Over 200K BTC now stored in Bitcoin ETFs and other institutional products

June 3, 2022 Coin Telegraph

Bitcoin

Bitcoin ETPs now have more BTC under control on behalf of clients than ever before.

Bitcoin (BTC) investment vehicles are seeing “gargantuan” inflows this month in a fresh sign that traders’ appetite for BTC exposure is mounting.

Data from monitoring firm Arcane Research published this week shows that Bitcoin exchange-traded products (ETPs) now have record high BTC under management.

"Happier days" for Bitcoin ETPs as buyers pile in

Despite BTC price action failing to draw in buyers at over 50% below all-time highs, not everyone is feeling risk-off.

According to Arcane’s data, Bitcoin ETPs have seen a flurry of interest from institutional investors both this month and last.

In total, Bitcoin ETPs, which include products such as the ProShares Bitcoin Strategy exchange-traded fund (ETF), now have 205,000 BTC under their control — a new record.

“While the May recovery was strong in ETPs, June has seen even happier days!” Arcane analyst Vetle Lunde told Twitter followers while uploading the numbers on June 2.

“The first two days of June have seen gargantuan net inflows to Purpose, 3iQ Coinshares, and BITO, pushing the global BUM to a new all-time high of 205,008 BTC.”

*Bitcoin ETF investment chart. Source: Vetle Lunde/ Twitter*

In the first few days of June alone, more than 7,000 BTC flowed to ETPs, almost as much as for the entirety of May, which itself saw an impressive 9,765 BTC rise.

“Massive $BTC inflows into Bitcoin ETFs in June already,” Zhu Su, cofounder of asset manager Three Arrows Capital, reacted.

Little reprieve for GBTC

The Purpose Bitcoin ETF, the first Bitcoin spot price ETF to launch anywhere in the world, meanwhile had $1.294 billion worth of assets under management as of June 3, data from on-chain monitoring resource Coinglass confirmed.

*Purpose Bitcoin ETF assets under management chart. Source: Coinglass*

Things remained somewhat less rosy for industry stalwart the Grayscale Bitcoin Trust (GBTC), however.

According to Coinglass data, GBTC continues to trade near a record discount to the Bitcoin spot price, currently 28.68% as of June 3.

Previously, Cointelegraph reported on Grayscale’s ongoing battle to convert GBTC to a Bitcoin spot ETF.

*GBTC holdings, discount vs. BTC/USD chart. Source: Coinglass*

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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SEC likely to allow Bitcoin futures ETF to trade next week: Reports

October 15, 2021 Coin Telegraph

Bitcoin

The long-awaited launch of a Bitcoin exchange-traded fund could finally arrive on Monday.

The long wait for a Bitcoin exchange-traded product could soon be over according to sources reported by financial media giant Bloomberg.

Citing “people familiar with the matter” Bloomberg has reported that the U.S. Securities and Exchange Commission is poised to approve the first Bitcoin futures exchange-traded funds in the country.

The anonymous sources said:

“The regulator isn’t likely to block the products from starting to trade next week.”

A futures product is likely to be the first one approved since they are viewed more favorably by regulators. Futures are governed by the Chicago Mercantile Exchange (CME) and require investors to put down cash on margin to trade them.

Bloomberg senior ETF analyst, Eric Balchunas, is confident that the ProShares Bitcoin Strategy ETF could be the first one launched as the decision deadline is Oct. 18. The Invesco Bitcoin Strategy ETF may be approved the following day barring any further delays by the SEC.

In a tweet on Oct. 15, the analyst stated: “Pretty much done deal. Expect launches next week,” before adding the “odds now over 90% IMO.”

JUST IN: Bitcoin futures ETFs said not to face any opposition at SEC, according to multiple sources confirming this (aside, I’m hearing same thing). Pretty much done deal. Expect launches next week. Nice late night story from @kgreifeld @VildanaHajric @benbain pic.twitter.com/axT6ME4MeI
— Eric Balchunas (@EricBalchunas) October 15, 2021

SEC chair Gary Gensler has voiced favor for funds based on CME-traded Bitcoin futures filed under a 1940s law, adding more weight to the potential of a long-awaited approval.

