On October 18th, 2024, the United States Securities and Exchange Commission (SEC) granted approval for applications by the New York Stock Exchange (NYSE) and the Chicago Board Options Exchange (CBOE) to list the highly anticipated options for spot Bitcoin exchange-traded funds (ETFs).

Tom Dunleavy, managing partner of investment firm MV Global, noted that the addition of options may help reduce the infamous high volatility and unpredictable nature of Bitcoin and stabilize the markets over time.

A Historic Victory

Options trading will now be accessible for 11 approved ETF providers on the NYSE, which include the Fidelity Wise Origin Bitcoin Fund, ARK21Shares Bitcoin ETF, Invesco Galaxy Bitcoin ETF, Franklin Bitcoin ETF, VanEck Bitcoin Trust, the WisdomTree Bitcoin Fund, the Grayscale Bitcoin Trust and Bitcoin Mini Trust, Bitwise Bitcoin ETF, the BlackRock iShares Bitcoin Trust ETF, and the Valkyrie Bitcoin Fund.

In addition, the CBOE submitted an application in August 2024 to list options for spot Bitcoin ETF providers through a proposed rule change. This regulatory shift places Bitcoin ETF options alongside other commodity-based ETFs, which the SEC has already permitted for listing on the CBOE, excluding the aforementioned Grayscale Bitcoin Mini Trust.

Previously, several cryptocurrencies experienced positive price movements following the U.S. Securities and Exchange Commission approving several spot Ethereum ETFs.

Enhancing Liquidity

Many investors anticipate that the launch of options for Bitcoin ETFs will enhance liquidity in the Bitcoin markets, potentially serving as a catalyst for price increases. Jeff Park, an executive at Bitwise, emphasized that the approval signifies a significant improvement over LedgerX and Deribit, which do not have central guarantors.

He also pointed out that the introduction of options might lead to scenarios where overleveraged short traders could face short squeezes, compelling them to purchase Bitcoin to cover their positions. Park illustrated this by claiming that a trillion-dollar asset cannot be short-squeezed is like saying an elephant cannot dance. While it is large, if enough ropes are tied to its legs and pulled hard enough, even the biggest creature can be moved in unexpected ways.

Bitcoin (BTC) has been experiencing a remarkable performance that continued over the last 24 hours, reaching $69,000 for the first time since July 29th, 2024, before experiencing a slight pullback. Most altcoins saw only minor gains during this period, with the exception of Dogecoin (DOGE), which has reinforced its recent significant surge.

Furthermore, the market capitalization of the flagship cryptocurrency has now reached an impressive $1.350 trillion, with its dominance over altcoins reaching a multi-year high of over 55%.

BTC Reaches $69K
The leading cryptocurrency hovered around $62,000 and $63,000 last Saturday after recovering several thousand dollars compared to a previous drop below $59,000 on Thursday. The previous weekend was relatively calm, but the asset took off at the start of the business week.

The most notable volatility occurred on Tuesday, when BTC surged to $68,000 before being sharply pushed down to just below $65,000. However, bulls regained momentum shortly after, allowing Bitcoin to steadily rise to new local highs as investor enthusiasm grew.

The latest peak occurred late last night when the cryptocurrency reached $69,000 for the first time in nearly three months. Although it could not maintain that level, it remains above $68,000 following a slight retracement.

DOGE Continues to Surge
Among larger-cap altcoins, the original meme coin was undoubtedly the standout performer. Earlier this week, DOGE saw an impressive 6.5% increase, bringing its price to a multi-month high of $0.144, leading to speculation about a potential rise to $1 during the current market cycle.

Other larger-cap altcoins are experiencing much less volatility. ETH, BNB, XRO, TRX, and LINK show minor losses, while SOL, TON, ADA, AVAX, and SHIB have recorded slight gains. WLD has emerged as the top performer among the largest 100 cryptocurrencies, with a notable 13% increase.

Overall, the total cryptocurrency market cap has grown by approximately $15 billion, now exceeding $2.450 trillion.

Other Markets

Excitement is building as Asian IPOs gear up for a thrilling week, reflecting a resurgence of investor enthusiasm. Meanwhile, Southwest Airlines is preparing for its earnings report, with insights into its operations shedding light on its strategic positioning. Notably, activist investor Elliott Management, which revealed a substantial $2 billion stake in the airline last June, has begun settlement talks with the company.

