North America’s First Bitcoin ETF Debuts on TSX with a Whopping 0 Million Volume

The first Bitcoin exchange-traded fund (ETF) of North America has had a roaring start, with $220 million worth of shares exchanged by investors on the first day of going live, which is very well above an ETF’s typical day in Canada.

While there have been several crypto-tracking products in Europe that function like an ETF, they all have been essentially ETPs. Purpose Bitcoin ETF, with a ticker BTCC, is the first Bitcoin product that’s officially labeled as an exchange-traded fund.

The new fund debuted Thursday on Toronto Stock Exchange.

This fund invests directly in “physical/digital Bitcoin,” which is currently trading above $52,000, up 76% YTD.

“There’s sizable untapped interest for a Bitcoin investment that has the benefits of an ETF,” said Todd Rosenbluth, CFRA Research’s director of ETF research, adding it’s unlikely the fund will trade at a significant premium to net asset value (NAV). He added,

“While most ETFs come to market globally with an educational hurdle to overcome, many investors are familiar with what is inside BTCC.”

Meanwhile, the US hasn’t approved a single Bitcoin ETF, although there have been several active filing for the product, including VanEck Associates Corp., NYDIG, and Bitwise Asset Management.

But with the change in leadership at the US Securities and Exchange Commission (SEC), the prospects of the first American Bitcoin ETF are rising. President Joe Biden’s nominee for SEC chairman, Gary Gensler, has the crypto market hopeful and excited as he has taught a class at MIT’s Sloan School of Management called “Blockchain and Money.”

Crypto-related products like Grayscale Bitcoin Trust (GBTC) and Bitwise 10 Crypto Index Fund have seen great demand with $34.22 billion and $900 million in assets under management, respectively.

Read Original/a>
Author: AnTy

Second Bitcoin ETF Goes Live in Canada as US Firms Await SEC Approval

Canada has approved an exchange-traded fund from Evolve Funds Global Group Inc. The country is blazing the trail, while American firms hope 2021 finally becomes the year of the Bitcoin ETFs.

Canada’s crypto space continues to grow significantly as the country marks yet another milestone in adoption.

This week, Evolve Funds Global Group Inc., a financial services firm in the county, secured approval for a Bitcoin exchange-traded fund (ETF)

Evolve Joins the ETF Club

Official documents have shown that the Ontario Securities Commission (OSC), Canada’s financial regulator, has approved Evolve’s launch of its ETFs, providing additional exposure to investors looking to get into the crypto market.

A receipt published yesterday also showed that the company had partnered with Cidel Trust Company, a subsidiary of Cidel Bank Canada, to provide custody, while the Gemini Foundation will be a sub-custodian.

Evolve only filed the prospectus for its ETF earlier this month. Per the filing, the ETF will have two ticker symbols – EBIT for Canadian-denominated units, and EBIT.U for American-denominated units. Both variants will provide exposure to daily price movements of Bitcoin in the respective country’s fiat currency.

The fund will track price data using the Bitcoin Reference Rate from CF Benchmark, which aggregates data from several BTC/USD markets into a single-day benchmark index.

The fund’s prospectus explained that it hopes to provide holders to price movement while reducing tracking error by using specific creation and redemption processes.

To achieve this goal, the fund will invest in long-term BTC holdings purchases through several platforms – including Gemini NuSTAR LLC. Evolve has also gotten conditional approval to list on the Toronto Stock Exchange (TSX).

The fund is available in all of Canada’s provinces and three territories.

Evolve’s fund is only the second ETF to be approved by the OSC this month. Last week, the agency greenlit the Purpose Bitcoin ETF, an investment vehicle from Toronto-based investment firm Purpose Investments. The fund will offer units denominated in USD and CAD, with a 0.75 percent management fee. Like the Evolve fund, it also plans to list units on the TSX.

“The ETF will be the first in the world to invest directly in physically settled Bitcoin, not derivatives, allowing investors easy and efficient access to the emerging asset class of cryptocurrency,” Purpose Investments said in its announcement.

Uncle Sam Lags Behind

Over in the United States, there is some hope that the new administration – and, by extension, new head at the Securities and Exchange Commission (SEC) – will be more welcoming of a Bitcoin ETF.

This year, crypto investment firm Bitwise Asset Management filed for an ETF with the SEC, hoping to make it through for the third time. New York Digital Investment Group (NYDIG), a crypto-focused investment fund, has also made a similar application, with investment banking giant Morgan Stanley acting as an authorized participant.

