Following Vaneck’s application with the U.S. Securities and Exchange Commission (SEC) to launch a solana-based exchange-traded fund (ETF), solana has appreciated 8.1% against the U.S. dollar. Apart from bitcoin, ethereum, and stablecoins, solana now boasts the highest daily trade volume among all other crypto assets on market aggregation platforms. Vaneck’s ETF Filing Catalyzes Increase in […]
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Grayscale’s GBTC and Vaneck’s HODL Report Outflows as US Bitcoin ETFs Gain $50M
On Friday, U.S. spot bitcoin exchange-traded funds experienced their 14th consecutive day of inflows, totaling around million. Leading the inflows once more was Blackrock’s IBIT, while Grayscale’s GBTC saw outflows. .7B in Trade Volume and M in Inflows During Friday’s Bitcoin ETF Trading Sessions Approximately million in inflows were reported during Friday’s spot […]
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Bitcoin Spot ETF: VanEck’s Head Of Research Says BlackRock Has $2 Billion In Investments Lined Up
VanEck’s Head of Research, Matthew Sigel, recently hinted that the Spot Bitcoin ETF of the world’s asset manager, BlackRock, could see a record-breaking amount of inflows upon launch. This comes as an approval order by the Securities and Exchange Commission (SEC) looks imminent.
BlackRock’s Bitcoin ETF Could See Inflows Of Over Billion
Sigel mentioned on an X (formerly Twitter) space hosted by the media platform, The Block, that he heard from a reliable source that BlackRock has “more than billion lined up in week one.”
This investment capital is said to be coming from existing Bitcoin holders who are looking to increase their exposure to the flagship cryptocurrency.
He quickly added that he couldn’t be 100% certain of this information. However, it is a possibility, considering that issuers would be looking to get investors that can inject huge sums into their respective ETFs.
Sigel went on to highlight how significant it could be if BlacRock’s ETF indeed saw billion of inflows in the first week of trading, saying that it would “blow away” their initial projections. They estimate that the Spot Bitcoin ETFs could see .5 billion of inflows in the first quarter of trading. Meanwhile, they believe the market could grow to billion in the next two years.
Not Out Of Place For BlackRock
Commenting on the possibility of BlackRock seeing this significant amount of inflows, Bloomberg analyst Eric Balchunas noted that such an occurrence isn’t unusual for the world’s largest asset manager. According to him, BlackRock is known for lining up and injecting big cash into new ETFs on the first day of trading. That way, it registers as volume for them.
Balchunas further noted that BlackRock’s Bitcoin ETF, seeing billion of inflows, would shatter all records relating to first-day and week volume for an ETF. Interestingly, BlackRock already holds the record for the most successful ETF launch going by the amount of inflows recorded on day one.
The world’s asset manager further dominates the top 10 list of most successful ETF launches. Balchunas, however, clarified that those inflows were mainly lined up cash and not organic, as they were readily available before the ETF launched. He also mentioned that he got a second source to confirm Sigel’s claims that BlackRock has a big day one lined up.
Meanwhile, the Bloomberg analyst provided an update on when the approval order from the SEC was likely to come. Citing multiple sources, he stated that the SEC is lining up all issuers for a potential launch on January 11.
Kiyosaki on Deadly Economic Gamble, Vaneck’s Crypto Predictions — Week in Review
Robert Kiyosaki has said that the biggest crash is coming and warned people against playing “Russian Roulette” with their lives. Even still, asset management firm Vaneck has done some safe gambling of its own, revealing 15 crypto predictions for 2024. All this and more just below, in the latest Bitcoin.com News Week in Review.
Robert Kiyosaki Doubles Down on Biggest Crash Prediction — ‘No Time to Play Russian Roulette With Your Life’
Rich Dad Poor Dad author Robert Kiyosaki has warned that the biggest crash in history may be starting. Emphasizing that the U.S. banking system is bankrupt, he warned that the S&P 500 will be next to collapse, which will “toast millions” of U.S. retirement plans. There’s “no time to play Russian Roulette with your life,” he stressed.
