A recent report indicates that spot bitcoin exchange-traded funds (ETFs) are poised to receive approval from Hong Kong regulators as early as this Monday, as stated by “people familiar with the matter.” Harvest, Hashkey and Bosera ETFs Likely to Debut in Hong Kong Next Week Following the approval of 11 spot bitcoin ETFs in the […]
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El Salvador Has More Bitcoin Than Public Estimates With Multiple BTC Revenue Sources, President Bukele Indicates
President Nayib Bukele of El Salvador has indicated that his country’s bitcoin holdings may exceed public estimates. He revealed that El Salvador has been generating bitcoin-related revenue from various sources in addition to the capital gains from bitcoin purchased since its legalization as a legal tender in the country. ‘El Salvador Is Bitcoin Country’ El […]
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Blackrock Lines up $2 Billion for Spot Bitcoin ETF Launch, Sources Say
Blackrock, the world’s largest asset manager, has reportedly lined up more than billion for its spot bitcoin exchange-traded fund (ETF) within days of launch. Vaneck’s head of digital assets research and a Bloomberg ETF analyst have independently verified with their sources that Blackrock has a “big day one” capital lined up for its spot bitcoin ETF.
Blackrock Prepares for ‘Big Day One’ of Spot Bitcoin ETF Launch
The world’s largest asset manager has reportedly lined up billion in capital for its upcoming spot bitcoin exchange-traded fund (ETF) launch, according to Vaneck’s head of digital assets research, Matthew Sigel. Vaneck is among the asset managers that have filed to launch a spot bitcoin ETF with the U.S. Securities and Exchange Commission (SEC).
Blackrock, Vaneck, and nine other spot bitcoin ETF applicants are waiting for the green light from the SEC to launch spot bitcoin ETFs. Sigel revealed during an X Space discussion hosted by The Block on Friday:
I heard from a pretty well-placed source that Blackrock has more than billion lined up in week one in new incremental flows from existing bitcoin holders who are adding to positions.
VanEck's Matthew Sigel just said he's heard from a well placed source that BlackRock has billion of capital lined up from existing bitcoin holders that want to rotate into spot bitcoin ETFs in week one https://t.co/rP23TfO7iT
— Tim Copeland (@Timccopeland) January 5, 2024
However, Sigel noted: “I can’t vouch for that. But you know, that’s what everyone is doing. Just making phone calls and trying to find the folks who can write checks into these products.”
The Vaneck head of digital assets research added: “If that billion happened in week one, you know, that would blow away our estimates.” He clarified that his asset management firm has predicted .5 billion of capital to flow into spot bitcoin ETFs in the first quarter of trading. “We’re at .5 billion in the first quarter of trading, which we do by looking at the past flows into the first gold ETF and adjusting by the U.S. money supply,” he explained, emphasizing: “We have a billion market opportunity over two years based on the similar analysis.”
In December last year, Blackrock revealed in an SEC filing a plan to seed its spot bitcoin ETF with million on Jan. 3. In October last year, the asset manager seeded its spot bitcoin ETF with 0K. Blackrock has named Jane Street and JPMorgan as authorized participants for its spot bitcoin ETF.
Commenting on Blackrock lining up billion for its spot bitcoin ETF launch, Bloomberg ETF analyst Eric Balchunas said on X: “It would be on brand for Blackrock. They’ve lined up and injected big cash into new ETFs on the first day of trading so it registers as volume/flows. *If* it’s true, b would blow away all first day/week volume/aum records for an ETF.”
The analyst then noted that out of the “25 most successful ETF launches of all time,” Blackrock dominates the top 10. “This is lined up cash (not organic) hence why I say ‘on brand.’ This is what they do,” he stressed. Moreover, the analyst emphasized:
I got a second source to confirm Matt’s claim that they have big day one $ lined up.
According to Fox Business, Blackrock expects its spot bitcoin ETF to be approved by Wednesday, the deadline for the SEC’s decision on Cathie Wood’s Ark Invest and 21shares’ spot bitcoin ETF proposal. The securities regulator is expected to green-light multiple spot bitcoin ETFs simultaneously.
Do you think Blackrock has lined up more than billion for its spot bitcoin ETF within days of launch? Let us know in the comments section below.
