Blockchain analytics firm Chainalysis has found that law enforcement finds cryptocurrency relevant to many investigations and holds positive overall views. The firm also notes the growing adoption of cryptocurrency and its increased criminal exploitation, including intellectual property theft and drug trafficking. Despite the availability of various tools, many respondents are dissatisfied with current resources, highlighting […]
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El Salvador Views Bitcoin as a Tool to Liberate the Nation From Fiat Currencies
Felix Ulloa, Vice-President of El Salvador, stated that the government has considered de-dollarizing the country and returning to its national currency, the colon. However, he said that it would be too costly. For Ulloa, bitcoin presents an opportunity to liberate the country from central banks and fiat currency. El Salvador’s Vice-President Felix Ulloa: Bitcoin Offers […]
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Vanguard Says No to Bitcoin ETFs — Views Crypto as ‘Immature Asset Class’ With ‘No Inherent Economic Value’
Financial giant Vanguard has explained why the firm does not make spot bitcoin exchange-traded funds (ETFs) available on its trading platform. A Vanguard executive stressed that cryptocurrency is “an immature asset class that has little history, no inherent economic value, no cash flow, and can create havoc within a portfolio.”
Vanguard Explains Why It Disallows Spot Bitcoin ETFs
Vanguard published a blog post titled “No Bitcoin ETFs at Vanguard? Here’s why” on Jan. 24, explaining the firm’s stance on cryptocurrency and why it does not allow clients to trade the newly approved spot bitcoin exchange-traded funds (ETFs). Vanguard serves more than 50 million investors worldwide as of Dec. 31, 2023. The firm manages around trillion globally.
Following the approval of 11 spot bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC) earlier this month, Vanguard has drawn attention for disallowing its clients to trade the newly launched products. The company also has no plans to launch its own spot bitcoin ETFs.
Janel Jackson, Vanguard’s global head of ETF Capital Markets and Broker and Index Relations, explained in the blog post why her firm is not offering spot crypto ETFs on its brokerage platform. “In Vanguard’s view, crypto is more of a speculation than an investment. This is at the root of our decision to not offer crypto products, whether our own or others,” the executive described, emphasizing:
While crypto has been classified as a commodity, it’s an immature asset class that has little history, no inherent economic value, no cash flow, and can create havoc within a portfolio.
“With equities, you own a share of a company that produces goods or services, and many also pay dividends. With bonds, you get a stream of interest payments. Commodities are real assets that meet consumption needs, have inflation-hedging properties, and can play a role in certain portfolios,” she noted.
Nonetheless, she expressed Vanguard’s interest in blockchain technology, stating: “We do have a lot of interest in blockchain, the technology behind cryptocurrencies. We believe its application to a number of other uses besides crypto will make capital markets more efficient, and we’ve been actively involved in research to use blockchain technology.”
Regarding whether Vanguard is planning to launch its own spot crypto ETFs, Jackson said:
Given the current state of crypto as an asset class, Vanguard does not have plans to launch its own bitcoin ETF or any crypto-related products.
“When deciding what investment products to offer, we consider a range of factors, including whether we believe they have enduring investment merit and meet our clients’ needs,” she clarified. “While the discussion about bitcoin and cryptocurrencies, in general, has increased recently, we do not currently believe that there is an appropriate role for them to play in long-term portfolios. A rigorous process guides every Vanguard product launch.”
What do you think about Vanguard’s explanation regarding spot bitcoin ETFs? Let us know in the comments section below.
Report of SEC’s Spot Bitcoin ETF Advice Fuels Hope for Approval — Crypto Industry Views It as ‘Real Progress’
The Securities and Exchange Commission (SEC) has reportedly provided specific guidance to exchanges seeking to list and trade spot bitcoin exchange-traded funds (ETFs) on what they should do next. “This is real progress,” said one crypto exchange insider. “The cash vs in-kind debate looks to be finding clarity.”
SEC’s Advice Regarding Spot Bitcoin ETFs
Optimism for spot bitcoin exchange-traded fund (ETF) approval by the U.S. Securities and Exchange Commission (SEC) surged again on Friday after a report of the SEC engaging with exchanges to provide guidance on spot bitcoin ETF applications emerged.
