2024-11-19 18:31

Spot bitcoin exchange-traded funds options are making solid volume on their first day. Bitcoin rose above $94,000 today, hitting a new all-time high. Spot bitcoin ETF options are now live on Nasdaq. The product was rolled out in strong demand from traders. Bitcoin (BTC) made new highs on Tuesday as Wall Street rolled out its latest product, almost guaranteed to increase the exposure of the digital currency among financial institutions: options trading on spot bitcoin exchange-traded funds (ETFs). At press time, the top crypto was trading above $94,000, up more than 4% in the last 24 hours. This breaks its previous record of $93,450, set on Nov. 13. Meanwhile, the CoinDesk 20 — an index of the top 20 cryptocurrencies by market capitalization except for stablecoins, memecoins, and exchange tokens — is up about 0.3%. The index’s biggest winner was (HBAR), up 9%, while the biggest loser was {{POL}}, down 0.8%. Options contracts allow investors to buy or sell an asset at a specific price and at a pre-determined time. While the CME already offered bitcoin options, the spot bitcoin ETF options are a big deal for retail participants and financial institutions alike, according to Noelle Acheson, former head of market insights at Genesis. “A deeper onshore derivatives market will enhance the growing market sophistication,” Acheson posted on X. “This will reinforce investor confidence in the asset, bringing in new cohorts while enabling a greater variety of investment and trading strategies.” “Institutions will be attracted to the greater flexibility and access to high-volume exposure," Acheson added. "Options offer deeper granularity in expressing an investment opinion, and can boost exposure relative to outlay, making them especially attractive to large players.” Only one of the eleven U.S.-based spot bitcoin ETFs — BlackRock’s IBIT — currently has options available so far, and the demand has been strong. “A few hundred million so far in options volume on IBIT (a ton for day one),” Bloomberg ETF analyst Eric Balchunas posted on X. Balchunas further noted that the vast majority of the contracts were calls, meaning bets that bitcoin’s price will keep rising. https://www.coindesk.com/markets/2024/11/19/bitcoin-makes-new-all-time-high-of-93500-as-etf-options-go-live/

2024-11-19 14:51

The new product aims to give access to T-Bill investments for individuals and organizations who were previously unable to invest in these products, the press release said. Tokenized U.S. Treasuries are a booming market, and now they are coming to the nascent crypto hub of El Salvador. NexBridge Digital Financial Solutions S.A de C.V, a digital asset issuer based in El Salvador that recently won digital asset service license from local regulators, has teamed up with Bitfinex Securities to offer the first regulated public tokenized T-Bill offering in the country. Opening for business on Tuesday, the new offering aims to give access to T-Bill investments for individuals and organizations who were previously unable to invest in these products, the companies said. The product's goal is to raise at least $30 million of deposits, Bitfinex Securities said in a press release. The initial subscription for the product begins on Tuesday, and will be open until November 29. Investors can purchase the token with Tether's stablecoin (USDT), with plans to make it available in bitcoin {{BTC}], too. Following the subscription period, the tokens will trade on Bitfinex Securities' secondary market under the ticker USTBL. The token's value is backed by BlackRock's short-term Treasury bond ETF (iShares Treasury Bond 0-1yr UCITS). Tokenization of real-world assets (RWA) is a rapidly growing sector in the intersection of digital assets and traditional finance that involves placing assets such as bonds, credit and funds on blockchain rails. Participants do so in pursuit of faster settlements and increased efficiency compared to traditional financial plumbing. Token versions of U.S. Treasury notes spearheaded tokenization efforts, tripling in market size in a year to $2.4 billion currently, rwa.xyz data shows. "The inclusion of USTBL tokens in investment portfolios will enable investors to balance digital asset exposure with the stability of traditional finance, offering a new level of diversification that can help reduce overall portfolio risk," Jesse Knutson, head of operations at Bitfinex Securities, said in a statement. https://www.coindesk.com/business/2024/11/19/el-salvador-is-getting-its-first-tokenized-us-treasuries-offering/