SEC Could Approve Spot Bitcoin ETFs by Tuesday or Wednesday, Sources Say
The U.S. Securities and Exchange Commission (SEC) could make a decision regarding the approval of spot bitcoin exchange-traded funds (ETFs) on Tuesday or Wednesday, according to a report. Anticipation for the first-ever U.S. spot bitcoin ETFs intensified last week as prominent asset managers updated their filings with the SEC.
Green Light Imminent? SEC Could Make a Decision by Tuesday/Wednesday
Market participants are buzzing with anticipation as major asset management firms scramble to secure regulatory approval for the first-ever spot bitcoin exchange-traded funds (ETFs) in the U.S.
Applicants, including Blackrock, Vaneck, Valkyrie, Bitwise, Invesco, Fidelity, Wisdomtree, and the Ark Invest/21shares joint venture all submitted revised filings with the U.S. Securities and Exchange Commission (SEC) on Friday. The first deadline is Jan. 10 for the proposed spot bitcoin ETF by Ark Invest/21shares. Many people are expecting the securities regulator to approve multiple spot bitcoin ETFs by that date.
Citing people familiar with the filing process who spoke on background, Reuters reported last week:
The SEC may notify issuers as soon as Tuesday or Wednesday that they have been cleared to launch the following week.
Fee structures are also taking shape, with Valkyrie announcing a 0.80% management fee, echoing Ark/21shares’ proposed rate. Fidelity, however, aims to undercut the competition with a remarkably low 0.39% fee for its Wise Origin Bitcoin Fund. Invesco, meanwhile, offers a 0.59% fee with a six-month waiver for the first billion in assets.
Bitwise said in its filing on Friday that it plans to seed its spot bitcoin ETF with 0 million while Blackrock recently revealed a plan to seed its ETF with million on Jan. 3. The world’s largest asset manager has named JPMorgan as a lead authorized participant despite the negative stance consistently displayed by JPMorgan CEO Jamie Dimon.
Do you think the SEC will approve spot bitcoin ETFs ahead of the Jan. 10 deadline? Let us know in the comments section below.
Lightspark Open Sources Email-Like Protocol UMA; Raises Debate on Compliance
Lightspark, a Lightning Network (LN) financial services company, has announced it has open-sourced Universal Money Address (UMA), a protocol similar to email, but for money. The protocol will be interoperable, allowing platforms to exercise due compliance on the transactions facilitated, an inclusion criticized by the Bitcoin community on social media.
Lightspark Opens UMA Protocol
Lightspark, a Lightning Network (LN) service provider focused on institutions, has announced it is open-sourcing code of Universal Money Address (UMA), a protocol that resembles email but for money. According to Lightspark, UMA allows each user of a wallet, exchange, or bank to have a unique, human-readable address to receive and send money in the form of the currency of their choice.
Lightspark states UMA presents several benefits compared to other money-transmitting protocols: it is available 24/7, with interoperable addresses, and offers low fees for currency conversion and transactions due to its usage of LN in the background. Also, it’s open-source and can be implemented by different companies and wallet providers freely.
UMA allows institutions to exercise due compliance, with its official page advertising that it “enables companies to provide global, fast, and compliant transactions while leveraging existing infrastructure.”
The Compliance Issue
The mention of the “compliant transactions” issue gave origin to a debate in the community, with many criticizing the idea of introducing compliance at a protocol level. David Marcus, co-founder and CEO of Lightspark, stressed the necessity of compliance for the growth of LN.
Marcus, who has profiled LN as a global payments network before, railed against this faction that believes anything that includes the word compliance is “blasphemy.” He stated:
If we truly want Bitcoin and Lightning to become the winning global settlement network for value on the internet, it must enable regulated entities to participate with the network and meet their compliance obligations.
Many disagreed with Marcus’ vision, stressing that compliance was not compatible with the Bitcoin ethos of freedom. Matt Ahlborg, a market research consultant at Bitrefill, declared:
Compliance often means racism when you are required to block hundreds of millions of people based of the country they were born in. KYC/AML [Know Your Customer/Anti-Money Laundering] as it currently exists is un-american guilty until proven innocent system.
Marcus clarified that UMA was backward compatible with LN-URL and that any wallet implementing the protocol, even without complying with KYC/AML measures, could leverage UMA to make and receive transactions.
