Bitcoin continues its vigorous push towards the $100,000 threshold, with significant trading activity highlighting investor enthusiasm. The cryptocurrency reached an impressive intraday high of $99,860 before slightly retreating, showcasing ongoing
Ripple's momentum will decide if its resurgence marks a breakout or echoes past cycle pitfalls.
Cboe, the derivatives exchange for digital assets and securities trading, is set to make a big addition to the crypto landscape by launching the first cash-settled index options linked to Bitcoin’s (BTC) spot price movements. Scheduled to debut on December 2, these options will be based on the Cboe Bitcoin ETF Index, which tracks a selection of US-listed spot Bitcoin exchange-traded funds. What This Means For Traders The introduction of these options follows closely on the heels of Nasdaq’s recent listing of spot Bitcoin ETF options. This move allows US investors to utilize derivatives to speculate on or hedge against BTC’s price movements. Related Reading: XRP Price Outlook Brightens: Expert Predicts $2 Target Post-Gensler Era Alex Thorn, head of firmwide research at Galaxy Digital, emphasized that reducing Bitcoin’s volatility could significantly alter investor perceptions. The availability of cash-settled options will provide institutions with effective tools to hedge their positions, potentially increasing overall market liquidity. This influx of options trading could also influence retail trading behavior, especially during bullish market conditions. Notably, the current surge in Bitcoin’s price, which reached an all-time high of $99,300, has been partly attributed to increased trading activity and market optimism. Therefore, introducing cash-settled options could further push Bitcoin over the $100,000 mark, especially given the increased buying pressure seen in recent days. Cboe’s options on the Bitcoin ETF Index will also enable market participants to gain exposure to spot Bitcoin ETFs and, by extension, to Bitcoin itself. The cash-settled nature of these options is said to simplify the process, as positions will be resolved in cash at expiration. Additionally, the options will feature a “European-style exercise,” meaning they can only be exercised on the expiration date, thus minimizing the risks associated with early assignment. Cboe Mini Bitcoin ETF Options In conjunction with the standard-sized index options, Cboe plans to launch Cboe Mini Bitcoin ETF Index options (Ticker: MBTX), valued at one-tenth the notional value of the standard options. Moreover, Cboe will also offer cash-settled FLEX options on both the standard and mini index options. FLEX options enable traders to customize key contract terms such as exercise price, exercise style, and expiration date, providing further flexibility in trading strategies and allowing for larger positions than typically permitted with standard options contracts. Related Reading: Dogecoin Price Set To Skyrocket By Saturday, Warns Crypto Analyst Rob Hocking, Cboe’s Global Head of Product Innovation, highlighted the benefits of cash settlement and the variety of index sizes available, which are expected to attract institutional and retail participants looking to hedge or capitalize on Bitcoin’s price movements without directly holding the asset. The exchange already lists cash-settled Bitcoin and Ether margin futures on Cboe Digital Exchange, with plans to transition these products to the Cboe Futures Exchange in the first half of 2025, pending regulatory approval. Cboe’s BZX Equities Exchange also holds a leading position in the US market for spot crypto ETFs, having captured a majority market share of available Bitcoin and Ethereum ETFs. When writing, the market’s leading cryptocurrency is trading at $99,240. Featured image from DALL-E, chart from TradingView.com
Summary I've been bullish on digital assets and crypto-proxy assets in 2024, with cautious exceptions for Grayscale funds trading at large premiums. My bearish stance on the Grayscale Solana Trust contrasts with my bullish view on the Grayscale Digital Large Cap Fund due to its discount to NAV. The Grayscale Ethereum Classic Trust also trades at a large discount to NAV, but I'm skeptical about buying it despite that discount. Usage of the Ethereum Classic blockchain has seen continued erosion of the last 10 months. It's a ghost town blockchain. In my view, there's no real reason to expect a positive catalyst from here that helps close the discount rate in ETCG. I've generally been very bullish of digital assets and crypto-proxy assets during the majority of 2024. There have been a few exceptions to that bullishness, however, with Grayscale funds that trade at large premiums being an area where I've recommended caution. My recent coverage of the Grayscale Solana Trust (GSOL) is a good example of one of my bearish takes. On the other hand, I've been bullish on the Grayscale Digital Large Cap Fund ( OTCQX:GDLC ) due to the large discount to net asset value. There is one Grayscale product that bucks the general trend from the company's offerings; like GDLC, the Grayscale Ethereum Classic Trust ( OTC:ETCG ) trades at a large discount to net asset value as well, but I'm much less convinced that buying the fund on any discount closing is a good idea. I last covered ETCG for Seeking Alpha in January and held a bearish viewpoint. At that time, Ethereum Classic ( ETC-USD ) developers were gearing for the "Spiral" upgrade, and I had several concerns about the preparedness in the market. Today, we'll go over how the network has performed since that upgrade and get into some of the shareholder information pertaining to ETCG specifically. Ethereum Classic Network Data The point of the network upgrade back in January was to make Ethereum Classic more EVM-ready in the event that something happened to the Ethereum ( ETH-USD ) network. So