Bitcoin
Bitcoin ETFs On The Way
CBOE has filed six Bitcoin ETFs with the SEC. The battle for supremacy has just begun.
Financial institutions are now bidding for Bitcoin exchange traded funds (ETFs) with Bitcoin future contracts trading live in the market.
The New York stock exchange recently filed a proposal with SEC for two Bitcoin ETFs – the pro-shares Bitcoin ETF and the pro-shares short Bitcoin ETF. The two funds will be tracking the momentum in Bitcoin future benchmarks as provided by CBOE and CME, being not involved in investing in Bitcoin or holding the cryptocurrency.
After NYSE, it is the Chicago Board Options Exchange (CBOE) who last week, together with the Securities Exchange Commission (SEC), has filed for six different Bitcoin ETFs. Being the first one to launch Bitcoin futures contracts in the market, CBOE is optimistic about the emerging asset class.
Public records show that CBOE has proposed a few amendments to the rules to the SEC to allow the exchange to file for six Bitcoin ETFs. The amendments were submitted to the SEC between December 15 to 19. The list of six ETFs as filed by the CBOE include: Granite Shares Bitcoin ETF, Granite Shares Short Bitcoin ETF, Rex Bitcoin Strategy ETF, Rex Short Term Bitcoin Strategy ETF.
An insider from CBOE was quoted saying that he was upbeat about the success of the new business model and intimated that several partners have shown a keen interest in ETF products. The first trust filing reads that the fund ‘…intends to invest primarily in Bitcoin future contracts. It may also invest in other listed Bitcoin derivatives, OTC Bitcoin derivatives, US Exchange-Listed ETFs and non-US component stocks (collectively Bitcoin instruments)’.
Pushing ETF products to get approval by the SEC is a tall order given that the SEC has been extremely cautious to accept ETF proposals in the past. The pioneers of Bitcoin trading, Winkleross Brothers, Cameron and Tyler, despite making a billion-dollar fortune in Bitcoin trading, have received stiff opposition from SEC. They were the first to submit their bid which demonstrates that the SEC nod is not a walk in the park.
One key reason for rejection in the past is that Bitcoin future contracts were not launched then. With the future contract already live, there is a high possibility that the SEC might review its position on this matter.
CBOE has made its intention to bring Bitcoin into mainstream trading known. Speaking to Bloomberg back at the start of November 2017, CBOE President Chris Concannon, said his firm is quite optimistic about ETFs.
The past week has seen a lot of volatility in the market as Bitcoin prices slipped by more than 44% from an all-time-high of $20,000 to a low of below $12,000. The price of Bitcoin has, however, recovered a bit in the past 24 hours and is currently trading at $14,532.7.
The arrival of ETFs and other Bitcoin related products is expected to bring more legitimacy and reduce the extreme volatility in Bitcoin prices.
We will be updating our subscribers as soon as we know more. For the latest on cryptocurrencies, sign up below!
Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.
Image courtesy of GotCredit via Flickr
Bitcoin price dumped hard on Monday, briefly slipping below $41,000, erasing gains recorded in the previous week. The premier cryptocurrency seems to have exhausted its recent rally propelled by industry vulnerabilities. At the time of writing, the world’s largest cryptocurrency was trading slightly lower at $41,385. Bitcoin’s total market cap has dipped by 2% over the past day, while the total volume of BTC tokens traded over the same period climbed by 58%.
Fundamentals
Bitcoin price has been facing retracements and a rollercoaster over the past few days after recently rocketing to a 20-month peak. On-chain data has suggested that many investors used the opportunity to take some profits, leading to a decline in the asset’s price.
Bitcoin’s price slump is mirrored in the wider crypto market, with the global crypto market cap decreasing by 1.85% over the past 24 hours to $1.55 trillion. The total crypto market volume has increased by 32% over the same period. The Crypto Fear and Greed Index has plunged from a level of extreme greed to a greed level of 70, suggesting a decline in risk appetite.
Ethereum, the largest altcoin by market capitalization, is currently trading at $2,167, down almost 3% for the day. Meme coins have been hit hard by the market slump, with Dogecoin and Shiba Inu down by more than 4% over the last day.
Last week on Thursday, cryptocurrency experts took notice of…
Bitcoin price edged lower on Thursday despite optimism in wider markets on the back of the Fed’s interest rate decision. The flagship cryptocurrency has been consolidating above the critical level of $42,000 after briefly topping $44,000, its highest level in 20 months. Bitcoin was trading 0.71% lower at $42,569 at press time. BTC’s total market cap has increased by more than 3% over the last day to $832 billion, while the total volume of the asset traded over the same period jumped by 22%.
Economic Outlook
Bitcoin price has been trading sideways over the past few days, suggesting a pause in its recent rally towards $45,000. The premier cryptocurrency has decreased by 4% in the past week but remains 15.22% higher in the month to date. The digital asset has staged a significant recovery this year after a torrid 2022 in which a string of scandals, including the collapse of FTX, led to a market meltdown, undermining the credibility of the sector.
The crypto market has been buoyed by the Fed’s latest interest rate decision. The US Federal Reserve on Wednesday held its key interest rate unchanged for the third consecutive time, in line with market expectations. With the easing of the inflation rate, members of the Federal Open Market Committee (FOMC) voted to keep the benchmark overnight borrowing rate in a targeted range between 5.25%-5.5%.
Additionally, the central bank indicated that three rate…
Bitcoin price has been hovering above the $43,000 psychological level over the past two days amid anticipation about the potential approval of a spot bitcoin ETF. The flagship cryptocurrency has climbed more than 16% in the past week and nearly 170% in the year to date. Bitcoin’s total market cap has increased by nearly 5% over the past 24 hours to $858.9 billion, while the total volume of the token traded rose by 43%. The Bitcoin price was trading at $43,914 at press time.
Fundamentals
Bitcoin price has posted significant gains over the past few days, climbing to its highest level since April 2022, before the crash of a stablecoin that started a litany of company failures, pummeling crypto prices. The world’s largest cryptocurrency briefly topped the crucial level of $44,000 on Wednesday amid rising momentum despite being massively overbought.
According to analysts, with no spot bitcoin ETF approvals yet and the halving event five to six months away, the market is riding on FOMO. Capital has been flowing in the Bitcoin market amid enthusiasm that the launches of spot ETF will bring in billions of dollars of new investment into the crypto sector.
Investors have already started providing capital as seed money for ETF products. Notably, a recent report by CoinDesk showed that the world’s largest fund manager, BlackRock, received $100,000 in capital from a seed investor for its spot bitcoin exchange-traded fund…
-
Blogs6 years agoBitcoin Cash (BCH) and Ripple (XRP) Headed to Expansion with Revolut
-
Blogs6 years agoAnother Bank Joins Ripple! The first ever bank in Oman to be a part of RippleNet
-
Blogs6 years agoStandard Chartered Plans on Extending the Use of Ripple (XRP) Network
-
Blogs6 years agoElectroneum (ETN) New Mining App Set For Mass Adoption
-
Don't Miss6 years agoRipple’s five new partnerships are mouthwatering
-
Blogs6 years agoEthereum Classic (ETC) Is Aiming To Align With Ethereum (ETH)
-
Blogs6 years agoCryptocurrency is paving new avenues for content creators to explore
-
Blogs6 years agoLitecoin (LTC) Becomes Compatible with Blocknet while Getting Listed on Gemini Exchange