Vaneck Unveils 15 Crypto Predictions: Spot Bitcoin ETF Approvals, US Recession, BTC’s Historic Rally
Asset management firm Vaneck has unveiled its 15 crypto predictions for 2024. They include the U.S. recession’s arrival, the approvals of spot bitcoin exchange-traded funds (ETFs) by the Securities and Exchange Commission (SEC), and bitcoin’s historic rally, “potentially spurred by political events and regulatory shifts following a U.S. presidential election.”
Galaxy Digital CEO Mike Novogratz Says He Was ‘Dead Wrong’ About XRP and Ripple
Galaxy Digital founder and CEO Mike Novogratz has admitted that his past perception of XRP and Ripple was “dead wrong.” Novogratz now sees Ripple as an institution and the XRP army as a “real” organization that cares about the ecosystem and the coin. The billionaire believes that the current U.S. government’s unmatched spending has spurred the economy, but admitted there would be a price to pay down the road.
US Presidential Candidates Tackle Crypto Issues at Groundbreaking Forum
Highlighting the increasing significance of digital assets in American politics, several presidential candidates from the Republican and Democratic parties came together at the Crypto Presidential Forum to discuss their visions for the future of cryptocurrency in the U.S.
Be sure to let us know what you think of this week’s top stories in the comments section below.
VanEck’s Bitcoin Prediction Stands At $10K-$12K By Q1 2023
VanEck is one of a handful of companies that continues to fight for the approval of a Bitcoin Spot ETF. The U.S. investment management firm received a resounding rejection from the U.S. Securities and Exchange Commission in November 2021 after a three-year battle.
Just six months later, on June 24 of this year, VanEck reapplied for approval of a physically-backed Bitcoin ETF all over again. The SEC’s decision is currently pending.
Despite this support, the investment firm has made a bearish prediction for BTC into the first quarter of 2023. Matthew Sigel, head of digital asset research at VanEck, shared this assessment in a recent media presentation.
BTC Price Could Drop To ,000
“Looking ahead, Bitcoin could test ,000-,000 as Bitcoin miner bankruptcies increase due to the drop in Bitcoin value and increasing electricity costs,” VanEck predicts.
The investment firm believes that many miners will be forced to restructure or merge in order to find capital during difficult times. As Siegel explained, the mining industry is in a tremendous stress situation.
We have an index which tracks the publicly traded companies in this sector; the median market cap is now below 0 million, and every one of these companies is burning cash, trading well below book value.
In recent months, BTC has traded like a risk asset, Siegel said. What is surprising to the company, however, is its sensitivity to higher interest rates.
VanEck sees one reason for this in policy responses to inflation in developed countries, which have capped energy prices and expanded sanctions against Russia. This has been a difficult proposition for Bitcoin mining, Sigel elaborated.
Still, VanEck is optimistic that the BTC price could rebound to ,000 in the second half of 2023 as inflation declines. Looking further, the investment firm points to the halving in 2024, an event that traditionally drives up BTC’s value.
Bitcoin Miner Capitulation In Full Swing
As NewsBTC reported, the second Bitcoin miner capitulation within one cycle has already started two weeks ago. Charles Edwards of Capriole Investments reported on November 28 that the hash ribbons had confirmed the start of the capitulation.
Glassnode’s latest “Bitcoin miner net position change” data shows that miners have sold aggressively in the last two weeks, to an extent that historically has only been higher in early 2021.
Historically, miner capitulation has lasted an average of 48 days, so an end to the selling pressure could be foreseeable by mid-January 2023. However, this is not in line with VanEck’s Bitcoin prediction, which foresees a longer bear market.
Despite the fact that miners have clearly given up their BTC holdings in the last week, the interesting thing about this currently is that the price of BTC is showing an upward trend.
At press time, BTC was trading at ,882, with today’s FOMC meeting starting at 14:30 ET very likely to have a significant impact on price action in the coming weeks.
VanEck’s Bitcoin Product is Damn Bullish for BTC – Here’s Why
The price of bitcoin surged by ,000 on April 2, a 23 percent jump that many believe was sparked by an article published on April Fool’s Day. Its title was “SEC drops the Bomb: Approves Bitcoin ETFs.”
