Vaneck, a global investment firm, has announced the launch of the Vaneck Bitcoin ETF (VBTC), the first Bitcoin exchange-traded-fund on the Australian Securities Exchange (ASX). Set to commence trading on June 20, 2024, the ETF is touted as the most cost-effective Bitcoin fund exposure in Australia. Arian Neiron, Vaneck’s CEO for the Asia-Pacific region, emphasized […]
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ETF Analyst Offers Sober Outlook on Newly Approved Hong Kong Bitcoin ETFs; Challenges $25B Inflow Estimate
Following Hong Kong’s authorization of the region’s first spot bitcoin and ethereum exchange-traded funds (ETFs), Bloomberg’s senior ETF analyst Eric Balchunas shared his insights on social media about the new additions. Although there were anticipations of notable capital inflows into the Hong Kong ETFs, Balchunas mentioned that while it’s a positive step forward, he emphasized […]
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Breaking: Spot Bitcoin And Ethereum ETFs Approved In Hong Kong
The Hong Kong Securities and Futures Commission (SFC) has officially approved several spot Bitcoin and Ethereum exchange-traded funds (ETFs), a decision that marks a significant development in the region’s burgeoning crypto market. These approvals were granted to prominent asset managers including China Asset Management, Bosera Capital, and HashKey Capital Limited, alongside an in-principle approval for Harvest Global Investments.
Hong Kong’s SFC Approves Bitcoin And ETH ETFs
China Asset Management’s Hong Kong unit, as detailed in their press release, has received SFC approval to launch spot Bitcoin and Ethereum ETFs. This initiative is part of a collaboration with OSL Digital Securities Limited and BOCI International, aiming to provide retail asset management services with direct cryptocurrency subscriptions.
Similarly, Bosera Asset Management and HashKey Capital have announced that they have received conditional approval from the SFC for their own spot crypto ETFs. These products, named the Bosera HashKey Bitcoin ETF and the Bosera HashKey Ether ETF, will allow investors to directly use Bitcoin and Ethereum to subscribe for ETF shares, as stated in their press release.
Harvest Global Investments has also been spotlighted with the SFC’s in-principle nod for two major digital asset spot ETFs. According to their press release, Mr. Tongli Han, CEO and CIO of Harvest Global Investments, remarked, “This in-principle approval for Harvest Global Investments’ products in two major digital asset spot ETFs not only underscores Hong Kong’s competitive edge in the digital asset space, but also demonstrates our unrelenting pursuit of promoting innovation in the industry and meeting diversified investor needs.”
These ETFs are set to be launched through a partnership with OSL Digital Securities, the first digital asset platform licensed and insured by the SFC, highlighting a significant stride in addressing common market challenges such as excessive margin requirements and price premiums.
The press release from Bosera and HashKey highlights that the introduction of these virtual asset spot ETFs will not only provide new asset allocation opportunities but also reinforce Hong Kong’s status as an international financial center and a hub for virtual assets. This move is aligned with the city’s strategic push to establish itself as a regional leader in financial innovation, particularly in the digital asset sector.
The approvals are indicative of Hong Kong’s progressive regulatory framework which aims to integrate digital assets within its financial ecosystem safely and securely. The establishment of these ETFs is expected to provide a regulated, innovative investment avenue for both retail and institutional investors in the region. While there is not as much hype as there is around US ETFs, some analysts believe the impact could be similar.
These approvals come on the heels of rumors last Friday about the potential approval of these ETFs. The market had been abuzz with speculations, and today’s confirmation has provided the Bitcoin and ETH prices with a much needed boost. BTC is up 2.2% since the announcement, surpassing the ,000 mark. The approved ETFs are reportedly set to launch by the end of April.
At press time, BTC traded at ,535.
JP Morgan Reveals Likelihood Of Spot Ethereum ETFs Getting Approved
Now that Spot Bitcoin ETFs have been approved by the United States Securities and Exchange Commission (SEC), the crypto space anticipates more ETFs to enter the market, particularly Spot Ethereum ETFs.
Despite this, analysts at JP Morgan, an American multinational financial service firm, have revealed a less than optimistic outlook for the potential approval of Ethereum Spot ETFs.
