The Singaporean crypto exchange Bybit’s affiliate Spark Fintech Limited, has abandoned its pursuit of an operating license in Hong Kong. The affiliate withdrew its virtual asset trading platform application on May 31, exactly four months after submitting it. The decision followed the Hong Kong regulator’s classification of Bybit as an unlicensed entity, accompanied by threats […]
Bitcoin News
Australian Asset Management Firm Transfers Bitcoin ETF Application to Cboe Australia
Monochrome Asset Management, an Australian investment management firm, has transferred its bitcoin exchange-traded fund (ETF) application to Cboe Australia. This move aligns with Monochrome Asset Management’s objective of broadening its footprint in Asian markets. Monochrome’s Commitment to Investors Evident in Application Transfer Monochrome Asset Management, an investment management firm based in Australia, announced on April […]
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Grayscale Investments Submits Revised Application for Spot Ethereum ETF
Grayscale Investments’ Chief Legal Officer announced that the firm has submitted a revised Form 19b-4 for spot Ether exchange-traded funds. The officer, Craig Salm, stated that investors are seeking access to ethereum via a spot Ethereum ETF. Listing on the NYSE Grayscale Investments, a digital asset management firm, recently submitted an amended Form 19b-4 filing […]
Bitcoin News
Grayscale Submits Revised Application For Ethereum Spot ETF – What’s New?
Asset management firm Grayscale Investments has updated its application for an Ethereum spot ETF (exchange-traded fund) with the United States Securities and Exchange Commission (SEC).
Ethereum Spot ETF Case Just As Solid As Bitcoin’s, Grayscale Argues
According to a recent post on X by Craig Salm, Grayscale’s chief legal officer, the asset management firm has revised its 19b-4 form for an Ether spot ETF. Salm claimed that this move was “important” in an effort for Grayscale to list and trade shares of its Ether Trust on the New York Stock Exchange (NYSE) Arca.
The chief legal officer stated in his post that investors “want and deserve access” to Ethereum via a spot exchange-traded product, likening the situation to the Bitcoin ETF story. “We believe the case is just as strong as it was for spot Bitcoin ETFs,” Salm said.
The asset manager is amongst the numerous firms looking to issue the first Ethereum spot ETF in the United States, having filed an application with the SEC on October 10, 2023. However, these ETF applications have faced delays multiple times, with the most recent coming against BlackRock’s filing on March 4, 2024.
As a result, the likelihood of the SEC approving an Ethereum spot ETF has taken a nosedive in recent weeks. Once-optimistic Bloomberg ETF expert Balchunas even revealed in his latest analysis that the ETH funds now have only a 35% chance of approval.
SEC Chairman Faces Pressure Over Crypto Approval
Two US senators of the Democrat party, Sens. Laphonza Butler of California and Jack Reed of Rhode Island, have urged the SEC chairman to avoid approving crypto investment products. In a letter dated March 11, the lawmakers, who are also members of the Senate Banking Committee, asked the Commission to limit future crypto ETF applications.
The success of the BTC spot products clearly ruffling some feathers on the Hill. @SenatorJackReed and @Senlaphonza write to the @SECGov urging:-no further ETPs for other tokens-make life difficult (i.e. examinations/reviews) for brokers and advisers that recommend BTC ETPs pic.twitter.com/enxdumC02N
— Alexander Grieve (@AlexanderGrieve) March 14, 2024
Following the approval of 11 Bitcoin spot ETFs in January, the attention of the crypto public has somewhat turned to whether the SEC will do the same for the Ethereum versions. However, this latest letter from the senate seems to further hurt the chances of an ETH ETF approval.
A part of the letter read:
Retail investors would face enormous risks from ETPs referencing thinly traded cryptocurrencies or cryptocurrencies whose prices are especially susceptible to pump-and-dump or other fraudulent schemes,” they said. “The Commission is under no obligation to approve such products, and given the risk, it should not do so.
As of this writing, the price of the Ethereum token stands at ,731, reflecting a 1.2% increase in the past day.
