Category Archives: Bitcoin
Bitcoin spot ETF approval could be a ‘sell the news’ event: CryptoQuant – The Block – Crypto News
According to a recent report by CryptoQuant, the potential approval of a spot Bitcoin ETF could become a "sell the news" event.
To support this assertion, CryptoQuant analysts pointed to data that showed bitcoin market participants are currently sitting on high unrealized profits after the digital asset's rally above the $40,000 mark. "Short-term bitcoin holders are experiencing high unrealized profit margins of 30%, which historically has preceded price corrections," the report said.
CryptoQuant analysts added that bitcoin miners are also experiencing high unrealized profits, which could also contribute to BTC sell pressure. "We are seeing increasing miner selling in the last few weeks as prices remain above $40,000," the report added.
Bitcoin price correction is usually preceded by an increase in the BTC price and in miner transaction fees.
According to the analysts, during corrections in bull markets, the price of bitcoin tends to retrace to the short-term-holder realized price. Considering this, the report added that in a "sell the news" scenario the bitcoin price could decline, potentially reaching as low as $32,000.
Bloomberg Intelligence analysts are assigning 90% odds of a spot bitcoin ETF approval by the U.S. Securities Exchange Commission in the first quarter of 2024.
Year-to-date gains for bitcoin are currently above 155%, with the digital asset's rise being mostly fueled by optimism that the SEC is getting ready to approve one or more of the spot bitcoin ETF applications that have been filed with the regulatory body. More than a dozen firms including BlackRock, WisdomTree, and Valkyrie are waiting for the green light from the SEC.
The world's largest digital asset by market capitalization is now changing hands for $43,119 at 6:50 a.m. ET, according to The Block's Prices Page.
Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.
2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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Bitcoin spot ETF approval could be a 'sell the news' event: CryptoQuant - The Block - Crypto News
ARK Invest kicks off Bitcoin ETF ‘amendment-athon’ ahead of deadline – Cointelegraph
ARK Invest has become the first to file its final Form S-1 amendment for its proposed spot Bitcoin (BTC) exchange-traded fund (ETF) ahead of a reported United States Securities and Exchange Commission (SEC)-imposed deadline understood as a requirement to be considered in the first wave of decisions in January 2024.
According to an earlier report, officials from the SEC met with representatives of at least seven firms on Dec. 21, setting a deadline for applicants to file their final S-1 amendments by Dec. 29.
Regulators reportedly told attendees at the meetings that any issuer that doesnt meet the deadline will not be part of a first wave of potential spot Bitcoin ETF approvals in early January.
According to an SEC filing, ARK Invest filed an amendment to the S-1 registration statement for its Ark 21Shares Bitcoin ETF late on Dec. 28.
Bloomberg ETF analyst Eric Balchunas said that the amendment was centered around authorized participants.
On Dec. 19, Arkrevised its application with a change to cash creations and redemptions for shares in the fund.This was in line with other issuers who had to bend the knee to cash creations.
Fellow Bloomberg ETF analyst James Seyffart saidearlier that he was surprised not to have seen any amended Bitcoin ETF filings yet. Balchunas commented that others may wait until the last minute because they dont want to show their competitors the amendments.
More than a dozen firms are vying for an approved spot Bitcoin ETF, with more amended S-1 filings expected to be submitted in the coming 24 hours.