Bloomberg ETF analyst Eric Balchunas shared on social media platform X that he is hearing chatter suggesting that the SEC’s Division of Trading and Markets engaged in discussions with exchanges this week, advising them to use the cash creation method, instead of the in-kind method, for spot bitcoin ETFs. Moreover, the securities regulator reportedly asked exchanges to file amendments to reflect this change in the next couple of weeks. Balchunas noted that this is a good sign.
ETF units can be created in-kind or in cash. In cash creation, authorized participants provide cash to the ETF issuer in exchange for new ETF units.
The Bloomberg ETF analyst noted that “Cash creates makes sense” in his opinion because broker-dealers “can’t deal in bitcoin so doing cash creates puts onus on issuers to transact in bitcoin and keeps broker-dealers from having to use unregistered subsidiaries or third party firms” to deal with BTC. He added that it’s “Less limitations for them overall.”
Balchunas continued: “Only 2-3 filers had planned cash creates, the rest wanted to do in-kind. So [they] may have to adjust or risk delay.” Emphasizing that this development “doesn’t change our 90% odds up or down” of spot bitcoin ETF approval, he said it is a “good sign” that the approval process is progressing and the SEC “has a path forward in the plumbing that they are comfortable with.”
Many people in the crypto space view the SEC’s advice as positive. Marshall Beard, Chief Strategy Officer at crypto exchange Gemini, commented:
This is real progress. The cash vs in-kind debate looks to be finding clarity. For reference as well, the Canadian spot ETFs have been using the cash create model for years now.
However, some argue that in-kind creates are much better than cash creates. Gabor Gurbacs, strategy advisor at Vaneck, stressed that the SEC’s cash creates advice is “a sign that regulators don’t/unwilling [to] understand and accept the best aspects of ETFs and bitcoin.” He emphasized: “In-kind creates are simply much more efficient. Anyone managing an ETF knows this.”
Balchunas further noted: “My point on cash creates was that I could see the SEC’s POV [point of view] for wanting it but from investor’s POV in-kind arguably better in terms of the spread and taxation.” He concluded that we could see some issuers pushing for the in-kind process, adding that they may even succeed in engagement with the SEC staff.
SEC Chairman Gary Gensler recently stated that the securities regulator is considering eight to 10 spot bitcoin ETF applications. A number of people expect the SEC to approve multiple spot bitcoin ETFs at once early next year.
What do you think about the SEC advising exchanges to use cash creates for spot bitcoin ETFs? Let us know in the comments section below.
Dollar vs. Bitcoin Clash: Experts Flex Opposing Views; SBF Trial Update — Week in Review
Berkshire Hathaway’s Charlie Munger says most crypto is going to zero, while a Jefferies analyst says bitcoin is actually set to thrive in the case of a dollar collapse. Meanwhile, American economist Jeffrey Sachs says central bank digital currencies (CBDCs) are the real money of the near future. Get caught up on all this as well as the latest updates from the Sam Bankman-Fried trial just below, in the Bitcoin.com News Week in Review.
Analyst Warns of US Dollar Collapse, Predicts Bitcoin Owners to Benefit
Global financial services firm Jefferies has warned of “the collapse of the U.S.-dollar paper standard to the benefit of both gold bullion owners and also owners of bitcoin.” An analyst from the firm explained that the Federal Reserve, and other G7 central banks, “will not be able to exit from unconventional monetary policy in a benign manner and will ultimately remain committed to ongoing central bank balance-sheet expansion in one form or another.”
Berkshire Vice Chair Charlie Munger Warns Most Crypto Investments Will Go to Zero
Warren Buffett’s right-hand man and the vice chairman of Berkshire Hathaway, Charlie Munger, has expressed his belief that the majority of cryptocurrency investments will become worthless. Regarding bitcoin, the executive opined: “That was the stupidest investment I ever saw.”
American Economist Jeffrey Sachs Heralds End of Dollar Hegemony: ‘Central Bank Digital Currencies Will Become the Basis of Payments’
Jeffrey Sachs, an American economist and best-selling author, has stated that the end of the dollar’s hegemony is near and that central bank digital currencies (CBDCs) will become the basis of cross-border settlements. For Sachs, the abuse of the U.S. dollar as a geopolitical weapon is one of the factors that will contribute to its demise in the coming decade.