ETFs, a backronym for Exchange-Traded Funds, have lately caught up with the imagination of cryptocurrency investors. To them, mingling a non-sovereign asset like bitcoin with an institutional product such as an ETF creates a best-of-both-world scenario for an emerging cryptocurrency market. What happened a day after the April Fool’s day, to many, was a sneak preview of a big bull move.
Nevertheless, regulatory roadblocks have kept financial institutions from launching an ETF. The US Securities and Exchange Commission (SEC) expressed its concerns about the underlying spot market, which provides the basis of bitcoin price, based on which an ETF gets settled and cleared. The securities regulator borrows its worries from cases involving price manipulation in the bitcoin market, driven by the so-called whales.
Shortcut to Bitcoin Adoption
VanEck, one of the firms whose Bitcoin ETF is long-pending before the SEC, announced on Tuesday that it is going to launch a so-called ETF-like product for institutions.
The New York-based investment management firm took the route of 144A, a rule that limits the SEC’s influence on trades of privately placed securities. While an ETF could have been a go-to passive investment vehicle retail investors, bitcoin shares backed by 144A are specifically for qualified institutional buyers.
Ed Lopez, VanEck’s head of ETF product, told Bloomberg that they merely removed the necessity of offering BTC shares to retail investors. He, nevertheless, said that VanEck is not giving up on its Bitcoin ETF dreams and the process of persuading the SEC would go on parallelly. Excerpts:
“We are taking advantage of an opportunity to offer shares of the trust to qualified institutional buyers. These are the largest of the large institutional buyers that manage more than 0 million in total assets.”
Better than Grayscale
Analysts were quick to call VanEck’s latest “limited Bitcoin ETF” a ripoff of a similar product offered by Grayscale. The New York-based firm, known for bringing about 0 million to cryptos against an otherwise bearish sentiment, offers a Bitcoin Investment Trust under the ticker of GBTC.
This is misleading. The VanEck SolidX Bitcoin Trust is *not* an ETF. It looks exactly like the Grayscale Bitcoin Trust, which was launched almost six years ago. Calling this a "limited ETF" is a cute marketing strategy, but that's about it. Calling it a full ETF is just wrong. https://t.co/e5kyeAE4gC
— Jake Chervinsky (@jchervinsky) September 3, 2019
Nevertheless, Lopez claimed that VanEck’s trust performed differently than that of GBTC. He clarified that Grayscale offered services to qualified and high-net-worth individuals. VanEck, on the other hand, is for qualified institutional buyers — which may include business development companies, corporations, ETFs, hedge funds, insurance companies, mutual funds, and registered investment advisers.
Lopez added that VanEck’s trust features an open-end creation/redemption facility that would allow investors to trade bitcoin close to the real market price. GBTC, on the other hand, often trades with a hefty premium on bitcoin prices.
“If the trading activity develops, the open-end creation/redemption should be much tighter,” Lopez added.
No. It's like GBTC but with continuous creation/redemption, no lockup, and only available to QIBs (>100M aum). It is not an ETF, trades OTC not an exchange. Their file covers this in detail.
— Alex Krüger (@krugermacro) September 4, 2019
Bullish for Bitcoin
The developments taking place in a broader bitcoin sphere is having small investors speculate significant returns. The sentiment suggests that BTC traders believe that investor appetite for the cryptocurrency is rising against a gloomy macroeconomic outlook. Not to mention, the price of BTC surged by up to 0 around the VanEck’s bitcoin trust launch, suggesting that traders are digesting the ‘bitcoin-is-digital-gold‘ narrative whole-heartedly.
VanEck SolidX Bitcoin Trust to be offered to institutions such as hedge funds and banks, but not to retail investors.
This move is to show SEC that this limited version will act as a proof that a bitcoin ETF can work.
— Welson
(@CryptoWelson) September 3, 2019
Bakkt, an Intercontinental Exchange-backed digital assets platform, will also launch its physically-settled daily and monthly bitcoin futures on September 23. Analysts believe it would expose bitcoin before more institutional buyers as they go looking for safe-havens against risky assets.