Related: Bitcoin ETF issuers push 3 crypto ads in 48 hours
Remarking on the flurry of activity leading up to the anticipated launch of spot Bitcoin ETFs in January, ETF Store president Nate Geraci said:
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ARK Invest kicks off Bitcoin ETF 'amendment-athon' ahead of deadline - Cointelegraph
Stars are aligned for bitcoin in 2024: A supply cut and potential ETF demand could lead to record highs – CNBC
If you've been following bitcoin's developments over the past few months, it might seem like a given that the cryptocurrency is "set to moon" in 2024. First of all, it is widely believed that the U.S. Securities and Exchange Commission will let a spot bitcoin exchange-traded fund, or several, launch in the U.S. as soon as January . Then, the Bitcoin halving is expected to take place in the spring, and that event historically has marked the beginning of a bull run and new cycle in bitcoin. Plus, Fed officials are anticipating at least three interest rate cuts in 2024 after almost two years of hikes that have hurt the cryptocurrency. Indeed, most investors and analysts agree the setup for next year is very positive perhaps overwhelmingly so with bitcoin on track to end 2023 up 150% with some even anticipating an all-time high. "Bitcoin's prior all-time high was [about] $69,000. We don't think that bitcoin will just breach that and then settle down. We expect some price discovery following the breakthrough and think at least 15% higher is within reach" in 2024, Ryan Rasmussen, an analyst at Bitwise Asset Management, told CNBC. "There will be an influx of demand following the launch of a spot bitcoin ETF and new supply will begin to fall in April or May," he added. "Plus, if the Fed cuts interest rates at all, that's another significant tailwind that's just icing on the cake." On Tuesday, Ark Invest's Cathie Wood told CNBC's "Crypto World" she also thinks the "institutional push into bitcoin will be quite significant to the price" and that "in our price expectations going forward, the biggest contributor is institutions." It might not be as easy as that. Already, some on Wall Street are concerned those kinds of expectations for institutions are overinflated and that a bitcoin ETF alone may not convert "nocoiners " (crypto slang for a person who has never bought any crypto before) into buyers. Separately, even if the SEC does approve an ETF, the industry is unlikely to get true regulatory clarity in the form of legislation, which could pressure markets . Nevertheless, between the potential increase in demand and the decrease in new supply (the halving that takes place when the reward for mining bitcoin is cut in half, as designed in the Bitcoin code, to reduce the supply of the cryptocurrency), bitcoin is set up for its next bull run. "People are going to potentially be surprised at how quickly [bitcoin] can rise to the extent that things line up properly," said Chase White, senior research and policy analyst at Compass Point. Tightening supply Bitcoin doesn't have cash flow like stocks, but it has a maximum supply of 21 million and that supply is already tight, with about 19.5 million now in circulation . "Supply is very tight. You've got a huge portion of long-term holders controlling bitcoin, over 40% of the coins on the network have not moved in over three years and over 75% at this point haven't moved in over a year, which is why you've seen such quick increases in price," White said. The supply cap was included in the Bitcoin code to create a scarcity effect on the coin's price. In the near-term, however, it could mean the halving that has historically kicked off a new bull run is less of a force on the market, Jurrien Timmer, Fidelity's director of global macro, said in an interview. "The more mature the asset becomes, the less impact the halvings will have because the number of coins that are being produced are so much less than they were, let's say, five years ago, and the number of coins that have already been mined are so much more," he explained. "The days of the halvings having this huge impact are behind us." Still, 2024 could be the year bitcoin's intended supply and demand dynamics take the stage. Even at the risk of a softer rally following the event, its supply curve is what makes it one of the most unique assets in history and invites comparisons to gold, according to Timmer. "The supply becomes more asymptotic as time goes on," he said, meaning it approaches its limit but never quite reaches it. "We're getting closer and closer to that 21 million coin mark. But it's going to take many years for that last few 100,000 coins to be minted." "When you combine [the] asymptotic supply curve and the exponential demand curve, there really is no other asset on the planet that has those two features at the same time," he added. "It's been around since 2008, it has had everything you can think of thrown at it in terms of existential challenges and resistors, then three crypto winters and it's still standing." CNBC's Ganesh Rao contributed reporting.
Spot bitcoin ETF approval may be coming in January, experts say. Here’s what it means for investors – CNBC
The price of bitcoin has surged in 2023 as investors await approval for the first U.S. spot bitcoin exchange-traded fund, which would be a milestone for cryptocurrency investors, experts say.
In early December, the digital currency topped $44,000 for the first time since April 2022, and year-to-date gains were above 160%, as of Dec. 21, mostly fueled by optimism for a spot bitcoin ETF.
Meanwhile, discussions between the Securities and Exchange Commission and asset managers hoping to list bitcoin ETFs have advanced to technical details, signaling to some experts that an approval could be imminent.
More than a dozen firms including BlackRock, WisdomTree, Valkyrie and others are waiting for the green light from the SEC, which could come in early January.
Here's a look at other stories offering insight on ETFs for investors.
"For ETF investors, this would be the best product on the market," said Bryan Armour, director of passive strategies research for North America at Morningstar. "All the other options right now have flaws to varying degrees."
Currently, U.S. investors can buybitcoin futures ETFs, which own bitcoin futures contracts, or agreements to buy or sell the asset later for an agreed-upon price. The long-awaited bitcoin spot ETF would invest in the digital asset directly.
If the SEC signs off on a spot bitcoin ETF, Armour anticipates a "batch approval," with multiple ETF listings on the same day. "I would expect them to rule on spot ETFs holistically because most issuers are taking similar approaches" with applications, he said.
