Cantor Fitzgerald Acquires 5% Stake in Tether

Cboe Bitcoin ETF Options | ETFs Surpass $30B Inflows

Marco Manoppo & Karon Pangestu
November 25, 2024

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Good Morning.

PumpFun is getting more degenerate by the minute, potentially risking a ban shortly if the team doesn’t act. Does that sound a bit too boomer-ish? Maybe, but we’re truly living in the dystopian future we imagined 20 years ago.

In Today's Email:

What Matters: Cantor Acquires 5% Stake in Tether 💵
Product: Cboe Bitcoin Options 🪙
Charts: ETH Onchain Volume, US Bitcoin ETF Inflows 📈

Narratives: SAND and MANA led the large cap rally in the past week.

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WHAT MATTERS

Cantor Fitzgerald Acquires 5% Stake in Tether

IMG: Decrypt

State of play: Cantor Fitzgerald, a financial services giant, negotiated a 5% ownership stake in Tether within the past year, valuing the stablecoin issuer at approximately $12B.

This deal aligns with Cantor's role in managing the majority of Tether’s $133B reserves.
Howard Lutnick, Cantor's CEO, recently nominated for Commerce Secretary, is seen by Tether as a key ally against proposed regulations targeting offshore stablecoins.
Tether denies claims of regulatory influence or ongoing investigations, emphasizing its growth, including $7.7B in profits this year.

What’s next: Lutnick is in discussion with Tether to allow clients to borrow money using BTC as collateral.

It will start with $2B in funds, which could eventually grow to $10B+

For builders and investors: As Tether’s valuation and profitability grow, the outcome of its relationship with Cantor and regulatory scrutiny could affect stablecoin competition, particularly with US-based stablecoins seeking to gain market share.

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PRODUCT OF THE WEEK

Cboe to Launch Spot Bitcoin ETF Index Options

Cboe Global Markets will launch the first-ever cash-settled index options tied to spot Bitcoin ETFs on December 2, 2024.

These options will be based on the Cboe Bitcoin US ETF Index.
The options will enable investors to engage with Bitcoin indirectly by tracking the performance of spot Bitcoin ETFs listed on US exchanges.
Designed with a European-style exercise and cash settlement, the product offers a simplified alternative to physically delivered ETFs.
Cboe will also introduce Mini Bitcoin US ETF Index options, with a smaller notional value, targeting retail and institutional traders.
This launch expands Cboe’s existing digital asset derivatives portfolio.

Other cool products:

Lorenzo Protocol, a Bitcoin liquidity layer.
BlazingBot, a trading bot and sniping toolkit.
Mintable Vault, an NFT management platform.
BNB Multisender, a BEP-20 Tokens multisender.
Tonyielding, a yield farming solution on the TON blockchain.

CHARTS OF THE WEEK

Ethereum Onchain Volume Hits $7.13B

State of play: Ethereum’s daily onchain volume reached $7.13B on November 15, 2024, the highest of the year and a 1% increase over the previous peak in March.

This surge coincides with a bullish shift in the broader crypto market, driven by factors such as Bitcoin's rally to new ATHs and ETF inflows for both Bitcoin and Ethereum.
November marked an 85% increase in Ethereum's onchain volume compared to the start of the month.
This could be a signal of a resurgence in network activity as liquidity transitions on-chain following large-cap rallies.

Our take: Memes leading the market align with these onchain metrics.

US Bitcoin ETFs Surpass $30B Inflows

Source: SoSoValue

State of play: US spot Bitcoin ETFs have surpassed $30B in cumulative net inflows since their January debut, driven by strong market momentum following Donald Trump's re-election.

On Thursday alone, the 12 Bitcoin ETFs attracted $1B in net inflows, led by BlackRock’s IBIT with $608.41M.
The funds’ total net asset value also crossed $100B this week as Bitcoin neared the $100,000 milestone.
In contrast, US spot Ethereum ETFs reported $9.05M in net outflows, marking six consecutive days of negative flows.

Our take: Are you still bearish anon?

QUICK BITES

Sky Mavis lays off 21% of the workforce.
FIFA licenses a blockchain-based mobile game.
Crypto liquidations cross $500M in the past day.
Coin Center warns of draconian surveillance policies.
Trump nominates pro-crypto Scott Bessent as Treasury secretary.
Lutnick, Cantor Fitzgerald negotiated a 5% ownership stake in Tether.
Ex Coatgue Exec co-founds a new venture firm, aiming for $500M AUM.

NOTEWORTHY READS & MEME

Kaizen’s read on a new plan.
CoinWire’s read on influencer memecoins promotion stats.
Binance’s read on exploring the future of AI agents in crypto.

— 0xsifu (@0xSifu)
2:45 AM • Nov 24, 2024

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Disclaimer: All the information presented in this publication and its affiliates is strictly for educational purposes only. It should not be construed or taken as financial, legal, investment, or any other form of advice.