Bloomberg’s senior ETF analyst has reaffirmed his prediction of a July 2 launch date for U.S. spot ethereum exchange-traded funds (ETFs) after observing a surge in amended S-1 (registration statement) filings on Friday. U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler has indicated that spot ether ETFs will launch this summer, pending the SEC’s […]
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US Court Filings Expose Montenegro’s Prime Minister’s Stake In Failed Terraform Labs
A recent Bloomberg report has revealed that Montenegro’s Prime Minister, Milojko Spajic, personally invested in Terraform Labs years before the company’s collapse. The discovery has raised concerns regarding the founder’s choice to flee prosecution by seeking refuge in the same nation.
The founder of Terraform Labs, Do Kwon, was detained in Montenegro in March 2023 and is currently facing extradition demands from the US and South Korea.
Opposition Calls For Resignation
According to Bloomberg, Milojko Spajic has claimed that the investment was made by Singapore-based company Das Capital SG, in which he was a partner. However, the independent Montenegrin newspaper Vijesti, which broke the news, reported that the holdings grew to nearly million at one point.
Spajic’s LinkedIn profile shows that he worked as a credit analyst and investor in Singapore from 2014 to 2020 before returning to Montenegro to serve as finance minister in late 2020.
The revelations surrounding the prime minister’s investment have emerged at a critical time for Montenegro, where Spajic has led a “fragile” ruling coalition since October.
As a NATO member and European Union candidate country, the controversy surrounding the prime minister’s involvement in a collapsed crypto firm has increased pressure from the opposition, who now demand Spajic’s resignation.
Terraform Labs Lawsuit Exposes Prime Minister’s Investment
The prime minister’s investment details came to light in a lawsuit filed by the US Securities and Exchange Commission against Terraform Labs and Do Kwon.
Kwon, the founder of the crypto firm, is facing prosecution linked to the billion collapse of the TerraUSD stablecoin in 2022.
In April, a civil trial in New York found the bankrupt company and Kwon personally liable for fraud, resulting in Terraform agreeing to pay .5 billion to settle the case with the SEC.
In light of these developments, Terraform CEO Chris Armani recently announced the complete dissolution of the company’s operations via a social media post on X (formerly Twitter).
While expressing disappointment in the lawsuit’s outcome, Armani confirmed that TFL would cease operations and transfer ownership of the chain to the community.
On the other hand, Kwon has already served his local sentence in Montenegro after being detained using a fake passport. The justice minister of Montenegro favors sending Kwon to the US, while the courts support his extradition to South Korea. With multiple rulings, Kwon’s fate now lies in the hands of the High Court.
At the time of writing, the protocol’s native token, Luna Classic (LUNC), is trading at .000091, with sharp price declines of over 6% and 22% over the past seven and fourteen days, respectively.
Featured image from DALL-E, chart from TradingView.com
SEC Approves Key Regulatory Filings for Spot Ether ETFs
The U.S. Securities and Exchange Commission (SEC) has approved pivotal 19b-4 filings for spot ether ETFs, marking a major regulatory milestone for the cryptocurrency sector. This approval indicates a newfound willingness to engage with ether ETF issuers. SEC Surprises Market With Approval of Key Filings for Spot Ether ETFs In a surprising decision, the SEC […]
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Franklin Templeton Eyes Broad Crypto Expansion Beyond Bitcoin, Foresees More ETP Filings
Franklin Templeton’s Head of Digital Assets, Sandy Kaul, foresees an increase in filings following the recent approval of 11 new spot bitcoin exchange-traded funds. Kaul highlighted that the firm, managing .5 trillion in assets, recognizes the “potential of this whole crypto domain.”
Franklin Templeton Sets Sights on Expanding Crypto Horizons
On social media this past week, the investment management giant Franklin Templeton discussed ethereum (ETH) and solana (SOL) in a series of tweets about crypto and blockchain technology. The company just launched its spot bitcoin exchange-traded fund (ETF) and presently the fund commands 1,160 BTC worth around million. In an interview with Bloomberg’s Kailey Leinz and Sonali Basak, the asset manager’s digital assets sector chief Sandy Kaul said the firm expects more filings to come.