"There are a lot of good signs that the SEC is taking the most recent batch of filings more seriously," Armour said. "I'm more optimistic about a bitcoin ETF than ever before."
Some crypto investors expect a bitcoin rally upon approval, but it's also possible the price will dip as investors sell to collect profits, Armour said.
While SEC approval of a spot bitcoin ETF may make the asset class more accessible to the masses, experts urge investors to consider their risk tolerance and goals before piling in.
"I think it depends on the investor," said certified financial planner Ben Smith, founder of Cove Financial Planning in Milwaukee. If you're a more aggressive investor with an appetite for higher risk, a spot bitcoin ETF could fit into a diversified portfolio, he said.
Still, experts often suggest limiting cryptocurrency exposure, such as 1% to 5% of your allocation, to minimize downside exposure. "It still remains an extremely volatile and speculative asset," Armour added.
Some 72% of financial advisors said they would be more likely to invest in crypto if spot ETFs were approved in the U.S., according to a 2022 Nasdaq survey of 500 advisors.
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Spot bitcoin ETF approval may be coming in January, experts say. Here's what it means for investors - CNBC
VanEck files updated spot Bitcoin ETF application – crypto.news
The asset manager submitted an amended S-1 Form with the SEC on deadline day, switching to cash-only subscriptions like most issuers seeking spot Bitcoin ETF approval.
VanEcks update did not name the authorized participants for its VanEck Bitcoin Trust, an exchange-traded fund aiming to invest in the largest cryptocurrency by market cap at its spot price.
Several other issuers like BlackRock have filed amended prospectus briefs to the cash-only edict stressed by the U.S. Securities and Exchange Commission (SEC). However, these updates have not disclosed APs who are effectively underwriters for these spot Bitcoin ETFs.
Underwriters guarantee payment and redemptions in the case of financial losses. These APs are typically banks, insurance companies, or investment houses. Should the SEC approve such products, spot Bitcoin ETF issuers like VanEck must disclose their APs before launch.
Before launch, every issuer will have to submit an effective prospectus. Essentially meaning they can go live. Its in there that an AP/underwriter would theoretically have to be named along with fees and other details.
On Dec. 29, VanECK also released a promotional video on X for spot BTC ETF ahead of expected approval in early January. Hashdex, another asset manager biting for the same crypto fund, also posted marketing content and filed a new S-1 as firms seemingly amp up readiness.
Issuers and custodians have also experienced leadership shifts to position themselves for what Michael Saylor, MicroStrategy CEO, says would be the biggest development on Wall Street in over three decades.
Grayscale poached Invescos head of ETF business while Aaron Schnarch replaced Coinbase Custody CEO Rick Schonberg. Coinbase Custody is notably named as the custodial partner for several spot BTC ETFs, including BlackRock, Valkyrie, Invesco, and ARK 21Shares.
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VanEck files updated spot Bitcoin ETF application - crypto.news
Heres When Bitcoin Could Start To Really Take Off, According to Crypto Investor Nic Carter – The Daily Hodl
Castle Island Ventures founding partner and Coin Metrics co-founderNic Carter is predicting when Bitcoin (BTC) could start soaring again.
In a new Bloomberg Television interview, Carter says he believes Bitcoin will take off in price months after the possible approval of spot Bitcoin exchange-traded funds (ETF) in the US.
Well, of course, theres tax selling potentially to end the year here, and weve seen the market give up some of those gains in recent days. But just fundamentally its about expectations versus catalysts.
And the market at this point thoroughly expects the ETF, and I think the big rally weve seen from the $20,000s, low $30,000s into the mid $40,000s for Bitcoin, I think thats almost entirely ETF based. And so on day of [the potential BTC ETF approval], there might be a bit of a pop, but I think the effect might be muted.
Where I expect to see the price developing, in the medium term thats where Im excited. Thats when I think you see RIAs (registered investment advisors) and other kinds of financial entities that previously werent able to necessarily recommend Bitcoin to their clients get the ability to do that with the ETFs.
I think well see a marketing rampage from the big ETF sponsor, some of the largest financial institutions in the world, and thats when I think this thing really takes off as we enter and throughout 2024.
Carter also says he expects approval of spot BTC ETFs on January 8th, and he believes the ETFs will have a much greater impact on Bitcoins value than the April 2024 Bitcoin halving event, when miners rewards are cut in half, reducing the new supply of BTC.
