 | | | | | | | | January 29, 2025 | | | |  | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Lead Stories | | | CME Group to Launch Options on Bitcoin Friday Futures
CME Group
CME Group, the world's leading derivatives marketplace, today announced it will introduce options on Bitcoin Friday futures on February 24, pending regulatory review.
These new contracts will be the first CME Group cryptocurrency options to be financially-settled, with expiries available every day of the business week, Monday through Friday.
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Miami International Holdings to List Bloomberg 500 Index Futures and Options on MIAX Exchanges
MIAX
Miami International Holdings, Inc. (MIH), a technology-driven leader in building and operating regulated financial markets across multiple asset classes, today announced plans to list Bloomberg 500 Index futures and options on its MIAX exchanges in the second half of 2025, subject to various regulatory filings and approvals. MIAX Bloomberg 500 Index Futures will be listed on MIAX Futures, pending certain filings with the Commodity Futures Trading Commission (CFTC). MIAX Bloomberg 500 Index Options will be listed on MIAX Options, pending certain filings with and subject to approval from the Securities and Exchange Commission (SEC).
The Bloomberg US Large Cap Price Return Index (Bloomberg ticker: B500 Index) provides a transparent, rules-based benchmark of the 500 most highly capitalized U.S. companies, resulting in a more representative benchmark for the large cap segment of the U.S. market compared to similar indices compiled using a discretionary approach. The new MIAX Bloomberg 500 Futures and Options products will offer competitive fees, enhanced product choice and more granular contract sizes providing retail and institutional investors with an alternative way to manage exposure in the U.S. equity market.
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Triple-Levered Nvidia Traders Are Gutpunched by 52% One-Day Loss
Vildana Hajric - Bloomberg
As levered-up US investors sustained eye-popping losses in tech stocks and related ETFs on Monday, they could take some comfort from the fact that another batch of speculative traders across the Atlantic had it even worse. Amid a bruising global rout sparked by anxiety over the rise of China's DeepSeek AI model, the London-listed Leverage Shares 3x NVIDIA ETP slumped 52%, wiping out more than half of its $172 million in assets before trading was halted on Monday. That eclipsed even twice-levered US single-stock funds like GraniteShares 2x Long NVDA Daily ETF (ticker NVDL), which was on course to drop a record 36% as of Monday afternoon.
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Nvidia options draw dip buyers as shares rebound
Saqib Iqbal Ahmed - Reuters
Monday's massive selloff in AI-darling Nvidia's shares did little to blunt options traders' enthusiasm for the chipmaker's shares, with traders quick to pile back into bullish Nvidia contracts as the stock recovered on Tuesday.
Nvidia shares slumped about 17% or close to $593 billion in market value - a record one-day loss for any company - on Monday on worries sparked by a low-cost Chinese artificial intelligence model that threatens the dominance of U.S. rivals. The stock was up about 7% on Tuesday.
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How Will Tesla Stock React to Earnings? What Options Markets Say.
Al Root - Barron's
Options markets can help investors gauge how Tesla stock might react to earnings.
Options give the holder the right to buy or sell a stock at a fixed price at some point in the future. Looking at options that expire soon with strike prices close to where a stock is trading can tell investors what traders expect for post-earnings volatility.
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Understanding the Market's Reaction to Trump-Fueled Volatility
Bloomberg (Video)
President Donald Trump's move to halt trillions in federal spending to align government agencies' outlays with his "Make America Great Again" agenda has sowed dysfunction in Washington and panic across the country. Mike Green, Chief Investment Strategist for Simplify Asset Management, discusses the market reaction to the spate of political volatility brought on by the uncertainty in the nation's capital. Mike speaks with Tom Keene and Paul Sweeney on Bloomberg Radio.
