Blockchain Bites: Crypto in the Red, BlackRock Green Lights Bitcoin Futures

Bitcoin fell to lows last seen on Jan. 11. Some analysts point to Treasury Security nominee Janet Yellen’s ominous “concern” over crypto as the reason for the sell-off. The recent pullback has some formerly bullish analysts, such as Guggenheim, speculating on whether the cryptocurrency could retrace its 2021 gains in the short term. Elsewhere, a Bitcoin copyright debate is driving people to host their own versions of Satoshi’s white paper while BlackRock, the world’s largest asset manager, gave the green light for two of its funds to trade BTC futures.…

World’s Largest Asset Manager Blackrock to Invest in Bitcoin Futures – Finance Bitcoin News

Blackrock, the world’s largest asset manager with $7.81 trillion under management, is getting into bitcoin. The firm has filed with the U.S. Securities and Exchange Commission (SEC) for two of its funds to invest in bitcoin futures. Blackrock Gets Into Bitcoin Blackrock filed two “statements of additional information” with the SEC on Wednesday. One was for Blackrock Funds V and the other was for Blackrock Global Allocation Fund Inc. Both filings state: Certain funds may engage in futures contracts based on bitcoin. The two filings further detail, “The only bitcoin…

Asset Management Giant BlackRock Hints at Investing in Bitcoin Futures

BlackRock, the world’s largest multi-trillion dollar asset manager, is considering investing in Bitcoin futures through two of its funds.  BlackRock’s Funds Contemplating Bitcoin Futures Investment In a pair of filings with the U.S. Securities and Exchange Commission (SEC) on Wednesday (Jan. 20, 2021), Blackrock revealed that two of its funds may include b. The funds are BlackRock Global Allocation Fund, Inc and BlackRock Fund V. Meanwhile, the filings were specific about the nature of bitcoin futures that the funds may trade. According to the documents, the BlackRock funds may only…

BlackRock Gives 2 Funds Go-Ahead to Invest in Bitcoin Futures

BlackRock, the world’s largest asset manager with $7.81 trillion under management, appears to have granted at least two of its funds the ability to invest in bitcoin futures. Prospectus documents filed with the U.S. Securities and Exchange Commission Wednesday indicate that BlackRock Global Allocation Fund Inc. and BlackRock Funds V are at least eyeing bitcoin. They both include the world’s oldest cryptocurrency on their lists of derivative products cleared for use. BlackRock did not state which commodity exchange it will choose to execute these crypto futures buys. However, the funds…

$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…

Crypto Futures Exchange Bakkt Going Public at a Valuation of $2.1 Billion

Bitcoin futures exchange Bakkt is going public via a merger with VPC Impact Acquisition Holdings, a special purpose acquisition company (SPAC) created for taking startup firms public. Both companies have now confirmed the transaction, and will be listed on the New York Stock Exchange (NYSE) under a new name – Bakkt Holdings Inc., – sometime in the second quarter of 2021. Rumours about the deal have swelled since early January. After the merger, Bakkt is expected to have an enterprise value of $2.1 billion, the company announced on Jan. 11.…

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

Over $2.7 billion worth of futures contracts were liquidated in the last 24 hours, based on data from Bybt. 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 under $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…