Tag: Spot

BitMEX’s Daily Spot Exchange Trade Volume Hits $24m Record High

by Blockchain News

Less than 10 days after launching the spot trading option, crypto exchange platform BitMEX reached a new milestone by hitting a daily trade volume of $24 million recently. 

According to Alexander Hoptner, BitMEX’s CEO, the significant 24-hour trade volume illustrated a strong desire by institutional and retail investors to enter the crypto space.

Furthermore, the exchange’s first-time deposits and daily signup went through the roof, jumping by five times since the spot trading option was officially rolled out on May 17.

Hoptner pointed out:

“The influx of new BitMEX users and the trading volume reflects a strong appetite from institutional and retail traders and our long-term bullish views of today’s market environment.”

He added:

“ With the successful addition of Spot, BitMEX is in a strong position to further its expansion to introduce a wider array of offerings – on top of derivatives and interest-bearing products – to support traders around the world, bringing us closer to achieving global recognition of crypt as an asset class.”

BitMEX currently offers seven pairs of cryptocurrencies, including Bitcoin (XBT), Ethereum (ETH), Chainlink (LINK), Uniswap (UNI), Polygon (MATIC), Axie Infinity (AXS), and ApeCoin (APE), all against Tether (USDT).

To expand options in the crypto ecosystem, the exchange’s spot trading joins other strategies like interest-bearing products and derivatives.

Genia Mikhalchenko, the vice president at BitMEX spot, stated:

“We are very excited about the strong start to the launch of our spot markets and really appreciate the supportive feedback and positive responses from existing and new BitMEX traders. The numbers we are seeing internally in the first 10 days reinforce that our decision to go beyond derivatives was the right one.”

The exchange’s average daily value (ADV) also scaled the heights after hitting more than 3 million traded in the first week. 

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BitMEX Launches Spot Exchange Service

by Blockchain News

Crypto exchange platform BitMex announced Tuesday the launch of spot trading for retail and institutional traders.

 

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As mentioned on its official website, users are now able to access the spot trading option by placing coin conversion request-for-quotes (RFQs) through Central Limit Order Books. Users can also take advantage of API trading, as well as on the go with BitMEX Lite when Spot is launched in the mobile app in the next few weeks.

The crypto exchange introduced new products, featuring seven pairs of cryptocurrencies, including Bitcoin (XBT), Ethereum (ETH), Chainlink (LINK), Uniswap (UNI), Polygon (MATIC), Axie Infinity (AXS) and ApeCoin (APE), all against Tether (USDT).

Alexander Höpner, CEO of BitMEX, talked about the latest trading services and said:

“Today, BitMEX is one step closer to providing our users with a full crypto ecosystem to buy, sell, and trade their favourite digital assets. We will not rest as we aim to deliver more features, more trading pairs, and more ways for our clients to take part in the crypto revolution.”

According to the company, the launch comes as BitMEX published research into crypto investors across regions which revealed that the majority (60%) have experienced value growth of up to 50%, and 61% see crypto as “a good way to diversify investments.”  

The latest crypto trading service is a move in response to increasing demand from the user base and to changing market. Nearly 90% of respondents surveyed by the company said they are interested in attending crypto courses. Over 50% of those surveyed aim to invest for long-term returns no matter in crypto or traditional financial products.

The crypto trading platform said it is aiming at expanding its business to become top ten global exchanges in the future. Ultimately, it will allow users to transact between fiat currencies, crypto-assets, and crypto-to-crypto trading pairs.

New trading services undoubtedly bring a positive image to their customer.

Recently, the exchange suffered a series of negative impacts on the market, including the scandal from the three embattled BitMEX exchange co-founders indicted for violating the US Bank Secrecy Act. They were required to pay a combined Civil monetary fine of $30 million.

Reportedly, the trading platform has also undergone a reshuffle by laying off 25% of its staff.

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Would the U.S. Finally Approve Spot Bitcoin ETF in 2022?

by Blockchain News

It is a new year and a time investors are positioning their minds toward new possibilities. Trading in 2021 had experienced its ups and downs in all aspects of the cryptocurrency ecosystem, but historical records were also set.

For instance, Bitcoin printed several all-time highs (ATHs), the latest price level above the $68,000 traced back in November.

