The latest moves in crypto markets, in context By Lyllah Ledesma, CoinDesk reporter Was this newsletter forwarded to you? Sign up here. |
|
|
Welcome to July! Here's what you need to know today in crypto: |
- A $10 million options bet on ether shows positioning for a bullish second half.
- The likelihood for U.S. approval of a spot bitcoin ETF is fairly high, said brokerage firm Bernstein.
- Singapore's MAS orders crypto firms to isolate customers' assets in a trust by year end.
|
|
|
CoinDesk Market Index (CMI): 1,308 +1.2%
Bitcoin (BTC): $30,640 +0.3%
Ether (ETC): $1,963 +2.2%
S&P 500 futures: 4,485.75 +NaN%
FTSE 100: 7,559.65 +0.4%
Treasury Yield 10 Years: 3.82% −0.0 |
|
| Ether, the token of the Ethereum blockchain, jumped 61% in the first six months of the year. Traders are now betting the rally could extend in the second half. On Friday, an investor purchased roughly 63,250 "bull call spreads" tied to ether and due for expiry on Dec. 29, according to data source Amberdata. The trade involved the sale of a call option at the $2,500 strike price to partly fund the purchase of a call option at the $1,900 strike. The strategy cost an initial $10 million because the trader entity shelled out more to buy the $1,900 call than they received from selling the $2,500 call. A call buyer gets protection from the seller against price rallies. In return, the seller receives an upfront premium from the buyer. |
The U.S. Securities and Exchange Commission's (SEC) stance on spot bitcoin exchange traded funds (ETF) is a difficult one to hold, and the probability for approval is fairly high, brokerage firm Bernstein said in a research report Monday. Bernstein notes that the SEC already allows futures-based bitcoin ETFs, and recently approved leverage based futures ETFs on the premise that futures pricing comes from a regulated exchange like the CME. According to analysts led by Gautam Chhugani, the SEC believes that a spot bitcoin ETF would not be dependable because the "spot exchanges (e.g. Coinbase) are not under its regulation, and thus spot prices are not reliable and prone to manipulation." Crypto service providers in Singapore would need to deposit customer assets into a statutory trust before the end of the year for safekeeping, the Monetary Authority of Singapore (MAS) announced on Monday. The requirement comes after the MAS received public consultation around enhancing customer protection initiated in October 2022. "This will mitigate the risk of loss or misuse of customers' assets, and facilitate the recovery of customers' assets in the event of a DPT (Digital Payment Token or Cryptocurrency) service provider's insolvency," the central bank said. The MAS has also restricted cryptocurrency service providers from facilitating lending and staking of tokens by their retail customers but institutional and accredited investors could continue to take advantage of these services. |
|
|
Market Insight: BCH Led Market Gains in June
|
Bitcoin Cash (BCH) was the top performing digital asset in June, with most of the gains coming in the last week and a half following its listing on EDX Markets, the crypto exchange backed by Fidelity, Charles Schwab and Citadel, that debuted June 20. The token gained 171% over the month, outperforming bitcoin, the world's largest cryptocurrency, which added 14% in June, CoinDesk data show. At one point last Friday BCH had surged 30% over 24 hours, touching a 14-month high of $320. The surge was backed by a notable increase in trading activity on South Korea's most prominent digital assets exchange, Upbit. Data tracked by Coingecko show the bitcoin cash-Korean won (BCH/KRW) pair listed on Upbit has registered a trading volume of $558 million on Friday. That's nearly 3.5 times bigger than the volume of $160 million in Upbit's BTC/KRW pair and 5.5 times the BCH/USD volume of $87 million on the Nasdaq-listed Coinbase exchange. |
|
|
- The chart shows the average year-on-year growth rate of four Asian economies – Taiwan, South Korea, Japan and China.
- The export growth rate has tumbled, signaling a slowdown in the global economy. It also means Asian nations may resort to currency devaluation, boosting demand for perceived inflation hedges like gold and bitcoin.
|
|
|
Disclaimer: The information presented in this message is intended as a news item that provides a brief summary of various events and developments that affect, or that might in the future affect, the value of one or more of the cryptocurrencies described above. The information contained in this message, and any information liked through the items contained herein, is not intended to provide sufficient information to form the basis for an investment decision. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments. |
|
|
|
Traders Place Big Bets on Ether for Second Half of 2023