$2.4 Billion in Expiring BTC and ETH Contracts

Audy Castañeda
-
0
$2.4 Billion in Expiring BTC and ETH Contracts

Nearly $2.4 billion in cryptocurrency options expire today, with 36,000 Bitcoin options contracts. The face value of Bitcoin contracts today is around $1.68 billion, with a put/call ratio of 0.9 indicating a balance between bulls and bears. Ethereum options also expiring today have a face value of $680 million, with significant open interest at the $2,500 and $3,000 strike prices.

Friday is crypto options expiration day, with over $2 billion in BTC and ETH contracts set to liquidate or roll over today. Crypto markets have been surging in spot ETF approvals this week, but can they continue?

Around 36,000 Bitcoin options contracts will expire on January 12. The big expiration event is bigger than last week, which saw $1 billion worth of contracts expire with little impact on the markets. As it may be recalled, January 5 was the expiration day of Bitcoin options, with almost $1 billion in contracts.

Bitcoin Options Data Shows Major OI at $50,000 Strike Price

The face value of the current large tranche of Bitcoin contracts is around $1.68 billion. Furthermore, the put/call ratio for this lot is 0.9, which means that the bulls and bears are evenly selling long and short contracts. The maximum weak point for this set is $45,000, a little lower than the current spot market price.

According to Deribit, there is still a lot of open interest at the $50,000 strike price with $1.2 billion in call options. With such a large concentration of call options at this price, derivatives traders anticipate BTC prices to rise in late January.

Greek’s Live commented that Bitcoin spot ETF approvals were approved this week as expected. However, repeated fake and breaking news made the market “frequent and markedly volatile.” The hack on the SEC’s X account generated various speculations about its cause. Some speculated, half-jokingly, that an SEC “intern” sent the tweet by mistake.

Implied volatility across all major timeframes declined significantly due to lower-than-expected market volatility, he added. The long-term outlook is strong, with a lot of incremental capital flowing into the cryptocurrency market, Greek’s Live noted before concluding as follows:

“But in the short term there is still significant uncertainty in the market with a number of factors at play, and strong volatility, like this week, could continue for several days.”

Most investors considered the impact of the ETF news (fake or real) on Bitcoin to be limited, he noted. In addition, many investors “have carried out the operation of reducing leverage and positions,” he said before stating that this was an “early selling of the news” event.

Ethereum Options Expiration

The big batch of Bitcoin options expiring today. 262.00 million Ethereum contacts will also expire. The face value of these options is $680 million and the put/call ratio is 0.64. These have a soft top of $2,400, which is also a bit lower than current spot prices. Additionally, there is a lot of open interest with call options at ETH strike prices of $2,500 and $3,000, according to Deribit.

Crypto markets are up 1% on the day to $1.86 trillion, although they are not likely to be affected by the expiration of options derivatives. Bitcoin remains at $46,262, while Ethereum, which has outperformed this week, was recently trading just above $2,600.

Ethereum price has, in fact, gained more than 5% since the fake news incident. As a result, ETH prices have approached their 21-month high of $2,400. “Ethereum over here just doing what it wants through all of this,” observed cryptocurrency trader @nebraskangooner.

By Audy Castaneda

US Department of Justice Will Hand down Sentence to SBF on March 28

Leonardo Perez
-
0
US Department of Justice Will Hand down Sentence to SBF on March 28

The United States Department of Justice will sentence Sam Bankman-Fried on March 28 at 9:30 a.m. in New York. The hearing for the SBF sentence will be public and open to the public; the court will continue to collect testimonies from those affected by FTX. At the last minute, Sam Bankman-Fried renewed his defense and hired Torrey Young and Marc Mukasey of Mukasey Young LLP.

The United States Department of Justice, through the Court for the Southern District of New York, confirmed that it will hand down a sentence against the former CEO of FTX, Sam Bankman-Fried, on March 28 at 9:30 a.m.

Following a trial that lasted approximately a month, in October 2023, a jury convicted Bankman-Fried of seven criminal counts, including wire fraud, wire fraud conspiracy, securities fraud, commodity fraud conspiracy, and money laundering conspiracy. money.

