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Bitcoin ETF, a first in India

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The launch of India’s first Bitcoin and Ethereum Futures ETF and Metaverse US-listed Large-cap Discount Certificates by Torus Kling Blockchain IFSC, a 50:50 joint venture between Sam Ghosh endorsed Cosmea Financial Holdings (CFH) and Kling Trading India, signed an MOU with India INX has been the hot topic of the hour in the nation, as reported by local media.

These Exchange Traded Funds (ETF) Futures will be barraged under a Sandbox design of IFSCA. This will be the fircrypto-supportedted futures ETF outside of the US and the first Asian Discount certificates trailing Metaverse Large Cap stocks in US and Europe markets.

Torus Kling Blockchain will be at the financial end providing liquidity to India INX by catering to the all-time necessity of deep liquidity with smart order routing. The Torus global distribution team and its partners are accountable for the distribution of the products, according to reports.

Mr. V.Balasubramaniam, the Managing Director and CEO of India INX, said,

“India INX at GIFT IFSC is looking at exploring the launch of Digital Asset based products and has already made an application to IFSCA under Regulatory Sandbox. This is a part of our product innovation initiative to benchmark offerings with other internatiofinancialance centers. We will be launching products in these new-age assets in compliance with the prevailing laws after receiving all required post regulatory approvals”

Bitcoin ETF’s big struggle in the U.S

There have been big battles that were faced to launch the first Bitcoin ETF in the U.S. The reason was that Bitcoin, the largest cryptocurrency in the world, seemed to be unregulated. In addition, the Securities and Exchange Commission (SEC) was hesitant to allow an ETF focused on the then-new and broadly unproven cryptocurrency market to make its way into the community.

After 8 long years of struggle, the first application for a Bitcoin ETF trade, at the New York Stock Exchange (NYSE), was filed in the U.S. The first Bitcoin ETF in the United States began trading on 19 October 2021.

Now, India escalated its game by permitting the launch of not only Bitcoin ETF but also Ethereum futures ETF. This being a first, crypto enthusiasts look forward to more ETFs being launched.

ProShares solicits SEC approval for Metaverse ETF

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After its successful Bitcoin ETF launch in the USA, ProShares now files with the Securities and Exchange Commission (SEC) seeking approval for the launch of Metaverse ETF.

Just a few months ago, back in October, Proshares’s application managed to harvest the approval of the SEC for the Bitcoin (BTC) Exchange-Traded Funds (ETF). That was a benchmark in the Crypto-world as it marked the debut of Bitcoin ETFs in the US.

Now, the first American company to launch a futures-backed Bitcoin ETF in the USA has set sail to the Metaverse arena. Considering, that the SEC did not take too long to officialize the Bitcoin ETF, it will not come as a surprise if the Metaverse ETF bags this approval as well. According to recent filings with the SEC, the Exchange-Traded Fund is called The ProShares Metaverse Theme ETF.

According to sources, Haim Israel, a strategist at the Bank of America, believes that Metaverse could boost the cryptocurrency industry to a higher level and that it could cause digital assets to start being employed widely for financial transactions.

ProShares’s Metaverse ETF to track the who’s-who of tech giants

If approved, the ETF will track companies working on Metaverse-themed initiatives, specifically Solactive Metaverse Theme Index (SOMETAV). The SOMETAV Index will consist of companies providing services around the Metaverse or that employ this type of technology, such as Apple, the GPU manufacturer- Nvidia, Meta (formerly known as Facebook), Alphabet, as well as gaming majors Activision Blizzard, EA, and Take-Two, among others.

The above-said companies are the ones that are rumored to be venturing their future business lines into metaverse like a virtual world, 3-D experience, personal avatars, and so on.

ProShare has not verified that the ETF will have any straight visions on Cryptocurrency or non-fungible tokens (NFT) yet, although some of the indexed companies like Twitter and Meta have already acquainted themselves with the Crypto-world.

ProShares is the most recent firm looking to jump into the fast-evolving Metaverse arena. Not very long ago, Grayscale Investments, the world’s largest digital management firm predicted that the industry would soon be worth over $1 trillion.

