SEC Commissioner says NFTs Might Fall Within Their Jurisdiction, Gensler Hires Senate Aid for Crypto Policy

SEC Commissioner says NFTs Might Fall Within Their Jurisdiction, Gensler Hires Senate Aid for Crypto Policy

The US Securities and Exchange (SEC) Commissioner Hester Peirce commented on crypto market participants like Coinbase and Senator Cynthia Lummis (R-Wyo.) calling for one regulator to oversee the cryptocurrency market.

While she understands the interest in an exclusive regulator, Peirce, aka ‘Crypto Mom,’ has a problem with it.

“Typically in Washington, when you build another regulator, all you get is all the existing regulators plus one,” she said in an interview with CoinDesk.

Yet again, Peirce also commented on the lack of guidance and “little concrete regulatory progress” from the authorities, saying that all that the SEC has managed to do all this time is “just one-off enforcement actions,” which have further risen under SEC Chair Gary Gensler’s leadership.

“I’m just hopeful that we set our minds to work at building something that makes sense in terms of regulatory clarity, instead of always just falling back on enforcement,” said Peirce, noting that Gensler’s approach to crypto regulation has been far aggressive than his predecessor, Jay Clayton, which shows that he wants to draw clear lines for the industry.

Talking about non-fungible tokens (NFTs), which exploded into popularity this year, Peirce said, “certain pieces of it might fall within our jurisdiction.”

She wants people involved in NFTs to be thoughtful of “potential places where NFTs might run into the securities regulatory regime,” such as fractionalized NFTs, an area she recommended people to be “careful.”

Spot Bitcoin ETF Approval?

Under Gensler, the market got its first Bitcoin futures ETF, but we are still no way closer to a spot bitcoin ETF. Recently, several applications for physically-backed Bitcoin ETFs were delayed or rejected on the ground that the underlying market hasn’t matured and is subject to manipulation.

Peirce called these reasonings “outdated,” and because she doesn’t understand the agency’s reasoning for denying the spot ETF applications, she found it difficult to predict the possibility of a spot ETF approval next year.

“Chair Gensler has said he wants to see platforms registering with us,” Peirce said. “So maybe that’s what it takes for a spot product to get approved.”

This week it was also announced that Gensler had hired a senior adviser specializing in cryptocurrency.

Corey Frayer, who has a degree in International Economics and Finance and spent a decade working as a senior adviser to members of Congress before becoming a senior staffer on the US Senate Committee on Banking, Housing, and Urban Affairs, has been chosen for the role.

This appointment is in line with Gensler’s plan to establish a regulatory framework for crypto in 2022.

Frayer’s new role at the SEC will be about “policymaking and interagency work relating to the oversight of crypto assets.”

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Author: AnTy

Kryptoin’s Spot Bitcoin ETF Is Next in Line for Rejection Before Christmas, After SEC Declines WisdomTree’s ETF

Kryptoin’s Spot Bitcoin ETF Is Next in Line for Rejection Before Christmas, After SEC Declines WisdomTree’s ETF

The US Securities and Exchange Commission (SEC) denied WisdomTree’s application for a spot Bitcoin exchange-traded fund (ETF) this week.

“The Commission concludes that BZX has not met its burden under the Exchange Act and the Commission’s Rules of Practice to demonstrate that its proposal is consistent with the requirement that the rules of a national securities exchange be ‘designed to prevent fraudulent and manipulative acts and practices’ and ‘to protect investors and the public interest,” said the agency in a letter on Wednesday.

The rejection comes seven months after the SEC first started evaluating WisdomTree’s Bitcoin Trust application, filed with the Cboe BZX exchange in March. The watchdog delayed the decision on it twice, first in June and then in July.

If approved, the Trust would have allowed retail and institutional investors to invest in a regulated financial product covering Bitcoin without investing in crypto directly.

The rejection, however, wasn’t unexpected as SEC Chair Gary Gensler has repeatedly shown a preference for a Bitcoin futures ETF, which began trading in the US in October over those physically-backed.