The Southern District of New York announced to customers defrauded by FTX, exchange investors and Alameda Research to attend the final ruling of Bankman-Fried. The sentence will be handed down in Courtroom 21B of the United States Court, at 500 Pearl Street, in New York.

SBF: Department of Justice Continues Collecting Testimonies from FTX

The US Attorney SDNY account reiterated that SBF will be sentenced for seven proven counts of fraud and conspiracy to defraud and deceive FTX customers, investors and lenders of Alameda Research.

The sentence against Sam Bankman-Fried will be handed down by the Manhattan Court, led by Judge Lewis Kaplan. The Department of Justice stated the following:

“The proceeding is open to the public and victims are entitled to a reasonable opportunity to be heard in advance of sentencing. BANKMAN-FRIED faces a maximum of 110 years in prison, and financial penalties including a fine, forfeiture, and the award of restitution to victims.”

With the sentence, the New York Court seeks restitution to the victims, which will be determined by Judge Lewis Kaplan on March 28. He even invited people who feel aggrieved by SBF to send a victim impact statement to the email: [email protected].

In November, a Manhattan federal judge found that the former FTX CEO defrauded his clients and the hedge fund’s lenders, even accusing him of “perpetuating one of the largest financial frauds in American history.”

USA: SBF Changes His Legal Defense Overnight

After the time and place for sentencing against the former FTX CEO was revealed, SBF announced the hiring of hiring new defense attorneys ahead of his sentencing hearing. They are Torrey Young and Marc Mukasey of Mukasey Young LLP, who will represent Bankman-Fried between January and the end of March. SBF’s legal team submitted a sealed document, which could suggest a possible appeal of his November conviction.

The former CEO of FTX would seek to exhaust resources and stop the decades of prison he would receive; experts even rumor that the sentence would aspire to life imprisonment. According to Bloomberg, Marc Mukasey has a history of defending white collar cases.

The Marc Mukasey are big cases of financial market manipulation and high-profile corporate figures, such as Nikola founder Trevor Milton. His father, Michael Mukasey is a former New York prosecutor, who represented former US President Donald Trump.

It was previously reported that Sam Bankman-Fried faces up to 115 years in prison after pleading guilty on the afternoon of November 2.

Former Alameda Research CEO Caroline Ellison, as well as exchange co-founder Gary Wang and FTX chief technology officer Nishad Singh, had previously pleaded guilty.

By Leonardo Perez

JPMorgan CEO’s Harsh Criticism of BTC Surprises Amid Bitcoin ETF Participation

Audy Castañeda
-
0
JPMorgan CEO’s Harsh Criticism of BTC Surprises Amid Bitcoin ETF Participation

JPMorgan Chase CEO Jamie Dimon reiterated his longstanding skepticism about BTC despite his company’s role in the BlackRock Bitcoin ETF.

In a recent interview with Fox, JPMorgan CEO Jamie Dimon once again expressed his negative views on Bitcoin and the cryptocurrency industry in general, citing concerns about illicit activities. This contradictory stance comes as JPMorgan’s participation in Grayscale’s proposed Bitcoin exchange-traded fund (ETF) is being considered as an authorized participant.

JPMorgan CEO Dimon’s Criticism of Bitcoin

During the interview, Dimon commented: “I have always said that Bitcoin has no value. Actual use cases are sex trafficking, tax evasion, money laundering and terrorist financing. “It’s not just about people buying and selling Bitcoin.”

These comments echo his previous statements made during a Senate Banking Committee hearing where he expressed his opposition to cryptocurrencies and suggested shutting them down if he were in government.

Previously, in 2021, Dimon stated that “Bitcoin BTC -2.80% is worthless. Our clients are adults, they disagree, that’s what makes markets, so if they want to have access to buy Bitcoin, we can’t custody it but we can give them legitimate, as-clean-as-possible access.”

The CEO of JPMorgan had previously called Bitcoin “an exaggerated fraud,” although he later retracted his comments. However, his recent statements suggest that distrust of cryptocurrencies persists in the financial leader.

