Bitcoin investment funds experienced a significant increase in inflows for the second week in a row, with a surge of $78 million. The largest proportion of these inflows went to Bitcoin investment funds, which received $43 million. CoinShares reported that Bitcoin trading volumes also rose by 16% last week. Despite the recent price strength, some investors decided to pour $1.2 million into short-Bitcoin positions.
Ethereum Futures ETF Launch Shows Muted Investor Appetite
The launch of the Ethereum futures ETF in the U.S. saw less than $10 million in its first week, indicating a muted investor appetite. This is in contrast to the strong interest in Bitcoin investment funds, which continue to attract significant capital.
Deribit to Offer Options Tied to Alternative Cryptocurrencies
Deribit, the world’s leading crypto options exchange, has announced plans to offer options tied to alternative cryptocurrencies XRP, SOL, and MATIC. The exchange is also seeking a brokerage license in the European Union. Options provide the buyer with the right, but not the obligation, to purchase or sell the underlying asset at a predetermined price on or before a specific date.
U.S. Department of Justice Requests Restrictions on FTX Founder’s Defense
The U.S. Department of Justice (DOJ) has requested that FTX founder Sam Bankman-Fried be barred from bringing up artificial intelligence company Anthropic’s recent fundraising efforts in his defense against charges. The DOJ alleges that the $500 million investment in Anthropic in 2022 came from customer funds. While the parties have reached an agreement on many issues, the defense team is not allowed to raise any issues related to the Anthropic fundraise. Evidence regarding the current value of the defendant’s investments can only be used to support the argument that FTX customers and/or other victims will ultimately be made whole, which the Court has recognized is an impermissible purpose.
Annualized Premium in Three-Month Bitcoin Futures Trading on Binance
The chart displaying the annualized premium in three-month Bitcoin futures trading on Binance reveals that the premium, representing the return from cash and carry trades, has topped 5%. This surpasses the 10-year U.S. Treasury yield and matches the two-year Treasury yield. Carry trades lost their appeal last year as yields surged, while the bear market saw futures trading at a negligible premium.
Conclusion
In conclusion, the recent surge in Bitcoin investment fund inflows and the increase in trading volumes demonstrate the continued interest in cryptocurrency investments. While the Ethereum futures ETF launch showed less enthusiasm from investors, the expansion of Deribit to offer options tied to alternative cryptocurrencies may provide more opportunities for those looking to diversify their portfolios.
The ongoing legal issues surrounding FTX founder Sam Bankman-Fried highlight the need for transparency and regulation in the cryptocurrency industry. As the market continues to evolve and mature, it is essential for investors to stay informed and make well-informed decisions when it comes to their Bitcoin investments and other cryptocurrency ventures.