“We see the potential of this whole crypto domain,” Kaul said. “So we will continue to evolve our product range and continue to offer our investors more opportunities to access this innovation and capture the beta of what we call this new protocol economy.” When queried about Franklin Templeton’s inclination towards ethereum (ETH), Kaul did not specify. However, she indicated that the public should expect additional exchange-traded product (ETP) filings from the asset management company. “You can anticipate that you will see more filings from us at some point,” she said.
“There are many coins with large market caps and why just stop with just bitcoin?” Kaul remarked. “I mean there are other opportunities and they are different opportunities. Ethereum is another asset in the crypto domain that offers a slightly different value proposition than bitcoin because it’s more of an app development platform and it fosters its own ecosystem. So that’s a slightly different investment proposition than bitcoin.” The Franklin Templeton executive added:
In all portfolio theory, it is better to have multiple assets in a portfolio rather than a single-asset portfolio. So it would not be reasonable to expect that bitcoin is going to be the only asset that moves into vehicles that make it easier for investors to put money into this space.
The Bloomberg show hosts also inquired with Kaul regarding BTC’s categorization, likening it to a commodity similar to gold. “I think there’s some truth to that because there’s this digital scarcity programmed into Bitcoin where you only get 21 million coins ever going to be created. And you can track every one of those coins through a decentralized process, so no one can control that supply. So I think there’s some good analogies that can be drawn to the gold situation.”
Kaul wrapped up the discussion by touching on BTC’s volatility, observing that the digital asset’s price swings bear a resemblance to those in the commodities market. “I think that the volatility that you see in bitcoin markets is often similar to the volatility that you will see in commodity markets,” Kaul remarked. Responsible trading firms like Franklin Templeton know how to handle that type of volatility, and we get into these markets every day on behalf of our investors. I think that this is a great opportunity for them and there’s a lot they can relate to with this investment, even if they don’t understand bitcoin.”
What do you think about the interview with Franklin Templeton’s digital assets lead Sandy Kaul and her comments? Share your thoughts and opinions about this subject in the comments section below.
SEC Sets Deadline for Spot Bitcoin ETF Applicants — 3 Days Left to Update Filings for Early January Decision
The U.S. Securities and Exchange Commission (SEC) has reportedly set a deadline of Dec. 29 for spot bitcoin ETF applicants to finalize their filing amendments. According to reports, the SEC has told spot bitcoin ETF issuers that applications that are fully updated and filed by this Friday will be considered in the first wave of its spot bitcoin ETF decision.
SEC’s Spot Bitcoin ETF Deadline
The U.S. Securities and Exchange Commission (SEC) reportedly instructed spot bitcoin exchange-traded fund (ETF) applicants during their meetings last week to finalize the amendments to their registration statements (S-1s) by Dec. 29 to be considered in the first wave of spot bitcoin ETF decision.
Fox Business journalist Eleanor Terrett shared on social media platform X on Dec. 24:
Confirming the date for final amendments to all S-1s by Friday the 29th. The SEC has told issuers that applications that are fully finished and filed by Friday will be considered in the first wave. Anyone who is not will not be considered.
Moreover, she noted that the SEC has emphasized to the applicants that their spot bitcoin ETF filings cannot mention the in-kind creation method or the applications will not be considered. The regulator has pushed for the use of the cash creation method. “The filings cannot mention in-kind creation or they will be rejected,” Terrett wrote.
Blackrock, the world’s largest asset manager, and several other spot bitcoin ETF applications have argued for the use of the in-kind model. However, failing to convince the SEC with its revised in-kind model, Blackrock adopted the cash creation model in its latest amendment.
SEC officials held meetings last Thursday with representatives from at least seven companies seeking to launch a spot bitcoin ETF early next year, Reuters reported, citing public memos and insiders. Key participants in these discussions included Blackrock, Grayscale Investments, ARK Invest, and 21shares, the news outlet conveyed, adding that the meetings also included representatives from exchanges where the spot bitcoin ETFs could be traded, such as Nasdaq and Cboe.
Executives from two companies who engaged with the SEC on Thursday told the publication that the regulator suggested during the meeting that approval for the proposed ETFs could come in the first few business days of 2024. They noted that the issuers would be directly notified of the effective date for their ETF launch requests. The first deadline for a spot bitcoin ETF decision next year is Jan. 10 for a joint spot bitcoin ETF proposal from Ark and 21shares.