Ethereum Spot ETF Approval Prospects
In a note to clients issued on Thursday, January 18, JP Morgan analysts led by Nikolaos Panigirtzoglou, the Managing Director at the financial service firm, expressed their reservations regarding the anticipated approval of Spot Ethereum ETFs by the SEC.
The analysts cited regulatory and judicial reasons as the basis for their prediction, asserting that the likelihood of Ethereum Spot ETF approval is no higher than 50%.
“While we are sympathetic to the above arguments, we are skeptical that the SEC will classify ether as a commodity as soon as May,” analysts at JP Morgan stated.
Just last week, the SEC delayed the approval of Fidelity’s Ethereum Spot ETF. The regulator postponed its decision date to March 5, 2024, stating it needed more time to evaluate Fidelity’s application. Additionally, the deadline for the SEC’s final decision on the Spot Ethereum ETF applications extends from late January to August 2024.
The most decisive date that would give the crypto space a better outlook on the potential launch of these ETFs is January 25, the deadline for Grayscale’s Ethereum Spot ETF application.
Earlier in June 2022, Grayscale took legal action against the SEC for its rejection of its Spot Bitcoin ETF. In August 2023, the asset management company emerged victorious in its lawsuit, after the US Columbia Court of Appeal ruled that the SEC was wrong to reject Grayscale’s Bitcoin ETF application.
With the SEC’s recent approval of Spot Bitcoin ETF after months of legal and regulatory challenges, many crypto enthusiasts anticipate a lengthy regulatory process before the potential approval of Spot Ethereum ETFs. If Ethereum Spot ETFs are accepted by the SEC, then it would offer investors an unprecedented opportunity to gain exposure to the cryptocurrency without the need to own it.
Why ETH Spot ETF Approval Hovers At 50%
Presently, the regulatory framework surrounding cryptocurrencies in the United States is still shrouded in uncertainty. This includes XRP, which suffered a lawsuit from the SEC after the regulator labeled it a security in 2020. Additionally, there have been many other cryptocurrencies the SEC has identified as a security.
The potential approval of Ethereum Spot ETFs generally hinges on the SEC’s classification of the digital asset, whether it is a commodity or a security. In January 2024, the regulatory agency approved Ethereum futures ETFs, ‘implicitly’ accepting Ethereum as a commodity.
If the SEC identifies Ethereum as a commodity, then the potential approval of an ETF application may be in sight. However, as JP Morgan analysts have stated, it may take a considerable amount of time before the SEC makes that decision.
The regulatory agency has continually taken an aggressive approach in its regulation of cryptocurrencies in the US. Following the approval of Spot Bitcoin ETFs, SEC Chairman Gary Gensler publicly declared that the agency still does not approve or endorse Bitcoin, labeling all cryptocurrencies as investment contracts subject to federal securities laws.
Bitcoin Spot ETFs Approved After 14 Years- The Journey So Far
The year 2024 marks the dawn of a new era, not just for technology but for finance, as a major victory was achieved for Bitcoin Spot ETFs (Exchang-Traded Funds). It’s now the era where the past will be appreciated for its foresight and doggedness.
When the pioneer cryptocurrency and digital currency, Bitcoin launched in January 2009, it was nothing like a real-world asset or of an ‘agreed’ digital value, but an almost neglected bag of gold as it faced enough rejection from all phases. Even with Satoshi’s Whitepaper, Bitcoin wasn’t given a cordial welcome in the world of finance.
However, for all its promise, BTC remained shrouded in an air of mystery and skepticism. It took several years for Bitcoin to cement its value in the world of technology, finance, and the digital economy, assuming a giant role amidst many other cryptocurrencies.
However, On January 10, 2024, the SEC, in its official filing, approves all 11 Bitcoin Spot ETFs. This long-awaited green light from the US SEC marked a watershed moment, not just for Bitcoin, but for the entire cryptocurrency industry.
The 14-year journey to this point was arduous and paved with skepticism; regulatory hurdles loomed large, with the SEC citing concerns about market manipulation and investor protection as justification for repeated rejections. Attempts like Bitcoin futures ETFs offered limited exposure, failing to capture the true essence of a spot ETF’s direct price tracking.
