ReportWire

Tag: Bitcoin ETF

  • Valkyrie and ARK 21Shares file Bitcoin ETF registration of securities with SEC

    Valkyrie and ARK 21Shares file Bitcoin ETF registration of securities with SEC

    [ad_1]

    Valkyrie and ARK 21Shares have recently submitted filings for spot Bitcoin ETFs, adding to the growing list of contenders seeking approval from the U.S. Securities and Exchange Commission.

    Valkyrie and ARK 21Shares have filed for 8-A registration of securities for a spot Bitcoin ETF with the SEC on Jan. 4, following the footsteps of Grayscale and VanEck earlier today and Fidelity, who filed yesterday.

    Valkyrie and ARK 21Shares’s official filings today suggest a solid chance of approvals being pushed through imminently as the two companies compete with others for the first spot Bitcoin ETF in the United States.

    The filing comes while the market is buzzing about the potential approval of a U.S. spot Bitcoin ETF. Despite chatter about possible rejections, Valkyrie and ARK 21Shares filings, among others, point to a different story.

    The cryptocurrency industry is hoping for approvals to roll out between Jan. 8 – 10. Big players like Goldman Sachs are already angling for key roles in Grayscale and BlackRock ETFs.

    While nothing is set as of today, the week has shown bullish sentiment around the immediate possibility of a spot Bitcoin ETF approval. SEC meetings with exchanges such as Nasdaq, NYSE, and CBOE add to the optimism, hinting at potential approvals as early as Monday.


    Follow Us on Google News

    [ad_2]

    Bralon Hill

    Source link

  • This is How Bitcoin Can Reach $1 Million in a Year

    This is How Bitcoin Can Reach $1 Million in a Year

    [ad_1]

    In a recent post on social media platform X, cryptocurrency analyst Bit Paine presented a compelling forecast for the value of Bitcoin (BTC) reaching $1 million by January 3, 2025.

    Paine provides an in-depth analysis, highlighting key factors that could drive this significant value increase.

    Analyst Predicts Potential Supply Shock in Bitcoin Market

    Paine’s analysis lies in the forthcoming five years, during which approximately 750,000 new Bitcoins are expected to be mined. Drawing from historical patterns, the analyst estimates that 20-30% of the existing Bitcoin supply will likely become available for sale during the upcoming bull market.

    However, Paine diverges from conventional expectations, positing a more conservative estimate of 10-15% due to several compelling reasons.

    These include the recent emergence from a prolonged bear market, the ascendance of Bitcoin maximalists (“maxi hodlers”), the diminishing significance of “crypto” as a generic asset class (with a reduced inclination to rotate funds into alternative cryptocurrencies or “alts”), and the increasing recognition of Bitcoin as a treasury-class asset.

    Factoring in these considerations, Paine anticipates an additional 2-6 million Bitcoins entering the market, bringing the total supply in circulation to approximately 2.75-6.75 million.

    The catalyst for the projected surge is the anticipated influx of capital into the Bitcoin market. Paine estimates $1-5 trillion of capital is poised to enter the market over the next five years, driven by the increasing accessibility of this asset to institutional and retail investors alike.

    Paine’s analysis aligns with the notion that most gains in the Bitcoin market typically occur within the first year following a halving event characterized by speculative fervor. Subsequently, a more gradual distribution of gains is expected.

    Bitcoin Surges Above $45,000 and Dumps Later

    Bitcoin surged past $45,000 on Tuesday, reaching its highest level since April 2022, as optimism surrounding the potential approval of exchange-traded spot Bitcoin funds fueled the market. The cryptocurrency reached a 21-month peak of $45,922, marking a strong start to the new year.

    Investor attention has been focused on the potential approval of a spot Bitcoin ETF by the U.S. Securities and Exchange Commission (SEC). Such approval is anticipated to open the market to a broader investor base and attract significant investments.

    However, the landscape changed later during the day, as BTC slumped by $3,000. This came amid reports that the US securities regulator might actually reject all spot ETF applications in January, just like it has done countless times in the past.

    SPECIAL OFFER (Sponsored)

    Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).

    [ad_2]

    Wayne Jones

    Source link

  • Fidelity files registration of securities for its Bitcoin ETF with the SEC

    Fidelity files registration of securities for its Bitcoin ETF with the SEC

    [ad_1]

    Fidelity Investments has filed registration of securities with the SEC for its spot Bitcoin ETF. 

    With over $4.5 trillion in assets, the firm has filed Form 8-A with the U.S. Securities and Exchange Commission (SEC) to register its Fidelity Wise Origin Bitcoin Fund. This filing indicates a move to make the fund a publicly traded security, a milestone for Fidelity and the broader acceptance of digital assets in traditional investment portfolios.

    Fidelity’s Form 8-A filing | SEC

    The filing comes at a turbulent time, as the crypto market lost over $540 million in liquidation today due to Matrixport claiming the SEC might reject all ETF applications. However, several journalists and analysts have refuted such claims shortly after. 

    SEC Form 8-A is a critical regulatory requirement for companies intending to list securities on an exchange. This registration underlines Fidelity’s commitment to adhering to regulatory standards, paving the way for its spot Bitcoin exchange-traded fund (ETF) to be offered on a national securities exchange. 

    As specified in the form, the listing on the CBOE BZX Exchange is a clear signal that Fidelity is positioning itself at the forefront of the ETF investment wave. With this registration, Fidelity’s Bitcoin fund is now subject to the rules and oversight designed by the SEC to protect investors and maintain fair markets, underlining the fund’s legitimacy. 


    Follow Us on Google News

    [ad_2]

    Mohammad Shahidullah

    Source link

  • SEC holds urgent meetings with Nasdaq and NYSE to discuss Bitcoin ETFs

    SEC holds urgent meetings with Nasdaq and NYSE to discuss Bitcoin ETFs

    [ad_1]

    The SEC is holding meetings today with major exchanges, including the New York Stock Exchange, Nasdaq, and the Chicago Board Options Exchange (CBOE), regarding spot Bitcoin ETFs. 

    The information was revealed by a Fox Business journalist earlier today, bringing some sense of relief for the wider crypto community after crypto services firm Matrixport reported that the SEC would likely reject all ETF applications in January. This report triggered a major liquidation in today’s market, as the crypto market lost more than $540 million in just four hours. 

    Despite Matrixport’s report of a possible denial, Bloomberg’s analysts have claimed that no substantial evidence pointing towards a rejection of the ETFs has been reported. 

    There was a brief debate on X between Bloomberg analyst Eric Balchunas and Matrixport’s Markus Thielen, who published the potential ‘rejection’ report. Thielen clarified that the report wasn’t based on any comments from SEC insiders or the ETF applications. However, he cited consensus among researchers to reach this prediction and has turned bearish on Bitcoin.

    However, today’s meeting suggests a more optimistic outlook, aligning with broader market expectations of a possible approval by the SEC, potentially as soon as the following week. Jan. 10th has been identified as a critical date, marking a deadline for the numerous spot Bitcoin ETF applicants.


    Follow Us on Google News

    [ad_2]

    Mohammad Shahidullah

    Source link

  • SBF's Conviction, SEC's Legal Defeats Against Ripple, Binance's New CEO: Major Crypto Events That Dominated 2023

    SBF's Conviction, SEC's Legal Defeats Against Ripple, Binance's New CEO: Major Crypto Events That Dominated 2023

    [ad_1]

    What an eventful year it has been for the crypto industry!

