April 2, 2023
Headlines

ETF

Auto Added by WPeMatico

ProShares ETF's Bitcoin stash hits $1.27B as BTC eyes $50K by mid-April

ProShares ETF’s Bitcoin stash hits $1.27B as BTC eyes $50K by mid-April

CoinRegWatch07 mins

Grayscale Investments’ trust fund GBTC still trades at a 25% discount compared to Bitcoin’s price.

Strong inflows into the ProShares Bitcoin Strategy exchange-traded fund (ETF) (BITO) in the past two weeks pushed its Bitcoin (BTC) exposure to a new record high.

No Bitcoin outflows despite ‘rollover’ risks

The fund, which uses futures contracts to gain exposure to Bitcoin’s price movements, had a record 28,450 BTC under its management — worth about $1.27 billion at the current price — as of March 24, compared to nearly 26,000 BTC a month before, according to official data from ProShares.

ProShares Bitcoin ETF holdings as of March 24, 2022. Source: Official Website

Interestingly, the inflows appeared in the days leading up to the “rollover” of BITO’s 3,846 March future contracts in the week ending March 25.

To recap, a rollover involves traders moving their futures contracts as their expiry nears to a longer-dated contract, so to maintain the same position.

BITO’s rolling periods typically follows up with an increase in Bitcoin net outflows, noted Arcane Research in its latest report, while citing the last rolling period due to the market uncertainty caused by the Russia-Ukraine conflict.

ProShares BITO AUM. Source: Arcane Research

But on March 21, it also witnessed an inflow of 225 BTC to its coffers just as BITO rolled its 437 March contracts to April. That prompted Arcane to see a growing institutional demand for the fund. It wrote in its report:

“The strong inflows to BITO suggest that Bitcoin appetite through traditional investment vehicles is increasing.”

BITO witnessed consistent net inflows for the remainder of this week, according to further data provided by Glassnode.

Purpose Bitcoin ETF flows. Source: Glassnode

Bitcoin to $50K next month?

The inflows to the ProShares Bitcoin ETF increase coincided with a rally in the spot BTC market on March 25.

BTC/USD daily price chart. Source: TradingView

On March 25, Bitcoin climbed another 2.5% to over $45,000, its highest levels in over three weeks. Alexander Mamasidikov, a co-founder of crypto wallet service MinePlex, noted that BTC’s price could jump to $50,000 next.

“The growth seen in the ProShares BTC ETF to a new all-time high of 28,000 BTC is proof that the clamor for a Bitcoin-linked exchange-traded fund product is backed by an active demand,” he told Cointelegraph, adding:

“These positive price trend activities have impacted BTC thus far and a sustained accumulation or investment from both retail and institutional investors is poised to push the coin to form strong support above $50,000 towards mid-April.”

No love for Grayscale?

Interestingly, institutions have been picking ProShares Bitcoin EFT over its rival Grayscale Bitcoin Trust (GBTC), a fund that has been trading at a 25% discount to spot BTC.

Grayscale Discount to NAV chart. Source: YCharts

The issue with picking GBTC over BITO is that its discount continues to grow, which means investors would remain at the risk of underperforming spot Bitcoin, at a much higher rate than the risk with BITO, which trades around 2% lower than the current BTC prices.

Nonetheless, there is still a slim chance of GBTC emerging as a winner. Namely, Grayscale Investments, the New York-based investment firm backing GBTC, has expressed interest in converting the trust fund into a spot Bitcoin-backed ETF. If it happens, GBTC’s 25% discount should return to zero.

Grayscale Investments BTC holding. Source: Coinglass

“Buying BITO shares guarantees you will underperform Bitcoin,” said Ryan Wilday, a veteran financial analyst in an analysis published in February, adding:

“And buying GBTC shares likely results in similar or worse underperformance compared to BITO, with a very slim chance of outsized performance in the event GBTC is turned into a spot ETF.”

Related: Record GBTC discount may spark $100K Bitcoin price rise — Analyst

The U.S. Securities and Exchange Commission has never approved a spot Bitcoin ETF application, believing BTC is vulnerable to price manipulation.

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.

