On Friday, June 28, Bitcoin and Ether options worth a combined $10 billion are set to expire on the leading crypto derivatives exchange Deribit. This expiry, representing over 40% of the current cumulative open interest, could trigger a surge in market volatility as traders adjust their positions.  **Over 25% of the options are set to expire "in the money,"** meaning their holders will see profits, potentially pushing prices higher. Despite recent market downturns, **traders are optimistic about the future of Bitcoin and Ether, anticipating a bullish shift in July.**  The upcoming trading of an Ethereum ETF in the first week of July is also expected to boost sentiment. 

Over 25% of options are set to expire "in the money," Deribit's Luuk Strijers told CoinDesk.

MarketsRenewed Bullishness Expected After Bitcoin, Ether's $10B Options Expiry on FridayOver 25% of options are set to expire "in the money," Deribit's Luuk Strijers told CoinDesk. By Omkar GodboleJun 26, 2024 at 7:11 a.m. UTCUpdated Jun 26, 2024 at 7:14 a.m. UTCShare on FacebookShare on LinkedInShare on X(Shutterstock)Share on FacebookShare on LinkedInShare on XThe size of the impending BTC, ETH options expiry represents over 40% of total notional options open interest on Deribit.Over 25% of options are set to expire "in the money."Traders anticipate a renewed bullish shift in bitcoin and ether next month.It's that time again when discussions about activity in the crypto derivatives take precedence.On Friday at 08:00 UTC, bitcoin (BTC) options worth $6.68 billion and ether (ETH) options worth $3.5 billion are set to expire on the leading crypto derivatives exchange Deribit.The impending expiry, which represents over 40% of the current cumulative open interest of over $23 billion, could trigger a surge in market volatility. Large quarterly expiries often lead to increased volatility, making prices more unpredictable due to higher trading volumes and the closing/rollover of positions."As we approach Friday's large quarterly expiry, potentially influenced by 'quadruple witching' and related volatility in U.S. stock markets, over 25% of Deribit open interest is set to expire in-the-money, equating to over $2.7 billion. The total notional size of the expiry is over $10 billion," Luuk Strijers, chief executive officer at Deribit, told Coindesk in an interview.Options are derivative contracts that give the holder the right but not the obligation to buy or sell the underlying asset at a predetermined price on or before a specific date. A call gives the right to buy, while a put offers the right to sell. On Deribit, one options contract represents one BTC or ETH.Having more than 25% of open interest set to expire in the money means a significant number of derivative contracts are expected to be profitable for their holders at expirations.Bitcoin, the leading cryptocurrency by market value, has dropped nearly 9% this month, testing bargain hunters below $60,000 at one point. As usual, the sell-off has weighed over the broader market, pulling ether down by almost 10%."The recent price drop was caused by miner sales, some pressure from German-seized BTC, and, of course, the imminent transfer of Mt. Gox coins expected in early July," Strijers said.Still, call-put skews show investors are willing to pay a higher premium for near-term and long-term calls offering asymmetric upside than puts, according to data tracked by Amberdata."While short-term bearish sentiment is evident, traders anticipate a positive shift for bitcoin by July 12 and ETH by July 5, looking at options skew. Trading in the ETH ETF is expected to start in the first week of July," Strijers noted.Edited by Parikshit Mishra.DisclosurePlease note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.Omkar GodboleOmkar Godbole is a Co-Managing Editor on CoinDesk's Markets team.Follow @godbole17 on TwitterRead more aboutBitcoinEtherMarketsTradingOptionsDeribit

Renewed Bullishness Expected After Bitcoin, Ether's $10B Options Expiry on Friday

Bitcoin, Ether Options Expiry to Trigger Market Volatility, Expect Renewed Bullishness

The Federal Reserve's preferred inflation gauge, **core PCE**, is expected to show a rise in September, moving away from the Fed's 2% target. According to FactSet, it likely increased by **2.9% year-on-year**, marking 55 consecutive months above the target. This sticky inflation could bolster Fed hawks advocating for slower rate cuts.

