Schlagwort: crypto market news

• IBIT surpasses Deribit with $38B in Bitcoin options open interest, reshaping crypto markets.
• Wall Street’s rise in Bitcoin options brings tighter spreads, deeper liquidity, and less volatility.
• Deribit, now owned by Coinbase, stays popular with crypto-native traders despite losing the top spot.

BlackRock’s iShares Bitcoin Trust has overtaken Coinbase’s Deribit as the leading platform for Bitcoin options, signaling a shift in the center of gravity for crypto trading from offshore hubs to Wall Street.

IBIT takes the lead

Open interest in options tied to the Nasdaq-listed iShares Bitcoin Trust (IBIT) reached nearly $38 billion, outpacing $32 billion on Deribit following Friday’s contract expiry, according to data from Bloomberg and Deribit.

This development marks a significant milestone.

Deribit, founded in 2016, had long dominated Bitcoin options activity and was widely seen as the go-to marketplace for crypto derivatives.

The change comes less than a year after IBIT introduced options in November, underscoring its rapid ascent.

With $84 billion in assets, IBIT is already the world’s largest Bitcoin exchange-traded fund.

The growth of its options market is reinforcing a feedback loop in which deeper liquidity drives legitimacy, attracting more inflows and further strengthening its position.

Wall Street’s growing role in Bitcoin markets

Market participants view the development as part of a broader structural shift in crypto markets.

George Mandres, senior trader at XBTO Trading, said in a Bloomberg report that Wall Street’s increasing participation in Bitcoin options brings “substantial capital and trading expertise.”

He argued that the presence of large financial institutions is contributing to tighter spreads, deeper liquidity, and greater efficiency across the market.

Mandres also suggested that the influence of traditional players could lead to a “volatility of volatility” dampening effect, making Bitcoin price swings less extreme.

As institutional investors weigh Bitcoin alongside traditional assets such as gold or major currencies, he sees the potential for a long-term decline in volatility.

Still, Mandres emphasized that the transition will not result in the complete centralization of liquidity in the US.

Instead, he anticipates the emergence of two parallel ecosystems: one centered around regulated traditional finance (TradFi) products like IBIT, and another in offshore and decentralized finance (DeFi) venues catering to higher-risk traders.

Deribit’s role and the offshore market

Despite losing its top ranking, Deribit remains a key player in Bitcoin derivatives markets.

Acquired by Coinbase for about $2.9 billion in August, the platform continues to attract crypto-native traders drawn to its flexibility and offshore operating model.

For years, Deribit was synonymous with leverage-driven crypto derivatives trading, shaping market dynamics through its dominance.

While IBIT’s rise underscores Wall Street’s growing footprint, Deribit’s continued popularity reflects the enduring demand for less-regulated environments and experimental financial products.

The shift in leadership highlights a fundamental transformation: Bitcoin derivatives are moving closer to the regulated core of the US financial system.

This evolution could reshape how both institutions and retail investors approach the asset class, balancing the appeal of stability and oversight against the appetite for risk and innovation.

As Bitcoin’s role in mainstream finance continues to evolve, the split between regulated and offshore markets may define the next phase of growth in digital assets.

The post IBIT surpasses Deribit as largest Bitcoin options venue appeared first on CoinJournal.

• WLFI burns 7.89M tokens ($1.43M) following $1.06M buyback to reduce circulating supply.
• 99% of WLFI holders approved burn plan; program excludes community liquidity pools.
• Trump family controls $5B in WLFI; token trades at $0.2049 after recent market volatility.

World Liberty Financial (WLFI), a decentralized finance (DeFi) project affiliated with US President Donald Trump, has executed a significant token burn, removing 7.89 million WLFI tokens from circulation, valued at roughly $1.43 million.

The burn follows a $1.06 million buyback across multiple blockchain networks, part of a strategy approved by WLFI holders to stabilize token supply and market dynamics.

WLFI token burn and buyback details

According to onchain data compiled by Lookonchain, the WLFI team collected 4.91 million WLFI (approximately $1.01 million) along with $1.06 million in fees and earnings from liquidity operations.

These funds were used to repurchase 6.04 million WLFI on the open market.

Following these transactions, the team burned 7.89 million WLFI tokens on both the BNB Smart Chain (BNB) and Ethereum (ETH) networks.

A total of 3.06 million WLFI ($638,000) remains on Solana (SOL), with the project indicating that further burns may occur.

The token burn program aims to permanently reduce WLFI’s circulating supply, thereby alleviating selling pressure and supporting market stability.

Community and third-party liquidity pools are not included in the burn process, with the initiative relying solely on fees generated from WLFI-managed liquidity pools.

Governance approval and market context

The burn plan was approved via governance vote earlier this month, with overwhelming support: 99% of WLFI holders voted in favor.

This approval demonstrates strong alignment between the community and the project’s management regarding strategies to manage token supply and enhance long-term value.