    With 2023 coming to an end, the cryptocurrency space has had its share of battles and victories, all of which continue to shape an industry that, though still growing, has managed to make a mark in the global financial sector.

    This year, regulators came down hard on key players in the market, one of the biggest and most influential CEOs pleaded guilty to a criminal charge, and the hype around a spot Bitcoin exchange-traded fund (ETF) intensified following applications from major financial institutions.

    We now go further to explore some of the major events that made headlines in 2023.

    Bank Collapses That Affected Crypto Companies

    Silicon Valley Bank (SVB), Signature Bank, and Silvergate, which catered to crypto businesses and tech startups, fell apart within a week in March in what was described as one of the major collapses to rock the American banking sector.

    It all started with Silvergate Bank, which revealed that it was struggling to stay in operation after reporting a $1 billion loss in the fourth quarter of 2022 following the collapse of the once-cryptocurrency exchange giant FTX. Days after, the financial institution announced the closure of its Silvergate Exchange Network (SEN) – an instant settlement service that allowed crypto clients to make payments 24/7 – stating that the move was a “risk-based decision.”

    Silvergate eventually went into voluntary liquidation even though it was solvent. Amid the bank’s crisis at the time, crypto heavyweights, such as Huobi and Coinbase, cut ties with Silvergate. A few days later, the California Department of Financial Protection and Innovation closed down SVB, which mostly served the tech industry, becoming the largest bank in the United States to fail after Washington Mutual Bank in 2008.

    SVB experienced a bank run after depositors made huge withdrawals. Furthermore, banking Regulators shut down the crypto-friendly Signature Bank, which saw panic from customers after SVB’s fall, resulting in major stock sell-offs and massive outflows.

    The collapses, meanwhile, had a significant impact on crypto companies, with one of the biggest clients being Circle. The USDC stablecoin issuer revealed that it held part of its cash reserves in various US financial institutions, including SVB, Silvergate, and Signature banks, with over $3 billion in SVB.

    The USDC temporarily depegged as a result of SVB’s failure. Other crypto companies that had exposure to SVB and Signature included Ripple, BlockFi, Coinbase, and Paxos.

    The Inscriptions Craze

    First started on the Bitcoin network, the inscription mania also found its way to Ethereum and Ethereum Virtual Machine (EVM) chains.

    Inscriptions, simply put, are data files embedded on the blockchain. The fad started on the Bitcoin blockchain with Bitcoin Ordinals, which, similar to non-fungible tokens (NFTs), can be inscribed on a satoshi – the smallest denomination of Bitcoin (BTC).

    The ordinals craze prompted a surge in transactions on the Bitcoin network. But the trend has also caused network congestion, along with high fees.

    Meanwhile, inscriptions went beyond the Bitcoin network when developers found a way to deploy inscriptions on Ethereum and other blockchains beginning in November. Inscriptions on Ethereum and EMV-compatible chains are embedded in transaction call data.

    According to data from Etherscan in December, a spike in transaction activity on EVM chains was majorly attributed to inscriptions.

    However, Bitcoin Ordinals, especially, have not been without criticism, with maximalists labeling the trend as spam and a scam. Bitcoin Core developer Luke Dashjr stated that Ordinals creators were exploiting a vulnerability in Bitcoin Core to spam the blockchain. The developer also believes that ordinals are an attack on Bitcoin.

    Binance and Coinbase Slammed With SEC Lawsuit

    In June, the US Securities and Exchange Commission (SEC) went after two of the biggest cryptocurrency exchanges – Binance and Coinbase. According to the regulator, in its lawsuits against both companies, which were each filed within 24 hours, both firms violated securities laws and offered assets for trading deemed as securities.

    However, Binance and Coinbase denied the SEC’s claims, with both exchanges seeking to dismiss the regulator’s lawsuits. Binance.US, the American affiliate of the international exchange Binance, trimmed down its workforce as the company anticipated a long and expensive legal battle with the SEC.

    Ripple’s Victories Against the SEC

    A month after the SEC’s lawsuit against Binance and Coinbase, another crypto company, which has been involved in a lengthy legal fight with the regulator, scored a major win in July.

    In December 2020, the SEC sued Ripple Labs, the company behind the XRP token, for conducting a $1.3 billion unregistered securities offering through its sale of XRP. Ripple and its CEO, Brad Garlinghouse, fought back against the allegation, maintaining that the firm did not commit any crime.

    A partial victory came for Ripple in July 2023 after Judge Analisa Torres ruled that XRP sales on public crypto exchanges did not violate securities laws. However, Judge Torres stated that the sale of XRP directly to sophisticated investors violated securities laws.

    Ripple scored another win in October after Judge Torress dismissed the SEC’s appeal against the judge’s decision in July. A third victory came for the company in the same month after the securities watchdog dropped its charges against Ripple’s top executives — Brad Garlinghouse and Chris Larsen.

    BlackRock’s Spot Bitcoin ETF Filing

    BlackRock, the world’s largest asset manager with nearly $10 trillion in assets, made headlines in June after the company filed for a spot Bitcoin exchange-traded fund (ETF) with the SEC. Following BlackRock’s filing, other companies such as Fidelity Digital, WisdomTree, Invesco, and VanEck resubmitted their applications.

    The SEC has yet to approve any spot Bitcoin ETF in the United States, with the regulator only favoring Bitcoin futures ETFs. However, there have been renewed hopes of a possible spot BTC ETF, with reports stating that discussions between potential issuers and the SEC have reached an advanced stage.

    Meanwhile, ETF applicants, investors, and the broader crypto community have set their sights on deadlines between Jan. 5th and 10th, 2024 deadline, with the hope the US will finally have a spot Bitcoin ETF product after years of delays and rejections.

    Worldcoin: The Crypto Iris-Scanning Project

    Worldcoin, co-founded by OpenAI CEO Sam Altman, launched its WLD token in July 2023. However, the project has faced criticisms for its iris-scanning feature, which users will undergo to get WLD tokens.

    Regulatory authorities in France, the United Kingdom,  Germany, and Argentina raised privacy concerns and initiated investigations into the project. Kenya, on the other hand, suspended Worldcoin activities in the country.

    Amid regulatory scrutiny, recent reports stated that Worldcoin quietly discontinued its orb verification for offline users in India, Brazil, and France. Meanwhile, the project expanded into Singapore, allowing users to “verify their unique humanness at an Orb.”

    Grayscale’s Win Against the SEC

    After its defeat to Ripple, the SEC suffered another loss in a legal case involving asset management firm Grayscale. The latter sued the Commission for rejecting its request to convert its Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF.

    In August, a United States court instructed the regulator to reconsider Grayscale’s application, a ruling that served as a major win for the crypto company. However, some experts at the time noted that the victory did not mean an automatic endorsement of spot Bitcoin ETF.

    Sam Bankman-Fried: From Crypto Darling to Criminal

    November can be said to be one of the most eventful months in 2023 for the cryptocurrency industry. Sam Bankman-Fried, popularly known as SBF, whose company FTX fell in November 2022, was convicted nearly a year later of a seven-count charge, including fraud and conspiracy.

    Following FTX’s collapse, Bankman-Fried resigned from his position as CEO of the crypto exchange. The former chief was subsequently arrested and later extradited to the United States.