If this #bitcoin ETF narrative is true, in addition to @Bakkt coming out on the 23rd of Septemeber – you can say goodbye to your altcoin bags
$BTC dominance will hit 500% pic.twitter.com/tqcESuPZMJ
— TEDDY
(@teddycleps) September 3, 2019
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Crypto Lawyer: Don’t Get (Too) Hyped About VanEck’s Bitcoin ETF
Over the past few weeks, many in the crypto industry have begun to expect a Bitcoin exchange-traded fund (ETF). Don’t ask us why, but in a hive mind-esque fashion, hundreds on Twitter have begun to call for the regulatory approval of such a vehicle, which has the potential to catapult the space to new heights.
Related Reading: Analyst: Crypto Markets May Be Gearing Up for Massive Surge as Bitcoin Continues Climbing
One lawyer, who specializes in cryptocurrency and blockchain, however, is telling us not to get our hopes up. Jake Chervinsky, as the lawyer formerly of Kobre & Kim is known, broke down his thoughts on the matter in a 17-part Twitter thread, which covered the complexities and nuances of this pertinent topic.
Bitcoin ETF Hype Might Be Unwarranted
For those who missed the memo, last week, the U.S. Securities and Exchange Commission (SEC) dealt a blow to the cryptocurrency space amid the tumultuous price action. A document revealed that the financial regulator delayed its verdict on a Bitcoin ETF application from Bitwise Asset Management, exercising its right to extend a self-imposed deadline by an additional 45 days.
Although this was expected, what was odd was that the regulator didn’t comment a similar proposal from VanEck and SolidX, which was on the chopping block alongside Bitwise’s application. This, as aforementioned, has led to a flurry of rumors about the potential approval of the product, which has been an important subject in 2019. Because why would the SEC delay its verdict on Bitwise’s vehicle, but not comment on a seemingly similar product simultaneously?
Chervinsky says this is semantics. In the thread, he notes that postulating that this staggered issuance of verdicts is positive is nonsensical, and goes on to say that considering the context, “denial is far more likely than approval.”
0/ This is no time for ETF hopium. If the SEC doesn't delay the VanEck bitcoin ETF proposal, the most likely result is rejection, not approval.
The SEC delayed Bitwise last week, but still hasn't made a decision on VanEck. Here's why that's a bad sign for ETF bulls.
Thread
— Jake Chervinsky (@jchervinsky) May 19, 2019
He explains that he would be shocked if the SEC approved an industry first product without taking all the time it has at its disposal. With the final, final deadline currently being set to October 18th, “an early decision likely means denial.” Chervinsky goes on to flat out say that the cryptocurrency market isn’t ready for a regulated product, looking to the Bitfinex and Tether debacle, coupled with the Bitstamp flash crash.
As CryptoSlate’s Mitchell Moos points out, there are clear gaps in securing Bitcoin against market manipulation, hacks, faulty price discovery, and illiquid crypto markets.
Here's why the SEC hasn't approved #bitcoin ETFs:
Manipulation: Prove that $BTC isn't susceptible to fuqery.
Custody: How will you not get rekt by hacking?
Valuation: How does an ETF deal with forks/airdrops?
Liquidity: is there enough trading to satisfy redemptions?
— Mitchell Moos (@MitchellMoos) May 14, 2019
This may sound irrelevant, especially considering that the market shook off the Tether fracas and that BTC markets may be more mature than people realize, but Chervisnky notes that there is a nail in the coffin for the VanEck proposal. He explains that Bitwise document filed last week “basically forecloses early approval”, touching on the wording used and the issues brought up time and time again.
Thus, he concluded that he sees a 0.1% chance that approval is likely. Ouch.
A Silver Lining?
While Chervinsky’s rationale is sound, especially considering that it’s his job to analyze such issues, some are still sure that an ETF for Bitcoin is well on its way. Just look to the rumors about the SEC’s Hester Pierce, who recently appeared at Consensus 2019 in New York to talk about why she wants the cryptocurrency ecosystem to gain access to such a product.
