In the past week, three newly created wallets withdrew over $150 million worth of Ethereum (ETH) from Binance and Kraken, as reported by blockchain tracker Lookonchain. The first whale withdrew 35,860 ETH worth more than $64 million from Binance across a series of transactions, while the second pulled out 27,000 Ethereum worth more than $48 million from Binance across four withdrawals. The third wallet withdrew 23,660 ETH worth more than $42 million from Kraken across five transactions. The withdrawals could possibly be reflective of traders choosing to self-custody their crypto amidst the recent regulatory crackdown on the digital asset sector in the United States. Earlier this month, the US Securities and Exchange Commission (SEC) sued Binance, the largest global crypto exchange by trading volume, and the company’s CEO, Changpeng Zhao, for allegedly violating securities laws. A day later, the SEC also sued Coinbase, alleging the top US crypto exchange had operated as an unregistered securities exchange, broker, and clearing agency. It is possible that some traders are withdrawing their cryptocurrency from centralized exchanges and opting to hold it in their own wallets in order to avoid regulatory scrutiny. Despite regulatory uncertainty, some select traders continue to profit in the digital asset marketplace. Lookonchain notes that one “smart whale” has netted more than $6 million trading Lido Staked Ether (stETH) in the past three months. This trader bought 27,606 stETH at $1,629 from March 13 to March 15, sold 12,746 stETH at $1,937 on April 21, bought 15,701 stETH at $1,671 on June 15, and sold 15,125 stETH at $1,724 on June 19. As of writing, Ethereum is trading at $1,787, up nearly 3% in the past 24 hours. Source: The DALY HODL

Deribit, the world’s largest cryptocurrency Options exchange, has announced that investors are showing increased interest in bitcoin Futures and Options contracts that expire two months after the fourth mining reward halving event, which is expected to take place in April 2024. The reduction in the pace of supply expansion by 50% every four years, which is a programmed code of Bitcoin, is known to significantly impact the cryptocurrency’s price. As such, preparations for the halving have already begun, with many investors seeking to participate in the market through Futures and Options contracts. In response to user demand, the Panama-based exchange has decided to launch the June 2024 expiry Futures and Options contracts a week earlier than originally planned, on Thursday at 08:00 UTC. “Normally, Deribit would introduce the June 2024 Options and Futures next week at the June 2023 quarterly expiry. However, with the halving expected in April, clients have requested us to list them earlier to facilitate the trading of these contracts ahead of the regular listing date,” said Deribit’s Chief Commercial Officer Luuk Strijers. Derivatives desks and dealers benefit from trading on exchanges, as it reduces their overall capital requirements and allows them to hedge their exposure relating to bilateral and over-the-counter positions. Futures are financial derivative contracts that obligate parties to buy or sell an asset at a predetermined future date and price. Options are derivative contracts that give the purchaser the right but not the obligation to purchase the underlying asset at a predetermined price on or before a specific date. A call option gives the right to buy, while the put confers the right to sell. Futures work as a hedge against future market volatility, while options are mainly used to hedge or reduce the portfolio’s risk exposure. Sophisticated traders often buy Options or Futures to take a leveraged bullish or bearish bet on the underlying asset at a lower cost. As per historical trends, Bitcoin has rallied in the months leading up to supply-altering events and seen price pullbacks following the event. Source: CoinDesk