2024-11-19 13:00

Bybit, Bitget and OKX combined have 877,000 monthly active users in the U.S., data from Sensor Tower shows. It's unclear if they are just checking prices, or trading in violation of the rules. Cryptocurrency exchanges Bybit, Bitget and OKX had nearly a million "monthly active users" in the U.S. in August, data from Sensor Tower shows. That doesn't mean these MAUs were trading in violation of U.S. rules; they could've just been engaging in allowed behavior like checking crypto prices. But with VPNs, it's possible for Americans to circumvent geoblocks, a costly lesson exchange giant Binance recently learned. At many crypto exchanges around the world, U.S. residents are like visitors to an art museum. They can look, but they're not supposed to touch. Apparently, a lot of Americans are at least looking. Are any of them touching? Bybit, Bitget and OKX, three of the largest cryptocurrency exchanges, all prohibit traders from the U.S., where the companies are not licensed. Yet in August, the three exchanges combined had almost a million monthly active users (MAUs) in the U.S., according to research by Sensor Tower obtained by CoinDesk. To be clear: "active" does not necessarily mean trading. If someone in the U.S. downloads the mobile app from Apple or Google and then does anything with it during a given month, they count as an MAU. Gawk at a price chart, as one might do on CoinDesk's price pages? That exchange would not be abetting rule-breaking behavior. It might be if the American trades, however. Almost exactly a year ago, Binance, the world's top exchange, was forced to write a more than $4 billion check to the U.S. government to settle allegations that, in part, hinged on improperly allowing Americans to trade on its platform. Since then, the cryptocurrency industry has been on notice: Having customers in the United States can be a costly mistake. Polymarket might be on a path to learning that, too, amid news that its CEO's home was raided last week — reportedly because people in the U.S., contrary to a 2022 deal with regulators, may have traded on the popular prediction market. (Though who knows if incoming President Donald Trump's Department of Justice will put its weight behind any investigation.) Even though Bybit, Bitget and OKX warn website visitors with U.S. IP addresses that they are ineligible to trade, users can disguise their locations using virtual private networks, or VPNs. And even though all three exchanges erect another barrier to keep Americans out by requiring some level of customer identification, traders determined to get around such hurdles have been known to obtain fake, stolen or rented credentials. Flashback to 2021: For $200, You Can Trade Crypto With a Fake ID VPN and a fake ID In jurisdictions with stringent cryptocurrency regulations, such as the United States, it is common for individuals to resort to VPNs to access offshore cryptocurrency exchanges, said Daniel Arroche, partner at French crypto law firm d&a partners. “Although this practice often violates the terms of service of many platforms, it highlights the persistent demand for access to global markets despite regulatory hurdles,” Arroche said. A spokesperson for Sensor Tower said it's impossible for his company to determine what exchange app users are doing. “We can neither confirm nor deny if U.S. users are using VPNs to change their location to access trading,” the spokesperson said via email. (The research, which is paywalled, was shared with CoinDesk by a third party.) A video shared with CoinDesk, whose creator requested it not be published with this story, shows how an American can easily circumvent Bybit’s geofencing. The video shows a user first visiting whatismyip.com to display their U.S.-based IP address with the VPN disconnected. Next, they connect to a VPN and change their IP address to a country allowed by Bybit's terms of use. The user then opens the Bybit app, logs in and successfully completes know-your-customer checks using a non-U.S. ID belonging to someone else. After that, they add funds and trade crypto on the platform from the U.S. without any issues. Americans can bypass geoblocking rules by purchasing someone else's know-your-customer (KYC) information for less than $50 worth of crypto. A series of screenshots shared with CoinDesk showed how a U.S. user provided their login credentials to someone they met on X (formerly Twitter). Shortly after, the U.S. user was verified and able to trade freely on the exchange using the identity of a Kenyan. The crypto exchanges respond Bybit, an exchange that has risen rapidly in the last year or so to become the second-largest behind Binance by some estimates, seems to host the largest contingent of MAUs in the U.S. — a jurisdiction the firm says is categorically excluded from its platform — with 451,800 such users in August, according to the Sensor Tower data. The next largest in terms of numbers of U.S. MAUs was Bitget with 281,600, followed by OKX with 144,000, also recorded in August by Sensor Tower, a data provider cited on occasion by the likes of The Wall Street Journal, New York Times and Bloomberg. A spokesperson for Bybit said the exchange has taken various measures, including KYC procedures and IP address bans, to ensure that its services and products are not available to people from restricted jurisdictions. “Users who attempt to download the app or access the platform from restricted jurisdictions will not be able to complete the registration process unless the KYC documents they submitted have indicated otherwise. Additionally, Bybit has implemented IP restrictions to block access from those restricted jurisdictions,” the spokesperson said. Bybit did not respond to follow-up questions about VPNs and rented IDs. Bitget said it "adheres to global compliance standards by enforcing region-based restrictions including the prohibited access of citizens of the US and various countries" and that "anyone attempting to access the Bitget app from any U.S. IP address will receive notifications indicating that access is restricted." As for the Sensor Tower data, Bitget said, “one possible explanation … is that users from other countries utilize methods such as VPNs to mask their locations and download crypto exchange apps through app stores. Sensor Tower only tracks the country from which the app was downloaded, without being able to further discern the users' actual nationality.” OKX initially did not respond to requests for comment. After this article was published, a spokesperson said OKX's app can be used as a non-custodial wallet without trading on the exchange. "U.S. users can download the OKX app solely for the wallet," the spokesperson said. "Those based in the U.S. have a legitimate reason to use the OKX Wallet for their own self-custody needs, similar to MetaMask, Coinbase Wallet, and other wallet apps." https://www.coindesk.com/business/2024/11/19/bybit-bitget-okx-vpn-geofencing-kyc-binance/