Last month, the SEC also rejected investment firm VanEck’s proposal for a spot Bitcoin ETF. The next in line is Kryptoin’s application which is also “likely to be denied” just before Christmas.

Earlier this week, the largest digital asset manager, Grayscale, which has filed to convert its bitcoin trust (GBTC) to an ETF, sent a letter to the agency arguing that SEC’s repeated rejections are “arbitrary and capricious” since it has approved futures-based ETFs.

Additionally, this could violate the Administrative Procedure Act (APA), which covers the decision-making process of federal agencies, it said.

“The number of plaintiffs with standing to sue the SEC for an APA violation just increased by one,” commented Jake Chervinsky, Head of Policy at Blockchain Association.

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Author: AnTy

Invesco Launches Physically-backed Bitcoin ETPs, WisdomTree Lists 3 Crypto-Basket ETPs in Europe

Invesco Launches Physically-backed Bitcoin ETPs, WisdomTree Lists Three Crypto-Basket ETPs in Europe

After dropping its plan to launch a Bitcoin futures ETF in the US while pursuing a physically-backed ETF, Invesco launched a physically-backed bitcoin exchange-traded product (ETP) in Europe.

The Invesco Physical Bitcoin ETP (BTIC), which tracks the CoinShares Bitcoin Hourly Reference Rate index, is listed on the Deutsche Boerse. The ETP has a fixed annual fee of 0.99%.

Invesco has chosen the UK-based digital asset manager Zodia Custody for the custody of Bitcoin. The Custodian is registered with the FCA as a crypto asset business under the UK Money Laundering Prevention Regulations. Zodia was incubated by SC Ventures, the innovation arm of Standard Chartered, with Northern Trust as its co-investor, which will also act as the administrator for BTIC.

“We have been working on the product since the middle of 2018,” Gary Buxton, head of EMEA ETFs and indexed strategies at Invesco, told ETF Stream.

“In the last two to three years, we have been trying to structure a product that looked, from an institutional point of view, as close as possible to a traditional ETF like our gold structure, and that has been the driver of BTIC’s timeline.”

Asset manager WisdomTree also launched a trio of crypto basket ETPs in Europe, which are listed on the Swiss stock exchange SIX and Frankfurt-based Börse Xetra.

These ETPs track proprietary indices developed by WisdomTree. One of the indexes is the WisdomTree Crypto Market (BLOC) — which provides exposure to the most established crypto assets such as BTC, ETH, BCH, and LTC, but caps Bitcoin and Ether’s combined allocation to 75% to void overexposure to the top two cryptos.

WisdomTree Crypto Mega Cap Equal Weight (MEGA) meanwhile focuses only on Bitcoin and Ether.

WisdomTree Crypto Altcoins (WALT) is another index that focuses on altcoins like Solana, Cardano, Polkadot, BCH, and Litecoin.

