CME Bitcoin Futures Open Interest Cracks A New ATH, Ethereum Aims for $4k Again

Excitement is creeping back again in the cryptocurrency market as prices start to show early signs of an upcoming rally.

Currently trading around $57,500, late on Wednesday, Bitcoin went to surpass $58,600. $60,000 is now the target that would take us to mid-April levels when we hit an all-time high of $64,850.

Ether hit $3,820 on Thursday. This renewed interest in the second-largest cryptocurrency has ETHBTC trending up from 0.06 to 0.6654 with the next resistance sitting at just above 0.07.

Both Bitcoin and Ether are currently about 11% to 14% away from their respective ATHs.

With the top asset pumping, the total market cap also went past $2.5 trillion, with other notable gainers including DOT (18%), HBAR (11%), LINK (11%), and MINA (10%) in the past 24 hours while in the past week, STACKS (58%), OHM (57%), ONE (34%), and FTM (31%) hogged the limelight.

For the last two days, the US dollar index is also trending down, currently at 93.960, after hitting one year-high at 94.5 on Tuesday.

This time the prices are pumping in anticipation of a Bitcoin ETF approval propelled by SEC Chair Gary Gensler’s support for CME futures-based exchange-traded funds.

Open interest on Bitcoin futures is also spiking significantly, reaching $20.77 billion, a level that was last seen on May 10th and April 20th, according to Bybt.

With CME’s futures the basis of these ETFs, it makes sense that OI on the regulated platform has already hit a new all-time high at $3.23 billion.

The price action has started to have an effect on funding rates as well which were negative just last month, while currently, the highest is on OKEx at 0.0479%.

“BTC quarterly annualized rolling basis now at 15%. This basis hit 51% around the April 2021 top and 26% at the 2019 top. There’s room,” said trader and economist Alex Kruger.

Amidst the return of euphoria in the crypto market, Michael Burry of ‘Big Short’ fame who made his fortune by betting against the housing bubble, has crypto in his sight, but the sad thing is he doesn’t really know how to short crypto.

Before asking “how do you short a cryptocurrency,” Burry also commented on the crypto industry experiencing the speculation that “probably tops anything in history.” And the Crypto Twitter (CT), of course, couldn’t help but take a jab at him.

“Imagine knowing this and not taking part in it,” commented popular crypto investor CT Degen Spartan.

“My thesis is that the crypto bubble will be 100x the insanity of the tulip bubble. People will be taking on multigenerational debt to fund their punts, either in the fear that they get left behind in fiat or the greed that they can hyper gamble their bloodline into elite status.”

Last week, Burry had dismissed popular meme coin Dogecoin (DOGE) competitor Shiba Inu (SHIB) as “pointless.” Currently trading at $0.00002878, SHIB is down 24% from its May high of $0.00003791 but is up 51076422.9% in about a year.

The fund manager had compared the excitement around bitcoin and meme stocks to the housing boom and the dot-com bubble and warned that they’ve been “driven by speculative fervor to insane heights from which the fall will be dramatic and painful.”

Known for investing in the traditional memecoin GameStop, Burry inadvertently paved the way for the short squeeze on the stock in January that sent GME’s share prices skyrocketing.

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Author: AnTy

Bullish Week: Overwhelming Bitcoin Buying Sends OI to May Level while Net Dollar Longs Surging

The bullish start of October continues this week as the price of Bitcoin went from $48,250 to as high as $56,645 on Friday. As of writing, BTC/USD is hovering around $55k.

With this latest pump in price, Bitcoin has yet again become a trillion-dollar asset class.

According to Chainalysis, ever since Bitcoin hit it’s low late in July, those holding at least 1k BTC have increased their holdings by 172k BTC. Meanwhile, institutional traders have acquired an additional 68k BTC.

Much like the leading cryptocurrency, Ether moved in tandem to start the week at $3,400 to hit $3,675 and is now trading around $ 3565. The overall crypto market cap also grew by more than 9.5% to above $2.4 trillion.