Bitcoin Spot ETF Explained
The recent approval of Bitcoin spot ETFs has stirred excitement across the financial landscape. But what exactly are these instruments, and what impact will they have on the future of BTC and, more broadly, on the investment landscape?
Bitcoin “Spot” ETFs (exchange-traded funds), unlike their futures-based counterparts, don’t track the price of Bitcoin futures contracts. Instead, they take a more direct approach, holding the underlying asset – Bitcoin itself – in secure digital custodians.
This eliminates the potential for “basis risk,” a phenomenon where futures prices deviate from the actual cash price of Bitcoin. Simply put, Spot ETFs offer a more straightforward and transparent way to gain exposure to BTC’s price movements, akin to traditional gold-backed ETFs.
Bitcoin Spot ETFs function similarly to their traditional counterparts, such as those tracking stock market indices. They pool investor capital, purchasing Bitcoin and holding it securely. Each share of the ETF represents a fractional ownership of the pooled Bitcoin, allowing investors to participate in the market without directly holding or managing the cryptocurrency themselves. This eliminates technical complexities and potential security risks, particularly for those with limited crypto experience, potentially broadening the base of Bitcoin investors.
The Genesis Of Bitcoin ETFs (Early Days and Conceptualization – 2013-2017)
The earliest sparks of a Bitcoin ETF concept date back to 2013, when the Winklevoss twins first proposed their Gemini ETF. Winklevoss twins, Cameron and Tyler, both tech entrepreneurs with a vision in 2013, submitted the first application for a Bitcoin ETF, the Gemini ETF, sparking the decade-long journey to regulatory approval.
This audacious proposal was outrightly rejected by the SEC during the tenure of its former chairman, Jay Clayton, who later resigned in 2020 and became a supporter of cryptocurrency. Interestingly, Clayton is now actively involved in crypto regulations when he joined the advisory board of Fireblocks, a crypto custody platform.
The following years were a crucible of innovation and uncertainty. While Bitcoin’s market capitalization surged, attracting both fervent supporters and cautious observers, the SEC remained hesitant. The regulator’s concerns about market manipulation, price volatility, and the nascent state of blockchain technology were cited as justifications for repeated rejections of subsequent ETF proposals, including Grayscale’s attempt to convert its Bitcoin Investment Trust into a spot ETF.
Yet, amidst the rejections, there were flickers of progress. Technological advancements improved blockchain security and custody solutions, addressing initial concerns about vulnerability and potential wash trading. The global adoption of Bitcoin, particularly in Canada with its approval of Spot ETFs in 2021, served as a compelling case study for increased accessibility and market stability.
This period also saw the SEC’s stance slowly evolve. The appointment of Gary Gensler as SEC Chair in 2021 brought a newfound openness to dialogue and exploration of potential regulatory frameworks for cryptocurrencies. The approval of the first US-listed futures-based bitcoin ETF in October 2021, despite its limitations, offered a glimpse of what could be.
The Turning Point: A Decade Of Persistence Pays Off (2018-2023)
While the 2017-2018 crypto boom and subsequent crash sent shockwaves through the industry, it also served as a crucible, forging resilience and fueling a renewed focus on compliance and innovation. Industry figures like Grayscale, undeterred by previous rejections, continued to refine their proposals, incorporating crucial safeguards and addressing regulatory concerns.
This relentless pursuit of approval finally yielded results in 2023. In May, Cathie Wood’s ARK Investments filed for a spot bitcoin ETF, setting a definitive deadline for the SEC’s decision.
Then, in June, BlackRock’s entry into the arena with its own Spot Bitcoin ETF application sent ripples of excitement through the financial world. This move by a traditional financial giant signalled a crucial shift in sentiment, demonstrating growing institutional confidence in BTC’s potential.
The months that followed were a whirlwind of activity. A flurry of applications from firms like Fidelity and Invesco poured in, fueled by the momentum of BlackRock’s move and the prospect of imminent approval. In August, a pivotal legal victory for Grayscale in the D.C. Circuit Court further strengthened the case for spot ETFs, forcing the SEC to re-examine its previous rejections.
Finally, the SEC, in a historic decision, greenlighted 11 spot bitcoin ETF proposals, including those from BlackRock, Fidelity, and VanEck. This moment marked the culmination of a decade-long struggle, signifying the mainstream acceptance of investor participation in the cryptocurrency space.