    After a month-long trial, which began in October 2023, a 12-man jury declared SBF guilty of all seven counts involving fraud, conspiracy, and money laundering, with the charges carrying a combined maximum sentence of 120 years in prison. Following the guilty verdict, Bankman-Fried’s defense lawyer said that his client maintained his innocence and would continue to fight the allegations.

    SBF’s sentencing is scheduled for March 28, 2024, with a second trial also to happen in the same month. However, a recent letter, according to Bloomberg, revealed that Bankman-Fried will not face a second trial, with US prosecutors informing Judge Lewis Kaplan of their intention to drop the second set of charges, part of which accuse the former entrepreneur of bank fraud, trying to bribe foreign officials, and operating an unlicensed money transmitting business.

    CZ Stepping Down and Binance’s $4 Billion Fine

    Another major event happened in November, with the largest cryptocurrency exchange by market capitalization, Binance, paying a $4.3 billion fine in a settlement with United States regulators.

    The company, which is facing regulatory issues from different watchdogs, chief among them the SEC, paid the hefty settlement., in addition to pleading guilty to various charges, including knowingly violating the Bank Secrecy Act.

    Binance CEO Changpeng Zhao, popularly known as CZ, also pled guilty to contravening the Bank Secrecy Act, agreed to step down from his position and pay a personal fine of $50 million.

    Meanwhile, CZ, who also resigned as chairman of the board of directors at Binance.US, will remain in the U.S. until his sentencing on Feb. 23, 2024, with a United States district court ruling in favor of the government, which claimed that he was a flight risk.

    Binance’s former head of regional markets outside the U.S., Richard Teng, became the company’s new CEO.

    Major Hacks in 2023

    While hacking incidents in 2023 recorded less volume compared to 2022, there were still some notable hacks that occurred this year.

    DeFi lending protocol Euler Finance lost $197 million worth of customer assets in March through a flash loan attack. In April, the project announced that the attacker returned all recoverable funds.

    Crypto exchange Poloniex also fell victim to a hacking incident, causing the platform to lose $125 million in various assets, including Ether (ETH), USDT, USDC, and Shiba Inu (SHIB).

    Another project, Mixin Network, suffered a $200 million loss in September after attackers exploited a vulnerability in the database of its cloud service provider. Shortly after the attack, the Mixin team appealed to the hacker to return the stolen funds while offering them a $20 million bug bounty reward.

    Fingers Crossed for 2024

    With 2024 just around the corner, the industry seems to be optimistic about a potential crypto bull run. Already, there have been massive Bitcoin (BTC) price predictions for 2024, which analysts and stakeholders believe will be propelled by a potential spot Bitcoin ETF approval and the upcoming Bitcoin halving event.

    Bitwise recently predicted that BTC’s price will hit a new all-time high of $80,000 in 2024. Other predictions put the value of the crypto asset at $100,000 and above per coin also in 2024.

    It remains to be seen how the new year will shape the crypto industry, with various activities and anticipations, but hopefully, the leap year will be good for the market.

    SPECIAL OFFER (Sponsored)

    Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).

    [ad_2]

    Anthonia Isichei

    Source link

  • VanEck: spot Bitcoin ETF launch will not impact BTC price

    VanEck: spot Bitcoin ETF launch will not impact BTC price

    [ad_1]

    VanEck advisor Gabor Gurbacs does not expect the launch of Bitcoin (BTC) spot exchange-traded funds (ETFs) to impact Bitcoin price much.

    In a post to X, financial guru Gabor Gurbacs noted that while the launch of a spot Bitcoin ETF will not greatly impact the price of BTC, it will significantly impact capital flows into the cryptocurrency sector.

    Bitcoin ETFs are widely expected to bring in trillions of dollars over the long term, but Gurbacs believes they will not move the needle that much in the short-term.

    “Bitcoin is forcing its own capital markets systems and products well beyond the ETF, and that’s not priced in. The question is not what BlackRock adopts, but what Bitcoin company is the next BlackRock.”

    Gabor Gurbacs, VanEck advisor

    Gurbacs also believes that the initial impact of the Bitcoin ETF is vastly overestimated – estimating that net inflows could only amount to about $100 million of “mostly recycled” money from large institutional investors.

    That being said, following the widely expected approval of a spot Bitcoin ETF in the U.S., Bitcoin’s price trajectory may well follow in the footsteps of gold, but it will likely happen “much faster” due to its limited supply and scarcity-increasing events such as halvings.

    The Securities and Exchange Commission (SEC) set the filing deadline for updated applications for a spot Bitcoin ETF to Dec. 29, 2023. If companies failed to meet that deadline, they will lose the opportunity to receive SEC approval in early January.

    Matrixport platform analysts predicted the likely launch of the product in January 2024. Experts believe that the SEC will allow trading of spot Bitcoin ETFs in the US until January next year. Presumably, trading will begin in February or March.


    Follow Us on Google News

    [ad_2]

    Anna Kharton

    Source link

  • Here’s Why The Approval of Spot Bitcoin ETFs Could be a Sell-The-News Event: CryptoQuant

    Here’s Why The Approval of Spot Bitcoin ETFs Could be a Sell-The-News Event: CryptoQuant

    [ad_1]

    The widely anticipated approval of over a dozen spot Bitcoin exchange-traded funds (ETFs) in the United States could be a sell-the-news event that would cause the price of BTC to move in the opposite direction.

    According to the latest weekly report from market analytics platform CryptoQuant, the prediction is substantiated by market participants sitting on high unrealized profits from BTC’s recent ascent.

    A Sell-the-news Event

    Applicants for the spot Bitcoin ETFs have been in talks with the U.S. Securities and Exchange Commission (SEC) over time, hosting about 32 meetings this month to discuss changes and amendments to their filings.

    The crypto community believes the series of meetings is a sign the ETFs would be approved between January 8-10, as expected, and analysts have given 90% odds of such an occurrence. Even BlackRock, one of the world’s largest asset managers vying for the ETFs, announced it would seed the product with $10 million on January 3.

    Bitcoin is expected to skyrocket to new yearly highs after the approval as investors’ funds move into the ecosystem. However, CryptoQuant analysts argue the approval could be a sell-the-news event.

    “Buy the rumor, sell the news” is a strategy that involves maximizing market movements in anticipation of an announcement that could trigger a positive price shift. Traders open positions on rumors to close when the news has broken, often making a profit. Unfortunately, this idea is driven by the fear of missing out (FOMO), and the price of the asset is likely to plunge due to selling pressure from market participants.

    Bitcoin May Plunge to $32K

    Market participants like miners and short-term holders are sitting on unrealized profits with margins as high as 30%, which has preceded price corrections, per historical data. While they are still spending BTC at a profit, rallies usually come after short-term losses have been realized.

    CryptoQuant predicts BTC may eventually fall to $32,000, the short-term holder realized price, as traders have begun to pay too much to open long positions. This is evident in Bitcoin and Ethereum derivative markets, which show the highest funding rate over a year.

    Additionally, sell volume is growing more than buy volume in Bitcoin and Ethereum derivative markets, and the Bull-Bear Market Cycle Indicator is still at high levels even after it exited the overheated bull phase.

    SPECIAL OFFER (Sponsored)

    Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).

    [ad_2]

    Mandy Williams

    Source link

  • SEC may approve Bitcoin ETF for imminent launch: here’s when

    SEC may approve Bitcoin ETF for imminent launch: here’s when

    [ad_1]

    Speculations about the ETF approval’s potential effects on Bitcoin (BTC) have been widespread. Greeks.live, an options platform, provides insights into how the exchange-traded fund could influence the value of the leading cryptocurrency.

