Bitcoin ETFs Attract Sizeable Investments Amid Blockchain Adoption by Big Firms
Summary:
Asset managers anticipate a surge in Bitcoin (BTC) exchange-traded funds (ETFs) investments in the second half of 2024. Bitwise is engaged in detailed discussions with institutions aiming to expand their Bitcoin ETFs portfolio. Overseas investors are also showing interest, with Thailand and Brazil modifying rules to facilitate investment in U.S. traded Bitcoin ETFs. However, despite Bitcoin's growing popularity, Coinbase is planning to raise $1 billion through senior convertible notes due to cash flow issues. In other news, a significant silence from the U.S. SEC regarding Ether (ETH) ETFs might signal a potential setback for approvals; gaming giant Ubisoft has become a validator on the XPLA blockchain; global financial institutions like Goldman Sachs, BNY Mellon, and Cboe Global Markets have successfully conducted a large-scale pilot test of blockchain technology.
Funds poured into Bitcoin (BTC) exchange-traded funds (ETFs) are expected to grow even faster in the latter half of 2024, according to asset management firms. Bitwise, in particular, is participating in in-depth discussions with institutions representing a vast wealth of assets intending to include, or broaden their Bitcoin ETF investments in the forthcoming months. Bitwise's chief investment officer, Matt Hougan, indicated in an investor note that numerous individual investors, venture capital firms, family offices and hedge funds are preparing to augment their investments in Bitcoin ETFs come the end of June. Bitcoin ETFs are also gaining traction among foreign investors, the Thailand Securities and Exchange Commission, for instance, has adjusted its regulations to allow private funds to buy into American-traded Bitcoin ETFs. Brazil followed suit, facilitating investors to funnel their funds into BlackRock's ETF. However, despite the excitement surrounding Bitcoin, Coinbase, the cryptocurrency exchange, is looking to fundraise $1 billion through senior convertible notes, indicating its cash flow may need a boost. This week, Crypto Biz also dives into the prospects for Ether (ETH) ETFs and the issues faced by Coinbase alongside how global banks are adopting blockchain. The silence from the U.S. Securities and Exchange Commission concerning Ether ETFs could be a negative omen for hopeful approvals by May, reports Bloomberg's ETF analyst, Eric Balchunas. Balchunas cut down the chances of seeing approval of Ether ETFs to a modest 35%, mostly due to the inactivity from the SEC nearing the final deadline. Gary Gensler's perspective on Ether's status as a security also plays a role. One of the world's leading gaming corporations, Ubisoft, has taken a step into blockchain technology by becoming a validator node on the XPLA network. As stated in a press release by XPLA, Ubisoft will have an active role in deciding on governance proposals in its collaboration with XPLA. The digital currency exchange, Coinbase plans to garner $1 billion through senior convertible notes with the intent of repaying its debts. The issuance will be restricted to eligible institutional buyers. The due date for repayment has been set for April 1, 2030, unless earlier conversions, repurchases, or redemptions are made. A significant blockchain pilot test has been successfully conducted with participation from major global financial institutions, such as Goldman Sachs, BNY Mellon, and Cboe Global Markets. Large-scale transactions were pulled off in numerous sectors like digital money, securities lending, tokenized assets and more via distributed ledger technology, on the newly founded Canton network.
Published At
3/15/2024 11:30:00 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.