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Bitcoin ETF applications continue to flood SEC’s doors

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Despite garnering immense attention from across the globe, several aspects of the crypto-verse remain untouched by many. For instance, Bitcoin exchange-traded funds [ETF] have never seen the light of the day in the United States. As more players enter the market, the need for new and efficient features has started to surge. However, regulatory entities, particularly in the US seemed to be appalled by this.

The Securities and Exchange Commission [SEC] of the US has received an array of Bitcoin ETF applications throughout the years. Despite the constant urge and need for a crypto ETF, the US clearly stated it wasn’t ready for a crypto ETF. Most of the applications were seen shown the door or postponed. This did not stop firms from diving into the field as applicants for Bitcoin ETFs are still knocking on the doors of the SEC.

Prominent financial services platform Fidelity Investments, as well as crypto asset, managed Bitwise, separately sent out ETF applications. While Fidelity had already sent out its application, the platform decided to drive SEC to approve its purpose.

Bitcoin ETFs are still making rounds

As per, Bitwise’s filling, instead of a regular Bitcoin ETF, the platform intends to roll out an ETF pegged to cash-settled Bitcoin futures contracts. With this application, the platform hopes to garner much more than just an ETF. The filling read,

“[…] to obtain exposure to Bitcoin primarily through indirect investments in standardized, cash-settled Bitcoin futures contracts traded on commodity exchanges registered with the CFTC.”

In an elaborate filling Bitwise explained to the SEC why its application should be approved.

In other news, Fidelity decided to take a step forward and urge the SEC to approve its ETF application. Fidelity Digital Assets’ president, Tom Jessop along with six others from the firm decided to meet with the officials of the SEC. In this privately held meeting, members representing Fidelity reportedly laid out reasons for the approval of an ETF in the country.

The executives pointed out various aspects that included the ever surging demand for cryptocurrencies and products related to them. Along with this, members noted how other countries were well ahead in the game, while the US was lagging behind.

VanEck and ProShares have decided to walk away from Ether ETF filings

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Crypto-related exchange-traded funds [ETF] have had a tough time in the US. Asset management firm, VanEck is a popular one in the crypto-verse. However, the platform is known for being shot down with regards to Bitcoin ETFs by the Securities and Exchange Commission [SEC] of the US. Now, in a new turn of events, VanEck as well as another asset manager ProShares decided to withdraw its latest Ether ETF application.

ETFs have been a sensitive topic for the US financial watchdog, the SEC. While several countries have already approved Bitcoin or crypto related ETFs. US decided to take it slow. The SEC has been consistently delaying or disapproving crypto ETF applications. This has not only caused the US to take a back seat in the crypto game, but has also forced US citizens to miss out these ETF services.

While VanEck submitted its application for an Ethereum Strategy ETF back in May itself, ProShares filed its application on the same day. However, once VanEck decided step back, ProShares followed suit.

VanEck takes a backseat on Ether ETFs

In two separate filings, the aforementioned firms decided to take a step back on the same day. While none of the firms revealed the reason behind their sudden decision, the crypto community began laying out speculations. Several noted that the SEC would have expressed reluctance in approving an ETH ETF which would have further forced them to steer away.

Eric Balchunas, Senior ETF Analyst at Bloomberg, shared his opinion about the same on Twitter. His tweet read,

He further stated,

“As long we ONLY see the Ether ones ejected, I’d say that’s decent news for bitcoin ETF. Sort of like them saying, look, let’s baby step this, only bitcoin rn. Stop exciting the crypto trade pubs with all these filings.”

Another prominent firm, WidsomTree hasn’t pulled out from the ETF ETF race.

Crypto Mom expresses concerns over the US delaying Bitcoin ETF

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Crypto Mom, aka Hester Peirce, the Commissioner of the Securities and Exchange Commission [SEC], has been expressing concerns over how the US could be lagging behind in adopting Bitcoin ETFs.

Bitcoin ETF or Bitcoin exchange-traded funds have been trying to make a debut in the US for quite some time now. The regulators in the US, particularly the SEC, have been quite hostile towards this. An array of platforms have been sending out applications for the same, and almost every application has been either delayed or denied. However, the SEC has Crypto Mom, who has been urging the regulator to consider approving at least one Bitcoin ETF.

Appearing in a recent virtual conference, Peirce pointed out how all the other countries were moving ahead while the US hadn’t even approved one crypto ETF.