Ripples Across The Crypto Landscape: Implications Of Bitcoin Spot ETFs (2024)
The arrival of spot ETFs has cast a wide net, sending ripples across various spheres of the financial world. There are a lot of potentials and challenges presented by spot ETFs, vital impact on market stability, institutional adoption, and regulatory oversight. There are positive predictions that the Bitcoin market cap could rise above Trillion after the launch of Bitcoin Spot ETFs.
Let’s contemplate the broader significance of this pivotal moment, what it means for the future of finance, and its relationship between technology and traditional financial systems here.
Investor Crossroads
For retail investors, Spot ETFs offer a convenient and familiar way to participate in the Bitcoin market without directly holding the cryptocurrency. This opens the door to broader adoption and increased liquidity, potentially leading to smoother price discovery and reduced volatility. The influential American magazine, Forbes predicted the BTC price will trade as high as ,000 as a result of Bitcoin Spot ETFs’ approval.
The year 2024 is also shaping up to be a good one, if not one of the best seasons for cryptocurrency, especially Bitcoin, as it’s the season for Bitcoin halving, which will have another mega impact on the crypto industry.
However, the inherent risks of Bitcoin, including price fluctuations and potential exposure to fraud, must not be underplayed. Investors should approach spot ETFs with cautious optimism, ensuring a proper understanding of the technology, market dynamics, and associated risks before venturing in.
Institutional Embrace Bitcoin
The arrival of spot ETFs marks a significant step towards institutional acceptance of Bitcoin. The involvement of established financial institutions like BlackRock and Fidelity lends credibility to the cryptocurrency and paves the way for further integration with traditional financial products and services.
Concerns remain about the impact of institutional involvement on market manipulation and potential conflicts of interest. However, regulatory oversight and robust compliance frameworks will be crucial in ensuring a fair and transparent market for all participants.
Market Redefined
Spot ETFs could potentially lead to greater market stability by introducing institutional investors and their risk management expertise. This could mitigate some of the inherent volatility of the cryptocurrency market, attracting a wider range of investors and fostering sustainable growth.
The SEC’s approval represents a cautious acceptance, not a blank check. Further regulatory clarity and potential adaptation of existing frameworks might be required to effectively address the unique challenges posed by the integration of cryptocurrencies into mainstream financial systems.
Beyond Bitcoin
Spot ETFs could act as a gateway for investors to explore the broader crypto landscape. Their familiarity and ease of access might encourage exploration of other promising blockchain-based projects, accelerating the overall growth and development of the cryptocurrency ecosystem.
The success of spot ETFs will hinge on the continued evolution of blockchain technology and associated infrastructure. Scalability, security, and user experience will remain key areas of focus for ensuring the smooth functioning and widespread adoption of crypto-based financial products.
The 11 Spot Bitcoin ETFs products (with their ticker symbols) approved on January 10, 2024, are:
- Blackrock’s iShares Bitcoin Trust (IBIT)
- ARK 21Shares Bitcoin ETF (ARKB)
- WisdomTree Bitcoin Fund (BTCW)
- Invesco Galaxy Bitcoin ETF (BTCO)
- Bitwise Bitcoin ETF (BITB)
- VanEck Bitcoin Trust (HODL)
- Franklin Bitcoin ETF (EZBC)
- Fidelity Wise Origin Bitcoin Trust (FBTC)
- Valkyrie Bitcoin Fund (BRRR)
- Grayscale Bitcoin Trust (GBTC)
- Hashdex Bitcoin ETF (DEFI)
Conclusion
The approval of Bitcoin spot ETFs is a watershed moment, not just for the cryptocurrency itself, but for the entire financial landscape. It marks a new chapter in the saga of Bitcoin, one where its disruptive potential can be harnessed within the framework of established financial systems.
Also, this path forward is paved with both opportunities and challenges. Navigating regulations and addressing investor risk concerns are important to ensure seamless integration with traditional financial systems and regulatory bodies, which will be crucial in determining the ultimate success of this technological leap.
Final Thoughts
The approval of Bitcoin spot ETFs is not merely a regulatory green light; it’s a resounding declaration of Bitcoin’s arrival on the main stage of finance.