far, Ethereum is plugging along just fine and scaling quite well via L2 networks. For Ethereum Classic, there hasn't been any real surge in applications or Total Value Locked on the blockchain: Ethereum Classic TVL in ETC (DefiLlama) DefiLlama shows the ETC-denominated TVL on the blockchain at just 20.5k ETC, or a USD value of a little over a half million dollars. This is well off the December high of $1.7 million and indicative of a blockchain that has had virtually no dapp growth whatsoever since Spiral. It doesn't get much better when looking at the raw user numbers: 30 Day Average DAA (CoinMetrics) The 30-day rolling average of daily active addresses fell below 12k in October. This level of users is still slightly above the all-time lows late 2020, but well off the highs from 2021. The same is true for transferred value on the chain: 30 Day Average Transferred Value (CoinMetrics) While it has actually grown a little bit here in November, USD-denominated transferred value averaged less than $10 million for nearly the entire months of September and October. That figure spent most of January between $40-50 million per day before the Spiral upgrade. Finally, it isn't a network data point, but one of optics: ETC Blog The ETC Blog that has been active since 2015 by various writers and regularly maintained by Donald McIntyre since late 2022 hasn't been updated since August. The same is true for the Ethereum Classic YouTube page. The point is, there is very little activity or enthusiasm for Ethereum Classic as a blockchain network. Thus, the gas token associated with the chain lacks any sort of organic bid or bullish catalyst from where I sit. Grayscale Ethereum Classic Trust Despite Ethereum Classic seemingly becoming a ghost town of a blockchain, ETCG remains one of the top single asset Grayscale funds by AUM at $305 million: Grayscale Funds by AUM (CoinGlass) This is unusual because ETC has a much smaller market capitalization than other cryptocurrencies in this screengrab, like Litecoin ( LTC-USD ) or Bitcoin Cash ( BCH-USD ). And unlike every other non-ETF single-asset fund offered by Grayscale, ETCG is the only fund that trades at a considerable discount to net asset value. As of 11/21 close, that discount stood at over 42%. There's a good reason for this, in my view, and it's related party holdings. Genesis Assets (Genesis Global Holdco, LLC) In my past ETCG work for Seeking Alpha, I've noted the high related party ownership in the fund relative to other funds. There are just under 14 million ETCG shares outstanding. Of those shares, related parties owned over 3 million as recently as Q3-23. As of Q3-24, that figure is down to just 15k shares. The reported related party figure from the latest ETCG 10-Q no longer includes shares held by Genesis. Genesis notoriously went bankrupt as a result of third-party insolvencies from Crypto Winter in 2022. In February, Genesis was given court approval to sell off the trust assets at its own discretion and without a timeline. Though it appears as though the trust assets have been sold off based on both industry reports and court documents . Still, ETCG trades at nearly half the market value of the ETC underlying the fund. Closing Thoughts I don't see a real catalyst that reverses this discount. Unlike some of the other discounted crypto-proxy funds that track with assets that have strong networks and user bases, Ethereum Classic just doesn't have the level of activity that, I believe, would make the coin itself necessary to acquire. Without an organic bid on ETC for gas usage as a utility coin, there's little reason to be bullish ETC and by extension ETCG. Stranger things have happened in this market, and ETCG's NAV discount could certainly close back near NAV. Especially considering the Genesis liquidation overhang is seemingly in the rearview mirror. But I think there are better ways to double your money in this market than betting on a discount window closing in a fund that offers exposure to a blockchain network that has very little activity and no clear catalyst. I'm still going to call this one an avoid.
Shiba Eats Pepe could turn early investors into multi-millionaires, like other memecoins, such as Shiba Inu (SHIB) and Dogecoin (DOGE), did. Shiba Eats Pepe (SHIBPEPE), a Solana memecoin launched today, is set to explode over 16,000% in price in the coming days. This is because SHIBPEPE is set to soon be listed on numerous crypto exchanges, according to reports. This will give the Solana memecoin exposure to millions of additional investors, who will pour funds into the coin and cause its price to rally, which will benefit investors who buy before these new exchange listings. Currently, Shiba Eats Pepe can
CFTC commissioner calls for urgent reforms in US crypto policy
Bitcoin recently reached record highs of $99,860
VeChain (VET) has regained bullish momentum following a 134% price increase over the past three weeks, spurred by a broader crypto market resurgence after Donald Trump’s U.S. presidential election win. TradingView data highlights VET’s recovery from a prolonged bear trend that wiped out 90% of its value over the past three and a half years. The post VeChain Surges 134% in 3 Weeks, Setting Sights on Key Price Milestones Ahead appeared first on Coin Edition .
The cryptocurrency market is experiencing significant movements, with XRP leading the charge as it recently surged over 10% amid fluctuating trading conditions. This upward momentum for XRP comes even as
The DOJ charges five individuals for a cryptocurrency phishing scheme. The fraudulent scheme led to millions of dollars in losses for victims. Continue Reading: DOJ Files Charges Against Five Individuals for Cryptocurrency Phishing Scheme The post DOJ Files Charges Against Five Individuals for Cryptocurrency Phishing Scheme appeared first on COINTURK NEWS .