Financial Derivatives news
Top 11 greatest investors of all time
Learning from the greatest investors of all time can provide valuable insights into successful investment strategies and philosophies. Their success stories and experiences can inspire and guide new investors. Studying their methods can help individuals develop their own investment approach and improve their chances of achieving success in the financial world. Here are the top 11 investors of all time. Learn about the investment strategies and philosophies that have made these individuals some of the most successful investors in history. Warren Buffett Warren Buffett, chairman and CEO of Berkshire Hathaway, is known as the “Oracle of Omaha,” has a net …
Adoption / Feb. 17, 2023
Bitcoin Santa Claus rally, unlikely according to on-chain and derivatives data
As the coldest days of the crypto winter set in, investors’ speculative interest in the crypto market has fallen to pre-2021 levels, impairing the chance of a substantial directional price move. However, there’s a possibility of a bear market rally akin to the July through August 2022 uptrend. The market enters a state of limbo The FTX implosion impacted over 5 million users globally and adversely affected numerous crypto companies that were exposed to it. The industry is currently in a recovery mode and Cumberland, a U.S.-based crypto market broker, recently echoed this narrative in a tweet. The firm noted …
Bitcoin / Dec. 15, 2022
3 emerging crypto trends to keep an eye on while Bitcoin price consolidates
This week, Bitcoin’s (BTC) price took a tumble as a hotter-than-expected consumer price index (CPI) report showed high inflation remains a persistent challenge despite a wave of interest rate hikes from the United States Federal Reserve. Interestingly, the market’s negative reaction to a high CPI print seemed priced in by investors, and BTC’s and Ether’s (ETH) prices reclaimed all of their intraday losses to close the day in the black. A quick look at Bitcoin’s market structure shows that even with the post-CPI print drop, the price continues to trade in the same price range it has been in for …
Bitcoin / Oct. 14, 2022
New hashprice-based derivatives instrument gives Bitcoin miners another way to hedge
Hedging against downside has always been a challenge for Bitcoin BTC miners, and the current bear market is a perfect example of how energy prices and crypto market volatility can negatively impact miners’ profit margins and their ability to stay solvent. Oftentimes, institutional and retail traders use BTC-, stablecoin- and U.S. dollar-settled derivatives (options and futures contracts) to create hedging strategies that mitigate downside in Bitcoin price, and now an instrument specific to Bitcoin mining is available to miners. The Oct. 10 launch of Luxor Hashprice NDF, a non-deliverable forward contract, will allow miners to hedge their exposure to Bitcoin …
Bitcoin / Oct. 10, 2022
Bitcoin price finally made a move, and fireworks are sure to follow
This week, Bitcoin (BTC) raised investors’ hopes and then left them high and dry again. Traders placed a majority of their attention on BTC price pushing through a long-term descending trendline resistance, but according to Cointelegraph analyst Ray Salmond, “BTC price simply ‘consolidated’ its way through the trendline by trading in a sideways manner where price has been range bound between $18,500 and $24,500 for the past 114 days.” At the time of writing, BTC’s price continues to battle at $20,000, and it’s uncertain whether or not the level will hold as support. Data from on-chain analytics firm Whalemap shows …
Bitcoin / Oct. 7, 2022
CTFC looks at expanded authority to regulate crypto, for less than a 10% budget increase
The U.S. Commodity Futures Trading Commission, or CFTC, has released its Fiscal Year 2023 (FY2023) budget request, seeking $365 million. This marks a 9.9% increase over the previous year and 20% over FY2021. The commission regulates the country’s derivatives market and has been increasingly active in recent years in policing financial products that incorporate cryptocurrencies. According to the agency’s request document, the CTFC focuses on digital asset custodian risk, ensuring secure storage, as well as on accounting. The agency has its own staff of certified public due to the lack of guidance on digital asset accounting from sectoral oversight bodies. …
Blockchain / March 29, 2022
