On Wednesday, Nasdaq, the second-largest American stock exchange based in New York City, revised its 19b-4 filing for Blackrock’s spot ethereum exchange-traded fund (ETF) with the U.S. Securities and Exchange Commission (SEC). Nasdaq Amends Blackrock’s Ether ETF 19b-4 Filing Following several amended 19b-4 filings by Cboe on Tuesday, Nasdaq has refiled Blackrock’s 19b-4 submission. Blackrock, […]
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Report: Nasdaq and Cboe Asked to Refine Ethereum ETF Proposals
According to Reuters, sources revealed that the U.S. Securities and Exchange Commission (SEC) has requested Nasdaq and Cboe to “fine-tune” their spot ethereum exchange-traded fund proposals. Ethereum experienced a 22% increase over the past day, coasting along at ,785 per unit on Monday at 9:30 a.m. Eastern Time. Reported SEC ‘Fine-Tuning’ Request Fuels Ethereum Rally […]
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Tokyo-Based Crypto Exchange Coincheck to List on Nasdaq Through Merger
Coincheck, a Japanese cryptocurrency exchange, has made a public filing to list Coincheck Group B.V. on Nasdaq through a De-SPAC transaction with Thunder Bridge Capital Partners IV Inc. This follows an earlier announcement from March 22, 2022, detailing plans by Monex Group Inc., Coincheck’s parent company, for the listing. After the listing, Coincheck will become […]
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Bitcoin Correlation To Nasdaq Continues To Be Negative: What It Means
Data shows the Bitcoin correlation to the Nasdaq has continued to be negative since December. Here’s what this means for the cryptocurrency.
Bitcoin 60-Day Correlation To Nasdaq 100 Is Negative Right Now
In a new post on X, the analytics firm Kaiko has discussed what the trend in the correlation between BTC and Nasdaq has looked like recently. The “correlation” here refers to a metric that keeps track of how tied together the prices of two commodities have been over a given period.
This period can naturally be of any length, but in the context of the current topic, the 60-day correlation is of interest. This indicator version measures the prices’ dependence on each other during the past two months.
When the value of this metric is greater than zero, it means that the price of one asset has been reacting to the other by moving in the same direction. The closer the indicator is to one, the stronger this relationship.
On the other hand, values under zero suggest some correlation between the two assets, but it has been a negative one. This means that the assets have reacted to each other by moving in the opposite direction. In this case, the extreme point is -1, so the closer the indicator is to this mark, the stronger the correlation between the prices.
Lastly, the correlation being exactly zero implies that there is no correlation whatsoever between the two assets. In mathematics, such a condition occurs when two variables are independent.
Now, here is a chart that shows the trend in the 60-day correlation between Bitcoin and Nasdaq 100 over the past year:
As the above graph shows, the 60-day correlation between Bitcoin and Nasdaq is shown in percentage here, with 100% corresponding to a value of 1.
From the chart, it’s apparent that the metric’s value was in a state of overall gradual decline during 2023, up until the final couple of months of the year, when the metric took an especially sharp dive.
Some amount of positive correlation had existed between the two assets before this plummet, but following it, the 60-day correlation took to negative values. However, the indicator remained close to the 0% mark, implying that the two only had a slight negative relationship.
The correlation had started surging and reached almost exactly 0% for a brief period just earlier, but the metric has since again come down and assumed slight negative values.
It would appear that BTC has kicked off 2024 slightly, moving against the traditional markets, which could set the stage for the cryptocurrency to go on and explore its territories this year.
BTC Price
At the time of writing, Bitcoin is trading around the ,800 mark, up over 5% over the past week.
Blackrock Files to Launch Ethereum Trust ETF on Nasdaq, Eyes Spot Crypto Market Entry
In a significant development for cryptocurrency investment vehicles, Blackrock Inc., through its subsidiary Ishares Delaware Trust Sponsor LLC, has filed a 19b-4 form with the U.S. Securities and Exchange Commission (SEC) to list shares of the Ishares Ethereum Trust on the Nasdaq.
Blackrock Dives Deeper Into Crypto With Ethereum ETF Plan Amid Regulatory Clarity
After registering its Ishares Ethereum Trust with the Division of Corporations in Delaware, the world’s largest asset manager submitted a 19b-4 registration to the U.S. securities regulator. The initiative could provide U.S. investors with a regulated spot exchange-traded fund (ETF) to track the price of ethereum (ETH). The trust is designed to mirror the performance of ethereum’s price, accounting for expenses and liabilities.
