Sim’s proposal aligns with the growing global interest in Bitcoin as a reserve asset. This is evident in the aggressive BTC acquisition strategies of companies like MARA Holdings and MicroStrategy. Meanwhile, the growing institutional adoption is boosted even more by the launch of options on Bitcoin ETFs on major U.S. exchanges. Analysts also predict Bitcoin’s price could surge in 2025, fueled by a weakening U.S. dollar, increased liquidity, and growing adoption metrics.
Vancouver Explores Adding Bitcoin to City Balance Sheet
Ken Sim, the mayor of Vancouver since 2022, announced plans to explore adding Bitcoin (BTC) to the Canadian city’s balance sheet as part of its strategy to diversify its financial resources. During a Vancouver city council meeting on Nov. 26, Sim submitted a notice of motion titled “Preserving the city’s purchasing power through diversification of financial resources: Becoming a Bitcoin-friendly city.” The motion is set to be introduced on Dec. 11, but is not available on the city government’s website yet.
Mayor Ken Sim
Bitcoin advocate and author Jeff Booth revealed in a Nov. 26 X Spaces discussion that the mayor’s proposal aims to establish Bitcoin as a reserve asset for the city. The proposal also aligns with ongoing debates in the United States, where lawmakers in Pennsylvania and the U.S. Senate discussed plans to adopt Bitcoin as a reserve asset after the 2024 elections.
Mayor Sim’s engagement with crypto predates his time in office. During his mayoral campaign, Sim’s political party, A Better City, accepted cryptocurrency donations. While in office, Sim made limited public remarks on Bitcoin or broader crypto adoption. However, a recent Global News interview from Nov. 25 revealed a copy of The Bitcoin Standard by Saifedean Ammous in the mayor’s office, which is a book that is widely read and referred to by crypto enthusiasts to advocate for Bitcoin adoption.
Whether Sim’s motion will gain enough support in the Vancouver City Council remains to be seen. Sim claimed to have fulfilled more than 70% of the 94 campaign promises he made since taking office, and may now make it a priority to position Vancouver as a leader in embracing crypto.
MARA Boosts Bitcoin Holdings
MARA Holdings is also making sure to get its piece of the Bitcoin pie. The mining company announced on Nov. 27 that it acquired 6,474 Bitcoin by using proceeds from its recent $1 billion convertible note offering. The acquisition included an initial purchase of 5,771 BTC at an average price of $95,395 per coin, which was then followed by an additional 703 BTC. MARA’s year-to-date per-share yield on its Bitcoin holdings stands at 36.7%, and the company’s treasury now holds about 34,797 BTC that is valued at $3.3 billion.
As part of its financial strategy, MARA also repurchased a portion of its 2026 notes for $200 million and plans to use the remaining $160 million from the convertible debt raise to buy even more Bitcoin during price dips. This approach is very similar to the strategy pioneered by MicroStrategy, which used corporate debt to build one of the largest Bitcoin treasuries among publicly traded companies.
MicroStrategy’s Bitcoin acquisition strategy has been ongoing since 2020. Its most recent $3 billion senior convertible note issuance at 0% interest forms part of its 21/21 plan to raise $42 billion over three years. Between Nov. 18 and 24, MicroStrategy bought 55,000 BTC at an average price of $97,862 per coin. This brought its total Bitcoin holdings to approximately 386,700 BTC.
Despite its ambitious plans, MicroStrategy faced some criticism for relying so heavily on debt to fund Bitcoin acquisitions. Some people argue it is a risky and unsustainable approach. While the company will not face repayment obligations until 2028, a sharp decline in Bitcoin prices could expose it to major financial risks. Due to these investor concerns, MicroStrategy’s stock price dropped by 25% on Nov. 21.
Growing Money Supply Fuels Bitcoin’s 2025 Outlook
Companies like MicroStrategy will be pleased to hear that analysts predict a Bitcoin bull rally in 2025, fueled by the growing global money supply and a potential decline in the United States dollar. Bitcoin almost reached the $100,000 mark on Nov. 22 before experiencing a correction, and some suggested the crypto could retrace up to 30%. Despite this, the chief crypto analyst at Real Vision, Jamie Coutts, sees the weakening U.S. Dollar Index (DXY) and increased liquidity as setting the stage for a big price surge.
Coutts pointed out the historic correlation between Bitcoin prices and the M2 money supply, which turned positive year-over-year in May of 2024 for the first time since late 2023. This shift already prompted a 58% rise in Bitcoin’s price as investors increasingly see the crypto as a hedge against inflation.
Projections for the global M2 supply suggest it could grow by 18% to exceed $127 trillion in 2025, driven by liquidity injections from the U.S. Federal Reserve. Coutts predicted that Bitcoin could rise to $132,000 or even higher next year, although he warned that cycles are not strictly linear.
Donald Trump’s recent victory in the U.S. presidential election is another factor that is expected to boost Bitcoin’s 2025 rally. Analysts from Bitfinex expect increased risk appetite and a much more supportive regulatory environment under the new administration. Additionally, MicroStrategy’s ongoing Bitcoin acquisition strategy could likely provide more upward momentum.
Bitcoin’s price action over the past month (Source: CoinMarketCap)
Bitcoin’s adoption metrics also seem rather strong, with daily active addresses approaching one million for the first time since 2019. These combined macroeconomic factors and institutional interest point to a bullish trajectory for the crypto in the coming year. However, a potential breakout in the DXY could still pose a risk to this outlook.
MIAX Sapphire Lists Options on Bitcoin ETFs
MIAX Sapphire Options Exchange revised its rules to allow the listing of options on three Bitcoin exchange-traded funds (ETFs), according to a regulatory filing on Nov. 25. The changes allow MIAX Sapphire to list options tied to the Grayscale Bitcoin Trust (GBTC), Grayscale Bitcoin Mini Trust (BTC), and Bitwise Bitcoin ETF (BITB). The exchange is part of Miami International Holdings, and joins Nasdaq and the New York Stock Exchange (NYSE) in offering options on spot Bitcoin ETFs.
This happened after a series of regulatory approvals. In September, the U.S. Securities and Exchange Commission (SEC) allowed Nasdaq to list options on the iShares Bitcoin Trust ETF (IBIT), which made it the first time these products were approved for U.S. trading. In October, the SEC granted similar authorizations to NYSE and Cboe, and in November, the Commodity Futures Trading Commission (CFTC) and the Options Clearing Corporation (OCC) cleared the final hurdles for listing Bitcoin ETF options.
On Nov. 18, which was the first day of trading, options contracts on BlackRock’s IBIT ETF reached almost $2 billion in total exposure. These options allow traders to speculate on Bitcoin prices by buying or selling “call” or “put” contracts at a specified price, with the OCC acting as a safeguard against counterparty risks.
The introduction of spot Bitcoin ETF options on regulated U.S. exchanges is a pivotal moment for the crypto market. Investment managers believe these products will accelerate institutional adoption even more and unlock major upside potential for Bitcoin holders.
Jeff Park, head of alpha strategies at Bitwise Invest, described the move as a monumental advancement that creates compelling opportunities for investors. Spot Bitcoin ETFs were launched in January, and have already surpassed $100 billion in net assets.
This article was originally Posted on Coinpaper.com
