US Banks Compete for First Bitcoin ETF as Meta Reports $40B Loss in Metaverse Division
Summary:
The competition among major US banks, particularly Morgan Stanley and UBS, over the introduction of the first Bitcoin ETF is escalating. Bitcoin Cash, a Bitcoin spin-off, has undergone its second halving event. Meta, formerly known as Facebook, has recorded a loss of $40 billion on its metaverse division since 2021. Despite significant revenues, financial decline within Meta's Reality Labs poses concerns for the company's future.
The competition is heating up among America's top-tier banks as each vies to be the premier Bitcoin ETF service provider. In other cryptocurrency news, Bitcoin Cash, a Bitcoin derivative established in 2017, has recently experienced its halving event. In the meantime, Meta, formerly recognized as Facebook, has reported a $40 billion loss in its metaverse division since its inception in 2021.
Morgan Stanley is fiercely contending with UBS Investment Bank over the launching of the inaugural wirehouse-backed spot Bitcoin (BTC) ETFs in the United States. On April 3rd, crypto aficionado Andrew (AP_Abacus) announced on platform X that Morgan Stanley has its sights set on surpassing UBS to become the first wirehouse to fully approve the Bitcoin ETF. According to Andrew, who has referenced internal communications from Morgan Stanley, the bank "will likely disclose its move into Bitcoin ETFs a few days in advance."
Global banks are keenly discussing the addition of the Bitcoin ETF, treating it as a competitive race. Bloomberg ETF specialist, Eric Balchunas, offered his perspectives on the situation while acknowledging the fact that no Bitcoin ETFs have yet been introduced by either Morgan Stanley or UBS to date. He posited that it’s a wait-and-see scenario, as banks wait for a competitor to make the first move.
The speculation surrounding Morgan Stanley's rival push against UBS arises a few weeks following Andrew's disclosure that Morgan Stanley is on track to approve Bitcoin ETFs.
Bitcoin Cash, with its faster and lower-cost design compared to Bitcoin, stumbled upon the completion of its second-ever halving occasion, where miner rewards were reduced by 50%. Despite the hiccup, the cryptocurrency rebounded shortly after. A day leading up to the halving, Bitcoin Cash's value slipped by roughly 10% before recuperating back to a 5.5% increase post-halving.
Mark Zuckerberg's Meta has reported substantial losses in its metaverse division since its rebranding from Facebook in 2021. Despite recording respectable revenues of 134.9 billion USD in 2023, continued financial losses within the Reality Labs division - which controls products like the Quest VR headset - are cause for concern for the company. With the decreasing hype towards the metaverse, Meta appears to be shifting towards an AI-focused approach for its future plans.
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Reported by Geraint Price, Sam Bourgi, and Felix Ng.
Published At
4/4/2024 4:08:30 PM
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