This past week, the biggest gainer in the crypto market has been SHIB which is up by 232%. Other big gainers include FTM (44%), ONE (37%), OHM (25%), BTT (21%), XRP (18%), DCR (16%), AXS 16%), and EOS (15%).

Q4 is looking primed for a significant price-performance with it being historically a bullish quarter combined with the possible upcoming approvals for BTC ETFs in the US, the stabilization of the Evergrande situation, and traditional giants like Soros Fund Management turning crypto-positive.

Institutional Demand

Despite the 14% uptrend in Bitcoin price, the funding rate is still not heavy, with the highest currently on OKEx at 0.0453%, as per Bybt.

Open Interest is also surging, having climbed to $19.15 billion, a level last seen in early May. In just over ten days, the OI has increased by about $6 billion. As reported, CME is particularly enjoying a heightened activity with OI on Bitcoin contracts sitting at $3.12 billion, the same as FTX and just behind Binance at $4.35 billion, as per Skew.

On Sept. 29, OI on the regulated platform CME was $1.47 billion. For Ether contracts, OI on CME currently at $830 mln is reaching for early Sept. ATH of $860.75 mln — but ranks at 6th place.

This significant increase in OI suggests “institutional demand has been the underlying driver of this move higher,” according to QCP Capital. Additionally, the “unusually large premium on CME indicates an overwhelming amount of outright buying.”

Premium on CME futures has been highest among the major exchanges when typically it is compressed due to the cash-and-carry spread trades that institutional players like to put on — buy spot vs. sell CME future.

This week, Senator Cynthia Lummis R-Wyo. also disclosed buying between $50,001 to $100,000 worth of BTC in mid-August, according to a filing. This, however, isn’t her first Bitcoin purchase, as she first bought it in 2013. She also disclosed buying Bitcoin worth between $100k-$250k in April this year.

Dollar Longs at 2-Year High

While crypto is euphoric, S&P 500 is merely up 2.14% this month and 17.14% YTD compared to Bitcoin’s 90% uptrend in 2021 so far. Gold is also green this month by 1.60% but still down by 7.27% year to date.

When it comes to the US dollar index, it is up 0.56% and 2.74% in this month and year, respectively.

US dollar net longs meanwhile have surged to their highest level in over two years. In the week ended Oct. 5, the value of the net long dollar position jumped to $22.89 billion, versus $16.37 billion in the previous week.

Traders are net-long on US dollar for 12 straight weeks after being short for 16 months, thanks to the Federal Reserve suggesting a possible tapering of its asset purchases starting November this year.

However, before the weekend, the dollar pushed back after data showed US non-farm payrolls increased by just 194,000 jobs last month, compared to the expected 500,000 new jobs.

“U.S. inflation data released next Wednesday may add to evidence that inflationary pressures are proving less ‘transitory’ than generally anticipated,” wrote Jonathan Petersen, markets economist at Capital Economics.

“Our view remains that this will push U.S. yields and the dollar a bit higher in the coming months.”

Bitcoin net shorts meanwhile increased to 1,518 contracts — largest since late July — from 883 the previous week.

Developing Countries Leading In Adoption

El Salvador, which continues to see growing bitcoin adoption, is now planning to invest some of the $4 million gains obtained from its Bitcoin operations to build a veterinary hospital, President Nayib Bukele said this week.

The Bitcoin Trust, which was authorized by Congress in August to facilitate BTC and USD transfers, now has a “surplus” of $4 million to its original balance of $150 million, said Bukele.

“So we decided to invest a part of that money in this: a veterinary hospital for our furry friends,” Bukele wrote on Twitter. The veterinary hospital would provide basic and emergency care services along with rehabilitation, he added.

Earlier last week, El Salvador became the world’s first nation to adopt Bitcoin as legal tender. According to BitMEX CEO Alex Hoeptner, Salvador is just the first one as he predicts at least five countries accepting the cryptocurrency as legal tender by the end of next year and all of them will be developing countries.