    Potential Bitcoin ETF approval imminent

    The U.S. Securities and Exchange Commission (SEC) is reportedly set to inform asset managers seeking to launch a spot Bitcoin (BTC) ETF about the approval status of their applications as early as next week.

    A seasoned trader, renowned for accurately predicting the year’s crypto breakout, now provides insights on Bitcoin’s optimal trajectory post potential approval of spot market BTC exchange-traded fund applications (ETF).

    DonAlt, the pseudonymous analyst, says a prolonged consolidation period would be the most favorable scenario for Bitcoin after potential ETF approval. According to The Daily Hodl, he anticipates a “sell-the-news” reaction to the upcoming ETF announcement on Jan. 10. Afterward, the price of BTC is unlikely to drop significantly below $20,000.

    However, Greeks.live suggests that the market has already factored in the potential approval of the Bitcoin ETF. As a result, it anticipates that the approval may not bring substantial returns for the asset or cause significant price movement.

    The platform bases its assessment on the minimal volatility observed in major-term implied volatilities (IVs) and the current Bitcoin price. Implied volatility, indicating the market’s expectation of an asset’s future movement, plays a crucial role in this analysis.

    On Jan. 12, despite the belief in a strong correlation between options IV and the Bitcoin ETF, there was a decrease rather than an increase. This decline in implied volatility, coupled with the overall low volatility, suggests that even with significant impending news, the impact on Bitcoin’s price may not be substantial.

    At the time of writing, Bitcoin is trading at $42,509, reflecting a modest 0.7% price increase in the past day. Notably, the cryptocurrency has experienced a remarkable 156% increase this year, partly fueled by expectations surrounding a spot ETF.

    Goldman Sachs predicts bullish year

    Investment bank Goldman Sachs forecasts substantial expansion in the cryptocurrency market, specifically highlighting the potential growth of Bitcoin and Ether exchange-traded funds (ETFs). 

    Per CoinGape, Goldman managing director Mathew McDermott cautions against expecting an immediate transformation in the cryptocurrency landscape post-ETF approval. Instead, he envisions a gradual evolution over the next year, dependent on regulatory approval.

    With major players like BlackRock and Fidelity awaiting the SEC’s decision on their spot bitcoin ETF applications. The prevailing sentiment is optimistic, with hopes for a positive outcome that could unlock new avenues for institutional investments in Bitcoin.

    Looking to 2024, McDermott foresees substantial growth in the crypto market. This optimism stems from the increased integration of blockchain technology in commercial applications and traditional financial institutions’ growing involvement in the crypto space.

    A focal point for McDermott is the development of tokenization marketplaces. He predicts these platforms will gain significant traction, particularly among investors, driven by the emergence of secondary liquidity on-chain — a crucial factor enabling market expansion.


    Follow Us on Google News

    [ad_2]

    Ogwu Osaemezu Emmanuel

    Source link

  • Bitcoin Spot ETF: Bitwise Closes Ranks With $200 Million Seed Fund

    Bitcoin Spot ETF: Bitwise Closes Ranks With $200 Million Seed Fund

    [ad_1]

    The competition among the Spot Bitcoin ETF issuers is heating up as the period for potential approval of these funds draws nearer. Asset manager Bitwise is the issuer currently making waves as it could potentially outrank the world’s largest asset manager, BlackRock, in terms of seed funds for their respective ETFs. 

    Bitwise’s Bitcoin ETF Could See $200 Million Seed Fund

    Bitwise’s latest amendment to its S-1 filing with the Securities and Exchange Commission (SEC) shows that the asset manager has gotten interest from an investor to have its ETF seeded with $200 million upon launch. Bloomberg analyst Eric Balchunas highlighted its significance as he stated that it “blows away” BlackRock’s initial seed fund of $10 million. 

    The analyst noted that Bitwise actually seeding its ETF with such an amount could be a “huge help” in the early days of the race. It is believed that the SEC is likely to approve the pending ETF applications simultaneously. As such, Bitwise being able to create $200 million of shares could give the asset manager an advantage in terms of meeting demands by clients. 

    Bitwise had previously shown its intention to lead the way from the get-go following the release of its Bitcoin ETF commercial. This move could help the asset manager gain much interest in its Bitcoin ETF even before launch. That way, the public sees it as the first choice upon launching.

    Notably, Bitwise didn’t mention who the authorized participant (AP) for its ETF would be. The AP would act as the middleman between the ETF investor and issuer, as they are responsible for creating and redeeming the ETF shares. While Bitwise failed to name its AP, other issuers like BlackRock however included it in their latest S-1 filing with the SEC. 

    BTC price above $42,000 once again | Source: BTCUSD On Tradingview.com

    BTC ETF Issuers Show Their Hands In Latest Wave Of Filings

    Spot Bitcoin ETF issuers made some notable inclusions in their latest and final amendment to their S-1 filings. These inclusions also give an idea of what strategy these issuers may be looking to adopt in order to lure investors to their funds. In Fidelity’s case, the asset manager will be looking to entice investors with its relatively low fees.

    Balchunas noted that Fidelity’s ‘sponsor fee’ of 0.39% happens to be the lowest so far among other issuers that have made theirs known. Interestingly, Invesco is adopting a more enticing strategy as they revealed in their latest amendment that they will be waiving fees for the first six months and the first $5 billion in assets. 

    The Bloomberg analyst mentioned that the fee war is going to continue being a thing in the Spot Bitcoin ETF terrain as issuers will be looking to outdo themselves. 

    Featured image from Crypto Briefing, chart from Tradingview.com

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

    [ad_2]

    Scott Matherson

    Source link

  • Coinbase Custody Head Departs As Crypto Giant Prepares For Bitcoin ETF Services

    Coinbase Custody Head Departs As Crypto Giant Prepares For Bitcoin ETF Services

    [ad_1]

    According to Bloomberg, Coinbase Global has recently experienced a change in leadership within its custody division. The departure of Aaron Schnarch, former CEO of Coinbase Custody, has been confirmed by a spokesperson, who also revealed that Schnarch was replaced by Rick Schonberg in August.

    Per the report, the transition aligns with Coinbase’s efforts to offer services to applicants of spot Bitcoin (BTC) exchange-traded funds (ETFs).

    Coinbase Affirms Readiness For Bitcoin ETF Approval

    Rick Schonberg, who joined Coinbase in 2021, aims to provide experience to his new role, having previously worked at reputable financial institutions such as Goldman Sachs, State Street, and Tagomi, according to Bloomberg. 

    Coinbase on the other hand, has emerged as the preferred choice for custodial services among Bitcoin ETF applicants, including industry giants like BlackRock, Franklin Templeton, and Grayscale Investments.

    Custody services play a crucial role for potential managers of spot Bitcoin ETFs, as investors rely on these providers to securely safeguard their digital tokens.

    Notably, a Coinbase spokesperson emphasized the company’s preparedness for ETF approval, stating to Bloomberg: 

    We have extensively prepared for ETF approval. Our systems have been designed and tested to handle added trading volume, increased liquidity, and general increases in demand on our systems.

    Coinbase Custody, operating as a trust company, falls under the regulatory oversight of the New York Department of Financial Services and undergoes auditing by Deloitte & Touche.