Waiting on the executive order: how users and financial professionals may benefit from it
United States President Joe Biden’s Executive Order on Ensuring Responsible Development of Digital Assets was widely praised for acknowledging cryptocurrency and blockchain technology’s place in the world and setting the U.S. on a path toward more comprehensive regulation of the sector. The order, or EO, sets a research agenda that encompasses consumer protection, financial stability, crime and national security, U.S. leadership, servicing the underbanked and responsible development. With a number of reports being commissioned for delivery over the course of months and no specific actions prescribed, it is impossible to gauge the effect the order will ultimately have on the …
Regulation / March 29, 2022
Here’s why the SEC keeps rejecting spot Bitcoin ETF applications
It is not the first time the U.S. Securities and Exchange Commission (SEC) rejected proposals for a Bitcoin spot exchange traded product (ETP), but efforts continue to be made by different financial institutions. The recent attempt made by Cboe BZX Exchange on Jan. 25 to list the Fidelity Wise Origin Bitcoin Trust as a Bitcoin ETP has also failed. The SEC letter published on Feb. 8 pointed out that the exchange has not met its burden to demonstrate the fund is “designed to prevent fraudulent and manipulative acts” and “to protect investors and the public interest”. Although proposals of Bitcoin …
Etf / Feb. 15, 2022
What BTC price slump? Bitcoin outperforms stocks and gold for 3rd year in a row
Bitcoin (BTC) may be down over 30% from its record high of $69,000, but it has emerged as one of the best-performing financial assets in 2021. BTC has bested the U.S. benchmark index, the S&P 500, and the gold. Arcane Research noted in its new report that Bitcoin's year-to-date (YTD) performance came out to be nearly 73%. In comparison, the S&P 500 index surged 28%, and gold dropped by 7% in the same period, which marks the third year that Bitcoin has outperformed. At the core of Bitcoin's extremely bullish performance was higher inflation. The U.S. consumer price index (CPI) …
Etf / Dec. 29, 2021
OKEx shared insights on trading, regulation, DeFi and more during recent Markets Pro AMA
Founded in 2017, OKEx is a centralized cryptocurrency exchange based in Seychelles. According to CoinGecko, OKEx is the world's third-largest cryptocurrency brokerage, with nearly $12 billion in trading volume within the past 24 hours. The exchange lists 312 coins and 518 cryptocurrency trading pairs. It's often difficult for new cryptocurrency enthusiasts to navigate the complex world of trading and finance. OKEx seeks to bring such sophisticated trading methods to everyday users' disposal by building simple user interface. During an exclusive ask me anything, or AMA, session with Cointelegraph Markets Pro Users, OKEx staff discussed trading tools, financial regulation, the OKExChain …
Adoption / Nov. 26, 2021
Decentralized exchanges aren’t ready for derivatives
If the words “derivatives trading” conjures up images of men in suits with disheveled white sleeves rolled up to the elbows and exacerbated expressions on their faces — like something out of The Big Short — then the word decentralized exchanges (DEXs) must conjure up, well, nothing. There are no offices, no floor traders waving papers and certainly no men in suits. DEXs are managed automatically or semi-automatically with the involvement of platform participants in the process of making mission-critical decisions. DEXs are a bulb of a system that is sprouting groundbreaking opportunities for many, but they are not yet …
Technology / Nov. 20, 2021
Acting OCC head warns that ‘fools gold’ in DeFi reminds him of lead-up to GFC
Acting head of the United States Office of the Comptroller of the Currency (OCC) Michael Hsu has warned that the exotic financial products developed in some quarters of crypto and DeFi are reminiscent of those that precipitated the 2008 Global Financial Crisis (GFC). Speaking before the Blockchain Association on Sept. 21, Hsu warned that “innovation for innovation’s sake [...] risks creating a mountain of fool’s good,” drawing analogies between the rapid proliferation of digital asset derivatives and the explosion in mortgage and debt derivatives, such as the Credit Default Swaps (CDS) that preceded the 2008 global financial crisis: “I have …
Regulation / Sept. 24, 2021