Inside Caroline Ellison’s Explosive Testimony — Former Alameda CEO Accuses SBF of Directing Fraud at FTX
In bombshell testimony on Tuesday, Caroline Ellison, former CEO of Alameda Research, accused Sam Bankman-Fried of directing herself and others to commit fraud under his leadership at FTX and Alameda. Taking the stand in a red dress, Ellison stated “Alameda took several billions of dollars from FTX customers and used it for investments.”
Do you think bitcoin will thrive if the USD collapses? Will CBDCs bring anything other than more invasive financial surveillance? Let us know your thoughts in the comments below.
Can Ethereum Tally Spring Highs After Correction? Top Analyst Shares His Views
Ethereum (ETH) is facing a challenging period as crypto trader Bluntz predicts further bearish trends before a potential reversal. This uncertainty in Ethereum’s price has sparked discussions in the crypto community, especially in light of recent whale activity.
Crypto analyst Bluntz, known for his insightful market predictions, has raised concerns about Ethereum’s short-term performance. He applies the Elliott Wave theory, a complex technical analysis method, to understand market sentiment and predict future price movements.
The theory suggests that market trends follow a wave-like pattern, reflecting the ebb and flow of investor psychology. Bluntz believes that ETH will continue to experience a bearish trend in the coming weeks, possibly reaching around ,440 before wrapping up its correction and rise.
ETH Price: Decoding The Market Psychology
In his recent social media update, Bluntz shared a chart indicating the potential for Ethereum to rally to ,500 following the expected reversal. This projection highlights the intricacies of Elliott Wave theory, where market sentiment can shift in waves, often influencing cryptocurrency prices.
eth now right back at the lows flirting with a breakdown.
looking for one more low, around 40 will be a great spot to knifecatch imo if the markets kind enough to give it.$ETH pic.twitter.com/FroPhSL9wk
— Bluntz (@Bluntz_Capital) September 11, 2023
Meanwhile, a significant whale movement in the Ethereum market has left many wondering about its implications. According to WhaleAlert, a whopping 21,938 ETH, equivalent to approximately .78 million, found its way into Coinbase’s wallets. Shortly thereafter, another 32,500 ETH, valued at around .3 million, was deposited into OKX, a prominent cryptocurrency exchange.
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32,500 #ETH (51,334,467 USD) transferred from unknown wallet to #OKExhttps://t.co/WiRrtHHOy7
— Whale Alert (@whale_alert) September 12, 2023
Whale Moves Shake The Ethereum Community
Such large-scale transactions by cryptocurrency whales can send shockwaves through the market, potentially affecting supply and demand dynamics. The sudden influx of ETH into these exchanges raises questions about the intentions of these deep-pocketed investors. Are they positioning themselves for a long-term hold, or do they anticipate price movements that could favor their trading strategies?
Per CoinGecko, ETH is currently trading at ,596, with a 24-hour gain of 0.7% and a seven-day loss of 2.1%. These price fluctuations underscore the ongoing volatility in the crypto market and the need for investors to stay informed about the latest developments.
Keeping An Eye On Ether’s Movements
Ethereum’s short-term future remains uncertain as it grapples with bearish trends, as predicted by crypto analyst Bluntz. The application of Elliott Wave theory offers a unique perspective on market sentiment. Additionally, the recent whale movements involving significant amounts of ETH add an element of intrigue and uncertainty to Ethereum’s price trajectory.
Crypto enthusiasts and investors will be closely watching these developments, as they may provide clues about the future direction of the cryptocurrency market.
(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).
Featured image from DutchReview
House Financial Services Republicans Blast SEC’s Proposed Rule, State Gensler Is Pushing ‘His Own Personal Views Regarding Digital Assets’
Republicans of the House Financial Services Committee have criticized U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler, stating he is using Rule 3b-16 amendments to impose his views on cryptocurrency assets. In a letter sent to the SEC, republicans push back against the new proposed definition of “exchange” and its implications.
Financial Services Committee Republicans Push Back Against SEC’s Proposed Ruleset
Republicans of the House Financial Services Committee are pushing back against the proposed amendments to Rule 3b-16 presented by the U.S. Securities and Exchange Commission (SEC) that expands the definition of “exchange.”
The group, comprising Chair Patrick McHenry and 28 other representatives, sent a letter on June 13 criticizing the implications of the approval of the rule, and its effects on the cryptocurrency market and its operators.
