It was another busy week for the cryptocurrency market. MicroStrategy buys an additional $4.6 billion of Bitcoin, BlackRock’s Bitcoin ETF options bring in $2 billion on day one, Donald Trump’s transition team considers first White House cryptocurrency office, Justin Sun Buy bananas for $6.2 million. SEC Chairman Gensler resigned on January 20 and Bitcoin continued its rally, nearing $100,000, with U.S. spot Bitcoin ETFs seeing total net flows of $30 billion.
Let’s take a look at this and summarize what’s been happening in the cryptocurrency space this week.
MicroStrategy buys an additional $4.6 billion worth of Bitcoin.
MicroStrategy has been investing in Bitcoin for a long time, adding more assets to those already performing impressively.
On November 18, the company announced that it had purchased an additional 51,780 BTC. This addition brings MicroStrategy’s total Bitcoin holdings to 331,200. This news comes after company founder Michael Saylor announced the purchase of more than $2 billion in Bitcoin.
The publicly traded company, whose stock MSTR soared as Bitcoin prices surged, acquired $16.5 billion worth of BTC. The average purchase price is $49,874, putting the company in billions of dollars in profits as the benchmark cryptocurrency trades near all-time highs.
BlackRock’s Bitcoin ETF Options Bring in $2 Billion on First Day
BlackRock’s launch of options contracts on the iShares Bitcoin Trust (IBIT) reached nearly $2 billion on its first day of trading.
Bloomberg ETF analyst James Seyffart said of X:
“The final tally for $IBIT’s first day of options was just under $1.9 billion in notional exposure traded across 354,000 contracts. 289,000 were calls and 65,000 were puts. “The ratio is 4.4:1.”
Update: Final tally $GOThe first day of options represents just under $1.9 billion in notional exposure, with 354,000 contracts traded. 289,000 were calls and 65,000 were puts. The ratio is 4.4:1. These options were almost certainly part of the transition to a new environment. #Bitcoin All-time high today pic.twitter.com/IN3s9hajJ2
— James Seyff (@JSeyff) November 19, 2024
“$1.9 billion on day one is an unprecedented amount,” said Eric Balchunas, senior ETF analyst at Bloomberg.
As a result, BlackRock’s options may have helped push Bitcoin to a record above $94,000.
The launch of BlackRock’s options contracts comes as institutional interest in Bitcoin grows. IBIT options allow investors to gain exposure to a new investment approach while managing risk through call and put options without owning the underlying asset.
At the end of October, BlackRock’s IBIT reached $30 billion in net assets in 293 days. Two weeks later, in 211 days, net assets reached $40 billion, showing growing interest in cryptocurrency investment.
Donald Trump’s transition team considers first White House cryptocurrency office
As Donald Trump prepares to enter the White House, reports are afoot that his transition team is making senior appointments to oversee the growing digital asset industry. By doing so, foreign regulations are carried out at the highest level of government.
No final decision has been made, but Trump’s team has reportedly consulted with several cryptocurrency leaders, including former Binance.US CEO Brian Brooks and Coinbase CEO Brian Armstrong.
Whoever gets the job, industry advocates are pushing for the role to be one that gives Trump significant access. In doing so, the industry’s concerns are heard at the highest levels of power.
Justin Sun buys bananas for $6.2 million
Tron founder Justin Sun bought a banana taped to the wall earlier this week for $6.24 million.
Sotheby’s, which hosted the auction, started bidding at $800,000 but jumped into the millions.
Sun, founder of Tron, said of X: “I believe this work will spark further thought and discussion in the future and will become part of history. “I am honored to be the proud owner of Banana and look forward to it sparking further inspiration and impact on art lovers around the world.”
I’m so happy to announce that I purchased a banana🍌!!! @SpaceX @Sotheby’s My name is Justin Sun. We are pleased to share the news of the successful acquisition of Maurizio Cattelan’s iconic work, Comedian, for $6.2 million. This is not just a work of art. It represents a cultural phenomenon… pic.twitter.com/lAj1RE6y0C
— HE Justin Sun 🍌 (@justinsuntron) November 21, 2024
Before the auction, Sotheby’s estimated the work would sell for between $1 million and $1.5 million.
SEC Chairman Gensler resigns on January 20
Gary Gensler, Chairman of the Securities and Exchange Commission (SEC), announced that he will resign effective January 20, 2025.
Gensler will assume the role of SEC Chairman in 2021 following Joe Biden’s appointment as President of the United States. Since taking on this role, the SEC has filed several lawsuits against cryptocurrency companies, including Binance, Coinbase, Kraken, and Ripple.
His departure from the cryptocurrency market will undoubtedly be seen as a breath of fresh air, as the SEC under his leadership has been known for its enforcement-by-execution regulatory approach to cryptocurrencies.
As the rally continues, Bitcoin approaches $100,000.
On November 22, Bitcoin surpassed $100,000 for the first time, continuing its strong run since early November.
Bitcoin reached $99,500 earlier this week following the launch of ETF options, according to data from CoinMarketCap. A day ago, Bitcoin surpassed $98,000.
Joe Constori, Head of Growth at Theya and Institutional Head of Bitcoin Layer, said Bitcoin will reach $100,000 at X.
“That property was always destined to become a multi-trillion dollar base layer monetary asset. “It took 15 years for prices to catch up,” he added.
Earlier this week, Bitcoin was trading at around $93,000.
U.S. spot Bitcoin ETF exceeds $30 billion in total net outflows
The U.S. Spot Bitcoin ETF recorded total daily net inflows of $1 billion on Friday as Bitcoin moved closer to $100,000.
BlackRock’s iShares Bitcoin Trust (IBIT) attracted the most inflows, attracting $608.41 million, according to SoSoValue data. Fidelity’s FBTC followed with $309.5 million. Bitwise’s Bitcoin ETF raised $68 million, while Ark and 21Shares’ ARKB raised $17.18 million.
The only ETF to experience negative outflows was Grayscale’s GBTC AT $7.8 million.
Since their January launch, when they were approved by the U.S. Securities and Exchange Commission (SEC), 12 spot Bitcoin ETFs have generated a total of $30.35 billion in revenue.