SEC Asks Issuers To Withdraw Their 19b-4s For XRP, SOL, ADA, LTC, And DOGE ETFs, Fast-Tracking Approvals ZyCrypto
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Five issuers have submitted amendments filings to the US Securities and Exchange Commission (SEC) seeking approvals for in-kind features on their crypto exchange-traded funds (ETFs). While the SEC has delayed giving its approvals, James Seyffart argues that a crypto ETF will soon receive regulatory blessings for in-kind creation and redemptions. Expert Predicts Crypto ETF To
The post Crypto ETFs May Soon Have In-Kind Feature As Five Issuers File Amendments appeared first on CoinGape.
]]>The Federal Bureau of Investigation (FBI) has flagged potential attempts by North Korean hackers to compromise the spot Bitcoin ETF issuers. The agency highlighted recent attempts and possible iterations of the scams targeted at crypto firms. Meanwhile, crypto users continue to lament the growing threats in the space as it dampens confidence.
FBI Warns of North Korean Hackers
The FBI has warned employees of decentralized finance (DeFi) firms over possible hacking attacks from bad actors in North Korea. In a recent publication, the agency highlighted schemes, methods, and precautions for stakeholders in the cryptocurrency sector. This adds to the recent scam scares faced in the market. According to the FBI, bad actors are targeting employees to deploy malware and steal crypto assets.
“North Korean social engineering schemes are complex and elaborate, often compromising victims with sophisticated technical acumen. Given the scale and persistence of this malicious activity, even those well versed in cybersecurity practices can be vulnerable to North Korea’s determination to compromise networks connected to cryptocurrency assets.”
In the past months, the alleged scammers profiled targets linked to spot Bitcoin ETF to steal assets. Hackers can deploy extensive pre-operational research attempting to socially engineer staffers to gain access to the network. Bad actors also create fake scenarios usually personal details to target a particular victim. This can include personal information, relationships, and connections. Per the report, possible indicators include requests to execute a code, conduct employment tests, invest in certain companies, etc.
What’s Next For Bitcoin ETF Issuers?
Bitcoin ETF issuers have seen billions flow into their projects since the approval in January by the United States Securities and Exchange Commission (SEC). This led to a frenzy in the wider market with the price of the market leader hitting $73,000. Little wonder why companies linked to these funds become targets for hackers in the space.
However initial reactions to the release were mixed with users lamenting the growing rate of phishing scams in the space. However, most advised stakeholders to be more vigilant to prevent possible setbacks in the crypto industry. Last week, the SEC reiterated warnings on crypto scams sparking wider concerns.
David Pokima
David is a finance news contributor with 4 years of experience in Blockchain Technology and Cryptocurrencies. He is interested in learning about emerging technologies and has an eye for breaking news. Staying updated with trends, David reported in several niches including regulation, partnerships, crypto assets, stocks, NFTs, etc. Away from the financial markets, David goes cycling and horse riding.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
As the July 23 deadline for launching the spot Ethereum ETF (exchange-traded fund) market approaches, asset management firms have disclosed their management fees, signaling the imminent approval of applications by the US Securities and Exchange Commission (SEC).
BlackRock’s Fee Cut Strategy
According to BlackRock’s amended S-1 registration statement filed on Wednesday, the asset management giant will charge a 0.25% management fee for its spot Ethereum ETF ETHA.
The fee will be accrued daily at an annualized rate of 0.25% of the fund’s net asset value and payable at least every three months in US dollars, in-kind, or a combination of both.
BlackRock has also announced its intention to potentially waive all or a portion of the fee for certain periods, with a fee reduction to 0.12% during the ETF’s initial launch period, which will remain in effect until the ETF has been in operation for 12 months or has accumulated $2.5 billion in net assets, whichever occurs first.
With the same fee-cut strategy for its ETHA ETF for the first 12 months of trading, BlackRock is likely to see the most inflows, as it did with its IBIT Bitcoin ETF, which is approaching $20 billion in assets under management (AuM) after seven months of trading.
Franklin Templeton Offers Lowest Fee
Franklin Templeton’s spot Ethereum ETF will have the lowest fee at 0.19%, while Bitwise and VanEck have set their fees at 0.20%. The 21Shares Core Ethereum ETF will charge 0.21%, and both Fidelity and Invesco Galaxy will match BlackRock’s fee of 0.25%.