BTC 0.94% Bitcoin / USD BTCUSD $ 57,830.11
Volume 32.38 b Change $543.60 Open $57,830.11 Circulating 18.89 m Market Cap 1.09 t
5 h Indian Finance Minister says No Plan to Recognize Bitcoin as a Currency, Meanwhile Indians Want Crypto Taxed but Not Legalized 6 h MicroStrategy Buys 7,002 BTC At An Average Price of About $59k for Over $414 Million 8 h Kimchi Premium & P2P Crypto Trading in South Korea Spikes, FSC Taxing NFTs & Banning NFT Games
ETH 3.51% Ethereum / USD ETHUSD $ 4,447.77
Volume 19.09 b Change $156.12 Open $4,447.77 Circulating 118.54 m Market Cap 527.25 b
9 h Invesco Launches Physically-backed Bitcoin ETPs, WisdomTree Lists Three Crypto-Basket ETPs in Europe 9 h Brace For A Bear Market or Risk Seeking into Year-End? Bitcoin and Ether Recover from Weekend Sell-Off 5 d “Fear” in The Crypto Market And Bitcoin’s Correlation With S&P 500 Climbs to Highest Level of 2021
SOL 1.70% Solana / USD SOLUSD $ 204.23
Volume 2.11 b Change $3.47 Open $204.23 Circulating 304.18 m Market Cap 62.12 b
9 h Invesco Launches Physically-backed Bitcoin ETPs, WisdomTree Lists Three Crypto-Basket ETPs in Europe 6 d Investors Unfazed by Profit-taking as Another Week of Flows Bring YTD Crypto Inflows to $9.2B 1 w Allocate to Cryptocurrencies to “Beat Inflation” And For “Hypergrowth” in Portfolio, says Strategist
ADA 0.26% Cardano / USD ADAUSD $ 1.60
Volume 1.8 b Change $0.00 Open $1.60 Circulating 33.31 b Market Cap 53.37 b
9 h Invesco Launches Physically-backed Bitcoin ETPs, WisdomTree Lists Three Crypto-Basket ETPs in Europe 6 d Investors Unfazed by Profit-taking as Another Week of Flows Bring YTD Crypto Inflows to $9.2B 1 w 13 Consecutive Week of Inflows Send Bitcoin AUM to A Record $56B and Ether’s Past $21B For The First Time
DOT 3.67% Polkadot / USD DOTUSD $ 37.13
Volume 1.28 b Change $1.36 Open $37.13 Circulating 987.58 m Market Cap 36.67 b
9 h Invesco Launches Physically-backed Bitcoin ETPs, WisdomTree Lists Three Crypto-Basket ETPs in Europe 1 w DeFi Hub Acala Network Secures First Spot In Polkadot’s Parachain Auction 1 w “Ethereum Is The Clear Winner,” says ConsenSys CEO as MetaMask Users Grow 38x in Last Year
BCH 0.91% Bitcoin Cash / USD BCHUSD $ 575.65
Volume 1.09 b Change $5.24 Open $575.65 Circulating 18.91 m Market Cap 10.89 b
9 h Invesco Launches Physically-backed Bitcoin ETPs, WisdomTree Lists Three Crypto-Basket ETPs in Europe 2 w “We’re Not Going to Talk About” SHIB Listing, says COO as Robinhood’s Crypto Wallet Waitlist Jumps to 1.6 Million 2 w Cryptocurrencies Are “Providing Another Means Of Payment,” for Criminals and Scammers: BoE Governor
LTC 3.08% Litecoin / USD LTCUSD $ 205.73
Volume 1.78 b Change $6.34 Open $205.73 Circulating 69.08 m Market Cap 14.21 b
9 h Invesco Launches Physically-backed Bitcoin ETPs, WisdomTree Lists Three Crypto-Basket ETPs in Europe 2 w $100 Trillion Market Showing Growing Interest in Digital Gold (Bitcoin) and Web 3.0 (Ethereum) 2 w “We’re Not Going to Talk About” SHIB Listing, says COO as Robinhood’s Crypto Wallet Waitlist Jumps to 1.6 Million

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Author: AnTy

XBTF Dips Amidst Market Turbulence, 3rd Bitcoin Futures ETF Launches with Lowest Fee

XBTF Dips Amidst Market Turbulence, 3rd Bitcoin Futures ETF Launches with Lowest Fee But Fails to Gain Traction

VanEck’s Bitcoin Futures ETF (XBTF) only amassed $9.6 million in AUM compared to ProShares’ (BITO) over $1 billion and Valkyrie’s (BTF) $60 million.

A third Bitcoin Futures exchange-traded fund (ETF) has entered the US market.

The VanEck Bitcoin Target ETF (XBTF) launched on Tuesday, about a month after ProShare’s Bitcoin ETF (BITO) became the first to debut in the US.

BITO’s launch saw record-setting demand by amassing $1.1 billion in just two days, the fastest an ETF has ever done so. However, since then, the pace of its growth has cooled off as its assets remained between $1.3 billion and $1.4 billion in the past several weeks.