While several ETF applications have come and gone, none has passed through the SEC’s iron barrier. However, with the new administration showing a propensity towards progressive crypto policies, the anticipation of approval is high.

Read Original/a>
Author: Jimmy Aki

NYDIG Files for a Bitcoin ETF with the SEC with Morgan Stanley as Authorized Participant

Bitcoin trading and custody services provider NYDIG has filed for a Bitcoin exchange-traded fund (ETF) with the US Securities and Exchange Commission (SEC).

Morgan Stanley will serve as the proposed authorized participant, as per the NYDIG’s S-1 filing published on Tuesday. Authorized Participants are expected to sell shares to the public at prices that reflect the value of the Trust’s assets, supply and demand for the shares, and market conditions at the time of a transaction reads the document.

If approved, it will trade on the NYSE Arca exchange.

The investment objective of the Trust is to “reflect the performance of the price of bitcoin less the expenses of the Trust’s operations,” but won’t seek to mirror the performance of any index, says the filing.

The subsidiaries – NYDIG Asset Management LLC is the sponsor of the trust, and NYDIG Trust Company LLC would be the custodian of the digital asset.

“Shareholders who decide to buy or sell Shares of the Trust will place their trade orders through their brokers and may incur customary brokerage commissions and charges. Such trades may occur at a premium or discount relative to the net asset value (“NAV”) of the Shares of the Trust.”

NYDIG is the latest in the line of firms filing for a Bitcoin ETF [Accelerate and VanEck], which many are expecting to be approved this year, while JPMorgan strategists believe a Bitcoin ETF approval would have negative implications for the price in the short-term by eroding Grayscale’s GBTC’s effective monopoly status and causing a cascade of GBTC outflows.

No Bitcoin ETF has been approved by the SEC to date.

Just last week, the first publicly traded Bitcoin ETF was approved in North America by Canada’s financial regulator, the Ontario Securities Commission (OSC).

Read Original/a>
Author: AnTy

Canadian Firm, Accelerate, Files for a Bitcoin ETF (ABTC) on Toronto Stock Exchange

Companies have a growing demand to launch Bitcoin exchange-traded funds (ETFs) as the cryptocurrency market settles above the 41 trillion market cap. Accelerate Financial Technologies, a Canadian fintech firm, is the latest to file and obtain a receipt for a preliminary prospectus with the Canadian financial regulators to launch its Accelerate Bitcoin ETF under the ticker “ABTC.”

In a statement released on Wednesday, Accelerate confirmed a share of ABTC units have filed for listing on the Toronto Stock Exchange but are yet to receive conditional approval on the listing. ABTC will offer U.S. dollar-denominated units and Canadian dollar-denominated units, with a management fee of 0.70%.

Accelerate launched its first Bitcoin fund in 2017, providing its clients with one of Canada’s most innovative and fastest-growing alternative investment solutions. Julian Klymochko, CEO and founder of Accelerate, said, “he has always been an advocate of the asset class” given the coins’ past performance. Klymochko added,

“Bitcoin has been one of the best-performing asset classes on a 1-year, 3-year, 5-year, and 10-year basis, both absolute and risk-adjusted. Given bitcoin’s historical track record and future potential, along with its portfolio diversification properties, we are looking forward to offering investors exposure to the asset class in an easy-to-use, low-cost ETF.”

The demand for Bitcoin ETFs seems to be back after a long layoff in the market following VanEck’s rejected proposals by the U.S. Securities Exchange Commission (SEC) in 2018. The company has once again filed for a Bitcoin ETF, claiming it will hold physical BTC this time.

Read Original/a>
Author: Lujan Odera

CoinShares Poised to Launch Exchange-Traded BITC; Bitcoin Hovers Below $40k’ Inflection Point’

CoinShares Poised to Launch Exchange-Traded BITC; Bitcoin Hovers Below $40k’ Inflection Point’

Based in St.Hellier, Jersey, the digital asset manager Coinshares has announced that it will be launching its own exchange-traded Bitcoin product – BITC. The news comes at a time when Bitcoin has undergone a furious upward rally over the past few months.

According to CoinShares, its physical Bitcoin product is poised to go live as of January 19th, and be listed under BITC on Switzerland’s SIX Exchange. As it becomes listed, BITC will be charged as an expense ratio of 0.98% for users. While listed on the SIX Swiss Exchange, several entities, such as the Ledger-backed venture company Komainu, Nomura Holdings, and CoinShares, will serve as custodians for investors.