The market is almost certain at this point that we will be getting an ETF in the coming days. Most analysts think its likely to come before January 10th. I think its likely to come on the eighth. So the near-term price certainly reflects that expectation. So we may even see a new selling event here.
However, over the medium term, the ETF unlocks whole new classes of capital that otherwise wouldnt be able to enter the market, and that havent been able to allocate to Bitcoin. So I think you will see structural flows that will be positive for Bitcoin.
The halving Im probably less constructive on. I think it makes a very marginal difference. Youre only seeing a small effect on supply in terms of marginal supply creation. So the halving is I would say less of an exciting development.
Bitcoin is trading for $42,559 at time of writing, down nearly 2% in the last 24 hours.
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Heres When Bitcoin Could Start To Really Take Off, According to Crypto Investor Nic Carter - The Daily Hodl
Chairman Leaves Grayscale Bitcoin Trusts Sponsor as Investors Await Call on ETF – Barron’s
Just as cryptocurrency fans are expecting the first regulatory approvals of exchange-traded funds that hold Bitcoins, the sponsor of the Grayscale Bitcoin Trust said that its chairman will resign.
Barry Silbert will step down Jan. 1 from the board that he chaired at Grayscale Investments LLC. Also resigning from the board is Mark Murphy, the chief operating officer of Digital Currency Group, the blockchain enterprise that Silbert founded and leads.
The announcement said that their places on the Trusts board will be taken by other executives from the Digital Currency Group. Chief Financial Officer Mark Shifke will become chairman. Matt Kummell, vice president of operations, will join the board, as will Grayscale Investments financial chief Edward McGee.
It wasnt clear whether the board changes are related to the Grayscale trusts effort to win the U.S. Securities and Exchange Commissions approval to convert to an ETF that buys crypto tokens on the spot market. After a federal appeals court overturned the SECs rejection of that plan, the agency decided not to appeal the courts ruling. Investors have bid up the price of tokens such as Bitcoin this year, in the expectation that the SEC will approve ETF applications from Grayscale and rivals such as BlackRock .
Barrons called Grayscale Investments about Silberts resignation, but got no immediate answer.
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Despite the board shuffling, the executives remain unchanged at the trusts sponsor Grayscale investments. Michael Sonnenshein continues as its chief executive. He has been making changes in the fee structure of the trust, in anticipation of an ETF conversion.
As long as their executive management is staying, it doesnt bother me, said Michael Legg, an analyst at Benchmark who follows several crypto stocks, but not Grayscale. He is optimistic that SEC approval of spot ETFs will benefit Bitcoin miners such as CleanSpark.
Silberts leaving the board may reduce distractions for everyone. His Digital Currency Group has been defending litigation filed against its crypto ventures. In January, the SEC sued its Genesis Global Capital exchange, alleging that it sold unregistered securities. Genesis has filed a motion to dismiss the suit, but U.S. District Court judge Edgardo Ramos of the Southern District of New York is allowing discovery to continue while he decides on the motion.
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Write to Bill Alpert at william.alpert@barrons.com
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Chairman Leaves Grayscale Bitcoin Trusts Sponsor as Investors Await Call on ETF - Barron's
Funds Cash In Ahead of Spot Bitcoin ETF Approval. Will BTC Pull Back? – DailyCoin
As the crypto market holds its breath, waiting for the SECs approval of Bitcoin ETFs early next year, the worlds largest asset managers cash in through their existing blockchain and crypto-related exchange-traded funds (ETFs).
Yet the manner and timing in which they take profits send confusing signals to the crypto community about the volatility of Bitcoins price.
The close of 2023 was relatively successful for the cryptocurrency market, whose capitalization more than doubled, and for the largest ETFs focused around it. All of their annual return rates have risen by double digits at least.
Cathie Woods ARK Next Generation Internet ETF (ARKW), famous for its active investments in disruptive innovation companies, made a 67.5% return this year, recovering after a 67% dive in 2022.
BlackRocks Blockchain and Tech ETF surpassed the 69% total return rate at the end of November. ETFs managed by Fidelity and Bitwise witnessed a similar growth rate, while VanEcks Digital Transformation ETF calculated even higher 98.25% annual returns.
One of the key reasons behind such growth was an incredible rally of crypto-related stocks. Shares of Coinbase, Grayscale Bitcoin Trust, MicroStrategy, and Marathon Digital soared over 300%, outperforming Bitcoins 150% growth. Consequently, investment funds that track price indexes of crypto-related companies bounced back after a brutal 2022.