Three days after BITO’s launch, Valkyrie’s Bitcoin Futures ETF (BTF) also made its debut and has accumulated just $60 million.

Now, VanEck’s Bitcoin Fund has been launched at a time when the market is experiencing some volatility, with Bitcoin down 12.3% from its all-time high of $69,000 a week back. On Tuesday, Bitcoin’s price fell as low as $58,570 but is currently above $60k.

Since mid-October, Bitcoin has slipped 5.7% while the BITO shares slumped even more by 7.7% because the fund must continually roll forward its future exposure as the contracts aspire and pays a fee to do so.

On its first day, XBTF saw 38,398 shares trading, ending the day at $59.73 per share, a bit below its opening price of $60 per share.

According to VanEck, the ETF has $9.6 million assets under management. While “normally that would be pretty good,” its launch is shadowed by the massive demand seen by BITO at $1 billion on its opening day and even BTF, which did $78 million, said Eric Balchunas, a senior ETF analyst for Bloomberg.

However, the new VanEck ETF carries a lower fee at 0.65% than the other two funds, both of which have a 0.95% fee, which can help its demand.

“It has its work cut out for it. Low fee will help but not in near term. I do see it being successful, but it will take some time,” Balchunas said.

Last week, the SEC rejected VanEck’s attempt to launch a spot Bitcoin ETF, which is seen as superior to Futures ETF as it will directly invest in the cryptocurrency.

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Author: AnTy

Bitcoin Trades As An Inflation Hedge for the First Time Ever Due to Gold’s Disappointing Performance

Surpassing $69,000, Bitcoin hit a new all-time high on Wednesday as it traded as an inflation hedge.

“That was the first time ever BTC traded as an inflation hedge. Crypto natives have big pockets now and thus the ability to change narratives. Perception => Reality,” said trader and economist Alex Kruger.

The sharp move up that came after CPI data showed that US inflation rose to its highest annual rate in 30 years to 6.2% in October didn’t last for long, and Bitcoin soon dropped as low as $62,755.

As of writing, BTC/USD is trading at $64,790.

The same has been the case for Ether, which hit a new high at $4,870, dropped just under $4,500, and is sitting just under $4,700. During this round of volatility, the total crypto market cap surged past $3.1 trillion, only to fall under the $3 trillion market but is yet to climb back above it.

As a result of this volatility, 172,576 traders were liquidated in the past 24 hours for more than $700 million, with Binance accounting for 47.4% of it. However, the leading crypto exchange doesn’t provide complete numbers.

The funding rate on Bitcoin perpetual contracts is now, as a result, normalized, currently negative on OKEx and FTX while being the highest on Huobi at 0.0165%.

Earlier this week, the Crypto Fear and Greed Index, which jumped to a reading of 84, has gone down to 77, representing “extreme greed” still, up from “extreme fear” with a reading of 20 in late September.

“People are looking for places to put their money,” commented JJ Kinahan, chief market strategist at TD Ameritrade, on the move.

Currently, people need an asset to invest in that grows faster than the inflation rate, and crypto is among the very few that really outperform here.

USD & Gold Benefited, but Stocks Didn’t

This new high can clearly be explained through the fundamental argument gaining traction in recent months that Bitcoin is an inflation hedge. Unlike bitcoin, whose fixed supply can’t be inflated by a government or a central bank, the US dollar’s 40% of supply came into existence just in the last 12 months.

“Bitcoin continues to enjoy the rally that began in August and accelerated through September and October,” said Sui Chung, chief executive of CF Benchmarks. After Bitcoin futures ETF drove the cryptocurrency prices last month, this month, it “seems to now be fueled by the sustained inflation that we are witnessing across all the world’s major economies.”

The US consumer price index surged as much as 6.2% on an annual basis, with gasoline leading the increase. The number of Americans filing claims for unemployment benefits also fell to a 20-month low.