    Countdown To Historic Decision

    The race to obtain regulatory approval for the first ETF directly investing in the largest cryptocurrency, Bitcoin, is entering a critical phase. 

    The US Securities and Exchange Commission (SEC) faces a deadline of January 10 to decide whether to approve a spot Bitcoin ETF application submitted by ARK Investment Management, led by Cathie Wood, and 21Shares, along with potentially other similar filings.

    Overall, the departure of Aaron Schnarch and the subsequent appointment of Rick Schonberg within Coinbase Custody highlight the company’s strategy to the growing demand for custodial services from Bitcoin ETF applicants. 

    With the potential approval of spot Bitcoin ETFs on the horizon, the industry eagerly awaits the SEC’s decision, which will have far-reaching implications for the adoption and mainstream acceptance of cryptocurrencies.

    The 1-day chart shows BTC’s sideways price action over the past 24 hours. Source: BTCUSDT on TradingView.com

    Bitcoin, the largest cryptocurrency in the market, is currently trading at $42,100, representing a 1.1% decline over the past 24 hours. 

    In recent weeks, BTC’s price has been consolidating above $40,000, exhibiting sideways movement since the beginning of December. However, it has achieved a notable gain of over 11% in the last 30 days.

    It remains to be seen how the price of BTC will react to the potential approval of these index funds by the largest asset managers in the world, and what other impact it will have on the overall crypto market.

    Featured image from Shutterstock, chart from TradingView.com

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

    [ad_2]

    Ronaldo Marquez

    Source link

  • BlackRock designates JPMorgan, Jane Street as Bitcoin ETF authorized participants

    BlackRock designates JPMorgan, Jane Street as Bitcoin ETF authorized participants

    [ad_1]

    BlackRock disclosed JPMorgan Securities and Jane Street as intended participants for its proposed Bitcoin ETF before the SEC decision.

    The asset management giant is set to collaborate with the participants, pending approval from the Securities and Exchange Commission (SEC).

    Authorized participants play a crucial role in ETF operations, as they can create and redeem shares. This involves exchanging ETF shares for a corresponding basket of securities mirroring the fund’s holdings or opting for a cash exchange. The disclosure of these authorized participants is considered a pivotal step before the SEC decides.

    JPMorgan CEO Jamie Dimon has previously advocated for a government ban on cryptocurrencies, citing concerns about their legitimacy. But with JPMorgan being an intended participant in the Bitcoin ETF, Dimon’s words contradict his previous statements.

    According to analysts from Bloomberg Intelligence, such as James Seyffart and Eric Balchunas, the SEC is poised to approve spot Bitcoin ETF proposals that commit to cash-only creations and redemptions, provided they have agreements with authorized participants. The likelihood of SEC approval stands at 90%, with expectations of some firms launching a spot Bitcoin ETF in early January.

    As the SEC faces a Jan. 10 deadline for a decision on proposals by ARK Invest and 21Shares, market watchers anticipate potential developments in the emerging Bitcoin ETF landscape. Despite refilings by firms like ARK, 21Shares, and VanEck, authorized participants have yet to be named, signaling that firms may disclose this information when filing their effective prospectus, marking the final step before going live.

    Grayscale Investments, in a June 2022 report, had previously indicated intentions to work with Jane Street and Virtu Financial if its Grayscale Bitcoin Trust (GBTC) converted to an ETF, but recent filings have not confirmed these participants.

    Valkyrie names Cantor Fitzgerald, Jane Street as APs

    In a recent update, Valkyrie filed another amended S-1 for their Bitcoin ETF, revealing Jane Street and Cantor Fitzgerald as their authorized participants. This move is significant, as it signals a potential floodgates opening in the Bitcoin ETF industry.


    Follow Us on Google News

    [ad_2]

    Bralon Hill

    Source link

  • Did Grayscale Bend the Knee? S-3 Bitcoin ETF Amendment After Silbert's Exit Sparks Questions

    Did Grayscale Bend the Knee? S-3 Bitcoin ETF Amendment After Silbert's Exit Sparks Questions

    [ad_1]

    Grayscale has submitted a modified S-3 filing for the conversion of its GBTC into a spot Bitcoin ETF on the same day of its surprising leadership shuffle.

    The asset manager reportedly reached a compromise by agreeing to adhere to the US Securities and Exchange Commission’s (SEC) stipulation for cash-only creation and redemption.

    Grayscale’s Compromise Stirs Debates

    Grayscale has made multiple revisions to its 2018 filing. In November, two alterations were suggested. The initial one changed the fee collection method from a monthly to a daily structure. The second adjustment involved the modification of how assets are combined in an omnibus account, aiming to streamline the creation and redemption of shares.

    According to Bloomberg’s James Seyffart, Grayscale seems to be acquiescing to the SEC’s requirement for cash-only orders in its recently amended S-3 filing. Seyffart believes the asset manager is “bending the knee” to comply with the SEC’s directive.

    The ongoing dispute between asset managers seeking to launch a spot Bitcoin ETF and the SEC revolves around the contrasting approaches of cash and in-kind creations. While the majority of stock and commodity-based ETFs operate on an in-kind model, enabling direct handling of the fund’s assets by market participants, a cash-creation model restricts the creation or redemption of new shares in a spot Bitcoin ETF to cash transactions alone.

    The SEC’s decision to prohibit broker-dealers from directly engaging with Bitcoin is perceived as an effort to enhance tracking of BTC movements from exchanges and to mitigate potential risks related to anti-money laundering or Know Your Customer compliance.

    Finance Lawyer Scott Johnson highlighted the issue of in-kind creation/redemption in the context of the SEC’s rulemaking for digital asset safekeeping and said the amended S-3 sheds light on the challenge posed by the regulator’s reluctance to approve amendments allowing in-kind processes despite assertions from broker-dealers and exchanges that compliance is feasible.

    This regulatory stance, seemingly aimed at investor protection, paradoxically results in reduced safeguards as Grayscale seeks approval for a novel cash-based approach in contrast to the industry norm of in-kind models for spot commodity ETFs, introducing a new layer of uncertainty for investors, according to Johnson. He further added,

    “Gary has twisted the SEC’s crypto regime into a knot where it simultaneously allows and disallows its existence via some Rube Goldberg-ian mess, and courts are forced to intervene every so often to reconcile the stupidity. But rest assured, no guidance needed. All very clear.”

    Barry Silbert’s Resignation

    On the other hand, Barry Silbert’s exit may considerably favorably impact the odds of Grayscale’s successful transformation of the GBTC into a spot Bitcoin ETF.

    Adam Cochran, a partner at Cinneamhain Ventures, suggests that Silbert’s decision to resign was undoubtedly an agreement between the asset manager and the SEC, strategically coordinated before the approval of the conversion request.

    SPECIAL OFFER (Sponsored)

    Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).

    [ad_2]

    Chayanika Deka

    Source link

  • Grayscale Leadership Shuffle: Barry Silbert, Mark Murphy Resign

    Grayscale Leadership Shuffle: Barry Silbert, Mark Murphy Resign

    [ad_1]

    In a surprising turn of events, Barry Silbert, the founder and CEO of Digital Currency Group (DCG) – the parent company of Grayscale – has resigned from the asset manager’s board of directors.

    Silbert, a key figure in the cryptocurrency industry, has played a crucial role in shaping the growth of Grayscale Investments. His departure from the board signals a significant shift in leadership and strategy for the firm.