Related Reading: Celestia Network: How To Stake TIA And Position For 5-Figure Airdrops
However, the journey is far from over. This approval is a milestone, not a destination. As we stand at this turning point, it’s important to remember the spirit of defiance that birthed BTC. It was born from a desire for autonomy, for freedom from centralised control, and for a more equitable financial system.
While ETFs offer a bridge between this decentralized world and the established financial order, it’s crucial not to lose sight of these core principles.
Bitcoin ETF: SEC May Notify Approved Issuers To Launch Very Soon – Here’s When
According to a recent report from Reuters, the US Securities and Exchange Commission (SEC) may notify the asset managers looking to launch a spot Bitcoin ETF (exchange-traded fund) if their applications have been approved as soon as next week.
SEC To Notify Applicants Of Its Decision By Next Week: Reuters
On Saturday, December 30, Reuters reported that the SEC may notify the 14 Bitcoin ETF applicants if their applications will be approved by Tuesday or Wednesday next week. This move would come ahead of the January 10 deadline for the agency to decide whether or not to green-light the ETF application by Ark Invest and 21Shares.
Citing people familiar with the process, Reuters highlighted that asset managers that met their end-of-the-year filing revision deadlines may be able to launch by January 10, 2024. Some of the firms that recently updated their Bitcoin ETF filings with the SEC include Black Rock, Van Eck, Bitwise, WisdomTree, Invesco, Valkyrie, and Fidelity.
Notably, Fidelity Investments revealed more information and technical details about its potential ETF product in its S-1 form update. The asset management firm hopes to beat fellow applicants in winning investors over by proposing the lowest sponsor fee at 0.39%.
Invesco announced a 0.59% rate while offering a fee waiver on the first billion in assets within the first six months after launch. Meanwhile, BlackRock, the world’s largest asset manager and a frontrunner in the Bitcoin ETF race, unveiled Jane Street Capital and JP Morgan Securities as its authorized participants in its updated application.
From the latest development, it seems the SEC is looking to wrap up the Bitcoin ETF chapter as soon as the new year arrives. Nonetheless, Reuters’ latest report adds optimism to the possibility of the agency approving several ETF applications by January 10.
How Bitcoin ETF Approval Could Impact Price
There have been wide speculations on the possible effects of the ETF approval on the Bitcoin asset. Options platform Greeks.live has offered insight into the potential impact of the exchange-traded fund on the value of the premier cryptocurrency.
There is news in the market that the SEC will pass the Bitcoin Spot ETF application as early as next Tuesday, but there was little volatility across the major term IVs and the price.Looking at the options data, Jan12 options IV, which is strongly correlated to the ETF, fell… pic.twitter.com/f1B4ZPC05d
— Greeks.live (@GreeksLive) December 31, 2023
Using options data, Greeks.live believes that the market has priced the potential approval of the Bitcoin ETF, and it may not yield greater returns for the asset. This means that the market has already factored in this information, and any positive development might not lead to significant price movement.
According to the platform, this reasoning is based on the little volatility observed across the major term implied volatilities (IVs) and the price of Bitcoin. For context, implied volatility reflects the market’s expectation of how much an asset will move in the future.
However, options IV on January 12, which is believed to be strongly correlated to the Bitcoin ETF, decreased rather than increased. This lack of volatility and decrease in implied volatility of options suggests that there may not be a substantial impact on the Bitcoin price, even with significant news on the horizon.
As of this writing, Bitcoin is valued at ,154, reflecting a mere 0.4% in the past day. The price of BTC has increased by more than 150% this year, partly due to the anticipation of a Bitcoin spot ETF.
US Lawmaker Spotlights Crypto Bills Approved by House Committee This Year
U.S. Congressman Tom Emmer has highlighted various crypto bills that passed out of the House Committee on Financial Services this year. Among them is his appropriations amendment barring the U.S. Securities and Exchange Commission (SEC) “from using taxpayer dollars on its abusive crypto enforcement tirade until Congress passes legislation giving the SEC jurisdiction over this industry.”
Crypto Bills Greenlighted by House Financial Services Committee in 2023
U.S. Congressman Tom Emmer (R-MN) summarized the House Financial Services Committee’s achievements in 2023 on social media platform X last week. He emphasized that the committee “has moved more legislation in 2023 to boost our capital markets, welcome innovation, and hold unchecked regulators accountable than in previous years.”