“Faced with an inherently unequal financial system, those who have the most to lose by continuing the status quo are acting in their self-interest to explore alternative options like Bitcoin.”

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Author: AnTy

$402B Asset Manager Giant Files to Start Offering Bitcoin and Ethereum Exposure Immediately

$402 Billion Asset Manager Giant Files to Start Offering Bitcoin and Ethereum Exposure Immediately

Neuberger Berman will be offering indirect exposure to the top two crypto-assets through futures and funds invested in BTC and ETH in line with SEC Chairman Gary Gensler’s openness to Bitcoin futures-backed ETFs.

Neuberger Berman, the asset manager with over $400 billion in assets under its management, filed with the US Securities and Exchange Commission (SEC) Wednesday to start offering exposure to the top two crypto-assets.

Much like the latest Bitcoin-related ETFs filed with the SEC, such as VanEck and Invesco, Neuberger Berman will also offer indirect exposure through futures instead of investing directly in Bitcoin and Ether after SEC Chairman Gary Gensler indicated that he is more open to futures backed ETFs that offer more protection. The SEC filing reads,

“Effective immediately, Neuberger Berman Commodity Strategy Fund’s (the “Fund”) investment strategy will permit actively managed exposure to cryptocurrency investments and digital ​​”assets through (i) cryptocurrency derivatives, such as bitcoin futures and ether futures, and (ii) investments in bitcoin trusts and exchange-traded funds to gain indirect exposure to bitcoin.”

The fund giant will be making the investment through its subsidiary.

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Author: AnTy

Republican House Campaign Arm NRCC to Accept Crypto Donations

The campaign arm of the Republican House will start accepting contributions in cryptocurrency, reported Axios.

Such a move will make the National Republican Congressional Committee the first national party committee to accept crypto donations.

For crypto donation, NRCC will be using the cryptocurrency payment processor BitPay which will immediately convert crypto donations into dollars before sending them to NRCC’s account.

As such, the committee won’t be holding any crypto. This will allow them to accept individual donations of up to $10,000 per year, rather than the $100 maximum value for transfers of crypto like Bitcoin. Rep. Tom Emmer (R-Minn.), the NRCC chairman, said in a statement,

“We are focused on pursuing every avenue possible to further our mission of stopping Nancy Pelosi’s socialist agenda and retaking the House majority, and this innovative technology will help provide Republicans the resources we need to succeed.”

A member of the House Financial Services Committee, Emmer is a co-chair of the Congressional Blockchain Caucus. Recently Emmer and a bipartisan group from the House Blockchain Caucus asked the IRS to ease regulations on charitable crypto donations.

Given that the Federal Election Commission has expressed concerns about anonymity provided by cryptos, the NRCC says it will diligently gather identifying information from all individuals who use crypto assets to donate.

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Author: AnTy

Digital Yuan Is Closing In On A Full Release As Major Institutions Start Using The CBDC

Digital Yuan Is Closing In On A Full Release As Major Institutions Start Using The CBDC

  • Alibaba’s Ant Group partnered with PBoC to develop China’s CBDC report.
  • The digital yuan could overpower the influence of WeChat Pay and AliPay in the future.
  • More institutions are adopting the CBDC as a form of payment.

Ant Group, a wholly-owned subsidiary by Alibaba, has been partnering with the People’s Bank of China (PBoC) on the central bank digital currency, popular as CBDC, a report from South China for the past four years China Morning Post reads.

This information was revealed over the weekend at a Digital China Summit in Fuzhou. MYbank, a mobile fintech app by Ant Group, was the intermediary to distribute the digital yuan since 2017. Additionally, the central bank’s main research institute, China Digital Currency Institute, picked up the app in mid-2019 to choose consumers to spend, pay and receive the CBDC.

