Speculations around Bitcoin $BTC due to imminent #BitcoinETF approval, or not
Posted: January 2nd, 2024, 7:40 pm
One thing that digital assets investors cannot afford to fail at is access to cogent, accurate and timely information. Information drives the markets now and these information are readily available online. However, the information online are subject to easy adulteration, and/or subject to cheap sentiments or bias. that is why the source of the information is vital.
For those interested in Cryptocurrency, it is in the news that the US government has been giving the major Crypto Exchanges in the US (Coinbase and Binance) tough time. The largest is Coinbase, and the details of the crackdown, according to the BBC is as follows:
Is the US trying to kill crypto?
But like many other positive-minded people who know how important blockchain and cryptos are to the US and the future of finance itself the world over, I believe that the US is not trying to kill crypto, but rather trying to achieve at least 2 things:
1. More control and better regulation (ultimately possible protection to investors), and
2. More revenue in terms of taxes as there would be more transparency and reporting.
THE #BITCOINETF STORM HOPEFULS
In the middle of the crackdown which last almost throughout the just ended 2023, a solution seems to have been found in the rising applications for approval of the Bitcoin Exchange-Traded Fund (BitcoinETF).
However, the U.S. Securities and Exchange Commission (SEC) has rejected every application for a spot Bitcoin ETF—which offers direct exposure to direct exposure that tracks Bitcon’s real-time price, rather than through futures contracts. The SEC has repeatedly cited the potential for market manipulation among cryptocurrency traders among its concerns.
In 2023 August, the agency said it needed more time to evaluate several spot Bitcoin ETF applications, including those of BlackRock, Wisdom Tree Funds, Invesco and Galaxy Digital, and Valkyrie Funds. In September, the SEC also made separate announcements for BlackRock, Bitwise, Invesco Galaxy Digital, and Valkyrie applications, as well as for GlobalX and Ark/21Shares ETF, once again delaying the decision.
Bitcoin ETFs
Now, as 2024 rolls in, Bitcoin price seems to be on positive run due to speculations of imminent approval of the #BitcoinETF applications, especially that of single-out BlackRock which many claim has positive ties to the Biden administration.
However, the modus operandi of the approval terms remain unclear. Many are speculating this could ruin Bitcoin while most are hopeful Bitcoin hodlers be ready for an imminent Bull Run following the approval.
One thing I could say is that it is slippery grounds. Care is needed. many exchanges keep preaching the need to continue hodling, while many preach the need to even buy more.
IMMINENT APPROVAL? IS THAT TRUE?
According to CNBC, Spot bitcoin ETF approval may be coming in January 2024, experts say. Here’s what it means for investors.
- Investors await approval for the first U.S. spot bitcoin exchange-traded fund, which would be a milestone for cryptocurrency investors.
- Discussions between the Securities and Exchange Commission and asset managers with pending spot bitcoin ETF applications have advanced.
- Still, bitcoin “remains an extremely volatile and speculative asset,”
Also, as reported by REUTERS, SEC tells spot bitcoin ETF hopefuls to make final changes by year-end -- Sources
Well, like I stated earlier, these are slippery grounds. But what do you think?
For those interested in Cryptocurrency, it is in the news that the US government has been giving the major Crypto Exchanges in the US (Coinbase and Binance) tough time. The largest is Coinbase, and the details of the crackdown, according to the BBC is as follows:
Since middle last year, the heavy crackdown has left many investors and many interested ones to ask:US sues Coinbase as crypto crackdown widens
The US has charged the biggest crypto trading platform in the country with operating illegally, widening its crackdown on the industry.
The Securities and Exchange Commission said Coinbase had acted as a broker, exchange and clearing agency for investments that are subject to SEC rules, without properly registering.
The regulator said that had allowed the firm to escape oversight, including guards against conflicts of interest.
Coinbase said the rules were not clear.
"The solution is legislation that allows fair rules for the road to be developed transparently and applied equally, not litigation," said Paul Grewal, Coinbase's chief legal officer. "In the meantime, we'll continue to operate our business as usual.",,,
The complaint against Coinbase comes a day after the SEC sued Binance, the world's largest crypto trading platform, accusing the firm of mishandling customer funds, artificially inflating trading volume on the site and taking steps to evade US regulation.
Authorities have pledged to police the industry more aggressively using existing rules, arguing that many crypto assets function like other investments which are subject to oversight.
Efforts to increase scrutiny have picked up after last year's dramatic collapse of another major exchange, FTX, which left many customers unable to access their funds.
Is the US trying to kill crypto?
But like many other positive-minded people who know how important blockchain and cryptos are to the US and the future of finance itself the world over, I believe that the US is not trying to kill crypto, but rather trying to achieve at least 2 things:
1. More control and better regulation (ultimately possible protection to investors), and
2. More revenue in terms of taxes as there would be more transparency and reporting.
THE #BITCOINETF STORM HOPEFULS
In the middle of the crackdown which last almost throughout the just ended 2023, a solution seems to have been found in the rising applications for approval of the Bitcoin Exchange-Traded Fund (BitcoinETF).