The lawmaker proceeded to highlight various bills related to crypto legislation that were greenlighted by the committee during the year. “In July, we passed the Blockchain Regulatory Certainty Act out of Committee to streamline one of the largest barriers to entry in the digital asset space: money transmission regulation,” the congressman described.
Moreover, he noted that “key language” from his Securities Clarity Act was included in the Financial Innovation and Technology (FIT) for the 21st Century Act, which passed out of Committee in July, emphasizing:
This legislation lays the foundation for the Ripple decision, clarifying that a token isn’t automatically a securities contract.
“My bipartisan bill, the Securities Clarity Act, carves this concept in stone to provide the regulatory confidence needed to make sure the next iteration of the internet is designed with American values,” the lawmaker added.
In addition, his CBDC Anti-Surveillance State Act passed out of the committee in September. Rep. Emmer opined:
This is a historic step in defense against the ever-expanding government surveillance apparatus. The bill is cosponsored by 75 members of Congress.
“If not open, permissionless, and private – like cash – a CBDC [central bank digital currency] is nothing more than a CCP-style surveillance tool that can be weaponized to oppress the American way of life,” he previously explained. “We’re not going to let that happen – not on House Republicans’ watch.”
Moreover, Congressman Emmer shared: “Without opposition, in November the House passed my appropriations amendment barring the SEC from using taxpayer dollars on its abusive crypto enforcement tirade until Congress passes legislation giving the SEC jurisdiction over this industry.” The lawmaker opined:
Gary Gensler is as ineffective as he is incompetent … Congress will hold unelected bureaucrats accountable.
The congressman concluded: “This is just the beginning. In 2024, the second half of the 118th Congress, I look forward to moving these measures through the House.”
What do you think about the crypto bills approved by the House Financial Services Committee? Let us know in the comments section below.
Gold-Backed Digital Tokens Now an Approved Payment Method Says Zimbabwean Central Bank
Zimbabwean residents and institutions can now pay or settle domestic transactions using the recently launched gold-backed digital tokens, the central bank has said. Bank governor John Mangudya said the central bank has enlisted the services of external auditors to “validate the availability and adequacy of gold to ZIG at any given time.”
Preserving Value With Gold-Backed Tokens
The Zimbabwean gold-backed digital tokens are now an approved method of paying or settling domestic transactions, the head of the country’s central bank has said. In a statement issued on Oct. 5, John Mangudya, the governor of the Reserve Bank of Zimbabwe (RBZ), added that the digital tokens will also continue to act as a value preservation instrument.
Introduction of the Zimbabwe Gold-Backed Digital Token (Zig) as a Means of Payment pic.twitter.com/o1CL5dsbaQ
— Reserve Bank of Zimbabwe (@ReserveBankZIM) October 5, 2023
As reported by Bitcoin.com News over the past few months, the RBZ has been working on the supporting infrastructure. Initially, the central bank said the tokens, which are now known as ZIG tokens, would be useful in insulating holders against inflation and currency depreciation.
Buying Digital Tokens With Local Currency
Meanwhile, prior to launching gold-backed digital tokens, the RBZ had already launched physical coins to serve the same purpose. Commenting on how the value of the ZIG tokens is determined, the RBZ boss said:
The value of ZIG will be at par with the value of the physical Mosi-au-Tunya gold coin and will remain informed by the international gold price. Banks will maintain dedicated ZIG accounts and intermediate transactions in ZIG in the same way they intermediate in local and foreign currency.
The Zimbabwean central bank added the applicable money transfer tax will only be half the rate usually applied for foreign currency-denominated transactions.
According to a report in the Herald, ZIG tokens are issued in units of one milligram of gold worth just over 6.1 cents. The report added that both individuals and institutions will be able to purchase the tokens using local and foreign currency.
In what is seen as an attempt to assuage skeptics, Mangudya said the RBZ has enlisted the services of external auditors to “validate the availability and adequacy of gold to ZIG at any given time.” However, the central bank’s statement does not reveal the names of the auditors.
