1. Home
  2. ETF

ETF

SEC rejects Skybridge’s application for spot Bitcoin ETF

The commission rejected a rule change allowing listing and trading shares of the First Trust SkyBridge Bitcoin ETF Trust, citing similar reasons for disapproving Bitcoin spot ETFs from VanEck in November and WisdomTree in December.

The United States Securities and Exchange Commission, or SEC, has officially disapproved the application for First Trust SkyBridge’s spot Bitcoin exchange-traded fund after several deferments.

In a Thursday filing, the SEC rejected a proposed rule change from the New York Stock Exchange, or NYSE, Arca to list and trade shares of the First Trust SkyBridge Bitcoin ETF Trust. The SEC said any rule change in favor of approving the ETF would not be “‘designed to prevent fraudulent and manipulative acts and practices” nor “protect investors and the public interest.”

The decision follows SkyBridge first applying to list a Bitcoin ETF on the NYSE in March 2021. The SEC twice designated a longer period to approve or disapprove the proposed rule change for the ETF in July and November before reaching its decision today.

In its rejection, the SEC said that the NYSE had not met the requirements of listing a financial product under its rules of practice as well as those of the Exchange Act. Under these restrictions, exchanges seeking to list a BTC ETF need to have “a comprehensive surveillance-sharing agreement with a regulated market of significant size related to the underlying or reference bitcoin assets.”

The NYSE Arca used a $10 million market order example to claim that buying and selling large amounts of Bitcoin (BTC) would have an “insignificant market impact.” The exchange also hinted at Tesla’s $1.5 billion BTC purchase in February as an example of gaining exposure to crypto through the company’s shares, arguing for the need for a different investment vehicle with exposure to BTC as opposed to “imperfect bitcoin proxies” which provide only “partial bitcoin exposure paired with additional risks.”

The commission rejected these claims, citing similar reasons for disapproving Bitcoin spot ETFs from asset manager VanEck in November and WisdomTree in December. To date, the SEC has not approved any ETF with direct exposure to crypto, but has given the greenlight to offerings linked to BTC futures, including ones from ProShares and Valkyrie.

Related: ETFs listed — What’s next for Bitcoin?

A separate decision for a Bitcoin ETF application from the New York Digital Investment Group, or NYDIG, is expected by March 16. The application is still under review after being delayed on Jan. 15.

Crypto Biz: Microsoft enters the metaverse, Jan. 14-20

Bitcoin’s transition to a risk-off asset will propel it to $100K in 2022, says Bloomberg analyst

Mike McGlone, senior commodity strategist at Bloomberg, is convinced that Bitcoin’s transition to digital gold will propel it to new all-time highs in 2022.

Bloomberg analyst Mike McGlone is convinced Bitcoin is on track to reach $100K in 2022, as it completes its transition from a risk-on to risk-off asset. 

While the Fed is planning to raise interest rates to fight inflation, risk-on assets like crypto may suffer, as people would likely prefer to invest in fixed-income assets like bonds.

While this trend may represent a short-term hurdle, McGlone said he is confident that Bitcoin will still appreciate significantly in 2022:

“Bitcoin is in a unique phase, I think, of transitioning from a risk-on to risk-off global digital store of value, replacing gold and becoming global collateral. So I think that's going to be happening this year.”

He said he considers the current bearish sentiment as a positive sign, indicating market consolidation.

The analyst is also bullish on Ethereum, given its key role in providing the main infrastructure for decentralized finance and nonfungible tokens (NFTs). He is also convinced that USD-backed stable coins will proliferate in 2022.

McGlone’s outlook for the broad crypto market is not as optimistic, though, given the large number of speculative bets among altcoins.  

“Simple rules of economics do not favor prices of a market where there's an unlimited supply and ease of entry. That's the crypto market”.

To find out more about McGlone's crypto outlook for 2022, check out the full interview on our YouTube channel and don’t forget to subscribe!

Crypto Biz: Microsoft enters the metaverse, Jan. 14-20

Indian INX exchange reportedly plans to list Bitcoin futures ETF

The India International Exchange is reportedly looking to explore digital asset-based products despite local uncertainty.

Despite the ongoing uncertainty about cryptocurrency regulation in India, local financial firms are backing new ventures aiming to launch Bitcoin (BTC) exchange-traded funds (ETF).

Torus Kling Blockchain, a joint venture between Cosmea Financial Holding, a financial firm backed by former Reliance Capital CEO Sam Ghosh, and Kling Trading India, is preparing to launch Bitcoin and Ether (ETH) futures ETFs in India, The Economic Times reported Thursday.

The company has signed a memorandum of understanding with India’s major stock exchange, the India International Exchange (INX), to launch crypto ETFs alongside investment products tracking major metaverse-related companies listed in the United States.

According to the report, Torus Kling Blockchain is planning to set up the ETFs in the Gujarat International Finance Tec-City (GIFT City) by the end of the current fiscal year in India, or by the end of March 2022. The ETFs are subject to approval by India’s International Financial Services Centres Authority (IFSCA) and other regulators, the report notes.