Crypto Mom calls out SEC

The SEC has been vocal about its angst towards the crypto-verse. The Ripple vs. SEC case is a classic example of the same. Bitcoin ETFs have made a debut all across the globe except for the US and the SEC has a primary role to play in the same. Speaking about the same Crypto Mom stated,

“We’re not a merit regulator, so we shouldn’t be in the business of deciding whether something is good or bad, an investor is thinking of their entire portfolio, and sometimes we’re thinking in one-off terms of a particular product standing on its own, and we forget that people are building portfolios.”

Peirce has always noted how the SEC had been overregulation the crypto-verse.

Recently, the SEC delayed Wisdom Tree’s Bitcoin ETF plea. In its notice, the SEC urged the public to send in their views and arguments or concerns with regard to the Wisdom Tree application. Revealing the reason behind the same, the SEC stated,

“The Exchange asserts that the manipulation concerns previously articulated by the Commission are sufficiently mitigated to the point that they are outweighed by quantifiable investor protection issues.”

Will SEC ever approve a Bitcoin ETF plea? Wisdom Tree’s appeal delayed

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The Securities and Exchange Commission of the United States of America has been vocal about its hostility towards the crypto-verse. The constant disapproval of Bitcoin ETFs is a significant model of the same.

Even though the world has started to embrace cryptocurrencies, a few governments and regulators continue to oppose them. Despite the ongoing slump that the market is currently in, the popularity of the assets continues to soar. This has forced regulators to take a deeper look into the industry. The SEC has had numerous fallouts with the crypto industry. The Ripple vs. SEC case stands as a prominent example.

Several firms have been seeking approval from the SEC for a Bitcoin ETF. However, the regulator has either delayed or shot down these appeals.

SEC delays another Bitcoin ETF appeal

In a recent report, the financial watchdog revealed that it was delaying its decision on Wisdom Tree’s Bitcoin ETF plea. The regulator took another turn and urged the public to submit their views on the approval or denial of the ETF.

The notice stated,

“The Commission requests that interested persons provide written submissions of their views, data and arguments with respect to the issues identified above, as well as any other concerns they may have with the proposal.”

Wisdom Tree filed an application with the regulator back in March 2021. This is the second time that the regulator is delaying its verdict. The agency was required to either give the project a green signal or deny it back in May 2021 itself.

The regulator has given the public a period of 21 days to submit their views to the Federal Register. Rebuttals will be filed within 35 days of publication. Elaborating on the reason behind the involvement of the public, the SEC wrote,

“The Exchange asserts that the manipulation concerns previously articulated by the Commission are sufficiently mitigated to the point that they are outweighed by quantifiable investor protection issues.”

Former SEC exec who rejected Bitcoin ETFs now helping a firm to get one approved

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There is nothing like the cryptocurrency industry. Hilarious fad tokens may have found a place but not Bitcoin ETF. At least not in the United States.

Regulatory approval of a Bitcoin exchange-traded fund [ETF] in the US represents the holy grail. The Securities and Exchange Commission [SEC] under former Chairman Jay Clayton had rejected Bitcoin ETFs. However, he does not hold the position anymore. Currently, Clayton is serving as a crypto advisor for asset manager One River.

Interestingly, the hedge fund has now filed for a Bitcoin ETF with the regulatory watchdogs of the country.

Clayton had previously stated that the US should never have an ETF on any stock exchange of the country citing market manipulation concerns. However, he is now helping One River to get one.

One River’s Bitcoin ETF

According to the asset management platform’s S-1 filing, dubbed ‘One River Carbon Neutral Bitcoin Trust’ would be listed on the New York Stock Exchange [NYSE]. The ETF plans to offset the carbon footprint associated with the cryptocurrency by buying and disposing of carbon credits necessary to account for the estimated carbon emissions related to the bitcoins held by the Trust.

It further stated that the Trust has entered into an agreement with LIRDES S.A., an Uruguay-based firm, to purchase MCO2 tokens representing certified reductions in greenhouse gas emissions. It also said,

“The MCO2 tokens issued by Moss are assets encrypted and tokenized utilizing blockchain technology and are stored on a registry managed by Verra, an organization that establishes and manages standards and programs in connection with carbon credits [“Verra”].”

As per the filing, the trust will not sell and or buy the cryptocurrency directly. Rather, it plans on leveraging third parties to offer the crypto assets via something called, “in-kind” transactions which involve the selling and redeeming of shares. In addition, Coinbase Custody has joined hands as the custodian for the ETF’s bitcoin assets.