Notably, five issuers, including Bitwise, Fidelity, Franklin Templeton, 21Shares, and VanEck, plan to waive their fees initially, with each issuer having specific conditions for the waiver period. For example, VanEck’s fee will be waived for the first 12 months or until the ETF reaches $1.5 billion in net assets, as seen in the image below.
Lastly, Grayscale has announced the creation of the Grayscale Ethereum Mini Trust, offering a more competitive fee of 0.25%, aligning with the fee structure of BlackRock’s ETF.
Grayscale also revealed that 10% of the assets from its spot Ethereum ETF will be used to establish the Ethereum Mini Trust, providing $1 billion in seed funding.
ETFs To Drive Price Surge For ETH
The expected inflows into Ethereum ETFs will most likely positively impact ETH’s price and the broader cryptocurrency market, as historical data compiled by K33 Research shows that fresh capital flowing into Bitcoin via ETFs increased the crypto market cap by 46% in 2024.
Vettle Lunde, senior analyst at K33, anticipates a similar trend with Ethereum, suggesting that the ETFs could strengthen Ether’s price in the second half of the year and facilitate the entry of sidelined capital into the crypto market.
Meanwhile, ETH is trading at $3,460, showing a sideways movement in the 24-hour time frame with a 0.6% decrease since Wednesday’s price. However, the second-largest cryptocurrency on the market is still up 8% over the past week.
Featured image from DALL-E, chart from TradingView.com
The launch of U.S. Spot Bitcoin ETFs has had a significant impact on the total inflows of several major ETF issuers. Moreover, it propelled BlackRock, Fidelity, and Invesco into the top 10 ETF issuers list by year-to-date inflows. Since launch, these ETFs have attracted inflows of a whopping $31.86 billion, excluding Grayscale‘s GBTC outflows.
BlackRock, Fidelity, Invesco Grab Spot In Top 10 ETF Issuers List
Since their launch on January 10, 2024, BlackRock’s iShares Bitcoin Trust (IBIT) has garnered an impressive inflow of $16.65 billion, according to Farside UK data. Moreover, it is followed by Fidelity with $8.96 billion. Whilst, Ark 21Shares’ ARKB trails behind with $2.46 billion.
In addition, Invesco Galaxy’s BTCO has also seen an inflow of $317 million since its launch. However, Grayscale’s GBTC ate up a substantial portion of these positive flows with a gigantic $17.9 billion outflow year-to-date.
Whilst, Bloomberg’s Senior ETF analyst, Eric Balchunas, also noted that the launch of Spot Bitcoin ETFs has propelled the total inflows of BlackRock, Fidelity, and Invesco. This led to their emergence in the list of top 10 ETF issuers by year-to-date inflows with such impactful numbers.
“To those asking, $IBIT is 26% of BlackRock’s flows and 56% of Fidelity’s flows, so yes, it’s having a significant impact on the leaderboard,” Balchunas explained. In addition, Balchunas pointed out that if you remove the Bitcoin ETF inflows from the data, Vanguard would be almost triple anyone else in terms of flows.
Additionally, he also noted that Fidelity’s flows are heavily influenced by its Bitcoin ETF. The analyst stated that “FBTC is over half of Fidelity’s flows.” As a result of the strong Bitcoin ETF inflows, BlackRock took the second spot with $65.1 billion in inflows just behind Vanguard that led the list with $102.8 billion inflows. Meanwhile, Invesco took the third spot with $34.7 billion. Fidelity claimed the fifth rank with $15.8 billion in flows.
Also Read: Bitcoin ETF: Wisconsin Investment Board Bets $160M Into BTC, Price Rally Ahead?
Recent Bitcoin ETF Inflows
According to recent data, on Monday, June 3, Spot Bitcoin ETF flows were positive for $105.1 million, with Fidelity contributing $77 million, Bitwise $14.3 million, and Ark $10.7 million. BlackRock and Grayscale’s GBTC, however, saw zero flows. Nonetheless, the ETF inflow streak continued.
The impact of these inflows on the top 10 ETF issuers list is significant, with BlackRock’s iShares Bitcoin Trust now playing a major role in the company’s overall flows. As Balchunas noted, “IBIT is having a significant impact on the leaderboard,” making it a key player in the ETF industry.
Also Read: Australia’s First Bitcoin ETF Starts Trading Tomorrow, Here’s All
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
There’s no denying the launch of Spot Bitcoin ETFs has done wonders for the price of Bitcoin and other cryptocurrencies in general. These ETFs have now unlocked institutional demand into the world’s largest crypto asset to change the dynamics ahead of the next halving. On the other hand, recent tensions between Iran and Israel have seen Bitcoin falling to as low as $61,000 in the past 24 hours to undo weeks of price increases.
