Countdown Begins for SEC Decision on First Bitcoin ETF
The United States Securities and Exchange Commission (SEC) is nearing its final deadline to approve the first spot Bitcoin exchange-traded fund (ETF) in the country. Market participants are eagerly awaiting a decision, which is expected in early January 2024. Companies seeking approval have been meeting with SEC officials to discuss their proposals and make adjustments as requested, indicating a potential green light. If approved, Bitcoin will be traded on major Wall Street exchanges, making it accessible to a wider range of investors. However, if denied, investment managers may appeal the ruling, prolonging the waiting period for US investors.
HashKey Exchange Enhances Liquidity with Market Makers
Hong Kong’s HashKey Exchange will soon allow individual and enterprise market makers to provide liquidity on the platform. To qualify as market makers, users and firms must trade at least $5 million of cryptocurrencies per month on the exchange. Depending on their trading volume or monthly rankings, market makers will receive commission fees ranging from 0.005% to 0.015% of transaction value. Additionally, all market makers are exempt from paying commission fees on trades. HashKey has been expanding its services and recently introduced insurance coverage for users’ and enterprise assets stored in its digital wallets.
BlackRock Receives Seed Funds for Bitcoin ETF
BlackRock, the world’s largest asset manager, received $100,000 in seed funding from an undisclosed investor for its spot Bitcoin ETF in October 2023. According to BlackRock’s filing with the SEC, the investor purchased 4,000 shares for $100,000 at $25.00 per share and acted as a statutory underwriter for the Seed Creation Baskets. To pay the sponsor’s fee, BlackRock plans to borrow Bitcoin or cash as trade credit from a lender on a short-term basis. This strategy allows BlackRock to charge fees via a loan instead of selling BTC, minimizing its impact on the Bitcoin price.
Societe Generale Issues Green Bond on Ethereum
Societe Generale, the third-largest bank in France, issued its first digital green bond as a security token on the Ethereum blockchain. The bond, registered by Forge, a subsidiary of Societe Generale, has a value of 10 million euros and a maturity of three years. The proceeds from the bond will be used to finance or refinance products and companies classified under eligible green activities. The bond’s smart contract provides open access to data on its carbon footprint. Another innovation is the option for investors to settle securities on-chain using the EUR CoinVertible stablecoin issued by Forge.
US Crypto Firms Increase Lobbying Spending
In the first three quarters of 2023, US crypto and blockchain companies reportedly spent around $3 million more on lobbying compared to the same period in 2022. Data from Open Secrets reveals that these firms spent approximately $19 million on lobbying during January to September 2023, a 19% increase from the previous year. Coinbase led the spending with over $2 million, followed by Crypto.com, Blockchain Association, and Binance. Prior to its collapse in November 2022, FTX was one of the largest spenders in crypto space on campaign donations and marketing efforts.
Hot Take: SEC Decision on Bitcoin ETF Will Shape Market Trends
The upcoming decision by the SEC regarding the approval of the first spot Bitcoin ETF will have significant implications for the cryptocurrency market. If approved, it will mark a major milestone for Bitcoin, enabling it to be traded on Wall Street exchanges and attracting a broader audience of investors. This could lead to increased adoption and potentially drive up prices. However, if the ETF is denied, it will prolong the waiting period for US investors and may result in market volatility. The outcome of this decision will shape the direction of the crypto market in 2024 and beyond.
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