What do you think about UMA and its supposed benefits? Tell us in the comments section below.
US Government in Talks to Rescue Struggling First Republic Bank, Sources Say
Sources have revealed that U.S. government officials are in talks to rescue First Republic Bank, a struggling financial institution. The discussions involve the U.S. Treasury, the Federal Deposit Insurance Corporation (FDIC), and the Federal Reserve, according to reports on Friday.
Private-Sector Deal Preferred as U.S. Government Officials Discuss First Republic Bank Rescue Efforts
Market observers have been keeping a close eye on First Republic Bank since the collapse of three major banks in March. The bank disclosed earlier this month that it experienced 0 billion in withdrawals by customers in March, following the collapse of Silvergate Bank, Silicon Valley Bank, and Signature Bank. Additionally, 11 banks injected billion into First Republic Bank to strengthen its reserves.
On Friday, Reuters reported that the U.S. government is coordinating with the bank’s advisers to possibly save First Republic Bank, as talks led by the advisers have yet to reach a deal in the private-sector. This development comes after rumors emerged three days earlier that the bank would enter federal receivership. According to Reuters reporters Nupur Anand, Andrea Shalal, and Greg Roumeliotis, three sources familiar with the situation say:
U.S. officials are coordinating urgent talks to rescue First Republic Bank.
The Reuters report notes that two sources have revealed that executives from First Republic Bank are actively searching for a rescue deal, and U.S. officials are of the opinion that a private-sector agreement would be “preferable.” The collapse of First Republic Bank, the 14th largest bank in the U.S., could lead to further contagion in the banking sector. Moreover, the U.S. central bank is set to release a post-mortem on Silicon Valley Bank this afternoon.
“We are engaged in discussions with multiple parties about our strategic options while continuing to serve our clients,” First Republic said in a statement to Reuters.
What do you think the potential impact of a First Republic Bank collapse would be on the broader banking sector? Share your thoughts about this subject in the comments section below.
Space And Time Secures $20 Million To Transform Central Business Logic Databases Into Trustless Data Sources For Web3
Space and Time paves the way for establishing a decentralized data warehouse with tremendous Web3 implications. The project secured an additional million in funding to make smart contracts more robust.
A Big Step For Space and Time
The new million in strategic funding is a big deal for the Space and Time team. It signifies the importance of taking a decentralized approach to business logic. More importantly, the investors, including M12, SevenX Ventures, Polygon, Fellows Fund, Mysten Labs, MarketAcross and Stratos, see merit in the Proof of SQL cryptographic approach. Bridging the gap between enterprise database data and smart contracts can lead to many new potential use cases.
Under the hood, Space and Time combines on-chain and off-chain information in a trustless environment to enable enterprise-scale analytics at minimal cost and low latency. Additionally, mutable and immutable tables can be created, joined, and queried with cryptographic guarantees through the next-generation data platform.
Chainlink Co-Founder Sergey Nazarov adds:
“We’re proud to support Space and Time through the Startup with Chainlink program in their mission to build a decentralized data warehouse and bridge the on-chain and off-chain worlds with Chainlink oracles. With the total addressable market for trust-minimized applications in the trillions of dollars, providing core infrastructure to Web3 developers is crucial for scaling and meeting this global demand.”
Chainlink has been a crucial partner for Space and Time. Through future collaboration, Space and Time will extend the functionality of its hybrid smart contracts to drive the future trustless web or Web3. Moreover, developers can build multi-chain applications and access analytical insights in a decentralized and secure manner. Chainlink’s oracles are a crucial cog in that machine.
Coming To Azure Soon
The fundraising enables Space and Time to accelerate its engineering and product development. More importantly, the team wants to build familiar enterprise-grade solutions processing tremendous data volumes. That is an essential aspect in connecting smart contracts with enterprise database capabilities. Moreover, it will automate business logic in centralized systems.
Space and Time is coming to Microsoft’s Azure cloud platform shortly. That integration serves as an on-ramp for customers looking to access and analyze blockchain-native datasets.
Moreover, Azure provides the necessary tools and services to build and deploy Web3 applications, unlocking the decentralized web of the future. Partnering with Microsoft ensures future support and paves the way for broader Web3 use cases and mainstream adoption.
