Tag: Etf

WisdomTree to Liquidate Five ETFs by October 20, 2023

by Blockchain News

WisdomTree, Inc. (NYSE: WT), a prominent global financial entity, has declared its intention to close and liquidate five of its ETFs. The ETFs in question will cease accepting creation orders after October 20, 2023, marking the same day as their final trading day on their respective exchanges.

Shareholders who retain their ETF shares beyond this date will undergo an automatic cash redemption based on the ETF’s net asset value (NAV). This redemption is anticipated to be relayed to shareholders via their brokers or other financial intermediaries around October 30, 2023, subsequent to the last operational day slated for October 27, 2023.

The ETFs slated for closure and liquidation are:

  1. WisdomTree Chinese Yuan Strategy Fund** (CYB) – NYSE Arca

  2. WisdomTree India ex-State-Owned Enterprises Fund** (IXSE) – NYSE Arca

  3. WisdomTree U.S. Growth & Momentum Fund** (WGRO) – NASDAQ

  4. WisdomTree Germany Hedged Equity Fund** (DXGE) – NASDAQ

  5. WisdomTree Growth Leaders Fund** (PLAT) – NYSE Arca

Prospective investors are urged to meticulously evaluate the investment goals, risks, charges, and expenses of the Funds prior to investing. A comprehensive prospectus detailing this information can be accessed at WisdomTree.com/investments or by calling 866.909.9473.

It’s imperative to note that investing carries inherent risks, including potential principal loss. Foreign investments, in particular, are fraught with currency, political, and economic risks. Single-country, sector-focused funds or those emphasizing smaller company investments may witness heightened price volatility. The prospectus provides an exhaustive risk profile for each Fund.

WisdomTree’s offerings encompass a diverse range of exchange-traded products (ETPs), models, and blockchain-enabled solutions. With a current global assets under management tallying approximately $95.8 billion, the firm is at the forefront of financial innovation. Their recent endeavors include blockchain-native digital wallets like WisdomTree Prime™ and blockchain-enabled mutual funds.

Image source: Shutterstock

Source

Tagged : / / /

SEC’s XRP and Grayscale Bitcoin ETF Cases Challenged by US House Majority Whip Tom Emme

by Blockchain News

House Majority Whip Tom Emmer has once again taken to Twitter to challenge the U.S. Securities and Exchange Commission’s (SEC) approach to cryptocurrency regulation. Citing the SEC’s recent legal losses against Ripple and Grayscale, Emmer suggests that the regulatory body’s stance on crypto is misguided. His latest comments, dated September 3, 2023, have garnered significant attention, amplifying the ongoing debate on the appropriate level of crypto regulation.

Emmer’s Latest Remarks

In a tweet on September 3, 2023, Tom Emmer stated, 

SEC loses on Ripple… SEC loses on Grayscale… We will see how pending litigation plays out, but it should be increasingly obvious to policymakers that, despite @GaryGensler’s mass marketing campaign, crypto is not an industry ‘rife with noncompliance.’

Checks and Balances in Focus

Emmer’s critique resonate with previous tweet, emphasizing the role of checks and balances in holding the government accountable.

Our system of checks and balances holding the abusive Administrative State accountable,

he wrote, quoting a previous tweet that announced a DC Court of Appeals decision in favor of Grayscale on August 29, 2023.

A Consistent Critic

Emmer has been a consistent critic of the SEC’s regulatory approach to cryptocurrencies. As early as November 4, 2021, he sent a letter to SEC Chairman Gary Gensler, questioning the inconsistency in the agency’s treatment of Bitcoin futures ETFs and Bitcoin spot ETFs. “I’ve called out @GaryGensler’s regulatory hypocrisy for years,” Emmer noted in a tweet on August 30, 2023.

Implications for Policymakers

Emmer’s recent comments add another layer to the ongoing debate among U.S. policymakers about the future of cryptocurrency regulation. With the SEC facing legal setbacks, the question arises whether its current approach is effective or even appropriate, a point that Emmer’s latest tweet underscores.

