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ARK’s amended spot Bitcoin ETF filing is a ‘good sign’ of future approval

October 12, 2023 Coin Telegraph

21shares

ARK Invest and 21Shares amended spot Bitcoin ETF filing seemingly addresses earlier concerns highlighted by the SEC, which is a good sign of progress, according to Bloomberg's ETF analysts.

A recent amendment to ARK Invest and 21Shares’ joint spot Bitcoin (BTC) exchange-traded fund (ETF) application could be seen as a “good sign” of progress and impending approvals.

An amended Oct. 11 filing to the Securities and Exchange Commission for approval adds additional information about the proposed spot Bitcoin ETF, including practices for how the fund will custody assets and determine asset values.

Bloomberg senior ETF analyst Eric Balchunas said the changes could be in direct response to concerns the SEC has asked ETF issuers to address.

“It means ARK got the SEC's comments and has dealt with them all, and now put [the] ball back in [the] SEC's court,” Balchunas said. “[In my opinion] good sign, solid progress.”

There's 5 extra pages in new S-1 but the new stuff is sprinkled throughout like the two above egs. So what does this mean? It means ARK got the SEC's comments and has dealt with them all, and now put ball back in SEC's court. IMO good sign, solid progress.
— Eric Balchunas (@EricBalchunas) October 11, 2023

Balchunas said the changes are “sprinkled throughout,” making the new filing five pages longer, adding in a separate post that “none of the comments were that new or insurmountable.”

Changes included ARK noting the fund’s net asset value (NAV) calculations are not in line with the Generally Accepted Accounting Principles (GAAP) — an accounting standard used by the SEC, said Balchunas.

The new filing also clarifies the ETFs assets, held by Coinbase Custody, are in “segregated accounts [...] And are therefore not commingled with corporate or other customer assets."

This is also new (and again something we heard SEC asked about): "The Trust’s assets with the Custodian are held in segregated accounts on the bitcoin blockchain, commonly referred to as “wallets,” and are therefore not commingled with corporate or other customer assets." pic.twitter.com/57TmnNi1lE
— Eric Balchunas (@EricBalchunas) October 11, 2023

Fellow Bloomberg ETF analyst James Seyffart added in and X post the latter change signals that ARK and others are communicationg with the SEC about what the regulator wants cleared up.

“Good sign for future approval IMO,” he added.

Van Buren Capital general partner Scott Johnsson noted another new addition was a comment that if BTC is increasingly used for illegal purposes and if Bitcoin mining’s environmental impact causes it to be restricted then the ETF’s value could fall.

Still chuckling a bit at this “electricity usage” risk factor. Ark couldn’t even be bothered to put in a coherent header summary or more than a couple short sentences. You know the convo w/ the SEC was like “oh yea, good call Mr. SEC attorney, this is definitely material /s” https://t.co/unIArFDKl8
— Scott Johnsson (@SGJohnsson) October 12, 2023

Johnsson said based on ARK’s amendments it “doesn't look like the agency is putting up any unnecessary roadblocks via disclosure review.”

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CrossTower to acquire institutional prime brokerage BEQUANT

November 30, 2022 Coin Telegraph

Acquisition

It comes after months of window shopping by CrossTower as crypto companies are still looking to expand despite the crypto market downturn.

Cryptocurrency exchange CrossTower Inc has agreed to buy digital asset trading platform BEQUANT, which comes after months of window shopping by CrossTower for crypto companies, including a recently revised offer for Voyager Digital's assets.

The Nov. 28 acquisition will provide CrossTower with over 600 new professional exchange clients in addition to its existing clientele. The incoming clients are based across the United States, Europe, Asia, and Latin America and are collectively making over $400 billion annually.

The purchase comes as CrossTower CEO Kapil Rathi stated on Nov. 24 that CrossTower has long been on the lookout to buy digital asset companies with a “good set of customers” and a “good balance sheet,” which included a second look at the now-bankrupt cryptocurrency lending platform Voyager, who is back on the market after its initial agreement with FTX recently fell through.

Rathi said the access to over 600 exchange clients through the BEQUANT acquisition would also better position the firm to assist in re-establishing industry trust, which has been significantly dampened by recent events with FTX.

CrossTower’s deal was backed by London-based financial services firm Lydian Group, with CEO Gerard Lopez stating that he hoped CrossTower’s acquisition would lead the way in bringing more professionalism and transparency to the industry.