    • The official 8-K filing with the US Securities and Exchange Commission (SEC) on December 26 confirmed the resignation.
    • Besides Silbert, Mark Murphy, the president of Digital Currency Group (DCG), has also announced his resignation from the Grayscale board.
    • Both the former execs’ resignations will take effect on January 1, 2024. Mark Shifke, 64, the chief financial officer of DCG, will be taking over Silbert’s role.
    • The newly appointed members joining Grayscale’s board include Matt Kummell, 47, the Senior Vice President of Operations at DCG, and Edward McGee, 40, who holds the position of Chief Financial Officer at Grayscale, as outlined in the submitted document.
    • As a result of these changes, Grayscale’s board composition now includes Shifke, Kummell, McGee, and Michael Sonnenshein, the CEO of the company. The filing did not provide specific details regarding the reasons behind these alterations.
    • The change in leadership at Grayscale comes at a time when the asset manager is seeking approval from the SEC to convert its GBTC into a spot Bitcoin ETF.
    • Grayscale Investments’ CEO, Michael Sonnenshein, recently expressed optimism regarding the ongoing discussions with the securities watchdog about the potential approval of a spot Bitcoin ETF. He further added that if greenlighted, this could pave the way for an influx of $30 trillion in wealth into the crypto market.
    SPECIAL OFFER (Sponsored)

    Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).

    [ad_2]

    Chayanika Deka

    Source link

  • 2 Bitcoin ETF Hazards: SEC Rejection and Competition From Funds

    2 Bitcoin ETF Hazards: SEC Rejection and Competition From Funds

    [ad_1]

    A U.S. circuit court in Washington D.C. has ordered the Securities and Exchange Commission to revisit its rejection of a Bitcoin ETF application by crypto hedge fund Grayscale.

    But that doesn’t mean the SEC won’t find new reasons to reject it or any of the dozen other applications.

    SEC Rejection or Delay Could Tank Bitcoin Price

    Crypto industry investors and insiders expect the price of Bitcoin and other crypto assets to surge if and when the SEC approves an exchange-traded fund for BTC. “It’s definitely going to pump quickly,” said DeCryptoFi founder and CEO Nicholas Scherling at a recent round table with Rob Nelson for TheStreet.

    By the same token, however, news of any Bitcoin ETF rejections by the SEC could lead to a rout in Bitcoin price. In fact, ETF Store president and ETF Institute co-founder Nate Geraci warned Sunday that if the SEC doesn’t approve a Bitcoin ETF in January, markets could see one of the “bigger rug pulls in crypto history.”

    The SEC shows no signs of making it easy for institutional financiers who want to launch a Bitcoin ETF. It has so far rejected “in-kind” structured ETFs and insisted on “cash create” ETFs by issuers. The form the SEC is insisting on will raise tax liabilities for issuers and perhaps fees for clients. The battle between funds and regulators could delay an ETF past January.

    Spot Bitcoin ETF Threat to Crypto Exchanges

    Referring to the average 0.01% fee for ETF trading on a Sunday, Dec. 17 post to X, senior Bloomberg ETF analyst Eric Balchunas quipped that a Bitcoin ETF is about to “unleash the Power of One (basis point). Nate Geraci replied that it will “be a bloodbath for crypto exchanges.”

    By contrast, crypto trading fees on popular crypto exchanges like Coinbase can go as high as 0.6%. Balchunas believes a crypto ETF will wipe out high trading fees for the original cryptocurrency. However, that would most likely be a net financial benefit for investors.

    SPECIAL OFFER (Sponsored)

    Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).

    [ad_2]

    W. E. Messamore

    Source link

  • BitMEX founder has a dire warning about spot ETF approval

    BitMEX founder has a dire warning about spot ETF approval

    [ad_1]

    Arthur Hayes, co-founder of the BitMEX crypto exchange, is sounding the alarm regarding what he sees as possible dire outcomes of the pending regulatory approval of the spot Bitcoin exchange-traded fund (ETF).

    The concern lies in traditional finance asset managers, such as BlackRock, potentially undermining Bitcoin (BTC) by dominating the spot Bitcoin ETF market.

    In a blog post on Dec. 22, Hayes highlighted the risk of such firms holding “all the Bitcoin in circulation.” If that happens, he says, an over-successful ETF managed by traditional asset managers could ultimately lead to the decline of the cryptocurrency.

    Hayes argues that BlackRock and similar entities “vacuum up assets, store them in a metaphorical vault, issue a tradable security, and charge a management fee for their ‘hard’ work.”

    “They don’t use the things they hold on behalf of their clients, which presents a problem for Bitcoin if we take an extreme view of a possible future,” he added.

    The public may then opt for Bitcoin ETF derivatives instead of buying and holding Bitcoin by themselves, impacting the use of the Bitcoin blockchain, Hayes says.

    Hayes surmised a future where Bitcoin is merely stored in vaults, with miners no longer receiving income due to the lack of network use. This scenario, he warns, could lead to the network’s death and the disappearance of Bitcoin.

    2024: A pivotal year

    Hayes also pointed to Bitcoin’s 228% growth since 2020, where he claims it outperformed most traditional assets. This growth signifies BTC’s dominance as a hedge against fiat debasement, he adds.

    BTC growth since 2020 compared to traditional assets. Source: Arthur Hayes

    Hayes advised investors to avoid permission-based DeFi projects, tokenized real-world assets, and governance tokens tied to debt yields.

    Before penning his latest blog post, Hayes had taken to social media to reveal that he had moved his investments from Solana (SOL) to Ether (ETH), despite having criticized Solana and even forecasting that the token could breach the $100 mark based on its current rally.

    By shifting to ETH, Hayes appears to be bucking the trend, as Solana has outpaced Ether in performance during the current crypto market resurgence.

    Nonetheless, Hayes anticipates that Ether will hit $5,000, surpassing its previous peak of $4,800 achieved in November 2021.

    It’s worth noting that Hayes was previously critical of Solana, even expressing scathing reviews of the project when he acquired the tokens in November.


    Follow Us on Google News

    [ad_2]

    Julius Mutunkei

    Source link

  • Grayscale CEO Says Spot Bitcoin ETFs to Allow Market Inflow of $30T in Advised Wealth

    Grayscale CEO Says Spot Bitcoin ETFs to Allow Market Inflow of $30T in Advised Wealth

    [ad_1]

    Michael Sonnenshein, the CEO of leading asset management firm Grayscale Investments, believes the approval of spot Bitcoin exchange-traded funds (ETFs) could allow the crypto market to enjoy an inflow of $30 trillion in advised wealth.

    During an interview with CNBC’s Squawk Box, Sonnenshein said there is a lot of market optimism for Bitcoin (BTC) next year as many investors are adding the digital asset to their portfolios.

    Opportunity for $30T Advised Wealth Inflow

    Sonnenshein said the optimism in the market could be traced to Grayscale’s court victory a few months back, which bolstered the community’s hope for a spot Bitcoin ETF approval. Recall that in August, a U.S. Court ordered the Securities and Exchange Commission (SEC) to reevaluate the asset manager’s application to convert its leading GBTC fund into a Bitcoin ETF.

    The Grayscale CEO opined that the launch of spot Bitcoin ETFs would unlock digital asset exposure to a part of the investment community that has been locked out of the opportunity to have exposure to BTC. He said the U.S. advised market worth $30 trillion would become part of the investment community with BTC exposure after the launch of the products.

