Tag: ETFs

Approval of Bitcoin ETFs will cause bearish trend

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As the verdict on spot Bitcoin ETFs approaches between Jan. 8 and Jan. 10, market analysts, including K33 Senior Analyst Vetle Lunde, predict a sell-the-news scenario. Lunde, citing trader exposure and derivatives’ massive premiums, suggests a 75% likelihood of this outcome, overshadowing the 20% chance of approval. Despite signs of froth in the market, such as futures premiums reaching annualized levels of 50%, institutional players continue to build long exposure, reflecting expectations of approval. Open interest surged by over 50,000 BTC in the last three months, driven by anticipation of…

ETFs Offer Tailwinds for Other Digital Assets

The 2023 period was also one of reduced macroeconomic correlations across digital assets. Crypto was allowed to be crypto, and mostly decoupled from US equities and gold over the year (see rolling correlation chart above), albeit with lower levels of realized volatility than in prior years. Surprisingly, ether realized nearly the same level of volatility as bitcoin in 2023, breaking from the historical norm of generally realizing ~20% higher, with bitcoin’s volatility dropping towards levels akin to single stock volatility, and more in line with traditional asset classes. Source

Expert predicts spot Bitcoin ETFs will not get approved this week

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Fox Business reporter Eleanor Terrett said approval of a spot Bitcoin ETF in early January is unlikely. In an X post, Fox journalist Eleanor Terrett noted that the Securities and Exchange Commission (SEC) still needs to review changes to the S-1 filings for spot Bitcoin ETFs. While the @SECGov is surely unpredictable, it would surprise me if approvals were to happen tomorrow. From what I understand through conversations I’ve had with issuers, the SEC still has to review all the changes made to the S-1s filed on Thursday/Friday AND make…

Spot Bitcoin ETFs inflows to dwarf all 150 crypto ETPs

Spot Bitcoin ETFs in the U.S. could eclipse the entire cryptocurrency exchange-traded product (ETP) market. As BitMEX analysts note, the cryptocurrency ETP market has 150 products and has a valuation of $50.3 billion as of Dec. 22, 2023. The list includes spot and futures funds that typically track the performance of Bitcoin (BTC) and Ethereum (ETH). The largest ETP on the list is Grayscale’s Bitcoin Trust, which is currently attempting to convert into a spot ETF product. Of the 150 crypto funds, the 20 largest ETFs attracted the most investment,…

Hong Kong Ready to Accept Proposals for Crypto Spot ETFs

Regarding custody arrangements, the SFC emphasizes that the fund’s trustee or custodian can delegate its crypto custody function solely to an SFC-licensed VATP or entities meeting the crypto custody standards set forth by the HKMA. Hong Kong has announced its readiness to receive applications from traditional financial companies interested in exploring the emerging economy by creating exchange-traded funds (ETFs) tracking spot-based cryptocurrencies. The country already allows futures-based crypto ETFs and has approved listing ETFs such as the Samsung Bitcoin Futures Active, CSOP Bitcoin Futures, and CSOP Ether Futures. The crypto-friendly…

Hong Kong’s SFC, HKMA Say They Will Consider Applications for Spot Crypto ETFs

Hong Kong has been loosening its approach to crypto this year, and the regulators’ opinion on retail exposure to digital assets has shifted. In October, the SFC updated its rule book to allow a broader range of investors to engage in spot-crypto and ETF investing. Then, last month, SFC Chief Executive Officer Julia Leung said the regulator was moving toward allowing retail amidinvestors to buy spot crypto ETFs and would “welcome proposals using innovative technology that boosts efficiency and customer experience” provided any risks were addressed. Source

Spot Bitcoin ETFs a game-changer

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MicroStrategy executive chairman Michael Saylor recently emphasized the potential impact of upcoming spot Bitcoin ETFs on the markets. In a Bloomberg TV interview, Saylor asserted that this development could be the most significant on Wall Street in three decades, drawing a parallel with the introduction of the S&P 500 ETF. According to Saylor, mainstream investors have lacked a “high bandwidth” compliant channel for investing in Bitcoin, a gap that the spot Bitcoin ETF is poised to fill. “Spot Bitcoin ETFs may be the biggest development on Wall Street in the…

US SEC Delays Decision on Multiple Ethereum ETFs, What’s Next?

In the recent filing, the US SEC stated that they are still considering on whether these Ethereum ETFs should be listed. The United States Securities and Exchange Commission (SEC) has announced a delay in its decision on several Ethereum (ETH) exchange-traded funds (ETFs) until May 2024. As per regulatory filings on December 18, the SEC postponed its decision on the Hashdex Nasdaq Ethereum ETF and the Grayscale Ethereum Futures ETF. The Hashdex Ether ETF shall hold both spot Ether and futures contracts. Similarly, Grayscale’s Ethereum Futures ETF is a strategic…

SEC delays several Ethereum ETFs, pushing final decision to May

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The United States Securities and Exchange Commission is pushing back its decision on several Ether (ETH) exchange-traded funds (ETFs) to May 2024. In several Dec. 18 regulatory filings, the agency delayed its decision on the Hashdex Nasdaq Ethereum ETF and the Grayscale Ethereum Futures ETF. The Hashdex Ether ETF aims to hold both spot Ether and futures contracts, while Grayscale’s Ethereum Futures ETF is seen as a “trojan horse” that would corner the SEC into allowing Grayscale to convert its Ethereum Trust to a spot Ethereum ETF. In the filings, the…

Grayscale mulls over potential tax implications for spot Bitcoin ETFs

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Grayscale is evaluating the possible tax consequences associated with spot Bitcoin (BTC) exchange-trade funds (ETF), prompted by inaccurate reports circulating about unfavorable tax implications. In a series of posts on X (formerly Twitter), Grayscale clarifies that retail investors of the Grayscale Bitcoin Trust (GBTC) are not expected to incur tax implications when the fund sells Bitcoin to generate cash for meeting share redemptions. As we work to obtain the appropriate regulatory approvals to uplist $GBTC to NYSE Arca, we’re considering the potential tax implications for spot Bitcoin ETFs needing to…