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  • First Trust seeks SEC approval for Bitcoin ‘Buffer ETF’ to safeguard investors

    First Trust seeks SEC approval for Bitcoin ‘Buffer ETF’ to safeguard investors

    • First Trust files for Bitcoin Buffer ETF with SEC, aiming to mitigate risk via options.
    • Buffer ETFs gaining momentum, 139 trading on US markets, $32.54B AUM.
    • Buffer ETFs don’t guarantee complete protection, or assess risks.

    Financial services firm First Trust has recently submitted a filing with the US Securities and Exchange Commission (SEC) to launch a groundbreaking investment product – the First Trust Bitcoin Buffer ETF.

    Unlike traditional spot Bitcoin ETFs, this innovative fund aims to provide investors with a unique risk mitigation strategy, utilizing options to safeguard against potential market downturns. Let’s delve into the details of this latest development in the cryptocurrency investment space.

    First Trust’s Bitcoin Buffer ETF filing

    First Trust’s move to file for the Bitcoin Buffer ETF signals a shift in the cryptocurrency investment landscape. This ETF is distinct from spot Bitcoin offerings, as it utilizes options to pursue a defined investment outcome. Acting as a buffer, it imposes a limit on potential losses during market drops.

    First Trust’s ETF is structured to participate in the positive price returns of the Grayscale Bitcoin Trust or other Bitcoin-related exchange-traded products (ETPs), providing investors with a unique approach to risk management.

    Rise of Buffer ETFs in the market

    Buffer ETFs have been gaining traction globally, with 139 such funds currently trading on U.S. markets, amassing a total asset under management of $32.54 billion.

    BlackRock, a major player in the ETF space, introduced its iShares buffer ETFs earlier this year. These funds offer investors a specified level of downside protection while capping potential upside gains. Analysts anticipate more entrants in this space with diverse strategies, contributing to the growing trend of innovative investment products aimed at addressing market uncertainties.

    While the concept of buffer ETFs provides a novel approach to risk management, investors must understand that these funds do not guarantee complete protection.

    First Trust’s filing emphasizes potential risks, including the risk of losing some or all invested capital. Investors should carefully evaluate the suitability of buffer ETFs for their portfolios, recognizing that these products may not be suitable for everyone, and success in providing downside protection is not guaranteed.

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  • U.S. lawmakers want SEC to ‘immediately’ approve Bitcoin ETFs

    U.S. lawmakers want SEC to ‘immediately’ approve Bitcoin ETFs

    us lawmakers sec immediately approve spot bitcoin etf
    • Members of the House Financial Services Committee wrote a letter to SEC today.
    • They argued that a Spot Bitcoin ETF is not much different from a Crypto Futures ETF.
    • Bitcoin is still trading around the $26,000 level only at writing on Wednesday.

    All eyes are on Bitcoin today after the U.S. lawmakers urged the Securities & Exchange Commission to “immediately” approve applications it has received for a Spot Bitcoin ETF.

    House Reps. wrote a letter to Gary Gensler today

    On Wednesday, four members of the House Financial Services Committee wrote a letter to Gary Gensler in which they argued that a Spot Bitcoin ETF is not particularly different from a Crypto Futures ETF that the regulator has already approved.

    And so, they urged Chair of the SEC in their letter to allow the likes of BlackRock, Fidelity and several others to list a Spot Bitcoin ETF.

    SEC’s current posture is untenable moving forward … there is no reason to continue to deny such applications under inconsistent and discriminatory standards.

    Chair Gary Gensler is scheduled to testify before the U.S. Congress today.

    Grayscale recently secured a victory against the SEC

    Last month, the U.S Court of Appeals for the DC Circuit ruled that the Securities & Exchange Commission did not have an adequate reason to not let Grayscale convert its flagship bitcoin trust into an exchange-traded fund (find out more).