Interestingly, Grayscale Investments, the asset management firm behind one of the proposed Bitcoin ETF applications, is in talks with several companies, including JPMorgan, for possible participation in the ETF.

JPMorgan is being considered an authorized participant, responsible for creating and redeeming shares of the fund. JPMorgan is also named as an authorized participant for the Invesco Galaxy Bitcoin ETF.

Authorized participants play a crucial role in ensuring that the ETF’s share price aligns with the underlying assets and provides liquidity.

Conflicting Narrative

JPMorgan Securities has also been named an authorized participant for BlackRock’s proposed Bitcoin ETF, along with Jane Street Capital. Despite Dimon’s critical stance on Bitcoin, JPMorgan’s possible involvement in multiple Bitcoin ETF initiatives indicates a conflicting narrative within the institution.

Comments made by Dimon regarding Bitcoin’s association with illicit activities have been met with criticism from industry observers. While concerns remain about the illicit use of cryptocurrencies, proponents argue that the technology’s transparency and traceability make it better suited to combating financial crimes compared to traditional systems.

As the cryptocurrency community awaits regulatory approval for Bitcoin ETF applications, the involvement of JPMorgan and other major institutions in these initiatives remains a topic of interest. The possible inclusion of traditional financial players in the cryptocurrency space could mean a significant change in the perception and acceptance of digital assets by the mainstream financial industry.

In anticipation of the upcoming ruling by the US Securities and Exchange Commission (SEC) regarding ETF filings proposed by major asset managers around the world, Bitcoin has seen a recovery, surpassing the $46,000.

BTC is currently trading at $46,400, reflecting an uptrend of 9.8% over the past seven days, with a slight decline of 0.7% over the past 24 hours. This drop can be attributed to the spread of fake news on Tuesday, falsely claiming an SEC approval announcement. However, the regulator clarified that the SEC’s X account was compromised.

By Audy Castaneda

Mexican Representative Proposes Creation of Sanctions for Criminal Use of AI

Leonardo Perez
-
0
Mexican Representative Proposes Creation of Sanctions for Criminal Use of AI

The Mexican congressman seeks to punish those who misuse AI to cause harm to third parties with 2 to 8 years in prison. Miguel Torruco Garza sent the initiative to the Justice Commission, where it stipulates that AI is the software that is developed using one or more techniques. Torruco Garza admitted that AI can generate negative situations, which must be addressed “and minimized.”

The Mexican representative of the Morena party, Miguel Torruco Garza, proposed adding chapter III called “Criminal Use of Technology Called Artificial Intelligence” to articles 211 of the Federal Penal Code, on the use of AI.

Miguel Torruco Garza will seek to sanction the “misuse” of AI and establish prison sentences of two to eight years, as well as 100 to 800 days of fines for the incorrect use of technologies related to AI. To this end, he proposes adding articles 211 Bis 8 and 211 Bis 9.

Mexican Congressman Seeks to Sanction Those Who Do Harm with AI

The Mexican congressman sent the initiative to the Justice Commission, where he stipulates that AI is the software that is developed using one or several techniques: machine learning strategies, supervised learning, unsupervised language, deep learning, among others.

“2 to 8 years in prison and a fine of 100 to 800 days will be imposed on those who, through the use of AI, generate damage or harm to the public image or reputation of people, commit fraud to the detriment of a natural person.” or moral and falsify official documents, in order to cause any financial damage to the detriment of another person.”

Since 2023, the Mexican Chamber of Deputies and Senate have discussed a framework to regulate various aspects of AI in the country. Months ago, the National Artificial Intelligence Alliance (ANIA) urged the regulation of cybersecurity in AI.

Some of the topics of the tables that were addressed to seek regulation of AI were the following:

  • Public policies and rights.
  • Education and labor markets.
  • Cybersecurity and risk management.
  • Genders, inclusion and social responsibility.
  • Infrastructure and data.
  • Innovation and industry.