In 2023 August, the agency said it needed more time to evaluate several spot Bitcoin ETF applications, including those of BlackRock, Wisdom Tree Funds, Invesco and Galaxy Digital, and Valkyrie Funds. In September, the SEC also made separate announcements for BlackRock, Bitwise, Invesco Galaxy Digital, and Valkyrie applications, as well as for GlobalX and Ark/21Shares ETF, once again delaying the decision.
Bitcoin ETFs
POSITIVE SIGNS EARLY 2024?Exchange-traded funds that track the value of Bitcoin and trade on traditional market exchanges.
Now, as 2024 rolls in, Bitcoin price seems to be on positive run due to speculations of imminent approval of the #BitcoinETF applications, especially that of single-out BlackRock which many claim has positive ties to the Biden administration.
However, the modus operandi of the approval terms remain unclear. Many are speculating this could ruin Bitcoin while most are hopeful Bitcoin hodlers be ready for an imminent Bull Run following the approval.
One thing I could say is that it is slippery grounds. Care is needed. many exchanges keep preaching the need to continue hodling, while many preach the need to even buy more.
IMMINENT APPROVAL? IS THAT TRUE?
According to CNBC, Spot bitcoin ETF approval may be coming in January 2024, experts say. Here’s what it means for investors.
- Investors await approval for the first U.S. spot bitcoin exchange-traded fund, which would be a milestone for cryptocurrency investors.
- Discussions between the Securities and Exchange Commission and asset managers with pending spot bitcoin ETF applications have advanced.
- Still, bitcoin “remains an extremely volatile and speculative asset,”
The price of bitcoin
has surged in 2023 as investors await approval for the first U.S. spot bitcoin exchange-traded fund, which would be a milestone for cryptocurrency investors, experts say.
In early December, the digital currency topped $44,000 for the first time since April 2022, and year-to-date gains were above 160%, as of Dec. 21, mostly fueled by optimism for a spot bitcoin ETF.
Meanwhile, discussions between the Securities and Exchange Commission and asset managers hoping to list bitcoin ETFs have advanced to technical details, signaling to some experts that an approval could be imminent.
More than a dozen firms — including BlackRock
, WisdomTree, Valkyrie and others — are waiting for the green light from the SEC, which could come in early January.
Also, as reported by REUTERS, SEC tells spot bitcoin ETF hopefuls to make final changes by year-end -- Sources
What are we playing with here?Dec 22 (Reuters) - U.S. SEC officials met on Thursday with representatives of at least seven companies hoping to launch exchange-traded funds (ETFs) tied to spot bitcoin early in 2024, and told at least two to submit final changes by the end of next week, according to public memos and two people familiar with the discussions.
Among those holding discussions with the Securities and Exchange Commission were representatives from BlackRock (BLK.N) and Grayscale Investments, as well as ARK Investments and 21 Shares.
The SEC is due to decide whether to approve or reject the joint proposal from ARK and 21 Shares by Jan. 10. Most issuers expect the SEC will likely give the green light to several applications at the same time in the days leading up to that deadline.
Executives from two of the firms that met with regulators -- speaking on background because of the confidential nature of the discussions -- said the SEC set a deadline for final updates to their filings of Dec. 29. Regulators told attendees at the meetings that any issuer that doesn't meet that deadline will not be part of a first wave of potential spot bitcoin ETF approvals in early January, both executives said.
The Dec. 29 deadline was first reported by Fox Business.
Representatives of the exchanges on which the new products might trade, including Nasdaq and Cboe, as well as lawyers for the issuers, also attended the meetings, according to meeting memos.
The SEC has rejected multiple applications to launch spot bitcoin ETFs in recent years, arguing that the cryptocurrency market is vulnerable to manipulation. The only cryptocurrency ETFs the agency has approved are tied to bitcoin and ethereum futures contracts that trade on the Chicago Mercantile Exchange.
In recent months, however, there have been increasing signs that regulators are prepared to sign off on at least some of the 13 proposed spot bitcoin ETFs. Some say the catalyst was a federal appeals court decision in August that the SEC erred in rejecting Grayscale's proposed conversion of its trust into an ETF.
The two executives who participated in Thursday's meetings with SEC officials said the agency indicated it could grant approval in the first few business days of 2024. Regulators would do so by informing issuers directly of what date their request to launch the ETF would be "effective;" each proposed ETF could be rolled out on that date.
An SEC spokesperson said the agency does not comment on individual filings.
A number of issuers have made changes to the technical details of their ETF proposals in recent days. Both BlackRock and ARK updated their filings earlier this week to allow cash redemptions, a change requested by regulators, according to people familiar with the matter.
Any final alterations likely would include details of fees. ARK and 21 Shares are the only issuers to have disclosed the fee they propose to levy on their joint ETF, at 0.80%.
Final updates also would include information about the sums that issuers plan to use to "seed" the new ETFs. These are likely to be relatively small amounts, according to those involved in the discussions, but to increase substantially once the ETFs have begun trading. These "seeds" provide capital required for marketmakers to ensure that the initial market for new ETFs is liquid.
Well, like I stated earlier, these are slippery grounds. But what do you think?