Despite this, volatility indices indicate no major turbulence. Volmex's annualized one-day bitcoin implied volatility index (BVIV) hovers around **36%**, suggesting a 24-hour expected price swing of **1.88%**, which is within normal ranges. Low volatility expectations are likely due to anticipated Fed rate cuts next week, with CME's FedWatch tool pricing a **25 basis point cut on Dec. 10** as a done deal.

![BTC's price chart. (TradingView)](https://www.coindesk.com/_next/image?url=https%3A%2F%2Fcdn.sanity.io%2Fimages%2Fs3y3vcno%2Fproduction%2F54f58f7e11aad771b401a3b0d243f2853c40752a-2854x1404.png%3Fauto%3Dformat&w=3840&q=75)

A softer-than-expected inflation report could push the **10-year Treasury yield below 4%**, potentially helping Bitcoin break out of its current trading range of **$92,000-$94,000**. Iliya Kalchev, a Nexo Dispatch analyst, noted that a softer labor read and contained PCE would reinforce the easing narrative, supporting crypto's rebound, while any upside surprise might keep markets range-bound until the Fed clarifies its path.

However, analysts at ING have warned that any decline in the benchmark yield could be short-lived.

The data could similarly impact alternative cryptocurrencies. Ether's one-day implied volatility index is at **57.23%**, implying a **3%** price swing, slightly higher than Bitcoin. Solana's volatility index signals a **3.86%** move, with XRP at **4.3%**.

A softer inflation report could lower the 10-year Treasury yield and support cryptocurrencies.

Friday's Inflation Report: The Key to Unlocking Bitcoin, XRP, ETH, and SOL Price Movements

In the world of private equity, fund managers often follow a simple mantra: buy low, sell high. But what happens when they sell to themselves? This practice, known as continuation funds, is reshaping how profits are made and fees are collected.

**Private equity funds** typically buy companies, improve them, and sell them for a profit. For example, if a fund buys a company for $2 billion and sells it for $3 billion, the fund manager earns a **performance fee** (or "carry") of 20% on the gain. In this case, that's $200 million from the $1 billion increase in value, while the investors (limited partners) take the rest.

However, if the sale results in a loss—say, selling for $1 billion after buying for $2 billion—the fund manager usually gets **no carry** from that deal. They might still earn other fees, but the performance-based reward disappears. This system incentivizes managers to focus on profitable exits.

Continuation funds add a twist: fund managers sell assets from an old fund to a new fund they control, effectively "selling to themselves." This can allow them to **extend holding periods** and potentially earn more fees, even if the asset hasn't been sold to an external buyer. It's a strategy that blurs lines between fund cycles and raises questions about alignment with investor interests.

While this article touches on broader topics like Amazon drivers and crypto gambling, the core insight is how **fee structures** in private equity drive behavior. Understanding these mechanics is crucial for anyone involved in investment funds or curious about financial strategies.

Continuation funds, Amazon drivers, a narrow bank, Trump accounts, crypto gambling and PDT puzzles.

The Secret Behind Private Equity's 'Buy Low, Sell to Yourself' Strategy: How Fund Managers Profit from Continuation Funds

Bitcoin and cryptocurrency prices have rebounded this week as the market anticipates a major Federal Reserve policy shift in December.

**Bitcoin has surged 10% to top $93,000**, marking its best day since May and bringing it close to a $2 trillion market capitalization. This recovery comes after the price dipped below $84,000 earlier in the week.

## Sovereign Funds Buying Bitcoin Dips

BlackRock CEO Larry Fink has revealed that **unnamed sovereign wealth funds are actively buying bitcoin** during recent price declines.

"There are a number of sovereign funds that are standing by," Fink said, adding they're purchasing "incrementally" as bitcoin has fallen from its $126,000 peak.

"I know they bought more in the 80s. And they're establishing a longer position. And you own it over years. This is not a trade. You own it for a purpose," Fink explained, referring to two major bitcoin price swings since October that have sent prices lower.

In recent months, sovereign funds in Abu Dhabi and Luxembourg have disclosed purchases of shares in BlackRock's IBIT bitcoin ETF.

