BlackRock revises spot Bitcoin ETF to enable easier access for banks

December 13, 2023 Coin Telegraph

Are Bitcoin ETFs headed for one epic Gensler ‘rugpull?’ Analysts weigh in

October 31, 2023 Coin Telegraph

bitcoin etf

While unlikely, Bloomberg’s ETF analysts conceded that there’s always a possibility that SEC Chair Gary Gensler could be waiting until the last moment to deny the flurry of pending spot Bitcoin ETF applications.

There’s a slim chance the United States Securities and Exchange chief Gary Gensler could pull the plug on spot Bitcoin (BTC) exchange-traded funds in one “amazingly sadistic” move, according to Bloomberg ETF analysts.

In an Oct. 31 tweet directed at senior Bloomberg ETF analysts James Seyffart and Eric Balchunas, ETF commentator Dave Nadig posed whether Gensler may be allowing for spot Bitcoin ETF applications to pile up just to deny them all at once in a “semi-comedic rug-pull.”

“I'm sure it will be much more boring than this -- but sometimes it does feel like this is all a setup for a giant Gensler semi-comedic rug-pull,” said Nadig.

I'm sure it will be much more boring than this -- but sometimes it does feel like this is all a setup for a giant Gensler semi-comedic rug-pull.
— Dave Nadig (@DaveNadig) October 30, 2023

Responding to the comment, Seyffart admitted that the thought of such a scenario has “lingered” in the back of his mind for weeks if not months. “Would be absolutely epic on his part though,” added Seyffart.

Balchunas also piped in, describing a potential rug pull as “amazingly sadistic” and noted that it would probably “trigger [a] wave of lawsuits,” in response.

However, while both analysts argued the scenario was unlikely, Balchunas conceded that a last-minute denial wasn’t entirely off the cards, and is why he and Seyffart won’t raise the odds of an approval to anything above 90%.

Gensler’s own thoughts on a spot Bitcoin ETF have recently made their way into the spotlight, with a video from 2019 showing Gensler describing the SEC’s position on spot ETF products at the time as “inconsistent.”

Meanwhile, the SEC has a long and storied history of denying spot Bitcoin ETF applications, a trend which began as far back as 2017.

This legacy has been carried on by Gensler since he was appointed head of the SEC in 2021. Since then Gensler has delayed and pushed back recent spot Bitcoin ETF applications, citing concerns with investor protections.

In June 2022, the Gensler-led SEC was sued by crypto asset manager Grayscale for rejecting its bid to convert its existing Bitcoin trust into a spot ETF, with a court ruling that the SEC the SEC was “arbitrary and capricious” to reject the application. The SEC did not appeal the decision.

To date, the SEC has only approved ETF applications for Bitcoin and Ether (ETH) futures products, as it claims that spot products do not have the sufficient safeguards to protect investors from market manipulation.

Magazine: Beyond crypto — Zero-knowledge proofs show potential from voting to finance

BlackRock’s iShares Bitcoin ETF mysteriously disappears — then reappears — on DTCC site

October 25, 2023 Coin Telegraph

bitcoin etf

BlackRock’s Bitcoin ETF listing staged a sudden reappearance on the DTCC’s website after disappearing for a few hours.

The ticker for BlackRock's spot Bitcoin (BTC) exchange-traded fund (ETF) IBTC has reappeared on the Depository Trust and Clearing Corporation’s (DTCC) website after disappearing for a few hours.

The price of Bitcoin surged to new yearly highs following the Oct. 23 surprise appearance of IBTC on the website with markets frenzied over the sign of a potential soon-to-come spot ETF approval.

When the ticker quietly disappeared from the site a few hours later, Bitcoin‘s price slumped nearly 3%, indicating that much of the trading activity seems to be hinged on watching ETF-related developments.

*BlackRock’s iShares IBTC ETF is back on the DTCC's site. Source: DTCC*

Senior Bloomberg ETF analyst Eric Balchunas pointed out the drama around the IBTC listing seemed to be responsible for briefly crashing the DTCC website.

Looks like the DTCC website has crashed pic.twitter.com/UyrrfAl2Eu
— Eric Balchunas (@EricBalchunas) October 24, 2023

The DTCC doesn’t typically witness this level of attention, Balchunas explained — which “speaks to the uniqueness and intensity of this entire saga.”

Upon IBTC’s re-listing, one X (Twitter) user highlighted that the previous listing showed a “Y” under the “create/redeem” column while the new listing had an “N.”

One significant change in the DTCC iShares Bitcoin Trust (IBTC) listing I see here. The original listing (on the right) had a "Y" under create/redeem. This one has an "N." What does that mean @EricBalchunas @JSeyff ? pic.twitter.com/Y89rK2TqlI
— Joe Light (@joelight) October 24, 2023

Bloomberg ETF analyst James Seyffart responded to the query saying he believes it indicates BlackRock is “getting everything ready to launch if and when they get an SEC approval.”