According to these representatives, passing this rule would imply that software protocols and even developers of decentralized financial products would have to register as exchanges with the SEC. This would be detrimental to adoption of the tech in the U.S.
Republican representatives stated:
The proposed rule will stifle innovation and harm digital asset market participants and the U.S. economy more broadly. We urge you to withdraw this proposal as it would effectively shut down development of the digital asset ecosystem and continue to stagnate U.S. technological innovation.
Furthermore, the group of Republicans disagreed with an assertion made in the proposed rule, which states that “it is unlikely that systems trading a large number of
different crypto assets are not trading any crypto assets that are securities.” The letter explains the SEC should not generalize or make “sweeping judgments” in its rulemaking.
SEC Chairman Gary Gensler Said to Be Pushing His Personal Views
The letter goes even further, accusing SEC Chair Gary Gensler of taking advantage of his position to propose rules that fit his perception of cryptocurrency. The letter states:
It is clear that Chair Gensler is using this proposal to push his own personal views regarding digital assets. It appears this proposed rule is an attempt to assert this personal view as official SEC policy without adequate analysis or justification.
Finally, the group accused the SEC of trying to front-run Congress, which is already working on different bills regarding cryptocurrency, with some of them being introduced by representatives part of the committee like Tom Emmer.
Rep. Warren Davidson, who also signed the letter, recently introduced a bill to oust Gary Gensler from his position as chairman of the SEC, titled the “SEC Stabilization Act.“
What do you think about the House Financial Services Committee Republicans’ stance on the SEC’s proposed rule? Tell us in the comments section below.
Kenyan Central Bank Governor Says Stance on Crypto Not Driven by Personal Views
Patrick Njoroge, the outgoing governor of the Kenyan central bank, recently said the bank’s policy on crypto assets is not driven by personal views but is founded on the “wealth of information that is in the central bank.” Njoroge said the Central Bank of Kenya will continue to point out the risks posed by unregulated crypto activity.
Outgoing Governor Says Kenyan Central Bank Has ‘Wealth of Information’
The Central Bank of Kenya (CBK) governor, Patrick Njoroge, recently said the apex bank’s stance towards crypto is not driven by personal views but is informed by the “wealth of information that is in the central bank.” He said while different individuals may have different views about crypto, it is the 57-year-old institution that ultimately determines the country’s crypto policy.
Outgoing CBK governor on Crypto Regulation
“Regulation is Important… If it is well Regulated, things are easier.”~ @njorogep
“we’ve made the point that they provide Significant Risk to our Economy…”
Interestingly, The Outgoing governor is aware of the ‘Disruption’ that… pic.twitter.com/EULy5jxkAg
— CRYPTOCURRENCY KENYA 🇰🇪 (@CryptoHubKE) May 31, 2023
Njoroge, who is set to end his tenure as the CBK’s ninth governor, made remarks after he was asked if he had plans to relay a crypto message to his successor. As has been reported by Bitcoin.com News, the CBK’s outgoing governor has warned Kenyans against trading or investing in cryptocurrencies like BTC.
In one of his several anti-crypto remarks, Njoroge asked Kenyan lawmakers to have him locked up should he ever agree to convert the country’s foreign exchange reserves to bitcoin.
These and other remarks by the CBK’s outgoing governor have, in turn, reportedly seen Njoroge become one of the most loathed BTC critics in Kenya. However, in response to assertions that he has a personal vendetta against crypto assets, the CBK governor claimed that neither he nor any executive at the central bank is in a position to set the bank’s policy towards crypto assets. He added:
There isn’t any sort of personal stake in terms of understanding, etc. The wealth of information is in the central bank. … In terms of passing on knowledge to my eventual successor, I think the answer is the central bank is there and it is really through the central bank, through a well-functioning central bank that that happens as well.
When asked to comment on reports suggesting that the Kenyan government wants to tax crypto transactions, Njoroge said the CBK will continue to highlight the risks posed by unregulated crypto activity.
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What are your thoughts on this story? Let us know what you think in the comments section below.
SEC Chairman Explains Why He Views All Crypto Tokens Other Than Bitcoin as Securities
U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler has detailed why he considers all crypto tokens other than bitcoin as securities. While acknowledging that crypto tokens may have different setups, he stressed that “at the core, these tokens are securities.”