Conclusion

As the SEC grapples with legal challenges and increased scrutiny, Tom Emmer’s tweets serve as a timely critique from a high-ranking government official. His comments suggest that the debate over the regulatory landscape for cryptocurrencies is far from over, and they call into question the SEC’s current strategy.

Image source: Shutterstock

Source

Tagged : / / / / / /

BlackRock’s Bitcoin Strategy: Mining Investments and ETF Proposals

by Blockchain News

The fact that BlackRock, the biggest asset management in the world, has been making substantial movements in the Bitcoin area recently demonstrates the firm’s optimism over the future of the cryptocurrency. This article dives into recent business endeavours undertaken by BlackRock, such as investing in Bitcoin mining businesses and putting out a proposal for a Bitcoin exchange-traded fund (ETF).

Investment Opportunities in Bitcoin Mining

BlackRock has achieved a key place for itself in the cryptocurrency mining industry. The massive investment firm is now the second-largest shareholder in four of the top five Bitcoin miners in terms of market value. To be more specific, as of the 30th of June, BlackRock Fund Advisors boosted their shares in these mining businesses. Notable investments were made in Riot Platforms Inc., Marathon Digital Holdings, Cipher Mining, and Terawulf.

Riot Platforms, Inc. (NASDAQ: RIOT) is a global leader in Bitcoin-centric infrastructure. The company is committed to making a positive impact through innovation and community partnerships. Riot specializes in Bitcoin mining and digital infrastructure, with vertically integrated operations that include data center hosting in central Texas and electrical engineering in Denver, Colorado. 

Marathon Digital Holdings is a digital asset technology firm with a focus on bolstering the Bitcoin ecosystem. The company is on track to become one of North America’s largest and most eco-friendly Bitcoin mining operations.

Cipher Mining is a U.S.-based industrial-scale Bitcoin mining firm committed to fortifying the Bitcoin network’s infrastructure. With a management team experienced in technology, fintech, and finance, the company aims to provide a robust foundation for Bitcoin’s future growth.

Terawulf is a U.S.-based Bitcoin mining firm dedicated to advancing a zero-carbon future. The company owns and operates integrated mining facilities in key U.S. locations, focusing on sustainable community benefits and attractive investor returns.

A proposal for a Bitcoin exchange-traded fund (ETF)

BlackRock’s newly unveiled Bitcoin exchange-traded fund (ETF) has captured significant attention. An ETF is an investment vehicle designed to mirror the behavior of a specific asset or group of assets. For Bitcoin, such an ETF would allow investors to follow the cryptocurrency’s price fluctuations without the necessity of holding it directly.

BlackRock’s position as the biggest asset manager in the world gives its application credence, despite the U.S. Securities and Exchange Commission’s (SEC) past reluctance to approve Bitcoin ETFs. Financial industry professionals are optimistic that BlackRock’s ETF proposal will be approved in the near future, including Galaxy Digital CEO Mike Novogratz.

The idea of a Bitcoin ETF is not new, but BlackRock’s latest proposal has reopened the debate over whether such an investment vehicle could ever operate.It is important to note that the SEC has in the past given its blessing to exchange-traded funds (ETFs) that follow cryptocurrency futures or corporations with indirect crypto exposure. On the other side, the intention of BlackRock’s proposition is to follow the spot price of bitcoin.

The final word

The increasing interest shown by financial institutions in bitcoin is highlighted by BlackRock’s recent forays into the space, which include investments in mining operations and suggestions for exchange-traded funds. BlackRock is making some aggressive efforts in this field, and although the future of Bitcoin is still unclear, these initiatives might possibly have an effect on the way cryptocurrency investments develop.

BlackRock’s endeavours serve as a testimony to Bitcoin’s expanding importance in the financial landscape and are being watched closely by the cryptocurrency sector as it awaits the SEC’s verdict on the proposed ETF. The effects that these projects will have on the bitcoin market as a whole won’t be known for some time.