Read More
SEC could approve spot Bitcoin ETFs as early as 2023 — Bloomberg analysts

SEC could approve spot Bitcoin ETFs as early as 2023 — Bloomberg analysts

CoinRegWatch04 mins

“Once crypto exchanges are compliant, the SEC’s primary reason for denying spot Bitcoin ETFs would no longer be valid, likely clearing the way for approval,” said the analysts.

Eric Balchunas and James Seyffart, exchange-traded fund analysts for Bloomberg, said that a proposed rule change with the United States Securities and Exchange Commission could be the catalyst for the regulatory body approving a spot Bitcoin ETF in mid-2023.

In a Thursday tweet, Balchunas said crypto platforms could fall under the SEC’s regulatory framework if the commission were to approve an amendment to change the definition of “exchange” proposed in January. The rule change would amend the Exchange Act to include platforms “that make available for trading any type of security” — seemingly including cryptocurrencies, making their investment vehicles more palatable for the regulator.

“Once crypto exchanges are compliant, the SEC’s primary reason for denying spot Bitcoin ETFs would no longer be valid, likely clearing the way for approval,” said the analysts.

Balchunas and Seyffart said under this amended definition of “exchanges”, which could be finalized between November 2022 and May 2023, the SEC could approve spot crypto ETFs including those with exposure to Bitcoin (BTC). The regulatory body has so far rejected all rule changes allowing listings of spot BTC ETFs on exchanges, despite approving some investment vehicles linked to Bitcoin futures in 2021.

Related: Is Bitcoin price mimicking the 2017 bull run?

Many U.S. lawmakers and industry leaders have pushed back against the SEC’s seeming reticence to approve a spot Bitcoin ETF. In November, Representatives Tom Emmer and Darren Soto sent a letter to SEC chair Gary Gensler challenging the reasons the regulator has denied listing shares of a spot Bitcoin ETF. Bitfury CEO and former Acting Comptroller of the Currency Brian Brooks also said during a December hearing that the United States was “unquestionably” behind the curve on approving crypto ETFs.

Read More
SEC pushes decisions on WisdomTree’s and One River’s applications for spot Bitcoin ETFs

SEC pushes decisions on WisdomTree’s and One River’s applications for spot Bitcoin ETFs

CoinRegWatch04 mins

The regulator said it would extend its window for the decision on WisdomTree’s Bitcoin investment vehicle to May 15 and One River’s to June 2.

The United States Securities and Exchange Commission has extended its window to approve or disapprove spot Bitcoin (BTC) exchange-traded fund (ETF) applications from asset managers WisdomTree and One River.

According to separate Friday filings, the SEC will push the deadline for approving or disapproving a rule change allowing shares of the WisdomTree Bitcoin Trust and One River Carbon Neutral Bitcoin Trust to be listed on the Cboe BZX Exchange and New York Stock Exchange Arca, respectively. The regulator said it would extend its window for the decision on WisdomTree’s Bitcoin investment vehicle to May 15 and One River’s to June 2.

The spot BTC ETF application from WisdomTree followed the SEC rejecting a similar offering from the asset manager in December 2021 after several delays. The regular said at the time that the BZX exchange did not provide enough data to conclude the crypto market is resistant to manipulation, or address concerns about possible sources of fraud and manipulation. WisdomTree filed for another spot BTC ETF listing in February 2022.

In contrast, One River’s BTC investment vehicle will be nearing its final deadline in 2022 after the firm filed for a proposed rule change listing on NYSE Arca on Oct. 5. The commission was expected to reach a decision or extend its deliberation window on the crypto ETF by April 3 but chose to push the deadline for an additional 60 days, to June 2, 2022. The SEC has the ability to extend the deliberation window or open the application up to public comment for up to 240 days before delivering a final decision.

“The Commission finds that it is appropriate to designate a longer period within which to issue an order approving or disapproving the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised in the comments that have been submitted in connection therewith,” said the SEC regarding One River’s application.