“The ‘N’ just means it’s not open for create redeem because it’s not live yet,” Seyffart added.

“It is standard practice for DTCC to add securities to the NSCC security eligibility file in preparation for the launch of a new ETF to the market,” a DTCC spokesperson said in a statement. “Appearing on the list is not indicative of an outcome for any outstanding regulatory or other approval processes."

Bitcoin has held steady following IBTC’s reappearance and is up 0.15% in the last hour according to CoinMarketCap data.

*Bitcoin’s price held firm following IBTC’s reappearance — up 0.15% in the last hour. Source: CoinMarketCap*

Bitcoin is trading at $33,940 marking a 19.1% gain over the past week.

Magazine: Blockchain detectives — Mt. Gox collapse saw birth of Chainalysis

Blackrock’s spot Bitcoin ETF renews optimism, sparks wave of new filings

June 21, 2023 Coin Telegraph

bitcoin spot etf

Investment managers WisdomTree and Invesco have filed for spot Bitcoin ETFs, hot on the heels of BlackRock.

At least two investment firms have made new filings for spot Bitcoin exchange-traded funds (ETF) following investment colossus BlackRock’s move to lodge a similar application for its own spot Bitcoin ETF on June 15.

New York-based asset management fund WisdomTree is the most recent investment firm to lodge a new filing for a spot Bitcoin ETF.

According to a June 21 filing to the United States Securities and Exchange Commission (SEC), WisdomTree requested that the SEC allow it to list its “WisdomTree Bitcoin Trust” on the Cboe BZX Exchange under the ticker “BTCW.”

WisdomTree has filed for spot bitcoin ETF h/t @NateGeraci pic.twitter.com/JwXj8rTs2X
— Eric Balchunas (@EricBalchunas) June 20, 2023

WisdomTree has applied for a spot Bitcoin ETF twice before. Its first application was rejected by the SEC in December 2021. It’s second application was rejected once again in October 2022, with the financial regulator citing similar concerns of fraud and market manipulation. At the time of publication, WisdomTree oversees approximately $83 billion in assets.

One of the key differences with BlackRock’s recent filing to the SEC is that it intends to enter into a “surveillance sharing agreement” with the Chicago Mercantile Exchange (CME) futures markets.

BlackRock’s proposal cites the SEC’s approval of a Bitcoin futures fund by investment advisory firm Teucrium. That ruling noted that the CME “comprehensively surveils futures market conditions and price movements on a real time and ongoing basis in order to detect and prevent price distortions, including price distortions caused by manipulative efforts.”

This has been echoed in WisdomTree’s filing as well, which states that it too is willing to enter into such a surveillance agreement with “an operator of a US-based spot trading platform for Bitcoin.”

Less than four hours after WisdomTree filed its application, global investment manager Invesco “reactivated” its application for a similar product.

And now Invesco has reactivated their 19b-4 for their spot ETF https://t.co/D2zTpqrqJH
— Eric Balchunas (@EricBalchunas) June 20, 2023

According to the 19b-4 document — which informs the SEC of a proposed rule change — Invesco requested that the financial regulator allow its “Invesco Galaxy Bitcoin ETF” product to be listed on the Cboe BZX exchange.

The filing notes that a spot Bitcoin ETF which uses “professional custodians and other service providers,” removes the need for investors to rely on “loosely regulated offshore vehicles” in turn, allowing for investors to more readily “protect their principal investments in Bitcoin.”

While the SEC is yet to approve a single spot Bitcoin ETF product, Bloomberg senior ETF analyst Eric Balchunas said that “BlackRock breathed new life into the race” in response to his own tweet concerning the WisdomTree filing.

Fun fact: BlackRock's record of getting ETFs approved by the SEC is 575-1. That's another reason this is so big, they don't play around. https://t.co/f7YIhGRmLf
— Eric Balchunas (@EricBalchunas) June 16, 2023

Additionally, Balchunas said that crypto investors may have good reason to be optimistic when it comes to BlackRock’s move, sharing that the investment firm has a “575-1” record of getting ETFs approved by the regulator.

In addition to the recent activity from WisdomTree and Invesco, rumors have begun circulating that the multi-trillion-dollar fund manager Fidelity Investments may also be looking to capitalize on the newfound frenzy for spot Bitcoin ETFs.

According to a June 19 tweet from Arch Public co-founder AP_Abacus, Fidelity Investments, which manages some $4.9 trillion in assets — may look to file for its own spot Bitcoin ETF. Alternatively, Abacus notes that the investment firm could make an offer on Grasyscale’s GBTC ETF product.

Cointelegraph reached out to Fidelity for confirmation but did not receive an immediate response.

Magazine: Bitcoin is on a collision course with ‘Net Zero’ promises

BlackRock Bitcoin ETF