,” said Trudeau. “She embodies everything President Trump envisioned for the sector.” Wasting no time Unlike the first Trump administration, this second term selection process is rapid and organized, Washington insiders said. An SEC chair is expected to be chosen before Thanksgiving. Trump has named his transition team co-chair, Cantor Fitzgerald CEO Howard Lutnick, as commerce secretary. Earlier, Lutnick was fiercely jockeying to become treasury secretary, which now looks to be going to Key Square Group founder Scott Bessent, Apollo Global Management CEO Mark Rowan or former Federal Reserve governor Kevin Warsh, who are top contenders. Trump has already announced several distinctive and controversial picks, including U.S. Rep. Matt Gaetz (R-Fla.) for attorney general, which will likely meet resistance from Congress due to sex trafficking allegations. Former Fox News host Pete Hegseth has been tapped for Defense secretary, former U.S. Rep. Tulsi Gabbard (D-Hi.) for director of national intelligence, and Robert F. Kennedy Jr. for Health and Human Services secretary. https://www.coindesk.com/policy/2024/11/19/trump-said-to-consider-crypto-lawyer-teresa-goody-guillen-to-lead-sec/

2024-11-19 20:17

The YouTube competitor had about $131 million of cash and cash equivalents on its balance sheet as of the end of the third quarter. Video-sharing platform Rumble (RUM) is moving higher during afternoon U.S. trading hours on Tuesday after CEO Chris Pavlovski suggested an interest in adopting a bitcoin (BTC) treasury strategy. "Should Rumble add Bitcoin to its balance sheet," asked Pavlovski on X. By itself, the question might have been considered little more than a playful tease, but it quickly drew a response from MicroStrategy's (MSTR) Michael Saylor, who pioneered corporate bitcoin adoption. "Yes," responded Saylor. "I would be happy to discuss why and how with you." "DM'ing you now," responded Pavlovski. Prior to the exchange, Rumble's stock had been trading modestly lower on the session, but shares quickly rose to about a 7% gain. At press time, the stock had pulled back somewhat, up 3.3% for the day. The price of bitcoin on Tuesday notched a new record high, crossing the $94,000 level for the first time — at least in part amid excitement over growing corporate adoption. A competitor to giant YouTube in the video-sharing business, Rumble posted $25.1 million in revenue in the third quarter, up 39% from year-ago levels. Its balance sheet showed $130.8 million of cash and cash equivalents. The stock is higher by 26% year-to-date and the company sports a current market cap of roughly $1.6 billion. https://www.coindesk.com/markets/2024/11/19/rumble-stock-rises-as-ceo-teases-bitcoin-adoption/

2024-11-19 19:27

The protocol's rejuvenation is driven by elevated perpetual funding rates, with more catalysts ahead for growth. Ethena's USDe yield-bearing token grew by $1 billion in a month to $3.44 billion as perpetual funding rates rose amid the crypto rally. The token now offers a 29% annualized yield, rebounding from a period of below the U.S. dollar risk-free rate as crypto markets corrected. DeFi lenders and exchanges listing USDe as collateral assets and plans to distribute protocol revenues to governance token holders could further bolster growth. As crypto markets rocketed higher since Trump's election victory, Ethena's yield-bearing token is back in vogue with investors. The project's USDe token attracted around $1 billion in new capital over the past month, climbing to a market capitalization of $3.44 billion, according to DefiLlama data. Now, it's only 5% below its record value of $3.6 billion in July. Ethena faced headwinds as crypto markets cooled off from their March peak. USDe is marketed as a "synthetic dollar" with its price anchored at $1. It uses bitcoin (BTC) and ether (ETH) as backing assets, pairing them with an equal value of short perpetual futures positions on multiple exchanges. The strategy generates revenue on its backing derivative assets when the perpetual funding rates are positive and passes on some of the income as yield to investors. Perpetual funding rates turned negative in August and September, rendering Ethena's strategy unfavorable to investors with yields lower than the risk-free rate for the U.S. dollar. Investors withdrew $1.2 billion from the protocol between July and October. Now, as crypto markets turn red-hot, with BTC breaking multiple all-time records, Ethena offers a 29% annualized yield to holders who stake their tokens, according to the project's website. More catalysts for Ethena growth There are more catalysts ahead that could fuel further growth. Decentralized lending behemoth Aave added staked USDe token among its available collateral assets, allowing users to borrow against the tokens while earning a yield. "Expect that the Aave integration [...] will be a multi-billion supply sink for USDe within the next month, and two new CEX collateral listings are dropping within the next week," Guy Young, Ethena's co-founder and CEO, said in an X post on Friday. Ethena also plans to start sharing protocol revenues with governance token (ENA) holders, after the project's risk committee approved a governance initiative last week. The plan was proposed by crypto trading firm Wintermute on Nov. 6, following Donald Trump's election victory. Industry players anticipate more appeasing regulations for decentralized finance (DeFi) protocols under a Trump presidency, as the president-elect also backs one. https://www.coindesk.com/markets/2024/11/19/ethena-sees-1b-inflows-as-crypto-rally-brings-back-double-digit-yields/