Coinbase on Grayscale Ethereum Spot ETF Application: “ETH Is a Commodity, Not a Security”
Coinbase has answered the SEC request for comments on the proposed rule change to list the ETH Grayscale Fund as a spot ETF. Coinbase stated that ether was a commodity, and its status has been publicly recognized in a variety of circumstances by U.S. agencies and courts. Coinbase Supports Ethereum Grayscale Fund Conversion as a […]
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This Banking Giant Files For Bitcoin ETF Application In Hong Kong
Following the recent approval of spot Bitcoin ETF (Exchange-Traded Funds) in the US and guidelines from Hong Kong’s Securities and Futures Commission (SFC) published in December of 2023, there has been increasing speculation about the launch of a spot Bitcoin ETF in Hong Kong this year. In a recent development, the first spot Bitcoin ETF application has been filed to the SFC for approval.
Chinese Financial Giant Takes The Lead
Earlier this month, Venture Smart Financial Holdings Ltd. (VSFG) expressed its plans to apply for a spot Bitcoin ETF with the SFC to be launched this quarter. Similarly, asset management firms like Samsung Asset Management have shown their interest in exploring the possibility in the future.
A report from Tencent News revealed that Harvest Fund Management sent the first-ever spot Bitcoin ETF application in Hong Kong to the SFC on January 26, with the possibility of approval coming after the Lunar New Year at the earliest.
According to the news site, Hong Kong’s SFC wants to accelerate the approval of the first ETF after the US Securities and Exchange Commission (SEC) authorized the listing of the spot crypto products this month. The regulator’s plan includes listing the first ETF on the Hong Kong Stock Exchange after the Spring Festival.
Additionally, the report highlights the possibility of the SFC taking the same route as the US SEC and approving all applications simultaneously.
How Will Hong Kong’s Spot ETFs Compare To The US?
Regarding the performance of the investment products after the approval, a Hong Kong fund professional told Tencent News that “judging from the performance of the U.S. Bitcoin spot ETF, even if the Hong Kong Securities and Futures Commission approves multiple institutions at once, it may end up performing about the same as the U.S. market.”
However, some family office investor managers in Hong Kong suggested to the news site that “there may be some gap between the scale of Hong Kong spot ETF subscriptions and the United States.” The investor managers added that there’s real interest in subscribing to spot ETFs in Hong Kong, opposite to the “complexity of investment categories and operations” that stopped them from investing in the Bitcoin market before.
Moreover, the news sites reported that “compared with spot ETFs in the United States, in addition to accepting legal currency subscriptions, Hong Kong’s spot ETFs may also increase the possibility of direct Bitcoin subscriptions.”
Despite the interest and plans previously suggested by other investment and asset management firms, no organization has applied for a Spot Bitcoin ETF yet. Harvest Fund Management and the SFC haven’t issued further comment.
Grayscale Updates Spot Bitcoin ETF Application but Left out Some Key Information
Crypto asset management firm Grayscale Investments has updated its spot bitcoin ETF filing in hope of being included in the initial round of decisions by the U.S. Securities and Exchange Commission (SEC). However, the firm has omitted some key information that the SEC reportedly wants included in the filing, which several other asset managers have disclosed, including details relating to authorized participants.
Grayscale Files 3rd Amendment to Spot Bitcoin ETF Filing
Most asset managers seeking to launch a spot bitcoin exchange-traded fund (ETF) updated their applications with the U.S. Securities and Exchange Commission (SEC) on Friday, which was the deadline given by the regulator for amended filings. Grayscale filed the third amendment to its S-3 filing to convert its bitcoin trust (GBTC) into a spot bitcoin ETF on Friday.
Commenting on Grayscale’s amended filing, Bloomberg ETF analyst Eric Balchunas shared on social media platform X Tuesday:
New Grayscale amendment just dropped. Clear language on cash only but still no AP [authorized participant] named, just blanks where name should go. Not sure why since SEC wants to see it and they have been pretty cocksure about having one.
The analyst further pointed out that there was nothing about the fee in Grayscale’s amended filing that he could see. The firm’s authorized participant agreement is found in Exhibit 4.5 of the filing.
The SEC reportedly required spot bitcoin ETF applicants to submit updated filings by last Friday to be considered in the initial round of decisions. The first deadline is Jan. 10 for Ark Invest and 21shares’ joint filing. However, some expect the SEC to make a decision before that date.
While Grayscale did not name any authorized participants, CEO Michael Sonnenshein insisted that his company has lined up some authorized participants a long time ago. In an X post on Dec. 29, he wrote: “Been in this game a long time … we’ve had APs lined up since 2017.” He referenced a news article published in June 2022 stating that Grayscale would work with Jane Street and Virtu Financial as authorized participants should the SEC approve GBTC’s conversion into a spot bitcoin ETF.
