Nasdaq unveils plans for spot Bitcoin options | Bitcoin News by CoinCorner

Transcript

Are options trades coming to Bitcoin? As NASDAQ seeks approval from the SEC to launch a Bitcoin index with the availability to trade options contracts, it seems we're still early, as the number of Bitcoin millionaires has doubled over the last year. And we pay tribute to legendary Bitcoin developer Hal Finney and his contributions to the network.

Kicking things off, it's been a bit of a choppy week when looking at Bitcoin's price action. On Friday, we saw gains of around 7.5% following the shock announcement of RFK Jr. choosing to drop out of the US presidential race and back Republican candidate Donald Trump. Positive as this is, as we now have two pro-Bitcoin candidates on the same side of the election, after the news settled, those gains have all since been given back and more, with the price now sitting at around $58,000 per coin, dropping around 11% from the week's highs.

Despite this drop in price, there are still a lot of bullish developments going on. This week, it was revealed that NASDAQ is seeking approval from the SEC to launch a Bitcoin index with the opportunity to trade options. The index would track the CME CF Bitcoin Real-Time Index and would offer options contracts on the CME exchange. Now, options are effectively listed derivatives that give holders the right to buy or sell an asset, such as a stock or an ETF, at a predetermined price by a set date. They offer traders leverage to amplify their purchasing power, whilst institutional investors typically use them to hedge risk. Exchanges have been applying for spot Bitcoin ETF options as soon as it was clear that the SEC would approve the underlying ETFs in January, but in recent weeks, they have withdrawn and then refiled those applications in response to the SEC's comments. If options on Bitcoin do get approved, it would be another milestone for the asset, breaking into and gaining acceptance within the legacy financial system.

Now, speaking of traditional investment products, the Hong Kong Bitcoin ETFs have been scooping up capital and have now accumulated over 2 billion Hong Kong dollars of assets under management, worth approximately $272 million US. While volumes have been slower than the US Bitcoin ETFs, which now hold over $57 billion, these Hong Kong ETFs have steadily climbed, suggesting a growing institutional appetite for regulated Bitcoin products in Asia. What's interesting about the Hong Kong ETFs is that they also offer an exciting innovation that observers believe could attract more investors over time, where the products allow an in-kind redemption using actual Bitcoin, unlike the cash-only US ETFs. And it appears adoption is spreading across the continent, as other Asian countries such as Singapore, Malaysia, and South Korea are also in the pipeline to launch spot Bitcoin ETFs.

Now, some positive news for everyday investors is that this year, the number of Bitcoin millionaires has doubled. Looking at data from July 2023 to June 2024, the number of Bitcoin millionaires has increased by 85,000, up 111% in the one-year period. This all fundamentally comes down to the price appreciation of Bitcoin over this time period, where the asset has gained 105%. What this demonstrates is that even as Bitcoin is becoming a more mature asset, there still appears to be opportunities to make life-changing returns, despite it not having the outrageous volatility we've seen in previous cycles, where in 2013, the asset gained 5,600% over the year and you could have turned a $17,500 investment into $1 million.

Also in the news, Bitcoin scalability startup Ark Labs has raised $2.5 million in pre-seed funding in a capital raise led by Tim Draper. Ark Labs' co-founder expressed that this funding will help to accelerate the efforts to make Bitcoin transactions as simple and user-friendly as possible. Ark's plan is to tackle multiple issues of how to buy and store Bitcoin, but also how to use it as a medium of exchange for everyday purposes. They say their architecture allows for seamless Bitcoin payments in a way that stays true to Bitcoin's core principles of decentralisation and self-custody by utilising the Lightning Network and trustless servers.

Also this week, independent educational group My First Bitcoin have put out an urgent appeal for crowdfunding capital. The non-profit, which has taught over 35,000 students about Bitcoin in their school, hosted 50-plus meetups a year, and overall contributed tirelessly to the community, is likely to run out of money in September unless they attain some funding. Founder John Dennehy outlined in a post on X that, in order to remain independent, they have to leave a lot of money on the table, and their greatest expense is staffing. Despite staff generally being underpaid for their roles, the costs still add up, and there are a number of back-end roles required to ensure the company's compliance. As a result, they are desperately seeking donations on their website to tide them over until the year's end when more substantial funding will kick in.

For our final story, I want to take a moment to pay tribute to legendary Bitcoin developer Hal Finney, as this week marks the 10th anniversary of his tragic death caused by the degenerative illness ALS. Before Bitcoin, Finney was a respected computer programmer, and in 2008, he became aware of Bitcoin and saw its potential. In 2009, he shared with the world his interest in the asset by posting an iconic tweet, "Running Bitcoin," which prompted emails from the creator Satoshi Nakamoto. Finney ran the early software, mined some of the earliest Bitcoin, helped to fix bugs in the code, and played a role in creating the first Bitcoin wallet. He even received the first-ever peer-to-peer Bitcoin transaction from Satoshi. His passionate contribution directly with Satoshi and on forums led to a pivotal moment when Satoshi handed over a cryptographic key to Finney before he disappeared. Although Hal Finney was taken too young at just 58, his contributions and legacy will live on and never be forgotten by the Bitcoin community.