Dogecoin Up by Nearly 15% in 24 Hours After Coinbase Announces Plans To Launch DOGE Futures Trading

March 21, 2024 The Daily Hodl

Bitcoin Rallies Post-Fed Rate Announcement, Shorts Worth $151.69M Liquidated

March 21, 2024 Bitcoin.com

Binance Launchpool Announces Upcoming Support for New Decentralized Derivatives Exchange Altcoin

March 9, 2024 The Daily Hodl

Crypto Biz: Uniswap’s Android wallet app, Cboe to launch BTC, ETH margin futures, and more

November 17, 2023 Coin Telegraph

cboe

Getting regulatory approval has been crucial for companies, particularly in a tight regulatory environment during the crypto winter.

As the final weeks of 2023 approach, it’s fair to say that one of the most dominant trends and drivers of crypto companies’ strategies over the past months can be summed up in a single word: licenses.

In a tight regulatory environment, getting the green light from regulators has been crucial for companies, particularly during the crypto winter.

Some countries have taken a stand by developing a crypto-friendly environment. For example, the United Arab Emirates continues to attract major crypto companies to its shores, with digital assets exchange Crypto.com recently receiving a Virtual Assets Service Provider (VASP) license in Dubai. The license allows Crypto.com’s local business to offer retail and institutional trading, as well as broker-dealer and credit-related services.

Dubai also granted a similar license for institutional crypto custodian Hex Trust. The crypto firm has offices in Hong Kong, Singapore, Vietnam, Dubai, Italy and France.

Traditional players are also seeking crypto licenses. In Germany, Commerzbank has been granted a crypto custody license, according to a Nov. 15 announcement, allegedly becoming the first “full-service” bank in the country to receive the license.

Also, in this week’s regulatory headlines, Bitget dropped plans to obtain a Virtual Asset Trading Platform (VATP) license in Hong Kong, citing business and market-related considerations. As a result, the exchange is winding down its local operations in the coming weeks.

Although licenses are essential for crypto firms to operate, they also represent a new step in the growing connection between crypto and governments worldwide.

This week’s Crypto Biz also explores Uniswap’s Android app, Cboe’s move into crypto margin futures trading and Disney’s upcoming nonfungible token (NFT) platform.

Uniswap launches Android wallet app with built-in swap function

Uniswap Labs has publicly released an Android mobile wallet app on the Google Play Store. The new app allows users to make swaps through the decentralized exchange from within the app, eliminating the need for a separate web browser extension, Uniswap Labs vice president of design Callil Capuozzo told Cointelegraph. Uniswap added support for new languages and now supports English, Spanish, Japanese, Portuguese, French and Chinese — both traditional and simplified — and added a setting that allows users to view the value of their crypto in their local currency. The app’s iOS version was released in April.

*Uniswap mobile app demo. Source: Uniswap Labs.*

Disney launches NFT platform with Dapper Labs

Disney and blockchain firm Dapper Labs have teamed up to create a nonfungible token (NFT) platform. According to an announcement, Disney will tokenize its iconic cartoon characters from the past century onto its upcoming NFT marketplace, Disney Pinnacle. The platform will also include icons from Pixar and heroes and villains from the Star Wars galaxy, uniquely styled as collectible and tradable digital pins. The NFT platform will launch later in 2023 for iOS, Android and on the web.

Cboe to launch BTC, ETH margin futures trading in January with 11 firms supporting

Cboe Digital has announced the launch of Bitcoin (BTC) and Ether (ETH) margin futures trading on Jan. 11, 2024. The regulated crypto-native exchange and clearinghouse will become the first in the United States to offer both spot and leveraged derivatives trading on a single platform, it said in a statement. Eleven firms, including crypto and traditional financial firms, will support the new capability from its launch. They include B2C2, BlockFills, Cumberland DRW and Talos, among others. Cboe Digital provides trading for individuals and institutions. It received approval for margin futures trading from the U.S. Commodity Futures Trading Commission in June.

Goldman Sachs leads $95 million funding round for blockchain payment firm Fnality

Global investment bank Goldman Sachs and French bank BNP Paribas have reportedly led a new funding round for Fnality, a blockchain-based wholesale payments firm backed by Nomura Group. Fnality has reportedly raised 77.7 million British pounds ($95.09 million) in a second round of funding. Other investors included the global exchange-traded fund firm WisdomTree and Fnality’s existing investor Nomura. The new capital will be used for setting up a round-the-clock global liquidity management network for new digital payment models in wholesale financial markets and emerging tokenized asset markets, Fnality said. Fnality was founded in 2019 as a UBS-led blockchain project aiming to build digital versions of major currencies for wholesale payments and transactions involving digital securities.

