VanEck, Grayscale Eye Bitcoin ETFs & South Korea Mulls Credit Card Crypto-Ban; Matrixport Clarifies Report
Summary:
Asset management firms VanEck and Grayscale have applied to list shares of spot Bitcoin exchange-traded funds. In South Korea, authorities are considering a ban on purchasing digital assets with credit cards due to illegal outflow and money laundering concerns. Meanwhile, the founder of Matrixport, Jihan Wu, addressed misconceptions regarding a company report - not meant for the public - that caused unrest in crypto markets.
Asset management firms VanEck and Grayscale have lodged applications to list shares of spot Bitcoin ETFs, marking the latest in a series of such filings. Over in South Korea, a proposal is under consideration to enforce a ban on purchasing digital assets - including cryptocurrencies - using credit cards. Furthermore, recent misconceptions about a company document, not originally intended for public release, from Matrixport have been addressed by its founder.
Asset management giants VanEck and Grayscale are the newest entrants to register for share listings of spot Bitcoin exchange-traded funds. Both companies have submitted separate filings to the US Securities and Exchange Commission (SEC). According to these documents, VanEck Bitcoin Trust and Grayscale Bitcoin Trust are planning to register their shares via Form 8-A, with potential listings on the Cboe BZX Exchange and New York Stock Exchange Arca, respectively. Earlier, Fidelity also joined the queue of filings with a similar application for its Wise Origin Bitcoin Fund. The SEC right now is mulling over an array of spot Bitcoin ETF applications, with an anticipatory decision due as soon as this week. Analysts predict the SEC might approve numerous listings before Jan. 10.
Traditionally, the SEC has rejected all spot Bitcoin ETF applications but has given a green light to several futures-linked products.
Under the radar, South Korea's premier financial watchdog - the Financial Services Commission - is mulling over changes to country's credit finance regulations to prevent citizens from buying cryptocurrency using credit cards. The proposed changes stem from worries about unlawful outflows and risks of money laundering in case South Koreans purchase cryptocurrency from foreign exchanges.
Regarding illegal fund flows to offshore virtual asset exchanges, money laundering, speculation and speculative encouragement, the FSC has stated, "Concerns have been raised," and as a result, it has defined the purchase of virtual assets as a disallowed payment. Presently, domestic crypto exchanges only sanction trades between digital assets via deposit/withdrawal accounts where user identification is possible; but this does not apply to foreign crypto exchanges.
Jihan Wu, the founder of Matrixport, has issued a clarification after concerns were raised over his company's controversial report on spot Bitcoin ETFs which led to a fall in bitcoin prices on January 3. Wu emphasized that the report, containing the company's analysis, was never meant for mass distribution. The dissemination was "not planned by Matrixport and is beyond our control", Wu said.
Jihan Wu also dismissed the idea that his firm's report was the cause of Bitcoin's sharp decline on Jan. 3. Wu stated that the current volatility and the potential approval uncertainty of a Bitcoin ETF in January 2024 are ultimately of no significance when considering Bitcoin’s history and its future prospects.
Published At
1/4/2024 9:44:55 PM
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