Pierce is expected to speak at the ETFs Global Markets Roundtable on the date of the VanEck deadline. Although it isn’t clear what she will talk about, her status as the motherly figure in the space and as an advocate for new (financial) technologies has led some to postulate that she will discuss cryptocurrency, specifically to speak on the (potential) approval of the VanEck vehicle. This, of course, sounds a bit too “hopium”-filled, but it isn’t out of the realm of possibility.
But in the end, do we even need a crypto-backed ETF? Let’s assume that an ETF never gets the seal of approval that many are begging for. Will cryptocurrency as a whole then fail?
The answer: no. Many have come to the conclusion that an institutional-centric ETF, like VanEck’s and its ilk, isn’t as important as it once was. This is because there now exists other onramps and infrastructural plays that arguably have more reach, like Fidelity Investments’ custody and trade execution offering and Bakkt’s soon-to-launch futures contract, the latter of which is arguably just as good as an ETF.
Featured Image from Shutterstock
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Why VanEck’s Bitcoin ETF Withdrawal Was Actually Good for Crypto Industry
Bitcoin fell by more than 80% in the past twelve months. The overly impressive bull run of 2017, which led the digital currency value to the peak of ,000, followed a whole bearish year whereby the price crashed to lows near ,000. Lack of institutional investors and strict regulations, analysts believed, was one of the primary reasons behind the bitcoin crash.
No ETF in Q1 2019
Bulls hoped 2019 to be a year of bitcoin correction when some of the biggest financial companies announced products for its market. Fidelity, a .5 trillion worth asset management firm, for instance, launched bitcoin custodian and trading services. Goldman Sachs, a banking giant, also confirmed that it would begin bitcoin futures trading.
But exchange-traded funds remained to be the most exciting bitcoin product for bulls. Analysts believed that the launch of a regulated Bitcoin ETF would attract billions of dollars in investments. Traders expected that the Securities and Exchange Commission (SEC), the US securities regulator, would approve the world’s first Bitcoin ETF by February 28. The sentiment allowed Bitcoin price to float above its newfound bottom above ,000.
But, in a surprising turn of events, VanEck, the firm that had sought SEC’s approval to trade Bitcoin ETF on the CBOE exchange, withdrew its application on Wednesday.
US Govt Shutdown Or?
According to VanEck, it is the ongoing partial government shutdown in the US that led them to withdraw their Bitcoin ETF filing. SEC had already delayed its decision on the VanEck’s filing twice in 2018. Before that, the commission had rejected nine ETF applications citing concerns related to Bitcoin market manipulation. But now, with 90% of its staff furloughed, the commission had more reasons to either delay or reject the VanEck’s ETF filing.
“The SEC is affected by the shutdown… we were engaged in discussions with the SEC about the bitcoin-related issues, custody, market manipulation, prices, and that had to stop. And so, instead of trying to slip through or something, we just had the application pulled and we will re-file and re-engage in the discussions when the SEC gets going again,” Jan van Eck, the chief executive of VanEck, told CNBC.
Jake Chervinsky, a crypto believer and a securities laws expert in the US government, believed that VanEck had more reasons to withdraw their Bitcoin ETF application. He said that the US firm expected that SEC would reject their filing. And, it didn’t want any more bad publicity regarding their crypto product.
CBOE has withdrawn the VanEck/SolidX bitcoin ETF proposal (https://t.co/812Ym7U7Hh).
They haven't given a reason yet, but withdrawal implies that they expected denial & didn't want another SEC order setting bad precedent for the future.
There will be no bitcoin ETF in Q1 2019.
— Jake Chervinsky (@jchervinsky) January 23, 2019
Delay is Better than Rejection
Chervinsky’s statements draw inspirations from the SEC’s earlier concerns about the bitcoin spot market. The regulator had clarified that it would not approve a Bitcoin ETF unless the applicant ensures zero price manipulation in bitcoin’s underlying retail markets.
“This proposal had a very slim chance of success,” said Mati Greenspan, senior market analyst at eToro. “SEC Chairman Jay Clayton has been stressing that the bitcoin market is not yet mature enough for an ETF.”
While the government shutdown put more pressure on the Bitcoin ETF process, VanEck took the correct decision by deciding to refile its application in the future. The firm must have realized how it couldn’t convince the regulator before the deadline. The shutdown, as it seems, gave VanEck a perfect excuse to voluntarily delay its ETF launch.