Crypto Biz is your weekly pulse on the business behind blockchain and crypto, delivered directly to your inbox every Thursday.

Coinbase Secures Approval To Offer Pepertual Futures Crypto Trading to Non-US Customers

September 28, 2023 The Daily Hodl

Bitcoin futures data hints at $22K as the next logical step

September 4, 2023 Coin Telegraph

Bitcoin futures data hints at K as the next logical step

basis

BTC derivatives flipped bearish after Bitcoin failed to establish bullish momentum despite the heightened spot ETF prospects.

A Bitcoin (BTC) price correction down to $22,000 is becoming increasingly likely as BTC derivatives have begun to exhibit bearish tendencies.

The price chart of Bitcoin leaves little doubt that investor sentiment worsened after the much-hyped victory by Grayscale Asset Manager against the U.S. Securities and Exchange Commission (SEC) on Aug. 29 and the postponement of multiple spot BTC exchange-traded fund (ETF) requests by the SEC.

The central question remains whether the prospects of an ETF can outweigh the growing risks.

Spot Bitcoin ETF hype is fading

By Aug. 18, the entire 19% rally that occurred following BlackRock ETF initial filing had fully retracted as Bitcoin moved back to $26,000.

Next, there was a failed attempt to reclaim the $28,000 support as investors raised the odds of an ETF approval following the positive news on Grayscale Bitcoin Trust (GBTC) request.

*Bitcoin/USD price index, 1-day. Source: TradingView*

Cryptocurrency investors' morale deteriorated as the S&P 500 index closed at 4,515 on Sept. 1, merely 6.3% below its all-time high from January 2022. Even gold, which hasn't been able to break above the $2,000 level since mid-May, is 6.5% away from its all-time high. Consequently, the general feeling for Bitcoin's investors just 7 months ahead of its halving in 2024 is certainly less positive than expected.

Some analysts will pin Bitcoin's lackluster performance on the ongoing regulatory actions against the two leading exchanges, Binance and Coinbase. Moreover, multiple sources claim that the U.S. Department of Justice (DOJ) is likely to indict Binance in a criminal probe. The claims are based on allegations of money laundering and potential violations of sanctions involving Russian entities.

Moreover, multiple sources claim that the U.S. Department of Justice (DOJ) is likely to indict Binance in a criminal probe. The claims are based on allegations of money laundering and potential violations of sanctions involving Russian entities.

North Code Capital CIO and Bitcoin supporter Pentoshi expressed the current conditions in a social network post:

I think we still will eventually get some bearish Binance news vs DoJ. That should be seen as opportunity!

But overall. We also likely get ETF’s this year or early next year and $btc heading to 401k’s

Said it before but this is a year for accumulation. Don’t lose sight of the…
— Pentoshi euroPeng (@Pentosh1) September 1, 2023

According to Pentoshi, the potential gains from a spot ETF approval outweigh the price impact from the eventual regulatory actions against the exchanges. There's no way to ascertain whether such an assumption is valid, but such an analysis fails to consider that U.S. inflation, as measured by CPI, has come down to 3.2% in July 2023 from 9.1% in June 2022.

Moreover, the U.S. Federal Reserve's (Fed) total assets have been reduced to $8.12 trillion, down from the recent $8.73 peak in March 2023. This signals that the monetary authority has been draining liquidity from the markets, which is detrimental to Bitcoin's inflation protection thesis.

Looking at a longer time frame, Bitcoin's price has been holding the $25,000 level since mid-March, but taking a closer look at derivatives data shows that bulls' conviction is getting tested.

Bitcoin derivatives show decreasing demand from bulls

Bitcoin monthly futures typically trade at a slight premium to spot markets, indicating that sellers are asking for more money to delay settlement. As a result, BTC futures contracts in healthy markets should trade at a 5 to 10% annualized premium — a situation known as contango, which is not unique to crypto markets.

*Bitcoin one-month futures annualized premium. Source: Laevitas.ch*

Bitcoin's current 3.5% futures premium (basis rate) is at its lowest point since mid-June, prior to BlackRock's filing for a spot ETF. This indicator reflects a decreased demand for leverage buyers utilizing derivative contracts.

Traders should also analyze options markets to understand whether the recent correction has caused investors to become less optimistic. The 25% delta skew is a telling sign when arbitrage desks and market makers overcharge for upside or downside protection.

In short, if traders anticipate a Bitcoin price drop, the skew metric will rise above 7%, and phases of excitement tend to have a negative 7% skew.

