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Coinbase provides custody for DigitalX’s new Australian Bitcoin ETF

The US crypto exchange Coinbase is providing Bitcoin custody services to Australia’s DigitalX, the issuer of the second spot BTC ETF in the country.

Cryptocurrency exchange Coinbase is doubling down on its support of global spot Bitcoin exchange-traded funds (ETF), becoming a custody partner for a Bitcoin ETF in Australia.

Australia’s DigitalX, the issuer of the spot Bitcoin ETF called DigitalX Bitcoin ETF (BTXX), has selected Coinbase as the custody provider for its spot Bitcoin (BTC) fund, according to the official BTXX fact sheet.

Launched on July 12, the DigitalX Bitcoin ETF aims to provide returns that mirror the performance of Bitcoin by maintaining long-term holdings of BTC.

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These crypto ETFs are ‘call options’ on the US elections

Hashdex files S-1 for ETF to hold Bitcoin, Ether and potentially others

The Hashdex Nasdaq Crypto Index US ETF could see other cryptocurrencies added down the track, subject to all the necessary approvals.

Digital asset manager Hashdex has taken another step in its proposal to offer a combined spot Bitcoin and Ether exchange-traded fund in the United States.

On June 24, the firm submitted an S-1 registration statement for its Hashdex Nasdaq Crypto Index US ETF, which will track certain cryptocurrency assets in the Nasdaq Crypto US Settlement Price Index — a daily closing value of the Nasdaq Crypto Index which measures the performance of a significant portion of the digital asset market.

The fund currently only seeks to include Bitcoin (BTC) and Ether (ETH), but the filing suggests that more assets could be added later.

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These crypto ETFs are ‘call options’ on the US elections

Solana ETF in the works: 3iQ files for new ETP in Canada

The Solana product, QSOL, seeks to provide shareholders with staking yield accrued from the Solana network.

Digital asset manager 3iQ has filed for a Solana (SOL) exchange-traded product listing on Canada’s Toronto Stock Exchange (TSE) — a North American first if approved, the firm claims.

“We have submitted a preliminary prospectus for The Solana Fund (QSOL) in Canada in relation to an initial public offering,” 3iQ posted to X on June 20.

If approved, it would be the first Solana ETP listed in North America, the firm noted.

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These crypto ETFs are ‘call options’ on the US elections

Coinbase CEO: Every Institution Is Now Starting to Hold Crypto

Coinbase CEO: Every Institution Is Now Starting to Hold CryptoCoinbase CEO Brian Armstrong says “every institution is now starting to hold crypto,” emphasizing that “the asset class will be a standard part of every diversified portfolio.” Moreover, the executive noted that institutions will eventually be using crypto in other ways, such as “holding it on their balance sheet, paying their vendors, [and] doing payroll.” […]

These crypto ETFs are ‘call options’ on the US elections

$1,600,000,000,000 Asset Manager Submits Application for Spot Market Ethereum Exchange-Traded Fund (ETF)

,600,000,000,000 Asset Manager Submits Application for Spot Market Ethereum Exchange-Traded Fund (ETF)

Global investment giant Franklin Templeton has submitted an application to the U.S. Securities and Exchange Commission (SEC) for a spot market Ethereum (ETH) exchange-traded fund (ETF). The investment firm, which currently reports $1.6 trillion in assets under management (AUM), was one of 11 applicants who received approval from the SEC last month to launch a […]

The post $1,600,000,000,000 Asset Manager Submits Application for Spot Market Ethereum Exchange-Traded Fund (ETF) appeared first on The Daily Hodl.

These crypto ETFs are ‘call options’ on the US elections

BlackRock’s Bitcoin ETF ‘is the best thing to happen’ to BTC, or is it?

Galaxy Digital CEO Mike Novogratz was among those over the moon with the news, others warn it could be the start of a major institutional takeover.

BlackRock’s latest filing for a spot Bitcoin (BTC) trust will drive investors’ confidence in Bitcoin and may even be “the best thing that could happen” to BTC, according to some crypto industry observers — but others warn of a hidden cost.

During an interview on June 16, Galaxy Digital CEO Mike Novogratz said the approval of BlackRock’s ETF application would be “the best thing that could happen to $BTC.”

“I say a Hail Mary every night that Larry Fink and @blackrock pull off a @bitcoin ETF," Novogratz reportedly said on a Fox News segment.

Meanwhile, cryptocurrency analyst James Edwards of Finder.com — a financial product comparison website — told Cointelegraph that the timing of BlackRock’s filing should provide “confidence” in both Bitcoin as an asset and also Coinbase in its upcoming legal battle fight with the SEC:

“BlackRock's willingness to press on with a Bitcoin ETF at a time when the SEC is on a warpath against crypto is very telling. It shows confidence in Bitcoin’s status as a commodity – rather than a security,” he said, adding:

“It’s unlikely that BlackRock would push forward with an ETF of this nature without serious consultation with regulators and confidence in Bitcoin's future legal status.”

BlackRock’s intention to use Coinbase Custody to control funds should also be seen as a massive confidence booster for Coinbase as it prepares its legal defense, Edwards explained.

He added that BlackRock — the world’s largest asset manager — likely wouldn’t partner with Coinbase had they not been “confident” in Coinbase’s legal position.

The downside

Others argue that the traditional investment giant's latest moves undermine the "ethos" of decentralized cryptocurrencies, or, that the company may find a way to profit from retail investors.

Investor Scott Melker explained in a June 16 interview that such an approval would be a disservice to crypto-native innovators who built the industry:

“As good as this may be for institutional adoption of the space, it kind of violates the ethos, it is a bit of a dishonest push away from the people who built the industry in the United States.”