The proposed Ishares Ethereum Trust will issue shares that represent fractional, undivided beneficial interests in the trust’s net assets, consisting mainly of ethereum held by the Coinbase Custody Trust Company. The filing indicates that the ETF is intended to offer investment exposure to the price of ethereum through the securities market, avoiding the operational challenges of investing directly in cryptocurrency assets.
The net asset value (NAV) of the trust, to be calculated at the close of the market each business day, will depend on the CF Benchmarks Index, which compiles ETH trading data from several leading cryptocurrency exchanges.
The Ethereum Trust’s shares will be continuously issued and redeemed in “baskets,” which are large blocks of shares traded for ethereum. Only authorized broker-dealers are allowed to purchase or redeem these baskets, which could help reduce the volatility of premiums and discounts commonly associated with over-the-counter (OTC) ethereum funds.
Following the news of the ETF on platforms such as X, ethereum saw a price surge of over 13% against the U.S. dollar. The price surged from ,885 to a peak of ,135 per ethereum around 7:00 p.m. Eastern Time on November 9, 2023. Blackrock’s filing follows similar applications for spot ethereum ETFs by Ark Invest, 21shares, and Vaneck with the SEC.
The ETF proposal from Blackrock arrives against the backdrop of the SEC’s recent approval of ethereum-based futures ETFs and ongoing discussions about the regulation of spot bitcoin exchange-traded products (ETPs). The filing emphasizes Blackrock’s ETF strategy to mitigate the risk of losses due to fraud or insolvency that investors may encounter when holding digital assets on centralized exchanges.
What do you think about the Blackrock registration for the Ishares Ethereum Trust? Share your thoughts and opinions about this subject in the comments section below.
Michael Burry Bets $1.6 Billion Against Market: ‘Big Short’ Investor Takes Bearish Stance on S&P 500 and Nasdaq
In filings with securities authorities released on Monday, renowned hedge fund manager Michael Burry, whose exploits were famously captured in the film “The Big Short,” took a bearish stance on the market. Burry’s Scion Asset Management shorted the S&P 500 and Nasdaq 100 for the close of the second quarter, wagering approximately .6 billion on an impending stock market collapse.
A New ‘Big Short’? Michael Burry Wagers .6 Billion Against QQQ and SPY
Michael Burry appears to be taking a bearish stance on Wall Street once more, with Scion Asset Management’s latest Securities and Exchange Commission (SEC) 13F filing revealing a substantial acquisition of put options against Invesco QQQ ETF (NASDAQ: QQQ) and SPDR S&P 500 ETF Trust (NYSEARCA: SPY). These options have a notional value of .62 billion, comprising a staggering 93% of Scion’s disclosed assets.
Of this substantial wager, 8.8 million has been placed against QQQ, while 6.6 million targets SPY. Despite the S&P 500 and Nasdaq 100 performing robustly thus far in 2023, the specifics of Burry’s filings, such as purchase prices and expiration dates, remain concealed. Given Burry’s successful bets during the 2008 financial crisis, his market moves are closely watched. Yet in a surprising turn, Burry shifted from a selling stance in January 2023 to admitting he was mistaken by April.
He openly acknowledged his error in advising sales, even extending congratulations to the “BTFD generation.” Alongside these bold moves, Scion’s latest filing reveals long positions in companies such as Stellantis, Discovery, Expedia, CVS, MGM Resorts, Iheartmedia, and Cigna. It was around this same time last year, in August 2022, when Burry began to predict a multi-year recession in the United States, adopting a more bearish outlook.
In March, Burry likened three major bank collapses to the Panic of 1907, and the latest SEC filings indicate that Scion eliminated exposure to Western Alliance Bancorp and Pacwest. As August 2023 progresses, both the S&P 500 and Nasdaq 100 have retreated against the U.S. dollar, shedding 2% to 3% respectively this month. The 13F filing additionally reveals that Scion has divested its holdings in Alibaba Group and JD.com.
What do you think about Michael Burry’s short bets? Share your thoughts and opinions about this subject in the comments section below.
Nasdaq Halts Crypto Custody Plans Amid Tough US Regulatory Environment
Adena Friedman, CEO of Nasdaq, the international securities marketplace, announced that the firm is postponing its cryptocurrency custody plans due to the United States’ “regulatory environment.” During a Q2 earnings call, Friedman disclosed that Nasdaq aimed to launch the service last quarter, but it has been put on hold.
U.S. ‘Regulatory Environment’ Forces Nasdaq to Postpone Crypto Custody Launch
In late March, Nasdaq unveiled its plans to introduce a crypto asset custody service. The company applied for a limited-purpose trust company charter from the New York Department of Financial Services.
