Plus, Crypto options market has become more 'interdealer' according to Paradigm
The latest moves in crypto markets, in context By Lyllah Ledesma, CoinDesk reporter Was this newsletter forwarded to you? Sign up here. |
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Welcome to Monday! Here's what's happening in crypto today: |
- Grayscale is exploring options to return a portion of capital of its GBTC.
- Sam Bankman-Fried will no longer contest U,S, extradition.
- Former BitMEX CEO Alexander Hoeptner sues the exchange.
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CoinDesk Market Index (CMI): $824 +0.1%
Bitcoin (BTC): $16,737 +0.2%
Ether (ETC): $1,184 +0.2%
S&P 500 futures: 3,889.50 +0.5%
FTSE 100: 7,369.79 +0.5% |
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Treasury Yield 10 Years: 3.48% +0.0
Grayscale Investments is exploring options to return a portion of capital of its Grayscale Bitcoin Trust (GBTC) if the Securities and Exchange Commission refuses to approve its spot bitcoin exchange-traded fund. One option is to offer tender for 20% of outstanding GBTC shares, which are currently trading at a 49% discount to net asset value. Grayscale has been knocked back multiple times in its mission to convert its bitcoin trust into an ETF, with the SEC citing a lack of regulatory oversight in a brief earlier this month. Grayscale is owned by the Digital Currency Group and is a sister company of CoinDesk. |
FTX founder Sam Bankman-Fried will no longer contest extradition to the U.S. from the Bahamas. Bankman-Fried was arrested in the Bahamas following a U.S. request Dec. 12, after the crypto exchange's Nov. 11 bankruptcy filing. He faces charges from the Department of Justice, Securities and Exchange Commission, and Commodity Futures Trading Commission, including allegations that he misused customer funds and misled investors. After being refused bail, Bankman-Fried faced being held at the jail until an extradition hearing on Feb. 8 in conditions known to be dangerous and overcrowded. Former BitMEX CEO Alexander Hoeptner has sued the cryptocurrency derivatives platform for $3.4 million for breach of contract and wrongful termination. Hoeptner joined the Seychelles-registered exchange in January 2021 at a time when top officers at HDR Global Trading Limited, the owner and operator of BitMEX, were embroiled in a lawsuit that accused the founders of facilitating unregistered trading. It was previously reported that Hoeptner left the company in October 2022, without further details. |
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Since 2013, Grayscale has been an industry leader in offering investors secure and regulated access to crypto. Grayscale's suite of publicly-traded products helps investors access crypto while removing the operational burdens of buying, storing, and safeguarding cryptocurrencies directly. Many of Grayscale's products are SEC-reporting, which means adhering to standard reporting practices and offering heightened disclosures to provide investors with more information when making investment decisions. Grayscale's products are further supported by a network of best-in-class service providers and partners. Investors can access our products directly via a ticker symbol in certain investment and retirement accounts, allowing them to diversify their portfolios into crypto with ease. Experience crypto differently with Grayscale. Investing involves risks and the possible loss of principal. Visit grayscale.com for more information. |
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Market Insight: Options Market Has Become More 'Interdealer' Since FTX's Blowup |
The collapse of Sam-Bankman Fried's digital assets exchange, FTX, has had industry-wide ramifications, one of them being market makers increasing their share of crypto options trading volumes. As of Friday, the notional value of the month-to-date interdealer flow on the institutional-grade, over-the-counter (OTC) communications platform Paradigm was $633 million, or 43.5% of the total crypto options trading volume of $1,455 million. That's the highest since at least January this year. "More buy-side takers (hedge funds/family offices/HNW) are sitting on the sidelines, and a higher proportion of Paradigm volumes is occurring between market makers," Paradigm tweeted, adding that the options market feels more "interdealer" than before FTX's meltdown. |
- The chart shows the dollar amount stolen/swindled through hacks and exploits from January to November.
- More than $3.6 billion in funds have been drained, making 2022 a record-setting year for hacking activity.
- More than 80% of that amount has been stolen from DeFi attacks.
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Disclaimer: The information presented in this message is intended as a news item that provides a brief summary of various events and developments that affect, or that might in the future affect, the value of one or more of the cryptocurrencies described above. The information contained in this message, and any information liked through the items contained herein, is not intended to provide sufficient information to form the basis for an investment decision. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments. |
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