Bitcoin Hits All-Time High After BTC ETF Options Debut, Memecoins Make Moves, and MicroStrategy Continues To Surge

Takeaways

• BlackRock’s iShares Bitcoin Trust became the first US spot bitcoin ETF approved for options trading: The price of bitcoin subsequently surged to nearly $98,000 on Thursday, reaching a new all-time high.
• Institutional interest in MicroStrategy surged this week, with the value of those holdings jumping to $15.3 billion: Microstrategy founder Michael Saylor has continued to purchase bitcoin and MSTR shares have seen year-to-date gains of roughly 450%.
• Trump considers Teresa Goody Guillén for SEC chair: Her appointment would likely usher in crypto-friendly policies and regulatory reform.
• Meme coins including Bonk, Mog, and Brett have set all-time highs amid a rally partly driven by the resurgence of DOGE to $0.43: Bonk surged 120% following a burn campaign earlier this week, while Moo Deng also hit record prices.
• Russia has drafted amendments to tax crypto income, classifying digital assets as property: The new laws would subject trading and mining income to a 15% personal income tax, while VAT exemptions would apply to crypto transactions.

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Options Trading for Spot BTC ETF Goes Live for the First Time

Options trading for a US spot bitcoin ETF became available for the first time this week, with BlackRock’s IBIT ETF becoming the first to allow options trading on their fund. The launch came after the Commodity Futures Trading Commission (CFTC) advisory and SEC granted approval.

In the fund’s first day with options functionality, it saw a staggering $1.9 billion in options traded, which analysts of the crypto ETF space have referred to as “unheard of”. The price of bitcoin subsequently surged later in the week, hitting an all-time high above $98,000 on Thursday. SEC chair and crypto industry antagonist Gary Gensler also announced Thursday he would resign from his position on January 20, another positive catalyst for crypto prices.

Options trading caters to both retail traders, who typically speculate, and institutional investors, who use options for hedging. Spot bitcoin ETF options could see higher speculative activity than traditional equity ETF options because of the asset’s appeal to a growing collection of retail investors.

Wall Street Titans Bet Big on MicroStrategy as MSTR Outpaces Bitcoin

MicroStrategy (MSTR) has captured significant attention from institutional investors, with Wall Street giants increasing their stakes. The business intelligence firm now holds 331,200 bitcoin, valued at approximately $30 billion, following its largest single-day purchase of $4.6 billion on Monday.

Recent 13F filings, which offer insights into institutional holdings, reveal a huge surge in interest from major investment managers. The number of institutional holders of MicroStrategy rose from 667 to 738 as of September 30, with the reported value of holdings climbing to $15.3 billion. Notable buyers include Vanguard Group and Capital International Investors.

Other financial titans including Morgan Stanley, Goldman Sachs, and Bank of America also boosted their stakes. Morgan Stanley purchased 8 million shares, representing a 500% increase compared to the previous quarter. Goldman Sachs and Bank of America also added 696,000 and 766,000 shares, respectively.

MicroStrategy's stock has outperformed bitcoin in 2024, with a year-to-date gain of 450% compared to bitcoin's 110%. Analysts have pointed to the firm’s ability to generate yield on its bitcoin holdings through leverage strategies, distinguishing it from direct bitcoin investments and spot ETFs.

Trump Considering Crypto Lawyer Teresa Goody Guillén for SEC Chair

President-elect Donald Trump is reportedly considering Teresa Goody Guillén, a seasoned securities lawyer and partner at BakerHostetler, to lead the SEC. With experience in blockchain regulation and advocacy for the crypto industry, Goody Guillén is widely viewed as a strong candidate by the crypto space. Her appointment could signal a pro-business shift at the SEC, focusing on reducing regulation by enforcement.

Goody Guillén's background includes serving in the SEC's Office of the General Counsel and advising clients against SEC enforcement cases during her tenure at Kalorama Partners. Industry leaders have highlighted her deep understanding of securities law and her potential to transform the regulatory landscape.

This consideration aligns closely with Trump’s campaign promises to revamp the SEC and fire current chair Gary Gensler. Goody Guillén, however, is far from the only consideration. She’s on a shortlist of candidates including former SEC commissioner Paul Atkins and crypto-friendly figures like Brian Brooks.

Several Memecoins Surge to All-Time Highs Amid Dogecoin Rally

A number of prominent memecoins, including Bonk (BONK), Mog Coin (MOG), and Brett (BRETT), hit all-time highs over the weekend and continued to perform strongly into the week , fueled by surging interest in the memecoin sector. DOGE also experienced a recent spike to a three-year high of $0.43, linked to Elon Musk’s involvement in the Department of Government Efficiency (D.O.G.E.)

BONK, Solana’s second-largest memecoin by market cap, reached $0.000049 on Saturday, a 120% WoW increase. The rise followed a campaign to burn up to 1 trillion BONK tokens (worth over $39 million) by Dec 25, incentivizing social media engagement and reducing supply. Meanwhile, Ethereum layer-2 token Brett (BRETT) and Mog Coin (MOG) both set new price records.

Dogecoin’s spike to over $0.43 earlier this month, its highest price in three years, has largely served as the catalyst for the rally seen in the broader memecoin sector.

Russia Proposes 15% Tax on Crypto Trading and Mining Income

The Russian government has approved draft amendments to tax income from cryptocurrency trading and mining, classifying digital assets as property for tax purposes. The proposed legislation will tax mining income based on its market value at receipt, while allowing miners to deduct related operational expenses from taxable income.

Crypto transactions will be exempt from VAT, but income from trading will be subject to personal income tax rates similar to securities transactions, capped at 15%. Additionally, mining operators will be required to disclose information about individuals using their infrastructure to ensure compliance.

If implemented, the new measures are expected to formalize taxation frameworks for Russia's growing crypto industry, while exempting crypto transactions from VAT might encourage market activity.

-The Gemini Team