Image source: Shutterstock

Source

Tagged : / / / /

领先的加密资产管理公司Bitwise宣布其加密行业创新者ETF资产管理规模突破1亿美元

by Blockchain News

全球领先的加密资产管理公司Bitwise Asset Management宣布，其加密行业创新产品ETF（纽约证券交易所代码：BITQ）最近的资产管理规模超过了1亿美元。这一里程碑出现在加密领域的转折点，整个2023年，这个领域都见证了积极的行业发展，强劲的市场表现，以及投资者兴趣的增长。 (Read More)

Source

Tagged : / / / / /

Bitwise ETF BITQ Surpasses $100M in Cypto Assets Under Management

by Blockchain News

Bitwise Asset Management, a leading crypto asset manager, has announced that its Crypto Industry Innovators ETF (NYSE: BITQ) recently surpassed $100 million in assets under management. This milestone comes amid a turning point for the crypto sector, which has seen positive industry developments, strong market performance, and growing investor interest throughout 2023.

As of June 30, bitcoin had risen more than 83% year-to-date, while BITQ was up more than 135% over the same period. Since the fund’s inception in 2021, investors have utilized BITQ for its potential impact on portfolio diversification and as a way to access an emerging growth sector through a traditional equity ETF vehicle.

The BITQ ETF seeks to track an index designed by Bitwise that consists of leading companies driving the fast-growing crypto economy. At each rebalancing, at least 85% of BITQ’s holdings are “pure-play” firms, which derive more than three-quarters of their revenue from crypto-related businesses, while up to 15% of holdings are reserved for more diversified companies making meaningful investments in the space.

Bitwise has also been in the news recently for its refiling of a spot Bitcoin ETF application with the SEC, which was officially acknowledged by the regulatory body. Bitwise first filed for a spot Bitcoin ETF in October 2021, but amended and refiled their application on June 28 of this year. This move followed a host of institutional applications, fueled by BlackRock’s June 15 spot Bitcoin ETF application.

Bitwise’s Chief Investment Officer, Matthew Hougan, emphasized the importance of BlackRock’s move, stating, “You have to listen when Blackrock comes to the market, because they’re the largest ETF issuer in the world, they are very careful and connected.”

Founded in 2017, Bitwise manages a broad suite of 18 professional investment solutions, including ETFs, publicly traded trusts, SMA strategies, multi-strategy solutions, and private funds. Today, over 1,800 wealth teams, RIAs, family offices, and institutional investors leverage Bitwise to understand and access crypto markets strategically.

Source

Tagged : / / / / /

GBTC Litigation: Fir Tree and Grayscale Reach Agreement

by Blockchain News

Fir Tree Partners, a significant shareholder of the Grayscale Bitcoin Trust (GBTC), and Grayscale Investments have reached an agreement resolving a lawsuit filed by Fir Tree in December 2022. The litigation sought documents and information from Grayscale about potential mismanagement and conflicts of interest at GBTC.

The lawsuit highlighted Fir Tree’s concerns about Grayscale’s refusal to allow redemptions despite no relevant regulatory restrictions, GBTC’s extensive conflicts of interest and lack of independent oversight, and its campaign to convert GBTC into an ETF.

Under the terms of the agreement, Grayscale has agreed to voluntarily produce certain books and records in response to Fir Tree’s demand. In return, Fir Tree has agreed to dismiss its books-and-records litigation against Grayscale.

Despite this agreement, Fir Tree expressed disappointment that Grayscale management refused to comply with Fir Tree’s information rights for months and has still failed to address concerns about GBTC’s structure and the unavailability of redemptions.

Fir Tree has proposed a simple solution for GBTC, suggesting that Grayscale permit redemptions of outstanding GBTC shares so that shareholders may recover some portion of their investment. This proposal has been repeatedly rejected by Grayscale over the last eight months.

In March 2023, Fir Tree proposed an alternative solution: that Grayscale conduct a tender offer for a meaningful percentage of outstanding GBTC shares. This proposal was also rejected by Grayscale and DCG.