There are currently 13 spot bitcoin ETF applications pending at the SEC. Many expect the regulator to approve multiple spot bitcoin ETFs at once. Blackrock recently revealed its plan to seed its spot bitcoin ETF with million on Jan. 3. Former SEC internet enforcement chief John Reed Stark said approving spot bitcoin ETFs could be SEC Chair Gary Gensler’s legacy. Gensler issued a warning about investing in crypto last week amid soaring anticipation of spot bitcoin ETF approval.
What do you think about the SEC setting Dec. 29 as the deadline for spot bitcoin ETF applicants? Do you think the regulator is preparing to approve multiple spot bitcoin ETFs in early January? Let us know in the comments section below.
SEC Chair Gensler Reveals Regulator Is ‘Taking a New Look’ at Spot Bitcoin ETF Filings
U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler has revealed that the regulator is taking a new look at spot bitcoin exchange-traded fund (ETF) applications based on recent court rulings. “We had in the past denied a number of these applications, but the courts here in the District of Columbia weighed in on that,” Gensler explained.
Gensler: ‘We’re Taking a New Look’
The chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, answered some questions regarding spot bitcoin exchange-traded fund (ETF) applications in an interview with CNBC on Thursday.
“We have, I think, between eight and a dozen filings … that’s going through the process right now,” Gensler explained, emphasizing that as the chairman of the SEC, he’s not going to prejudge any particular filing. According to public records, there are currently 13 spot bitcoin ETF applications pending at the SEC.
“As you might know, we had in the past denied a number of these applications, but the courts here in the District of Columbia weighed in on that,” the SEC chairman noted, adding:
So we’re taking a new look at this based upon those court rulings.
Gensler’s comments stemmed from a legal dispute involving the SEC’s denial of Grayscale Investments’ application to convert its bitcoin trust (GBTC) into a spot bitcoin ETF. The court subsequently ordered the SEC to reevaluate the crypto asset manager’s application.
Commenting on whether the SEC has objection to the court ruling in the Grayscale case, Gensler said: “We do everything at the Securities and Exchange Commission within the laws Congress has passed and how the courts interpret them. We look keenly to the economics.” Gensler similarly told Bloomberg this week that the securities regulator does things according to its authorities and how the courts interpret them.
Regarding the crypto market, Chair Gensler stated: “I would say this about the crypto field … There’s a lot of noncompliance. Noncompliance with the securities laws that are there to help give you the disclosure so you can make the investment decision, but also to protect you against fraud and manipulation. And there’s been far too much fraud and bad actors in the crypto field. There’s a lot of noncompliance, not only with the securities laws but other laws around any money laundering and protecting the public against bad actors there.” He further stressed:
This is a field where you still don’t have the fundamental information on many of these projects. And the intermediaries of the so-called crypto exchanges are commingling and doing things that we do not allow anywhere else in our financial system.
What do you think about the statements by SEC Chairman Gensler? Let us know in the comments section below.
Blackrock and Bitwise Update Their Spot Bitcoin ETF Filings Amid SEC Approval Hype
Blackrock, the world’s largest asset manager, and Bitwise have filed an amendment to their spot bitcoin exchange-traded fund (ETF) applications with the U.S. Securities and Exchange Commission (SEC). The SEC has held meetings with exchanges and spot bitcoin ETF issuers regarding their applications. “Both the SEC and these issuers are working hard to iron things out,” said a Bloomberg analyst.
Spot Bitcoin ETF Issuers Update Their Filings
Two companies, Blackrock and Bitwise, filed an amendment to their spot bitcoin exchange-traded fund (ETF) applications with the U.S. Securities and Exchange Commission (SEC) on Monday.
Commenting on the filings, Bloomberg analyst James Seyffart wrote on social media platform X:
They’re just pouring in. We have another spot bitcoin ETF S-1 (prospectus) amendment tonight. This one is from Blackrock. SEC is obviously giving multiple issuers the same or very similar instructions.
In another X post, he wrote: “Second S-1 (prospectus) amendment from Bitwise Invest for their spot bitcoin ETF. Conversations still happening with SEC and potential issuers.”
The prospect of spot bitcoin ETFs receiving SEC approval has generated significant excitement within the crypto community. Bitcoin enthusiast Anthony Pompliano speculated: “The bitcoin ETF issuers are updating their applications so fast that you have to think they are all preparing for an approval at the same time that will kick off one of the most insane marketing blitzes in financial markets history as these large firms compete for billions in AUM.”
