Greenlight Capital establishes short positions in two leveraged ETFs related to MicroStrategy

2025-01-23 11:50

Odaily Planet Daily News: Billionaire founder David Einhorn of Greenlight Capital revealed in his latest letter to investors that Greenlight Capital has established short positions in two leveraged ETFs related to MicroStrategy, the largest enterprise holder of Bitcoin. These funds - T-Rex 2x Long MSTR Daily Target ETF and Defiance Daily Target 2X Long MSTR ETF - have become popular for attempting to double MicroStrategy's returns. David Einhorn explained, "It is more likely that a calm government should no longer borrow trillions of dollars from the bond market to participate in Bitcoin speculation. In fact, doing so has no strategic significance." (CNBC)

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16:51

Ranger Labs Raises $1.9M, Eyes AI-Powered Crypto Trading Products

The builders of Solana-based crypto derivatives exchange Ranger Protocol are jumping on the AI train, too, after raising $1.9 million from venture investors.Ranger's eponymous trading venue pools crypto perps (the most popular investment contract in DeFi for trading tokens like SOL) from multiple protocols to secure good deals for traders. Since launching in late December, it has facilitated $25 million in trades, a drop in the bucket of Solana's total perps landscape.The protocol is now planning to add new product lines that give customers access to AI-assisted trading strategies, co-founder Coby Lim told CoinDesk. A press release described vaults managed by AI agents who mix programmatic trading strategies with social media and data insights.DeFAI (a portmanteau of DeFi and AI) has been taking off for months as enthusiasts of both buzzy tech fields experiment with mixing the two. AI agents can be set up to control their own crypto wallets, opening limitless possibilities."AI and DeFi are on a collision course," co-founder Fathur Rahman (known commonly as Fa2) said. "Automation, predictive modeling, and intelligent execution will redefine trading. AI optimizes strategy, DeFi provides transparency, and together they unlock a new frontier of efficiency."Rahman said AI rollouts are expected in "the coming quarters."In the interim, Ranger's rangers are working on pulling crypto perps from two more protocols, Adrena and Drift, to add to their current base of contracts from Jupiter and Flash. Their bet is Ranger's aggregation strategies source deeper liquidity for institutional perps traders than any one exchange ever could.That's also what Ranger's venture backers are counting on. Viktor Fischer of lead investor RockawayX called Ranger's "smart order routing" a "critical step towards a vibrant Solana perpetuals market."Asymmetric, Big Brain Holdings, RISE Capital and Anagram joined RockawayX in the $1.9 million funding round, which closed in December at a $30 million valuation.

16:30

Glassnode: Bitcoin’s current trajectory mirrors midpoint of 2015-2018 cycle, suggesting ongoing growth

16:21

The US Senate Banking Digital Assets Subcommittee will focus on legislation and regulation to promote strategic Bitcoin reserves and prevent 'Operation Kill 2.0'

16:14

Trump: The United States will become the global capital of artificial intelligence and cryptocurrency

16:01

Crypto for Advisors: The Growth of Stablecoins

In today’s issue, Alec Beckman from Advantage Blockchain explains stablecoins and their growing use cases for institutions and advisors.Then, CK Zheng from ZX Squared Capital shares tips on preparing for tax season in Ask and Expert.Sarah MortonCrypto for AdvisorsSubscribe hereOne of the primary hurdles for blockchain adoption to date has been utility, especially when looking through the lens of financial advisors and how these public blockchains and decentralized finance (DeFi) protocols can impact their clients.Stablecoins - digital currencies pegged to stable assets like the U.S. dollar - have emerged as a powerful tool for modernizing savings, payments, and settlement processes. These innovations present a significant opportunity for advisors to enhance the value they offer to clients while staying ahead of market trends.How can advisors leverage stablecoins to streamline operations, reduce costs, and provide cutting-edge financial solutions? Here’s how stablecoins can become a transformative tool for your clients:SpaceX uses stablecoins to manage foreign exchange (FX) risks from its global Starlink operations. SpaceX shields itself from FX volatility by collecting payments in various currencies and converting them into stablecoins. The stablecoins, pegged to the U.S. dollar, provide a stable intermediary before being converted back to dollars.This approach offers several advantages:This strategy demonstrates how stablecoins can be a powerful tool for multinational corporations and can be applied to managing client portfolios. For financial advisors, stablecoins can elevate portfolios and modernize financial strategies. These assets aren’t just a novelty - they’re a bridge to a more inclusive, efficient, and adaptable financial future. By integrating stablecoins into conversations about savings, payments, or settlements, you position yourself as a forward-thinking advisor prepared to navigate these changes.Alec Beckman, president, Advantage BlockchainThe stablecoin market cap has reached a record $215 billion, predominantly concentrated in the two coins Tether and USDC, having a combined 85% of the market cap. The liquidity of the stablecoin market stays healthy as more stablecoin issuers such as Visa, Stripe, and PayPal enter this unique digital asset sub-class. Given the new Trump administration’s pro-crypto attitude, we expect more crypto-friendly rules and regulations for this asset in the coming months, which will support the further growth of the stablecoin market.Stablecoins are typically designed to stay pegged to the U.S. dollar (though they don’t need to be). The functionality of stablecoins in the crypto market is comparable to money market funds in the traditional financial market. The money market funds have reached a $10 trillion market cap, which serves the purpose of short-term investment and a place to park money. Stablecoins will serve a similar purpose in the digital asset space. The quality and liquidity of the issuer’s holdings of fiat-denominated short-term assets are some of the critical risks associated with stablecoins, especially when the financial market is under great stress.Country borders matter greatly as different countries may have different rules, regulations and license requirements for the stablecoin market. One of the key regulatory requirements associated with stablecoins is around the stability, liquidity, disclosure and transparency of the short-term assets the issuers hold for the underlying stablecoins.CK Zheng, co-founder & CIO, ZX Squared Capitalreached a new all-time highexplainedcrypto task force