First Mover: Bitcoins Hit Exchanges as Bloomberg Touts Crypto and DeFi Hedge Fund Seeks $50M – CoinDesk

The upcoming U.S. presidential election has become one of the most contentious in history, fraught with searing divisions over everything from the economy to race to the continued health of democracy itself.

So its not surprising that Wall Street options traders are now pricing in expectations ofelevated market volatilityaround the November election. Analysts for the investment banking giant Goldman Sachsnoted earlier this monththat price swings of nearly 3% are implied around election day in the Standard & Poors 500 Index of U.S. stocks.

Whats surprising is that options trading on notoriously volatile bitcoin prices, which often trade in sync with stocks, implies a stretch of uncanny calm come November, CoinDesks Omkar Godbolereported Tuesday.

Godbole writes that ample technical factors might explain the discrepancy, from the influence of certain hedging strategies to the reality that the nascent bitcoin-options market is still quite small in relative terms, with most action concentrated in front-month contracts that expire in September.

Another possibility, according to Godbole, is that bitcoin, as a globally traded asset, might actually be less susceptible to the U.S. outcome, even though the cryptocurrency is priced in dollars. The implication could be that bitcoin decouples at that point from the U.S. market.

The U.S. elections will have relatively less impact on bitcoin compared to the U.S. equities, Richard Rosenblum, head of trading at the digital-asset firm GSR, told Godbole.

Bitcoin's expected volatility over the next few months, as implied by the options market, has been falling.

Crypto investment firm Panxora seeks $50M for new hedge fund to buy DeFi tokens

Theres been a months-long string ofastonishing developmentsandridiculous twistsin the fast growing arena of decentralized finance, or DeFi. Digital tokens with names like YAM andSUSHIhave appeared overnight, exploding in value, dominating crypto headlines and sparking serious conversations about the far-reaching potential of digital-asset markets and financial technologies.

With total collateral locked into automated, blockchain-based DeFi trading and lending platforms surging more than 20-fold this year to $13 billion as of last week, big centralized cryptocurrency exchanges like Binance, Coinbase and OKEx haverushed to list the tokensand roll out DeFi offerings to avoid missing out.

Now, one cryptocurrency money manager, Panxora, seeks toraise up to$50 million for a new hedge fundto buy digital tokens associated with the fast-growing decentralized finance (DeFi) sector.

This has got the potential to really change the way finance is carried out, Panxora CEO Gavin Smith said in an interview.

In an ironic twist, Panxoras announcement comes just as the DeFi market appears to be cooling. Just in the past week, total collateral in the systems has declined to about $9.5 billion, according to data trackerDeFi Pulse.Aave, a decentralized lender, saw its LEND tokens fall by 12% during the seven days through Tuesday, according to Messari, a cryptocurrency data firm.

Smith suggests that a correction was bound to come at some point.We expect the market to be volatile in the early years, Smith said. While there is great potential there will inevitably be setbacks along the way.

Bitcoin Watch

Change in BTC held on exchanges.

Key bitcoin (BTC) on-chain metrics have flipped bearish this week, suggesting the top cryptocurrency by market value may remain under pressure in the short-term.

On Tuesday, the net inflow of bitcoin to exchanges (measured by the total change in exchange balances) was 36,800 BTC the biggest single-day rise since the markets crash on March 13, according to data source Chainalysis.

Since Sept. 20, the net daily inflow of bitcoins to exchanges have been increasing and trade intensity has been declining, Philip Gradwell, an economist at Chainalysis, told CoinDesk.

The data point indicates a weakening market, he said.

Token Watch

Ether (ETH):Ether in parked in smart contracts rises tofour-year high.

Wrapped Bitcoin (WBTC), Rens rBTC (RBTC):Supply of tokenized bitcoin on Ethereumpasses $1.1B.

TBTC (TBTC):Thesis-built protocol relaunches after bitcoin-on-Ethereum projectsuffered smart-contract bug in May.

Aavegotchi (GHST):Aave-themed game revolving around value-staked NFTs serves asmeta trip through DeFi ecosystem, Delphi Digital says.

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First Mover: Bitcoins Hit Exchanges as Bloomberg Touts Crypto and DeFi Hedge Fund Seeks $50M - CoinDesk

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