    “So, we’re really talking about the advised market here in the U.S., which is today about $30 trillion worth of advised wealth that we hope the approval of spot Bitcoin ETFs, the uplisting of the GBTC will allow for that opportunity and for those investors to partake in it as well,” he stated.

    Grayscale is among more than a dozen traditional finance firms that are contending to launch the first spot Bitcoin ETF in the U.S. Some of the asset managers in the race include BlackRock, Ark Invest, Fidelity, Galaxy Digital, Franklin Templeton, and VanEck.

    Biggest Development on Wall Street in 30 Years

    Sonnenshein’s comments on the anticipated ETF approval come on the heels of a similarly huge remark by Michael Saylor, co-founder and executive chairman of business intelligence firm MicroStrategy.

    In a recent interview with Bloomberg, the Bitcoin advocate said the approval of a spot Bitcoin ETF could be the biggest development on Wall Street in the last 30 years.

    Meanwhile, the SEC is expected to approve all or some spot Bitcoin ETF applications by January 2024.

    SPECIAL OFFER (Sponsored)

    Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).

    [ad_2]

    Mandy Williams

    Source link

  • Bitcoin ETF roundup: Grayscale meets with SEC, Hashdex releases ad

    Bitcoin ETF roundup: Grayscale meets with SEC, Hashdex releases ad

    [ad_1]

    Grayscale meets with the SEC again to discuss its spot Bitcoin ETF application, and Hashdex becomes the second firm to post a crypto ETF ad. 

    According to reports, Grayscale met with the SEC on Tuesday to discuss potential rule changes to their ETF application. The leaked memorandum shared by Bloomberg reporter James Seyffart shows that Grayscale is still pushing for in-kind and cash transactions for their spot Bitcoin ETF.

    In-kind transactions refer to the process where ETF shares are created or redeemed by exchanging securities, like stocks or bonds, instead of cash. This method efficiently manages the ETF’s portfolio and helps minimize the tax impact on investors.

    Grayscale also proposed that only authorized participants should be able to create and redeem Bitcoin ETP shares and must be registered with FINRA.

    Bitcoin ETF advertisement war is heating up

    The excitement around ETFs continues to build up, with Hashdex posting an ad promoting their upcoming crypto-ETFs today. Hashdex becomes the second firm to release such an ad, as Bitwise released the first ETF featuring popular actor Jonathan Goldsmith yesterday. After Hashdex’s post earlier today, Bitwise released a second advertisement saying ‘Satoshi sends his regards.’

    The frequent meetings from Grayscale and Blackrock and the positive advertisements hint that ETF approvals are just around the corner, with experts believing several applications will be approved by the SEC in January.  


    Follow Us on Google News

    [ad_2]

    Mohammad Shahidullah

    Source link

  • Analysts predict Bitcoin surge to $160k by 2024

    Analysts predict Bitcoin surge to $160k by 2024

    [ad_1]

    Several analysts suggest that Bitcoin’s value could skyrocket to nearly $160,000 by 2024.

    This surge is anticipated due to the Bitcoin halving event and the growing excitement around potential spot ETFs in the United States. 

    The Bitcoin halving will effectively reduce the availability of new BTC on the market, and it has been a historical precursor to significant price rallies. The next halving is set for April 2024, and market traders seem to be factoring in its potential impact on the cryptocurrency’s value.

    CryptoQuant, an on-chain analytics provider, recently told CoinDesk that Bitcoin is poised for a massive rally next year. According to their analysis, ETF approval and the impact of halving could push the leading token’s price to a minimum of $50,000.

    Bitcoin ETF hype is heating up

    Discussions are ongoing between several major traditional financial institutions and the SEC regarding ETFs, as many believe several applications will likely be approved together in January. Yesterday, another new application was filed by 7RCC Global, which wants to launch the first-ever environment-friendly Bitcoin ETF. 

    7RCC Global Inc. will primarily invest in Bitcoin while allocating a significant portion of its portfolio to carbon-credit futures. The ETF, if approved, will trade under the ticker BTCK, and crypto exchange Gemini will be its custodian. 

    Furthermore, there is an expectation that the U.S. Federal Reserve might reduce interest rates in 2024 in response to a decline in inflation rates. Historically, lower interest rates have spurred investments in higher-risk assets, including technology stocks and cryptocurrencies. However, there’s a cautionary note: Bitcoin prices could experience short-term volatility as recent investors grapple with substantial unrealized gains.

     


    Follow Us on Google News

    [ad_2]

    Mohammad Shahidullah

    Source link

  • BlackRock revises BTC ETF filing, El Salvador’s crypto citizenship trending, and more: Hodler’s Digest, Dec. 10-16

    BlackRock revises BTC ETF filing, El Salvador’s crypto citizenship trending, and more: Hodler’s Digest, Dec. 10-16

    [ad_1]

    Top Stories This Week

    BlackRock revises spot Bitcoin ETF to enable easier access for banks

    BlackRock has revised its spot Bitcoin exchange-traded fund (ETF) application to make it easier for Wall Street banks to participate by creating new shares in the fund with cash rather than just crypto. The new in-kind redemption “prepay” model will allow banking giants such as JPMorgan or Goldman Sachs to act as authorized participants for the fund, letting them circumvent restrictions that prevent them from holding Bitcoin or crypto directly on their balance sheets.

    El Salvador expects to sell out Bitcoin ‘Freedom Visa’ by end of year

    El Salvador’s National Bitcoin Office says its $1 million Freedom Visa program has already received hundreds of inquiries since its launch on Dec. 7 and expects it to sell out before the end of 2023. Launched by the local government in partnership with stablecoin issuer Tether, the Freedom Visa is a citizenship-by-donation program that grants a residency visa and pathway to citizenship for 1,000 people willing to make a $1 million Bitcoin or Tether donation to the country. The program is limited to 1,000 slots per calendar year.

    Sam Bankman-Fried’s lawyer says FTX fraud trial was “almost impossible” to win: Report

    The lawyer responsible for Sam “SBF” Bankman-Fried’s criminal trial defense has admitted that the case was “almost impossible” to win from the outset. During an interview, Stanford Law School professor David Mills said he recommended the legal defense of SBF admit to the allegations of witnesses and state prosecution and convince the jury that Bankman-Fried intended to save the company. Mills also disclosed that he had agreed to lend his expertise to Bankman-Fried’s defense at the behest of the FTX CEO’s parents, and described Bankman-Fried “as the worst person I’ve ever seen do a cross-examination.”

    Yearn.finance pleads arb traders to return funds after $1.4M multisig mishap

    Yearn.finance is hoping arbitrage traders will return $1.4 million in funds after a multisignature scripting error resulted in a large amount of the protocol’s treasury being drained. The error occurred while Yearn was converting its yVault LP-yCurve — earned from performance fees on vault harvests — into stablecoins on the decentralized exchange CoW Swap. Yearn suffered significant slippage when it received 779,958 DAI yVault tokens from the trade, resulting in a 63% drop in the liquidity pool value.

    SEC pushes deadline for decision on Invesco Galaxy spot Ethereum ETF to 2024

    The United States Securities and Exchange Commission has delayed its decision on whether to approve or reject a spot Ether ETF proposed by Invesco and Galaxy Digital. The companies filed the spot ETH ETF application in September. The proposed spot crypto investment vehicle is one of many being considered by the commission, which, to date, has never approved an ETF with direct exposure to Ether, Bitcoin or other cryptocurrencies.

