BlackRock Spot Bitcoin ETF Receives $100,000 in ‘Seed Funding’
Investment giant BlackRock has disclosed in its latest filing to the US SEC that it has secured $100,000 in "seed capital" for its proposed physically-backed bitcoin ETF. The filing states: "Seed capital investors have agreed to purchase $100,000 in shares on October 27, 2023, and deliver 4,000 shares at a price of $25 per share ('Seed Shares')." (CoinDesk)
Analyst: Ahead of U.S. approval of spot Bitcoin ETF, investors view crypto stocks as a way to gain crypto exposure
Data shows that the closing price of cryptocurrency exchange Coinbase (COIN) was slightly higher than $141, with a 5.5% increase, and has risen 320% since the beginning of the year. Bitcoin miners Marathon Digital (MARA) and Riot Platforms (RIOT) both saw their closing prices rise by more than 8%, with year-to-date (YTD) increases of 337% and 345%, respectively. The daily increase of cryptocurrency investment company Galaxy Digital Holdings (GLXY) was close to 12%, with a cumulative increase of 155% for the year; MicroStrategy (MSTR) saw a daily increase of over 6.5%, with a cumulative increase of 288% for the year. IG Australia market analyst Tony Sycamore said that before the approval of a spot Bitcoin ETF in the United States, investors will see cryptocurrency stocks as a way to obtain exposure to cryptocurrency risks. As Bitcoin prices rise, it will stimulate enthusiasm and increase trading volume and participation in the entire cryptocurrency ecosystem.
BlackRock submits revised Bitcoin ETF application documents, adds anti-money laundering compliance language and PwC audit report
Bloomberg ETF analyst James Seyffart wrote on X platform that BlackRock has submitted the second revised S-1 document (prospectus) for its Bitcoin spot ETF (iShares Bitcoin Trust) to the US SEC. Bitwise had also submitted a second revised S-1 document earlier.
Grayscale: After GBTC becomes an ETF and is listed, it will release approximately US$1.89 billion in value
According to a blog post by Grayscale, in ETF form, GBTC's stock is expected to track Bitcoin's price more closely, which means any premium or discount in GBTC's stock price is expected to disappear. As of November 29, 2023, GBTC's assets under management were $23.4 billion, with a discount of 8.09%, or $1.89 billion. This means that assuming the current discount disappears, GBTC will release approximately $1.89 billion in value to investors through arbitrage mechanisms once it is listed on NYSE Arca and becomes an ETF.
Novogratz predicts BTC will top $70,000 after SEC approves spot Bitcoin ETF
Michael Novogratz, the founder of Galaxy Digital, predicts that Bitcoin will return to its previous peak within a year due to the increasing expectation of the approval of the first Bitcoin ETF by the U.S. Securities and Exchange Commission (SEC). At the same time, interest in Bitcoin ETFs is also surging, indicating that regulated and accredited investors' institutional interest in BTC is recovering due to the large number of applications for Bitcoin ETFs submitted in the United States. Novogratz stated that the uncertainty of the upcoming election year may further stimulate people's interest in digital assets.
Mike Novogratz: Spot Bitcoin ETF expected to be launched in the United States in 2024
Mike Novogratz, founder of Galaxy Digital, commented on the recent settlement agreement between Binance.US and the US Department of Justice in an interview with Bloomberg TV's Sonali Basak. He believes that this settlement is a positive development for Binance and the broader cryptocurrency industry, reducing the risks and concerns associated with dealing with Binance. Novogratz believes that after the crash in 2022, the industry will become cleaner and more stable, with many bad actors being eliminated. He remains optimistic about the future of Bitcoin, especially with the expected launch of a spot ETF in the US in 2024. Novogratz predicts that a large influx of investment into Bitcoin could push up prices, especially against the backdrop of a Fed rate cut cycle.
Swiss asset management company Pando Asset submits application for spot Bitcoin ETF in the United States
Pando Asset, a Swiss asset management company, has applied for a Bitcoin ETF in the United States and has submitted an S-1 form to the SEC.
Compound CEO denies asking SEC to reject BlackRock Bitcoin ETF
In response to news that "X platform user Pleddito disclosed that Compound CEO JSON requested the SEC to reject BlackRock's Bitcoin ETF in a comment letter," JSON responded that this was not his behavior, but rather someone used his work email. He accused the submission process of having problems and lacking verification.
SEC Delays Decision on Bitcoin ETFs, Potentially Setting Up Approvals in January
The SEC has postponed its decision on whether to approve or reject proposals for two bitcoin ETFs, the Franklin Bitcoin ETF and the Hashdex Bitcoin Futures ETF. Bloomberg ETF Analyst James Seyffart has suggested that the SEC may be preparing to approve a batch of bitcoin ETFs in early January by delaying decisions until now. The SEC has requested public comments on issues such as the potential for manipulation of the funds and underlying bitcoin markets. The final decision on whether to approve or reject the proposed rule change will be made by January 1, 2024, and interested parties have 21 days to submit initial comments to the SEC.
Why the Chicago Mercantile Exchange will remain the home of crypto for traditional finance investors
Despite the approval of a Bitcoin spot ETF, the Chicago Mercantile Exchange (CME) is still expected to remain the top choice for traditional finance investors. The CME has seen a significant increase in Bitcoin futures trading over the past year, surpassing even Binance. While the launch of a spot ETF may bring institutional money into the sector, it is unlikely to reduce activity in the futures market. In fact, futures trading is expected to expand alongside the growth of spot ETFs, as institutional investors will likely use futures to hedge their positions. The futures market also benefits from clearer regulation compared to the regulatory ambiguity surrounding the crypto spot market.