In reaction to inflation news, the stock market took a dive, in contrast to Bitcoin’s initial upwards move. The hot US inflation reading inflated the worries that it could renew pressure on policymakers to lift interest rates.

Gold was also the beneficiary of investors seeking inflation hedges as it jumped to a five-month high.

US Treasury yields also spiked higher. While yields on the benchmark 10-year note rose by the most since February, real yields that take inflation into account slid to record lows. The dollar index also hit a 16-month high as it surged above 95.

But Gold Not the Preferred Choice

While gold is also advancing, Christopher Wood, Global Head of Equity Strategy at Jefferies, has taken to Bitcoin as he added another five percentage point allocation to Bitcoin in addition to the existing 5% allocation he made last December.

This increase in Bitcoin’s allocation has been at the expense of gold, which is down 2.44% YTD compared to Bitcoin’s 125% uptrend.

But Wood isn’t giving up on precious metal yet either though he said in his weekly note to investors titled ‘Greed and Fear’ that it is risky for aging gold bugs to ignore the reality of Bitcoin being a competitor to bullion as a store of value.

While Ether is not part of his pension fund portfolio as it is not a store of value, Wood said that ETH would likely continue to outperform bitcoin in the coming months. ETH is up 550% YTD.

The growing mainstream acceptance of crypto and the arrival of Bitcoin ETF in the US “means that it is timely to make a further adjustment to the global portfolio for US dollar-denominated pensions funds which was set up at the end of 3Q02 (third quarter of 2002) as a way of hedging the risk of the collapse of the US dollar paper standard,” said Wood in the note.

“In this respect, the performance of gold this year remains hugely disappointing given how negative rates are in America.”

Besides disputing traditional finance, crypto and blockchain technology also has the “potential to trigger the end of the current dollar paper standard,” said Wood, as according to him, the USD paper standard has already been living on borrowed time ever since former US president Richard Nixon removed the gold backing.

“It is increasingly obvious that central bankers in the developed world are now in a trap of their own making in the sense that they have not been able to escape from unconventional policy in the 13 years since Ben Bernanke first adopted quantitative easing in late 2008.”

In the ETF World

The first Bitcoin Futures ETF’s approval led Bitcoin to start its rally last month, marking the beginning of the bullish Q4, which is now continuing this month.

On Wednesday, both Bitcoin futures ETFs BITO and BTF had their biggest volume days in two weeks, noted Eric Balchunas, a Senior ETF Analyst at Bloomberg, adding that the options volume on BITO has also been massive, already seeing about half the options volume as GLD.

Amidst this, Bitwise Asset Management withdrew its application to list a Bitcoin futures ETF, a move made by Invesco as well, due to expensive roll costs as longer-dated typically trade at a premium to the spot price.

The company, however, did keep its filing for a physically-backed Bitcoin fund.

“Ultimately, what many investors want is a spot bitcoin ETF. We think that’s possible,” wrote Matt Hougan, Chief Investment Officer at Bitwise on Twitter.

“So Bitwise will continue to pursue that goal, and we will look for other ways to help investors get access to the incredible opportunities in crypto.”

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Author: AnTy

Publicly Traded Company Buys 833,000,000 SHIB to Offer its Investors Meme Exposure

Publicly Traded Company Buys 833,000,000 SHIB to Offer its Investors Meme Exposure

Though worth just $50k, notes it is the first publicly-traded company to expose its investors to the SHIB cryptocurrency.

Publicly traded company Corp announced on Monday that it had bought 833 million SHIB tokens earlier this month.

While a good amount of tokens, this investment was worth between $50,000 and $60,000 the day the company bought the tokens. said it bought SHIB tokens on Nov. 3, less than a week after its ATH, when the price was between $0.000071 and $0.0000632.

But the fact that a publicly-traded company has invested in the meme coin, though a crypto-focused company, it’s a good thing for SHIB.

“We believe we are the first publicly-traded company to provide its investors with exposure to SHIB tokens,” commented CEO Andrew Kiguel.