Another Spot Bitcoin [BTC] ETF in Canada while the US still awaits

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Fidelity Investments is prepping to launch a spot Bitcoin [BTC] ETF in Canada while its filings for the same are yet to receive the green light from the Securities Exchange Commission [SEC] in the United States. With respect to the financial service firm’s ETF, dubbed as the Fidelity Advantage Bitcoin ETF [FBTC], which would directly acquire physical BTC meaning the investment vehicle would purchase actual Bitcoin rather than obtain it via a derivative instrument.

The latest maneuver provides a much-needed shot to the arm for one of America’s leading brokerage entities having a total of $4 Trillion assets under management [AUM] is catering to its burgeoning clientele based in neighboring Canada. While in its home country, regulators are still figuring out whether or not to allow a spot BTC ETF.

This is not the first time spot BTC exchange-traded fund has been approved. A few days ago, Singapore became the newest entrant as it now offers a ‘Physical’ BTC fund created by its homegrown Fintonia Group. Citing the latest development, Ravi Menon, Managing Director of Monetary Authority of Singapore [MAS], noted that the best approach would be not to impose a total ban on these instruments. Speaking on the choice of the king coin, Adrian Chng of Fintonia reportedly said.

Bitcoin is an excellent form of collateral for loans. It trades 24/7 and is highly liquid, with approximately $30 billion to $60billion per day. If required, it can be quickly liquidated in comparison with, for example, commodities and real assets.

On the other hand, U.S firms’ have struggled so far to gain approval for the spot fund from the country’s top regulator. To top that, the recent development in Canada has irked many in the crypto community. One of them is prominent investor, Lark Davis who expresses his frustration with regards to SEC’s stance.

No Bitcoin [BTC] ETF in US?

So far, the market has welcomed a number of futures ETFs such as the ProShares Strategy and Valkyrie Bitcoin Strategy but the question arises as to when will the U.S. regulatory body would finally approve the first spot Bitcoin ETF? Steven McClurg, the co-founder of Valkyrie, in an interview with CNBC stated that a spot ETF ‘won’t be until at least middle of next year.’ Grayscale Investments, which recently filed to convert the popular BTC trust into a spot ETF, is also eyeing the same by summer 2022.

Even, David LaValle at Grayscale Investments who heads the ETFs division, stated in a MarketWatch interview that he too sees the possibility of regulators giving the green signal for a spot-bitcoin ETF by July next year.

VanEck fails to make it to the cut as SEC throws its Bitcoin ETF proposal out the window

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While the entire community assumed that the US opened the door to an array of Bitcoin ETFs, VanEck’s proposal for an ETF was recently shown the door.

The entire world was stunned following the Securities and Exchange Commission’s [SEC] decision to finally give crypto exchange-traded funds a green signal. Several firms fought long and hard to amass approval from the SEC. However, the financial regulator either delayed or denied the applications. But soon after two Bitcoin ETF applications, from ProShares and Valkyrie, received permission to launch, the community hoped for similar products.

This wasn’t the case as VanEck’s spot Bitcoin ETF proposal got a big no from the SEC. While this decision was time and again delayed by the SEC, it finally decided that the firm wasn’t ready to make its debut just yet.

VanEck’s Bitcoin ETF rejection disappoints CEO

VanEck’s Bitcoin ETF application was delayed back in September and the financial regulator had until 14 November to give its verdict. Days before its deadline, the SEC released a statement dismissing the application and citing concerns about price manipulation.

The safety of the investors happens to be one of the major interests of financial regulators. The VanEck application was rejected as it did not match up to the level of protecting its investors as well as the public interest.

The CEO of the firm, Jan van Eck expressed immense distress over SEC’s decision. Therefore, he took to Twitter and stated,

“We are disappointed in today’s update from the SEC declining approval of our physical bitcoin ETF. We believe that investors should be able to gain #BTC exposure through a regulated fund and that a non-futures ETF structure is the superior approach.”

ProShares made history soon after becoming the first firm to amass the approval of the SEC to roll out a crypto ETF. While this is a futures ETF product, the community was hoping to hoard a spot Bitcoin ETF. This could certainly take a while considering the SEC’s track record.

Additionally, the price of Bitcoin took a massive fall as it dropped to a low of $63K, during the time of writing.

Is Bitcoin ETF really a “less attractive version” of BTC?