Related: Bitcoin ETF decision delayed, SEC commissioner wonders why

Regulators in the U.S. have continued to deny applications to list spot Bitcoin ETFs but also gave the green light to investment vehicles linked to BTC derivatives for the first time in October 2021. On March 11, the SEC rejected crypto ETF applications from New York Digital Investment Group and Global X. However, some BTC “strategy” ETF applications have had more success, with the regulator in 2021 approving the listing of shares of funds from Valkyrie, ProShares and VanEck.

Read More
Hashdex to launch Web3 and smart contracts ETF on Brazil's stock exchange B3

Hashdex to launch Web3 and smart contracts ETF on Brazil’s stock exchange B3

CoinRegWatch03 mins

The new ETF’s reserve period started on Monday and runs until March 25, 2022, according to the announcement.

Hashdex, a global crypto-focused asset manager, has revealed the launch of its Web3 Exchange Traded Fund (ETF) with a new announcement.

As per a report by Cointelegraph Brazil, the new ETF will be available on B3, Brazil’s main stock exchange, and will give investors a secure and diversified way to invest in Web3 and its underlying smart contract platforms.

The new ETF’s reserve period started Monday, March 14, 2022, and runs until Friday, March 25, 2022. Hashdex’s co-founder and CEO Marcelo Sampaio said the company believes that Web3 represents the future of the internet and is a further indication of blockchain technology’s potential. He added that:

“The WEB311 ETF not only provides exposure to the smart contract platforms underpinning Web3, but serves as an accessible and unique way to invest in projects that will be the main engine of the internet of the future.”

The new product was announced in conjunction with CF Benchmarks, one of the world’s major providers of digital asset market indexes. WEB311 will mirror the “CF Web 3.0 Smart Contract Platforms Market Cap Index,” as per the announcement.

The index will comprise tokens from two industry-leading platforms with the most valuable DeFi contracts in terms of total value locked in their protocols – Ethereum (22.5 percent) and Solana (22.1 percent) – as well as emerging ecosystems. They fall under the category of Cardano (22.5%), Polkadot (19.5%), Algorand (8.8%), Tezos (3.5%); and Cosmos (1.1%).

Related: Brazilian Stock Exchange approves two new crypto ETFs in Latin America

Hashdex is a fund manager that issues licensed crypto investment funds, having launched its first cryptocurrency-focused ETF, HASH11, in April of last year. Hashdex also offers a Nasdaq-weighted BTC/Nasdaq Crypto Index fund and a Bitcoin Risk Parity Gold Fund.

In August 2021, Hashdex introduced an ETF dedicated to the future of the internet, which is decentralized and built on blockchain technology with the ticker BITH11.

Read More
Bitcoin derivatives metrics reflect traders’ neutral sentiment, but anything can happen

Bitcoin derivatives metrics reflect traders’ neutral sentiment, but anything can happen

CoinRegWatch06 mins

BTC price is caught in the middle of a game of tug-o-war, as evidenced by the fact that pro traders are equally pricing upside and downside risk instruments.

Bitcoin’s (BTC) last daily close above $45,000 was 66 days ago, but more importantly, the current $39,300 level was first seen on Jan. 7, 2021. The 13 months of boom and bust cycles culminated with BTC price hitting $69,000 on Nov. 10, 2021.

It all started with the VanEck spot Bitcoin exchange-traded fund being rejected by the United States Securities and Exchange Commission (SEC) on Nov. 12, 2020. Even though the decision was largely expected, the regulator was harsh and direct on the rationale backing the denial.

Curiously, nearly one year later, on Nov. 10, 2021, cryptocurrency markets rallied to an all-time high market capitalization at $3.11 trillion right as U.S. inflation as measured by the CPI index hit 6.2%, a 30-year high.

Inflation also had negative consequences on risk markets, as the U.S. Federal Reserve acknowledged on Nov. 30, 2021, that inflation is more than just a “transitory” problem and hinted that tapering could occur sooner than expected.

More recently, on March 10, the U.S. Senate passed a $1.5 trillion package, which now awaits President Joe Biden’s signature. The new money is the first budget increase since former President Donald Trump left office.

Data shows pro traders are not willing to hold leveraged longs

To understand how professional traders are positioned, including whales and market makers, let’s look at Bitcoin’s futures and options market data. The basis indicator measures the difference between longer-term futures contracts and the current spot market levels.