![Larry Fink and Donald Trump discussing bitcoin](https://imageio.forbes.com/specials-images/imageserve/68ce62c731907dbb97ed44ac/Larry-Fink--Donald-Trump--BlackRock--bitcoin--bitcoin-price--bitcoin-price/0x0.jpg?crop=2230%2C1205%2Cx165%2Cy0%2Csafe&height=384&width=480&fit=bounds)

*U.S. president Donald Trump met BlackRock chief executive Larry Fink during Trump's first term in the White House—before either of the pair began supporting bitcoin and pushing up the bitcoin price.*

## U.S. Risks Falling Behind in Digital Revolution

Speaking alongside Coinbase CEO Brian Armstrong and New York Times journalist Andrew Ross Sorkin at a DealBook event, Fink warned that **the United States risks falling behind other countries** if it fails to embrace tokenization and artificial intelligence trends.

"If we don't spend enough faster on digitization and tokenization, other countries will beat us," Fink said, echoing a November warning from President Donald Trump that China is attempting to become the world's "capital of crypto."

Fink also dismissed arguments that bitcoin is fundamentally worthless, calling it an **"asset of fear"** that declines when people feel less fearful.

"You own bitcoin because you're frightened of your physical security. You own it because you're frightened of your financial security. The long-term fundamental reason you own it is because of the debasement of financial assets, because of deficits," Fink explained.

## Tokenization: The Next Internet-Scale Opportunity

In a separate article for The Economist, Fink predicted **"enormous growth" for crypto-based tokenization** in coming years, comparing it to the early days of the internet.

"Tokenisation could advance at the pace of the internet—faster than most expect, with enormous growth over the coming decades," wrote Fink, who leads the $10 trillion asset manager.

"If history is any guide, tokenisation today is roughly where the internet was in 1996—when Amazon had sold just $16 million-worth of books, and three of the rest of today's 'Magnificent Seven' tech giants hadn't even been founded."

Tokenization, which involves creating crypto-based digital versions of real-world and financial assets, has gained significant traction on Wall Street through Fink's advocacy.

"In the future, people won't keep stocks and bonds in one portfolio and crypto in another," Fink wrote. **"Assets of all kinds could one day be bought, sold and held through a single digital wallet."**

## BlackRock's Transformative Role

Fink threw BlackRock's considerable weight behind the push for a spot bitcoin ETF in 2023, calling it the **first step toward a blockchain-based tokenized revolution** that could democratize finance.

"Tokens that represent 'real-world' traditional financial assets (stocks, bonds and so on) remain a tiny share of global equity and fixed-income markets but are growing fast—up roughly 300% in the past 20 months," Fink noted.

BlackRock's bitcoin ETF has dominated the market since a dozen such funds launched in early 2023, significantly outpacing the growth of gold ETFs and opening doors for other cryptocurrencies to receive their own ETFs.

Fink's support for bitcoin and crypto has helped legitimize the technology within traditional finance and paved the way for President Trump to embrace cryptocurrency during his 2024 presidential campaign.

"At first it was hard for the financial world—including us—to see the big idea," Fink acknowledged. "Tokenization was tangled up in the crypto boom, which often looked like speculation. But in recent years traditional finance has seen what was hiding beneath the hype: **tokenization can greatly expand the world of investable assets** beyond the listed stocks and bonds that dominate markets today."

![Bitcoin price chart showing recent volatility](https://imageio.forbes.com/specials-images/imageserve/6930340e16c211aee4c47c45/bitcoin--bitcoin-price--bitcoin-price-prediction--Larry-Fink--Donald-Trump-/0x0.jpg?height=528&width=480&fit=bounds)

*The bitcoin price has dropped in recent weeks but remains far above the peak of its 2021 bull run.*

## Banking Sector Embracing Crypto

Meanwhile, Coinbase CEO Brian Armstrong revealed that **some of the largest banks are working with Coinbase** on stablecoins, crypto custody, and trading services, though he didn't name specific institutions.

This collaboration signals growing institutional acceptance of cryptocurrency infrastructure within the traditional banking sector.

The chief executive of the world’s largest asset manager BlackRock has predicted the “enormous growth” of crypto-based tokenization in coming years...

