Bitcoin Hits All-Time High After BTC ETF Options Debut, Memecoins Make Moves, and MicroStrategy Continues To Surge
Welcome to our Weekly Market Update. Explore weekly crypto price movements, read a quick digest of notable market news, and dive into a crypto topic — this week we learn more about recurring buys.
Takeaways
Options Trading for Spot BTC ETF Goes Live for the First Time
Options trading for a US spot bitcoin ETF became available for the first time this week, with BlackRock’s IBIT ETF becoming the first to allow options trading on their fund. The launch came after the Commodity Futures Trading Commission (CFTC) advisory and SEC granted approval.
In the fund’s first day with options functionality, it saw a staggering $1.9 billion in options traded, which analysts of the crypto ETF space have referred to as “unheard of”. The price of bitcoin subsequently surged later in the week, hitting an all-time high above $98,000 on Thursday. SEC chair and crypto industry antagonist Gary Gensler also announced Thursday he would resign from his position on January 20, another positive catalyst for crypto prices.
Options trading caters to both retail traders, who typically speculate, and institutional investors, who use options for hedging. Spot bitcoin ETF options could see higher speculative activity than traditional equity ETF options because of the asset’s appeal to a growing collection of retail investors.
Wall Street Titans Bet Big on MicroStrategy as MSTR Outpaces Bitcoin
MicroStrategy (MSTR) has captured significant attention from institutional investors, with Wall Street giants increasing their stakes. The business intelligence firm now holds 331,200 bitcoin, valued at approximately $30 billion, following its largest single-day purchase of $4.6 billion on Monday.
Recent 13F filings, which offer insights into institutional holdings, reveal a huge surge in interest from major investment managers. The number of institutional holders of MicroStrategy rose from 667 to 738 as of September 30, with the reported value of holdings climbing to $15.3 billion. Notable buyers include Vanguard Group and Capital International Investors.
Other financial titans including Morgan Stanley, Goldman Sachs, and Bank of America also boosted their stakes. Morgan Stanley purchased 8 million shares, representing a 500% increase compared to the previous quarter. Goldman Sachs and Bank of America also added 696,000 and 766,000 shares, respectively.
MicroStrategy's stock has outperformed bitcoin in 2024, with a year-to-date gain of 450% compared to bitcoin's 110%. Analysts have pointed to the firm’s ability to generate yield on its bitcoin holdings through leverage strategies, distinguishing it from direct bitcoin investments and spot ETFs.
What is a Recurring Buy?
Some online brokers and cryptocurrency exchanges — including Gemini, Binance, and Coinbase — offer their customers an automated service called a recurring buy, or recurring investment. With a recurring buy, you can purchase fixed amounts of your favorite digital assets over time at set intervals. For example, you can instruct your exchange to buy $100 USD worth of bitcoin (BTC) twice a month, in order to build a position over time. Investment firms actually borrowed this concept from ecommerce, where a recurring transaction refers to charges applied to a customer in predetermined intervals for ongoing services like memberships and subscriptions or for paying off big-ticket items in installments. The jury’s still out, however, about whether recurring buys will translate well to crypto.
Onward and Upward,
Team Gemini
Big moves in the market this week! The Spot BTC ETF launch and Wall Street's interest in MicroStrategy are game-changers. Plus, the potential SEC Chair nomination could shape the crypto landscape.