Sources: PayPal Is Looking to Acquire Crypto Companies, Namely BitGo
On Wednesday, PayPal shocked the crypto industry when it revealed that it would be directly supporting digital assets by adding the ability to purchase and sell Bitcoin, Ethereum, and other altcoins. The announcement also indicated that the firm would be supporting cryptocurrency payments between its merchants and the retail users it supports.
New reports indicate that PayPal’s interest in crypto stretches far beyond it acting as an exchange and payment processor, though.
Related Reading: Here’s Why Ethereum’s DeFi Market May Be Near A Bottom
PayPal Looks to Acquire Crypto Companies: Reports
Bloomberg reported just minutes ago that PayPal is looking to acquire crypto-asset companies, namely BitGo.
BitGo is one of this space’s biggest custodians, servicing the Wrapped Bitcoin project, along with funds and service providers. It has been invested in by Galaxy Digital, Goldman Sachs, Jump Capital, and other firms in and out of Wall Street.
The Bloomberg report cites “people familiar with the matter” of PayPal’s plans.
The firm acquiring BitGo would likely allow it to provide custodial services to its retail clients, along with potentially more institutional clients that are looking to dabble in digital assets.
The people said that PayPal may seek to acquire other companies if the BitGo talks fall through.
There is currently no knowledge of how much PayPal would spend if it were acquiring the company. But Bloomberg notes that in 2018, the company raised .5 million from a number of financiers at a 0 million valuation. Bitcoin has gained further adoption as an institutional asset since that time.
Related Reading: Tyler Winklevoss: A “Tsunami” of Capital Is Coming For Bitcoin
Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com Sources: PayPal Is Looking to Acquire Crypto Companies, Namely BitGo
China Crypto Crackdown? Sources Say Binance Shanghai Office Raided by Police
Malta-based cryptocurrency exchange Binance’s Shanghai office has abruptly closed its doors, several sources close to the matter told the Block.
According to the sources, the exchange’s Shanghai office was recently raided by local police where many of Binance’s executives and as many as 100 employees work.
Binance Refutes Claims
When reached for comment, a Binance spokesperson refuted the raid, saying that “we don’t have entities in China, most of us work remotely in China,” and that the exchange doesn’t have “a fixed office in Shanghai.”
Binance’s denial of the existence of a Chinese office comes despite The Block having seen photographs of the office as part of conversations with Binance representatives about the location in question.
Earlier this month rumors circulated that Binance was planning on opening an office not in Shanghai, but Beijing. These claims were dismissed by Founder and CEO “CZ” Zhao Changpeng in an interview.
Furthermore, in a tweet yesterday, Zhao said that office and headquarters are outdated concepts and “time is moving on.” As of press time, we’re still trying to put the pieces together and determine how, if at all, these instances are connected.
Update: Binance CFO Wei Zhou has said that this news is a nothing burger, writing on his private Twitter account that this is just a rumor that has no substance. Zhou added that no raid took place as there is no office.
Uncertainty in China
Last week, Binance was banned on China’s largest microblogging service — the Twitter-like Weibo — amid what appears to be fresh steps to crack down on digital currency trading.
A Binance spokeswoman said the account was shut down before Weibo issued the notice, and added that the social media platform didn’t give a reason. Binance is appealing the decision, she said.
At the same time, watchdogs in Shanghai issued notices calling for a cleanup of companies involved in cryptocurrency trading, while one in Beijing warned against illegal exchange operations.
This latest crackdown comes after President Xi Jinping urged the development of blockchain technologies last month, hailing it as one of the core technologies requiring China-led innovations.
While China is an avid supporter of blockchain — the central bank is working on its own digital currency — authorities have waged a two-year campaign to restrict crypto activities amid concerns like speculation, fraud, and capital flight.
In 2017, China ordered an end to exchange trading of digital currencies, but trades are still rampant through alternatives like over-the-counter (OTC) channels offered by exchanges Huobi and OKEx. Binance also recently started to host OTC yuan trading.
“We want to follow the recommendations very closely, and we want to promote the blockchain research and development,” Changpeng told Bloomberg last week about its China strategy.
“We just want to help where we can.”
Featured Image from Shutterstock
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