Canada Approves Bitcoin ETF, Options Markets Do Not Price $ 100,000 BTC

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Editor’s Note: Welcome to the year of the Ox. Blockchain Bites will not release President’s Day, Monday, February 15.

Three stories

Bull market buzz

North America’s First Bitcoin Exchange Traded Fund Approved by the Canadian securities regulator, a move that some commentators see as opening the door to prosecution by the United States. The U.S. government has been reluctant to approve a bitcoin ETF product, which tracks the price of bitcoin and is traded on an exchange, due to bitcoin’s supposed shallow liquidity and the risks the asset could be manipulated.

Bitcoin Miners Earn Record $ 4.06 Million in just 60 minutes yesterday, according to data from Glassnode. The majority of that revenue came from the bitcoin grant – 6.25 BTC issued roughly every 10 minutes – although some $ 47,000 was collected in network fees.

Related: Reddit, Robinhood and Citadel CEOs to Testify at GameStop Hearing

Bitcoin Options Market Sees 12% Chance Of Prices To Exceed $ 100,000 by the end of December, according to a mathematical metric called the Black Scholes formula. It examines strike prices, call option prices, actual assets, and US Treasuries to determine the fair contract price of an option.

Anyone want to come in?

PayPal CEO Dan Schulman said the payments giant seeks to become a CBDC distributor, if ever a central bank digital currency is launched. “How much do you think [digital wallets] we’ll have in the next two, three, or five years, and we’re a perfect complement to central banks and governments to distribute these digital forms of currency, ”Schulman said at the company’s investor day.

Wall Street lawsuits pressure employers to switch to crypto, according to CNBC. In response to internal questions, JPMorgan Chase co-chair Daniel Pinto reportedly said the bank would consider bitcoin trading if customer demand was ‘there’, which ‘I’m sure it will be at some point’ .

Miami Mayor Francis Suarez floated everything from bitcoin city treasure to employee payment in crypto. Yesterday, however, city commissioners put the brakes on these ambitious plans to first study their impact. The commissioners voted to launch education campaigns in English, Spanish and Creole to educate people about crypto.

Related: 3 reasons why the price of Bitcoin just dropped by $ 3,000

Figure Technologies, a blockchain lending startup, is preparing to create an ad hoc acquisition company (SPAC), aka a “blank check” company. The company, Figure Acquisition Corp. I, will raise $ 250 million to bring a competitive startup to the stock market.

Around the world

Nigerian Securities Commission (SEC) announced Thursday that it has suspended its proposed cryptocurrency regulation in light of the central bank’s decision to ban them, according to a report by Guardian Nigeria. This follows a meeting yesterday in which the Nigerian Senate summoned the country’s top financial regulators to talk about the bill, which had been rejected by the public.

India will give crypto holders three to six month window to cash out, if a proposal to ban cryptocurrency is adopted. The Cryptocurrency and Official Digital Currency Regulation Bill, launched this year, aims to limit private currencies in the country and establish a framework for a national digital currency.

Twitter CEO Jack Dorsey announced on Friday that he would team up with rapper Jay-Z and donate 500 bitcoins (roughly $ 23.6 million) to create a new endowment trust supporting Africa and India. Separately, Dorsey donated $ 1 million to cryptocurrency policy think tank Coin Center, announced Wednesday.

Stakes

Pop bubbles?
Former CFTC chairman Christopher Giancarlo cleared the file on the role of the commodities regulator in the 2017 bitcoin bull market burst this morning on CoinDesk TV.

CoinDesk previously reported that the Trump administration acted to break through the 2017 bubble by paving the way for futures.

“We saw a bubble forming and we thought the best way to fix it was to allow the market to interact with it,” Giancarlo said in late 2019. He said the launch of bitcoin futures contracts “would have the impact of bursting the bitcoin bubble. And it worked.

These comments have led to a conspiracy that US regulators are hostile to the growth of the cryptocurrency industry. Similar questions arose earlier this week, after the Chicago Mercantile Exchange launched the country’s first regulated ether (ETH) futures contract.

Giancarlo tempered these fears this morning. In addition, security and commodity regulators do not have the authority, or the capacity, to have such a heavy hand in the capital markets.

The story is a little more complicated. Derivatives, according to Giancarlo, are an essential part of any mature market.

“The ability to short sell a market is a critical maturation point in the development of any market,” he said, adding that asset prices in the most modern markets are not fixed in the markets in the world. cash, but at a higher financial level. “Bitcoin’s institutional role has made it a real investment grade asset.”

As bitcoin futures deflated the bubble, this was just a good old capitalist price finding.

“[Derivatives] brought the price of bitcoin back to correlate with its fundamental cost of production, ”Giancarlo said. “By 2017, bitcoin had moved away from these fundamentals.”

So what does Giancarlo think of today’s sparkling markets? He did not address the issue directly, but we can again turn to the market itself.

As CoinDesk’s markets reporter Omkar Godbole noted, derivatives traders see a low probability of the market going above six digits by the end of the year.

“With the extreme volatility of the past two months, the market isn’t showing much conviction on how bitcoin will trade for the rest of the year,” Sui Chung, CEO of CF Benchmarks, told Godbole.

Quick bites

  • Grayscale may set up a Yearn Finance token trust, according to a new filing. (CoinDesk)

  • Bitcoin Lightning is reinventing esports. (CoinDesk)

  • Why DeFi Pulse didn’t list 1 inch. (Decrypt)

  • Crypto’s market capitalization is higher than that of some central banks. (Decrypt)

  • Do exchange hacks affect crypto prices? An academic dives. (Protos)

  • “Investing as entertainment” (helloshreyas)

  • The forces that can push banks to build their own stablecoins. (CoinDesk review)

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