In the energy sector, traders appear indifferent to fluctuating oil prices, despite the implications of U.S. sanctions, as the world grapples with a looming $100 trillion fiscal crisis that threatens economic stability. Amid these challenges, TGI Fridays plans to close up to 20% of its U.S. locations as it seeks new financing to navigate potential bankruptcy. On a brighter note, India is expected to propel private credit and bond markets.

In addition, as HDFC Bank gears up for its earnings report, it has approved a $1.5 billion IPO for HDB Financial, reporting strong deposit growth that has led to a surprising profit surge. However, economists express a desire for more decisive actions by China as it outlines plans to revive its economy and combat deflation, while ongoing disputes with the EU over electric vehicle tariffs highlight tensions in international trade relations.

Bitcoin (BTC) is on track to outshine both gold and the NASDAQ, with historical evidence suggesting that the cryptocurrency thrives during monetary expansion. This year, gold has surged over 30%, while the NASDAQ has gained just 24.43%. In stark contrast, Bitcoin is leading the charge with impressive gains exceeding 52% so far.

A Remarkable History

Ecoinometrics, a crypto data provider, emphasizes the remarkable ability of BTC to excel in times of monetary growth. As major economies grapple with potential fiscal challenges, attention is shifting back to how Bitcoin reacts when fiat currencies lose value.

A striking example of this was in 2020, when governments in the U.S. and across the globe flooded their economies with liquidity in response to the COVID-19 pandemic. During this period, Bitcoin significantly outperformed traditional assets, proving itself as a reliable hedge against inflation and currency devaluation.

In the wake of the pandemic, central banks worldwide implemented extensive monetary measures. In the U.S. alone, the M2 money supply skyrocketed by an astonishing $6 trillion to address the economic fallout.

A Change In Pace

The analysis by Ecoinometrics also revealed that Bitcoin reaped substantial benefits via an influx of liquidity, achieving a compound annual growth rate (CAGR) of about 150%. This remarkable growth outpaced the NASDAQ, which saw a CAGR of less than 50%, and left gold trailing far behind. The Bitcoin CAGR was also nearly four times that of the NASDAQ and around 20 times greater than gold.

Today, the economic environment seems to no longer be following the aggressive monetary expansion of 2020, with governments no longer increasing the money supply at the same rate. Consequently, BTC has shown signs of stabilization in recent months.

In its ongoing legal battle with Ripple Labs, the U.S. Securities and Exchange Commission (SEC) has formally challenged a previous ruling. The agency appealed the ruling made by Judge Analisa Torres by submitting a Civil Appeal Pre-Argument Statement, or Form C as it is more commonly known.

The SEC first accused Ripple of raising $1.3 billion through unregistered XRP transactions in 2020, which sparked the legal spat. Judge Torres made a crucial ruling more than a year ago, holding that the XRP sales did not break any securities laws. She did conclude, nonetheless, that direct sales of XRP to institutional investors did meet the requirements for securities. After that, in August, Ripple was mandated to pay $125 million in fines.

The Context

The legal dispute over whether XRP sales on cryptocurrency exchanges could be regarded as securities has been rekindled by this latest action. In its initial lawsuit, the SEC accused Ripple and its representatives of selling and promoting XRP without the required registration, in violation of several provisions of the Securities Act of 1933.

The organization is currently looking for information regarding whether the Southern District of New York United States District Court made a mistake in the procedures concerning Chris Larsen, co-founder of Ripple, and CEO Brad Garlinghouse. Additionally, the SEC asked that the issues be reviewed de novo, which means that the court will reconsider a decision based on inquiries into the application of the law.

Alderoty Responds

Stuart Alderoty, the Chief Legal Officer of Ripple, commented on the SEC filing through X, stating that the company intends to file its Form C the following week. He declared that this should come as no surprise as it has already been explained, and that there will be no appeal of the decision made by the court regarding the security status of XRP. The ruling is still enforceable throughout the nation, he concluded.

On October 2nd, the SEC filed its initial appeal, claiming that the ruling made by the district court in the Ripple case runs counter to decades of previous documents and cases which have, in their words, always been referred to concerning securities legislation and Supreme Court precedent.

In response to the SEC, Ripple filed a cross-appeal to make sure all relevant factors were considered and taken into account, in line with what Alderoty had to say regarding the need for rights and obligations in order to clearly define what an investment contract actually is and entails.

