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US Spot Bitcoin ETF Options Approval May Lead to ‘Regulatory Headache’
Options on new spot Bitcoin exchange-traded funds (ETFs) may face a delay in gaining regulatory approval, which could dampen the appeal of these products. The US Securities and Exchanges Commission (SEC) typically approves ETF options soon after trading begins. However, since Bitcoin is considered a commodity, approval from the Commodity Futures Trading Commission (CFTC) may also be required. This raises questions about jurisdiction and oversight. It is estimated that it could take anywhere from 2 to 10 months for these approvals. The delay may discourage big investors from entering the market and prevent the introduction of innovative products.
Animoca Brands, Delphi Ventures, Amber Group, and Other Big Players Invest in Pixelmon
Pixelmon, a decentralized web3 gaming IP, has raised $8 million in seed funding to continue developing its portfolio of casual and mid-core games. The funding round saw participation from Animoca Brands, Delphi Ventures, Amber Group, Bing Ventures, Bitscale Capital, Cypher Capital, Foresight Ventures, Mechanism Capital, Sfermion, Spartan Labs, VistaLabs, and others. Founders, angels, KOLs, and ecosystem partners also participated. Pixelmon plans to release major games in its IP franchise and expand into merchandise, trading card games, animated series, comic books, and more.
BlackRock Ten-folded Bitcoin Mining Stocks: From $76M to $775M
BlackRock has been increasing its holdings in Bitcoin mining stocks in response to client demands for its spot Bitcoin ETF. The asset manager’s subsidiaries have increased their stakes in Marathon, Riot, and CleanSpark. Recent SEC filings show that BlackRock’s subsidiaries bought even more shares of these companies. This increase in positions has contributed to the price rally of Bitcoin mining stocks. As of December 31, BlackRock’s total holdings in these three mining companies amounted to $775 million, up from $76 million a year ago. This growth is attributed to equity dilution used to fund growth and capital expenditure.
Hot Take: US Spot Bitcoin ETF Options Approval Could Lead to ‘Regulatory Headache’
The approval process for options on new spot Bitcoin exchange-traded funds (ETFs) in the US could be lengthy and complex due to the need for dual regulatory engagement from the Securities and Exchanges Commission (SEC) and the Commodity Futures Trading Commission (CFTC). This could potentially create a regulatory headache, delaying the introduction of these products and raising questions about jurisdiction and oversight. The delay may discourage big investors from entering the market and prevent further innovation. However, if approved, these ETFs could attract significant investment and drive billions of dollars into the market.
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