VanEck Bitcoin ETF Postponed for the Last Time to Nov 14th As Futures Get the Lead Role

VanEck is one of the dozen companies awaiting an answer from the SEC on approval of physically-backed Bitcoin ETF and has also filed for a futures-backed Bitcoin ETF, which is raising Grayscale’s hackles.

The US Securities and Exchange Commission (SEC) has, yet again, extended the review process of VanEck’s physically-backed Bitcoin exchange-traded fund (ETF) for the final time.

On Wednesday, the US securities regulator posted an extension notice, saying it is designating a longer period, additional 60 days, to review the proposed rule change to list and trade shares of the VanEck Bitcoin Trust.

This puts the final deadline to get approval or disapproval on the application at November 14, 2021.

The application to list VanEck’s Bitcoin Trust was filed by Cboe BZX Exchange in March this year but continued to postpone making any decision. The commission can take up to 180 days from the filing date to announce its decision, with an additional 60 days permitted if it is deemed “appropriate.”

This time, the notice stated that the Commission finds it appropriate to allocate a longer period to issue its order on the application,

“so that it has sufficient time to consider the proposed rule change and the issues raised in the comment letters that have been submitted in connection therewith.”

VanEck is one of 13 companies awaiting an answer from the SEC on approval with other players, including Ark Invest, Valkyrie Investments, One River Asset Management, and SkyBridge Capital.

Coming Soon?

SEC Chair Gary Gensler recently said that the agency is more open to a futures-backed BItcoin ETF as it offers an additional level of security due to being governed by the CME. Also, futures requires investors to put down cash on margin to trade as collateral and, in the case of CME, a minimum of 35% of the amount. Gensler said earlier last month,

“I anticipate that there will be filings with regard to exchange-traded funds (ETFs) under the Investment Company Act (’40 Act). When combined with the other federal securities laws, the ’40 Act provides significant investor protections. Given these important protections, I look forward to the staff’s review of such filings, particularly if those are limited to these CME-traded Bitcoin futures.”

Since Gensler’s comments, at least seven firms, including VanEck and Invesco, have applied to launch Bitcoin futures products.

Industry experts expect a Bitcoin futures ETF to receive SEC approval by October or November.

Grayscale Gives A Warning

This is now raising the largest digital asset manager Grayscale’s hackles. As we reported, CEO Michael Sonnenshein in an interview with CNBC this week, said,

“It would be shortsighted of the SEC to allow a futures-based product into the market before a spot product.”

Grayscale, which has a closed-ended Bitcoin Trust, is also looking to convert its product into an ETF. According to Sonnenshein,

“If a futures-based ETF comes to market without the ability for GBTC to convert to an ETF, it has the potential to harm investors who hold tens of billions of dollars’ worth of GBTC today outright, as well as the investors who have exposure to GBTC inside mutual funds, retirement accounts, and other places.”

While SEC has yet to approve a single crypto ETF in the past 8 years when the first BItcoin ETF was filed by the Winklevoss brothers, Canada has already approved a number of Bitcoin and Ether ETFs.

Canada and North America’s first ETF tracking Bitcoin, Purpose Bitcoin ETF (BTCC), which has $747 million in assets, is now trailing its competitors 3iQ CoinShares Bitcoin ETF (BTCQ) that was launched two months later and has now amassed $1.2 billion (US$946 million) in assets.

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Author: AnTy

SEC Commissioner Hester Peirce: Stablecoins May Be USA’s Answer to China’s Digital Yuan

SEC Commissioner Hester Peirce: Stablecoins May Be USA’s Answer to China’s Digital Yuan

Meanwhile, the Fed Chair is in no rush to issue a digital dollar either as the focus is on doing it right than doing it fast.

China’s digital yuan will not overthrow the dollar’s reign, said a top US Securities and Exchange Commission official (SEC). And this is because of the growth of dollar-backed stablecoins.

Central banks around the world are working on the digitized version of their fiat currency with an aim to improve the payments system.

The People’s Bank of China (PBOC) is leading this race of a central bank digital currency (CBDC) as it extends the trials of digital yuan to more cities and even across borders in Hong Kong.

This fast pace of China has some worried that the yuan could gain dominance over the dollar, the world’s leading reserve currency. But according to Hester Peirce, aka “Crypto Mom,” the rise of stablecoins wouldn’t let that happen. she said,

“Even in 2021, there’s been a tremendous growth in stablecoins – these are essentially private digital dollars.”

“That, effectively, may be our answer to the Chinese CBDC (central bank digital currency). It may be just private stablecoins.”

“If they’re dollar-backed, then I think that the dollar will still be quite relevant,” said Peirce during a digital currency event.

According to the International Monetary Fund, the dollar accounted for almost 60% of the world’s official foreign exchange reserves at the end of 2020, while China’s share is just 2.25%.

Stablecoins, meanwhile, are on their way to surpass $100 million in market cap, with Tether the dominant stablecoin has a market cap of $51 billion alone, which is managing over $20 billion in trading volume every day. Tether’s on-chain volume has reached $754 billion YTD, already 2% higher than the total volume transacted in 2020, per IntoTheBlock.

On the topic of a digital dollar, Federal Reserve Chairman Jerome Powell said this week that China’s digital yuan plans wouldn’t push them to rush its own CBDC plans, adding that China’s approach won’t work in the US.

“It is far more important to get it right than it is to do it fast,” Powell said.

“The currency that is being used in China is not one that would work here. It’s one that really allows the government to see every payment for which it is used in real time.”

The US central bank is taking its time to understand digital currencies, he said. “Central bank digital currencies are now possible,” Powell said.

“We need to understand whether that is something that would be a good thing for the people that we serve.”

