BlackRock Bitcoin ETF Options Make Unmatched Debut

BlackRock’s iShares Bitcoin Trust (IBIT) became the first spot Bitcoin ETF with options trading, seeing nearly $1.9 billion in notional volume on its first day. Analysts called the trading activity “unheard of,” comparing it to four-year-old products like BITO, which only achieved $363 million on its first day.

The demand for call options fueled Bitcoin’s surge to an all-time high of $93,900. This highlights the potential for options trading to stabilize Bitcoin’s volatility by increasing market liquidity. Other Bitcoin ETF options from Bitwise and Grayscale are set to launch later today too.

After hitting the new ATH, Bitcoin closed the day trading at $92,442, continuing its bullish momentum. The most successful altcoins that rode the wave alongside BTC include meme coins (BONK, BRETT, GOAT), exchange tokens (Bitfinex's LEO, Crypto.com's CRO) and AI tokens (RENDER, GRT).

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Coinbase to Delist wBTC Amid Justin Sun's Influence

As previously rumored, Coinbase will suspend trading of wrapped Bitcoin (wBTC) on December 19, citing listing standards following Justin Sun's growing influence over the protocol. Sun’s partnership with BitGo, the primary custodian of wBTC, raised concerns about governance as BiTGlobal, a Hong Kong entity with ties to Sun, became a joint custodian.

This has caused Coinbase to promote its own tokenized Bitcoin product, cbBTC, which has grown to $1.5 billion in market cap. Wrapped Bitcoin, which brings Bitcoin liquidity to Ethereum, has a $13.6 billion market cap and has long been a staple in DeFi. However, its shifting custody arrangements prompted MakerDAO and Aave to reconsider its role in their protocols.

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MakerDAO (Now Sky) Brings USDS Stablecocin to Solana

Sky, formerly MakerDAO, has expanded its new USDS stablecoin to Solana, marking its first major multi-chain initiative. Enabled by the Wormhole cross-chain protocol, the launch positions USDS as Solana’s first major DeFi-native stablecoin. USDS replaced DAI earlier this year, offering new lending, borrowing, and trading opportunities on Solana’s growing DeFi platforms.

The Solana network currently has $8.2 billion in total value locked, second only to Ethereum in DeFi. Sky’s move aligns with its mission to make decentralized finance accessible to broader audiences. Co-founder Rune Christensen sees this as the start of a multi-chain era for stablecoins. The update will also let Sky tap into the expanding variety of Solana projects that are dominating the charts.

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Judge Denies Kraken's Appeal in SEC Lawsuit

A California judge denied Kraken’s motion to appeal a ruling allowing the SEC’s lawsuit against the exchange to proceed, emphasizing that discovery will determine whether Kraken violated securities laws. The SEC alleges Kraken’s crypto offerings constituted unregistered investment contracts under the Howey test. Judge William Orrick noted the appeal would not expedite case resolution.

Kraken argued the SEC lacked clarity on whether investment contracts require formal agreements or post-sale obligations. Orrick dismissed the claims, referencing existing legal precedents. The SEC has sought to dismiss Kraken’s defenses, stating the exchange aims to complicate the discovery process unnecessarily.

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Data of the Day

The market capitalization of AI and big data tokens has skyrocketed by 131.4% since June, reaching $42.1 billion on November 19. Tokens like Near Protocol, Internet Computer, and Render lead the sector’s growth, buoyed by Bitcoin’s rally and improving investor sentiment.

The sector’s market cap now approaches its March peak of $45 billion, driven by regulatory clarity and positive market momentum. The recovery follows a steep decline earlier in 2024 when the market cap of AI crypto projects fell to $18.2 billion.

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More Breaking News

• Gemini announced its expansion into France after registering as a Virtual Asset Service Provider (VASP), citing opportunities under the country’s regulations.
• Michael Saylor confirmed he will present Bitcoin investment insights to Microsoft's board after being invited by an activist investor group.
• Securitize launched "sTokens," enabling institutional investors to convert tokenized assets like BlackRock's BUIDL into Elixir’s deUSD while maintaining yield.
• The AI-focused memefund of ai16z faced backlash after launching a competing Eliza-themed token following a frontrunning incident, sparking community debate.
• Shaquille O’Neal settled a lawsuit for $11 million over allegations he promoted Astrals NFTs, which were deemed unregistered securities by the court.
• Paxos agreed to acquire Membrane Finance, a licensed electronic money institution in Finland, to expand its stablecoin services across the European Union.
• Japanese investment firm Metaplanet purchased 124.1 BTC for $11.3 million, increasing its total holdings to 1,142.2 BTC and boosting its stock price by 15.1%.

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