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The highly-anticipated Bitcoin ETFs made an official debut on Wall Street this week. This has significantly spurred a massive rally and pushed the crypto market cap to a record $2.7 trillion. However, the investment vehicles has met with its fair share of criticisms.

Former National Security specialist and Whistleblower Edward Snowden took a dig at the big shot Venture Capitalists for heavily investing in what he claims to be “less appealing versions” of Bitcoin instead of allocating their resources to payment-related institutions which would aid in creating the very basic cash registers and applications solely focused on crypto payments. He ironically termed it as a ”Pro gamer move”. Snowden, in his latest Twitter post, stated,

VC guys keep trying to make cryptocurrency a global standard by spending billions to invent less-attractive versions of Bitcoin, instead of just buying payment-system companies to make the most common cash registers and apps support crypto payments by default. Pro-gamer move.

Prominent Bitcoin advocate and Co-founder of Morgan Creek Digital, Anthony Pompliano aka ‘Pomp’ too chimed in to denounce top-level executives as well as investors and founders who take undue advantage “from simply plugging into the bitcoin network.” According to the exec, these market players onboard millions of individual straight away to start working for them without paying a dime.

Bitcoin ETF boon or bane?

Supporters of the flagship cryptocurrency have been advocating the idea for a spot Bitcoin ETF instead of a Futures product as they prefer to own crypto assets rather than through a derivatives portfolio. One of the key arguments against the futures-based bitcoin ETF is that managing those contracts can be extremely expensive, compared to its spot counterpart.

Another interesting factor that needs to be considered are that Contango and Backwardation are unique to the futures product market. The market is said to be in contango when prices of a futures based contract are higher in comparison to a spot price. On the other hand, when the forward future product is lower than the price of spot, the market is said to be in Backwardation. Critics believe that the above conditions do not provide a efficient exposure to BTC for investors.

Many speculates that even trusted digital assets management firm like the Grayscale Investments, with their portfolio called GBTC, may not be as effective in accurately tracking bitcoin prices since there has been instances when it traded at a much higher prices to the underlying asset in the past. At present, it is trading at a discount price to bitcoin amidst investors dumping the product due to the recent entry of ProShares ETF.

It is a waiting game for now. There are many pros and cons to weigh in and gauge how the market players respond in the near future. The launch of these investment vehicles for the institutions have been pivotal and it may subsequently pave the way for such funds for retail investors soon.

Bitcoin ETF approval continues to get endorsements from crypto community

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Bitcoin’s latest price change was closely linked to the approval of the Bitcoin ETF application presented by ProShares. The CEO of the crypto exchange FTX, Sam Bankman-Fried commented on this and even suggested that it was a “huge step forward.”

The world assumed that Bitcoin ETFs wouldn’t be seeing the light of the day in the US considering the SEC’s stringent procedures. However, the SEC finally answered the prayers of several crypto enthusiasts by giving a green signal to the Bitcoin ETF application put forth by ProShares.

This move was lauded by many and Bankman-Fried joined the list.

Bitcoin ETF approval paving the way for more crypto products in the US?

Regulations are now part of the crypto-verse. Even though the industry started out to steer away from the restraints of centralized institutions, it has unfortunately transformed into a space that has to abide by every law in the book. With the magnitude of scrutiny that has been taking place over the last couple of months, the crypto industry could soon lose its essence of decentralization.

While the approval of a Bitcoin ETF in the US brought in hopes into the market, altcoin ETFs could still be a far-fetched idea, several speculated.

Appearing in CNBC’s recent interview, FTX’s CEO Bankman-Fried revealed that he wouldn’t be surprised on witnessing more regulations on the crypto market.

Despite having a strong presence in the US, FTX intends to further expand across the country. In order to do so, the exchange certainly has to get on the good side of regulators like the Securities and Exchange Commission [SEC] as well as the Commodity Futures Trading Commission [CFTC] of the US.

Bankman-Fried addressed the same and said,

“We’re excited to work with the [Commodity Futures Trading Commission], excited to work with the SEC and with other regulators to figure out how we can have fully regulated and licensed market activity in the United States.”

FTX has been popping up in the news quite often. From securing funding in its seed rounds to making upgrades to its platform, the exchange has managed to stay relevant.