On Oct. 14 Cointelegraph reported that Ark Invest had teamed up with 21Shares to file for an ETF that will trade in Bitcoin futures indicating that they too were confident that product approval is imminent.

Deadlines for ETF applications from VanEck and Valkyrie are also approaching on Oct. 25 so there could be a slew of them hitting exchanges over the next couple of weeks.

Monday, Oct. 18 could be a big day for Bitcoin prices as markets have been bubbling up in anticipation of this landmark event. At the time of writing, BTC had just spiked to $59,600 before a slight retreat according to CoinGecko.

Bitcoin futures ETF will likely be delayed until 2022 says research firm CFRA

October 13, 2021 Coin Telegraph

Bitcoin

Regulatory uncertainty could be the cause for yet more delays in the approval of long-awaited Bitcoin exchange-traded products.

Crypto asset investors may have a longer wait for a Bitcoin futures exchange-traded product according to Todd Rosenbluth, the senior director of ETF and mutual fund research at research firm CFRA.

Speaking on CNBC’s “ETF Edge” on Oct. 12, Rosenbluth stated that while a Bitcoin futures product is likely to be the first crypto ETF to gain approval, he cautioned that the current clouded regulatory situation could cause further delays.

There are more than 20 crypto asset-based exchange-traded products waiting for Securities and Exchange Commission approval, and the regulator is yet to pass any, instead kicking the can down the road on multiple occasions.

The researcher suggested that regulators could be waiting for all of these products to meet their goals so that they can be approved at the same time to avoid a “first-mover advantage,” before adding:

“It’s possible — in fact, we think it’s likely — that we’re going to see a delay of a Bitcoin futures ETF until 2022, until the regulatory environment is more clear.”

Van Eck Associates CEO, Jan van Eck, commented that the primary concern for the SEC is the discrepancy between actual Bitcoin prices and the price of the futures contract, in addition to the potential of funds getting too large.

When there is a Bitcoin rally, futures strategies can underperform by as much as 20% a year, he stated before adding “the SEC wants to have some visibility into the underlying Bitcoin markets.”

Van Eck also suggested that the regulator needs to gain more control over crypto trading which it appears to be attempting with its recent threats against Coinbase and the exchange’s stablecoin lending product. Other popular trading platforms such as Robinhood are already regulated and registered as broker-dealers.

Any speculation over a possible delay could hit the Bitcoin price as analysts had suggested that big investors may be buying up BTC in anticipation of an ETF approval this month. The asset has rallied 37.5% over the past fortnight to reach a local top of $58,000 on Oct. 12, but more regulatory procrastination could quash current market momentum.

Bloomberg senior ETF analyst Eric Balchunas is still confident that there is a 75% chance that an ETF will be approved this month.

Earlier this month, the SEC extended the deadline of four BTC ETFs — the Global X Bitcoin Trust, Valkyrie XBTO Bitcoin Futures Fund, WisdomTree Bitcoin Trust, and Kryptoin Bitcoin ETF — for 45 days.

In September, Van Eck’s physically-backed Bitcoin ETF was delayed for the second time this year with a decision date set for Nov. 14 by the SEC.

Commodity strategist predicts Bitcoin ETF could get the nod in US next month

September 22, 2021 Coin Telegraph

Canada

A Bitcoin ETF could be approved by U.S. regulators by October. according to Bloomberg Intelligence Commodity Strategist Mike McGlone.

Bloomberg Intelligence Commodity Strategist Mike McGlone believes it is only a matter of time before the U.S. Securities and Exchange Commission (SEC) approves the country’s first Bitcoin exchange-traded fund (ETF).

In an interview with Stansberry Investor host Daniela Cambone on Sept. 21, McGlone asserted that Canada is extending a competitive lead over the United States after approving Bitcoin ETFs from 3iQ and Coinshares in April.

He emphasized that capital is flowing from the U.S. to Canada’s institutional crypto products, including from Cathie Wood’s Ark Invest. However, he believes that lawmakers in the United States will not want to miss out for much longer.