    Winners and Losers

    At the end of the week, Bitcoin (BTC) is at $42,222, Ether (ETH) at $2,250 and XRP at $0.62. The total market cap is at $1.6 trillion, according to CoinMarketCap.

    Among the biggest 100 cryptocurrencies, the top three altcoin gainers of the week are Bonk (BONK) at 131.38%, WOO Network (WOO) at 78.34% and Helium (HNT) at 77.66%. 

    The top three altcoin losers of the week are Terra Classic (LUNC) at -15.84%, Sei (SEI) at -14.48% and Pepe (PEPE) at -12.10%.

    For more info on crypto prices, make sure to read Cointelegraph’s market analysis.

    Read also


    Features

    Crypto kids fight Facebook for the soul of the Metaverse


    Art Week

    Defying Obsolescence: How Blockchain Tech Could Redefine Artistic Expression

    Most Memorable Quotations

    “I’m a big fan of this stablecoin called Tether…I hold their treasuries. So I keep their treasuries, and they have a lot of treasuries.”

    Howard Lutnick, CEO of Cantor Fitzgerald

    “This [blockchain] can be leveraged to ensure proper recycling and handling of waste materials by tracking them from origin to destination.”

    Dominic Williams, founder and chief scientist at Dfinity

    “Digital currencies are the natural evolution of the world’s payment system, and Europe […] is paving the way for this inevitable shift.”

    Michael Novogratz, CEO of Galaxy Digital

    “I thought it was almost impossible to win a case when three or four founders are all saying you did it.”

    David Mills, criminal trial attorney of Sam Bankman-Fried

    “Our bipartisan bill is the toughest proposal on the table cracking down on crypto’s illicit use and giving regulators more tools in their toolbox.”

    Elizabeth Warren, U.S. senator

    “We have to understand that the Central Bank is a scam. What Bitcoin represents is the return of money to its original creation, the private sector.”

    Javier Milei, president of Argentina

    Prediction of the week

    ‘No excuse’ not to long crypto: Arthur Hayes repeats $1M BTC price bet

    Bitcoin and altcoins are a no-brainer bet in the current macro climate, Arthur Hayes says. In a post on X (formerly Twitter) on Dec. 14, the former CEO of exchange BitMEX said that investors have “no excuse” to short crypto.

    Going long on crypto is the key to success as markets bet on the United States Federal Reserve lowering interest rates next year, Hayes argues. “At this point, there is no excuse not to be long crypto,” part of his post stated.

    “How many more times must they tell you that the fiat in your pocket is a filthy piece of trash,” he wrote. Hayes further reiterated a longstanding $1 million BTC price prediction as a result of macro tides eroding the value of national currencies.

    FUD of the Week

    Ledger patches vulnerability after multiple DApps using connector library were compromised

    The front end of multiple decentralized applications using Ledger’s connector were compromised on Dec. 14. Ledger announced that it had fixed the problem three hours after the initial reports about the attack. Protocols affected include Zapper, SushiSwap, Phantom, Balancer and Revoke.cash, stealing at least $484,000 in digital assets. The attacker utilized a phishing exploit to gain access to the computer of a former Ledger employee. The hack sparked criticism about Ledger’s security approach.

    Bitcoin inscriptions added to US National Vulnerability Database

    The National Vulnerability Database flagged Bitcoin’s inscriptions as a cybersecurity risk on Dec. 9, calling attention to the security flaw that enabled the development of the Ordinals Protocol in 2022. According to the database records, a datacarrier limit can be bypassed by masking data as code in some Bitcoin Core and Bitcoin Knots versions. As one of its potential impacts, the vulnerability could result in large amounts of non-transactional data spamming the blockchain, potentially increasing network size and adversely affecting performance and fees.

    SafeMoon falls 31% in five hours after filing for Chapter 7 bankruptcy

    The token of decentralized finance protocol SafeMoon has fallen 31% in five hours after the company behind it filed for bankruptcy. SafeMoon officially applied for Chapter 7 bankruptcy, also known as “liquidation bankruptcy,” on Dec. 14. The latest blow comes only a month after the U.S. Securities and Exchange Commission charged SafeMoon and its executives with violating securities laws in what the regulator described as “a massive fraudulent scheme.” Several former SafeMoon supporters expressed frustration on Reddit regarding the bankruptcy, alleging they were rug-pulled by the SafeMoon developers.

    Read also


    Features

    ‘Account abstraction’ supercharges Ethereum wallets: Dummies guide 


    Features

    Sweden: The Death of Money?

    Top Magazine Pieces of the Week

    Terrorism & Israel-Gaza war weaponized to destroy crypto

    Draconian anti-crypto legislation could soon be passed to solve a terrorism funding “crisis” that many argue is vastly overstated.

    Korean crypto firm raises $140M, China’s $1.4T AI sector, Huobi battle: Asia Express

    Line Next raises $140M, China’s AI market surpasses $1.4T, Sinohope stagnates due to stuck FTX deposit, and more!

    J1mmy.eth once minted 420 Bored Apes… and had NFTs worth $150M: NFT Creator

    NFT collector J1mmy.eth trades like Warren Buffett, his collection peaked at $150 million, and he once minted 420 Bored Apes with Pranksy.

    Editorial Staff

    Cointelegraph Magazine writers and reporters contributed to this article.

    [ad_2]

    Cointelegraph by Editorial Staff

    Source link

  • 3 key firms dominate the ETF market: What does it mean for Bitcoin ETFs?

    3 key firms dominate the ETF market: What does it mean for Bitcoin ETFs?

    [ad_1]

    The U.S. ETF market, valued at approximately $8 trillion, largely hinges on three key firms. 

    Essential to the ETF ecosystem, authorized participants (APs), a specialized type of broker-dealer, have not expanded in number despite the sector’s rapid growth. These APs play a crucial role in ensuring every North American ETF’s liquidity and efficient operation. 

    Bloomberg’s analysis of over 3,400 fund filings reveals that most U.S. ETF flows are managed by just three firms – Bank of America, Goldman Sachs, and JPMorgan. In fact, for many funds, over 90% of all capital movements are controlled by these three APs. Astonishingly, several hundred ETFs rely solely on a single AP for their liquidity needs, based on the latest comprehensive data quarter.

    What does it mean for the potential Bitcoin ETFs in 2024? 

    Relying on a few APs could introduce heightened concentration risks in the Bitcoin ETF space. Given the volatile nature of cryptocurrencies, the efficiency and resilience of these key firms will be under scrutiny, especially in managing high-volume transactions and ensuring liquidity.

    The existing oligopoly of APs may also influence the pricing and accessibility of Bitcoin ETFs. The firms’ pivotal role in cash flow management could impact how these new ETFs are priced and traded, potentially affecting investor access and returns.

    Most importantly, the SEC’s decision-making process might consider this concentration. The regulator could consider the need for a more diversified AP landscape to ensure a robust and resilient market, especially given the novel nature and potential risks associated with Bitcoin ETFs.

    The SEC has been actively discussing with BlackRock and several other Bitcoin ETF applicants this month for a potential approval in January. The current market rally has been largely attributed to this hype of Bitcoin ETFs. However, with such concentrated operations in the current ETF market, the community should anticipate potential complexities and challenges for crypto-based ETFs. 


    Follow Us on Google News

    [ad_2]

    Mohammad Shahidullah

    Source link