Seyffart opined:
The wheel is still turning. Both the SEC and these issuers are working hard to iron things out. These filings are likely the result of many conversations and a lot of man hours on/between both sides.
The Bloomberg analyst explained on Friday that the window for a spot bitcoin ETF approval is officially Jan 5 to Jan 10. “Really this means that any potential approval orders are going to come on either Monday Jan 8, Tuesday Jan 9, or Wednesday Jan 10. Mark your calendars people,” he wrote on X. Bloomberg is predicting a 90% chance of a spot bitcoin ETF approval by Jan. 10.
Do you think the SEC will approve spot bitcoin ETFs in January? Let us know in the comments section below.
Bitcoin Price Crashes Below $26,000 As SEC Pushes Back On 7 Spot ETF Filings
On August 29, flagship cryptocurrency Bitcoin soared to as high as ,000 following Grayscale’s victory. However, it has now lost these gains as the US Securities and Exchange Commission (SEC) chose to delay its decisions on seven Spot ETF applications.
Bitcoin Crashes Below ,000
Bitcoin dropped by over 4% to ,000 as the SEC extended the timeline to decide on the ETF applications of BlackRock, WisdomTree, Invesco, Fidelity, Valkyrie, VanEck, and Bitwise.
This price action contrasts with when the cryptocurrency had reacted positively to the news of Grayscale’s victory, with the US Court of Appeals ruling in favor of the asset manager against the Commission.
Many had looked forward to the SEC’s decision in these ETF applications following Grayscale’s victory, hoping that the legal loss would have softened the regulator into approving these applications.
However, Bloomberg ETF analyst Eric Balchunas had stated earlier that he would not be “surprised” if the SEC delayed these applications. According to him, these timelines may not matter as much as the SEC is still likely to “give in” at some point, and we will eventually see the approval of these applications.
Following this extension, the SEC will have another 45 days to review these applications and choose whether to approve, deny, or delay its decision. The regulator also has a maximum of 240 days to decide whether or not to approve or disapprove these applications. However, it has several key deadlines in between.
What’s Next For BTC?
Many have projected the approval of a Spot Bitcoin ETF as one of the key events that could spark a significant surge in Bitcoin’s price (as we saw how the market reacted following Grayscale’s victory). However, the SEC’s decision to delay these applications shows that it is not ready to back down just yet, and there could be continued resistance to approving a Spot Bitcoin ETF.
While the approval of a Spot Bitcoin ETF remains uncertain, Bitcoin may be hanging in the red throughout this month. According to historical data, September has always been known to be bearish for Bitcoin’s price as the digital asset has closed in the red most times at the end of September.
Meanwhile, October seems more promising as there are major days to watch as Bloomberg analyst James Seyffart noted that the SEC’s next deadline for these ETF applications is in October. Ethereum Futures ETFs are also expected to launch in October, which could be a major boost for the market.
Despite this, analysts aren’t hopeful of Bitcoin hitting any new highs this year, as one predicts that Bitcoin could consolidate between ,000 and ,000 for the remainder of this year.
I won’t be surprised to see #Bitcoin consolidate between ,000 – ,000 for the remainder of 2023. pic.twitter.com/2BihBPZaCJ
— Crypto Rover (@rovercrc) August 31, 2023
Ethereum ETF Race Gets Hotter As SEC Receives 11 Filings In One Week
The United States Securities and Exchange Commission (SEC) has been flooded with many applications for Ethereum (ETH) Exchange-Traded Funds (ETFs) in just one week. The applications currently stand at 12, with the latest addition coming from ProShares, a popular fund manager.
The platform filed four applications for Ether-based ETFs, including a dual Ether and Bitcoin futures strategy ETF, an Ether Strategy ETF, and a short Ether Strategy ETF.
Will The SEC Approve An Ethereum Futures ETF?
The recent surge in applications started on the 28th of July this year after Volatility Shares filed its application. Ever since, other asset management companies, including ProShares, Roundhill Financial, Bitwise, Van Eck, and Grayscale Investment, have filled submissions, with some bringing multiple applications.
The most recent application, filed on August 3 by ProShares, proposes an equal-weight Bitcoin and Ether ETF to measure the performance of holding long positions in the nearest maturing monthly Ether and Bitcoin contracts.