Meanwhile, several other spot bitcoin ETF applicants have named their authorized participants in their filings, including Blackrock, the world’s largest asset manager, which named Jane Street and JPMorgan. Wisdomtree, Fidelity, and Valkyrie also named Jane Street while Invesco/Galaxy named Virtu and JPMorgan.
After initially rejecting Grayscale’s spot bitcoin ETF proposal, the SEC faces a court order to reevaluate it. Grayscale and several other spot bitcoin ETF applicants want to use the in-kind creation model for their spot bitcoin ETFs but the SEC is adamant about using the cash creation method. Grayscale then adopted the cash method in its second amendment. The company also recently announced the resignation of Barry Silbert from its board of directors.
Do you think Grayscale will be among the first companies to be approved for spot bitcoin ETFs by the SEC? Let us know in the comments section below.
Blackrock Meets With SEC 4 Times to Discuss Spot Bitcoin ETF Application
Blackrock, the world’s largest asset manager, has met with the U.S. Securities and Exchange Commission (SEC) for the fourth time recently to discuss its spot bitcoin exchange-traded fund (ETF) application. SEC Chairman Gary Gensler said this week that the securities regulator is “taking a new look” at spot bitcoin ETF filings.
Blackrock Holds Another Meeting With SEC
The expectation of the U.S. Securities and Exchange Commission (SEC) approving spot bitcoin exchange-traded funds (ETFs) has intensified this week as several spot bitcoin ETF issuers engage in discussions with the securities regulator regarding their applications. Notably, Blackrock, the world’s largest asset manager, has held its fourth recent meeting with the SEC concerning its spot bitcoin ETF proposal.
According to a meeting memorandum dated Dec. 14, filed with the SEC, staff from the Office of the Chair met with three individuals from Blackrock. The memorandum details: “The discussion concerned the Nasdaq Stock Market LLC’s proposed rule change to list and trade shares of the Ishares Bitcoin Trust under the Nasdaq Rule 5711(d).” Once approved, Blackrock’s spot bitcoin ETF will trade under ticker IBTC.
Bloomberg’s senior ETF analyst Eric Balchunas commented on X Friday:
Gensler’s staff met with Blackrock yesterday to talk IBTC but it wasn’t normal crew, more public policy folks including Blackrock’s Public Policy Director Ben Tecmire who by the way used to be senior counsel at the SEC’s Division of Investment Management.
Another Bloomberg analyst, James Seyffart, pointed out on X that Blackrock is not the only company meeting with the SEC’s Office of the Chair, noting that Hashdex, another company seeking approval to launch a spot bitcoin ETF, did the same in November. Before the latest meeting, Blackrock met with the SEC on Nov. 20, Nov. 28, and Dec. 11 regarding its spot bitcoin ETF filing.
The SEC staff also recently held meetings with several other companies that have filed to launch spot bitcoin ETFs, including Fidelity, Franklin Templeton, and Grayscale Investments.
Among the topics spot bitcoin ETF applicants discussed with the SEC is the use of cash creation method versus in-kind creation method for their spot bitcoin ETFs. The securities regulator is reportedly in favor of the cash creation method. However, Blackrock, Fidelity, and a few others have expressed their preference for using the in-kind method. Blackrock even proposed a revised in-kind method to resolve the SEC’s concerns.
SEC Chairman Gary Gensler said this week that the securities watchdog is “taking a new look” at spot bitcoin ETF filings following court rulings from the Grayscale case. Gensler emphasized that the SEC acts according to its authorities and how the courts interpret them. There are currently 13 spot bitcoin ETF applications pending at the SEC. Bloomberg’s analysts have predicted a 90% chance of the securities regulator approving a spot bitcoin ETF by Jan. 10.
What do you think about Blacktock meeting with the SEC four times recently regarding its spot bitcoin ETF application? Do you think Blackrock will be among the first filers to be approved by the SEC? Let us know in the comments section below.
Financial Giant Fidelity Discusses Spot Bitcoin ETF Application With SEC
Financial services giant Fidelity recently met with the U.S. Securities and Exchange Commission (SEC) regarding its spot bitcoin exchange-traded fund (ETF) application. Like Blackrock, the world’s largest asset manager, Fidelity appears to be pushing to use the in-kind creation model for its spot bitcoin ETF.
