Cryptocurrency News: SEC's Impending Bitcoin ETF Decision and Other Crucial Developments
Summary:
The U.S. Securities and Exchange Commission (SEC) is expected to make its final decision on the first spot Bitcoin exchange-traded fund (ETF) in early 2024. The decision is eagerly awaited by investors and has led to the growth of Bitcoin futures. In other crypto news, Hong Kong’s HashKey Exchange plans to increase liquidity with market makers, BlackRock has received seed funding for its Bitcoin ETF, and French bank Societe Generale issued its first digital green bond on the Ethereum blockchain. Further, US crypto firms reportedly increased their lobbying expenditures in 2023 compared to the previous year.
As the deadline for a verdict from the U.S. Securities and Exchange Commission (SEC) on the first spot Bitcoin exchange-traded fund (ETF) in the country draws near, anticipation is building amongst investors. Following multiple postponements, the SEC's final decision is expected in early January 2024. Companies who have applied for approval have been in ongoing discussions with SEC officials, making requisite changes to their proposals. Should the ETF be approved, Bitcoin will become available for trading on Wall Street's major exchanges to a more diverse market of investors, backed by some of the world's leading investment firms. If rejected, however, the appeal could delay things further.
This anticipation has propelled Bitcoin futures open interest to hit $5.2 billion at the Chicago Mercantile Exchange (CME) on December 6, coming close to its peak value during the bullish market in October 2021. With a surge in BTC open interest, markets are bracing for a price pivot and more volatility in 2024.
In other news, this week’s Crypto Biz highlights include BlackRock obtaining seed capital for its spot Bitcoin ETF, HashKey extending its market maker strategy, and Societe Generale issuing a bond on Ethereum.
Hong Kong’s HashKey Exchange is gearing up to let individual and enterprise market makers boost liquidity on the exchange. HashKey will permit individuals and businesses who trade a minimum of $5 million of cryptocurrencies per month on the exchange to apply to become market makers. Depending on trading volume, users and firms could receive up to 0.015% of the transaction value as commission, with no commission fees on trades for all market makers. The exchange has been progressively adding to its services, including launching insurance coverage for assets stored in digital wallets last November.
Investment giant BlackRock has received $100,000 in seed funding for its spot Bitcoin ETF, as per the recent U.S. SEC filing. The investor, whose identity remains undisclosed, agreed to buy 4,000 shares at $25.00 each in late October 2023. BlackRock's latest filing indicates plans to borrow Bitcoin or cash from a trade credit lender on a temporary basis to pay the sponsor’s fee.
The third-largest French bank, Societe Generale, has issued its inaugural digital green bond as a security token on the Ethereum public blockchain. The bond is valued at €10 million and matures in three years. Its green status means it will be used to finance or refinance initiatives and enterprises under the eligible green activities category.
U.S.-based crypto firms have reportedly spent $3 million more on lobbying in the first three quarters of 2023 than they did in the same period in 2022. Coinbase leads the lobbying spend, with over $2 million, followed by Crypto.com, the Blockchain Association, and Binance. Despite its collapse in November 2022, FTX was a major spender in the crypto space on U.S. lawmakers' campaigns and marketing efforts prior to their downfall.
Published At
12/9/2023 12:00:00 AM
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