As of writing, SHIB has been trading at $0.00005606, down 35.5% from its all-time high of $0.00008616 hit eleven days back when it surpassed its competitor Dogecoin in market cap. Since then, the $36.8 billion market cap DOGE has taken its place, at 9th place, above Shiba Inu’s 11th place with a market cap of $30.7 bln.

In its official announcement, the company defined Shiba Inu as an Ethereum-based token alternative to Dogecoin (DOGE), which operates on the environmentally friendly Proof-of-Stake (PoS) platform. Unlike Dogecoin, which is just a meme coin, the SHIB ecosystem also supports NFT, GameFi, and decentralized trading through Shibaswap.

“Shiba Inu has evolved to become one of the largest, most popular, and liquid cryptocurrencies in the world with a very loyal following,” said Kiguel adding it was due to the low trading price of SHIB that they were able to purchase a significant number of tokens.

Recently, the SHIB community got some excitement going for it when it was found that the source code of Elon Musk’s electric car maker Tesla’s website had Shib under the payment type section.

ShibaSwap developer also acknowledged this on Twitter but said Musk could very well be trolling the SHIB community, or it could be a code name for some other dog currency like Dogecoin, which Musk favors. Nothing regarding this has been revealed by Tesla yet.

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Author: AnTy

SEC Is “Going Against its Core Mission” by Not Approving A Bitcoin Spot ETF, says US Lawmakers

SEC Is “Going Against its Core Mission” by Not Approving A Bitcoin Spot ETF, says US Lawmakers Soto & Emmer

A physically-backed Bitcoin ETF inherently provides more investor protection than Bitcoin Futures ETF, said the Representatives Darren Soto and Tom Emmer.

US Representatives Darren Soto and Tom Emmer are now calling on the US Securities and Exchange Commission (SEC) and its Chairman Gary Gensler to approve a spot Bitcoin exchange-traded fund.

While the first Bitcoin Futures ETF in the US began trading last month, a physically-backed fund doesn’t seem any closer to reality.

In a letter released on Wednesday, Emmer and Soto questioned the SEC why they haven’t cleared the way for the fund that directly hold the crypto-asset when they are “comfortable” allowing trading in the ETF based on derivatives contracts, which are much more volatile than a Bitcoin spot ETF and impose substantially higher fees on investors.

“Bitcoin spot ETFs are based directly on the asset, which inherently provides more protection for investors.”

Emmer and Soto, both of whom are crypto advocates and authored legislation that would clarify the scope of regulation around the technology within the US, further went to say that by approving future ETFs to trade, SEC has “presumably” changed its view about the underlying spot Bitcoin market as Bitcoin futures are, by definition, a derivative of the underlying Bitcoin spot market.

Take An Example Of Gold

SEC has previously cited concerns about the perceived potential for fraud and manipulation in the Bitcoin markets as a reason not to approve a spot ETF.

Gensler has called crypto a “Wild West” and said that because most of the crypto asset space doesn’t come under an investor protection remit, investors are not protected against fraud and manipulation the way they are in the stock or bond markets they oversee.

The letter meanwhile gave the example of spot-based SPDR Gold Trust (GLD) for spot-based ETFs proven to be more efficient and are strongly preferred by investors.

While investors are allowed to gain exposure to gold through both the spot-based SPDR Gold Trust (GLD) and the futures-based Invesco DB Gold Fund (DGL), in its 15 years trading in the U.S. public markets, GLD has become the largest of all the commodity-based ETFs by holding $55.5 billion in assets compared to just $50.4 million by DGL. That too, without experiencing any material investor protection issues.

SEC In A Position To Approve

Additionally, in the absence of a spot ETF, numerous spot Bitcoin investment vehicles have been offered that have amassed more than $40 billion in assets under management and are held by hundreds of thousands of investors across the country.

Some of these products have voluntarily registered with the SEC to subject themselves to the same reporting standards as ETFs, reads the latter. But because these products are unable to register as ETFs, these products have been trading at steep discounts.