    That ruling, as per the lawmakers, should be sufficient for Chair Gensler to get onboard with a Spot Bitcoin ETF. Their letter also read:

    A regulated spot bitcoin ETP would provide increased protection for investors by making access to bitcoin safer and more transparent.

    Members that wrote the letter on Wednesday include Reps. Mike Flood, Wiley Nickel, Tom Emmer, and Ritchie Torres. Bitcoin is still trading around the $26,000 level at writing.

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  • BREAKING: Bitcoin hits $28k after Grayscale win against SEC

    BREAKING: Bitcoin hits $28k after Grayscale win against SEC

    • Bitcoin price rose to highs of $28,142 on crypto exchange Bitstamp on Tuesday.
    • The gains came as the crypto market reacted to news of Grayscale’s win against the SEC.

    Bitcoin price saw a huge spike in volatility on Tuesday afternoon as prices across the crypto market rose. The world’s largest cryptocurrency by market cap jumped 7% to trade to highs of $28,142 at 1:05 pm ET, with the crypto market cap rising 6% to $1.15 trillion.

    Bitcoin price chart

    Elsewhere in the market, Ethereum traded to highs of $1,740, with its value up 5% in the past 24 hours. All the top 10 altcoins were in the green on the day at the time of writing, with BNB up 4%, XRP +3.8%, Cardano +4% and Dogecoin +6%.

    Why is Bitcoin and crypto surging?

    Bitcoin’s sharp price action to the new multi-week high came as the market reacted to news that Grayscale Investments had won in its lawsuit against the US Securities and Exchange Commission (SEC).

    As CoinJournal reported earlier today, the DC Circuit court ruled that the SEC had wrongfully denied Grayscale’s proposal to convert its Bitcoin Trust fund (GBTC) to a spot Bitcoin ETF.

    The court vacated the SEC’s order disapproving the application and granted the petition to have SEC review the proposal.

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  • Grayscale secures a big win against SEC in Bitcoin ETF case

    Grayscale secures a big win against SEC in Bitcoin ETF case

    grayscale win against sec in bitcoin etf case
    • U.S. court rules in favour of Grayscale in its lawsuit against SEC.
    • Today’s ruling paves the way for the first U.S. Bitcoin ETF.
    • Bitcoin and Ethereum jumped over 5.0% following the news.

    The U.S. Court of Appeals for the DC Circuit just ruled in favour of Grayscale in its long-running lawsuit against the Securities & Exchange Commission.

    First U.S. Bitcoin ETF is now expected soon

    SEC had blocked the asset manager’s effort to convert its flagship Grayscale Bitcoin Trust to an exchange-traded fund last year.

    But the ruling this morning paves the way for a Bitcoin ETF not just for Grayscale but also for others that have applied for one, including BlackRock and Fidelity. A Grayscale spokeswoman said today:

    [Ruling] is a monumental step forward for investors, Bitcoin ecosystem, and those who have been advocating for Bitcoin exposure through added protections of ETF wrapper.

    Bitcoin as well as Ethereum jumped more than 5.0% following the announcement on Tuesday.

    Why does a Bitcoin ETF attract all the hype?

    Note that a Spot Bitcoin ETF is a big deal as several experts are convinced that it would help boost institutional interest in the cryptocurrency and potentially unlock its next leg up.

    Shares of Coinbase Global – the listed custodian partner in a bunch of applications for such an exchange-traded fund are also up nearly 15% at writing. According to Dave Weisberger – the Chie Executive of CoinRoutes:

    It virtually guarantees they will approve BlackRock and Fidelity. Grayscale may need to refile, but they will almost certainty be approved as well.

    The Grayscale Bitcoin Trust currently manages assets worth about $16 billion. The aforementioned lawsuit against the U.S. Securities & Exchange Commission started in June of 2022.