In such an optimistic crypto market landscape, crypto-related ETFs reshuffle their portfolios and make moves that send mixed signals to retail investors.
Ark Invest, an asset manager behind one of the worlds most actively traded and closely followed crypto ETFs, made the most turbulence recently after heavily offloading Coinbase Global (COIN) and Grayscale Bitcoin Trust (GBTC) shares.
The Florida-based fund sold roughly over $270 million worth of Coinbase shares in December and more than 588,000 shares since June, when Cathie Woods fund changed the direction and decreased Coinbases weight on its portfolio regularly.
Despite the selloff, Coinbase shares still make up the majority (11.78%) of the ARKW Funds portfolio, ahead of Block Inc (8.57%) and Robinhood Markets Inc (4.86%). ARK Next Generation Internet ETF increased COIN shares in its portfolio by more than 7.2% since the end of 2022, managing over 1.153 million shares worth over $279 million.
Although Wood explained the sale of Coinbase shares as a portfolio rebalancing, the ETF likely cashed in by selling a part of its Coinbase shares, which have more than quadrupled in value since the beginning of the year.
A similar explanation could be addressed to ARK Invests total liquidation of its Grayscale Bitcoin Trust (GBTC) holdings.
The latter saw a massive, almost $2.5 billion, inflow earlier this year when numerous funds bought GBTC shares at a discount in anticipation of the Grayscales Trust transition to a Bitcoin ETF.
Ark Invest isnt the only asset manager where Coinbase holds significant sway. Fidelity, a major player in the United States, saw a 5.14% uptick in its Coinbase portfolio within the Crypto Industry and Digital Payments ETF (FDIG) this year.
Coinbase Global shares take the lead in the funds portfolio, making the largest portion at 21.6% and surpassing those of crypto mining giants Marathon Digital (9.25%) and Riot Platforms (8.93%).
Marathon Digital (MARA) was also on the radar of BlackRock, one of the worlds largest investment management firms.
In December alone, BlackRocks iShares Blockchain and Tech ETF (IBLC) boosted its MARA holdings by 6.48%, now constituting the largest share in the portfolio at 17.42%. Since the years start, BlackRock has significantly increased its MARA holdings by 9.86%.
The VanEck Digital Transformation ETF (DAPP) also turned its attention to Bitcoin miners, making Marathon Digital (8.44%) a key asset in its investment portfolio.
The fund, tracking 22 stocks related to crypto and blockchain and generating one of the highest returns this year, made MARA their priority asset after selling 4.01% of its Coinbase shares.
Bitwise Crypto Industry Innovators ETF (BITQ), which tracks a stock price index of crypto-related companies and manages a 29-asset portfolio worth $167.4 million, shows similar tendencies: Mara holding goes up (14.72%), while Coinbase Global declines (8.99).
Despite major asset managers expressing confidence in crypto mining companies, their Coinbase and Grayscale Bitcoin Trust share selloffs send mixed signals to the broader crypto community.
Almost all major asset managers, like Ark Invest, BlackRock, Bitwise, Fidelity, VanEck, Valkyrie, Galaxy, and others, have submitted their own applications for spot Bitcoin ETFs with the US Securities and Exchange Commission (SEC).
With SEC decisions expected to be announced within the first quarter of 2024, the crypto market worries that ETF approvals would be sell the news events that pull Bitcoins price down, at least for the short term.
On the other hand, the crypto community fears that the approval of Grayscale Bitcoin Trust to transform into a spot Bitcoin ETF could result in significant outflows from the crypto market, consequently pushing Bitcoins price down further.
GBTC manages assets exceeding $26 billion and has applied for its Grayscale Bitcoin Trust to be converted into an ETF.
Crypto market participants are concerned investors of over $2.5 billion in discounted GBTC may take profits ahead of the anticipated SEC ETF approval.
Not to mention that the insolvent crypto exchange FTX owns a sizable holding of around $417 million of Grayscales Bitcoin Trust, and its current management plans to return funds to creditors in fiat currency rather than in digital assets.
Finally, the nuances of asset managers inner policies raise additional concerns ahead of their expected sport ETF approvals.
Earlier this month, BlackRock, the worlds biggest investment firm with $9 trillion in assets under management, agreed with the SECs key condition and preferred method of fiat currency redemptions for its spot Bitcoin ETF.
This means that the new share of the ETF will be only created by using fiat currencies and not Bitcoin or any other digital currency. According to the SEC, such a mechanism guarantees that only the ETF issuers will be handling BTC and not an intermediary.