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Market Analysts Outline When The First Spot Bitcoin ETF Will Be Approved
In a recent development, analysts at asset management firm Bernstein have predicted when the US Securities and Exchange Commission (SEC) will likely approve the first Spot Bitcoin ETF.
When Will The First Spot Bitcoin ETF Be Approved?
According to the analysts, the pending Spot Bitcoin ETF applications could be approved early next year. They made this projection in line with the recent court ruling in the Grayscale case, which they believe could force the SEC’s hands.
The court had ruled in favor of Grayscale in a case in which the asset manager argued that the Commission had acted arbitrarily and capriciously by not giving its Spot Bitcoin ETF application the same regulatory treatment it did to Bitcoin futures ETFs. As part of its ruling, the court ordered the Commission to review the application again.
Many saw this as a major win and proof that a Spot Bitcoin ETF was imminent, with Bloomberg analysts also weighing in and increasing the likelihood of these pending funds launching this year to 75%. They stated that “the unanimity and decisiveness of [the] ruling was beyond expectations,” with the SEC having little or nothing to hang on to.
The analysts at Bernstein also seem to adopt this view as they noted that the SEC would simply go the “middle route” and be more open to approving these ETFs rather than “inventing another reason for refusal” and sticking to the strict approach which they have taken on the crypto industry so far.
This projection also seems feasible since the SEC must decide (approve or deny) on the ARK 21Shares Bitcoin ETF by January 10, 2024.
Considering that the court has overruled the primary reason why the SEC has continued to deny these applications, the Commission might have difficulty coming up with another convincing reason to deny the application.
Before then, the SEC will be expected to decide on some pending applications in October. However, the Commission can delay its decision on them once again.
ETFs Integral To The Crypto Asset Management Industry
Bernstein’s analysts also project the crypto asset management industry to grow from its current level (between to billion) to over 0 billion in the next five years. These ETFs, which they project could launch early next year, are part of the factors they believe could spur such growth.
According to them, there will be increased demand from institutional investors in crypto assets, and funds such as a Spot Bitcoin ETF will be their go-to option. A Spot Bitcoin ETF will allow these investors to invest directly in the flagship cryptocurrency in a regulated manner.
In line with this, they expect the ETFs to hold 10% of the Bitcoin and Ethereum market cap and “5-6% share for liquid crypto hedge funds.”
FTX Approved to Sell $3.4B in Crypto; Tron’s Justin Sun, DWF Labs Consider Buying Cache
The bankrupt crypto exchange FTX received permission to sell its crypto assets valued at more than .4 billion after John Dorsey, the presiding bankruptcy court judge, approved the motion. Moreover, Tron founder Justin Sun took to social media and said he is considering an offer for FTX’s holdings.
FTX Wins Approval to Offload .4B in Digital Assets
The FTX estate received approval to sell its digital assets valued at .4 billion, a report by Coindesk said Wednesday. Judge John Dorsey approved the motion, overruling two objections.
FTX’s assets are comprised of .16 billion in SOL, 0 million in BTC, 2 million in ETH, 7 million in APT, 0 million in USDT, 9 million in XRP, million in BIT, million in STG, million in WBTC and million in WETH. Bitgo is managing these assets, and there have been discussions about not selling the funds directly on the open market.
Last week, FTX said on social media that it was moving and bridging tokens back to their original chains. “FTX has been actively bridging tokens from various blockchains back to their native blockchains,” the company stated. “FTX also has been in the process of migrating SOL and other tokens from existing wallets to Bitgo, FTX’s qualified custodian.”
While there has been talk of selling the coins over the counter (OTC), some have expressed interest in a public purchase. Andrei Grachev, head of DWF Labs, explained his company is considering buying the assets.
“DWF Labs is considering to purchase FTX assets in order to provide creditors the best execution price and mitigate a risk of a huge aggressive selling pressure that could send the market back to 2020’s capitalization,” he wrote.
Tron founder Justin Sun also said he was contemplating putting in an offer. “Contemplating an offer for FTX’s holding tokens and assets to reduce their selling impact on the crypto community,” Sun posted to the social media platform X. “Let’s unite to bolster our crypto ecosystem,” Sun added.
What do you think about the offers for FTX’s stash? Do you think a well known entity or individual will buy these coins? Share your thoughts and opinions about this subject in the comments section below.