Fir Tree believes that a tender offer could unlock significant value for GBTC shareholders, DCG, and Genesis creditors. For example, if Grayscale were to conduct a tender offer for 20% of shares outstanding at 94% of NAV, it could potentially unlock $3.6 billion in immediate value for GBTC shareholders who participate in the tender offer.

Fir Tree urges Grayscale to act in the best interests of all GBTC shareholders and finally commit to a long-overdue tender offer to unlock billions in immediate value for all shareholders who participate in a tender.

Image source: Shutterstock

Source

Tagged : / / / / /

Grayscale CEO Calls on SEC to Protect Investors

by Blockchain News

Grayscale Investments’ CEO Michael Sonnenshein has called on the United States Securities and Exchange Commission (SEC) to protect Grayscale investors by returning the true asset value to them. In a recent interview on the popular podcast “What Bitcoin Did” hosted by Peter McCormack, Sonnenshein stated that he “can’t imagine” why the SEC “wouldn’t want” to protect Grayscale investors by approving the Grayscale Bitcoin Trust (GBTC) as a spot Bitcoin exchange-traded fund (ETF).

Sonnenshein explained that the SEC acted arbitrarily by denying approval for GBTC to be a spot Bitcoin ETF while approving Bitcoin Futures ETFs. He added that the SEC violated the administrative procedures act, which ensures that the regulator doesn’t show “favoritism” or act “arbitrarily.” According to Sonnenshein, Grayscale is currently suing the SEC over the denial of its initial application, and a decision on the case could be reached by fall 2023.

If GBTC were approved as a spot Bitcoin ETF, there is a “couple billion dollars” of capital that would immediately go back into investors’ pockets, on an “overnight basis,” as the fund would “bleed back” up to its net asset value (NAV). Sonnenshein explained that this is due to GBTC currently trading at a discount to its NAV, but if it were to convert to an ETF, there would be an “arbitraged mechanism” embedded, and there would no longer be a discount or a premium.

Grayscale has over a million investor accounts, with investors worldwide counting on the firm to “do the right thing for them.” Sonnenshein “can’t imagine” why the SEC wouldn’t want to “protect investors” and “return that value” to them. He added that Grayscale isn’t going “to shy” away from the fact that it has a “commercial interest” in this approval.

This comes after the SEC filed a 73-page brief with the U.S. Court of Appeals for the District of Columbia in December 2022, outlining its reasons for denying Grayscale’s request to convert its $12 billion Bitcoin Trust into a spot-based Bitcoin ETF in June 2022. The SEC based its decision on findings that Grayscale’s proposal did not sufficiently protect against fraud and manipulation. The agency had made similar findings in several earlier applications to create spot-based Bitcoin ETFs.

Grayscale is a digital currency investment firm that offers a range of investment products, including the Grayscale Bitcoin Trust, which is designed to provide investors with exposure to the price of Bitcoin without the challenges of buying, storing, and safekeeping Bitcoin directly. The trust is listed on the OTCQX market and is available to both accredited and non-accredited investors. GBTC was launched in 2013, and as of January 2022, it held over $30 billion in assets under management. Grayscale’s Bitcoin Trust is one of the most popular ways for investors to gain exposure to Bitcoin, and the firm has been at the forefront of the movement to bring Bitcoin to the mainstream.

The SEC has been hesitant to approve Bitcoin ETFs, citing concerns about fraud, manipulation, and the lack of regulation in the cryptocurrency market. In the past, the SEC has rejected several proposals for Bitcoin ETFs, citing concerns about market manipulation and insufficient investor protection. However, the agency has recently shown a more favorable attitude toward Bitcoin, with several Bitcoin Futures ETFs receiving approval.

In the case of Grayscale’s GBTC, the SEC has raised concerns about the trust’s structure and the potential for market manipulation. Grayscale’s proposal to convert GBTC into a spot-based Bitcoin ETF was denied in June 2022, with the SEC citing concerns about the lack of regulation in the Bitcoin market and the potential for market manipulation.

