There’s never a dull moment on the blockchain. Here’s what you need to know.
- Bitcoin neares $70K to start the week. Plus, the SEC approved BTC (Bitcoin) options trading, and crypto market watchers are preparing for the U.S. presidential election.
- Onchain gaming moves closer to the mainstream. The newly launched title “Off the Grid” became an instant hit, even topping the Epic Games store.
- This week in numbers. Bitcoin’s latest all-time-high hashrate, ApeCoin’s price gain following a new blockchain launch, and more key stats to know.
Bitcoin prices swing as U.S. election approaches
It’s been a rollercoaster ride for bitcoin so far in October. Less than two weeks ago, BTC was sitting near $60,000. Prices then steadily climbed to just below $70,000 on Sunday, before dipping this week to around $66,000.
Market watchers peg some of the volatility to uncertainty over the upcoming U.S. elections.
Meanwhile, spot BTC ETFs added $2.4 billion in inflows in the six days ending on October 18, with the asset class crossing the $20 billion mark one day earlier.
Here are three more market stories you should know about…
SEC approves BTC ETF options trading
The biggest driver of the 2024 crypto rally was the arrival of spot bitcoin ETFs in January, which spurred a new wave of crypto investment from Wall Street and beyond. Now, even more institutional capital could be poised to flood into crypto.
On Friday, eleven spot BTC funds received SEC approval to allow the listing and trading of options — a form of derivative that allows traders to buy the right to purchase or sell an asset at a specified price in the future. (The biggest BTC fund, BlackRock’s IBIT, had already received the agency’s greenlight.)
For big-money institutional investors, options are important because they allow for strategies that manage risk and potentially amplify returns. As a Bitwise analyst explained to Decrypt, “Options generally lead to an increase in trading activity, prompting better price discovery alongside more liquidity.”
- Wen options? The next step in the approval process involves another regulator, the Commodity Futures Trading Commission (CFTC). But according to a research note from Bitcoin firm NYDIG, spot BTC ETF options trading could begin as soon as the end of the year.
Tokenization continues to transform markets
Financial institutions are making major investments into the tokenization of real-world assets from stocks and T-bills to real estate and artwork.
Why? Because tokens running on smart-contract compatible blockchains can make transactions faster and cheaper, while also creating new opportunities — for instance, fractional ownership of Airbnb rental properties.
BlackRock and Franklin Templeton already have tokenized funds worth around $500 million each. And more players continue to enter the space. This week, British pension-fund manager Legal & General, which manages a staggering $1.5 trillion in assets, is exploring ways to tokenize its flagship fund.
