| Hey Cryptonews, here's our curated daily bundle of crypto news. | | Institutional interest in Bitcoin options surges as open interest reaches $12.5B |  | Bitcoin options market witnessed significant activity with $2.75 billion in options on Deribit following recent expiry Open Interest hits $12.5 billion, dominated by December 2023 calls and a shift in top strike prices towards $40,000
As Bitcoin's price surged recently, it attracted interest not only from retail investors but also from institutional players. The options market for BTC was highly active, with $2.75 billion worth of Bitcoin options on Deribit following the recent options expiry.
Open Interest reached levels reminiscent of 2021, totaling $12.5 billion at the moment. The majority of OI was associated with December 2023 calls, followed by November 2023 calls.
Regarding specific strike prices, there was a shift in the top strike prices, moving from the range of 29,000 to 32,500 to reaching 40,000. Short gamma positions were notable in the market, particularly from 36,000 to 40,000, indicating sensitivity to Bitcoin's price movements for those who had sold options.
Bitcoin maintained stability above $34,000 for five consecutive days. Long-term holders held their positions, while some long-term holders decided to take profits, marking a significant profit-taking event. Nonetheless, this profit-taking event might not have a substantial long-term impact. | | | Learn More | | Ethereum dominates DeFi with over $22 B locked and record DEX volumes |  | Ethereum's DeFi dominance extended with over $22 billion in assets locked, surpassing the total value of the next ten networks combined The network noted record-breaking decentralized exchange volumes exceeding $9 billion in transactions
Last week, Ethereum held its position as the leading smart contracts network, as per blockchain analytics protocol 0xScope's recent update on X. Ethereum's dominance in the decentralized finance space continued to grow, attracting more than 75% of the total funds locked for DeFi activities. Ethereum's well-established ecosystem for decentralized applications and smart contracts, as the pioneering protocol to use smart contracts, played a key role in its success.
According to DeFiLlama, Ethereum had over $22 billion in crypto assets locked, surpassing the combined value of the next ten networks on the list. Ethereum also saw a significant surge in decentralized exchange volumes, with over $9 billion in transactions in a single week, the highest since mid-June.
This increased activity was accompanied by a surge in users accessing the Ethereum network, averaging around 320,000 users in the past week. The heightened user activity drove up transaction counts and fees, with over $6 million in fees collected on October 25, the highest in nearly two months. | | Learn More | | Transfer of 9,085 MKR tokens sparks mixed sentiment amidst the network's resilience |  | FalconX's recent transfer of 9,085 MKR tokens, valued at $12.8 million to OKX and Binance raised questions about MKR's future price and market sentiment While MakerDAO's MKR token experienced an 11.78% decrease in price since 24 October, the overall market trend appeared to be sideways
MakerDAO's recent resilience amid market turbulence captured attention, although faith in its governance token appeared to wane for some investors.
Notably, FalconX, a prominent crypto trading platform, shed MKR. In the past week, FalconX transferred 9,085 MKR, valued at $12.8 million, to OKX and Binance. Presently, they held 7,261 MKR, worth $10 million.
This move by FalconX had mixed implications. Reduced supply could boost MKR's price if demand remained strong, but it could also trigger concern among traders, potentially leading to a decline in MKR's value.
Regarding MKR's price, it experienced an 11.78% decrease since 24 October, but the larger picture showed a sideways movement, lacking a distinct bullish or bearish trend. MKR was trading at $1418.29.
Key metrics suggested a changing landscape: the Chaikin Money Flow slightly dipped below 0, implying decreased capital inflow, and the Relative Strength Index dropped to 47.83, indicating a seller-favored momentum.
Furthermore, Network Growth and MKR's Velocity both declined, suggesting a waning interest in new wallets and decreased trading activity. | | Learn More | | Terraform Labs co-founder, Do Kwon requests dismissal of SEC fraud lawsuit |  | Do Kwon and Terraform Labs seek the dismissal of the SEC lawsuit, arguing that their cryptocurrencies are not securities Legal representatives claimed the SEC's allegations, including accusations of secret fund transfers, are unfounded and knowingly false
Terraform Labs co-founder, Do Kwon, urged a U.S. district judge to dismiss a securities and fraud lawsuit filed by the U.S. Securities and Exchange Commission, asserting that the SEC had failed to substantiate any wrongdoing by him or his company.
In a filing on 27 October in the U.S. District Court for the Southern District of New York, legal representatives for Kwon and Terraform contended that their cryptocurrencies, including Terra Classic, TerraClassicUSD, Mirror Protocol and mirrored assets, which mirror on-chain stocks, were not securities, as alleged by the SEC.