Grayscale has challenged the SEC’s decision, arguing that the agency acted arbitrarily and violated the administrative procedures act. Grayscale’s CEO, Michael Sonnenshein, has been vocal in his criticism of the SEC’s decision, arguing that it has hurt investors by preventing them from realizing the true value of their investment in GBTC.

The case is currently making its way through the U.S. Court of Appeals for the District of Columbia, and a decision is expected by fall 2023. If Grayscale is successful in its challenge, it could pave the way for other Bitcoin ETFs to be approved, opening up a new avenue for investors to gain exposure to Bitcoin.

Overall, the Grayscale-SEC dispute highlights the challenges facing regulators as they try to balance investor protection with the need to foster innovation in the cryptocurrency market. As the market for digital assets continues to grow, it is likely that we will see more clashes between regulators and industry participants as they try to navigate this rapidly evolving landscape.

Source

Tagged : / / / / /

Institutional investors pull back from crypto amid regulatory crackdown

by Blockchain News

In the aftermath of the regulatory crackdown in the United States, institutional investors may have gotten the jitters on cryptocurrency. As a result, digital asset investment products had the highest weekly outflow of any asset class in 2023.

The institutional cryptocurrency fund management CoinShares said on February 20 that digital asset investment products suffered withdrawals of $32 million last week, the greatest outflow of the year. This was the largest outflow since the beginning of the year.

The outflow follows a massive crackdown on the digital asset industry in the United States, which has targeted everything from staking services to stablecoins to crypto custody as the Securities and Exchange Commission ramps up what industry analysts have dubbed its “war on crypto.” The SEC has targeted everything from staking services to stablecoins to crypto custody as it ramps up what they have dubbed their “war on crypto.”

According to CoinShares analyst James Butterfill, outflows peaked at $62 million halfway through the previous week, but they dropped down by the end of the week as sentiment recovered.

The vast bulk of these withdrawals, or 78%, were made from investment instruments connected to Bitcoin (BTC), while Bitcoin short funds received an infusion of $3.7 million during this time period. The company placed responsibility for the increasing outflows on the heightened scrutiny from regulators.

We think that this is because investors in ETPs have a more pessimistic outlook on recent regulatory pressures in the United States in comparison to investors in the wider market.

Despite this, the general market had a gain of 10% over the time period in question, which was not reflective of the pessimistic outlook expressed by institutional investors. Butterfill said that as a result of this, the total assets under management for institutional products reached $30 million, which is the highest level since August.

However, blockchain equities reversed the trend with inflows that totaled $9.6 million for the week. Ethereum (ETH) and mixed-asset funds also saw withdrawals of capital over the same time period.

In the month of January, institutional investors resumed their practice of investing in cryptocurrency funds, with total inflows of $117 million for the last week of the month, marking a new record for the past six months.

Nevertheless, there has been a withdrawal from funds during the last two weeks, after a period of four weeks in January when there were deposits.

The change in attitude might be attributed to a regulatory enforcement action that occurred on February 9, when the SEC brought charges against Kraken for the staking services it provided. A few days later, it filed a lawsuit against Paxos about the minting of Binance USD (BUSD), and only the week before that, it suggested reforms that would affect cryptocurrency companies that operate as custodians.

Source

Tagged : / / / / /

The UK’s Regulatory Policy Committee is Against the FCA

by Blockchain News

There is a lack of consensus among those who make decisions on public policy in the United Kingdom over whether or not retail investors should be barred from purchasing, promoting, or distributing derivatives and exchange-traded notes (ETNs) that are linked to cryptocurrencies.

The Regulatory Policy Committee is of the opinion that the measure, which was implemented in 2021, cannot be justified given the present state of affairs. In January of 2021, the restriction was enforced by the Financial Conduct Authority (FCA), which is the primary regulatory body in the United Kingdom.

Since that time, businesses are not permitted to sell bitcoin derivatives products to retail clients. These products include futures, options, and exchange-traded notes (also known as ETNs).