The Bitcoin futures annualized premium should run between 5% to 12% to compensate traders for “locking in” the money for two to three months until the contract expiry. Levels below 5% are extremely bearish, while the numbers above 12% indicate bullishness.

Bitcoin 3-month futures annualized premium. Source: Laevitas.ch

The above chart shows that this metric dipped below 5% on Feb. 11 and hasn’t yet shown signs of confidence from pro traders.

Still, one would not be wrong in assessing that an eventual break of the $44,500 resistance would catch those investors off guard, creating a strong buying activity to cover short positions.

Options traders are less worried about further downside risk

Currently, Bitcoin seems pretty undecided near $40,000, making it difficult to discern a direction in the market. The 25% delta skew is a telling sign whenever arbitrage desks and market makers overcharge for upside or downside protection.

If those traders fear a Bitcoin price crash, the skew indicator will move above 10%. On the other hand, generalized excitement reflects a negative 10% skew. That is precisely why the metric is known as the pro traders’ fear and greed metric.

Bitcoin 30-day options 25% delta skew: Source: Laevitas.ch

As displayed above, from Feb. 28 until March 8, the skew indicator ranged between 7% and 11%. Albeit not precisely signaling fear, these option traders were overcharging for downside protection by a wide margin.

Related: Bitcoin spikes above $40K as Russia sees ‘positive shifts’ in Ukraine war dialogue

The past three days showed a remarkable improvement and currently, the 4% delta skew shows more of a balanced situation. From the BTC options markets perspective, there’s a similar risk for unexpected upward and downward price swings.

The mixed data from Bitcoin derivatives offer an interesting opportunity for bulls. The cheap futures premium offers long leverage opportunities at a relatively low cost and the downside protection is running at its lowest level in thirty days.

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

Read More
Valkyrie Investments‘ Leah Wald on Bitcoin ETFs and the future of digital assets

Valkyrie Investments‘ Leah Wald on Bitcoin ETFs and the future of digital assets

CoinRegWatch06 mins

Valkyrie Investments CEO Leah Wald opens up on the importance of Bitcoin ETFs and why the traditional financial world should pay attention to digital assets moving forward.

Cointelegraph sat down with Leah Wald, CEO of digital asset investment firm Valkyrie Investments, to learn more about the importance of a Bitcoin (BTC) exchange-traded fund (ETF) and the future of digital assets. 

For context, Valkyrie Investments was launched in 2021 and is one of the only asset managers to have three Bitcoin-adjacent ETFs trading on the Nasdaq. Valkyrie launched a Bitcoin Strategy ETF in October 2021, which offered indirect exposure to BTC with cash-settled futures contracts following a United States Securities and Exchange (SEC) approval for a similar ETF from ProShares. Valkyrie also has a balance sheet opportunities ETF that invests in public companies with exposure to Bitcoin. In addition, the investment firm’s Bitcoin Miners ETF began trading on the Nasdaq on February 8, 2022, under the ticker WGMI.

According to Wald, Valkyrie focu “taking the mystery out of investing in Bitcoin” for new investors. “We want to ensure that everybody is able to participate in this ecosystem,” Wald told Cointelegraph.

In addition, Wald explained the importance of a Bitcoin ETF, noting that this topic has been an important one ever since the Winklevoss twins first filed for a Bitcoin trust. Wald said that a Bitcoin ETF ultimately allows access to an asset class for many people who didn’t have access previously. Wald also stated that there are various ETFs such as Valkyrie’s futures-based ETF and thematic ETFs. While Wald pointed out that we “shouldn’t hold our breath” for a Bitcoin spot ETF — which she refers to as the “holy grail” — she said that it’s Valkyrie’s mission to eventually ensure a Bitcoin spot ETF, noting that the firm is “fighting hard and working with regulators” to get there.

In addition to her thoughts on ETFs, Wald commented on how the traditional world of finance may view Bitcoin and digital assets. “The most common question is still around volatility and how to allocate accordingly,” said Wald. She added that typical portfolio structures are seen as “bunk” or narrow, which is why the traditional financial world requires a new paradigm shift. 

