Cryptocurrency traders are betting that the Ether rally could extend into the second half of 2021. On Friday, an investor purchased roughly 63,250 bull call spreads tied to Ether and due for expiry on December 29th, according to data source Amberdata. This strategy cost an initial $10 million, as the trader entity shelled out more to buy the $1,900 call than they received from selling the $2,500 call.
Meanwhile, brokerage firm Bernstein said in a research report Monday that the U.S. Securities and Exchange Commission’s (SEC) stance on spot Bitcoin exchange traded funds (ETF) is a difficult one to hold, and the probability for approval is fairly high. Bernstein notes that the SEC already allows futures-based Bitcoin ETFs, and recently approved leverage-based futures ETFs on the premise that futures pricing comes from a regulated exchange like the CME.
The Monetary Authority of Singapore (MAS) announced on Monday that crypto service providers in Singapore would need to deposit customer assets into a statutory trust before the end of the year for safekeeping. The MAS has also restricted cryptocurrency service providers from facilitating lending and staking of tokens by their retail customers, but institutional and accredited investors could continue to take advantage of these services.
This will mitigate the risk of loss or misuse of customers’ assets, and facilitate the recovery of customers’ assets in the event of a DPT (Digital Payment Token or Cryptocurrency) service provider’s insolvency, the central bank said.