Valkyrie Bitcoin Futures ETF to be launched this week: Analysts

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According to the ETF analysts from Bloomberg, the Valkyrie Bitcoin futures ETF trading is scheduled to start as early as this week. After the launch of the ProShares Bitcoin futures ETF on the New York Stock Exchange (NYSE), Eric Balchunas, a Bloomberg ETF analyst, claims that it is very “likely” for Vakyrie’s ETF launch.

On 15th October, the United States monetary authority, Securities and Exchange Commission or SEC, accepted the letter requesting the registration for the shares of Valkyrie’s Bitcoin futures ETF on NASDAQ.

The first Bitcoin futures ETF by ProShares garnered approval from the authorities and will be available to trade on the NYSE under the name BITO. If the ETF by Valkyrie gets approved, it would be the second BTC ETF to procure approval in the United States.

Valkyrie among others racing for Bitcoin futures ETF approval

Although Eric Balchunas tweeted that the Valkyrie Bitcoin futures ETF will get approval by Wednesday or Thursday, another Bloomberg analyst, James Seyffart, claimed that Valkyrie’s ETF ($BTF) could go live at the same time as ProShares ETF, but this doesn’t seem to be the case.

Much to everyone’s surprise, Invesco dropped out from the Bitcoin futures ETF race on 18th October. The firm made a statement regarding this dropout,

“We have determined not to pursue the launch of a Bitcoin futures ETF in the immediate near-term; however we will continue to work in partnership with Galaxy Digital to offer investors a full shelf of products with exposure to this transformative asset class, including pursuing a physically-backed, digital asset ETF.”

Invesco

What about a Bitcoin-backed ETF?

We witnessed a discussion regarding the approval of a Bitcoin-based ETF in the near future in Anthony Pompliano’s Best Business Show.

In the show, Seyffart and Balchunas shared their views on the factors revolving around the approval of a Bitcoin-backed exchange-traded fund. While both the firms have faith in the release of Valkyrie Bitcoin futures ETF, it seems that the applications for BTC ETF will remain pending.

Both the analysts claim that it is not possible for the ETF to get approval this year because the Chairman of SEC doesn’t seem to be comfortable in giving a green signal to a BTC-based ETF.

ProShares’ Bitcoin ETF becomes first of its kind to garner green signal from SEC

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Bitcoin exchange-traded funds [ETF] have tried long and hard to make a debut in the US. This could finally be changing as ProShares’s application managed to garner the approval of the Securities and the Exchange Commission [SEC]. Just yesterday, Bloomberg shared a report noting that the USA would be getting its very first Bitcoin ETF and the SEC didn’t take too much time to make it official.

The SEC amassed immense hostility for its decisions pertaining to Bitcoin ETFs. An array of applications were shown the door after being time and again delayed. Many from the crypto community hoped that this would be changed with the departure of Jay Clayton and the arrival of Gary Gensler, the former and current chairman of the SEC, respectively.

The gods had finally answered the prayers of the US citizens as the SEC gave a green signal to ProShares Trust’s Bitcoin ETF. This would mean that ProShares would be listing its shares on the New York Stock Exchange’s Arca. The firm’s ETF would reportedly be rolled out by 18 October 2021 following the filing of a post-effective amendment prospectus.

James Seyffart from Bloomberg tweeted about the same and stated,

“There it is! Bloomberg’s data team in the process of adding the ProShares Bitcoin Strategy ETF to the terminal. Ticker will be $BITO. 95 bps — less than half $GBTC’s 2% fee. This thing is going live next week. Either Monday or Tuesday.”

Back in August, ProShares along with VanEck decided to pull the plug on their Ether ETF filings. While several expressed angst over this, the approval of a Bitcoin ETF was a relief to many.

Bitcoin [BTC] pushes beyond $60K

Bitcoin [BTC] was sitting below the $60K zone for the longest time now. The king coin witnessed a massive plummet from an all-time high of $64K. During the time of writing, BTC had not only hit $60K but even made it past this zone. BTC was trading for $61,359 with a 3.41% surge in the last 24-hours. The entire week was certainly beneficial to the asset as it acquired gains of about 11%.