*Bitcoin 30-day options 25% delta skew. Source: Laevitas.ch*

As displayed above, the options' 25% delta skew has recently entered bearish territory, with protective put (sell) options trading at a 9% premium on Sep. 4 compared to similar call (buy) options.

BTC futures hint at $22,000 next

Bitcoin derivatives data suggests that the bearish momentum is gaining strength, especially since the approval of a spot ETF could potentially be deferred until 2024, given the SEC's concerns about the lack of measures to prevent a significant portion of trading occurring on unregulated offshore exchanges based on stablecoins.

Meanwhile, the uncertainty in the regulatory landscape does favor the bears as there's no way to dismiss the fear, uncertainty, and doubt (FUD) surrounding potential actions from the DOJ or the ongoing lawsuits against the exchanges by the SEC.

Ultimately, a retracement down to $22,000 — the level last seen when Bitcoin’s futures premium was 3.5% — is the most likely scenario, considering the recent inability to sustain a positive price momentum despite the heightened chances of a spot Bitcoin ETF approval.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

The future of BTC mining and the Bitcoin halving

August 24, 2023 Coin Telegraph

Bitcoin Halving

This week’s episode of Market Talks discusses the future of BTC mining and how miners can maximize profits, as well as the upcoming Bitcoin halving and its impact on the mining industry.

On the latest episode of Cointelegraph’s Market Talks, host Ray Salmond spoke with Dan Rosen, associate director of derivatives at Luxor, a United States-based Bitcoin (BTC) mining pool, research hub and service provider.

The show touched on a number of broad topics, including Rosen’s view on how the upcoming Bitcoin halving will impact BTC price, why Bitcoin’s volatility is set to remain in the double-digits for years to come, and miners’ ability to hedge their operations via hash rate derivatives.

According to Rosen:

“Any maturing asset goes through experiences of high volatility when it first launches, and if you compare Bitcoin to the tech stocks of the early 90s, like Apple and Google, their volatility was astronomical. Bitcoin has also touched crazy high levels of volatility in the 70% to 100% [range] four years ago. This is dropping over time, but we will continue to see this trend as the asset becomes more investable and the eventual launch of an ETF [exchange-traded fund]. One day, we are likely to see a 20% or sub-20% annualized asset class, in maybe four or five years.”

Historically, outside of pledging mined Bitcoin rewards, miners have had few options for hedging risk within their operations. Luxor’s hash rate derivatives essentially add infrastructure to this area of the industry by allowing miners to hedge their exposure to changes in hashprice. The derivatives give miners the option to predict and lock in future revenue during events of unexpected volatility that impact the efficiency of their operations.

Macro continues to impact Bitcoin’s price and miners

Regarding the macro and how this could impact Bitcoin’s price and its miners, Rosen said, “The market is starting to realize that we’re probably not going to get to that 2% inflation target rate any time soon, and it does appear that the market is starting to price in that inflation longer-term will hover around the 2.5% to 3% range. At the same time, we’re still seeing the U.S. dollar as a flight-to-safety asset, and this is impacting equities and creating macro headwinds at the same time, leading to a depreciated value of dollar-denominated assets.”

Despite this dismal economic outlook, Rosen believes:

“While Bitcoin price might not hit six figures leading into the halving or directly after it, I wouldn’t be surprised to see new lows over the next six months due to macro headwinds and then a stronger rally afterward.”

Listen to the full episode of Market Talks on the new Cointelegraph Markets & Research YouTube channel, and don’t forget to click “Like” and “Subscribe” to keep up-to-date with all our latest content.

Bitget mandates KYC requirements in line with tightening global regulations

August 21, 2023 Coin Telegraph

Bitget

The exchange operator is instituting new KYC requirements for users from September 2023 to comply with developing global regulatory guidelines.

Seychelles-based cryptocurrency derivatives exchange Bitget is updating its Know Your Customer (KYC) requirements for users to stay in step with global regulatory guidelines.

According to the company, the new KYC requirements are being instituted to protect user rights and interests, shape a secure cryptocurrency trading environment and comply with regulatory recommendations from various global watchdogs.

BitGet will adjust its KYC verification requirements from September 2023, with newly registered users required to complete level 1 KYC verification to access a variety of Bitget’s services including deposits and trading of cryptocurrencies.

*Bitget's updated KYC mandate. Source: Bitget*

Users that signed up to the platform before Sept. 1 are required to complete KYC verification by Oct. 1, 2023. The derivatives exchange notes that users that have not completed the process through September will still be able to deposit, withdraw and trade.