“Permitting futures-based ETFs while simultaneously continuing to deny spot-based ETFs would further perpetuate these discounts and clearly go against the SEC’s core mission of protecting investors.”

Grayscale is a closed-ended fund whose bitcoin trust (GBTC) has $40.62 bln in AUM and has filed for conversion into an ETF. This week, the SEC kicked off the clock by seeking comments on the proposal.

“The SEC is in a position to approve Bitcoin futures ETFs, as reflected by the trading of these products, so it should also be in a position to approve Bitcoin spot ETFs.”

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Author: AnTy

SEC Kicks Off Countdown on Grayscale’s Spot Bitcoin ETF, Futures ETF Mania Put on a Pause by FCM

SEC Kicks Off Countdown on Grayscale’s Spot Bitcoin ETF, Futures ETF Mania Put on a Pause by FCM

The Bitcoin Futures ETF that has been the fastest fund to capture $1 billion in assets has come to a stop. Before the US Securities and Exchange Commission’s (SEC) approval of BITO, several firms had filed for such a product.

At least four Bitcoin ETFs tied to futures were expected to begin trading in October, but ever since then, only two products from ProShares and Valkyrie Investments have made their debut.

Though several funds are expected to start trading in the coming weeks, a similar ETF from VanEck is on hold despite the 75-day window for regulators to reject or delay it has “long passed.”

This delay is reportedly due, in part, to Futures Commission Merchants (FCM), which act as an intermediary between the funds and the exchanges where those contracts trade. FCMs are typically banks that handle the buy and sell orders for futures contracts on behalf of their clients and settle these trades with exchanges, in this case, CME. The immense demand seen for BITO, which accumulated $1.1 billion in just two days, has FCMs reportedly thinking twice.

“The cash influx quickly ate up the balance sheet of the firm acting as an FCM for BITO at its launch, putting regulatory capital limitations against the Bitcoin futures exposure in sight,” reported Bloomberg, citing a person familiar with the matter.

As we saw, the inflows into BITO also had the fund pushing out purchases into further-out futures to avoid breathing front-month position limits. As it did last month, now one trading day into November, the ETF has already purchased December contracts.

SEC Chair Gary Gensler approved futures ETF and not spot-based because he said the former provides more investor protection. Futures contracts trading on regulated CME requires more margin.

“We disagree with them and believe they’ve lost the forest for the trees in their assessment of legal and regulatory minutiae. A spot Bitcoin ETF would be better for all involved,” said James Seyffart, an analyst for Bloomberg Intelligence.

Amidst this, the SEC has officially started the clock for the conversion of GBTC to an ETF, based on which the first possible date for approval if the agency doesn’t delay its decision is December 24.

The regulator published a notice this week, soliciting comments on the proposed rule change filed by NYSE Arca. Most recently, it was seeing feedback on VanEck’s application but continued to extend its deadline.

Last month, Grayscale officially filed to convert its GBTC fund to be converted into an ETF. The world’s largest digital asset manager has been thinking of this since earlier this year and intends to convert all its products into an ETF over time.

Towards this move, the asset manager hired veteran David LaValle as global head of ETFs and roped in BNY Mellon for its planning conversion.

First launched in 2013, Grayscale holds $56.5 bln in assets, and its GBTC fund holds about 3.4% of all Bitcoin in circulation.

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Author: AnTy

Argentina Plans to Launch Bitcoin Futures; US SEC Postpones Valkyrie Spot BTC ETF Deadline to Jan

Argentina Plans to Launch Bitcoin Futures While US SEC Postpones Valkyrie Spot Bitcoin ETF Deadline to Early January

Valkyrie Fund CIO says Bitcoin Spot ETF is not coming until the middle of next year as the regulator tries to “get their heads around what exactly is going on with these exchanges.”

Argentina is now considering launching regulated Bitcoin futures.

