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Bitcoin Rally Fizzles as Token’s Record-Breaking Year Winds Down
A Bitcoin rally is fizzling in the final days of a record-breaking year for the digital asset, as investors assess the remaining impetus from President-elect Donald Trump’s embrace of the cryptocurrency sector.
The largest token changed hands at $96,242 as of 2:05 p.m. Friday in Singapore, holding a retreat of 2% from a day earlier. Smaller rivals including Ether and Dogecoin, a favorite of the meme crowd, struggled for traction.
Trump is pushing ahead with a promise to create a crypto-friendly environment in the US and has backed the idea of establishing a national Bitcoin reserve. Traders are waiting to see if such a stockpile is feasible.
Strive Files for "Bitcoin Bond" ETF Tied to MicroStrategy Holdings
Strive Asset Management is launching a new ETF that will provide exposure to Bitcoin through convertible securities, primarily focusing on MicroStrategy’s holdings.
The Strive Bitcoin Bond ETF will invest at least 80% of its assets in “Bitcoin Bonds” and related derivative instruments, including swaps and options.
As a non-diversified fund, it can concentrate holdings in single issuers like MicroStrategy and allocate more than 25% of assets to software and technology sector companies.
KULR Technology Stock Soars to All-Time High After $21M Bitcoin Purchase
Shares of KULR Technology soared 40.4% to close at a record high $4.80 Thursday after the energy storage company made its first investment in bitcoin worth $21 million.
The electric storage solutions provider reported Thursday that it bought 217.18 bitcoins at an average price of $96,556 per bitcoin.
The move comes after the company said earlier this month it was launching a "Bitcoin Treasury" strategy that called for allocating up to 90% of its surplus cash to the digital currency. It said this $21 million purchase marks its first toward that strategy, with plans to buy more bitcoin in the future.
Record-Breaking $14B Bitcoin Options Expiry Ahead
Around $14 billion worth of Bitcoin options contracts are set to expire on Deribit on December 27. This expiry, representing 44% of the total open interest for Bitcoin options, marks the largest event of its kind on the exchange. Simultaneously, Ethereum (ETH) options worth $3.84 billion will also expire.
Options contracts allow traders to speculate on an asset’s price or hedge against potential losses. This Friday’s settlement could see $4 billion worth of Bitcoin options expire “in the money” (ITM), delivering profits to buyers. However, the potential for market turbulence looms, as traders might roll over or liquidate positions to manage risk.
Meanwhile, analysts are expecting that open interest could shift to the January 31 and March 28 expiries, setting the stage for fresh market dynamics.
Bitcoin Spot ETF Flow
The overall net inflow of the US Bitcoin spot ETF on Thursday was $475.15 million. The total net asset value of Bitcoin spot ETFs is $108.24 billion, and the ETF net asset ratio (market value compared to total Bitcoin market value) is 5.72%.
Source: SoSoValue
The Bitcoin spot ETF with the highest net inflow on December 26 was Fidelity Wise Origin Bitcoin Fund (FBTC), with a net inflow of $6.41 million. Following that was ARK 21Shares Bitcoin ETF (ARKB), with a net inflow of 186.94 million, according to SoSoValue.
Source: SoSoValue