Much like other digital assets in its class, the BITC will function as a physically-backed asset, meaning that it tracks and holds Bitcoin BTC 1.46% Bitcoin / USD BTCUSD $ 36,148.00
$527.761.46%
Volume 49.39 b Change $527.76 Open $36,148.00 Circulating 18.6 m Market Cap 672.5 b
12 s CoinShares Poised to Launch Exchange-Traded BITC; Bitcoin Hovers Below $40k’ Inflection Point’ 1 h Nvidia Looks to Fire Up Its Crypto Mining GPU Production; If Demand is Good Enough 3 h Mempool & Bitcoin Fees Holding Steady as BTC Payments Hit New Highs
.

In a statement on the launch of BITC, CoinShares Chief Revenue Officer Frank Spiteri shed light on consumer needs for a higher level of security and due diligence when it comes to digital assets:

“A lot of institutional clients have a very strong due-diligence process, and we wanted to bring to market a best-in-class product to embrace that demand.”

“We are ready, as of January, to embrace the forthcoming demand from institutional clients.”

Bitcoin Holds at $36,000, with ‘Inflection Point’ in Sight

Over the first quarter of 2021, Bitcoin has broken beyond the $20,000 mark in a historic breakthrough – hovering around the $36,000 mark as of the start of this week. While this figure is below the level anticipated by strategists at JPMorgan Chase & Co., they still stress that Bitcoin’s inflection point sits at $40,000 – a price range that many believe BTC must push past.

For many traders, this rally came as a surprise, as it rose and slid 10% away from its record of $42,000 on January 8th.

This ebullience of Bitcoin comes with its own risks, however. If it’s unable to breach the $40k mark, it could suffer from a broader exodus of investors, sending its value into a downturn. This is according to a team of analysts, including Nikolaos Panigirtzoglou. Demand for associated products, like the Grayscale Bitcoin Trust, will help ascertain the future outlook.

According to this team of analysts, if Grayscale can sustain its current pace of $100 million per day over the next weeks, a Bitcoin breakout is more likely to happen.

Bitcoin Skepticism Remains Strong

Investors and analysts are torn on Bitcoins trajectory; plenty remains skeptical of it and its appeal to large institutions.

Axa Investment Managers Chief Investment Officer Chris Iggo is one of many that ‘dread to think’ that risk officers see Bitcoin as a key asset within a core investment portfolio.

“For assets to be considered in a long-term investment portfolio, one should be able to attach some fundamental intrinsic value to them.”

Read Original/a>
Author: James Fox

Swiss Stock Exchange, SIX, Adds A New Bitcoin ETP (BTCE) From Issuer ETC Group

SIX Swiss Exchange, one of the leading marketplaces for crypto products, has welcomed a new Bitcoin exchange-traded product (ETP) provider known as the ETC Group. According to the official announcement, ETC Group will join 5 other ETP providers, scaling the number of listed ETP’s to 34.

The new Bitcoin ETP goes by the ticker ‘BTCE’ and tracking Bitcoin’s price BTC 6.28% Bitcoin / USD BTCUSD $ 38,620.37
$2,425.366.28%
Volume 63.56 b Change $2,425.36 Open $38,620.37 Circulating 18.6 m Market Cap 718.36 b
6 s Swiss Stock Exchange, SIX, Adds A New Bitcoin ETP (BTCE) From Issuer ETC Group 11 min New Zealand’s Financial Markets Authority Warns Crypto Investors to Watch Out for Scams 44 min Howard Marks Warms Up to Bitcoin; His Son Holds A ‘Meaningful Amount’ of BTC For The Family
to inform its performance. Basically, this crypto-oriented product gives exposure to Bitcoin while operating under the regulated SIX exchange marketplace. The ETP is available in GBP, CHF, and USD trading pairs.

Given that the ETP tracks Bitcoin, ETC Group has 100% physically backed the BTCE ETP; in simple terms, the Group owns Bitcoin as the underlying asset to this particular crypto product. Investors can, therefore, participate in the crypto markets by tracking the price of BTC, which is reflective of the ETP performance.

SIX Swiss Exchange head of markets, Christian Reuss, said the milestone would further expose investors to more crypto products,

“We welcome ETC Group to the family of ETP providers offering their products at SIX. With the new product, investors gain access to 100 different crypto products trading on our platform and with this have even more opportunities to diversify their portfolio.”

The exchange also reported that it broke the billion-dollar barrier in crypto products trading turnover to CHF 1 billion in 2020. This figure has increased by over 100% compared to 2017’s turnover, around CHF 525 million; crypto-related trades broke previous records to hit 48,024.