Wald further remarked that some of the basic questions she has received focuses on what Bitcoin is, or if Ether (ETH) is the same as Bitcoin. “I think sometimes in our industry, we believe and expect a lot of individuals to be as far down the rabbit hole as we may be, but some of the conversations are still at the very basic level,” she mentioned.

Cointelegraph asked Wald about Valkyrie recently passing $1 billion in assets under management. While impressive, Wald believes that this demonstrates how quickly institutional interest is growing for digital assets. She noted this represents a “stark difference” from when Valkyrie was first launched in 2021. As such, Wald explained that this signals large pools of wealth stepping into the crypto sector.

Before concluding the interview with Wald, Cointelegraph asked the executive to share her price prediction for Bitcoin this year. While she mentioned that she is clearly bullish on Bitcoin, Wald predicts that BTC will reach $70,000 by the end of 2022. “We are very bullish for the second half of the year and especially Q4. It sounds like we should just hold tight, but we‘re shooting for $70,000 by the end of the year.”

Read More
SEC rejects spot Bitcoin ETF applications from NYDIG and Global X

SEC rejects spot Bitcoin ETF applications from NYDIG and Global X

CoinRegWatch04 mins

The New York Digital Investment Group and Global X originally filed applications with the SEC for spot Bitcoin ETF listings in June and August 2021, respectively.

The United States Securities and Exchange Commission, or SEC, has disapproved spot Bitcoin exchange-traded fund applications from the New York Digital Investment Group and fund manager Global X after deferring on a decision several times in the last year.

According to two separate Thursday filings, the SEC rejected proposed rule changes from the Cboe BZX Exchange and New York Stock Exchange’s Arca to list and trade shares of the Global X Bitcoin Trust and New York Digital Investment Group’s Bitcoin exchange-traded fund, or ETF, respectively. The SEC said that NYSE Arca and Cboe BZX had not met the burden under the Exchange Act and the SEC’s Rules of Practice showing the ETF would be “‘designed to prevent fraudulent and manipulative acts and practices” and “protect investors and the public interest.”

The New York Digital Investment Group, or NYDIG, and Global X filed applications with the SEC for spot Bitcoin (BTC) ETF in June and August 2021, respectively, but the commission designated longer periods of time to approve or disapprove the proposed rule change and opened the applications for public comment several times before reaching a decision on Thursday. The rejections followed similar decisions for spot BTC ETF applications from WisdomTree and VanEck.

Though the U.S. regulator has yet to approve any spot Bitcoin ETF application from financial institutions, investment vehicles linked to Bitcoin futures have had more success. Many companies filed applications for BTC “strategy” ETFs following SEC chair Gary Gensler saying in August 2021 he would be more open to accepting exchange-traded funds based on crypto futures rather than through direct exposure. The commission has since approved ETFs linked to BTC futures from Valkyrie, ProShares and VanEck.

Related: SEC chair hints at no spot Bitcoin ETFs yet, but cites ‘careful consideration’ for future

As crypto ETF applications from other firms are still in the pipeline, at least one company is taking more of an initiative to seemingly put pressure on regulators. Following the SEC delaying its ruling on whether to approve Grayscale converting its Bitcoin Trust into a spot BTC ETF, the asset manager launched a campaign calling on U.S. investors to submit comments to the SEC. The regulator is expected to reach a decision on the ETF by July 6.

Read More
VanEck files for new ETF to track crypto and gold mining companies

VanEck files for new ETF to track crypto and gold mining companies

CoinRegWatch04 mins

The ETF will track securities in an index that measures the performance of gold mining and digital assets mining firms, according to the filing.

VanEck, an investment firm with almost $82 billion in assets under management, has submitted an application to the United States Securities and Exchange Commission (SEC) for the launch of a new exchange-traded fund that invests in gold mining and Bitcoin (BTC) mining companies.

According to the SEC document filed on March 3, the fund will focus on securities in an index that reflects the performance of gold mining and digital assets mining firms. It would not invest in cryptocurrencies directly or through derivatives. However, there was no ticker or cost ratio mentioned in the document.