Initially, it was reported that Nasdaq would provide custody for bitcoin (BTC) and ethereum (ETH), with plans to expand to additional cryptocurrencies. However, during a Q2 earnings call, CEO Adena Friedman stated that the project had been paused.
“This quarter, considering the shifting business and regulatory environment in the United States, we have made the decision to halt our launch of the U.S. digital assets custodian business and our related efforts to pursue relevant license,” said the Nasdaq executive. Friedman elaborated:
We continue to build and deliver technology capabilities that position Nasdaq as a leading digital assets software solutions provider to the broader global industry. This includes advancing our custody solution as a technology platform to serve the broader, global digital assets marketplace.
Since the U.S. Securities and Exchange Commission (SEC) took action against multiple crypto companies for alleged securities law violations, regulatory pressure has intensified in the U.S. The U.S. regulator has categorized 66 digital assets worth over billion as securities.
This prompted several businesses such as Bakkt, Etoro, and Robinhood to delist some cryptocurrencies. However, after Ripple Labs and XRP secured a partial victory regarding programmatic sales, numerous exchanges opted to re-list XRP.
What impact do you think Nasdaq’s decision to halt its cryptocurrency custody service might have on the broader digital assets market, and how could it influence future regulatory decisions in the U.S.? Share your thoughts and opinions about this subject in the comments section below.
Coinbase Shares Skyrocket Over 30% After Nasdaq and Cboe Amend Bitcoin ETF Applications
During the initial half of 2023, Coinbase shares experienced a significant surge, rocketing over 30% this week as Nasdaq and Cboe refiled spot bitcoin exchange-traded fund (ETF) applications on behalf of numerous fund managers. The revisions highlighted that, upon ETF approval, Coinbase has been asked to serve as a surveillance-sharing agreement (SSA) collaborator.
Coinbase Stock Rockets Over 30% as ETF Managers Choose It as Surveillance-Sharing Partner
Coinbase (Nasdaq: COIN) observed a 30.82% increase in its shares throughout the past week, and six-month data reveals that COIN has jumped 131% against the U.S. dollar. Despite this substantial growth, the firm’s shares remain down 79% from their all-time peak.
On September 30, 2021, COIN’s value was 9 per share; currently, it stands at .93. This recent upswing likely stems from multiple ETF managers applying for a spot bitcoin ETF and designating Coinbase as their funds’ SSA associate. Nasdaq and Cboe performed this action for several fund sponsors, as indicated in the latest amendments.
The San Francisco-based crypto exchange is concurrently contending with a lawsuit filed by the U.S. Securities and Exchange Commission (SEC). The SEC alleges that Coinbase violated numerous securities regulations and “failed to register its staking-as-a-service program as required by securities laws.”
Coinbase submitted a motion to dismiss the case against the crypto exchange, asserting that it “is not, and has never been, a securities exchange, or a broker, or a clearing agency under the federal securities laws.” Coinbase further emphasized that although Congress is considering regulating digital currencies, no legislative measures have been implemented granting “the SEC any powers to regulate digital asset exchanges, much less retroactively.”
While COIN has thrived this week against the greenback, multiple other publicly traded companies experienced rising stock prices following the crypto market’s recent surge. Alongside COIN, firms such as Riot Platforms, Microstrategy, Cleanspark, Bitfarms, and more have recently amassed double-digit returns. Nonetheless, COIN has outshined the competition regarding crypto-related shares registering gains in the past week.
What are your thoughts on Coinbase’s recent surge in shares and its potential role as a surveillance-sharing agreement collaborator for upcoming bitcoin ETFs? Share your thoughts and opinions about this subject in the comments section below.
Nasdaq Resubmits Blackrock Spot Bitcoin ETF Application, Inks Agreement With Coinbase for Surveillance-Sharing
After the four firms that filed for spot bitcoin exchange-traded funds (ETFs) resubmitted their applications with the U.S. Securities and Exchange Commission (SEC), the asset manager Blackrock followed suit with an amended application. Similar to Cboe’s refiling of registrations from Fidelity, Vaneck, Invesco, and Wisdomtree, Nasdaq amended the Blackrock spot bitcoin ETF filing, by incorporating Coinbase as a surveillance-sharing agreement (SSA) partner.
Nasdaq Amends Blackrock Spot Bitcoin ETF Application Alongside Industry Competitors
Last week, a report from The Wall Street Journal revealed that individuals with knowledge of the situation said the Securities and Exchange Commission (SEC) expressed dissatisfaction with the numerous spot bitcoin ETF filings submitted in the past two weeks.