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Author: AnTy

Nassim Taleb’s ‘Antifragile’ is the Answer to ‘The Black Swan’ Author Dumping Bitcoin Due to High Volatility

Nassim Taleb’s ‘Antifragile’ is the Answer to ‘The Black Swan’ Author Dumping Bitcoin Due to High Volatility

“There is no long-term stability without short-term volatility,” writes Taleb and then dumps Bitcoin due to its high volatility.

Nassim Nicholas Taleb, author of “The Black Swan,” took to Twitter on Friday to share that he has been getting rid of his Bitcoin.

A currency isn’t supposed to be more volatile than what you buy and sell with it, said the former options trader, adding that goods can’t be priced in the cryptocurrency. “In that respect, it’s a failure (at least for now).” Taleb also said in a separate tweet that Bitcoin has failed as a hedge against central bank policies.

“It was taken over by Covid denying sociopaths w/the sophistication of amoebas,” said Taleb, adding that the other problem with the digital currency is that “the appeal of a cryptocurrency depends on some opacity, its ability to facilitate tax fraud and money laundering.”

While one can anonymize a gold coin by re-melting it, the same isn’t possible with Bitcoin, which “is more tractable than cash,” he said.

Bridgewater Associates founder Ray Dalio also said last month that “Bitcoin will unlikely be as private as some people surmise.” While calling the cryptocurrency a “long-duration option on a highly unknown future,” Dalio saw this lack of privacy as a risk as,

“It is, after all, a public ledger and a material amount of Bitcoin is held in a non-private manner. If the government (and perhaps hackers) want to see who has what, I doubt that privacy could be protected.”

Meanwhile, the Bitcoin community is working on a major upgrade to Taproot that will increase privacy on the network. However, for Taleb, the issue is also of volatility as he noted,

“BTC Volatility is not dropping with time/at higher price, exactly what you don’t don’t need.”

Interestingly, Yassine Elmandjra, a crypto asset analyst at Ark Invest, had the perfect solution for Taleb: read Antifragile by Nassim Nicholas Taleb, which says,

“There is no long-term stability without short-term volatility.”

Naval Ravikant, the founder of AngelList and a crypto proponent, also suggested Taleb reconsider by classifying Bitcoin as “an out-of-the-money call option on becoming hard-to-seize digital gold. As such, it will remain extremely volatile for a long time.”

Crypto Twitter (CT) was also quick to chime in and point out how Bitcoin is not a currency, and that volatility is not inherent rather the result of the market being nascent. Qiao Wang of DeFi Alliance said,

“If you bootstrap a new currency or any other type of asset and let the market do its thing, volatility is a certainty until real mainstream adoption. In fact, the only certainty.”

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Author: AnTy

“What Is Bitcoin” was the Answer on Alex Trebek’s Final Jeopardy Episode, But No One Knew

“What Is Bitcoin.” Was the Answer on Alex Trebek’s Final Jeopardy Episode, But No One Knew

More than two months after Alex Trebek’s death, fans of “Jeopardy” got the chance to bid goodbye. Friday’s episode of the quiz show was taped before the legendary game show host died of pancreatic cancer at the age of 80 in November of 2020.

The episode had a 90-second montage remembering Trebek through several decades, and at the end of the episode, before this tribute, Trebek said, “see you again next week.”

The last episode also had something for the cryptocurrency community.

One of the questions featured in the episode was “A Satoshi is the smallest unit in this currency system?”

Of course, the answer is our beloved Bitcoin, where 1 BTC equals 100 million Satoshis, a unit based on the pseudonymous creator of the world’s largest cryptocurrency, Satoshi Nakamoto.

Despite all the attention Bitcoin has got in 2020, no one knew the answer to the question. Someone did make a guess of it being Japanese, but nothing else.

“What is Bitcoin, Bitcoin,” Trebek answered.

The episode was actually shot in late October or early November when the price of Bitcoin was trading around $13,500, and since then, it has exploded to a high of nearly $42,000 — an uptrend of more than 200%.

This only goes on to show that we are still very early!

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Author: AnTy

Brave Browser CEO Confirms The Integration Of Bitcoin Cash (BCH) In Version 0.68

Brave Browser CEO Confirms The Integration Of Bitcoin Cash In Version 0.68

If you were wondering why Bitcoin Cash (BCH) gained 11% this Saturday, we have the answer for you. BCH gained positive sentiments from its sudden and unexpected addition to the Brave Browser. Following the request to Basic Attention Token (BAT) and Brave co-founder Brendan Eich, Bitcoin Cash was added to the browser in no time.

Brave CEO Brendon Eich confirms:

Notably, Twitter user @DavidShares lamented about the fact that upon testing out the Brave Browser, he couldn’t fund it with BCH. Brave Browser acted within 8 hours and integrated BCH.

The open sourced browser is privacy oriented and blocks all ads and tracking technology. Their servers don’t see or store your browsing data, and you can customize your privacy settings browser. They also let you see how many ads and trackers are being blocked on a daily basis, which is a revolutionary feature. Even if you’re alright with advertising it’s refreshing to know when, how, and where you’re being marketed to. Plugins, which have proven to be a security risk, are also disabled by default.

Eich had earlier said:

“With Brave Ads, we are launching a digital ad platform that is the first to protect users’ data rights and to reward them for their attention. Privacy by design and no tracking are integral to our mission to fix the Web and its funding model.”

If you want to download the Brave Browser for yourself, you can do so here. BitcoinExchangeGuide.com is a verified Brave Publisher.

[Author Alert] The author’s opinions above are solely based on their own self-conducted research. Assume any and all authors are using, holding, trading and/or buying cryptoassets mentioned as a portion of his or her financial portfolio. Use information at your own risk, do you own research, never invest more than you are willing to lose.

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Author: Sritanshu Sinha