Bitcoin ETF Wallets Now Whale Addresses
The institutional demand for Bitcoin has been ramping up since the beginning of the year from the issuers of the various Spot Bitcoin ETFs. These fund providers have been scooping up Bitcoin left and right, now holding 4.27% of the total BTC supply, as noted by on-chain analytics platform IntoTheBlock.
These whale wallets have now joined an extensive list of whales on the Bitcoin network who collectively own 11% of the total circulating supply.
Unlike past BTC halvings, this time there’s a new source of demand coming from the traditional institutional sector.
The newly introduced Bitcoin ETFs drive institutional demand, leading to ETF wallets already amassing 4.27% of the Bitcoin supply! pic.twitter.com/volLU15Wgd
— IntoTheBlock (@intotheblock) April 13, 2024
It is noteworthy to mention that BlackRock’s IBIT and Fidelity’s FBTC ETFs have positioned themselves as the lead of the pack. According to data from BitMEX Research, these two spot ETFs now hold 405,749 BTC at the close of the trading session on April 12.
This surge of institutional money has fueled Bitcoin’s meteoric rise to a new all-time high of $73,737 and underscored its potential as a mainstream asset class. However, a brewing conflict between Iran and Israel seems to be undoing months of this price increase. Particularly, Bitcoin has seen a noteworthy drop to $61,000 from $67,800 in the past 24 hours.
Fundamentals, however, point to this price drop being temporary and the crypto is already reversing the majority of this loss. At the time of writing, Bitcoin is trading below the $65,000 price mark.
Bitcoin is now trading at $64.330. Chart: TradingView
Changing Halving Dynamics
One of such fundamentals pointing to a steady Bitcoin price increase in the coming months is the approaching Bitcoin halving. Investors are steadily approaching the outcome of this halving, with the Bitcoin blockchain now less than 1,000 blocks to the next event.
Past halvings on their own have led to a price increase for Bitcoin in the days post-halving. Bitcoin went on a surge of over 7,000% in the months after the first halving in 2012. The halving in July 2016 led to a 3,000% price surge in the months after. The most recent halving in May 2020 led to a surge of almost 1,000% in the months after.
As noted by IntoTheBlock, the approaching halving is different from previous ones. Unlike the last three halvings, there’s “a new source of demand coming from the institutional sector” through Spot Bitcoin ETFs. A repeat of past halving outcomes could see Bitcoin easily surging above the $100,000 price level.
Featured image from Pixabay, chart from TradingView
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
Despite previous reports from Matrixport predicting significant capital inflows from mainland Chinese investors into Hong Kong-listed Bitcoin ETFs, recent clarifications from several issuers have dismissed these expectations. The issuers have confirmed that mainland Chinese funds are prohibited from investing in such cryptocurrency-related ETFs by regulatory constraints.
Several issuers of Bitcoin ETFs in Hong Kong told WuBlockchain that southbound funds from mainland China are definitely unable to buy cryptocurrency ETFs, and the Matrixport report is false. An earlier Matrixport report indicated that Bitcoin spot ETFs listed in Hong Kong are…
— Wu Blockchain (@WuBlockchain) April 13, 2024
Misconceptions Corrected by ETF Issuers
Communication from ETF issuers in Hong Kong in recent times has rectified misunderstandings regarding the investment capabilities of Chinese investors in the mainland participating in the Southbound Stock Connect program.
According to sources, several prominent issuers that WuBlockchain interviewed, too, have openly stated that mainland Chinese investors are currently not allowed to purchase ETFs for cryptocurrency, including Bitcoin. This clarification contradicts Matrixport’s earlier report that up to US$25 billion could migrate from mainland China to Bitcoin ETFs in Hong Kong.
Regulatory Environment and Investment Restrictions
The Chinese regulatory environment is characterized by strict regulations regarding cryptocurrencies and in assets that are associated with them, including trading and investment. The Southbound Stock Connect program, which was created to promote cross-border investment between mainland China and Hong Kong, does not include digital currency products, which is due to China’s conservative position on cryptocurrency risk. This omission reflects the wider regulatory approach taken in mainland China to control the exposure of the financial system to cryptocurrencies.