Miguel Torruco Garza stated that he seeks to apply prison sentences for those who expose, distribute, reproduce, transmit, market or exchange intimate images, audios or videos of a person or group of people without their consent. He admitted that AI can generate negative situations, which need to be addressed “and minimized” through adequate regulation.

AI Could Cause a Reduction in the Workforce

Torruco Garza mentioned the research titled “The impact of AI: revolution or risk?”, where he talks about the potential risks of AI, such as job displacement, bias and discrimination, as well as privacy, security, dependency, manipulation and misinformation.

Months ago, UNAM academics had warned that the workforce could have a significant impact due to AI. They accused that more than 50% of work in Mexico is prone to automation. In other words, machines and robots could perform some routine jobs.

At the time, José Manuel Márquez Estrada, academic secretary of the UNAM Economic Research Institute, noted the following:

“We are waiting to see what is going to happen, whether this artificial intelligence will come to displace a lot of labor or not, or whether the solution is not to worry, but to think about training, the use of these technologies that do the job more efficient”

Not only in Mexico, 38% of CEOs and managers in Latin America would have invested in generative AI in 2023, it has already helped solve core problems of their businesses, reduce costs and even increase productivity.

By Leonardo Perez

Ethereum Rises 10%, Altcoins Jump 30%, While Bitcoin (BTC) Only Rises between $500 and $46,500: Is BlackRock Betting on Ethereum ETFs?

Audy Castañeda
-
0
Ethereum Rises 10%, Altcoins Jump 30%, While Bitcoin (BTC) Only Rises between $500 and $46,500: Is BlackRock Betting on Ethereum ETFs?

Ethereum and altcoins rise after SEC approval, overshadowing Bitcoin’s modest gains. The introduction of BlackRock’s Ethereum ETF signals a shift toward widespread acceptance of cryptocurrencies.

Market reaction to the recent SEC approval has been overwhelmingly positive, with significant gains in Ethereum and several altcoins. Since the SEC approval, Bitcoin has seen a modest rise of $500. In contrast, altcoins like ETC, Arbitrum, and Mantle are up 30%, 20%, and 20% respectively. Trading and inflows for Bitcoin ETFs will begin today, so these funds have not yet affected Bitcoin ETFs.

Ethereum (ETH) has notably gained attention following BlackRock’s decision to file for an ETH ETF, eclipsing Bitcoin (BTC). Below are more details on the development and factors influencing Ethereum upgrades.

Ethereum ETF: Diverse Global Market with Key Players.

The growing interest in Ethereum ETFs in the US reflects a growing global market trend for Ethereum-based financial products. For example, Switzerland’s 21Shares manages 148,000 ETH, demonstrating the diversity of this market. Grayscale’s Ethereum (ETHE) trust fund, with over 3.1 million ETHE, is a major market leader.

Revitalization of Ethereum Investments by Funds

Since mid-October, investment funds, especially German ones, have actively increased their holdings in Ethereum (ETH). This increase in ETH investments coincides with the period following BlackRock’s ETF filing. The recent influx of investments has almost completely offset previous outflows, indicating a resurgence of investor confidence in Ethereum.

Potential Impact of Major Asset Managers’ Investment in Ethereum

If major asset managers like BlackRock invest 1% of their $44.48 trillion in Ethereum holdings, it could increase Ethereum’s market capitalization almost threefold, potentially raising the price of ETH to around $6,200. This highlights how large-scale investments, especially given the reduction in Ethereum supply, could significantly impact its market.

BlackRock and Wall Street Waiting for an Ethereum ETF?

According to a Medium report, the interest in Ethereum ETFs is about more than just diversifying asset classes; it’s about introducing cryptocurrencies into the mainstream. BlackRock’s recent filing for an Ethereum spot ETF suggests that such an ETF could be just around the corner. This move signals a significant shift in traditional finance’s approach towards cryptocurrencies, with an increasing focus on Ethereum. The approval of this ETF by the SEC would be a milestone in the acceptance of digital assets by the financial world, providing a regulated way to access Ethereum.

