Bitwise Spot Bitcoin ETF will receive US$200 million in "seed funding", but AP and fee information have not been announced yet.
On December 30th, ETF analyst Eric Balchunas from Bloomberg stated on social media that Bitwise has submitted the latest revised S-1 document for its spot Bitcoin ETF, and someone will inject $200 million "seed funding" into BITB, which is much more than BlackRock's $10 million and will be of great help in the early stages of the ETF competition. However, the updated document still does not specify the Authorized Participant, and the fees have not been disclosed.
ARK Invest and Franklin Templeton have both filed updated S-1 documents
On December 30th, SEC official documents show that ARK Invest and 21Shares have submitted the latest revised S-1 filing for their spot Bitcoin ETF.
ARK Invest Sells Off GBTC Shares, Becomes Second-Largest Holder of Bitcoin Futures ETF BITO
ARK Invest, the investment firm led by Cathie Wood, has sold off its remaining holdings of Grayscale Bitcoin Trust (GBTC) shares, worth around $200 million, and used $100 million of the proceeds to buy shares in the ProShares Bitcoin Strategy ETF (BITO). This move has made ARK Invest the second-largest holder of the Bitcoin futures ETF. The firm's reshuffling of its portfolio comes amid speculation around the possible approval of a spot Bitcoin ETF by the US Securities and Exchange Commission (SEC), with hopefuls rushing to finalize their applications before a potential approval window in January.
ARK Invest Dumps GBTC for ProShares Bitcoin ETF, Buys Ark 21Shares and Sells Coinbase Stock
ARK Invest has purchased 4.3 million shares of the ProShares Bitcoin Strategy ETF, valued at $9.2 million, after selling its remaining holdings in the Grayscale Bitcoin Trust. The investment firm also sold $27.6 million worth of Coinbase stock and bought 20,000 shares of the Ark 21Shares Active Bitcoin Future Strategy ETF. The ProShares ETF now accounts for 5.03% of the ARK Next Generation Internet ETF and is its sixth-largest holding, while Coinbase remains the fund's largest holding at just under 12%. These changes in holdings come ahead of the Securities and Exchange Commission's expected decision next month on whether to allow spot bitcoin ETFs to trade in the US.
U.S. cryptocurrency stocks rose before the market opened, with Proshares Bitcoin Strategy ETF rising 2.8%
Data shows pre-market rise in US cryptocurrency stocks, with Proshares Bitcoin Strategy ETF up 2.8%.
First Trust files Bitcoin “buffer” ETF application with SEC
First Trust has submitted a Bitcoin "Buffer ETF" application to the SEC, which can prevent a certain percentage of downward losses, but upward losses are limited. Analysts expect that other entrants in the field will provide unique differentiated strategies to offer Bitcoin exposure in the coming weeks.
SEC Chairman: Will weigh spot Bitcoin ETF application based on recent court ruling
Gary Gensler, the chairman of the US Securities and Exchange Commission (SEC), said in an interview with CNBC today that the agency's "new view" on the application for a Bitcoin ETF involves a recent court ruling. He said, "We have previously rejected some such applications, but the District of Columbia Court has weighed in on this, so we will review the issue again based on the court's ruling." Gensler reiterated his view that the crypto industry has many cases of non-compliance with existing securities laws. He said, "There are too many fraud and bad behavior in the cryptocurrency field. Not only does it violate securities laws, but it also violates other laws that protect the public from bad actors, such as anti-money laundering laws."
Sources: Bitcoin ETF applicant discussions with U.S. SEC have entered key technical details
Industry executives have stated that discussions between US securities regulators and asset management companies regarding the listing of Bitcoin exchange-traded funds (ETFs) have entered into key technical details, indicating that the agency may soon approve these products. Thirteen companies, including Grayscale Investments, BlackRock (BLK.N), Invesco, and ARK Investments, are submitting applications to the US Securities and Exchange Commission (SEC) for Bitcoin price-tracking ETFs, pending approval.
Final Frenzy Before SEC Decision on Bitcoin ETF?
Traders must remember that the rally from 25,000 to 38,000 is primarily built upon the assumption that the SEC will approve a Bitcoin Spot ETF. The SEC is still in an open lawsuit with Coinbase, which is expected to be the primary counterparty (prime broker and custodian) for various Bitcoin Spot ETF applicants, and the SEC sued Coinbase in June. Each of the four crypto bull markets (2011, 2013, 2017, and 2021) was associated with a novel way to acquire Bitcoins. With the approval of a Bitcoin Spot ETF, moving fiat from any bank into Bitcoin would then become possible.
What happens if nobody sells his Bitcoins to BlackRock?
During Bitcoin halving years, we have seen rallies of +186% (2012), +126% (2016) and +297% (2020). At a Bitcoin price of 40,000 per coin, twenty-five thousand coins equate to $1 billion – or 250,000 Bitcoins equate to $10 billion. Compare this to the approximately 328,125 Bitcoins that were (will be) mined in 2023. A BlackRock Bitcoin ETF could scoop up 76% of all the supply from the mining community – not even considering that rewards will be cut in half from April 2024 onwards. Only 5.8 million of the 19.4 million mined Bitcoins have been moved during the last year, signaling that 70% of coins are just held for longer. 2.4 million Bitcoins appear to have been moved during the last six months, and this short-term holder supply could indeed be seen as the true free-float of the Bitcoin market.
