BlackRock Plans Bitcoin ETF Acquisition; Federal Reserve's Stance on CBDC; Terraform Labs Co-Founder's Extradition Issue
Summary:
Global asset manager BlackRock plans to purchase spot Bitcoin ETFs for its Global Allocation Fund. Jerome Powell, Federal Reserve chair, assured that the U.S. is not near implementing a central bank digital currency that would surveil users. Meanwhile, Terraform Labs co-founder Do Kwon may be extradited to South Korea instead of the U.S. to face charges, despite the U.S. prosecutors contesting this decision.
Global finance giant BlackRock intends to acquire spot Bitcoin exchange-traded funds (ETFs) for its Global Allocation Fund (MALOX). According to the revised filing, MALOX could potentially purchase BlackRock's own spot Bitcoin ETF, referenced as the iShares Bitcoin Trust (IBIT). Additionally, ETFs offered by different providers are also being considered. The fund will exclusively invest in Bitcoin ETPs that are registered and traded on national securities exchanges, according to the Securities and Exchange Commission (SEC). Since its inception in 1989, the BlackRock Global Allocation Fund has aimed to offer investment returns by employing a diversified investment strategy in both U.S. and international equity, debt and cash market securities, including industry giants such as Microsoft and Apple. The total assets managed by MALOX as of March 7 were valued at $17.8 billion.
According to Jerome Powell, the chair of the Federal Reserve, the U.S. is far from implementing a central bank digital currency (CBDC), adding that the central bank is not focused on creating a CBDC with user surveillance functionality. Powell clarified at a Senate Committee on Banking, Housing, and Urban Affairs hearing held on March 7, that there is currently no move toward recommending or adopting a CBDC.
Powell also dismissed speculation that a CBDC with a retail focus could potentially enable surveillance and allow the government to track all user transactions. He underscored that such a practice would not be considered or proposed in the U.S. If a CBDC were ever to be introduced by the Fed – which remains a distant prospect – it would be channeled through the banking system, Powell mentioned.
Co-founder of the now defunct Terraform Labs, Do Kwon, will likely be extradited to his home country, South Korea, to face charges. Reports from local media outlets suggest that an appeals court has reversed an earlier High Court decision in Podgorica, Montenegro, advocating his extradition to the U.S. It is alleged that this action violated criminal procedure law provisions. Kwon has stated his preference to be extradited to South Korea so that he can be nearer to his family. Despite facing a possible 40-year prison sentence in South Korea, U.S. prosecutors are contesting the high court ruling in Montenegro, insisting on Kwon's extradition in line with international and bilateral agreements and Montenegro's law. Terraform Labs declared bankruptcy in the U.S. on January 21, following the collapse of the Terra ecosystem in May 2022. After this event, Kwon disappeared from the public eye until his arrest in Montenegro for allegedly using counterfeit passport to travel to Dubai.
Published At
3/8/2024 4:02:53 PM
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