Meanwhile, ETC Group who is the provider of the newly listed Bitcoin ETP, has experience in the innovation of digital asset-backed securities; the firm enjoys backing from heavyweight London-based institutions such as XTX Ventures and ITI Capital.

Read Original/a>
Author: Edwin Munyui

Switzerland’s Six Stock Exchange Lists FiCAS Actively Managed Bitcoin ETP (BTCA)

Switzerland’s leading stock exchange, SIX, is listing an active crypto exchange-traded product (ETP) in a move that will increase digital asset exposure in the Zurich headquartered market. This new product will go by index ‘BTCA’ which derives from its full name, Bitcoin Capital Active ETP. Notably, the BTCA ETP will be issued by Bitcoin Capital AG while FiCAS, the Swiss-domiciled crypto investment firm, acts as the manager.

Ideally, this crypto ETP is meant to create more portfolio balancing positions in a world where digital assets account for over $300 billion in market cap as of press time. Built to be regulatory compliant, the BTCA ETP will expose investors to the top 15 digital assets, giving them an opportunity to actively rebalance their pool and exit positions through fiat.

Consequently, product managers will be able to execute these moves by exchanging BTC for other digital currencies including TRX, XTZ, LTC, EOS, BCH, XRP, and ETH. The main exit fiat currencies will be the U.S dollar, Euro, and Swiss Franc.

The BTCA ETP has been touted to be particularly different since it is not pegged on a single asset’s movement or basket of crypto indexes. Instead, this crypto-based ETP comprises of the digital assets highlighted above and can, therefore, be actively managed based on market fundamentals and technical price action. Some of the fundamental factors that FiCAS noted it would pay attention to are investor sentiment and issues such as a token’s liquidity or the value an underlying blockchain.

As for the technical price action, Ali Mizani Oskui, the founder of FiCAS, is confident of a trusted strategy that he has beaten the market since 2013,

“Personally, I have built my expertise in crypto trading since 2013, with a strong track record in outperforming the market. I look forward to bringing my trading experience to global and institutional markets with this pioneering product.”

This latest crypto-based listing on Six stock exchange adds to the likes of the Wisdom Tree Bitcoin ETP which launched back in December. Switzerland has generally been very progressive in the crypto space, making it an attractive destination for Security Token Offerings (STO’) and now crypto ETP’s are gradually following pace.

Read Original/a>
Author: Edwin Munyui

First Bitcoin ETP on Deutsche Boerse’s Xetra to Provide Investors Another Way to Gain Exposure

ETC Group has launched the first centrally cleared Bitcoin exchange-traded product (ETP) on Deutsche Boerse’s Xetra through white-label platform HANetf, reported ETC Group.

The BTCetc Bitcoin Exchange Traded Crypto (BTCE) will be launched later this month after it receives approval from the German financial regulator, BaFin. It will be passported to the UK, Italy, and Austria.

Back in March, BaFin announced that it is officially recognizing cryptocurrencies as financial instruments. Following this clarification, the agency also shut down the unauthorized Bitcoin ATMs.

The product BTCE tracks the price of the world’s leading digital currency and is 100% physically backed with a total expense ratio (TER) of 2%.

Trading Bitcoin through ETPs means the user won’t have to set up a wallet or manage the keys.

“The crypto sector has been held back by concerns about complexity, accessibility, and governance. With BTCE, we are transporting bitcoin into the fold of mainstream, regulated financial markets,” said Bradley Duke, CEO of ETC Group.

“Investors get the benefits of trading and owning bitcoin through a regulated security while having the optionality of redeeming bitcoin if they choose.”

This Bitcoin ETP however, isn’t the first one as there have been a number of ETF issuers, CoinShares, Amun, and WisdomTree which launched a Bitcoin ETP on the Swiss Exchange SIX last December.

In the US meanwhile, bitcoin ETFs are no way near their launch yet after the SEC rejected eight proposals.

According to Kristin Smith, executive director of the Blockchain Association, “bitcoin ETF is inevitable and that it would provide a well-regulated opportunity for a wider swath of investors to invest in cryptocurrencies.”

“As institutional interest grows, policymakers will have a harder time justifying their positions against a bitcoin ETF. Providing transparent, publicly available cryptocurrency investments is in the interest of the everyday investor, and it’s our view that key regulators will accede to that view sooner rather than later,” she said.

Read Original/a>
Author: AnTy

SEC Not Approving Bitcoin ETF for Price Manipulation Fears while Stock Market & Oil in Free Fall

To date the US Securities and Exchange Commission (SEC) has rejected several Bitcoin-based exchange-traded fund (ETF) proposals, the latest one was shot down just last month with no pending proposal left for approval anymore.