In spite of the fact that 97% of people who responded to the FCA’s consultation opposed the “disproportionate” prohibition, the FCA went ahead and enacted the blanket ban anyway. Many of the respondents argued that retail investors are capable of evaluating the risks and the value of crypto derivatives.

The Regulatory Policy Committee (RPC), which is an advisory public body that is sponsored by the Department for Business, Energy and Industrial Strategy of the United Kingdom government, presented its arguments against the FCA’s restriction on January 23.

The RPC conducted a cost-benefit analysis and determined that the yearly losses caused by the policy were about 333 million dollars (or 268.5 million British pounds).

According to the RPC, the FCA did not offer a detailed description of the particular events that may take place in the event that the restriction was not in place.

In addition, it failed to provide an explanation of the methodology and calculations used to assess the costs and benefits at the time.

In light of this, the RPC assigns the ban the “red” rating, which indicates that it does not fulfil its intended function.

The unfavourable evaluation provided by the RPC does not automatically result in the immediate repeal of the Act.

In spite of this, given that the committee has connections to the Department of Business, Energy, and Industrial Strategy, it is possible that this will signal a difference in understanding of what constitutes fair regulation between the FCA and the government.

The British financial authorities made a number of substantial measures to encourage the growth of the digital economy last year. These efforts were documented in a report.

For instance, “designated crypto assets” were included in a list of investment transactions that are eligible for the Investment Manager Exemption. This exemption is for investment managers.

Source

Tagged : / / / /

Samsung Investment Exploring Hong Kong Spot-Bitcoin ETF

by Blockchain News

DB928707075B2EE29BEA16151C2DC7BE1BFD6FB6775F448E899CFC77D22C2A5D.jpg

Following closely on the heels of its exchange-traded fund (ETF) for Bitcoin futures in Hong Kong, Samsung Asset Management has stated that it is exploring the launch of a spot Bitcoin ETF on the city’s exchange, provided that the laws allow for it. This announcement comes shortly after Samsung Asset Management launched its Bitcoin futures ETF in Hong Kong.

In a recent interview with Bloomberg that was published on January 13, it was reported that Sam Park, the chief executive of Samsung Asset Management in Hong Kong, was recently quoted as saying the following: “It truly depends on how policy is going to be created.”

He stated that developing Hong Kong into a hub for the Bitcoin business is “clearly” the goal of the administration in charge of the city’s affairs in Hong Kong.

Rebecca Sin, an ETF analyst at Bloomberg Intelligence, made the observation that “Hong Kong is well positioned to become Asia’s crypto gateway.” She anticipates that spot Bitcoin and Ether (ETH) products will be permitted there by the end of the year. Sin’s statement was made in reference to the fact that Sin believes Hong Kong is well positioned to become Asia’s crypto gateway. The basis for Sin’s forecast was the assertion that Hong Kong is “ideally positioned to become Asia’s crypto gateway.”

On January 13, Samsung debuted an exchange-traded fund (ETF) that will invest in Bitcoin futures on the Hong Kong Exchanges and Clearing Market. The Hong Kong Exchanges and Clearing Market is the only exchange in Asia that presently offers trading in Bitcoin futures ETFs. This distinction currently belongs to Hong Kong.

Additional interest has been shown in Hong Kong futures exchange traded funds (ETFs), such as the $73.6 million that was invested in two ETFs managed by CSOP Asset Management prior to their listing on December 16th. This investment is an example of the additional interest that has been shown in Hong Kong futures ETFs.

The fact that so much bitcoin activity is taking place in countries other than the United States is being attributed by many people to a lack of clarity in the applicable laws. Because of this, legislators are advocating for crypto legislation to be enacted as rapidly as is practically possible.

Source

Tagged : / / / /
Bitcoin (BTC) $ 26,652.14 1.65%
Ethereum (ETH) $ 1,594.56 1.83%
Litecoin (LTC) $ 64.98 0.38%
Bitcoin Cash (BCH) $ 208.93 2.46%