2024-11-19 09:37

The second-biggest publicly traded bitcoin holding company is looking to increase its token stash and pay off existing debt. MARA has upsized its zero-coupon convertible notes, offering to $850 million from $700 million. MARA plans to buy more bitcoin with the estimated net proceeds of $833 million. Disclaimer: The analyst who wrote this piece owns shares of MicroStrategy (MSTR) and Semler Scientific (SMLR). MARA Holdings (MARA) has increased its previously announced convertible note offering from $700 million to $850 million. It has also raised the option for initial purchasers to acquire extra notes to $150 million from $105 million. The offering is expected to close on Nov. 20, and is a private offering directed at qualified institutional buyers. The notes maturing on March 1, 2030, will not bear regular interest and can be converted into cash, shares of MARA's common stock, or a combination of both at MARA's discretion. The initial conversion price is approximately $25.91, which is a 42.5% premium over MARA's current stock price, which is currently $18.18. The proceeds are estimated to be around $833 million, with $199 million being used to repurchase the $212 million of MARA's existing convertible notes for 2026. The rest will be allocated for bitcoin (BTC) acquisition, asset expansion, and general corporate purposes. MARA is the second largest publicly traded holder of bitcoin, holding 27,562 BTC. This announcement comes after several other bitcoin holders companies, specifically MicroStrategy (MSTR) and Semler Scientific (SMLR), purchased more bitcoin. MARA's shares are up nearly 2% in pre-market trading after falling nearly 14% on Monday. https://www.coindesk.com/markets/2024/11/19/mara-holdings-upsizes-convertible-notes-offering-by-150m-amid-overwhelming-investor-demand/