The primary reason behind these rejections has been “fraudulent and manipulative” acts in the industry.

However, as we have been seeing in the past few weeks, the stock market has been experiencing its worst fall since the 2008 financial crisis. Since the weekend, oil prices have been in free fall as well.

“3x Oil ETN dumps ~52% in a day. No regulator can ever again tell me that a Bitcoin ETF may be too volatile or manipulated. Oil, the single most traded commodity, tumbled 30% as a result of a weekend decision from a small non-sovereign/intergovernmental organization (OPEC),” said Gabor Gurbacs, digital asset strategist at VanEck.

A bitcoin ETF would allow investors to invest in the digital currency without having to purchase or store it.

Earlier this year, ShapeShift CEO Erik Voorhees also called for the need for a bitcoin ETF in the light of 41% premium on Grayscale Bitcoin Trust (GBTC).

“Is it fair to say that premium is the cost the SEC has imposed on investors by coercively preventing an ETF from coming to market? Which party is being helped by them, exactly?” said Voorhees at that time.

According to Nate Geraci, host of ETF Prime, in the absence of bitcoin ETF, institutional or accredited investors can “profit from this premium at the expense of retail investors.”

Impeding Innovation

In a recent conversation on CNBC, Chris Hempstead, the director of institutional business development at ETF and hedge fund provider IndexIQ said the Bitcoin ETF has a bigger chance of approval if the retail demand for the product grows.

“I doubt very heavily that it’s going to be the last straw. I think everyone will continue to listen to the feedback and the notes from the SEC, what their comments are, and they will continue to address it,” said Hempstead.

When investor and market demand will push, the SEC will have another look and have different considerations. However, he is not expecting any “significant changes” in SEC’s decisions in the near future at least.

Bitcoin enthusiast Hodl wave feels it’s good that the bitcoin ETF isn’t approved yet as there’s “code to write, infrastructure to build, and sats to stack.”

“Let the Hodler base and maturing market take us to $250k / BTC and let the boomers handle the next 10x,” said Hodl Wave.

In the light of the Wilshire Phoenix’s Bitcoin ETF rejection, SEC commissioner Hester Peirce also published a dissenting statement where she slammed the SEC for its biased treatment of the bitcoin-related products.

Hester whose term at SEC is expiring on June 5 said this conservative approach “impedes innovation in this country and threatens to drive entrepreneurs, and the opportunities they create, to other jurisdictions.”

Read Original/a>
Author: AnTy

$80 Billion Asset Management Firm Files First Blockchain ETF With China’s Security Watchdog CSRC

The China Securities Regulatory Commission (CSRC) has received an exchange-traded fund (ETF) listing application for a project that tracks blockchain-based stocks as underlying assets.

Called the Penghua Shenzhen Stocks Blockchain ETF, the application was accepted on December 24 by the CSRC and was filed by the Shenzhen headquartered asset management company Penghua Fund. What the ETF is trying to do is track and reflect how public stocks listed in Shenzhen and having businesses running in the blockchain industry are performing.

The First Blockchain ETF in China

According to a Thursday Shanghai Securities News report, if the CSRC gives final approval for the application, China would have its very first blockchain ETF for public investors. The Penghua Shenzhen Stocks Blockchain ETF arrived at the same time with Shenzhen Stock Exchange rolling out a Blockchain 50 Index compromising of 50 stocks that are new in the blockchain space and listed on the exchange.

Ping An Bank, One of the Names on the Blockchain 50 Index List

In a December 24 announcement, Shenzhen Stock Exchange said the Blockchain 50 Index tracks companies involved with the blockchain ecosystem and selects the top 50 according to their market capitalization. Ping An Bank, together with software or internet companies that have entered crypto mining, like Wholeasy, are on the index list at the moment. Other big names include Zixin Pharmaceuticals and Midea Group, as the firms in the index reflect a wide cross-section of industries and have many specializations.

7 ETFs Currently Operating in the World

Penghua manages more than 564 billion yuan, which is approximately $80.79, in assets. It holds 10 investment portfolios for national social insurance, 150 public funds and 4 investment portfolios for basic pension insurance. If its blockchain ETF application gets approved, the company will join the list of 7 other blockchain ETFs and will be next to Invesco-Elwood’s fund, which is listed on the London Stock Exchange. A June analyze of ETFs’ performance this year noticed their value surged very rapidly from January to May.

Read Original/a>
Author: Oana Ularu