“Ant Group, together with MYbank, will continue to support the research, development, and trial of PBOC’s e-CNY,” a representative familiar with the matter commented.

The influence of the CBDC is unquestionable across China with the trials conducted over major cities are well received by the population. At the core of the growing adoption rates is the support of China’s large banks such as the Industrial and Commercial Bank of China, the Agricultural Bank of China, Bank of China, HSBC, and the China Construction Bank, all of who have taken part in the trial phase of the digital yuan.

To further boost adoption, several large banks are promoting the use of the digital yuan in an upcoming festival on May 5th over the use of platforms such as WeChat Pay and AliPay. The banks are urging the population to download a digital wallet and purchase the digital CBDC, also known as e-CNY in a bid to make their payments “more convenient,” a representative said.

The continuous push towards a digital yuan controlled by the central banks will reduce the control and dominance private companies such as AliPay and Wechat have in mobile payments. To curtail big-company dominance in holding financial data, the Chinese government will launch a full public version of the e-CNY later in the year to battle with the private corporations.

All in all, big institutions have started embracing the CBDC as a form of currency boosting transactions within the country. JD.com, a China-based e-commerce company, announced Monday that some of their employees have started accepting to be paid using the digital currency electronic payment (DCEP) system.

Having participated in the DCEP trials, JD.com integrated the payment solution earlier this year in its business while paying some of its expenses using the digital yuan, a CNBC report stated

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Author: Lujan Odera

Jackson, Tennessee Mayor Wants to Start A ‘Cryptocurrency Revolution’ in the City

Jackson, Tennessee Mayor Wants to Start A ‘Cryptocurrency Revolution’ in the City

It has started, after Miami, Jackson is all set to accelerate the adoption of Bitcoin and crypto, which Scott Conger says can “bridge the wealth gap and financially empower people.”

Scott Conger, the mayor of The City of Jackson, Tennessee, has laser eyes now.

Showing his support for Bitcoin, Conger changed his profile picture on Twitter with the hashtag “Crypto.”

The laser eyes came after Conger shared his support for the cryptocurrency industry over the past few days. He is actually calling for bringing crypto adoption to the region.

“Utilizing dollar cost averaging in appreciating assets, like cryptocurrency is one way we bridge the wealth gap and financially empower people. Another reason to bring Crypto adoption to the City Jackson TN,” said Conger in a tweet earlier this week.

Conger has actually been in talks with several people from the crypto space, including David Schwartz, the project director at Litecoin Foundation.

In a separate tweet, while thanking Schwartz for his insights, Conger shared that they have been making progress on the adoption of digital assets in the city.

“The future is bright in Jackson, and Crypto is lighting the way!” he added.

In response to Schwartz looking “forward to helping Jackson become the envy of Tennessee,” Conger said, “Let’s start the cryptocurrency revolution!”

He has constantly been tweeting about bringing crypto and “financial empowerment” to Jackson, which he says is “in a prime position to lead the way” in Bitcoin and cryptocurrency adoption.

Miami has already gone full-on crypto with Mayer Francis Suarez proposing paying city employees with BTC and giving the public the option to pay their taxes in the crypto asset.

Danielle Cohen Higgins, a county commissioner, also introduced a resolution to the Miami-Dade Infrastructure, Operations, and Innovations Committee to create a 13-member cryptocurrency task force to examine all the possibilities.

Working on making Miami “crypto forward,” Suarez has been courting tech entrepreneurs to choose the city over Silicon Valley.

Meanwhile, crypto exchange FTX signed a $135 million to name Miami Heat’s home court, FTX Arena. One of Miami’s biggest nightclubs, E11even, has announced it will allow guests to pay for drinks and tables with crypto.