​​India INX CEO Venkataramani Balasubramaniam said that the stock exchange and GIFT IFSC are looking at “exploring the launch of digital asset-based products” and has already applied with the IFSCA under “regulatory sandbox.”

“This is a part of our product innovation initiative to benchmark offerings with other international financial centers. We will be launching products in these new-age assets in compliance with the prevailing laws after receiving all required post regulatory approvals,” the executive noted.

Cryptocurrencies are a new asset class that is a “tip of the iceberg” of the upcoming fintech innovation and adoption, Torus Kling Blockchain CEO Krishna Mohan Meenavalli said. “Exchange trade products allow trading through regular investment accounts, bypassing the hassle and security concerns of cryptocurrency exchanges,” he said.

In late 2021, India's Securities and Exchange Board reportedly approved Invesco Mutual Fund’s Invesco CoinShares Global Blockchain ETF Fund of Fund, aimed at investing in blockchain industry companies.

Related: Pakistan’s central bank reportedly wants to ban crypto

The news comes amid India INX aggressively extending to other markets, reportedly moving to allow local investors to access trading on Russia’s Moscow Exchange earlier in January. As previously reported, Russian financial giant Sber launched its own blockchain-related ETF tracking Coinbase and Galaxy Digital in late 2021.

Crypto Biz: Microsoft enters the metaverse, Jan. 14-20

Russia’s Tinkoff Bank Enters Crypto Space Through Swiss Company Acquisition

Russia’s Tinkoff Bank Enters Crypto Space Through Swiss Company AcquisitionThe Russian neobank Tinkoff is joining the world of cryptocurrencies with the purchase of a stake in Aximetria, a Swiss-registered and licensed company which provides clients around the world with services and solutions for digital financial assets. Tinkoff Bank Buys Stake in Aximetria TCS Group Holding, the owner of the Russian Tinkoff Bank, has reportedly […]

Crypto Biz: Microsoft enters the metaverse, Jan. 14-20

Bitcoin ETF Launch Hype Fades as Funds Slip in Value, BTC Futures Open Interest Down 38% in 2 Months

Bitcoin ETF Launch Hype Fades as Funds Slip in Value, BTC Futures Open Interest Down 38% in 2 MonthsFollowing the charged-up debut of the Proshares bitcoin exchange-traded fund (ETF), Valkyrie’s bitcoin futures ETF and the Vaneck bitcoin strategy ETF, interest in these types of funds seems to have faded a great deal. After the Proshares bitcoin ETF BITO reached an all-time high on November 10, the ETF is down 39% over the last […]

Crypto Biz: Microsoft enters the metaverse, Jan. 14-20

Here’s Why a Spot Bitcoin ETF is Coming This Year, According to Bitwise CIO Matt Hougan

Bitwise CIO Matt Hougan is optimistic that federal regulators will finally green-light a spot Bitcoin (BTC) exchange-traded fund (ETF) this year. In a new interview on CNBC’s ETF Edge, Hougan says that in terms of fraud risks, there is no material difference between the flagship cryptocurrency and other commodities to warrant the disapproval of Bitcoin […]

The post Here’s Why a Spot Bitcoin ETF is Coming This Year, According to Bitwise CIO Matt Hougan appeared first on The Daily Hodl.

Crypto Biz: Microsoft enters the metaverse, Jan. 14-20

A third of Americans to buy Bitcoin by end of 2022, says Ric Edelman

The future’s bright for Bitcoin according to Ric Edelman, founder of financial advisory outfit Edelman Financial Engines.

Bitcoin bull and founder of Edelman Financial Engines Ric Edelman has made some promising predictions about the future of the seminal cryptocurrency.

In an interview on CNBC program ETF Edge on Jan. 10, Edelman said:

“We’re already at a quarter of that number with 24% of Americans owning Bitcoin. It won’t be that much of a stretch for it to get to one-third. Bitcoin is becoming more and more mainstream. People are hearing about it everywhere–it isn’t going away.”

While 2022 got off to a rocky start, In his view, governments corporations, foundations, pension funds are investing in BTC: “there is major institutional involvement.”

As the author of soon-to-be-released “The Truth about Crypto,” Edelman is a long-standing crypto proponent. In 2019, he described Bitcoin as the first “genuinely new asset class” in 150 years, and back in December 2018, he recommended that investors load up on the orange coin.

In a follow-up interview with CNBC yesterday, he lamented that while he has predicted a Bitcoin spot exchange-traded fund (ETF) for the past seven years, he’s convinced that by 2023, there will be spot ETF approval.

Similar to U.S. Securities and Exchange Commissioner Hester Peirce’s thoughts on the matter, Edelman articulates that the SEC is running out of excuses to say no:

“A lot of the concerns the SEC has have been resolved by the industry through their own maturity, innovation and development. I am confident that we will see the SEC say yes because there is no legitimate reason for them not to.”

Matthew Hougan, chief investment officer at Bitwise Asset Management agreed with him in the second interview.

