The latest moves in crypto markets, in context By Lyllah Ledesma, CoinDesk reporter Was this newsletter forwarded to you? Sign up here. |
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Happy Friday! Here's what you need to know today in crypto: |
- Circle has intervened in the SEC's case against crypto exchange Binance.
- Valkyrie started buying Ether futures contracts, after getting approval to convert its existing bitcoin futures exchange traded fund.
- Coinbase announced it received regulatory approval in Bermuda to list perps.
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CoinDesk Market Index (CMI): 1,117 +1.9%
Bitcoin (BTC): $27,010 +2.2%
Ether (ETC): $1,671 +3.1%
S&P 500: 4,299.70 +0.6%
Gold: $1,885 +1.3%
Nikkei 225: $1,885 +1.3% |
Stablecoin issuer Circle has intervened in the Securities and Exchange Commission's case against major crypto exchange Binance, arguing that financial trading laws shouldn't spread to stablecoins whose value is tied to other assets. In June, regulators charged Binance with multiple legal violations for facilitating trades in cryptocurrencies, such as Solana's SOL, Cardano's ADA and the Binance stablecoin BUSD, which the SEC alleged constituted unregistered securities. That's become one of the most major cases in crypto right now, as the world's biggest crypto exchange – alongside rivals like Coinbase – seek to argue that crypto isn't caught by existing heavy-handed U.S. financial laws. |
Asset manager Valkyrie started buying ether (ETH) futures contracts, after getting approval to convert its existing bitcoin futures exchange traded fund (ETF) to a two-for-one investment vehicle. "Today, the Valkyrie Bitcoin Strategy ETF (Nasdaq: $BTF) began adding exposure to Ether futures contracts, making it the first U.S. ETF to provide exposure to Ether and Bitcoin futures contracts under one wrapper," a spokesperson told CoinDesk in an email statement. Valkyrie was first to get approval for ETH futures ETF among other firms, as it "supplemented its prospectus and updated risk disclosures related to Ether futures," said the spokesperson. Cryptocurrency exchange Coinbase (COIN) announced this week that it had received regulatory approval in Bermuda to list perpetual futures to users outside of the United States. The move comes as no surprise, after Coinbase acquired a license in Bermuda to operate a spot exchange back in April following a gung-ho approach from U.S. regulators, with the ultimate intention of rolling out a perpetual futures platform. Perpetual futures are a type of cash-settled derivatives contract that allow traders to "long" or "short" an underlying asset with leverage. Instead of the contract expiring every month or quarter, perpetual swap traders pay a funding rate that represents the difference between the mark and index price of the underlying asset, this ensures that pricing stays efficient. |
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Market Insight: Bitcoin Traders Eye $28K |
Bitcoin (BTC) prices held steady above the $27,000 level on Friday even as broader financial markets showed mixed movements. Global oil prices retreated after a surge, while stocks in Asia and Europe inched higher as of Asian afternoon hours. Crypto markets were buoyed mainly as participants expected increased demand in the short term as a formal ether (ETH) futures exchange-traded fund (ETF) was floated by financial giant VanEck. However, some analysts warned of selling pressure on riskier assets such as bitcoin, citing all-time highs in certain oil markets. Some analysts priced in a 90% chance of the ETF getting approved in the first week of October, impacting bearish positions. Strength in crypto markets seemed to bump majors, such as Solana's SOL and Cardano's ADA tokens – each adding as much as 4.5%. |
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- The chart shows that addresses holding at least 0.1% of bitcoin's supply have recorded strong net inflows throughout Q3.
- When bitcoin dropped to $25,000 large holders saw inflows of $600 million within a day.
- Since then bitcoin has seen three other spikes of $400 million + in net inflows to large holders, showing strong interest quietly building up, according to IntoTheBlock. "These have happened while centralized exchanges have seen outflows, suggesting it is organic buyers receiving these funds and not just CEX addresses," said IntoTheBlock.
- Source: IntoTheBlock.
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Senator Lummis, Representative Hill and More to Join CoinDesk's State of Crypto Event |
Several legislators shaping the future of digital assets policy have committed to joining CoinDesk's inaugural State of Crypto: Policy and Regulation, including Sen. Lummis, Rep. Hill, Rep. McHenry, Rep. Thompson, Rep Torres and many more.
State of Crypto is a one-day boutique event uniting key policymakers, regulators and government officials with legal, policy and compliance executives representing the largest and most influential TradFi and DeFi leaders in asset management and financial services.
The gathering provides an unprecedented opportunity to evaluate, dissect and ultimately shape crypto regulatory frameworks that support a vibrant, secure and healthy future for the digital economy.
Are you a GC, CCO, CLO, COO or head of policy or government affairs evaluating or actively investing in digital assets? Join State of Crypto: Policy and Regulation to help drive crypto policy forward collaboratively. Save 10% with code FM10. Learn more and register. |
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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. |
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Circle Argues Stablecoins Aren’t Securities in Response to SEC’s Binance Lawsuit