Not to mention, the Bitcoin conference with speakers including Twitter’s Jack Dorsey, venture capitalist Chamath Palihapitiya, pro skater Tony Hawk, and Suarez himself has been moved from Los Angeles to Miami

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Author: AnTy

House Republican Leader Urges Govt. to ‘Better Start Understanding’ Bitcoin

House Republican Leader Urges Govt. to ‘Better Start Understanding’ Bitcoin

“I do not want America to fall behind. I want the next century to be ours,” said Congressman Kevin McCarthy. A former CIA acting director also came in support, saying, “most illicit activity still takes place in the traditional banking system and not cryptocurrency.”

House Minority Leader Kevin McCarthy says regulators can’t ignore Bitcoin anymore. The day the price of Bitcoin surges as high as $63,775 on Coinbase, the Congressman appeared on CNBC to talk about the largest cryptocurrency. McCarthy said,

“Those who regulate, those who are in government that make policy better start understanding what it means for the future because other countries are moving forward, especially China.”

“I do not want America to fall behind. I want the next century to be ours.”

Recently, venture capitalist Peter Thiel also talked in the same regard when he said,

“I do wonder whether bitcoin should be thought of as a Chinese financial weapon against the U.S. It threatens fiat money, but it especially threatens the U.S. dollar.”

Commenting on Treasury Secretary Janet Yellen and Federal Reserve Chairman Jerome Powell calling Bitcoin “speculative” and taking a cautious approach to it, the California Republican said regulators tried to ignore crypto and make it go away, but they can’t anymore now that it has grown so much.

Back in 2019, he had said that he liked the decentralized nature of BTC and had also previously advised the government to research how blockchain can improve their tasks.

This week, a former acting director of the Central Intelligence Agency, Michael Morell, also came in support of crypto through his paper “An Analysis of Bitcoin’s Use in Illicit Finance.”

Here, Morell says that Bitcoin isn’t rife with illicit activity, in fact, “most illicit activity still takes place in the traditional banking system,” and that blockchain analysis is actually highly effective in fighting these threats.

Morell said alarmist statements and articles about the threat Bitcoin pose that are circulating are to make headlines and because it is a new technology that is complicated to comprehend, which typically makes people fearful as such, he urges for “more fact-based discussion” on the issue. He wrote on Twitter,

“I hope this study will help advance a transparent and fact-based dialogue between innovators and policymakers to help ensure that we maintain national security without hindering the adoption of potentially revolutionary technologies.”

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Author: AnTy

Goldman Sachs to Start Offering its Wealthy Clients Access to Bitcoin Starting Next Quarter

Goldman Sachs to Start Offering its Wealthy Clients Access to Bitcoin Starting Next Quarter

The bank’s VP says there is “a large contingent of clients” looking for ways to participate in the crypto space and sees Bitcoin as a hedge against inflation.

Goldman Sachs plans to start offering its first investment vehicles for Bitcoin and other crypto-assets to its wealthy clients in the next quarter.

CNBC reported the news on Wednesday, citing an internal company memo seen by it.

In an interview this week, Mary Rich, the new global head of digital assets for Goldman’s private wealth management division, which targets individuals, families, and endowments with at least $25 million to invest, said,

″We are working closely with teams across the firm to explore ways to offer thoughtful and appropriate access to the ecosystem for private wealth clients, and that is something we expect to offer in the near-term.”

Throughout the first quarter, Goldman Sachs has been working towards offering crypto products as it rebooted its bitcoin trading desk from 2018, filed for an ETF to provide indirect exposure to BTC, and reported “rising” client demand.

Another big name Morgan Stanley is reportedly on track to place clients into its bitcoin funds starting in April.

The investment banking giant is, according to Rich, is looking to offer a “full-spectrum” of investments in digital assets that ultimately range from physical bitcoin to derivatives and traditional investment vehicles.

It is basically all about demand for Bitcoin from the customers, and “there’s a contingent of clients who are looking to this asset as a hedge against inflation, and the macro backdrop over the past year has certainly played into that,” Rich said.

She further said that “a large contingent of clients” also feels like we’re at the dawn of a new Internet and are looking for ways to participate in the crypto space.