When asked about a timeframe on potential U.S. Bitcoin ETF approval, McGlone said it could happen “potentially by the end of October.” He maintained that it was likely to be a futures-backed product first, adding that it would open a “legitimization window for a massive amount of money inflow.”

McGlone also reiterated the latest report from Bloomberg Intelligence that stated Bitcoin prices hitting $100,000 was a possibility this year, and this would be driven by the approval of an ETF.

Crypto YouTuber Lark Davis shares McGlone’s price targets, observing that in previous bull markets in 2013 and 2017, the latter quarters saw huge price rallies.

#bitcoin still going to 100k this year, Q4 2013 and Q4 2017 both saw 300% + rallies.

What would make BTC do that again?

A BTC ETF getting approved in the USA.
— Lark Davis (@TheCryptoLark) September 22, 2021

The SEC is currently yet to approve a crypto ETF despite the number of applications it has received from prospective issuers continuing to mount.

Earlier this month, multinational financial services firm Fidelity Investments, lobbied the SEC to approve an ETP arguing that Bitcoin markets have already reached maturity under the regulator’s own standards.

Fidelity lobbies SEC to approve Bitcoin ETF in private meeting

September 15, 2021 Coin Telegraph

Coin Telegraph

Fidelity argues that Bitcoin markets have already reached maturity under the SEC’s own standards.

Multinational financial services firm Fidelity Investments has pressed the U.S. Securities and Exchange Commission to approve its Bitcoin exchange-traded fund (EFT).

A private meeting was held on Sept. 8 between Fidelity Digital Assets President Tom Jessop, six of the firm’s executives and several SEC officials. The finance executives laid out a number of reasons why the regulator should approve the investment product. These include increased demand for digital assets and related products, the prevalence of similar funds in other countries, and the rise of Bitcoin adoption.

A Fidelity presentation from the meeting outlining the benefits of a Bitcoin product stated that global developed market regulators have approved Bitcoin exchange-traded products (ETPs) in Canada, Germany, Switzerland and Sweden.

In response to SEC chair Gary Gensler’s comments last month on the possibility of reviewing only BTC futures products, Fidelity argued that strict adherence to either a 1933 law allowing stock exchanges to list the products, or allowing futures only products, was not necessary because the market has matured.

The Securities Act of 1933 was passed following the stock market crash of 1929 in order to protect investors by establishing laws against misrepresentation and fraudulent activities. Fidelity believes that these laws are too stringent and markets are now more transparent and established.

“We believe Bitcoin futures-based products are not a necessary interim step before a Bitcoin ETP; firms should be able to meet investor demand for direct exposure to Bitcoin […] through ETPs because the Bitcoin market has matured and can support them.”

It also argued that the market has already reached “significant size” and has deep liquidity as defined by the SEC’s own standards.

Fidelity filed for a Bitcoin exchange-traded product called the Wise Origin Bitcoin Trust in March 2021, and more than 20 similar applications from other firms have been made since, yet the regulator continues to procrastinate.

The Bitwise Bitcoin Strategy ETF is the latest to be lodged in the SEC’s lengthening application queue following a filing on Sept. 14.

Fidelity Digital Assets continues to expand its operations despite regulatory red tape. The firm plans to increase its crypto asset employee numbers by up to 70% by the end of the year according to Bloomberg.

The SEC is doing things at its own lethargic pace, having postponed VanEck’s proposed Bitcoin Trust ETF for the third time this year on the same day as the meeting with Fidelity, delaying the decision date until Nov. 14.

Deutsche Boerse-owned Eurex debuts Bitcoin futures trading

September 14, 2021 Coin Telegraph

Bitcoin

Deutsche Boerse-operated exchanges such as Eurex and Xetra continue moving into the crypto derivatives market.

Eurex, a derivatives exchange owned by German stock market operator Deutsche Boerse, has debuted cryptocurrency derivatives trading with ETC Group’s Bitcoin (BTC) exchange-traded note (ETN) futures product.

Eurex officially announced Monday the launch of the Bitcoin ETN Futures contract developed by London-based crypto derivatives issuer ETC Group.

