The U.S. Securities and Exchange Commission (SEC) has approved two key filings allowing the listing and trading of options on spot Bitcoin Exchange-Traded Funds (ETFs) by both NYSE American LLC and Cboe Exchange, Inc.

A recent paper from the European Central Bank argues that early Bitcoin holders profit at the expense of newer investors (as well as non-holders of Bitcoin) and suggests the flagship cryptocurrency should either be regulated to limit price increases or banned altogether.

Stripe, a major player in the fintech space, has completed its largest acquisition to date, purchasing stablecoin platform Bridge for $1.1 billion. The acquisition was first reported by TechCrunch founder Michael Arrington, who confirmed the deal in an X post on October 20.  

Top stories in the Crypto Roundup today:

• SEC Greenlights Spot Bitcoin ETF Options Trading on NYSE and Cboe
• ECB Paper Claims Bitcoin Enriches Early Adopters at the Expense of Everyone Else 
• FinTech Firm Stripe Bets Big on Stablecoins in its Latest and Largest Acquisition

U.S. SEC Greenlights Trading of Spot Bitcoin ETF Options on NYSE and Cboe

The U.S. Securities and Exchange Commission (SEC) approved two key filings allowing the listing and trading of options on spot Bitcoin Exchange-Traded Funds (ETFs) by both NYSE American LLC and Cboe Exchange, Inc.

As outlined in two memos released by the SEC, the NYSE can now list and trade options for the Grayscale Bitcoin Trust (GBTC), Grayscale Bitcoin Mini Trust (BTC), and Bitwise Bitcoin ETF (BITB). Cboe Exchange has received approval to offer options trading on the Fidelity Wise Origin Bitcoin Fund (FBTC) and ARK 21Shares Bitcoin ETF (ARKB).

In their rule change proposals, both exchanges reminded the Commission that on September 20, it had approved a rule change proposal by Nasdaq ISE, LLC to allow the listing and trading of options on another spot Bitcoin ETF, the iShares Bitcoin Trust (IBIT).

Options are financial derivatives that provide the right but not the obligation to buy or sell an asset, in this case, Bitcoin ETFs, at a predetermined price within a certain time frame. Many in the financial community expect that allowing options on Bitcoin ETFs will draw more institutional investors to the crypto market while also boosting liquidity.

In its approval for the NYSE, the SEC emphasized that options on Bitcoin ETFs will support hedging strategies, promote greater liquidity, and improve price accuracy while reducing volatility for the underlying funds. Additionally, the SEC believes this will lead to better market transparency and efficiency for both Bitcoin ETFs and correlated products.

ECB Paper Claims Bitcoin Enriches Early Adopters at the Expense of Everyone Else

A recent paper from the European Central Bank (ECB) argues that early Bitcoin holders profit at the expense of newer investors (as well as non-holders of Bitcoin) and suggests the flagship cryptocurrency should either be regulated to limit price increases or banned altogether.

The authors claim that those who bought Bitcoin early or during market lows and sold to new investors for a profit are exploiting less experienced buyers. They propose implementing price controls to prevent this perceived exploitation and avoid societal unrest due to wealth inequality, while also encouraging non-Bitcoin holders to support legislation that could either cap Bitcoin prices or eliminate it.

The report also asserts that Bitcoin is rarely used for legitimate payments while inaccurately suggesting it is a preferred method for criminal transactions. A May 2024 report from the U.S. Treasury, however, confirmed that cash remains the dominant choice for illegal activity.

The paper omits any explanation for Bitcoin's substantial price growth since its inception in 2009 despite its limited supply. It also fails to acknowledge Bitcoin's intended role as a decentralized payment method and store of value, designed by its creator Satoshi Nakamoto to protect against fiat currency devaluation.

Contradictions in the paper include claims that Bitcoin lacks intrinsic value while warning it could destabilize society. This overlooks the significant impact of inflation caused by government monetary policies.

For instance, the UK’s public debt for 2023-2024 reached 98% of GDP, the highest since the 1960s. Additionally, in the U.S., money supply growth since 2020 has contributed to a $35 trillion national debt and declining purchasing power for consumers.

FinTech Firm Stripe Bets Big on Stablecoins in its Latest and Largest Acquisition

Stripe, a major player in the fintech space, has completed its largest acquisition to date, purchasing stablecoin platform Bridge for $1.1 billion. The acquisition was first reported by TechCrunch founder Michael Arrington, who confirmed the deal in an X post on October 20. Neither Stripe nor Bridge has yet provided an official comment on the transaction.

Bridge, founded in 2022 by former Coinbase executives Zach Abrams and Sean Yu, operates a stablecoin-based payments network that helps businesses manage stablecoins by offering tools to create, store, send, and accept these digital assets.

Bridge's founders had previously sold Evenly, a Venmo competitor, to Block in 2013. The company raised $58 million in funding earlier this year, including a $40 million Series A round that valued Bridge at $200 million, with the $1.1 billion acquisition price marking a significant leap from that valuation.

This deal represents a major move for Stripe, which was valued at $70 billion in July and processes about 1% of global gross domestic product. In March, Stripe passed $1 trillion in payment volume for the year.

The acquisition also comes shortly after Stripe introduced stablecoin payments using Circle’s USDC on its platform and partnered with Coinbase to integrate its Layer 2 network, Base, into Stripe's crypto payment solutions.

Bridge’s technology, which some have seen as a Web3 alternative to Stripe’s offerings, will further enhance Stripe’s efforts to incorporate stablecoins into its suite of services, especially following the company’s commitment to supporting global stablecoin payments.

State of the Crypto by Top Tier Exchange Volume

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