Fidelity’s Meeting With SEC
Officers from financial services giant Fidelity met with staff from the U.S. Securities and Exchange Commission’s Division of Trading and Markets and the Division of Corporation Finance on Thursday to discuss the firm’s application for Wise Origin Bitcoin Trust, a spot bitcoin ETF, according to a memorandum posted on the SEC website. The memorandum states:
The discussion concerned Cboe BZX’s proposed rule change to list and trade shares of the Wise Origin Bitcoin Trust under Cboe BZX Rule 14.11(e)(4).
Based on the presentation attached to the memorandum submitted to the SEC by Fidelity during the meeting, the two parties discussed using the in-kind creation model for Fidelity’s spot bitcoin ETF. The presentation shows the process for the “in-kind crate” flow as well as the “in-kind redeem” flow.
The SEC also recently met with several exchanges and other spot bitcoin ETF applicants regarding their applications. Following these discussions, several applicants, including Blackrock, revised their filings. Notably, Blackrock advocates for the “in-kind create model” and even proposed a modified version to address potential SEC concerns.
Investors are eagerly awaiting the SEC’s decision on spot bitcoin ETFs, with Vaneck predicting initial approvals as early as the first quarter of next year. This could trigger a significant inflow of over .4 billion into these investment products within the same timeframe, the asset manager stated.
A director with Moody’s Analytics recently shared his expectation that large asset managers are getting ready to buy bitcoin ahead of spot bitcoin ETF launches. Financial advisors are also reportedly waiting for these products to launch so that they can offer them to their clients. Skybridge Capital founder Anthony Scaramucci foresees massive capital inflow from Wall Street into spot bitcoin ETFs. Galaxy Digital CEO Mike Novogratz said the price of bitcoin will be “significantly higher” after the SEC approves spot bitcoin ETFs.
What do you think about Fidelity meeting with the SEC on its spot bitcoin ETF application? Do you think the SEC is close to approving spot bitcoin ETFs? Let us know in the comments section below.
Crypto Exchange Binance Drops Abu Dhabi License Application as Global Needs Shift
Crypto exchange Binance has withdrawn its application for a license in Abu Dhabi. “When assessing our global licensing needs, we decided this application was not necessary,” a Binance spokesperson stated, adding that the company plans to continue to work with regulators “to provide world-class services and offerings in the Middle East and beyond.”
Binance Says ‘This Application Was Not Necessary’
Cryptocurrency exchange Binance has reportedly withdrawn its application with Abu Dhabi’s financial regulator. A spokesperson for Binance said on Thursday:
When assessing our global licensing needs, we decided this application was not necessary.
According to Binance’s website, Abu Dhabi-based Binance (AD) Ltd. received conditional financial services permission from the Financial Services Regulatory Authority (FSRA) on Nov. 15 last year to provide crypto custody services. The regulator’s website details: “Binance (AD) Limited is not permitted to deal with retail clients, as defined in the FSRA’s Conduct of Business Rulebook (COBS).” The crypto exchange noted that meeting the conditions required by the regulator will allow Binance (AD) to commence providing custody services to professional clients. The FSRA oversees all financial activities within the Abu Dhabi Global Market (ADGM) international financial center.
Last month, Binance founder Changpeng Zhao (CZ) resigned as CEO after pleading guilty to violating U.S. anti-money laundering laws, and the crypto exchange agreed to pay over .3 billion as part of the settlement with U.S. authorities. The Binance spokesperson claimed that the decision to withdraw the Abu Dhabi license application was “unrelated” to the U.S. settlement. Zhao is a citizen of the UAE.
This year, Binance withdrew from a licensing process in Germany, retracted from Cyprus, and announced its exit from the Netherlands. The decision to withdraw from Cyprus was explained as a strategic move to concentrate on fewer regulated entities in the EU, with a focus on France, Italy, and Spain, in anticipation of the European Union’s crypto asset regulations rollout. The crypto firm has also been ordered by financial regulators to cease operations in Belgium.
Moreover, Binance canceled the regulatory authorization it received in the U.K. and announced the intention to divest its business in Russia. Additionally, regulators in Australia revoked the financial services license of Binance’s derivatives business. In the Philippines, the securities regulator initiated the process of blocking Binance last week.
The Binance spokesperson emphasized on Thursday that the crypto exchange would continue to work with regulators “to provide world-class services and offerings in the Middle East and beyond.”
What do you think about Binance withdrawing its application for a license in Abu Dhabi? Let us know in the comments section below.