CrossTower set to introduce ‘industry-first’ ESG Crypto Fund

The trading platform also announced that they will soon offer an Environment, Social, and Governance (ESG)-focused Crypto Fund which will invest in “promising” companies that demonstrate a sufficient level of social and governance accountability in addition to efficiently managing energy costs.

While CrossTower didn’t disclose any potential companies that may become part of its new fund but the trading platform said it would look for companies that aren’t fueled by “greed” and instead prioritize “the democratization of finance.”

CrossTower added it would look for digital asset companies with a “proper board structure [...] checks and balances, and traditional business expertise” adding the crypto companies “in trouble” today are due to “human failure.”

The announcement of CrossTower’s industry-first ESG Crypto Fund comes as a number of industry leaders told recently Cointelegraph that The Ethereum Merge, which took place on Sept. 15, would become a “big factor” behind institutional investment decision-making, particularly for firms like Fidelity Investments, BlackRock and Goldman Sachs who have ESG mandates.

Interestingly, a June study by investment management firm Morningstar found that 80% of investors who hold ESG-themed investments also own cryptocurrencies as reported by CNBC.

By contrast, the study also found that only 22% of non-ESG investors own cryptocurrencies.

Report: Reddit Co-Founder Alexis Ohanian’s Seven Seven Six Targets $177M for a Crypto-Centric Fund Called Kryptós

August 31, 2022 Bitcoin.com

Venture Capital Titan Andreessen Horowitz Launches Massive $4.5 Billion Crypto Fund Amid Bear Market

May 25, 2022 The Daily Hodl

$3B flows to Metaverse and Web3 gaming this month as A16z’s tips in $600M

May 19, 2022 Coin Telegraph

A16Z

“GAMES FUND ONE” will invest in game studios, consumer apps and game infrastructure providers with a16z saying the industry has “solved many of the problems” needed to make a Metaverse.

Venture capital firm Andreessen Horowitz (a16z) has launched a $600 million fund dedicated to gaming startups with a focus on Web3 saying it believes “games infrastructure and technologies will be key building blocks of the Metaverse.”

Dubbed “GAMES FUND ONE” the fund will invest in three main areas: game studios, consumer applications which support player communities with Discord used as an example, and gaming infrastructure providers.

The a16z team said “the coming Metaverse will be built by games companies, using games technologies” and that the industry has already “solved many of the problems that need to be solved to create the Metaverse.” It believes games will become the “dominant way people spend time.”

The move by a16z marks nearly $3 billion committed by venture funds and gaming industry giants into Web3 gaming or Metaverse projects since mid-April. Venture firm White Star Capital raised $120 million for its decentralized finance (DeFi) and gaming focused fund along with a $200 million allocation to blockchain gaming projects by Framework Ventures both taking place in April 2022.

Metaverse projects are also gaining massive sums from gaming industry titans. Last month Epic Games, creator of the popular Fortnite title, raised $2 billion to create a metaverse with funding from Sony and LEGO.

The team at a16z pointed at the billions of dollars in revenue thatgames such as Minecraft generate, using the open world game as an example of a title that has retained a long-term active community which functions more like a social network. Minecraft is the current all-time highest selling game and has seen 173 million average monthly players over the past 30 days according to figures from game statistics platform ActivePlayer despite it being released almost 11 years ago.

The fund is the first by a16z solely dedicated to games but the firm has backed successful game related projects in the past includingng virtual reality (VR) company Oculus and game developer Zynga saying the investments “cemented our belief that games require a specialized focus.”

Joining the fund were founders of game development companies and popular games such as the co-founder of Riot Games Marc Merrill, cofounders Aleks Larsen and Jeffrey Zirlin of Sky Mavis which owns the popular Axie Infinity blockchain game and Kevin Lin, founder of gaming company Metatheory which received $24 million in a funding round led by a16z.

Crypto venture capital firms see surging assets under management

April 5, 2022 Coin Telegraph

A16Z

Filings reveal the massive amount of assets that crypto venture funds are managing, Andreessen Horowitz’s (a16z) crypto funds were also disclosed to be worth around $9 billion.

Venture capital (VC) firms focused on Web3 projects and crypto businesses are accumulating billions of dollars worth of assets under management as more capital is injected into the sector.

The assets under management figure for Web3 and crypto investment firm Paradigm has recently been revealed. Filings show that the firm has $13.2 billion in assets, a growth of 343% compared to the $2.98 billion reported in a filing in December 2020.

