Bitcoin Futures Frenzy Erupts as Day Traders Pile Into ETF Bets

Oct 15, 2021

Lead Stories

Bitcoin Futures Frenzy Erupts as Day Traders Pile Into ETF Bets
Justina Lee – Bloomberg
Premiums for bullish derivatives are rising across exchanges; SEC seen poised to allow a futures-based fund in coming days
Bitcoin-to-the-moon traders are back with a vengeance as demand jumps for bullish contracts across crypto exchanges. The world’s largest digital currency rose about 3% to more than $59,000 on Friday — taking this month’s rally to over 35% — after Bloomberg News reported the U.S. Securities and Exchange Commission looks poised to allow the country’s first futures-based cryptocurrency ETF.

Big banks warn that Fed-induced market volatility is coming soon
Brian Cheung – Yahoo Finance
Market volatility has dipped since September, but the nation’s top bankers are warning that choppiness could be coming back soon — thanks to the Federal Reserve. In earnings calls this week, executives at the largest U.S. banks said price swings could be back as the central bank attempts to slow (and then reverse) its easy money policies launched last year to insulate the economy from the effects of the COVID-19 pandemic.

Why Stagflation Is Investors’ Biggest Threat As ‘History Repeats Itself’
William Edwards – Business Insider
Last December, Nancy Davis wanted to buy her son a PlayStation 5.
But Sony, its manufacturer, had no more to sell. So she turned to a second-hand seller, paying about double the price for it, she said.
That’s when it hit her: stagflation could be on its way back. Consumers still pay higher prices, but the result isn’t the economic growth that comes from paying a job-supplying corporation for a product or service.

Eyeing higher inflation and volatility, investors turn more selective – fund managers
Aaron Saldanha and Lisa Pauline Mattackal – Reuters
Global investors are looking harder for pockets of opportunity and becoming more selective in their fixed income and equity allocations, some fund managers told Reuters, anticipating volatility spurred by quicker inflation and uncertainty around central bank policy.
“There are a lot of moving parts globally and within the United States, that should create some volatility and opportunity heading into 2022,” Lisa Hornby, head of U.S. Multi-Sector Fixed Income at asset manager Schroders, told the Reuters Global Markets Forum, adding “stagflation” is increasing as a potential risk.

Kraken’s Juthica Chou: Why crypto in mainstream will help shift to options and ETFs
Today UK News
Investing in cryptocurrencies isn’t for the faint-hearted, and tackling the market with complex instruments such as derivatives is an even tougher challenge.
While not available to all investors, derivatives products have been rising in popularity with experienced traders and firms seeking to access crypto without being heavily exposed to volatile prices.


??The World Federation of Exchanges Publishes the Call for Papers for the WFE’s Clearing and Derivatives Conference 2022
The World Federation of Exchanges (“WFE”), the global industry group for CCPs and exchanges, has published a Call for Papers for the WFE’s Clearing and Derivatives Conference 2022. The World Federation of Exchanges is organising its 39th Annual Clearing and Derivatives Conference, hosted by the Malta Stock Exchange, to be held in Valletta, Malta on 27-29 April 2022. If a physical meeting is not possible, the meeting will be held virtually as in 2021.

Retail Trading Propels Schwab to Record Earnings in Third Quarter
Annie Massa – Bloomberg
Charles Schwab Corp. reported record earnings per share in the third quarter as clients opened new brokerage accounts and traded more amid volatile markets.
Adjusted earnings of 84 cents a share topped the 80-cent average estimate of analysts in a Bloomberg survey. Customers opened 1.2 million retail brokerage accounts, almost double the number added in the same period a year earlier, the Westlake, Texas-based company said Friday in a statement.

LME asks members for swift plans in case EU cuts off clearing
Huw Jones – Reuters
The London Metal Exchange has told customers in Europe to draw up contingency plans in case the European Union severs their access to clearing houses in Britain after next June.
The EU has granted Britain so-called ‘temporary equivalence’ access since it cut ties with the bloc last December, allowing the LME and clearing houses run by the London Stock Exchange and ICE to continue serving customers on the continent until June 30, 2022.

MIAX Looks To Disrupt Markets With Focus On Data, Technology, Customers
Renato Capelj – Benzinga
Fair and efficient markets.
Everybody wants them. Few are willing to combine the capital and know-how to make it happen.
That’s the key takeaway from a conversation with MIAX’s chief communications officer Andy Nybo. Read below to find out more on how MIAX is disrupting markets with a data, technology and customer service focus.
Background: Miami International Holdings, MIAX’s parent holding company, is comprised of the Miami International Securities Exchange, MIAX Pearl, MIAX Emerald, the Minneapolis Grain Exchange (MGEX) and the Bermuda Stock Exchange (BSX).
Taken together, MIAX, which was founded by CEO and president Tom Gallagher, is a holistic gateway to equity, options and futures markets.

Regulation & Enforcement

China opens onshore derivative market further to foreign investors
China’s securities regulator said on Friday it will allow qualified foreign institutions to trade more types of onshore derivatives.
Starting Nov. 1, investors under the Qualified Foreign Institutional Investor (QFII) scheme will be allowed to trade commodity futures, commodity options and stock index options, the China Securities Regulatory Commission (CSRC) said.


Have Spreads Changed Over Time?
Phil Mackintosh, Chief Economist, Nasdaq – Traders Magazine
As markets started to automate just over 20 years ago, investors saw huge reductions in spread costs, leading to a pickup in liquidity.
But over the last decade, improvements in liquidity and spreads have been slower. In fact, a quick look at spreads over time, adjusted for volatility, shows that spreads might actually be widening.


Smart beta holds its own despite popularity of thematic ETFs
Jackie Noblett – Financial Times
Thematic strategies have become darlings of the ETF industry, with managers pumping out products that seek to combine outperforming stocks and a story that investors can easily understand.
Their buzz was once the purview of smart beta, which emphasises investment factors that have been shown to deliver outperformance such as momentum, growth or value, but those products have faded in prominence among many managers’ line-ups.


Michigan men charged with stealing $1.5 million worth of textbooks from Amazon’s rental service — and selling them for cash
Lukas I. Alpert – MarketWatch
The group would allegedly rent the books under fake names and using prepaid Visa cards, prosecutors said
It’s a textbook case.
A group of men in Michigan have been charged with stealing $1.5 million in books from’s AMZN, +2.64% textbook rental service and selling them for cash.

****SR: Included among the stolen books was “Options, Futures and Other Derivatives,” which sells new on Amazon for $228.32, and rents for $76.54 a semester.

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