Despite a two-year investigation, extensive discovery, and the exchange of vast amounts of documentation, the lawyers argued that the SEC had made no progress in proving any wrongdoing by the defendants. They also claimed that some of the SEC's allegations were knowingly false, including accusations that Kwon and Terraform had secretly moved millions into Swiss bank accounts for personal gain.
The SEC's suit against Kwon and Terraform, filed in February, had accused them of sending 10,000 Bitcoin to a Swiss financial institution and withdrawing $100 million, as well as making false and misleading statements. | | Crypto ETPs note record-breaking weekly inflows of $326 M |  | Crypto exchange-traded products witnessed an exceptional weekly inflow of $326 million, marking a sharp increase from the previous week's $66 million The surge in inflows was linked to optimism regarding the potential approval of a spot-based Bitcoin ETF by the U.S. Securities and Exchange Commission
Crypto exchange-traded products (ETPs) experienced their most substantial weekly inflow in over a year, according to a report by CoinShares on 30 October. Inflows for the week ending 27 October amounted to $326 million, a stark contrast to the preceding week's $66 million.
ETPs were investment vehicles designed to mirror the price of a specific asset. Crypto ETPs, for instance, often tracked the values of major cryptocurrencies like Bitcoin and Ethereum. Some investors preferred ETPs to direct asset ownership, as these funds could be held in traditional brokerage accounts.
When ETPs experienced an "inflow," it signified their price was rising faster than the underlying asset, leading the fund to acquire more of the asset – generally seen as a bullish signal. Conversely, an "outflow" happened when the fund had to sell the asset due to declining notes or shares relative to their target, typically viewed as bearish.
The sudden surge in inflows was attributed to optimism surrounding potential approval of a spot-based Bitcoin ETF by the U.S. Securities and Exchange Commission. However, it's worth noting that despite the increase, this week's inflow ranked only 21st in recorded history. | | Bittrex concludes U.S. operations with court-approved bankruptcy plan |  | Bittrex's Chapter 11 bankruptcy protection filing and court-approved liquidation plan signal the end of its U.S. operations Bittrex Global, its international counterpart, remained operational, assuring users of continued availability for non-U.S. regulated digital assets
Bittrex's new court-approved bankruptcy plan signaled the conclusion of its U.S. operations. This decision, greenlit by Judge Brendan Shannon in Delaware, followed Bittrex's Chapter 11 bankruptcy protection filing in May. The move was a response to SEC allegations of operating an unregistered trading platform, leading to a $24 million settlement with the SEC in August.
The court's approval of Bittrex's liquidation plan was a pivotal step toward repaying outstanding creditors. Despite the regulatory hurdles that had prompted Bittrex to cease U.S. operations, Bittrex Global, its international counterpart, continued to function in other regions.
In August, Bittrex Global's CEO, Oliver Linch, reassured users concerned about U.S. ties and regulatory uncertainty, confirming the platform's availability for those interested in non-U.S. regulated digital assets.
This shift marked a significant change from Bittrex's status as a major U.S. cryptocurrency exchange, with its market share plummeting from 23% in 2018 to below 1% by 2021 as it struggled to reclaim its former position. | | UK unveils regulatory framework for fiat-backed stablecoins |  | UK government to introduce legislation in 2024, entrusting regulation of fiat-backed stablecoins to the Financial Conduct Authority (FCA) Regulatory framework, FCMA 2023, outlined requirements for stablecoin issuers
On 30 October, the United Kingdom government unveiled its updated plans for regulating fiat-backed stablecoins, focusing on integrating them into the country's payment systems. The document outlined the Treasury's intention to introduce specific legislation to Parliament in 2024, entrusting the regulation of fiat-backed stablecoins to the Financial Conduct Authority.
Local companies potentially became "payment arrangers," authorized by the FCA, responsible for ensuring foreign stablecoins met local standards. Non-fiat-backed stablecoins, including algorithmic ones, were not allowed in regulated payment systems. While the document did not impose a direct ban, it designated these transactions as "unregulated."
Standard stablecoins were subject to FCA oversight, with stablecoin issuers required to maintain reserve funds in a statutory trust. The terms of this trust were outlined in the FCA's rules, including redemption obligations in the event of the issuer's failure, which would invoke procedures under the Insolvency Act 1986.
The regulatory framework, known as the Financial Services and Markets Act 2023 (FCMA 2023), passed in the House of Lords in June 2023, granting powers to the Treasury, the Bank of England, and the FCA for overseeing cryptocurrencies and stablecoins. | | Bears plummet Bitcoin to new lows |
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