Are you curious about the latest in the crypto world? Here’s a rundown of today’s key trends and events affecting Bitcoin prices, blockchain technology, DeFi, NFTs, Web3, and crypto regulations.
The Scoop: Open interest surges ahead of historic election for crypto
This column was co-authored by Frank Chaparro, Director of Special Projects at The Block, and Laura Vidiella of MNNC Group. The views expressed in this column are their own and do not necessarily reflect the opinions of their respective employers.
As we approach the upcoming election in less than a week, while many are focused on the polls, my attention is drawn to a different subject: crypto derivatives. Perhaps it is an unusual interest, but the recent activity in Bitcoin options has captivated me. As Josh Lim might put it, the statistics we are observing are truly significant.
Consider the CME Bitcoin options—on Tuesday, October 29, the platform experienced one of its largest trades ever recorded, involving 3,050 BTC contracts for the November 29 strike calls at $85,000. This trade generated a premium of $4.6 million, with $173,000 in vega and an impressive $42 million in delta, culminating in a total notional value of approximately $350 million. These figures are remarkable, even according to Deribit’s standards.
The situation becomes particularly intriguing when noting that the breakeven point for these positions is around $79,300, implying that Bitcoin would need to increase by 16% from current levels for this strategy to yield a profit. Anyone familiar with the payout structure understands this is not a strategy for the risk-averse.
Furthermore, we are witnessing record-high open interest in futures contracts. Bitcoin, Ethereum, and Solana futures have surpassed the $50 billion mark in open interest, as Austin Reed from FalconX highlighted. This trend serves as a significant indicator of market confidence or, at the very least, a display of risk-taking behaviour as we near what could be a historic election.
21Shares files Form S-1 with SEC for spot XRP ETF
Asset management firm 21Shares has submitted an application to the United States Securities and Exchange Commission (SEC) for the approval of a spot XRP (XRPUSD) exchange-traded fund (ETF).
In a filing dated November 1, 21Shares submitted a Form S-1 for its Core XRP Trust, which, if approved, would be listed and traded on the Cboe BZX Exchange. The filing indicates that the trust does not give investors direct access to XRP but provides an “opportunity to access the market indirectly.”
Coinbase Custody Trust Company will act as the custodian for the trust’s XRP assets if the application is approved. Other asset management firms, such as Bitwise, have also submitted applications for XRP ETFs ahead of 21Shares.
While the SEC approved spot Bitcoin (BTCUSD) and Ether (ETHUSD) ETFs in 2024, it has not yet issued any response to spot XRP applications, likely due to its ongoing lawsuit with Ripple Labs. In a recent judgment, which the SEC has appealed, and Ripple has cross-appealed, a federal judge ruled that XRP was not considered a security about its programmatic sales on exchanges.
Since the SEC approved spot Bitcoin ETFs in January, various asset managers have sought to establish ETFs linked to other cryptocurrencies. VanEck, 21Shares, and Canary Capital have all filed applications for a spot Solana ETF, while Canary also proposed a Litecoin (LTC) ETF in October.
Temasek-backed blockchain VC firm to start new investment fund: Report
Superscript, a venture capital firm focused on blockchain and Web3 and supported by Singapore’s state-owned investment company Temasek, reportedly aims to raise $100 million to create a new investment fund.
According to Bloomberg, unnamed sources disclosed that Superscrypt will collaborate with fintech company Republic as joint partners in the proposed fund, which is still under discussion and may change.
Temasek previously garnered attention in 2022 following a $275 million loss due to the collapse of FTX. In 2021, Temasek acquired a 1% stake in FTX for approximately $210 million and a 1.5% minority interest in FTX US — a separate entity — for $65 million.
After FTX’s bankruptcy, Temasek representatives stated that despite months of assessing the exchange’s financial records and examining potential regulatory risks, the firm did not detect any warning signs or fraudulent activity. However, the FTX collapse triggered public criticism in Singapore, where the ruling government faced backlash for failing to assess the risks associated with the exchange adequately and to protect investors.
Following this, Singapore’s then Deputy Prime Minister, Lawrence Wong, acknowledged that Temasek’s substantial losses in FTX harmed its reputation among market participants.
In May 2023, Temasek reduced the compensation of several executives involved in the FTX investment, who accepted personal accountability for the poor decision. An internal review also found no evidence of intentional wrongdoing by Temasek’s team members.
Although the $275 million loss was significant, it represented only 0.09% of Temasek’s $293 billion assets under management.
Nansen highlights AI-fueled NodeFi, GPUfi for DePIN investment
Blockchain analytics platform Nansen and yield infrastructure protocol MetaStreet have introduced a fresh perspective on decentralized physical infrastructure networks (DePIN) for tech-oriented investors. A newly released report highlights the potential of node financing (NodeFi) and graphics processing unit financing (GPUfi), both of which could present unique investment opportunities as the demand for computing power grows alongside advancements in artificial intelligence.
GPUfi enables returns through GPU rentals, while nodes can provide steady token distributions. By combining these two, investors might gain an advantage over those who rely solely on traditional finance.
Tokenizing nodes and GPUs offer benefits not typically available in conventional finance models, including lending, yield speculation, and self-repaying loans. Although on-chain liquidity and financing in this area are still limited, a few pioneering projects are already making strides.
The report notes Aethir’s GPU-as-a-service DePIN model, which has achieved positive outcomes. Other noteworthy mentions include Elon Musk’s xAI, GAIB, and Impossible Finance.
Bitcoin traders eye key levels as US jobs shock sends BTC price past $71K
Data from Cointelegraph Markets Pro and TradingView showed Bitcoin prices rebounding following the release of October’s nonfarm payroll report.
The data revealed a substantial shortfall, with the U.S. economy adding only 12,000 jobs, significantly below the anticipated 106,000. Additionally, September and August job figures were revised by 31,000 and 81,000, respectively.
Unemployment, however, matched expectations at 4.1%.
“This is the smallest increase in U.S. jobs since July 2021. All indicators suggest a softening labor market,” trading analysis firm The Kobeissi Letter noted in part of its commentary on X.
Kobeissi further projected that the Federal Reserve would likely cut interest rates by 0.25% at its upcoming meeting on November 7—a sentiment supported by CME Group’s FedWatch Tool.
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