The filings were reviewed by business journalist Eric Newcomer. Writing for his newsletter, he looked at recent applications with the U.S. Securities and Exchange Commission (SEC) for some of the biggest venture capital firms in the Web3 and crypto sectors.

To be registered as an “investment advisor,” these firms must disclose their regulatory assets under management with the SEC.

The applications also revealed that Andreessen Horowitz's (a16z) crypto-focused funds totaled around $9 billion. Overall, its total assets under management for all investments topped $54.6 billion.

Sequoia Capital and Tiger Global also posted some big numbers, with $85.5 billion and $124.7 billion respectively, Tiger seeing a 58% increase from $79.1 billion in its filings from last year.

The findings come after a recent report that venture capital money is pouring into crypto. In 2021, $25.2 billion worth of venture capital funding went to global blockchain startups, a 713% increase from the $3.1 billion in 2020.

Expectations could be greater for 2022. In January, a16z revealed that it is gearing up to raise $4.5 billion for its latest fund focused on cryptocurrencies. Venture capital firms are also keenly looking at Solana’s NFT offerings for further opportunities.

The Solana network offers significantly lower transaction costs than Ethereum at faster speeds, and a few Solana-based gaming and NFT companies are seeing big money from VCs, according to reports.

Fractal, a Solana NFT gaming marketplace, raised $35 million on Friday, April 1st, in a round led by Paradigm with participation from a16z. Magic Eden, a popular Solana NFT market, raised $27 million in a Series A round in mid-March, also led by Paradigm, with other funds coming from Sequoia Capital.

Crypto investor Katie Haun raises $1.5 billion for Web3 venture fund

March 23, 2022 Coin Telegraph

Crypto investor Katie Haun raises .5 billion for Web3 venture fund

A16Z

The largest-ever venture fund for a solo female partner will invest in Web3 projects through two funds, a $500 million early-stage fund, and a $1 billion acceleration fund.

Katie Haun, crypto investor and board member for Coinbase and OpenSea announced that she had raised $1.5 billion for her new fund, Haun Ventures.

On Tuesday, March 22, Haun posted an article on Twitter, briefly introducing the firm and sharing that the funds would be used to invest in Web3 projects.

Introducing @HaunVentures, a firm built for the next generation of the internet. We’ve raised $1.5 billion across two funds to invest in web3. An exciting first step, but the real work begins now. https://t.co/tBeE4OEJkD
— Kathryn Haun (@katie_haun) March 22, 2022

The firm will invest through two funds, a $500 million early-stage fund, and a $1 billion acceleration fund. The two funds represent the largest debut on record for investment vehicles led by a female General Partner, according to data from PitchBook.

Haun stated that the firm will invest in “every layer of the web3 tech stack”, and seeks to back projects in both their early and growth stages, adding that the firm aims to have the projects it supports reach over 1 billion people.

The firm is also interested in shaping public opinion and government policy regarding web3 projects and crypto.

“We will partner with our portfolio to lead a global campaign for web3 that combats misperceptions, engages policymakers, highlights positive use cases, and wins the hearts and minds of leaders across all sectors.”

The Haun Ventures team consists of Chris Lehane, former Communications VP at Airbnb and Press Secretary for Vice President Al Gore, Sam Rosenblum, Former Director of Business Development at Coinbase, and Jared Cohen, Founder of Jigsaw, Google’s tech incubation company, serving as an advisor.

Haun has also brought talent with her from Andreessen Horowitz, with Tomicah Tillemann and Rachael Horwitz, both former partners, and Nick Pacilio, its former Head of Media Relations for crypto also joining her team.

Previously, Haun served as a federal prosecutor for 10 years at the U.S. Department of Justice (DOJ) where she says she created one of the government’s first cryptocurrency task forces:

“In the course of that work, the vast potential of these technologies quickly became clear. Like any tool, they could be used for good or for bad, but we had just started to scratch the surface of the good.”

Haun left her role at the DOJ and pursued a career in crypto, joining the board of directors for Coinbase in 2017, and in June 2021 co-led with Andreessen Horowitz a $2.2 billion crypto-focused venture fund, the largest ever of its kind at the time.

In December last year, Haun announced her departure from Andreessen Horowitz to focus on her own crypto and Web3 focused fund.

Venture capital firms are increasing their focus on crypto, last year research found that VC funding reached new heights in every quarter of 2021, with $25.2 billion going to blockchain startups, a 713% increase from $3.1 billion in 2020.

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