A recent report by Aspen Digital indicates that 76% of private wealth in Asia has engaged with digital assets, with an additional 18% intending to invest in the future. Interest in digital assets has surged since a 2022 survey conducted by the Hong Kong-based wealth management platform, which revealed that only 58% of respondents had explored this space.

Renewed Enthusiasm

The report gathered insights via 80 family offices and high-net-worth individuals across Asia, primarily managing assets between $10 million and $500 million. Among those already investing in cryptocurrencies, 70% have dedicated less than 5% of their portfolios to digital assets, although some have raised their allocations to over 10% in 2024.

The attraction to blockchain-based technological benefits is evident, with two-thirds of participants expressing interest in decentralized finance (DeFi) and 61% showing enthusiasm for artificial intelligence and decentralized physical infrastructure networks (DePIN). Aspen Digital also highlighted that respondents are generally optimistic about Bitcoin for the rest of 2024, with 31% forecasting a price of $100,000 by year-end.

Growing Interest

The recent approval of spot Bitcoin exchange-traded funds (ETFs) has enhanced interest in digital assets among Asian investors, as 53% of participants are now exposed through funds or ETFs. This trend mirrors global shifts noted in the recent Global Crypto Hedge Fund Report by AIMA and PwC.

Their survey of nearly 100 hedge funds managing a combined $124.5 billion reported an increase in crypto exposure to 47% in 2024, driven by clearer regulations and the introduction of crypto ETFs in the United States and Asia. Spot Bitcoin ETFs began trading in the US in January 2024, followed by the launch of spot Bitcoin and Ether ETFs in Hong Kong in April.

World Liberty Financial (WLFI), a newly launched DeFi token backed by Donald Trump, kicked off with impressive momentum, generating $5 million within its first hour. Nevertheless, the initiative has encountered technical challenges that have hindered its operations.

These issues have also raised doubts among the crypto community, particularly due to the former United States President himself being notably absent during the launch in addition to the timing of the launch as it is very close to the upcoming election.

Long Term Viability

Initially, WLFI was available exclusively to whitelisted investors, aiming to raise $300 million in its first round. Despite strong interest, the debut of the token was marred by operational setbacks, including a website crash and transaction issues affecting ongoing sales. These technical hurdles, along with Trump being absent, have led to worries regarding the longevity of the project alongside its capacity to fulfill its commitments.

Various crypto leaders and experts have additionally expressed skepticism about what kind of technical strategy the project seems to be adopting. Manuel Ferrari, Co-Founder of Money On Chain, suggested that many investors might find greater value in Bitcoin (BTC) instead of participating in the Trump-themed DeFi venture.

Optimistically Cautious

Access to sales was limited, as the initial round catered solely to accredited investors, defined by the SEC as individuals with a net worth over $1 million or an annual income of $200,000. Even with this exclusivity, World Liberty faced difficulties in managing these sales efficiently, further questioning the readiness of the project.

Currently, the World Liberty website remains down, yet on-chain data shows that staggered transactions continue to be processed. It is uncertain whether these technical issues will persist, but the strong interest in WLFI indicates a sustained demand, even as the crypto community approaches the initiative with caution.

The competition between the leading meme coin, Dogecoin (DOGE), and its rival, Shiba Inu (SHIB), is heating up. Shiba Inu Chief Marketer, Lucie, has hinted that SHIB might soon outshine DOGE, especially with the backing of companies like DeLorean Motors, which has teased accepting SHIB payments for its upcoming electric vehicles. This comes as Tesla, led by Elon Musk, continues to champion Dogecoin.

Copying Tesla

In a recent post on X (formerly Twitter), DeLorean Motors suggested they might incorporate SHIB as a payment option, playfully referencing how Tesla has implemented similar support for DOGE. This sparked excitement within the crypto community, particularly among Shiba Inu fans.

Lucie believes that if DeLorean adopts SHIB, it could drive significant growth for the coin, positioning it as a serious contender against Dogecoin, something which the SHIB community has wanted for a long time.

A Big Deal

The rivalry is further intensified by the involvement of major car brands like Tesla and DeLorean. If DeLorean copies Tesla and actually accepts SHIB, it could transform the meme coin landscape. The kind of optimism shared by Lucie is also infectious, as she argues that this move would not only boost the value of SHIB but also greatly expand its global reach.