The revelation from the ETF issuers has triggered a re-evaluation of the market expectations concerning the potential of attracting mainland Communist Party of China to Bitcoin ETFs in Hong Kong. Investors who had expected a wider market participation are now reevaluating the effect of regulatory limitations on the development of cryptocurrency investment products in the area.
The market’s reaction highlights the crucial role of regulatory settings in determining the viability and attractiveness of financial products in interconnected markets such as those of Hong Kong and Mainland China.
Expansion of HK’s ETF Market
Despite these setbacks in cryptocurrency ETF investment from mainland Chinese funds, Hong Kong continues to expand its ETF market, with several new products and increased trading volumes observed over recent months. Hong Kong Exchanges and Clearing Limited reported a noticeable growth in the ETF sector, with average daily turnovers reaching significant figures.
This growth indicates a healthy expansion of Hong Kong’s financial markets, attracting diverse international investments, albeit with a noted absence of mainland Chinese capital in the cryptocurrency sector.
Read Also: Ethereum Price Finds Demand at 38.2% FIB Amid Market Sell-off; Buy this Dip?
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
According to a CNBC report, spot Bitcoin exchange-traded funds (ETFs) issuers have expressed skepticism that the US Securities and Exchange Commission (SEC) will approve similar spot Ethereum ETFs.
Market participants, including asset managers BlackRock, Fidelity, and VanEck, eagerly await approval for Ethereum ETF products, but some issuers are uncertain about the SEC’s green light.
Uncertainty Looms For Ethereum ETFs
The report notes that SEC Chairman Gary Gensler’s emphasis on crypto assets subject to federal securities laws has further complicated matters for an Ethereum ETF. Gensler has asserted that most crypto assets are investment contracts, consistent with the SEC’s perspective.
Interestingly, VanEck CEO Jan Van Eck anticipates a rejection of their Ethereum ETF application, stating that regulators have been providing comments on the application for weeks.
Van Eck believes that the SEC’s decision-making process is similar to that of Bitcoin ETFs, where prolonged reviews eventually lead to approval. However, the outlook for Ethereum ETFs remains uncertain. VanEck CEO further noted:
We were the first to file as well for Ethereum in the U.S., and we and [Ark Invest CEO] Cathy Wood, are kind of the first in line for May, I guess, to probably be rejected
CoinShares CEO Jean-Marie Mognetti shares this pessimism, stating that he doesn’t foresee any approvals shortly, especially for proof of stake protocols specific to Ethereum.
Proof Of Stake Protocol Complicates SEC Decision?
The SEC’s acceptance of proof of work (PoW), the protocol underlying Bitcoin, has not raised securities law concerns the largest cryptocurrency has been deemed a commodity by US regulators led by Gensler.
However, the proof of stake (PoS) that is central to Ethereum poses a challenge to the approval of Ethereum ETFs, which, as Bitcoin has continuously witnessed, opens the door for traditional financial institutions to increase adoption and offer these products to a greater number of investors in the US.
While Bitcoin relies on volunteer miners to validate transactions and create new tokens, Ethereum’s proof of stake protocol is based on participants staking their existing tokens to secure the network.
The SEC’s reservations about this protocol are another obstacle to the approval of the Ethereum ETFs, as highlighted by CoinShare’s CEO, who further stated, “I don’t see anything getting approved this side of the year.”
Ultimately, market participants are eagerly awaiting the SEC’s decision on whether to approve or disapprove Ethereum ETFs, while issuers of spot Bitcoin ETFs are preparing for the outcome and navigating the regulatory landscape to offer investment products tied to Ethereum.
It’s worth noting that the SEC has a May deadline to complete its review of Ethereum ETF applications after already pushing back its original March decision deadline.
The price of ETH stands at $3,518, reflecting a 2.5% decrease within the last 24 hours. This decline extends the downward trend observed over the past 30 days, resulting in an accumulated drop of nearly 10%.
Featured image from Shutterstock, chart from TradingView.com
The top four spot Bitcoin ETF issuers namely, BlackRock’s iShares Bitcoin ETF (IBIT), Fidelity (FBTC), Ark Invest (ARKB), and Bitwise (BITB) bought a total of 56,954 BTC this week. This is according to data made available by HODL15Capital on X, a prominent Capital compounder entity known for its insights into cryptocurrency markets.
Spot Bitcoin ETFs: Acquired Coins Versus Accumulated
According to the data shared, the Big 4 ETFs have been consistently purchasing a substantial amount of Bitcoin each week since their inception, contributing to the ongoing accumulation trend in the cryptocurrency space. The data tracked purchases made by these top four right from when approval was granted by the United States Securities and Exchange Commission (SEC) back in January.
