Cboe Planning A Re-Entry Into The Market By Acquiring Regulated Futures Exchange ErisX

Cboe is Planning A Re-Entry Into The Market By Acquiring Regulated Futures Exchange ErisX

Cboe Global Markets wants back in on the cryptocurrency market, and the latest step towards this direction is entering into a definitive agreement to acquire Eris Digital Holdings, a US-based spot exchange, and CFTC regulated futures exchange and clearinghouse.

In May this year, Cboe had filed for investment giant Fidelity’s Bitcoin ETF, saying concerns about potential manipulation of a Bitcoin ETF have been “sufficiently mitigated.”

Cboe had started feeling the FOMO last year when in December, it announced that it would launch a suite of tools, including crypto indexes, real-time ticks, and historical data.

The platform was the first to launch Bitcoin futures, along with CME, at the peak of the 2017 bull market. But after going through the 2018 bear market, in March 2019, Cboe delisted Bitcoin futures, when the price of BTC was about $4,000. Two years later, this March, Chairman, and CEO Ed Tilly said they “haven’t given up on” bitcoin futures.

Today, Bitcoin is trading at an all-time new high above $67,000.

While CME is leading regulated Bitcoin futures space with open interest on an all-time high of $4.77 billion with the first Bitcoin Futures ETF launch, Cboe is making a reentry through ErisX.

It plans to operate the crypto-asset business as Cboe Digital.

“I am confident that together we can not only meet the growing demand for institutional and retail trading solutions but also push the boundaries of digital asset innovation and unlock its next phase of growth.”

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Author: AnTy

Bonfida DEX Restricts Access to US-based Users

Serum-based, Bonfida decentralized digital asset exchange (DEX) is the latest decentralized finance (DeFi) project to put the US in its restrictive region list.

According to Bonfida’s terms of use, the Bonfida DEX is not available to residents of the USA. With this, the US has joined the Democratic People’s Republic of Korea, Belarus, the Central African Republic, the Democratic Republic of Congo, the Crimea region of Ukraine, Cuba, Iran, Libya, Somalia, Sudan, South Sudan, Syria, Yemen, and Zimbabwe.

“If you intend to enter into any transactions involving derivatives, you also confirm that you are not located in, incorporated or otherwise established in, or a citizen or resident of, a Derivatives Restricted Jurisdiction,” said the exchange.

Last month, the decentralized exchange aggregator 1Inch also started geofencing US IP addresses.

As we reported, 1Inch also includes the US in its list of restricted territories and blocks people from these regions from using a Virtual Private Network (VPN) to access the website. The platform said that it had been planning to launch a new product in the US in compliance with the regulatory requirements.

DEX dYdX has also updated its terms of service to mention that if the user is a US citizen or resident, they are required to physically settle all trades made using dYdX and fully close and physically settle all open margin positions within 28 days.

US-based users are also not permitted to access or trade any of the platform’s advanced features, including Bitcoin trading and perpetual contracts on dYdX. They are also not to use a VPN to modify your internet protocol address or otherwise circumvent or attempt to circumvent this prohibition.

Earlier last month, dYdX users celebrated a massive DYDX token airdrop worth thousands of dollars for many people. However, those who traded on the platform using an IP address within the United States were not eligible for the airdrop or to participate in its staking program.

“This has become almost standard now. People don’t need the US market to win anymore, so US regulators no longer have leverage with truly global founders. The future has already escaped their grasp,” commented Balaji Srinivasan, former CTO of Coinbase and General Partner at Andreessen Horowitz.

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Author: AnTy

Australian Stock Exchange to List Crypto-Focused ETF on ‘Growing’ Investor Demand

BetaShares is launching a crypto-focused equities exchange-traded fund (ETF) on the Australian Stock Exchange (ASX).

BetaShares Crypto Innovators ETF, however, does not offer exposure directly to cryptocurrencies, rather the ETF will provide exposure to digital asset businesses like exchanges and mining operations.

The ETF aims to track the Bitwise Crypto Industry Innovators Index, underpinning another ETF listed on the NYSE.

“It was a very lengthy process,” said BetaShares chief executive Alex Vynokur about the process to have the ETF approved for trading.

“But the genuine investor demand is growing and it makes sense for us to offer them exposure to the most important development since the launch of the internet.”

While the ASX was hesitant to allow crypto-related businesses on the exchange, it is currently assessing the suitability of Bitcoin-related ETFs under the AQUA rules that cover underlying investments, liquidity requirements, price transparency, and qualifications of the issuer.