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  • Cathie Wood SEC may approve more than one Bitcoin ETF at once

    Cathie Wood SEC may approve more than one Bitcoin ETF at once

    cathie wood sec approve more bitcoin etf
    • SEC has to rule on ARK’s application for a Bitcoin ETF by August 13th.
    • Cathie Wood expects the financial regulator to extend that deadline.
    • A summary of what else she said in an interview with Bloomberg today.

    The U.S. SEC will likely delay ruling on application for a Spot Bitcoin ETF that Ark Invest registered on May 15th, says Cathie Wood.

    Highlights from Wood’s interview with Bloomberg

    Current deadline for the financial regulator to announce its decision on the said filing is August 13th. But the famed investor anticipates that the Securities and Exchange Commission will extend that deadline.

    Speaking with Bloomberg this morning, the Founder and Chief Executive of Ark Invest also alluded to the possibility that the U.S. SEC may approve a bunch of Bitcoin ETFs at once.

    I think SEC, if it’s going to approve a Bitcoin ETF, will approve more than one at once. Most of these will be same, and it’ll come down to marketing and communicating the message.

    Other than her investment management firm, eight others, including BlackRock Inc, have so far filed for such an exchange-traded fund.

    Wood is significantly invested in Grayscale Bitcoin Trust

    A Bitcoin ETF has been the front and centre of all crypto-related debates in recent months.

    In fact, the possibility of one that may make it more convenient to gain exposure to BTC has largely contributed to the 80% year-to-date rally in Bitcoin. Wood also said on Monday:

    We’ve been putting out our Bitcoin monthly for the last year. We’re now starting a Bitcoin brainstorming session. We’re trying to get the word out there that our research is deep.

    Note that the third largest holding in her Ark Next Generation Internet ETF at writing is Grayscale Bitcoin Trust. Wood refrained from commenting, though, on what she plans on doing with her investment in GBTC if a Spot Bitcoin ETF gets a nod from the financial regulator.

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  • United States SEC officially accepts Valkyrie Spot Bitcoin ETF application

    United States SEC officially accepts Valkyrie Spot Bitcoin ETF application

    • The US SEC has been receiving Bitcoin ETF resubmissions after it rejected previous applications for inadequacy.
    • Valkyrie Bitcoin Fund was the last company to submit a Bitcoin ETF application to the SEC.
    • The SEC has accepted several other BTC ETFs after the respective companies amended and resubmitted.

    The US Securities and Exchange Commission (SEC) has officially accepted the Valkyrie Spot Bitcoin ETF application, marking a momentous step towards embracing BTC ETFs.

    Besides marking a turning point for the entire crypto industry, SEC’s move suggests a potential turning point for widespread crypto adoption in the biggest economy in the world. If approved, the Valkyrie Spot Bitcoin ETF will be the first of its kind, providing investors with exposure to Bitcoin without requiring them to hold any physical cryptocurrency.

    Crypto industry preparing for Bitcoin ETFs

    The SEC accepted Valkyrie’s amended BTC ETF application after rejecting previous Bitcoin ETF applications noting that they were inadequate. The public has 21 days to comment after the Federal Register notice is published after which the public input will be reviewed.

    Eric Balchunas, a senior ETF analyst at Bloomberg, immediately took to Twitter to spread the word after the US SEC approved Valkyrie’s application to register a spot Bitcoin ETF. Valkyrie was the very last company to apply for approval of spot Bitcoin ETFs in the flurry of companies that did. He added that the “BRRR” ticker was chosen by the Valkyrie Bitcoin ETF for its Nasdaq debut.

    Other Bitcoin ETF applications that have been accepted by the SEC include applications made by Fidelity Investments, WisdomTree, VanEck, Invesco, and ARK 21Shares. This clearly shows that the SEC is considering the applications.

    Approving the Bitcoin ETFs would be a major victory for the cryptocurrency industry in addition to the recent Ripple Labs win against the SEC.