The WLFI price has experienced significant fluctuations, falling roughly 33% over the past month.

As of Saturday, the token was trading at $0.2049, marking a 6% increase over the past 24 hours, according to CoinGecko.

Despite this rebound, WLFI remains down more than 38% from its all-time high.

Market analysts and onchain observers have noted that the burn could potentially remove up to 4 million WLFI per day, translating to nearly 2% of the total supply annually, although exact figures have yet to be confirmed.

Trump family holdings and token unlocks

The WLFI project has drawn additional attention due to its connection with the Trump family.

Entities linked to President Donald Trump reportedly control around $5 billion worth of WLFI tokens following a scheduled unlock of 24.6 billion tokens earlier this month.

Initial holders listed on the project’s website include DT Marks DEFI LLC and family members Donald Jr., Barron, and Eric Trump, who collectively held 22.5 billion WLFI.

The token experienced a brief spike to $0.40 following the unlock before retreating to around $0.21.

This volatility highlights both the influence of large token holders and the potential impact of strategic buybacks and burns on market sentiment.

Outlook and implications

The WLFI token burn and repurchase program represents a deliberate effort by the project to strengthen market confidence and mitigate price declines amid recent volatility.

By leveraging governance-approved strategies and onchain revenue streams, WLFI aims to create a sustainable framework for value appreciation.

The project will likely continue monitoring supply and demand dynamics, with future burns on Solana pending further action.

For investors and observers, the ongoing management of WLFI supply, combined with significant holdings by high-profile individuals, underscores the complex interplay of DeFi mechanics and market sentiment in shaping token performance.

The post Trump affiliated World Liberty Financial executes $1.43M token burn amid WLFI market volatility appeared first on CoinJournal.

• Tether seeks $15–20B funding at $500B valuation with SoftBank and Ark in talks.
• A $500B valuation could make Tether one of the world’s largest private firms.
• SoftBank and Ark backing may boost Tether’s push for mainstream legitimacy.

Tether Holdings SA, the issuer of the world’s largest stablecoin, is in early discussions with major investors, including SoftBank Group Corp. and Ark Investment Management LLC, for a multibillion-dollar fundraising round that could place the company among the most valuable private firms globally, reported Bloomberg.

The fundraising effort could value Tether at as much as $500 billion.

The company is seeking between $15 billion and $20 billion in exchange for roughly a 3% stake through a private placement.

A potential $500 billion valuation

If successful, the fundraising would represent Tether’s largest attempt yet to secure external capital and could rank it alongside the most highly valued private companies in the world.

At a $500 billion valuation, Tether would surpass many global blue-chip firms in size, reflecting both the scale of its token issuance and the financial returns generated from its reserves.

Tether’s dollar-pegged stablecoin, USDT, is widely used to move value across crypto markets and beyond, offering a way for investors to transact outside of traditional banking systems.

Backed by cash-like assets, primarily US Treasuries, the company has earned substantial profits from interest income on these reserves.

Chief Executive Officer Paolo Ardoino leads the company, while co-founder Giancarlo Devasini serves as chairman and remains its largest shareholder.

Bloomberg estimated that a $500 billion valuation would value Devasini’s personal stake at nearly $224 billion.

Strategic backing from SoftBank and Ark

Tokyo-based SoftBank, led by founder Masayoshi Son, has a long history of making ambitious technology bets, ranging from self-driving cars to semiconductors and artificial intelligence.

A potential investment in Tether would align with its strategy of pursuing disruptive opportunities, including its planned $30 billion investment in OpenAI.

Ark Investment Management, led by Cathie Wood, has also shown strong interest in digital assets.

The firm has previously invested in Circle Internet Group Inc., Tether’s closest rival in the stablecoin space.

Circle’s USD Coin (USDC) currently has a market value of about $74 billion, compared with $173.5 billion worth of tokens issued by Tether.

The potential involvement of SoftBank and Ark could bolster Tether’s efforts to expand its footprint in mainstream finance and enhance its political legitimacy, particularly in the US, where the company has previously faced scrutiny over its role in facilitating illicit transactions.

Advisory role and industry impact

Cantor Fitzgerald LP, the New York-based investment bank led for years by current US Commerce Secretary Howard Lutnick, is advising Tether on the fundraising.

The firm also provides custody services for Tether’s assets, underscoring its key role in the company’s financial operations.

The fundraising comes as stablecoins increasingly attract attention from investors, regulators, and governments.

With US authorities preparing stricter oversight of digital assets, securing high-profile financial backers could prove vital for Tether’s positioning in global markets.

If the talks progress and funding is secured, Tether’s valuation would mark a milestone not only for the company but also for the broader cryptocurrency ecosystem, signaling the continued integration of digital assets into mainstream finance.

The post SoftBank and Ark consider backing Tether in funding round: report appeared first on CoinJournal.