While the ecosystem is still at its “very nascent stages,” she said, “it will be part of our future.”

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Author: AnTy

Citibank: Bitcoin’s at the ‘Tipping Point’ & The Start of Massive Transformation into the Mainstream

Citibank: Bitcoin’s at the ‘Tipping Point’ & The Start of Massive Transformation into the Mainstream

“The vision of Bitcoin as a force that will transform the world may seem self-evident in just a few more years,” states the report.

In its 108-page long report on Bitcoin, Citibank talks about the leading cryptocurrency at “the tipping point of its existence and the path forward from here may have broad and widening repercussions.”

The first time Citi GPS talked about Bitcoin was back in 2014 when Bitcoin had a mere $6.2 billion market value. At the time, the bank cautioned that it could be replaced by another digital currency.

Much like the Crypto Twitter (CT), the bank likens the journey of Bitcoin with the philosophy of Schopenhauer,

“All truth passes through three stages. First, it is ridiculed. Second, it is violently opposed. Third, it is accepted as being self-evident.”

Large institutional investors and organizations have begun to participate in and support the leading digital currency. “In a search for yield and alternative assets, investors are drawn to Bitcoin’s inflation hedging properties,” reads the report.

The fact that this has happened just a decade in its existence “makes Bitcoin remarkable regardless of its future,” it says. The report adds,

“The vision of Bitcoin as a force that will transform the world may seem self-evident in just a few more years.”

A new payment system which is relying on a decentralized cryptographic approach can also challenge traditional payment rails. Besides being a payment system, Bitcoin is digital gold, a store of value, and a global facilitation currency.

Bitcoin’s decentralized design, lack of foreign exchange exposure, fast (and potentially cheaper) money movements, secure payment channels, and traceability combined with its global reach and neutrality, according to the bank’s executives, could spur it to become the currency of choice for international trade.

More than this, it has become the inspiration for a rapidly evolving blockchain-based economy.

The report aims to provide its users a better understanding of Bitcoin, which has entered a new stage of its journey, according to the bank.

“Bitcoin is at a tipping point, and we could be at the start of massive transformation of cryptocurrency into the mainstream,” concludes the bank.

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Author: AnTy

North America’s First Bitcoin ETF Debuts on TSX with a Whopping 0 Million Volume

The first Bitcoin exchange-traded fund (ETF) of North America has had a roaring start, with $220 million worth of shares exchanged by investors on the first day of going live, which is very well above an ETF’s typical day in Canada.

While there have been several crypto-tracking products in Europe that function like an ETF, they all have been essentially ETPs. Purpose Bitcoin ETF, with a ticker BTCC, is the first Bitcoin product that’s officially labeled as an exchange-traded fund.

The new fund debuted Thursday on Toronto Stock Exchange.

This fund invests directly in “physical/digital Bitcoin,” which is currently trading above $52,000, up 76% YTD.

“There’s sizable untapped interest for a Bitcoin investment that has the benefits of an ETF,” said Todd Rosenbluth, CFRA Research’s director of ETF research, adding it’s unlikely the fund will trade at a significant premium to net asset value (NAV). He added,

“While most ETFs come to market globally with an educational hurdle to overcome, many investors are familiar with what is inside BTCC.”

Meanwhile, the US hasn’t approved a single Bitcoin ETF, although there have been several active filing for the product, including VanEck Associates Corp., NYDIG, and Bitwise Asset Management.

But with the change in leadership at the US Securities and Exchange Commission (SEC), the prospects of the first American Bitcoin ETF are rising. President Joe Biden’s nominee for SEC chairman, Gary Gensler, has the crypto market hopeful and excited as he has taught a class at MIT’s Sloan School of Management called “Blockchain and Money.”

Crypto-related products like Grayscale Bitcoin Trust (GBTC) and Bitwise 10 Crypto Index Fund have seen great demand with $34.22 billion and $900 million in assets under management, respectively.

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Author: AnTy