Cash creates are worse for taxes because cash changes hands, says ETF analyst Eric Balcunas. Trading without using fiat involves a trade and no cash exchanges. If the SEC only allows cash trades, it eliminates tax efficiency, a significant advantage of ETFs.
The SEC is anticipated to announce its decision on a spot Bitcoin ETF by January 10, 2024. However, it would initially apply only to Ark Invests ETF if approved.
A broader set of decisions for spot Bitcoin ETFs from BlackRock, Bitwise, Fidelity, VanEck, Galaxy, and Valkyrie is scheduled for no earlier than March 14, 2024.
The timeline practically coincides with the Bitcoin halving event at the end of April, which cuts BTC supply by half and eventually pushes the assets price to new highs.
We may expect increased volatility due to macroeconomic slowdown and global recession concerns. Yet, VanEck fund analytics predict that the Bitcoin price is unlikely to drop below $30k in Q1 2024.
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Funds Cash In Ahead of Spot Bitcoin ETF Approval. Will BTC Pull Back? - DailyCoin
Analyst Says Bitcoin Run Just Starting, May Extend Till 2025 – The Crypto Basic
Despite Bitcoins already eye-catching returns this year, prominent analyst Ali Martinez believes the cryptocurrency is still in the early phase of a bull market.
Bitcoin is having a year to remember. The leading cryptocurrency has gained 158% in the past 12 months, and aims to end the year on a high off the back of anticipation of the launch of a spot Bitcoin ETF in the U.S.
Nevertheless, the best may still be in store for Bitcoin, according to crypto analyst Ali. A recent chart shared by the analyst highlights Bitcoins historic four-year cycle.
However, it goes one step further to present an overview of price action at different stages of the cycle.
Each cycle typically includes a Bitcoin halving, with one due in April 2024. It also culminates in a new all-time high for BTC, with the most recent $69,000 coming in November 2021.
Per the latest analysis, Bitcoin is only in the first year of what typically translates to three years of bullish trends. The foregoing suggests that the cryptocurrencys price may still rally for the next two years before eventually topping around December 2025.
The rally would usually culminate in a year-long bearish trend, as recorded in 2018 and 2022. If history repeats itself, then Bitcoins next bear market may begin in late 2025 and last into 2026, according to the analysis.
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Although Bitcoin has historically had four-year price cycles, a changing investment landscape challenges the norm. The potential launch of a spot Bitcoin ETF in the U.S. could open up the way to the institutionalization of BTC.
With household names such as BlackRock and Fidelity poised to embark on massive marketing for traditional financial clients seeking Bitcoin exposure, the assets price could deviate from its regular pattern. Only time will tell if such an outcome plays out.
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Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basics opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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Analyst Says Bitcoin Run Just Starting, May Extend Till 2025 - The Crypto Basic
Coinbase appoints new head of custody amid Bitcoin ETF preparations – crypto.news
Coinbase has changed its head of custody, potentially as a strategic decision for handling services related to spot Bitcoin ETFs.
The departure of Aaron Schnarch, the former Chief Executive Officer of Coinbase Custody, marks a pivotal shift in the companys leadership. Schnarchs position has been filled by Rick Schonberg, who joined Coinbase in 2021 and brings experience from previous stints at Goldman Sachs, State Street, and Tagomi.
Breaking: After @Grayscale shuffles their team before the ETF approvals, @Coinbase follows suit with Rick Schonberg replacing Aaron Schnarch at Coinbase Custody.
Aaron Schnarch, chief executive officer of Coinbase Custody, left in recent weeks, a spokesperson confirmed. He was pic.twitter.com/rUajrSXK6f
Coinbases custody division is recognized as a preferred choice for Bitcoin ETF applicants. This includes major financial players such as BlackRock, Franklin Templeton, and Grayscale Investments. The importance of custody services is heightened in the context of Bitcoin ETFs, where the security and management of tokens are critical for investor confidence and operational efficiency.
This leadership transition comes at a crucial time for the cryptocurrency industry. The race to secure the first U.S. regulatory approval for an ETF investing directly in Bitcoin has intensified. The SEC is expected to rule by Jan. 10 on an application for a spot Bitcoin ETF submitted by ARK Investment Management, headed by Cathie Wood, and 21Shares. The outcome of this decision may set a precedent for similar applications in the pipeline.
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Coinbase appoints new head of custody amid Bitcoin ETF preparations - crypto.news