According to renowned Financial Expert at Bloomberg Intelligence, James Seyffart, ProShare filed four separate applications with the SEC. Bitwise also submitted three applications, while Grayscale Investments filed two applications.
However, despite the growing optimism, it remains to be seen if the Securities and Exchange Commission will approve these filings. The SEC has never approved an ETF that tracks Ether Futures contracts, unlike Bitcoin Futures ETFs that have been around since October 2021.
Many market experts have argued that these applications are a mere gamble by these asset management companies, who do not want to miss out on being the first Ethereum ETF in the United States.
The likelihood of receiving the SEC’s approval remains slim as the regulatory body has never approved an Ethereum futures ETF filing. Add to the mix the consistent refusal of SEC’s Chair, Gary Gensler, consistent refusal to answer if the agency considers ETH a security. This has further compounded regulatory uncertainty around the network.
If none of the applications before the SEC get denied, the Ether ETFs will launch 75 days from their respective filing dates. Analysts expect the Volatility Shares ETF to lead the charge on 12th October.
Understanding The Difference Between Futures And Spot ETF Products
The primary difference between futures and spot ETF products lies in the fact that while the former tracks the price of futures contracts, the latter requires the issuers to purchase the underlying assets. Spot ETFs are generally considered more valid since they require the fund manager to purchase and hold underlying assets.
The current spike in Ether-based applications comes amidst a wave of filings from leading asset management companies, including BlackRock, the world’s largest asset manager, among others. These companies are looking to offer the first spot in Bitcoin ETF in the US.
Investors and members of the crypto community remain expectant of the outcome of the SEC’s consideration of the applications lying before it. Whatever decision the agency takes is likely to affect the attractiveness and accessibility of crypto investments, especially for larger institutional investors.
Ethereum ETFs Heat Up As Filings With SEC Climbs To Six
The latest sign of crypto going mainstream among traditional investors is the race heating up to launch the first exchange-traded fund (ETF) tied to Ethereum futures. In recent weeks, six companies have filed proposals with the Securities and Exchange Commission (SEC) to launch Ethereum futures ETFs.
The Race To Launch An Ethereum Futures ETF
Cryptocurrency ETFs track the price of the digital currencies they are tied to and they are not a new thing in the crypto industry. Bitcoin futures have gained popularity in recent years and are already being offered by popular investment companies.
However, with bitcoin futures ETFs now established, it is only natural for the next hot product to be an Ethereum futures ETF. So far, more than 10 Ethereum futures ETFs have been filed in the past, but none have been approved by the SEC.
Volatility Shares Ether Strategy ETF was the first to be filed on July 28. Since then, Bitwise Ethereum Strategy ETF, Roundhill Ether Strategy ETF, VanEck’s Ethereum Strategy ETF, and Proshares Short Ether Strategy ETF have been filed and are awaiting clearance, as reported by Bloomberg Intelligence.
Now, Grayscale Investments is also looking to join the pack with its new Ethereum Futures ETF filing. After withdrawing its filing earlier due to SEC concerns, the digital currency asset management company is now back with a better application. Bitwise, another crypto index fund manager, also withdrew its previous filing at the same time.
According to the filing, the majority of the Grayscale Investments fund’s assets would be placed in Ether futures contracts with “front-month” maturities, which have “the shortest time to maturity.” The company also intends to diversify into other Ethereum contracts in the coming future.
Why Ethereum Futures ETFs Are Gaining Traction
The buzz around crypto ETFs was recently ignited by the news of BlackRock and other investment companies filing applications with the SEC for Spot Bitcoin ETFs. However, the SEC is still yet to give the go-ahead, citing failure to meet anti-fraud and investor protection standards in past applications.
Analysts report that BlackRock’s Bitcoin ETF could unlock trillion worth of wealth. Of course, there’s no guarantee if or when they may get the green light.
For crypto investors and the industry, an Ethereum futures ETF would no doubt be a game changer. If approved, Ethereum futures would become available to investors 75 days after the application date. It would provide an easy, low-cost way for investors of these investment companies to gain exposure to the second-largest cryptocurrency by market cap.
As for ETH’s spot price, it has been struggling to break above ,000 this year. At the time of writing, ETH is trading at ,843.96. But if the filings are approved by the SEC, it may signal the beginning of the next Ethereum bull run.