“As the first step in our portfolio of crypto derivatives, the offering is the first regulated market in Bitcoin-related derivatives in Europe,” Eurex said.

Trusted path to #crypto: today, we launched #Bitcoin ETN #Futures. As the first step in our portfolio of #CryptoDerivatives, the offering is the first regulated market in Bitcoin-related #derivatives in Europe. Get all information and the factsheet here: https://t.co/bk55yqFssN pic.twitter.com/ADpzOCqTnm
— Eurex (@EurexGroup) September 13, 2021

The euro-denominated Bitcoin ETN Futures contract is based on ETC Group’s flagship product, centrally cleared Bitcoin exchange-traded product (ETP), known as BTCetc Physical Bitcoin (BTCE). The futures contract allows investors to track the price development of Bitcoin in a regulated environment and will be physically delivered in BTCE, which is 100% backed by Bitcoin and can be instantly converted by any investor into the underlying BTC.

ETC Group CEO Bradley Duke noted that the latest listing marks another major milestone in providing institutions with financial products that enable exposure to crypto on regulated exchanges. “The selection of BTCE by Eurex, Europe’s largest derivatives exchange, further establishes ETC Group’s leadership in the crypto ETPs and is recognition of the quality of our products and their world-beating liquidity,” he noted.

The Bitcoin ETN Futures’ listing on Eurex comes more than a year after ETC Group listed its BTCE ETP product on Xetra, a major digital stock exchange operated by Deutsche Boerse. The ETP is now listed on multiple European exchanges, including the SIX Swiss Exchange. In July, ETC Group announced that BTCE was going carbon neutral by offsetting the carbon footprint through hand-selected carbon credits to compensate for carbon emissions associated with BTCE Bitcoin mining.

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Europe prepares for first Bitcoin futures launch amid US ETF stalemate

August 24, 2021 Coin Telegraph

Bitcoin

No sign of an ETF launch approval in the U.S. as yet, with Europe soon to see a pioneering Bitcoin futures product.

Europe's first ever Bitcoin (BTC) futures will launch next month on the continent's largest derivatives market, Eurex, an announcement confirms.

In a press release issued Aug. 24, digital asset-backed securities provider ETC Group said that its Bitcoin ETN Futures product will commence trading Sep. 13.

Europe highlights "growing institutional demand"

ETC Group already operates the world's first centrally-cleared Bitcoin exchange-traded product (ETP), known as BTCetc Physical Bitcoin (BTCE).

Launched in June 2020 on Deutsche Boerse, there are now several crypto ETPs from the firm, three of which will also begin trading on the Wiener Boerse — Vienna's stock exchange — in future, Cointelegraph reported.

The moves come amid increased investor demand for institutional products tied to Bitcoin and altcoins, with Europe traditionally providing a friendlier environment than the United States, which is dragging its heels over approval of a Bitcoin exchange-traded fund (ETF).

Eurex will thus host the first European futures contract based on a crypto ETP from next month.

"Given the growing institutional demand for secure exposure to Bitcoin, we are delighted to begin listing these Bitcoin ETN futures on our regulated trading and clearing infrastructure at Eurex," Eurex executive board member Randolf Rolf commented.

"This move will allow a greater number of market participants to trade and hedge Bitcoin, with this new future being treated in the same way as any other derivatives contract in terms of central clearing, netting, and risk management."

Bitcoin traded at $49,700 at the time of writing, down around 1% on the day after briefly passing the $50,000 mark.

Mixed institutional sentiment lingers

As Cointelegraph noted, institutional investor sentiment is slowly returning to favor crypto portfolio exposure.

That said, institutional instruments such as the Grayscale Bitcoin Trust (GBTC) have lagged behind surging spot prices, signalling that uptake is not yet back at bull market levels seen before Bitcoin's all-time highs in April.

The GBTC premium — the additional cost of the Trust's shares compared to BTC spot price — continues to hover in negative territory, equating to the shares trading at a discount.

ETP

"Happier days" for Bitcoin ETPs as buyers pile in

Little reprieve for GBTC

Europe highlights "growing institutional demand"

Mixed institutional sentiment lingers

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