However from October onwards users that have not carried out the KYC verification process will be limited to withdrawals, cancel orders, redeem subscriptions and closing positions and will be restricted from being able to create new trading orders.

Bitget also noted that it would follow through with KYC procedures to verify customers identities for risk assessment purposes in line with a majority of mainstream financial institutions and regulated organizations.

The Seychelles-based platform is the latest exchange to announce that it would be updating its KYC policy.

KuCoin instituted similar requirements in July 2023, introducing mandatory identity checks for all new users to align with global anti-money laundering (AML) regulations. Users that failed to complete KYC checks are unable to access KuCoin’s services and products. KuCoin users are required to provide their names, ID numbers, ID photo and complete a facial recognition process.

OKX is also requiring users to carry out a KYC process to verify identities, with a similar deadline to Bitget in September. The three step process mirrors that of KuCoin, while users that fail to carry out the verification process would be unable to access OKX’s services from the Sept. 21.

Magazine: ‘Elegant and ass-backward’: Jameson Lopp’s first impression of Bitcoin

Coinbase futures approval seen as a major win amid the war on crypto

August 17, 2023 Coin Telegraph

Coin Telegraph

The recent approval allows Coinbase to join the ranks of major derivative exchanges in the United States, CME, and CBOE.

The approval for America’s largest digital asset exchange, Coinbase, to offer crypto futures to U.S. retail customers is being seen as a major regulatory victory amid a heated battle with the country’s securities regulator.

On Aug. 16, the National Futures Association (NFA) — designated by the U.S. commodities regulator as a registered futures association — granted Coinbase permission to operate a Futures Commission Merchant (FCM) platform.

A loud signal

Some crypto industry commentators see the approval as a significant regulatory victory for Coinbase and crypto, given the U.S. Securities and Exchange Commission has accused the exchange of avoiding the registration of its offerings.

“If I were a judge I'd wonder why somehow [Coinbase] manages to register with the [CFTC] yet the [SEC] claims that Coinbase is unwilling to do the hard work to register," investment management firm Electric Capital founder Avichal Garg wrote in an Aug. 17 tweet.

Getting an FCM via the @CFTC is a big deal. It takes years of work.

If I were a judge I'd wonder why somehow @coinbase manages to register with the @CFTC yet the @SECGov claims that Coinbase is unwilling to do the hard work to register. https://t.co/axDHt8ya3F
— Avichal - Electric ϟ Capital (@avichal) August 16, 2023

Former CFTC Commissioner and policy head at a16z, Brian Quintenz, said that “Customers and innovation can both win when a regulator is open to having a constructive dialogue around new technology.”

Meanwhile, Coinbase CEO Brian Armstrong said the approval was a major moment for crypto clarity in the United States.

*A response to Coinbase securing futures approval. Source: X/@SMTuffy*

The move has also placed Coinbase in a position normally helmed by traditional finance firms.

Institutional exchanges, the Chicago Mercantile Exchange, and the Chicago Board Options Exchange currently offer Bitcoin and Ether futures in the United States.

Coinbase labeled the move as a “critical milestone,” adding it makes it the first crypto-native company to directly offer traditional spot crypto trading alongside futures products.

Tapping into a massive market

In May, CoinGecko reported that the global crypto derivatives market was worth just under $3 trillion, while Coinbase highlighted that the global crypto derivatives market represents around three-quarters of all trading volumes.

“Since the global crypto derivatives market can be three to four times larger than spot, this approval increases Coinbase’s total addressable market,” Dan Dolev, an analyst at Mizuho Securities, wrote in a Wednesday note, as reported by Barron’s.

Orca Capital's Jeff Sekinger said “Coinbase is set to become a pivotal access point for traders,” adding that its new products will “cater to this demand and provide enhanced exposure and flexibility for investors.”

While CoinShares chief strategy officer Meltem Demirors said it was “exciting times in US crypto markets,” particularly given a pivot toward U.S. trading hours.

The firm initially unveiled plans to offer BTC and ETH futures contracts in mid-2022. The new approval will allow Coinbase to offer the crypto futures directly to eligible U.S. retail customers, rather than just institutional clients. The exchange did not specify when it would become available, however.

Company stock (COIN) did not react to the news, dropping 1.56% on the day to reach $77.7 in after-hours trading, however, Coinbase shares are up 130% so far this year.

Cointelegraph reached out to Coinbase for further comments.

Magazine: Hall of Flame: Wolf Of All Streets worries about a world where Bitcoin hits $1M

Coinbase Wins Approval to Sell Bitcoin (BTC) and Ethereum (ETH) Futures Products in the US

August 16, 2023 The Daily Hodl

derivatives