While the integration of SHIB at DeLorean remains speculative, there is excitement nonetheless. The potential acceptance of SHIB by DeLorean Motors is stirring interest in the crypto world, and if it happens, it could be a pivotal moment for Shiba Inu, giving it a real chance to eclipse Dogecoin for the very first time in its history.

At the Miami Ripple Swell 2024 conference, Ripple unveiled exciting news about RLUSD, its upcoming dollar-pegged stablecoin, alongside new exchange partners and market makers. The news comes after the company previously announced it would be utilizing XRP to expand cross border payment services earlier in the year.

Sheila Bair, former FDIC Chair, and David Puth, ex-CEO of CENTRE Consortium, have joined the advisory board for RLUSD. The stablecoin is operationally ready and is currently awaiting regulatory approval by the New York Department of Financial Services (NYDFS).

Seamless Transactions

Various Ripple partners, including Bitstamp, Bitso, and MoonPay, will facilitate the distribution of RLUSD, while market makers B2C2 and Keyrock will enhance liquidity across global markets. The stablecoin will initially operate on the XRP Ledger and Ethereum, allowing seamless transactions between fiat and digital currencies.

CEO Brad Garlinghouse envisions RLUSD as a leading stablecoin for enterprise applications, essential for cross-border payments and asset tokenization. This move aligns with a broader strategy by Ripple to bridge traditional finance and blockchain technology, building on its existing network that spans over 90 markets and has processed $70 billion in transactions.

Compliance And Safety

In a related development, Garlinghouse recently announced that Ripple has officially acquired Standard Custody, reinforcing its commitment to compliance. RLUSD aims to simplify crypto-to-fiat conversions and support real-world asset tokenization, providing a secure gateway for users to engage with digital finance without price volatility concerns.

With a focus on compliance, RLUSD is issued under a New York Trust Company Charter and will be backed by dollar deposits and U.S. Treasuries. After a significant victory over the United States SEC, Ripple plans to maintain transparency through monthly independent audits of its reserves while also ensuring responsible innovation and consumer protection.

Hyperliquid, a decentralized exchange specializing in perpetual derivative trading, is set to introduce its new HYPE tokens ahead of the HyperEVM mainnet launch. The Hyper Foundation shared this news on X, highlighting a potential airdrop where eligible users can choose to receive HYPE tokens and a Hypurr NFT during the initial distribution.

Additionally, Hyperliquid saw its daily transaction volumes recently surpass $1 billion, highlighting the excitement surrounding the upcoming token distribution.

A Key Role

The introduction of the HYPE token will coincide with user anticipation for the HyperEVM mainnet launch. The Hyper Foundation stated that this new token will play a vital role in the Hyper BFT proof-of-stake consensus mechanism and the ongoing development of HyperEVM.

In its announcement, the foundation mentioned that as part of the Genesis distribution, qualifying users can opt to receive HYPE tokens and a Hypurr NFT to celebrate the imminent HyperEVM mainnet release. They urged users to review and accept all Genesis event conditions on their website by November 11th, 2024, to be eligible for any new tokens.

Robust Liquidity

The Hyper Foundation praised Hyperliquid and its order books for providing the deepest and most robust liquidity across a wide range of assets. They believe that the launch of HyperEVM will enhance overall liquidity and various native financial tools, making finance both efficient and accessible.

Hyperliquid already facilitates perpetual derivatives trading by aggregating liquidity via multiple sources and offers several native tokens on its Layer 1 application-specific blockchain. As of April 16th, Hyperliquid began spot trading for the inaugural HIP-1, making its native token PURR available. At that time, it announced that approximately 50% of the total cumulative supply would be airdropped to holders, while the remainder would support the PURR/USDC liquidity pool.

Ethereum (ETH) co-founder Vitalik Buterin has introduced a major update to the PoS (Proof-of-Stake) consensus system which the blockchain utilizes, advocating for a reduction in the validator lockup requirement to just 1 ETH compared to 32 ETH. This proposal is part of various alternative strategies aimed at improving the overall efficiency and user experience within the Ethereum ecosystem for 2024 and beyond.

Buterin argues that lowering the minimum stake to 1 ETH would address the barriers preventing more individuals when it comes to solo staking, thus promoting democratization of the staking process and enhancing the overall decentralization of Ethereum.