The chart reveals that the weekly Bitcoin mining output, represented by the red line in the data provided as shown stands at approximately 6,300 BTC. This statistic serves as a point of reference, highlighting the contrast between the newly minted Bitcoin through mining and the sizable purchases made by institutional investors through ETFs.
The analysis additionally reveals that during the nine weeks examined, the major four Bitcoin ETF products accumulated an average of 40,000 BTC. This indicates that, except the initial launch week, the volume of purchases decreased only in the fifth and seventh weeks.
The major players achieved their highest level of acquisition during the second week, accumulating 68,000 BTC sourced from mining activities. They briefly approached this threshold again in weeks six and nine. On March 1, Bloomberg and BitMEX Research data revealed that Bitcoin exchange-traded funds (ETFs) experienced a net outflow of $140 million.
The The Big Four ETF Issuers Fared
BlackRock, aside from the opening week, maintained its lead of the pack as it amassed over 31,000 BTC in the past week. It was closely followed by Fidelity Investments which bought 19,960 BTC. The other two managed to buy up a little over 5,400 BTC.
During pre-market trading on Wednesday, the iShares Bitcoin ETF (IBIT) from BlackRock experienced a 9% surge, reaching $38.50. Similarly, FBTC, the spot Bitcoin ETF from Fidelity Investments, joined BlackRock and surpassed other funds in the market, collectively attracting 79% of the total inflow into this ecosystem since inception. Ark Invest and Bitwise also recorded 2845 BTC and 2561 BTC respectively.
Overall, the performance of the big four is reflected in the price action of the underlying asset for the week as Bitcoin recorded two pronounced all-time highs with the most recent pegged above $70,000. At the time of writing, Bitcoin is changing hands for $68,503.72, up by 10.59% in the past week.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
The U.S. Spot Bitcoin ETF market remains a hotspot for investors, accumulating a staggering around 175,000 BTC since its launch despite Grayscale’s heavy outflow. Notably, the Bitcoin ETFs also continued their robust momentum this week, while Fidelity FBTC recorded its highest inflow on March 7 since its launch. However, the latest data also suggests that the BlackRock influx has cooled this week, sparking curiosity among investors.
U.S. Bitcoin ETF Accumulates 175K BTC
Since the inception of the U.S. Spot Bitcoin ETF, investor interest has skyrocketed, with total inflows reaching $9.36 billion, equivalent to 174,881.2 BTC. On March 7 alone, these ETFs accumulated 7,018.2 BTC, underscoring the growing demand for Bitcoin investment instruments.
Meanwhile, Fidelity’s FBTC led the pack, which attracted a whopping $473.4 million inflow or 7,030.2 BTC, followed by BlackRock’s $244.2 million influx or 3,627.3 BTC on March 7. However, while Fidelity’s inflow surged, BlackRock’s IBIT experienced a cooling trend.
In contrast, Grayscale’s GBTC faced significant outflows, recording $374.8 million on the same day. Since the launch of the U.S. Spot BTC ETFs in January 2024, Grayscale’s total outflux has hit $10.25 billion or 217,844.7 BTC.
Commenting on this surge, James Butterfill, CoinShares’ Head of Research, highlighted the relentless momentum, stating, “US Bitcoin ETF Issuers are not showing any signs of inflows slowing down.” This sentiment reflects the bullish outlook of investors towards Spot Bitcoin ETFs and the broader digital asset market.
Also Read: Blur, Sei, and Uniswap Prices Likely to Rally Next Week, Here’s Why
Global Digital Asset Sector Witnesses Remarkable Growth
The Bitcoin ETF has fuelled confidence of the investors in the digital asset sector. Notably, beyond BTC ETFs, the global digital asset sector is experiencing a remarkable surge in investments.
James Butterfill shared insights, revealing a total fund flow exceeding $10 billion year-to-date (YTD) in the Digital Asset sector as of March 7, nearing the $10.6 billion mark observed in 2021.
The United States emerges as a key player in this surge, with a significant inflow of $10.45 billion in 2024, compared to just $4.64 billion in 2021. This exponential growth underscores the increasing confidence of investors in digital assets and their potential for long-term value appreciation.
Also Read: Solana Co-founder Praises Brian Armstrong Over Coinbase’s Hiring Policy
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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