SEC Chair Believes All Crypto Tokens Other Than Bitcoin Are Securities
The chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, explained why he believes all crypto tokens other than bitcoin are securities in an interview published Thursday by New York Magazine’s Intelligencer.
Gensler believes that the securities watchdog has all of the legal tools needed to oversee the crypto sector, the publication conveyed, adding that the SEC boss explained that pretty much every sort of crypto transaction already falls under the SEC’s jurisdiction except spot transactions in bitcoin itself and the actual purchase or sale of goods or services with cryptocurrencies.
The SEC chairman was quoted as saying:
Everything other than bitcoin … you can find a website, you can find a group of entrepreneurs, they might set up their legal entities in a tax haven offshore, they might have a foundation, they might lawyer it up to try to arbitrage and make it hard jurisdictionally or so forth.
“They might drop their tokens overseas at first and contend or pretend that it’s going to take six months before they come back to the U.S.,” Gensler continued, without naming any cryptocurrencies specifically. He emphasized:
But at the core, these tokens are securities because there’s a group in the middle and the public is anticipating profits based on that group.
Following Gensler’s claim that all crypto tokens other than BTC are securities, a number of people took to social media to disagree with the SEC chief. Lawyer Jake Chervinsky tweeted:
Chair Gensler may have prejudged that every digital asset aside from bitcoin is a security, but his opinion is not the law.
“The SEC lacks authority to regulate any of them until and unless it proves its case in court,” Chervinsky emphasized, adding that this must be done “For each asset, every single one, individually, one at a time.” Logan Bolinger, another lawyer, similarly said on Twitter: “In this country, judges — not SEC chairs — ultimately determine what the law means and how it applies. Doesn’t mean his thoughts are irrelevant. They’re just not dispositive.”
What do you think about SEC Chairman Gary Gensler viewing all crypto tokens other than bitcoin as securities? Let us know in the comments section below.
Is This The End Of Bitcoin Price Rally? Top Analysts Share Their Views
Bitcoin has been hovering within the ,000 – ,000 price range without clearly indicating its next direction. This has caused a major debate in the crypto space on whether the bullish season is over.
This is further heightened by the consistent failure to break above the ,000 resistance mark. Despite this, a few analysts are confident that the leading token is facing a temporary price correction.
Bitcoin Price Rally Imminent
Michaël van de Poppe, the founder of the Eight trading firm, believes that Bitcoin could be set for an extended bull run. Explaining his position in a post on Twitter, van de Poppe noted that the Bitcoin market has been consistent with regular price corrections within this bullish season.
He added that as long as Bitcoin remains above ,000, this would be enough to expect a continuation toward ,000. This position is further supported by crypto trading analyst Rekt Capital who believes that Bitcoin is yet to make a significant rally toward the ,000 resistant mark.
Using a chart to represent his analysis, Rekt Capital believes that BTC is holding above the lower high resistance mark of ,000. He noted that if the price stability remains constant, it could be argued that the price of BTC is slowing down.
Related Reading: Bitcoin Decline Ahead? Bearish Crossover Forms In This Metric
For his part, CryptoTony stated that he is in a long bullish position as long as the price of BTC remains above ,400. Thus, he intends to capitalize on the current bearish movement in the short term.
He further added that the touch of the top on the chart is a double top which is to be expected. This indicates that there would not be a permanent rise immediately but a new rejection when trying to surpass the k resistance level.
Major Mining Indicator Also Suggests BTC Bullish Trend
Meanwhile, mining data indicator Puell Multiple points to a strong rise in the bitcoin price indeed coming. Puell Multiple’s indicator stands at 1,041 for the first time since January of last year, according to data from glassnode.
Related Reading: Why Blockchain And Crypto VC Funding Is Down In Q4, According To This Report
The Puell Multiple is calculated by dividing the total value of BTC issued daily by the average value of BTC issued each day during the previous year. When well below 1, it usually points to the lows within a market cycle, while very high indicator levels usually indicate a bullish cycle.
The fact that it has hit a yearly high could signal the beginning of a new bull run that could take BTC to new price levels.
Bitcoin Has Enjoyed A Renaissance In 2023
So far this year, BTC is up more than 50% and has returned to prices not seen for at least six months. At the time of writing, Bitcoin is trading at ,400 with a weekly decline of 6%.
Featured image from Unsplash.com, charts from Tradingview and Twitter