Ethereum’s Prospective Growth: An Outlook for 2024

In late 2023, despite Ethereum’s stagnation, a significant investment in the ETHE fund indicated continued investor interest. Ethereum, overshadowed by Bitcoin, appears poised for a big rally. ETH price is currently $2,584.91 up 8.94% in 24 hours and 15.99% over the past week.

If Ethereum outperforms Bitcoin in 2024, it will likely be due to strategic institutional investments and the progressive decrease in Ethereum supply, which will influence market dynamics.

According to CryptoPredictions, Ethereum started in January 2024 at $2,279,941 and is predicted to end the month at $2,499,909. During January, the maximum forecasted ETH price is $2,564.737 and the minimum price is $1,744.021.

Meanwhile, the ETH Price is forecast for today (11.01.2024) to be in the $1,969.580 – $2,896.441 price range. Ethereum is predicted to end today at $2,317.153.

By Audy Castaneda

SEC Approves Bitcoin ETFs in the United States

Audy Castañeda
-
0
SEC Approves Bitcoin ETFs in the United States

The US stock exchange authorities (SEC) authorized on Wednesday, January 10, the first investment fund associated with Bitcoin, a decision considered a fundamental stage for cryptocurrencies to be adopted.

After a long wait, a total of eleven ETFs have formally received approval from the Securities and Exchange Commission (SEC). This occurred in the middle of the hack of the official SEC account on X, when an “unauthorized” post generated an atmosphere of hype after announcing the false approval of the funds. The milestone event comes during an iconic date for the crypto community.

According to what was published by the SEC, eleven Bitcoin spot ETF applications were approved. Among them are Grayscale, Bitwise, Hashdex, iShares, Valkyrie, ARK 21Shares, Invesco Galaxy, VanEck, WisdomTree, Fidelity and Franklin Templeton, which are expected to start trading this Thursday.

In the midst of this scenario, the president of the SEC, Gary Gensler, stated the following in an official statement:

“While we approved the listing and trading of certain spot bitcoin ETP shares today, we did not approve or endorse bitcoin. Investors should remain cautious about the myriad risks associated with bitcoin and products whose value is tied to crypto.”

Good News for Everyday Investors

Before the approval finally took place, everyday investors who intended to buy and sell digital currencies had two choices, trading on crypto exchanges and thus take on high transaction fees, or buying products that track bitcoins in more indirect ways.

Gensler added that “Today’s approval will include certain protections for investors,” among which are the following:

  • “Sponsors of bitcoin ETPs will be required to provide full, fair, and truthful disclosure about the products. Investors in any bitcoin ETP that is listed and traded will benefit from the disclosure included in public registration statements and required periodic filings.”
  • “The products will be listed and traded on registered national securities exchanges.”
  • “The Commission staff is separately completing the review of registration statements for 10 spot bitcoin ETPs simultaneously, which will help create a level playing field for issuers and promote fairness and competition.”

What Next? Reactions So Far

Standard Chartered Bank predicts that, by the end of this year, spot Bitcoin ETFs in the United States would have a stash between 437,000 and 1.32 million BTC. Thus, the banking giant predicts that this important figure could translate into inflows of between $50 billion and $100 billion. It does not rule out that the price of Bitcoin could reach $200,000 by the end of 2025.

On the other hand, analyst and trader Michaël van de Poppe shared his short-term BTC price prediction. The influencer noted that the impact of the Bitcoin spot ETFs approval will have a reduced impact: “Maybe a wick towards $48k+ again and then we’ll be done.”

Concerns over the possible negative effects of today’s approval have emerged. Dennis Kelleher, president of Better Markets, a Washington D.C.-based advocacy group for tighter financial regulation, has argued that this decision “is going to open the floodgates for every type of crypto token and scam you can think of that’s going to be trying to get SEC approval.”

The Bitcoin spot ETF approval milestone comes during an iconic date for the crypto community. Exactly 15 years ago today, Hal Finney (a leading candidate to be Satoshi Nakamoto) became one of the first people to receive BTC.

By Audy Castaneda

1...336337338...1,654Page 337 of 1,654