VanEck’s Bitcoin ETF Plea Verdict Postponed To June

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The Securities and Exchange Commission’s constant delay in the approval or disapproval of VanEck’s Bitcoin Exchange Traded Fund [ETF] has left the community in distress.

While several other countries like Canada have started to enjoy the potentials of a crypto ETF, those living in the United States of America have been deprived of this feature. With no Bitcoin ETF being approved as of yet in the country, the citizens of America have lost the hope of a crypto ETF. However, the recent change in SEC’s leadership from Jay Clayton to Gary Gensler got the community excited. But the latest news from the financial watchdog wasn’t very crypto-friendly.

VanEck’s Bitcoin ETF Still On Hold

A recent filing from the SEC revealed that VanEck’s Bitcoin ETF verdict was further pushed to 17 June 2021 from 3 May 2021. While the SEC has the option of extending this sort of window before delivering a decision by 45, 60, or 90 days, the financial agency delayed VanEck’s approval or disapproval by 45 days.

Elaborating on the same, the Assistant Secretary of the SEC, J. Matthew DeLesDernier wrote in the filling,

“The Commission finds that it is appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change and the comments received.”

Several platforms have applied for the approval of a Bitcoin ETF in the country, but none have received a positive response. VanEck reportedly submitted all of the necessary paperwork for the Bitcoin ETF application back in January. This application was done in collaboration with SolidX, a well-known blockchain platform.

Additionally, many were on cloud nine after Gary Gensler was appointed as the Chairman of the SEC. This, however, seemed to have no impact on the approval of Bitcoin ETFs as they continue to be shot down.

Bitcoin ETF To Take More Than Year To Make A Debut In The US

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The entire crypto market saw significant growth in terms of both price as well as market cap. Despite this surge, Bitcoin ETFs still seem to be struggling to garner approval from the United States’ prominent financial watchdog, the Securities and Exchange Commission [SEC].

Bitcoin exchange-traded funds [ETF] have seen the light of the day in various countries across the globe. However, due to the stringent laws in the United States of America ETFs are still struggling to receive approval. While crypto lovers across the globe assumed that the SEC would give Bitcoin ETF a thumbs up considering the drastic growth of the coin, a prominent analyst pointed out that this could take more than a year.

Bitcoin ETF Could Take Up To Two Years

Appearing in a recent interview with CNBC, CFRA Research’s prominent analyst, Todd Rosenbluth suggested that the SEC would be taking some more time to approve Bitcoin ETFs. While prominent platforms like  VanEck, Fidelity Investments, and Valkyrie Digital Assets have laid out their proposals for the roll-out of a crypto ETF, CRFA’s head of ETF and mutual fund research asserted that these platforms would have to wait for quite a while.

He stated,

 “We’ve got a number of firms that have either gone through the filing process or have previously filed but are waiting for more clarity. The SEC is less likely we think to try to pick a winner, as to who comes first and I think we’re more likely to see them — if they do approve an ETF — to approve multiple Bitcoin-related ETFs.”

The United States of America has time and again revealed that it has been very strict with regard to laws pertaining to the crypto industry. While several countries like Canada have already given a green signal to Bitcoin ETFs, the US seems to be lagging behind. Rosenbluth added,

“We’ve got a number of firms that have entered. We think we’re likely to see one in the coming year or two, but we don’t have a firm timeframe as to when the answer would be yes.”

Goldman Sachs To Offer Notes Linked To ETF That May Give Exposure To Bitcoin

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Goldman Sachs, the American multinational investment bank and financial services company has filed with the US Securities Exchange And Commission [SEC] to offer an investment product that could give exposure to its clients to cryptocurrency such as Bitcoin.

This new investment product is tied to the performance of the ARK Innovation ETF, which is capable of investing in Bitcoin and products and services inside the crypto-asset’s boundary. While Goldman Sachs filing is not for a Bitcoin ETF, however, the product that would track an ETF exposed to the share of the cryptocurrency indirectly via an investment in a grantor trust.

The filing by Goldman Sachs stated,

“The ETF is an actively-managed exchange-traded fund that will invest under normal circumstances primarily (at least 65% of its assets) in domestic and foreign equity securities of companies that are relevant to the ETF’s investment theme of disruptive innovation. The ETF investment advisor defines “disruptive innovation” as the introduction of a technologically enabled new product or service that potentially changes the way the world works.”