The Australian Securities and Investments Commission is also finalizing a consultation process to explore the potential for crypto ETFs to trade on the local bourse.

Vynokur said an ETF structure provides the much-needed investor protection which investors don’t get when they buy cryptocurrencies on unregulated venues.

“These are all things the regulators are working through now.”

“It doesn’t have to be about speculating on the value of Bitcoin, or Ethereum, or Ripple.”

The new ETF, CRYP, will focus on pure-play crypto companies and those companies that hold crypto assets on their balance sheets along with diversified companies with crypto-focused business lines.

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Author: AnTy

Ark Invest Joins the BTC Futures ETF Race, Valkyrie Updates Prospectus for Potential Approval

Cathie Wood’s Ark Throws its Hat in the Bitcoin Futures ETF Ring, Valkyrie Updates Prospectus for Potential Approval This Month

Cathie Wood had joined the race of Bitcoin Futures exchange-traded fund (ETF) with its ARK 21Shares Bitcoin Futures Strategy ETF (ARKA).

The ETF plans to invest Bitcoin futures contracts on commodity exchanges, according to a filing with the Securities and Exchange Commission (SEC).

Alpha Architect, an issuer of ETFs, submitted the filing with Switzerland-based 21Shares AG’s US affiliate listed as the sub-advisor. Ark Investment will provide marketing support for the sub-advisor.

“It’s a no brainer for Ark because they will likely be able to instantly seed it with about half a billion that they currently have in GBTC,” said Eric Balchunas, a senior ETF analyst for Bloomberg Intelligence.

“Ark also has a strong base of younger investors who probably would use this as well. Closest thing to a surefire hit as you’ll see.”

Ark Investment has already given its name for the physically-backed ETF — ARK 21Shares Bitcoin ETF (ARKB) that would track the performance of the leading cryptocurrency as measured by the S&P Bitcoin Index, according to a June filing.

But all the attempts to get a physically-backed Bitcoin ETF since 2013 have failed so far, with the SEC rejecting every one of them. The hope for a Bitcoin ETF has rejoiced this month due to SEC Chair Gary Gensler hinting his support for a futures-backed ETF that offers greater investor protection for months now.

The optimism around the Bitcoin ETF approval is what’s driving the Bitcoin price action right now, which has surged to its highest level since May. Open interest on Bitcoin futures at CME has also hit a new ATH.

Ever since Gensler announced that he would be more open to approving an ETF submitted under the Investment company Act of 1940, nine Bitcoin futures ETF applications have been filed so far.

Everyone in the crypto industry is now eagerly awaiting October 18th, the day the SEC has to decide on ProShares Bitcoin Strategy ETF.

“No news from SEC over the next week is a positive for a potential ETF launch in our view,” said James Seyffart, ETF analyst at Bloomberg Intelligence.

However, only three filings are limited to futures, including Valkyrie Bitcoin Strategy ETF, whose deadline is on October 25th, BlockFi Bitcoin Strategy ETF, whose deadline doesn’t come until the end of the year on December 22nd, five days later, Ark21 SharesBitcoin Futures Strategy ETF.

Ark’s filing is actually the second one after Valkyrie that doesn’t seek to invest in Canadian-listed funds that provide exposure to bitcoin. Bloomberg’s Balchunas said the rumor is that SEC “wants them to be strictly futures,” which puts Valkyrie’s chance of getting an approval higher than ProShares.

On Wednesday, Valkyrie also updated their bitcoin futures ETF to add the ticker BTF, but information on fees still hasn’t been added. These types of updated prospectus filings, Balchunas said, “typically only happens when ducks in row ready for launch.”

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Author: AnTy

Crypto Exchange KuCoin Confirms December Deadline for Removal of Chinese Traders

Crypto Exchange KuCoin Confirms December Deadline for Removal of Chinese Traders

The Chinese government is making progress in its mission to eradicate cryptocurrencies from its economy.

The move by the government has prompted companies to distance themselves from cryptocurrency-backed transactions in mainland China to avoid any rift with Beijing.

One of such companies, KuCoin, whose popularity originated in China, has told its mainland Chinese users to leave its platform.

Tougher Checks to Comply With Chinese Laws

KuCoin announced that its Chinese users have until December 31 to move their funds to other platforms. The crypto exchange explained that it is looking to “protect the interest and safety of its users.