BlackRock CEO Reveals Sovereign Funds Are Buying Bitcoin Dips, Warns U.S. Risks Falling Behind in Crypto Race

## Market Rally and Bitcoin's Rise

Stocks climbed on Wednesday, with the **Dow industrials adding 408 points (0.9%)**, while **Bitcoin traded above $93,000**, continuing its recovery from earlier in the week. The rally was fueled by expectations of a Federal Reserve rate cut, following new data showing the **private sector shed 32,000 jobs in November**. This "modest fall" in hiring could persuade Fed policymakers to vote for another rate cut next week, according to Stephen Brown of Capital Economics.

## Key Market Movements

- The **Russell 2000 index of small-cap companies rose 1.9%**, leading gains among major U.S. stock benchmarks, as investors anticipate lower borrowing costs boosting economic growth.
- The **Nasdaq composite gained 0.2%**, while tech stocks in the S&P 500 edged lower.
- The **U.S. dollar weakened**, with the WSJ Dollar Index falling for its seventh straight trading day, its longest losing streak since July 2020. Traders are trimming dollar exposure amid speculation that President Trump will select Kevin Hassett as the next Fed chair, who favors lower interest rates.

## Corporate Highlights

- **Walmart closed above a $900 billion market value for the first time**, becoming the 12th U.S. company to hit this milestone, with its stock up 1.8%.
- **Macy's stock slipped 1.1%** despite raising its annual outlook and posting strong quarterly sales, as the improved guidance fell short of investor expectations.
- **Dollar Tree reported stronger-than-forecast adjusted earnings**, kicking off a week of retail earnings.
- **Salesforce shares jumped about 5%** after raising its full-year sales guidance, with its AI product Agentforce surpassing $500 million in annual recurring revenue.
- **Marvell Technology shares hit multimonth highs** after acquiring startup Celestial AI for $3.25 billion and swinging to a quarterly profit.

## Sector-Specific Updates

- **Natural-gas futures surged to their highest price in three years**, above $5 per million British thermal units, due to forecasts for a frigid December, potentially leading to higher heating bills.
- **Chevron announced plans to invest more in offshore drilling projects** next year, shifting focus from mature U.S. shale fields.
- **Tech stocks saw mixed performance**: Microsoft shares dropped 2.5% on reports of cut growth targets for AI sales, while Tesla rose 4.1% on hopes for robotics industry support.

## What This Means for Investors

The market sentiment is leaning towards a **bullish outlook**, driven by anticipation of Fed rate cuts and strong corporate performances. Bitcoin's rise above $93,000 adds to the positive momentum, reflecting broader investor confidence. However, caution remains in sectors like retail, where consumer spending trends are being closely watched.

![Chevron is planning to invest more in offshore drilling projects next year.](https://images.wsj.net/im-94258799?width=620&height=413)

![Black Friday shoppers wait outside Macy's flagship store last month.](https://images.wsj.net/im-79226119?width=620&height=413)

![A Walmart store in Columbus, Ohio, last month.](https://images.wsj.net/im-56289236?width=620&height=413)

![A Dollar Tree store in Washington. The discount retailer reported results Wednesday.](https://images.wsj.net/im-40210403?width=620&height=413)

![The snow storms that have hit the Midwest and Northeast are just the start of what forecasters expect to be a chilly December.](https://images.wsj.net/im-23258936?width=620&height=413)

ADP data shows private sector shed jobs last month

Bitcoin, Ether Options Expiry to Trigger Market Volatility, Expect Renewed Bullishness

Summary:

$10 Billion in Bitcoin and Ether options are set to expire on Friday, June 28.

Over 40% of the current cumulative open interest is represented by this expiry.

More than 25% of open interest is set to expire "in the money," potentially leading to increased market volatility.

Despite recent price drops, traders anticipate a bullish shift for Bitcoin and Ether in July.

The launch of an Ethereum ETF in the first week of July is expected to fuel positive sentiment.

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Friday's Inflation Report: The Key to Unlocking Bitcoin, XRP, ETH, and SOL Price Movements

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Friday's Inflation Report: The Key to Unlocking Bitcoin, XRP, ETH, and SOL Price Movements

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BlackRock CEO Reveals Sovereign Funds Are Buying Bitcoin Dips, Warns U.S. Risks Falling Behind in Crypto Race

Bitcoin Soars Above $93,000 as Stock Market Rallies on Rate Cut Hopes: What's Driving the Surge?