ATHs, Poly Has No Future, IBITs Billion Dollar Day, Mt. Gox On The Move, Strategic BTC Reserve

All time highs, Babe.

MJL Capital's call of a shift from the range-bound doldrums of Q2 2024 to the 'buy everything you can' momentum of Q3 has, so far, proven to be spot on.Following last week’s U.S. election, both the S&P and NASDAQ reached new highs, while Bitcoin has continued its march toward the allusive $100K mark, with other assets (ETH, SOL, other alts) closely following. Treasury yields have remained volatile.

The recent 'risk-on' sentimental shift reflects investors' pursuit of higher returns to outpace inflation and anticipated fiscal spending under the newly elected, sweeping, "pro-growth" Republican administration. Needless to say, an administration that is more supportive of the digital economy. Coming full circle, the best place to park your ASSets, inflation-resistant investments that operate in a (mostly) decentralized landscape free from governmental collusion: Digital Assets.

And we're not alone in this sentiment.

BTC alone has outperformed NASDAQ by ~20% while the crypto market at large has outperformed the index by >20%. Institutionally, the "Coinbase-Premium" (price variance between exchanges) indicates strong buying interest from large scale U.S. investors, as Coinbase is one of the primary regulated exchanges favored by U.S. institutions. Need more support? Take a look at D.A. ETF inflows. In 2024, U.S. Bitcoin spot ETFs have attracted over $20 billion in inflows, surpassing the first-year inflows of gold ETFs by more than tenfold while the total assets under management (AUM) for Bitcoin spot ETFs have reached $60 billion. iShares Bitcoin Trust (IBIT) alone recorded a groundbreaking $1.12 billion in single-day inflows on November 7. Over $1.1B... In one day.

Meanwhile, the altcoin market has outperformed BTC by ~10% while indices tracking the scale of altcoin speculation remain near cyclical lows, suggesting there may still be room for further growth in altcoins this cycle. That said, performance across the altcoin market remains mixed as some coins will continue to selectively outperform others.

Top Stories

Crypto's One Hit Wonder: Polymarket

Over $326 million in open interest (OI) on Polymarket evaporated within two days following the resolution of the platform's largest betting markets around the U.S. presidential election. OI on Polymarket plummeted from a high of $510 million to $184 million after former President Donald Trump was declared the victor over Vice President Kamala Harris. At its peak, Trump’s OI for winning the election reached $199.54 million, while OI favoring Harris topped out at $85.74 million. A separate market on the popular vote also saw a sharp decrease, with $80 million settled in OI; support for Trump peaked at $35.9 million, while Harris led with $44 million. With the election concluded, Polymarket is expected to see a lull in activity as attention shifts from political betting to alternative markets like sports. But ask yourself (especially Americans)... Would you rather use Polymarket or DraftKings or one of the other 500 sports betting websites legal in America? This cyclical slowdown is typical for prediction markets, which often see peaks around major events and quieter periods in between.

Source: The Block

IBIT's Billion Dollar Day

iShares Bitcoin Trust (IBIT) recorded a groundbreaking $1.12 billion in single-day inflows on November 7, surpassing its previous record of $872 million set just a week earlier on October 30. This influx reflects intensifying institutional interest in Bitcoin, coinciding with the cryptocurrency’s price reaching new all-time highs and breaking out of an eight-month trading range between $54,000 and $73,000. The inflows helped boost IBIT's assets under management to $33.91 billion and came amid post-election optimism that saw the Nasdaq and S&P 500 also hit record levels. Bitwise data highlights that Bitcoin ETFs have attracted over $20 billion in their first year, vastly outpacing gold ETFs’ initial growth—a clear indicator of institutions’ growing comfort with Bitcoin as a regulated investment. As institutional inflows continue to accelerate, analysts are watching to see if this momentum will sustain through year-end and spark a rise in on-chain activity, suggesting enduring confidence in Bitcoin as a mainstream financial asset.

Source: Farside

Ethereum Foundation Reveals New Conflict of Interest Policy Amid Community Concerns

The Ethereum Foundation (EF) has published a conflict of interest policy requiring employees to disclose substantial investments, high-paying external roles, and major angel investments. The policy, outlined in EF’s 2024 report, was created in response to community concerns over foundation researchers, like Justin Drake and Dankrad Feist, taking advisory roles at external projects. Following backlash, both stepped down from their positions at EigenLayer. EF’s report also detailed its spending, with $124.9 million allocated in 2023 to various Ethereum initiatives. The foundation’s treasury holds $970.2 million, mainly in ETH. Additionally, Protocol Guild, an EF-backed organization supporting 181 core contributors, has distributed $20 million to bolster ecosystem neutrality and cohesion.

Wintermute Proposes Revenue Sharing for Ethena’s sENA Stakers

Wintermute, a major crypto market maker, has proposed that Ethena distribute part of its substantial protocol revenue to holders of its staked token, sENA. In a governance proposal submitted on November 7, Wintermute argued that Ethena's protocol, which generated $128 million in revenue this year through its stablecoin USDe, should reward sENA stakers, addressing a gap between stakers and the platform’s growth. Currently, sENA holders do not benefit directly from protocol revenue, and Wintermute suggests creating a roadmap to share revenue once Ethena meets certain milestones, such as increased USDe supply and market integration. This request for revenue sharing follows similar movements across the DeFi space, with platforms like Uniswap, Aave, and Curve Finance reconsidering ways to provide returns to their token holders. Wintermute's proposal underscores ongoing debates in DeFi governance about aligning rewards with protocol success, although such revenue-sharing initiatives may expose DeFi assets to potential regulatory scrutiny if they are deemed to create an expectation of profit for investors.