2024-11-19 09:12

The bullish technical setup is backed by record trading volumes on Solana-based decentralized exchanges (DEXs). SOL/BTC's prolonged triangular consolidation has ended with a bullish breakout. Solana-based decentralized exchanges register record weekly trading volume that's bigger than the combined activity in Ethereum, Base and BSC. It's said that the best trades occur when the tape, or the direction of the price trend, aligns perfectly with the fundamentals. The solana-bitcoin (SOL/BTC) ratio appears to be one of those rare cases, showcasing a solid bullish price pattern supported by equally impressive activity on the Solana blockchain. Price Breakout The SOL/BTC ratio rose over 1% last week, moving out of a narrowing price range, referred to as triangular consolidation in technical analysis. The breakout indicates that the bulls are finally willing to lead the price action, having been in a stalemate with the bears for eight months. In other words, a sustained uptrend looks likely. The Moving average convergence/divergence (MACD) histogram, a indicator used to identify trend changes and strength, has crossed above zero, indicating a renewed bullish shift in momentum. Fundamentals validate breakout Whether Solana will ultimately replace Ethereum as the top smart contract blockchain remains a hot topic of debate. However, one thing is clear: Solana has established itself as the go-to-place for retail investors to trade memecoins, as evidenced by the surge in trading volumes which supports the bullish outlook for SOL. Solana-based decentralized exchanges (DEX) have registered cumulative trading volume of $41.6 billion in the seven days to Nov, 17, more than double the preceding week and the highest on record, according to data source Artemis. The Solana blockchain alone did more volume than Ethereum, Base and BSC's cumulative DEX activity of $37.9 billion, of which Ethereum accounted for $14.3 billion while the rest did over $11 billion each. Furthermore, Solana continues to compete the rivals in terms of free revenue despite known for being relatively cheaper than Ethereum. For instance, the Solana-based decentralized exchange Raydium has generated $72.83 million in fees in seven days – that's 8% more than Ethereum's $67 million, according to DefiLlama. BTC, meanwhile, has generated a fee revenue of around $15 million in seven days. https://www.coindesk.com/markets/2024/11/19/sol-looks-set-to-outperform-btc-as-solana-based-dexs-register-record-41b-in-trading-volume-godbole/

2024-11-19 07:01

Trump Media and Technology Group, which operates Truth Social, is nearing an all-stock deal to purchase Bakkt, a struggling crypto trading venue owned by Intercontinental Exchange. Trump's media company is expanding into the cryptocurrency market. Bakkt's crypto custody business will not be part of the acquisition. The deal deepens Trump's involvement in crypto after promoting World Liberty Financial. Trump Media and Technology Group (TMTG), the parent company of Truth Social, is in advanced discussions to acquire the crypto trading platform Bakkt, according to a report from the Financial Times. The potential all-stock deal would see TMTG absorb Bakkt, whose market capitalization stood at just over $150 million on Monday. TMTG, despite minimal revenue, boasts a $6 billion equity valuation fueled by retail investor interest following Trump’s re-election. Bakkt was set up by Intercontinental Exchange, which owns large derivatives exchanges, plus the NYSE, with the initial goal of helping Starbucks customers buy coffee with bitcoin (BTC). Future U.S. Senator Kelly Loeffler was its first CEO. It finally introduced a digital wallet in 2021, which was discontinued last year. Bakkt is now focused on crypto custody and trading services. In February, Bakkt said it did not have cash in hand to fund even 12 months of the operation. Shares of Bakkt Holdings Inc (BKKT) ended up jumping 160% on Monday following the report. Talks of the acquisition follow Trump’s recent promotion of World Liberty Financial, a DeFi platform tied to the Trump family. A deal could impact Bakkt's future direction and potential role within Trump's expanding media empire, including its focus on bitcoin. As such, Bakkt’s crypto custody business, which holds digital assets like bitcoin and ether, has struggled and will be excluded from the acquisition. The move comes amid a surge in crypto markets following Trump's victory, with bitcoin up over 30% in the past 30 days. On a separate note, the Wall Street Journal reported that President-elect Trump is planning on meeting Coinbase CEO Brian Armstrong. https://www.coindesk.com/markets/2024/11/19/donald-trumps-media-group-eyes-purchase-of-crypto-exchange-bakkt-report/