BlackRock Could Buy Bitcoin Futures, SEC Filings Say

Key Takeaways BlackRock has expressed plans to allocate funds to Bitcoin futures in two new filings with the U.S. SEC. The firm has been exploring blockchain since 2015. However, BlackRock has not yet made a Bitcoin investment. Share this article BlackRock plans to invest in Bitcoin futures, according to two new filings with the U.S. Securities and Exchange Commission. Two Filings Submitted to SEC Two filings (titled BlackRock Funds V and BlackRock Global Allocation Fund, Inc.) refer to the possibility that BlackRock will invest in Bitcoin futures contracts. Each filing…

DeFi Project Spotlight: Degenerative Finance and uGas Ethereum Futures

Key Takeaways Degenerative Finance has launched an experimental design space that explores different derivative products and synthetic assets. The project’s first project is uGas, synthetic gas futures for Ethereum. Depending on a user’s profile, uGas can be a helpful tool to hedge and speculate on the rise or fall of gas prices on the number two network. Share this article uGas is the first project launched by Degenerative Finance, itself a partnership between last summer’s popular DeFi platform, YAM Finance, and UMA Protocol. The uGas offering will be the focus…

$500M in crypto futures liquidated as Bitcoin dips below $34K: What happens next?

Roughly $500 million worth of cryptocurrency futures positions were liquidated in the past 24 hours. The mass liquidation of positions happened before the price of Bitcoin (BTC) dipped below $34,000 on Jan. 17. Bitcoin total liquidations. Source: Bybt.com Why were so many positions liquidated? Overnight, the price of Bitcoin rose by 6.7% from $35,500 to nearly $38,000. Meanwhile, the futures funding rate sharply increased, indicating an overleveraged market. Across major exchanges, the funding rate of the Bitcoin perpetual swap futures contract surged to around 0.07%. Considering that the average funding…

Peak fear? Bitcoin futures leverage gets reset by this week’s wild price swings

The leverage used in the Bitcoin (BTC) futures market has fallen significantly in the past several days. This indicates that traders are generally uncertain about where BTC is heading in the near term. Estimated leverage on Binance. Source: CryptoQuant What is leverage and why is this metric crucial for Bitcoin market sentiment? In the Bitcoin futures market, traders can borrow up to 125 times of their initial capital to trade Bitcoin. This allows traders to enter into massive Bitcoin positions that are often much larger than the capital that they…

$13B Bitcoin futures open interest reflects traders’ strong bullish optimism

Bitcoin (BTC) price recovered by 27% just three days after testing the $31,000 support and earlier today bull recaptured the $40,000 level. This quick recovery occurred despite the digital asset facing one of the largest buy-side liquidations in a single day as $1.5 billion was wiped off the books. Interestingly, futures contract traders appear to have returned with an even larger appetite. After such a large liquidation event, an increased appetite from futures traders is somewhat unexpected but professional investors are skilled at hedging their positions and executing complicated strategies…

CME’s Bitcoin futures facilitated over 11 million BTC in volume last year

The Chicago Mercantile Exchange, or CME, has recorded significant volume for its Bitcoin (BTC) futures trading product over the course of the last 12 months. “More than 2.2+ million contracts were traded in 2020,” a CME representative told Cointelegraph. Each cash-settled Bitcoin futures contract at the CME is worth the dollar value of 5 Bitcoin. The trading hub recorded higher than normal numbers as Bitcoin’s price heated up in December 2020 following a break of its 2017 all-time price high of $19,892 on Dec. 1. “BTC average daily volume (ADV) reached…

Bitcoin hit by $2.7 billion futures liquidation frenzy: What happens next?

Over $2.7 billion worth of futures contracts got liquidated in the last 24 hours, based on data from Bybt.com. This caused the price of Bitcoin (BTC) to see a large drop in a short time frame as it plunged from over $41,000 to sub-$32,600. BTC/USDT 4-hour price chart (Binance). Source: TradingView.com Why would mass liquidations cause Bitcoin to drop? In the futures market, liquidations of positions occur because traders are borrowing additional capital to trade with larger positions. For example, exchanges in the Bitcoin futures market typically offer up to…

Investors can now trade Bitcoin futures without an expiry date

Equos, a Singapore-based digital currency exchange operated by Diginex, has announced the launch of a new Bitcoin (BTC) futures product without any settlement dates, marking a substantial leap in the BTC derivatives market. The firm introduced the BTC Perpetual Futures Contract on Thursday, a product it says is “well suited to the current trading environment.” The perpetual contract is geared toward professional traders with various risk profiles, with prices and liquidity provided by independent market makers. The exchange claims that its new BTC contract is backstopped by its liquidity reserves,…

Bitcoin price dives to $27.7K to fill giant futures gap in biggest drop since $20K

Bitcoin (BTC) lost $30,000 support on Jan. 4 as all-time highs gave way to a rapid retracement totalling thousands of dollars. BTC price dips $4,000 in 60 minutes Data from Cointelegraph Markets, Coin360 and TradingView showed BTC/USD shedding more than 12% in just one hour on Monday. The pullback gathered pace after choppy trading behavior overnight on Sunday, with altcoins rising to take an ever larger slice of Bitcoin’s market cap dominance. At press time, amid heavy volatility, lows focused on $27,700 amid a bounce to nearer $30,000. BTC/USD 1-minute…

CME explains why it waited three years for ETH futures

The Chicago Mercantile Exchange, or CME, recently announced plans to add Ethereum (ETH) futures to its offering — three years after launching Bitcoin (BTC) futures. Market development has impacted the exchange’s decision to branch out.  “Since we launched the CME CF Ether-Dollar Reference Rate and Real-Time Index in 2018, there has been significant growth in ether transactions, and increased client demand for tools to manage price risk,” a CME representative told Cointelegraph. Similar to CME’s Bitcoin Reference Rate, the CF Ether-Dollar Reference Rate and Real-Time Index essentially show ETH’s going…