At least it convinced retail traders, which didn’t react to the ETF withdrawal news, despite its vital significance to the Bitcoin trade market. The BTC/USD price action, after the time of the announcement, continued to trend between ,500 near ,600.
It proved that the investors remained hopeful for a Bitcoin ETF product this year, if not in Q1 2019. Had it been an outright rejection, the market could have suffered.
Now, VanEck expects to come back with a more prepared application. While the firm takes its time, Bitcoin market has proven that it is not dependent on centralized authorities to pursue its trends.
“The market’s lackadaisical response to this news is a clear sign that investors are starting to understand: the crypto market is not dependent on any government or financial institution and no single product or service has the power to make or break bitcoin,” Greenspan said in an email.
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U.S. SEC Delays Decision on VanEck’s Bitcoin ETF Until February 2019
n nn nn The U.S. Securities and Exchange Commission SEC has postponed its decision to approve or disapprove the VanEck/SolidX bitcoin exchange-traded fund ETF. Per an official document published by the agency, the new deadline to review the VanEck proposal has been shifted to February 27, 2019, which the regulator claims would afford it the time needed to review the potential rule change further.The SEC stipulates that the commission must either approve or disappr
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VanEck’s Chief Strategist Eyes Multi-Billion Dollar Investment in Bitcoin ETF
The launch of the first Bitcoin exchange-traded fund (ETF) could witness the space attracting as little as a few billion dollars, predicted Gabor Gurbacs.
The director of Digital Assets Strategy at VanEck made the bullish prediction during an interview with CNBC Crypto Trader hosted by Ran Neuner, while explaining the possible outcomes from a successful Bitcoin ETF launch. He acknowledged that there would be a likelihood of institutional dollars coming into the Bitcoin industry via securities, mainly because ETFs will be better prepared to maximize investor protection and minimize counterparty risks.
“Right now, 90 to 95 percent of the digital assets space is retail. So people invest via trading platforms that offer low securities and safeties. Investors are not used to it,” Gurbacs explained.
VanEck Has the Best Chance
The US Securities and Exchange Commission (SEC) has rejected a total of 9 Bitcoin ETF applications till date citing investor protection. Only the ETF application filed by VanEck-SolidX duo has been allowed for a review, the response to which is likely to arrive by December 29 this year or February 1 the next.
Observers believe that VanEck, an experienced investment management firm with a longstanding professional relationship with the US regulators, has taken care of all the concerns presented by the SEC. It has led speculators to believe that investors will jump at the opportunities to invest in full-insured physical Bitcoin contracts, driving the market cap to its all-time high.
Gurbacs said that the new safety around the bitcoin financial instruments would bring it more in line with conventional ETFs. A Gold ETF, for instance, has the same security covers that would be coated on the upcoming Bitcoin ETF at VanEck. Given that the SEC has approved the former already, the same can be true for the latter as well.
“Our Gold ETFs are already in a few billion dollars range,” he added. “There are Gold ETFs in billion range as well. I wouldn’t be surprised if a Bitcoin ETF gets in a few billion dollars range.”
Market Manipulation
The market manipulation of the underlying Bitcoin spot market has been one of the major catalysts behind the SEC’S ETF rejections. Gurbacs cleared that every other market in present is seeing some level of manipulation, citing a JP Morgan trader who was manipulating the commodity and precious metal markets for seven years. Moreover, the Vaneck strategist cleared that the SEC had no jurisdiction to regulate spot markets; it lies with the Commodity Futures Trading Commission (CFTC).
Adding further, Gurbacs explained that they have introduced institutional-grade security measures, starting with immutable pricing sources coupled with market standard tools that would reduce manipulation.
“If there is market manipulation, there’s a concern. We’ve done everything we can,” he said.
Observers believe that VanEck, an experienced investment management firm with a longstanding professional relationship with the SEC, has taken care of all the concerns presented by the US securities regulator. The ETF review is now expected to go through the regulatory process without a dent, eventually leading to a launch on March 1 next year.
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