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Wall Street's Levered ETF Boom Is Near-$1 Billion Money Spinner; Revenue of six biggest firms rose 37% year-over-year in 2024; Such funds carry risks like volatility drag and NAV erosion
Isabelle Lee - Bloomberg
A popular ETF trade beloved by market speculators is fast turning into a billion-dollar revenue generator for nimble-footed financial firms. Traders have been diving into leveraged exchange-traded funds, a subset of a derivatives-enhanced products, offering to amp up the daily moves of the world's most popular stocks and indexes. That's enriched the firms behind the majority of these ETFs. They netted around $940 million in revenue in 2024, according to Bloomberg Intelligence, which used napkin math to multiply their assets by their fees. That's a record 37% jump, beating last year's all-time high.
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Memecoin ETF filings spark concerns over 'casino-type' speculation; Proposed funds are among multiple cryptocurrency ETFs filed in wake of Trump's victory
Steve Johnson - Financial Times
Three US asset managers are preparing to launch exchange traded funds investing in so-called "memecoins" linked to US President Donald Trump and his acolyte Elon Musk.
The proposed funds are among a flurry of exotic cryptocurrency ETFs that could be unleashed in the US in the wake of Trump's election victory.
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| | | | | | Exchanges | | | CME Group Futures to Launch on Robinhood, Bringing New Trading Opportunities to Retail Traders
CME Group
CME Group, the world's leading derivatives marketplace, and Robinhood Derivatives, LLC ('Robinhood'), today announced that some of CME Group's most popular futures products have started rolling out on the Robinhood mobile app.
Over the coming weeks, all eligible Robinhood customers in the U.S. will have access to futures products across five major asset classes, including the four leading U.S. equity indices - S&P 500, Nasdaq-100, Russell 2000 and Dow Jones Industrial Average - as well as bitcoin and ether, major FX currency pairs, key metals including gold, silver and copper, and additional commodities such as crude oil and natural gas.
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Cboe Clear Europe 2024 Recap and Look Ahead; Vikesh Patel, President of Cboe Clear Europe, recently sent a note to customers reflecting on the clearing house's accomplishments in 2024 and a look ahead to 2025.
Vikesh Patel - Cboe
As we step into 2025, it's a great moment to look back at the key achievements of 2024 and set our sights on the exciting opportunities ahead. Last year, we witnessed robust growth in our core equities franchise and made significant strides in diversifying our asset classes - both of which will remain key focuses this year to enable you to use our services to maximise the capital efficiencies you could realise.
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| | | | | | Regulation & Enforcement | | | CBOE Seeks SEC Approval for In-Kind Bitcoin and Ethereum ETF Transactions
Sakamoto Nashi - The Currency Analysis
The CBOE BZX Exchange has formally filed a 19b-4 request with the U.S. Securities and Exchange Commission (SEC) to amend the structure of its Bitcoin and Ethereum exchange-traded funds (ETFs). This request, made public by ETF Store President Nate Geraci, aims to allow in-kind creations and redemptions for the 21Shares Core Ethereum ETF and ARK 21Shares Bitcoin ETF.
If the SEC grants approval, these changes would streamline the process for these ETFs, already authorized for trading under BZX Rule 14.11(e)(4). In-kind transactions would permit authorized participants (APs) to exchange ETF shares directly for the underlying assets-Bitcoin or Ethereum-without involving cash transactions. This method could improve efficiency, reduce transaction costs, and simplify the creation and redemption processes by removing the need for the digital assets to be sold first.
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| | | | | | Miscellaneous | | | The evolution of FX markets: A hybrid world of opportunity
Eurex
The foreign exchange (FX) market has undergone significant changes over the past decade as regulatory mandates, technological advancements, and new entrants have reshaped market structures, execution protocols, and workflows. Eurex has been at the forefront of these developments through the promotion and development of FX futures, cooperation with request-for-quote (RFQ) platforms, and the launch of trading protocols and methodologies designed to offer investors choice in a hybrid market. In this article, Eurex's Jens Quiram, Global Head of FIC Derivatives & Repo Sales, and Tobias Rank, Head of FX Product Sales, discuss the recent evolution of the FX market and the role Eurex is playing in enhancing market efficiency and choice.
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