Some of the ‘Firsts’ in the Crypto Ecosystem in 2021

The digital currency ecosystem recorded a few events that happened for the very first time in 2021. Tesla’s Chief Executive Officer, Elon Musk came out more openly to back Bitcoin in the first quarter, leading his firm to buy up $1.5 billion worth of the premier coin back in February last year. While this was not the first bullish gesture from an institutional investor, it marked the first from one of the most prestigious auto brands in the world. 

Also in 2021, Bitcoin became the official legal tender of the Central American nation, El Salvador. After facing a number of criticisms from the World Bank and the International Monetary Fund (IMF), El Salvador floated its Bitcoin law on September 7 with assistance from the Central American Bank for Economic Integration (CABEI).

Counting the number of firsts, Chinese authorities stood their ground on the crypto ban in the country and significantly caused a shift in the mining hashrate to sway from China. Regulations in the United States were a matter of mild concern, but mostly on the productive side as the SEC approved the trading of ProShares Bitcoin Futures-based Exchange Traded Fund (ETF).

Hopes for a Spot Bitcoin ETF this Year

America is becoming more aware of the benefits and impacts of digital currencies, and the SEC is not oblivious to this fact. While the market watchdog had done the best it could do in the past year to approve ProShares Futures ETF, the gesture has sent more fund managers to keep hopes alive that at least one of the tens of Bitcoin spot ETF applications filed with the SEC will gain approval this year.

From Fidelity to Grayscale to Bitwise amongst others, the race to float an actual Bitcoin ETF is just heating up and expectations from the investing community remain high as the year resumes the first trading week in a few hours.

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Would the U.S. Finally Approve Spot Bitcoin ETF in 2022?

by Blockchain News

It is a new year and a time investors are positioning their minds toward new possibilities. The trading in 2021 had experienced its ups and downs in all aspects of the cryptocurrency ecosystem, but historical records were also set.

For instance, Bitcoin printed several all-time highs (ATHs), the latest price level above the $68,000 traced back in November.

Some of the ‘Firsts’ in the Crypto Ecosystem in 2021

The digital currency ecosystem recorded a few events that happened for the very first time in 2021. Tesla’s Chief Executive Officer, Elon Musk came out more openly to back Bitcoin in the first quarter, leading his firm to buy up $1.5 billion worth of the premier coin back in February last year. While this was not the first bullish gesture from an institutional investor, it marked the first from one of the most prestigious auto brands in the world. 

Also in 2021, Bitcoin became the official legal tender of the Central American nation, El Salvador. After facing a number of criticisms from the World Bank and the International Monetary Fund (IMF), El Salvador floated its Bitcoin law on September 7 with assistance from the Central American Bank for Economic Integration (CABEI).

Counting the number of firsts, Chinese authorities stood their ground on the crypto ban in the country and significantly caused a shift in the mining hashrate to sway from China. Regulations in the United States were a matter of mild concern, but mostly on the productive side as the SEC approved the trading of ProShares Bitcoin Futures-based Exchange Traded Fund (ETF).

Hopes for a Spot Bitcoin ETF this Year

America is becoming more aware of the benefits and impacts of digital currencies, and the SEC is not oblivious to this fact. While the market watchdog had done the best it could do in the past year to approve ProShares Futures ETF, the gesture has sent more fund managers to keep hopes alive that at least one of the tens of Bitcoin spot ETF applications filed with the SEC will gain approval this year.

From Fidelity to Grayscale to Bitwise amongst others, the race to float an actual Bitcoin ETF is just heating up and expectations from the investing community remain high as the year resumes the first trading week in a few hours.

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US Congressmen Pushing for SEC Chairman Gary Gensler to Approve Bitcoin Spot ETF

by Blockchain News

US representatives Tom Emmer and Darren Soto are demanding the approval of a spot Bitcoin exchange-traded fund (ETF).

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On Wednesday, November 3, the Congressmen released a letter directed to the US Securities and Exchange Commission (SEC) and its chairman, Gary Gensler.

In the letter, the lawmakers questioned why the SEC has approved the trading of futures-backed Bitcoin ETFs, but not those that trade and track Bitcoin itself.

The two members of Congress noted in the letter: “Last month, the Securities and Exchange Commission (SEC) allowed trading to commence for two Bitcoin futures exchange-traded funds (ETF) that provide exposure to CME-traded Bitcoin futures. We question why, if you are comfortable allowing trading in an ETF based on derivatives contracts, you are not equally or more comfortable allowing trading to commence in ETFs based on spot Bitcoin.”