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  • Anthony Pompliano expects SEC to approve a Spot Bitcoin ETF

    Anthony Pompliano expects SEC to approve a Spot Bitcoin ETF

    anthony pompliano sec approve spot bitcoin etf
    • Pompliano says underlying fundamentals of Bitcoin are strengthening.
    • He expects a Spot Bitcoin ETF to be a meaningful catalyst for BTC.
    • Bitcoin is currently up a whopping 85% versus the start of the year.

    Anthony Pompliano agrees that Bitcoin could see friction in the near term but remains bullish on the digital asset for the long term.

    Pompliano shares his view on Bitcoin

    The Founder of Pomp Investments is constructive because the underlying fundamentals related to the world’s largest cryptocurrency by market cap are improving.

    Bitcoin is anti-fragile. We see hash rate hitting all-time highs. We see adoption hitting all-time highs. People are realizing its value and they’re putting all sorts of capital into the network.

    The total supply of Bitcoin is slated to halve in April of 2024 which has historically served as a catalyst for its price.

    At writing, BTC is already up about 85% versus the start of the year.

    Is a Spot Bitcoin ETF coming soon?

    Pompliano is also convinced that the U.S. SEC will eventually approve a Spot Bitcoin ETF which will likely be another tailwind for the cryptocurrency.

    His comments follow a recent wave of applications for such an exchange-traded fund that the regulator has already dubbed inadequate. Still, Pompliano said today on CNBC’s “Squawk Box”:

    It’s a small detail that is more of a formality. We’re watching Wall Street saying we want access to BTC. So, when it [spot bitcoin ETF] happens, a lot of people will pour capital into it.

    He’s confident in particular because among notable names that have recently filed for a Spot Bitcoin ETF is BlackRock that has a history of going for an exchange-traded fund only when it’s convinced it will get approval.

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  • Bitcoin soars as SEC allows first leveraged Bitcoin Futures ETF

    Bitcoin soars as SEC allows first leveraged Bitcoin Futures ETF

    • Bitcoin rose to above $31,450 on Friday, its highest level since June 2022.
    • BTC price spiked to the year-high level after the SEC allowed the Volatility Shares 2x Bitcoin Strategy ETF, or BITX.
    • This is the first leveraged Bitcoin Futures ETF in the US and comes after this week’s BlackRock-fueled bullish sentiment for the crypto market.

    Bitcoin smashed past the $31,000 level on Friday afternoon as the market reacted to the latest news about the US market’s first leveraged Futures Bitcoin exchange traded fund (ETF).

    The upside pushed BTC price to highs of $31,458 on crypto exchange Bitstamp, with the flagship cryptocurrency’s price setting a new year-to-date high and its highest level since June 2022. BTC traded at $31,170 at the time of writing, about 4% higher in the past 24 hours but an impressive 87% up YTD.

    SEC approves first leveraged Futures Bitcoin ETF

    On Friday, June 23, the US market entered a new chapter in crypto investing when the first leveraged Bitcoin Futures ETF became effective. The Volatility Shares 2x Bitcoin Strategy ETF, or BITX, will begin trading on Tuesday 27 June and will allow its investors an exposure to Bitcoin with daily returns.

    Instead of investing directly in Bitcoin, BITX will “seek to benefit from increases in the price of Bitcoin Futures Contracts,” per details of the Fund in the prospectus filed with the SEC. The 2x Bitcoin Strategy ETF will align with the CME Bitcoin Futures Daily Roll Index.

    Bitcoin has led the market higher over the past week or so, riding on the bullish sentiment triggered by $9 trillion asset manager BlackRock’s filing for a spot Bitcoin ETF. BlackRock has a very high rate of success with ETF applications, the reason for the market’s optimism. 

    Analytics platform IntoTheBlock pointed out what a spot ETF would mean for Bitcoin adoption and price.

    Indeed, the asset manager’s filing paved way for a frenzy of spot ETF applications from several other Wall Street giants and global financial institutions. With BTC price in bullish momentum, its likely the market could see many more mega moves by smart money.

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