Cinneamhain Ventures partner and Ethereum bull Adam Cochran believes that BlackRock will swoop in on the “discounted coins” of retail investors, a theory also shared by Melker.

Steven Lubka, a managing director at Swan Bitcoin shared a similar view, predicting that BTC will reach $1 million, but few retail investors will reap the rewards because the bulk of BTC will be owned by BlackRock, Goldman Sachs, and other ETF issuers.

Melker added that Wall Street firms will continue to move into the space and that U.S. regulators will likely “choose them” over incumbent platforms.

Related: Bitcoin ETFs: A beginner's guide to exchange-traded funds

ARK Invest, Grayscale, Fidelity, Galaxy Digital, VanEck, Valkyrie Investments, NYDIG, SkyBridge and WisdomTree are among the other investment firms that have applied to the SEC for similar Bitcoin and cryptocurrency ETFs.

Since the news was first reported, the price of BTC has increased 2.2% to $25,584 at the time of writing.

Interestingly, the Fear & Greed Crypto Index increased from 41 to 47 — leaving the fear zone — following the news of BlackRock’s filing.

Magazine: Crypto regulation: Does SEC Chair Gary Gensler have the final say?

These crypto ETFs are ‘call options’ on the US elections

Bitcoin’s Third Largest Wallet Changed Hands, but Onchain Data Shows It’s Likely the Same Owner

Bitcoin’s Third Largest Wallet Changed Hands, but Onchain Data Shows It’s Likely the Same OwnerLast year and during the first half of 2022, speculators assumed the third-largest bitcoin address was a ‘mysterious whale,’ even though the wallet had shown strong characteristics of being a cryptocurrency exchange. The address known as “1P5ZED” has since been replaced by another address, after the wallet started to transfer its entire bitcoin balance in […]

These crypto ETFs are ‘call options’ on the US elections

Coinbase CEO Says Company Holds 2 Million Bitcoin, Reminds People Firm’s ‘Financials Are Public’

Coinbase CEO Says Company Holds 2 Million Bitcoin, Reminds People Firm’s ‘Financials Are Public’According to Coinbase CEO Brian Armstrong, as of Sept. 30, 2022, the company holds 2 million bitcoin worth $39.9 billion. The news Armstrong shared comes at a time when the general public is looking directly at exchange balances following FTX’s turbulent collapse. Coinbase Co-Founder Shares Company’s Q3 Shareholder Letter — Says as of Sept. 30, […]

These crypto ETFs are ‘call options’ on the US elections

GBTC Manager Insists the ‘Holdings of Grayscale’s Digital Asset Products Are Safe and Secure’

GBTC Manager Insists the ‘Holdings of Grayscale’s Digital Asset Products Are Safe and Secure’On Nov. 18, 2022, at 5:47 p.m. (ET), Grayscale Investments’ official Twitter account shared information on the safety and security associated with Grayscale’s digital asset products. The update from Grayscale follows the recent FTX collapse that has shaken crypto investors, and Digital Currency Group’s (DCG) Genesis pausing the firm’s lending unit in terms of withdrawals […]

These crypto ETFs are ‘call options’ on the US elections

Grayscale cites security concerns for withholding on-chain proof of reserves

Grayscale shared a letter from Coinbase Custody attesting that each of Grayscale’s crypto products is fully backed, but stopped short of providing the wallet addresses.

Cryptocurrency investment product provider Grayscale Investments has refused to provide on-chain proof of reserves or wallet addresses to show the underlying assets of its digital currency products citing “security concerns.”

In a Nov. 18 Twitter thread addressing investor concerns, Grayscale laid out information regarding the security and storage of its crypto holdings and said all crypto underlying its investment products are stored with Coinbase’s custody service, stopping short of revealing the wallet addresses.

“We know the preceding point in particular will be a disappointment to some,” Grayscale added, “but panic sparked by others is not a good enough reason to circumvent complex security arrangements that have kept our investors’ assets safe for years.”

The move by Grayscale comes as pressure mounts on crypto business to introduce proof of reserves in the wake of FTX’s liquidity issues and subsequent bankruptcy.

Some Twitter users hit out at Grayscale’s view that security concerns surrounded its decision to withhold its wallet addresses, with one commenting the addresses of Bitcoin (BTC) inventor Satoshi Nakamoto are well known and are of higher value to attackers, “yet Satoshi's Bitcoin remains secure.”

Grayscale shared a letter co-signed by Coinbase CFO, Alesia Haas, and Coinbase Custody CEO, Aaron Schnarch, that broke down Grayscale’s holdings by its investment products and reaffirmed the assets “are secure”, that each product has its “own on-chain addresses” and the crypto always belongs “to the applicable Grayscale product.”

Grayscale added that each of its products is set up as a separate legal entity and “laws, regulations, and documents [...] prohibit the digital assets underlying the products from being lent, borrowed, or otherwise encumbered.”

Related: Nickel Digital, Metaplex and others continue to feel the impact of FTX collapse

Grayscale is known for its Grayscale Bitcoin Trust (GBTC), a security tracking the price of Bitcoin, it also has products tracking the price of other cryptocurrencies such as Ether (ETH) and Solana (SOL).

Investor concerns come as Genesis Global, serving as the liquidity provider for GBTC announced on Nov. 16 that it had halted withdrawals citing “unprecedented market turmoil” resulting in significant withdrawals from its platform that exceeded its current liquidity.

Genesis is a part of the crypto-focused venture capital company Digital Currency Group (DCG) which also owns Grayscale. GBTC is trading at a discount of nearly 43% compared to its net asset value in part due to investor speculation on GBTC’s exposure to Genesis.

These crypto ETFs are ‘call options’ on the US elections