Related: Crypto mainstream adoption: Is it here already? Experts answer, Part 1

Hougan stated that there would be even more investor protections and a better product thanks to the “cumulative weight of the evidence that will force them to move forward with approval.” Consumer protection provided by an SEC-run ETF is the cherry on top of a slick product.

ETF speculation aside, Edelman is clairvoyant about the banality of Nakomoto's invention in the future. He summed it up succinctly; Bitcoin is “going to be as common in the next couple of years as any other portion of a portfolio.”

Crypto Biz: Microsoft enters the metaverse, Jan. 14-20

Bitcoin ETF decision delayed, SEC commissioner wonders why

In a blow for bruised Bitcoin bulls, the long-awaited NYDIG Bitcoin ETF has suffered another setback.

The United States Securities and Exchange Commission has postponed its decision to approve NYDIG’s spot exchange-traded fund (ETF) for Bitcoin (BTC), delaying until March 16.

In a notice published on Tuesday, the SEC found it “appropriate to designate a longer period within which to issue an order approving or disapproving” the ETF. Upon the news, BTC’s price didn’t flinch, remaining in its tightly coiled range under $47,000.

In a promising turn of events, an SEC bigwig has been vocal in support of a spot ETF. While crypto enthusiasts are used to rejections and delays in BTC spot ETFs, SEC Commissioner Hester Peirce also wonders why it’s taking so long.

In an interview with industry media, the commissioner said, “I can’t believe we’re still talking about this as if, you know, we’re waiting for one to happen [...] We’ve issued a series of denials even recently, and those continue to use reasoning that I think was outdated at the time.”

Related: What has been standing in the way of a pure-Bitcoin ETF?

The NYDIG first proposed an ETF on Feb. 16 last year, while the most recent deadline for giving a thumbs-up was Jan. 15. If approved, it would have become the first spot Bitcoin ETF in the United States. 

U.S.-based investors can gain exposure to BTC through Valkyrie’s latest ETF offering or through the popular ProShares BTC futures contracts fund. However, investors still covet a way of gaining direct exposure to the asset.

Across the border, Fidelity Canada launched a BTC ETF and mutual fund in December, while Brazilian and Latin American investors can tap into BTC spot ETFs. It begs the question: When will a spot ETF land on U.S. shores?

With over 20 BTC-related ETFs awaiting approval or rejection in the U.S. according to ETF.com, surely 2022 is the year.

Crypto Biz: Microsoft enters the metaverse, Jan. 14-20

Crypto funds attracted $9.3B in inflows in 2021 as institutional adoption grew

Crypto investment managers had $62.5 billion in assets under management at the end of 2021, with Bitcoin products attracting sizable investments.

Institutional cryptocurrency funds attracted record inflows in 2021, as demand for digital assets such as Bitcoin (BTC) and Ether (ETH) continued to grow during a volatile and often unpredictable bull market. 

Crypto investment products registered $9.3 billion in inflows during the year, up from $6.8 billion in 2020, according to the latest CoinShares data that was released on Tuesday. Bitcoin funds attracted $6.3 billion worth of capital last year, while Ether products saw inflows totaling nearly $1.4 billion. Multi-asset funds were also popular, attracting $775 million in investor capital.

A total of 37 investment products launched in 2021, compared with 24 that hit the market the year before. Notably, crypto assets that were included in investment products expanded to 15 from nine the previous year.

Grayscale remains the single largest crypto asset manager with $43.5 billion in assets under management as of Jan. 3. Other multi-billion-dollar asset managers included 3iQ, 21Shares, ETC Group, Purpose and ProShares.

Despite massive volatility, cryptocurrencies enjoyed broader mainstream recognition in 2021, with both retail and institutional investors participating in the market. 2021 was the year that crypto became a multi-trillion-dollar asset class, putting it on the radar of fund managers and family offices. Along the way, a slew of BTC exchange-traded products hit the market, including the Purpose Bitcoin ETF in Canada, which offered North American investors spot exposure to the leading digital asset.

Related: Bitcoin open interest matches record high amid predictions of BTC price 'fireworks' this month

Regulators in the United States would also approve several futures-linked Bitcoin ETFs in 2021, opening the door to broader institutional adoption. The Securities and Exchange Commission is expected to deliver its verdict on a pair of physically-backed Bitcoin funds from NYSE Arca and Grayscale in early February.

Crypto Biz: Microsoft enters the metaverse, Jan. 14-20

Sberbank Launches First Blockchain ETF in Russia

Sberbank Launches First Blockchain ETF in RussiaRussian banking giant Sberbank has presented the country’s first exchange-traded fund (ETF) giving investors access to the blockchain space. The new instrument holds securities of companies dealing with cryptocurrencies and the technologies that underpin them. Sberbank Introduces ETF Tracking Blockchain Economy Index The largest banking and financial services provider in Russia and the post-Soviet space, […]

Crypto Biz: Microsoft enters the metaverse, Jan. 14-20