The news of VanEck’s proposed fund comes as concerns over a fresh round of U.S. regulation linger in the air. The U.S. president, Joe Biden, is expected to sign an executive order later this week that will set forth the country’s cryptocurrency strategy.

The order will instruct federal agencies, including the SEC, to submit reports on what measures they’ve taken regarding digital assets later this year. The administration has come under fire for not providing enough clarity on cryptocurrency regulation.

In November, the SEC denied a VanEck ETF that would have bought BTC directly. Despite industry figures advocating for one for years, the regulator has not yet approved such a fund. With the groundwork for regulating the crypto space commencing, regulators may be delaying the approval of such ETFs until a more solid regulatory framework is put in place.

Related: Customer demand prompts Charles Schwab file for Crypto Economy ETF

Earlier this year, VanEck announced the creation of its first cryptocurrency fund. The fund is listed on the Deutsche Boerse Xetra and SIX Swiss exchanges as an exchange-traded note, or ETN, with exposure to BTC, ETH, DOT, SOL, TRX, AVAX and MATIC.

In April last year, VanEck introduced its Digital Transformation ETF (DAPP), which invests in firms that provide cryptocurrency exchanges, miners, and other crypto-related stocks. The firm also launched its Bitcoin Strategy Fund (XBTF), which invests in cash-settled Bitcoin futures contracts.

Read More
$45,000 Bitcoin looks cheap when compared to gold’s marketcap

$45,000 Bitcoin looks cheap when compared to gold’s marketcap

CoinRegWatch07 mins

BTC’s market cap is much smaller than gold, but Bitcoin’s daily volume and the amount held under management by funds suggests that the cryptocurrency is trading at a heavy discount.

Bitcoin (BTC) pulled off an impressive double-digit rally this year, but the digital asset has been struggling to break the $45,000 resistance lately. This level does not hold any historical importance because it has been easily breached multiple times. The same can be said for Bitcoin’s $850 billion capitalization, which isn’t anywhere close to silver’s $1.4 trillion, or the Amazon and Google’s $1.7 trillion market value.

Bitcoin’s market cap is often compared to gold, which has a $12.3 trillion total value and is currently the leading global store of value solution. Therefore, the answer to the $45,000 resistance might lay in institutional investors’ comparison of BTC versus gold. By looking at institutional investor funds assets under management and daily trading volume, it is possible to infer that Bitcoin’s 93% market capitalization discount is justified.

The “digital gold” thesis is being proven right

Gold has always been viewed as a proxy for Bitcoin and Cointelegraph previously covered Bitcoin’s multiple use cases, but the narrative that it is a digital store of value has always been its flagship feature.

Governments around the globe have implemented tighter financial controls for many reasons, which could reinforce the self-sovereign and decentralized advantages of cryptocurrency. For example, China’s social credit system places offenders on a social credit blocklist, which will stop them from securing loans or even using the transportation system.

Most recently, Canada’s short-lived Emergencies Act gave financial institutions the discretionary power to freeze protesters’ bank accounts with no civil liabilities on Feb. 15. Another example is this week Russians have been sanctioned from payment services like Apple Pay and Google Pay.

These events could make an analysis of the gold to Bitcoin market capitalization even more relevant.

Most valuable tradable global assets. Source: 8marketcap.com

According to the above data, BTC’s current $837 million market capitalization translates to roughly 7% of gold. To assess how those markets are valued, one should compare their daily traded volume and institutional holdings.

Cryptocurrencies are known for inflated exchange-traded numbers, but some providers, including Nomics, have their own adjusted volume calculations.

Accumulated 30-day volume on March 2, USD. Source: Nomics

The above data shows a $404 billion 30-day exchange volume for Bitcoin, which is equivalent to $13.5 billion per day. Exchange-traded products such as the Grayscale Bitcoin Fund (GBTC) added another $0.4 billion daily liquidity, according to CryptoCompare’s February 2022 report. Therefore, Bitcoin currently presents an aggregate $13.9 billion average daily volume.

