This week has been another busy week for the cryptocurrency market. MicroStrategy buys another $4.6 billion in Bitcoin, BlackRock’s Bitcoin ETF options bring in $2 billion in first-day profits, Donald Trump transition team considers first White House crypto office, Justin Sun buys Banana for $6.2 million, SEC Chairman Gensler resigns on January 20, Bitcoin continues to rise, approaches $100,000, US spot Bitcoin ETF net flows reach $30 billion did.
Let’s take a look at these and reflect on what happened with cryptocurrencies this week.
MicroStrategy buys another $4.6 billion in Bitcoin
MicroStrategy continues to go long Bitcoin as it adds even more assets to an already impressive asset.
On November 18th, the company announced that it had purchased an additional 51,780 BTC. This latest addition increases MicroStrategy’s total Bitcoin holdings to 331,200. This news comes after the company’s founder Michael Saylor announced the purchase of over $2 billion worth of Bitcoin.
The publicly traded company, whose stock MSTR soared as Bitcoin prices soared, acquired $16.5 billion worth of BTC. With an average purchase price of $49,874, the company stands to gain billions of dollars as the benchmark cryptocurrency trades near all-time highs.
BlackRock’s Bitcoin ETF options brought in $2 billion in first day
Options contract openings in BlackRock’s iShares Bitcoin Trust (IBIT) reached nearly $2 billion in its first day of trading.
James Seifert, an analyst at Bloomberg Exchange Traded Funds (ETF), said of X:
“The final tally of first-day options on $IBIT was just shy of $1.9 billion in notional exposure traded across 354,000 contracts. 289k were calls and 65k were puts; 4.4:1.
Update: The final tally of $IBIT’s first-day options falls just shy of $1.9 billion in notional exposure traded across 354,000 contracts. 289k was a call and 65k was a put. The ratio is 4.4:1. These options are almost certainly part of today’s #Bitcoin move to all-time highs pic.twitter.com/IN3s9hajJ2
— James Seyffert (@JSeyff) November 19, 2024
“$1.9 billion on the first day is unheard of,” said Eric Balchunas, senior ETF analyst at Bloomberg.
As a result, BlackRock’s options may have helped push Bitcoin to a record above $94,000.
The launch of BlackRock’s options contracts comes amid growing institutional investor interest in Bitcoin. IBIT options allow investors to gain exposure to new investment vehicles while managing risk through call and put options without owning the underlying assets.
At the end of October, BlackRock’s IBIT reached $30 billion in net assets in 293 days. Two weeks later, his net worth reached $40 billion in 211 days, demonstrating the growing interest in cryptocurrency investment.
Donald Trump’s transition team considers establishing first White House Cryptocurrency Office
As Donald Trump prepares to enter the White House, reports are circulating that his transition team is appointing an executive to oversee the growing digital asset industry. That number would then exceed regulation at the highest levels of government.
Although a final decision has not been made, Trump’s team is working with several crypto leaders, including former Binance US CEO Brian Brooks and Coinbase CEO Brian Armstrong. It is reported that discussions have taken place.
Whoever fills the job, industry advocates are calling for it to be a position with great access to President Trump, so that industry concerns are reflected at the highest levels of power. That will happen.
Justin Sun buys bananas for $6.2 million
Earlier this week, Tron founder Justin Sun bought a banana taped to a wall for $6.24 million.
Sotheby’s, which organized the auction, started bidding at $800,000, but the bid soared into the millions.
Tron founder Sun said of X: “I believe this work will stimulate more thought and discussion in the future and become a part of history. I am honored to be the proud owner of Banana and am proud to share that Banana is an art form around the world.” We look forward to bringing even more inspiration and influence to enthusiasts.”
I’m excited to announce that I purchased Banana 🍌! @SpaceX @Sothebys I’m Justin Sun. We are thrilled to share that we have successfully acquired Maurizio Cattelan’s iconic work The Comedian for $6.2 million. This is more than just a work of art. It represents a cultural phenomenon… pic.twitter.com/lAj1RE6y0C
— He, Justin Sun 🍌 (@justinsuntron) November 21, 2024
Before the auction, Sotheby’s had estimated the winning bid to be between $1 million and $1.5 million.
SEC Chairman Gensler resigns on January 20th
U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler has announced that he will resign effective January 20, 2025.
Mr. Gensler was appointed SEC Chairman in 2021 following the inauguration of Joe Biden as President of the United States. Since taking on this role, the SEC has filed several lawsuits against crypto companies such as Binance, Coinbase, Kraken, and Ripple.
His exit from the crypto market will undoubtedly be seen as a breath of fresh air, as under his leadership the SEC has become known for its enforcement-based regulatory approach to cryptocurrencies.
Bitcoin continues to rise, approaching $100,000
On November 22nd, Bitcoin came close to reaching $100,000 for the first time, continuing its bull run since the beginning of November.
Bitcoin hit $99,500, boosted by the launch of ETF options earlier in the week, according to CoinMarketCap data. The day before, Bitcoin had surpassed $98,000.
Joe Constoli, head of growth at Theya and head of organization at Bitcoin Layer, said he expects Bitcoin to reach $100,000 at X.
“Its nature was always destined to be a multi-trillion dollar base layer financial asset. It just took 15 years for the price to catch up,” he added.
At the beginning of the week, Bitcoin was trading around $93,000.
Total US Spot Bitcoin ETF net flows reached $30 billion
On Friday, the US Spot Bitcoin ETF reached $1 billion in daily net inflows as the price of Bitcoin approached $100,000.
BlackRock’s iShares Bitcoin Trust (IBIT) had the most inflows, collecting $608.41 million, according to SoSoValue data. Fidelity’s FBTC followed with $300.95 million. Bitwise’s Bitcoin ETF collected $68 million, while Ark and 21Shares’ ARKB collected $17.18 million.
The only ETF to experience negative outflows was Grayscale’s GBTC ($7.8 million).
Since being approved by the U.S. Securities and Exchange Commission (SEC) and launched in January, the 12 Spot Bitcoin ETFs have generated a total of $30.35 billion in revenue.