KuCoin said all Chinese residents on its platform would need to send their funds elsewhere.

The announcement by KuCoin came after the Peoples’ Bank of China (PBOC) sent out a directive asking several other agencies to band together and outlaw crypto transactions of any kind. The PBOC’s statement has already sent out a firestorm, with crypto companies leaving China and even traditional tech companies cutting ties with crypto.

Similarly, the e-commerce giant Alibaba confirmed last week that it would stop selling any crypto-related items on its platform. Items ranging from tutorial videos, mining equipment, and more will be blocked from Alibaba’s platform going forward.

No Way Back for Chinese Users This Time

KuCoin explained that it has always looked to comply with regulations from the Chinese government. The company added that it conducted a “technical self-inspection” on September 24 – just days after the PBOC’s announcement came out. The inspection was to ensure that its business complied with China’s regulatory requirements.

This is not the first time the Chinese government will be cracking down on crypto companies and operations. The government first hit crypto with sanctions in 2017.

China’s new directive has had significant effects on its crypto space. News sources have reported that up to 18 crypto companies have left the country, many of whom will be leaving their customers stranded. While KuCoin is giving Chinese users till December, some other companies haven’t been so lenient.

CoinEx, another cryptocurrency exchange, announced last Thursday that it would close all Chinese users by October 31. Besides shuttering accounts of Chinese residents, CoinEx would also close accounts of customers with KYC details linked to mainland China. Chinese accounts on CoinEx with zero assets have already been disabled at press time.

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Author: Jimmy Aki

SEC Chair Signals Support for BTC Futures ETF, Crypto “Certainly of A Size” to Have Same Safeguards

SEC Chair Yet Again Signals Support for Bitcoin Futures ETF, But says Crypto “Certainly of A Size” to Have Same Safeguards as Banking

“A lot of people are likely to get hurt,” said Gary Gensler, asking crypto platforms that accepted funds from investors and offered returns to “consider the securities laws carefully.”

Hopes for getting a Bitcoin Futures ETF approval this year have further risen with the US Securities and Exchange Commission Chairman Gary Gensler’s latest comments on the investment product, where he reiterated his positive stance on such exchange-traded funds.

In his prepared remarks for the Financial Times’ “The Future of Management North America Conference,” Gensler repeated that there had been several filings under the Investment Company Act with regard to ETFs seeking to invest in CME-traded bitcoin futures.

According to him, the ’40 Act provides “significant investor protections” for mutual funds and ETFs.

“I look forward to staff’s review of such filings.”

Ever since Gensler first made these positive remarks towards Bitcoin Futures ETF in August, several firms, including Valkyrie Investments, VanEck, Proshares, and Invesco, have filed applications for such an ETF.

An ETF makes the product less costly, more transparent, and more tax-efficient than mutual funds for the investors.

Talk to the Agency

Besides supporting Bitcoin Futures ETF, Gensler also continued this criticism of crypto trading and lending platforms that promise returns to investors, which he says won’t avoid the SEC regulation. According to him, these products need the same safeguards against fraud and manipulation as bank depositors or purchasers of mutual funds or insurance policies. He said,

“This crypto space is now certainly of a size that without those investor protections of banking, insurance[and] securities laws [and] market oversight, I do think somebody is going to get hurt.”

“A lot of people are likely to get hurt.”

Recently, Coinbase publicly shared that SEC is threatening to come after it if it launches its Lend product which it at the time decided to postpone to October only to drop it all together later.

Earlier this week, at the Code Conference in Beverly Hills, California, Gensler had declined to comment on remarks made by Coinbase CEO on SEC engaging in “sketchy behavior,” but on Wednesday, he noted that some companies have “said things publicly about some of those conversations.”

Crypto platforms that accepted funds from investors and offered returns “should consider the securities laws carefully and talk to the agency about getting registered,” Gensler said, adding, “Many of them should [register] now — or should have even in the past.”

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Author: AnTy

Miner Returns $2.2 Million In Fees Mistakenly Paid by Crypto Exchange Bitfinex

Miner Returns $2.2 Million In Fees Mistakenly Paid by Crypto Exchange Bitfinex

Cryptocurrency exchange Bitfinex paid a whopping $23.57 million in transaction fees to deposit $100,000 in what appears to be a bug in the system.

The exchange was actually moving the amount in stablecoin Tether (USDT) to the decentralized exchange DeversiFi, which shared the mishap on Twitter. DeversiFi is a non-custodial exchange that was spun out of Bitfinex in 2019, which offers access to DeFi protocols “without paying gas fees.”