Average daily trading volumes, USD billion. Source: gold.org

Meanwhile, according to GoldHub, there is $170 billion in daily liquidity for gold, including registered over-the-counter transactions. This is in addition to regulated futures markets and gold exchange-traded products. Thus, Bitcoin volume currently presents roughly 8% of gold’s.

The gold ETF versus Bitcoin exchange-traded products

Bitcoin’s multiple exchange-traded products such as Grayscale GBTC and exchange-traded notes have grown considerably. As a result, there are $37.8 billion in assets under management locked in Bitcoin exchange-traded products. That is equivalent to 4.5% of the cryptocurrency market’s current $840 million market capitalization.

Total Bitcoin listed investment vehicles, USD. Source: Funds, Bloomberg, ETF.com

Gold-backed ETF products total $221.2 billion, according to GoldHub data on Feb. 25. Excluding the aggregate 61% non-financial gold use (jewelry, industrial, others), the remaining market capitalization stands at $6.0 trillion. Therefore, the fund’s exchange-traded investment vehicles correspond to 3.7% of the adjusted gold’s market value.

At $45,000, Bitcoin’s average volume traded and institutional investors’ holdings roughly match gold’s markets. While the $850 million market cap level might be a short-term concern for investors, the cryptocurrency has other emerging use cases, such as El Salvador’s micropayment channels that use Lightning Network technology.

As “digital gold” becomes only a part of Bitcoin’s valuation model, traders are likely to price in higher upside, and consequently, the $45,000 level should become a distant memory.

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

Read More
Grayscale launches campaign to encourage public comments on Bitcoin ETF application

Grayscale launches campaign to encourage public comments on Bitcoin ETF application

CoinRegWatch05 mins

“This campaign aims to educate and inspire the investment community to take action and make their voices heard on this historic decision,” said Michael Sonnenshein.

As the U.S. Securities and Exchange Commission is considering whether to approve or deny asset manager Grayscale’s application for a Bitcoin spot exchange-traded fund, the firm has called on American investors to submit comments to the regulator.

In a Tuesday Twitter thread, Grayscale CEO Michael Sonnenshein announced the launch of an advocacy campaign for U.S.-based investors to speak their minds to the SEC before any final decision is reached on the Bitcoin (BTC) investment vehicle. Since the NYSE Arca filed with the regulatory body on Oct. 19 to list shares of Grayscale’s Bitcoin ETF under the ticker GBTC, the commission has twice delayed its decision on Dec. 15 and Feb. 4.

“This campaign aims to educate and inspire the investment community to take action and make their voices heard on this historic decision,” said Sonnenshein.

According to Grayscale’s chief legal officer Craig Salm, the firm has already received more than 200 letters in hopes of the SEC allowing the firm to convert its Bitcoin Trust into a physically-backed fund. Salm said some of the common themes from the feedback included calling a crypto ETF “in the public’s best interest,” allowing the U.S. to stay competitive with innovative investment vehicles, and calling out the SEC’s “nonsensical” approach in approving ETFs linked to Bitcoin futures but not BTC spot ETFs.

The Feb. 4 deferment from the SEC opened the floor to “interested persons to provide comments on the proposed rule change” for Grayscale’s BTC spot ETF. The regulatory body has the ability to extend the deliberation window up to 240 days from when the proposed rule change was published in the Federal Register on Nov. 8, meaning the SEC should reach a decision before July 6, 2022.

To date, the SEC has not approved any investment vehicle with direct exposure to crypto. Grayscale filed an application to restructure its Bitcoin Trust into an ETF in October shortly after the SEC approved ProShares’ Bitcoin Strategy ETF for listing on the New York Stock Exchange and shares of crypto-asset manager Valkyrie’s Bitcoin ETF fund on the Nasdaq Stock Market.

Related: Here’s why the SEC keeps rejecting spot Bitcoin ETF applications

If approved by the SEC, Grayscale would have the first publicly listed Bitcoin spot ETF available in the United States. This year, the regulator has already rejected applications for Fidelity’s Wise Origin Bitcoin Trust and First Trust SkyBridge Bitcoin ETF Trust, but is expected to reach a decision on NYDIG’s spot Bitcoin ETF and ​​asset manager Stone Ridge Holdings Group’s BTC ETF in March.

Read More