Goldman Sachs And Its Change Of Heart For Bitcoin

The news comes a couple of weeks after the international banking giant’s COO John Waldron had revealed exploring Bitcoin ETF and custodial services with the US regulator due to the growing demand for the underlying cryptocurrency. In addition, the bank had also recently rolled-out its cryptocurrency trading desk again in a bid to support futures trading for BTC.

It is important to note that Goldman Sachs is among the country’s banking organizations that have not been a fan of Bitcoin for the longest time. Just last year, the multinational bank had called that Bitcoin is “not an asset class”. However, the change of winds could essentially strengthen Bitcoin’s position in the traditional finance world.

Currently, there are seven Bitcoin ETF applications in the US apart from Goldman Sachs. They are – Fidelity, SkyBridge, Morgan Stanley/NYDIG, VanEck, Valkyrie, WisdomTree, and Bitwise. This essentially meant that Bitcoin is just a green light away from huge capital inflows.

Fidelity Subsidiary Plans To Launch Bitcoin ETF

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Bitcoin ETFs have become increasingly popular as Bitcoin continued to flirt with its ATH. Fidelity Investments becomes the latest entrant in the join the race and is now prepping up the roll-out of its own Bitcoin ETF. According to the official document, the investment giant’s affiliate, FD Funds Management, has filed with the US Securities and Exchange Commission [SEC] to seek approval for the “Wise Origin Bitcoin Trust,”

The preliminary filing revealed that “Wise Origin Bitcoin Trust” would hold the crypto-asset and value its shares on the basis of its prices from major cryptocurrency exchanges, such as Coinbase and Bitstamp.

Fidelity’s statement to Reuters read,

“The digital assets ecosystem has grown significantly in recent years, creating an even more robust marketplace for investors and accelerating demand among institutions. An increasingly wide range of investors seeking access to bitcoin has underscored the need for a more diversified set of products offering exposure to digital asset”

Fidelity-backed trust does not plan to sell the crypto-asset, but will rather use it to settle certain expenses, which under current guidance of the IRS will be deemed as a sale of such virtual currency.

Bitcoin ETF Gains Traction

The US SEC has rejected all the Bitcoin ETF proposals in the past. It had acknowledged a proposal from VanEck last week. In addition, there are four applications in total that are pending review by the authority which included- NYDIG Asset Management, WisdomTree Investments, Valkyrie Digital Assets, and VanEck Associates Corp.

Unlike its US counterpart, Canada’s regulatory authority has been quite progressive. In Feb-March, three Bitcoin ETFs went live back-to-back on the Toronto Stock Exchange after receiving the stamp of Bitcoin ETF.

Just last week Brazil became the first country in the Latin American region to approve the exchange-traded fund. This was launched by asset manager QR Capital and is slated to go live by June this year.

Canada Aces The Bitcoin ETF Game As It Adds Another Feather To Its Cap

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Canada has repeatedly exhibited its interest and inclination towards crypto. The country has been more accepting of Bitcoin and altcoins, unlike several other countries. The Canadian regulators giving a green signal to an array of exchange-traded funds [ETF] is substantial proof of the country’s engagement in crypto.

In a recent announcement, Canada’s CI Global Asset Management suggested that it would be the third platform to launch a Bitcoin ETF in the country.

Canada Gets Its Third Bitcoin ETF

Canada’s third Bitcoin ETF is reportedly all set to launch its third Bitcoin ETF after receiving the approval of the country’s securities regulators. CI Global Asset Management has listed the ETF on the Toronto Stock Exchange under the ticker symbol, BTCX. This offering will reportedly be made available starting from today.

The Chief Executive Officer of CI GAM’s parent company, CI Financial, Kurt MacAlpine elaborated on the same and suggested that the BTC ETF allows users to have a “secure and convenient” way of HODLing the king coin. He added,

 “I believe our ETF stands out based on its highly competitive price point and CI and Galaxy’s extensive capabilities and track record in managing alternative investments and digital assets.”

Furthermore, the platform pointed out that the latest Bitcoin ETF would allow low-cost management fees, easier access to Bitcoin along with several others.

Partner and Head of  Asset Management at GDAM, Steve Kurz suggested that the crypto industry was prevailing. He further suggested,

“We believe the emerging digital asset class presents compelling growth and diversification opportunities. The CI Galaxy Bitcoin ETF offers a simple and secure access point for traditional investors to gain exposure to bitcoin.”

With the price of Bitcoin soaring to new highs every day, the demand for the king coin has been on a surge. While the United States of America has been kicking Bitcoin ETFs to the curb, Canada already has three ETFs under its radar.