“At 11:10 UTC on the 27th September, a deposit transaction was made using a hardware wallet from the main DeversiFi user interface with an erroneously high gas fee,” tweeted DeversiFi.

The DEX noted that it is investigating the cause as to how this occurred and assured that no customer funds on the platform were a risk. “This is an internal issue for DeversiFi to resolve. Operations are unaffected,” it added.

Paolo Ardoino, CTO of Bitfinex and Tether, had also assured that no user will be affected by this and that in the worst-case scenario, the exchange will take care of it from the company’s funds.

But since then, the situation has been resolved, and DeversiFi noted that the miner of block 13307440 had returned 7626 ETH that was incorrectly paid as a transaction fee.

“The blockchain is immutable. But the revolution we are part of is defined by our values as humans,” it said.

“Funds have been sent back to the source address,” Ardoino also confirmed.

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Author: AnTy

China’s Leading Crypto Exchange, Huobi, Custodies More than $1 Billion in Assets

China’s Leading Crypto Exchange, Huobi, Custodies More than $1 Billion in Assets

Huobi Technology Holdings Limited holds more than $1 billion worth of crypto assets in custody.

The largest cryptocurrency exchange in China noted on Thursday that at the end of August, the assets under Huobi Trust Hong Kong’s custody exceeded $1 billion.

Huobi Trust Hong Kong is a licensed trust company registered in Hong Kong which provides virtual asset custody services. In April, it successfully registered as a trust company in Hong Kong and is now fully licensed under the Hong Kong Trust and Company Service Provider (TCSP) license.

The company said it had been actively developing its trust and custodian business provided by this Hong Kong entity along with Huobi Trust US.

“Since the beginning of the year, virtual assets represented by Bitcoin have set off a wave of enthusiasm to investors.”

Among its clients include hedge funds, market makers, digital banks, virtual asset exchanges, and licensed lenders.

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Author: AnTy

Amplify Files for a Crypto and DeFi ETF; Invesco and Galaxy Digital Goes for a Physical Bitcoin ETF

Amplify Files for a Crypto and DeFi ETF, While Invesco Galaxy Digital Goes for a Physical Bitcoin ETF

Bloomberg analyst Mike McGlone expects a futures-backed Bitcoin ETF to be approved first, and it could be as soon as “the end of October,” which he said would open a “window for a massive amount of money inflow.”

While the US Securities and Exchange Commission (SEC) refuses to approve a Bitcoin ETF at this point, companies remain as hopeful as ever and continue to file for the same.

This week, Invesco and Galaxy Digital filed a joint registration statement for a physically-backed Bitcoin ETF.

Invesco already has its application for a futures-backed Bitcoin ETF before the SEC, for which ruling is expected in October.

In fact, with SEC Chair Gary Gensler signaling his openness to a futures-linked ETF that offers more investor protection, the market is hoping for approval on such an ETF this year.

According to Bloomberg Intelligence Commodity Strategist Mike McGlone, it’s only a matter of time that the first Bitcoin ETF gets approved.

In an interview, McGlone talked about Canada extending its lead over the US by approving Bitcoin and Ether ETFs and that capital is flowing from the US to Canada’s institutional crypto products.

But he doesn’t expect the US lawmakers to miss this out for much longer, and this could happen “potentially by the end of October.” According to him, it is likely to be a futures-backed product first, adding that it would still open a “legitimization window for a massive amount of money inflow.”

Meanwhile, Amplify is going after the broad crypto market and decentralized finance (DeFi) sector. The Amplify Decentralized Finance & Crypto Exposure ETF (the “Fund”) application wants approval for the fund to invest in Bitcoin futures, Canadian Bitcoin funds, and companies that hold more than 50% of their net assets in BTC, Ether, or any other “liquid” cryptocurrency.

“Initially, the Fund expects to directly invest up to 15% of its total assets in Grayscale Bitcoin Trust (‘GBTC’) and Canadian bitcoin ETFs investing in bitcoin.”

The Fund also seeks to invest at least 40% of their net assets in the DeFi marketplace that includes Decentralized Finance Blockchain Miners, Digital Asset & Decentralized Finance Integrators, Decentralized Finance Applications, and Pre-Revenue Decentralized Finance Companies.

However, the prospectus isn’t completed yet, with key roles still to be filled, such as a bitcoin custodian.

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Author: AnTy