Additionally, Bitcoin’s market cap was at a high of $1.15 trillion.

Bitcoin ETFs could finally see the light of the day in the US

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Crypto enthusiasts of the United States have been yearning to listen to the news of at least one Bitcoin ETF garnering approval from the Securities and Exchange Commission [SEC]. A Bloomberg report suggested that a Bitcoin ETF could be approved as early as next week.

Bitcoin ETFs have had a rather tough time in the US. Cryptocurrencies witnessed drastic growth over the last couple of months. From being closely linked to the dark web, to being widely accepted by governments across the globe, BTC has certainly come a long way. While an array of crypto-related services were used by many, BTC ETFs failed to amass the approval of certain financial watchdogs. When the entire globe was enjoying crypto exchange-traded funds, the US was the only country that was being constantly left behind.

This was soon going to change as an ETF analyst, Eric Balchunas affirmed that BTC futures ETFs would not face any opposition from the SEC. ProShares Bitcoin Strategy ETF could potentially be the first of its kind to launch in the US.

Bitcoin ETFs touch down in the USA

BTC ETF applications in the US witnessed nothing but constant delays or disapprovals. Several officials even suggested that the country wasn’t ready for a crypto ETF. Bringing in a whole new perspective to this, Bloomberg reported that ETFs from ProShares and Invesco could commence trading from next week. The applications of both these platforms were submitted and the judgment on them was due next week.

While all the sources remained anonymous, Eric Balchunas noted that it was a “pretty much done deal.”The tweet further read,

However, considering the track record of the SEC, Balchunas noted that he wasn’t ready to close the case. He added,

“Like I said tho until these little F-ers (ETFs) are literally trading on the exchange I’m not ready to close this case. But odds now over 90% IMO.”

Additionally, during the same time, the price of Bitcoin hit a high of $60K. BTC hit this level for the first time since April 2021. At press time, the king coin was trading for $59,055 with a 2.51% daily surge. The market cap of the coin was also seen soaring and was noted at $1.11 trillion.

What’s validating Bitcoin’s [BTC] bullish setup?

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The crypto market flipped neutral as Bitcoin [BTC] scaled an impressive rally this month. September can be marked as the month when a nation made Bitcoin its legal tender, on the other hand, TikTok and Twitter started using Ethereum [ETH]. However, the downtrend has been particularly damaging for several assets in the market that shed significant gains over the month.

However, the powerful jump managed to sweep the increasing sentiment of fear from the investors’ minds. As a matter of fact, the Crypto Fear & Greed Index was now exhibiting a neutral reading of 49, at the time of writing. But where is the market heading now?

fear and greed

Anticipation of Bitcoin ETF

Historically speaking, October has proved to be bullish for the king coin and, by extension, the cryptocurrency market. Yet another factor that could drive its price higher is the anticipation of Bitcoin exchange-traded funds [ETFs]. While the US Securities and Exchange Commission [SEC] has delayed the decision with regards to four Bitcoin ETFs, Bloomberg analyst Eric Balchunas’ prediction, about the authority rolling out one by the end of October, might still hold true.

Along with the pressure from the cryptocurrency community in the United States, to which SEC has mostly turned a blind eye, several countries have given a green signal to these products which put the regulatory entity in a tight position. While many believe that SEC would take a prudent step in the wake of enormous adoption, the ball still lies in its court. But Balchunas appears to be optimistic. His tweet regarding the same read,

“Yes, the SEC has kicked can on bitcoin ETF approval BUT that is for the physically-backed ones under ’33 Act. The futures ETFs filed under the ’40 Act [which Genz loves] are very much alive and likely on schedule (we think 75% chance approved in Oct). Here’s our odds:”

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What's validating Bitcoin's [BTC] bullish setup? 4

The overall BTC market

Both technicals and fundamentals look fairly well. For instance, the BTC hash rate has been on a surge and was approaching ATH levels. To top that, the Open Interest [OI] and spot volumes also reflect a balanced picture. There’s moderate leverage in the market as the spot volume eclipsed the OI figures. Hence, a pullback in terms of the crypto-asset’s price action would not be as damaging as it was in the last two months.

The other way around, the market sentiment would become even more favorable if Bitcoin manages to soar higher.

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