Solving Affordability Issues

Currently, the 32 ETH requirement for becoming a validator is intended to maintain a balance among security, decentralization, and operational costs. However, Buterin believes this high threshold hinders smaller participants and solo stakers who wish to help secure the network but find the substantial lockup unaffordable.

By decreasing the threshold to just 1 ETH, the entry barrier would be significantly lowered, inviting more solo stakers to engage with the network and potentially reducing staking centralization. Buterin envisions this change aligning with the long-term goal of being more accessible to a diverse user base.

One challenge associated with this threshold reduction is ensuring efficiency without overloading the network. Buterin noted that increasing the number of validators could slow down finality or elevate operational costs for running a node.

Enhancing User Experience

To tackle the aforementioned issues, Buterin also introduced the idea of single-slot finality, which would expedite block confirmations, cutting finalization times to approximately 12 seconds as compared to the current timeframe of 15 minutes. This improvement would enhance user experience while preserving security, even with a larger validator pool.

The Ethereum community has long discussed the accessibility of staking. Many solo stakers have voiced their dissatisfaction with the 32 ETH requirement, and the proposal might be transformative in empowering smaller contributors. Nonetheless, implementing this change will necessitate thorough testing and research to ensure that overall stability remains intact.

The United States Department of Justice (DoJ) has initiated a crackdown on fraud within the meme coin market, which is primarily aimed at key players to restore trust in the sector and safeguard investors against manipulative practices.

Currently, the meme coin market is among the fastest-growing segments in all of crypto, boasting a market value exceeding $47 billion as of October 10th. Most recently, NEIRO, a popular meme coin on Ethereum (ETH) known for its vibrant online community, experienced a remarkable rise of over 40% in just 24 hours. 

Rife With Fraud

Leading coins such as Dogecoin, Shiba Inu, and Pepe dominate this space, with significant trading volumes and valuations. Despite its rapid expansion, the meme coin sector is rife with fraudulent activities. Recently, the DoJ targeted four cryptocurrency companies and 14 individuals engaged in illicit trading operations, recovering over $25 million in crypto assets and highlighting the manipulation prevalent in the market.

One of those implicated was Aleksei Andriunin of GoBit, a prominent market maker for meme coins. GoBit and others faced allegations of wash trading, a method employed to fabricate market activity and deceive investors. Such market manipulation is prohibited in the US and various other countries. By artificially inflating trading volume, these firms misled traders, leading to substantial financial losses.

A Long Way To Go

Some analysts, including those at Santiment, view the actions taken by the DoJ as a beneficial move for the industry. They argue that eliminating manipulative entities like GoBit could enhance market confidence in the future, signaling that deceptive tactics will face consequences and potentially attracting cautious investors.

While short-term confidence might wane, the long-term prospects for meme coins could improve with greater transparency and reduced manipulation. Should GoBit re-enter the market, it is likely to operate more transparently, fostering a fairer trading environment for all participants.

Chinese researchers recently claimed to have successfully breached encryption algorithms used in banking and cryptocurrency with a quantum computer. Led by Wang Chao at Shanghai University, the team utilized a technique called quantum annealing to target algorithms like Present, Gift-64, and Rectangle, all of which are foundational to the advanced encryption standards (AES) that secure crypto wallets.

A Significant Threat

AES-256 is considered one of the most secure encryption methods, but experts warn that quantum computing could soon challenge this status, threatening established password protections. Wang and his team likened their approach to an AI algorithm that optimizes solutions on a global scale. Unlike traditional algorithms that explore every option, quantum tunneling allows particles to pass through barriers, enabling quantum computers to find solutions more efficiently.

This is the first time a true quantum computer poses a significant threat to full-scale SPN structured algorithms currently in use, the team stated. As quantum computing looms as a concern for the crypto industry, it raises fears of exposing user funds to theft at unprecedented speeds.

Still Some Limitations

While the breakthrough is significant, researchers noted that various limitations, such as environmental factors and hardware constraints, currently prevent a full-scale quantum attack. They also confirmed that the attack did not reveal specific passwords but achieved greater gains than before.

The findings were published in The Chinese Journal of Computers through The China Computer Federation on September 30th. Ethereum (ETH) co-founder Vitalik Buterin has suggested a potential remedy, proposing a hard fork of the blockchain to mitigate future quantum risks, which could be implemented swiftly to protect user funds.