Local Futures and Options exchange Matba Rofex submitted a proposal to Argentina’s securities regulator to launch cash-settled Bitcoin futures in Argentine pesos. Talks for the same began a few months ago, but the National Securities Commission of Argentina is yet to rule on the matter.

If approved, this will be the first regulated Bitcoin futures to be launched in Argentina though similar products are accessible through unregulated platforms.

The product would not be aimed at the general public but only at “qualified and specialized investors” and “corporations” who are “informed about the product and its volatility.”

It is likely the company would get the approval as a few months back, the President of Argentina Alberto Fernandez had said that he was open to adopting Bitcoin as legal tender.

“I don’t want to go too far out on a limb […], but there is no reason to say no,” he said at the time.

Rofex, the biggest futures market in Argentina, is not only eyeing futures for Bitcoin but also considering similar products for other cryptocurrencies if there is demand for them.

What About the Bitcoin Spot ETF?

In the US, meanwhile, the first Bitcoin Futures ETF started trading last month. More than one such product made its debut, with ProShares becoming the fastest fund to amass $1 billion in assets while Valkyrie Bitcoin Strategy ETF (BTF) attracted $10 million in the first 5 minutes of trading.

While the exchange-traded fund tied to Bitcoin futures contracts listed on the CME has seen the green light, the spot Bitcoin ETF is nowhere close to reality. This week, the US SEC further postponed its decision on the Valkyrie Bitcoin Fund for an additional 60 days, i.e., January 7, 2022.

“The Commission finds that it is appropriate to designate a longer period within which to issue an order approving or disapproving the proposed rule change 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,” said the regulator in a statement.

In an interview with CNBC, Valkyrie Funds chief investment officer Steven McClurg said he doesn’t see a bitcoin ETF until at least the middle of next year.

“The staff is still trying to get their heads around what exactly is going on with these exchanges. They’re trying to put a little bit more regulatory structure around them before they … move forward with this,” he said.

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Author: AnTy

Australia’s Securities Watchdog (ASIC) says BTC and ETH ‘Satisfy’ All Criteria for ETPs

Australia’s Securities Watchdog (ASIC) says BTC and ETH ‘Satisfy’ All Criteria for ETPs

Australia’s Securities and Investments Commission (ASIC) published its guidance for licensed providers on ETPs linked to crypto on Friday. It is expected to improve transparency and protect investors.

For a crypto to be used for an ETP, it needs to have a mature spot market, regulated futures market, reputable and experienced service providers, a high level of institutional support, and robust and transparent pricing mechanisms.

According to ASIC, Bitcoin and Ether “appear likely to satisfy” all five of the abovementioned factors to “determine appropriate underlying assets for an ETP.”

“We expect the range of non-financial product crypto-assets that can satisfy these factors will expand over time,” the securities regulator added.

The corporate watchdog has also introduced a new “crypto-asset” section in its licensing applications for the holders of underlying assets.

“Crypto-assets have unique characteristics and risks that must be considered by product issuers and market operators in meeting their existing regulatory obligations,” said ASIC Commissioner Cathie Armour.

Recently, a senate report urged Australia to introduce new laws, including a licensing regime for crypto miners and tax discounts to compete with other countries.

This week, an exchange-traded fund (ETF) tracking crypto miners and infrastructure providers also debuted in Australia.

The Cosmos Global Digital Miners Access ETF (DIGA) won’t directly hold any crypto but will include firms like Riot Blockchain Inc., Marathon Digital Holdings Inc., Hive Blockchain Technologies Ltd., and Hut 8 Mining Corp. It will trade on the Chi-X Australia exchange.

According to a report from earlier this month, Australia has the third-highest rate of crypto ownership at 17.8% compared to the global average of 11.4%.

Nearly 1 in 5 adults in Australia own some crypto in 2021 worth A$8 billion ($6.02 billion). Bitcoin is the most popular one as 65.2% of Australians own the leading crypto, followed by Ether (42.1%), Cardano (26.4%), Dogecoin (23%), and BNB (14.6%), found the comparison site Finder in its survey.

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Author: AnTy