First Mover Americas: Traders Place Big Bets on Ether for Second Half of 2023
The latest price moves in crypto markets in context for July 3, 2023.
This article originally appeared in , CoinDesk’s daily newsletter putting the latest moves in crypto markets in context..
Ether, the token of the Ethereum blockchain, jumped 61% in the first six months of the year. Traders are now the rally could extend in the second half. On Friday, an investor purchased roughly 63,250 "bull call spreads" tied to ether and due for expiry on Dec. 29, according to data source Amberdata. The trade involved the sale of a call option at the $2,500 strike price to partly fund the purchase of a call option at the $1,900 strike. The strategy cost an initial $10 million because the trader entity shelled out more to buy the $1,900 call than they received from selling the $2,500 call. A call buyer gets protection from the seller against price rallies. In return, the seller receives an upfront premium from the buyer.
The U.S. Securities and Exchange Commission’s (SEC) stance on spot bitcoin exchange traded funds (ETF) is a difficult one to hold, and the probability for approval is fairly high, brokerage firm Bernstein said in a research Monday. Bernstein notes that the SEC already allows futures-based bitcoin ETFs, and recently approved on the premise that futures pricing comes from a regulated exchange like the CME. According to analysts led by Gautam Chhugani, the SEC believes that a spot bitcoin ETF would not be dependable because the “spot exchanges (e.g. Coinbase) are not under its regulation, and thus spot prices are not reliable and prone to manipulation.”
Crypto service providers in Singapore would to deposit customer assets into a statutory trust before the end of the year for safekeeping, the Monetary Authority of Singapore (MAS) on Monday. The requirement comes after the MAS received around enhancing customer protection initiated in October 2022. "This will mitigate the risk of loss or misuse of customers’ assets, and facilitate the recovery of customers’ assets in the event of a DPT (Digital Payment Token or Cryptocurrency) service provider’s insolvency," the central bank said. The MAS has also restricted cryptocurrency service providers from facilitating lending and staking of tokens by their retail customers but institutional and accredited investors could continue to take advantage of these services.
Edited by Sheldon Reback.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Bitget Joins Forces with TRON DAO, Acquires $10M in TRX Tokens
VIPBitget VIP Weekly Research Insights
The Trump family's World Liberty Financial has recently made frequent investments in high-quality crypto assets, reflecting strong confidence in the future of the crypto industry. With Trump successfully elected as President and preparing to take office, his previously pro-crypto statements, if implemented, could further drive the growth of the crypto sector. Meanwhile, the projects selected by World Liberty Financial boast strong fundamentals and promising growth potential, positioning them as key players in the crypto space that stand to benefit from the industry's continued expansion.