Regulation

U.S. to Establish Strategic Bitcoin Reserve Following Trump Election Victory

U.S. Senator Cynthia Lummis announced plans for a government-owned "strategic Bitcoin reserve" after Donald Trump's election victory, aligning with Trump's campaign promise to retain all Bitcoin held by the government. In a November 6 tweet, Lummis emphasized that the reserve plan would proceed, a sentiment echoed in her proposed BITCOIN Act, which seeks to stockpile up to 1 million BTC over 20 years. Trump, in previous statements, committed to preserving all government-held Bitcoin and creating a strategic Bitcoin reserve if elected. Currently, the U.S. government holds roughly 212,847 BTC, acquired mainly through criminal seizures, representing about 1% of the total Bitcoin supply. Trump’s pro-crypto stance has included pledges to support domestic Bitcoin mining and to implement a regulatory framework favoring cryptocurrency growth, potentially putting the U.S. on a path to become a global leader in Bitcoin reserves and crypto regulation.

SEC Chair Gary Gensler Expected to Resign Following Trump Victory, Analyst Predicts

Following Donald Trump's presidential win, analysts speculate that SEC Chair Gary Gensler may step down to align with the incoming administration's policies. Markus Thielen, CEO of 10x Research, noted that SEC chairs typically resign when a new president takes office, citing precedents set by past SEC heads Jay Clayton and Mary Jo White, who both stepped down when administrations changed. Gensler, appointed by President Biden, has led an intense regulatory crackdown on the crypto industry, targeting exchanges, DeFi projects, and developers—a stance that many in the crypto community see as hostile. Trump's commitment to revising crypto regulations, including his pledge to end Biden’s perceived "anti-crypto crusade," has increased expectations that Gensler might leave office in the coming months. While the president cannot directly fire Gensler without cause, he can appoint another SEC commissioner as chair, effectively shifting control. This potential leadership change has been echoed by lawmakers like Representative French Hill, who advocates for new SEC leadership regardless of which party holds the presidency, citing Gensler's regulatory approach as "fear-mongering."

Former Binance CEO CZ Considers Offers for Binance Stake Amid $53 Billion Net Worth Surge

Former Binance CEO Changpeng "CZ" Zhao has reportedly received offers for his controlling stake in the cryptocurrency exchange Binance, though he has not disclosed any intention to sell or identified potential buyers, according to Bloomberg. CZ’s equity in Binance represents a substantial portion of his estimated $53 billion net worth, which saw a $12 billion spike following the U.S. presidential election, as reported by the Bloomberg Billionaire Index. CZ has indicated he is open to reviewing offers, though he has not committed to retaining his stake in Binance indefinitely. This development follows a high-profile legal settlement in November 2023, in which CZ pled guilty to violating the Bank Secrecy Act, paid a $50 million fine, resigned as Binance CEO, and served a four-month prison sentence as part of an agreement with the U.S. Department of Justice.

Mt. Gox Moves $2.2 Billion in Bitcoin, Raising Questions on Creditor Repayments

Defunct Bitcoin exchange Mt. Gox transferred around 32,371 BTC, worth approximately $2.2 billion, to unmarked wallets on Monday, marking its largest transaction in months. This transfer follows a smaller move of 500 BTC last week, though it’s unclear if these transactions are part of ongoing creditor repayments tied to Mt. Gox’s infamous 2014 security breach. Previous transfers have often signaled upcoming payouts through exchanges like Bitstamp and Kraken. Meanwhile, Mt. Gox recently announced it would extend its repayment deadline from October 31, 2024, to October 31, 2025, leaving creditors waiting longer for reimbursement.

Eastern Europe Ranks Fourth Globally in Crypto Market Amidst Regional Tensions

Despite the ongoing Russia-Ukraine conflict, Eastern Europe maintains its position as the fourth-largest crypto market worldwide, with $499.14 billion in inflows from July 2023 to June 2024, comprising about 11% of global crypto activity. Two-thirds of these funds flow into centralized exchanges, while one-third goes to DeFi platforms, primarily driven by institutional and professional investors, with retail transactions making up less than 10%. Ukraine and Russia are the region's only entries in Chainalysis' global adoption index, ranking sixth and seventh respectively, with different adoption drivers; Ukraine is aligning with EU MiCA standards amid increased institutional activity, while Russia, prompted by sanctions, has shifted to no-KYC exchanges and legalized crypto mining and certain international crypto transactions. However, Russia recently implemented restrictions on electricity use for private miners and prohibited mining in some regions due to power constraints.

Source: Chainalysis

Other Domestic Regulation Updates

• DWF Labs dismisses partner over drink spiking allegations, removes Eugene Ng from team page
• U.S. FDIC Has Told Banks to Hold Off on Crypto Services 23 Times
• Post-election regulatory environment is more important for Ethereum, altcoins: Bitwise CIO
• Immutable says it received a Wells notice from the SEC indicating a possible lawsuit
• 21Shares looks to secure SEC approval for XRP ETF
• Michigan State Pension Fund buys $10M Ethereum and hosts first U.S. pension fund to buy spot Ethereum ETF shares

Other International Regulation Updates

• Bhutan government moves $66 million in bitcoin to Binance deposit address
• German Corporate Giants Test Mining Bitcoin With Surplus Energy
• Legion, Bluprynt Partner to Facilitate MiCA-Compliant ICOs 
• Monetary Authority of Singapore Unveils Plans to Advance Asset Tokenization
• ETFs, Stablecoins Top Inaugural Agenda for South Korean Crypto Regulator

Pain & Gain

Pain

• Hacker exploits Truth Terminal founder's X account, nets $600K by promoting a scam token

Gain