The leading U.S. options exchange, Cboe, informed the WSJ that it intended to revise its filings. Subsequently, Cboe updated the spot bitcoin ETF filings for Wisdomtree, Vaneck, Invesco, and Fidelity.
At that time, it remained undisclosed whether Blackrock had updated its registration for its spot bitcoin ETF. However, on June 29, 2023, records indicate that Nasdaq revised the Blackrock spot bitcoin 19b-4 filing. Like the other ETF resubmissions, Blackrock and Nasdaq designated Coinbase as the fund’s surveillance-sharing agreement (SSA) partner.
In essence, an SSA partner is an organization that has consented to share surveillance information with another entity. Regarding an exchange-traded fund, an SSA cooperates with the manager to exchange surveillance information aimed at enhancing security and ensuring public safety.
One of the primary concerns regarding a spot bitcoin ETF, as stated in the SEC’s numerous denials of spot bitcoin ETFs over the years, is market manipulation and insufficient investor protection.
Nevertheless, Blackrock, being the world’s largest asset manager, carries significant credibility, leading some to speculate that the financial powerhouse’s credentials could facilitate the approval of Blackrock’s spot Bitcoin ETF.
“The Spot BTC SSA is expected to be a bilateral surveillance-sharing agreement between Nasdaq and Coinbase that is intended to supplement the exchange’s market surveillance program,” according to details in Blackrock’s filing.
In the ETF filing submitted for approval to the U.S. securities regulator, Coinbase is also designated as Blackrock’s custodian. Blackrock’s filing elaborates that there is an agreement and term sheet between Coinbase and Nasdaq, which took effect on June 16, 2023.
Some market observers suggest that this could give Blackrock an advantage, as opposed to stating that the funds are simply “expecting to enter into an SSA,” as explained by Nate Geraci, co-founder of the ETF Institute.
What are your thoughts on the resubmission of spot Bitcoin ETF applications by major players like Blackrock? Do you believe this renewed effort will pave the way for regulatory approval? Share your thoughts and opinions about this subject in the comments section below.
Crypto Industry Report: BTC Beats Nasdaq Index and Gold in Q1, Liquid Staking Governance Tokens up by 210%
According to the latest Coingecko crypto industry report, during the first quarter of 2023, bitcoin became the best-performing asset after it saw its U.S. dollar value go up from just under ,000 observed on Dec. 31, 2022, to just over ,000 by March 31, 2023. The report attributes the crypto asset’s resurgence to “increased volatility from the banking crisis” and to Binance’s decision to end part of its zero-fee incentive scheme for bitcoin trades.
Bitcoin Beats Nasdaq Index and Gold
After closing the past year trading below ,000, bitcoin staged a comeback that saw it close the first quarter (Q1) of 2023 trading above ,000. With this performance, bitcoin, which eventually went past the ,000 level, has outperformed major asset classes including the Nasdaq index and gold, data from the latest Coingecko crypto industry report has shown.
As shown in the report, bitcoin’s quarter-on-quarter (QoQ) growth of 72.4% makes it the best-performing asset during the period. The Nasdaq index and gold were the second and third-best performers with gains of 15.7% and 8.4%, respectively.
Although bitcoin and the entire crypto market’s recovery are known to have begun sometime in January, according to the report, the U.S. banking crisis might be the primary reason why interest in this asset class has surged.
“Trading volume saw an upswing in January 2023, when the market started rallying. It then spiked momentarily in early March due to increased volatility from the banking crisis, before tapering off in late March, when Binance removed part of their zero-fee trading incentives for BTC,” the Coingecko report said.
Stablecoins Lose Ground in Q1
With respect to stablecoins, the report said the market capitalization of this asset class had dropped by 4.5% or .5 billion “due to the shutdown of Binance USD (BUSD) by Paxos and the brief USD Coin (USDC) de-pegging event during SVB’s collapse.”
Meanwhile, the Coingecko report also reveals that the market capitalization of decentralized finance (defi) surged by 65.2% to end the quarter at .6 billion. Liquid staking governance tokens saw their value grow by 210.9% in Q1, thus making them “the 3rd largest category in defi.”
During the same period, trading volumes on non-fungible token (NFT) platforms also went up from .1 billion in the last quarter of 2022, to .5 billion. According to the report, a large share of these volumes came from Blur, which recently took Opensea’s place as the most dominant NFT platform.
What are your thoughts on this story? Let us know what you think in the comments section below.