Emmer and Soto believe that Bitcoin futures ETFs can be more volatile and costly. While they admit approval of Bitcoin futures-linked ETFs is a step forward for millions of US consumers who are demanding access to investing in Bitcoin, they recognized that such “products are potentially much more volatile than a Bitcoin spot ETF and may impose substantially higher fees on investors due to the premium at which Bitcoin futures typically trade, as well as the cost of rolling futures contracts each month.” 

The congressmen further justified that physical Bitcoin ETFs “are based directly on the asset, which inherently provides more protection for investors.”

After rejecting physical Bitcoin EFTs for several years, the SEC approved the trading of bitcoin futures EFs last month. The commission decided because of the potential for Bitcoin spot prices to be vulnerable to fraud and manipulation, which could eventually affect Bitcoin derivatives trading.  

Emmer and Soto stated in the letter: “90.47% of pricing of the CME CF Bitcoin Reference Rate (BRR), which is the pricing index that CME futures-based ETFs use, is made up of the spot Bitcoin exchanges: Coinbase, Kraken, and Bitstamp,” and therefore suggested that if the spot markets are rotten, then derivatives markets will be rotten too.

The representatives clarified that they are not taking sides or overturning Gensler’s arguments that Bitcoin futures derivatives are safer. They stated that unless there are demonstrable and clear advantages of investor protections, “investors should have a choice over which product is most suitable for them and their investment objectives.”

Why SEC Approved Bitcoin Futures Products?

As reported by Blockchain.News in early August, the SEC chairman Gary Gensler signalled his preference towards Bitcoin exchange-traded funds (ETFs) that invest in futures contracts instead of the cryptocurrency itself.

During that time, Mr. Gensler stated that Bitcoin ETFs which invest in futures contracts trade on the Chicago Mercantile Exchange (CME) and are regulated under the Investments Company Act of 1940 – an Act that gives significant investor protection.

His comments were clear that a pure spot Bitcoin is not coming any time soon and those future products would potentially be considered.

In other words, The SEC boss approved Bitcoin futures ETFs because they are products that have been overseen for four years by a US federal regulator, the CFTC, and operate within the regulation called the Investment Company Act of 1940.

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Grayscale hints at plans to convert Bitcoin trust into BTC-settled ETF

by Cointelegraph

Institutional investment giant Grayscale is reportedly considering converting its Bitcoin Trust into a physically settled exchange-traded fund (ETF).

On Sunday, Barry Silbert, CEO of Grayscale’s parent company, Digital Currency Group, hinted that Grayscale is making plans to convert its Bitcoin Trust into a spot-settled Bitcoin (BTC) fund.

After having taken to Twitter to criticize the cash-settled Bitcoin futures ETF recently approved by the United States Securities and Exchange Commission, Bitcoin commentator Preston Pysh chimed in to ask Silbert when Grayscale’s Bitcoin Trust would be converted into a BTC-settled ETF. “Stay tuned,” Silbert responded.

However, Grayscale Bitcoin Trust investors appear to have been unsettled by Silbert’s remarks, with Twitter user Sovereign Individual questioning what a restructure would mean for investors holding shares in Grayscale’s Bitcoin Trust.

“What happens to us Grayscale investors once the spot ETF is approved? Is our investment converted into ETF shares?” they tweeted.

Rumors of Grayscale’s purported ambitions for a Bitcoin ETF began circulating last week after a CNBC report citing anonymous insiders claimed that Grayscale was waiting for the SEC to finally approve a Bitcoin ETF.

On Friday, the SEC announced it had accepted the registration of securities from ProShares Trust’s futures-based Bitcoin exchange-traded fund. ProShares’ ETF offers investors exposure to contracts that speculate on the future price of BTC that are settled in cash.

Related: Grayscale Bitcoin Trust FUD is now over as the last GBTC unlock totals just 58 BTC

Despite the ETF’s approval being cited as the primary catalyst for Bitcoin’s recent bullish market action, many analysts have criticized the fund for its cash-settled structure, instead advocating for the SEC to approve a Bitcoin ETF that is backed by and settled in BTC.

According to Grayscale’s latest holdings update on Friday, the firm boasts $52.6 billion in assets under management — 73% of which is held in the Bitcoin Trust. The data suggests that Grayscale’s Bitcoin stash comprises roughly 620,000 BTC or 3.3% of Bitcoin’s total supply.