Tag: Exchange-Traded Funds

Banking Giant BNY Mellon Expects Significant Revenue From Its Crypto Services: Report

by Dailyhodl

America’s oldest bank is eager to capitalize on the cryptocurrency revolution but remains concerned that the government still has not provided regulatory clarity.

According to a new Bloomberg report, Bank of New York Mellon Corporation (BNY Mellon) chief financial officer Emily Portney says the holding company expects digital assets to act as a significant revenue source by 2023.

Portney says,

“There are proposals in front of the Securities and Exchange Commission that haven’t yet been approved on whether ETFs [exchange-traded funds] can actually hold digital assets directly versus futures.”

BNY Mellon is already moving forward into the crypto space by partnering with financial technology firm Fireblocks, which also recently announced a deal with interest-earning blockchain protocol Aave (AAVE) to launch the world’s first permissioned decentralized finance (DeFi) platform.

The BNY Mellon CFO reiterated how important it is for mainstream financial institutions to obtain clear definitions of what is permitted from the U.S. Securities and Exchange Commission (SEC) before offering crypto investment services to their clients.

Portney says in an interview with Reuters,

“We’re hoping for more clarity around digital assets.

Frankly, it’s a bit confusing about who actually regulates digital assets and especially crypto… and of course exactly what you can or cannot do.

A lot of the activity is happening in I guess what I would call the shadow banking system just because of the lack of clarity.”

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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Here’s Why a Spot Bitcoin ETF is Coming This Year, According to Bitwise CIO Matt Hougan

by Dailyhodl

Bitwise CIO Matt Hougan is optimistic that federal regulators will finally green-light a spot Bitcoin (BTC) exchange-traded fund (ETF) this year.

In a new interview on CNBC’s ETF Edge, Hougan says that in terms of fraud risks, there is no material difference between the flagship cryptocurrency and other commodities to warrant the disapproval of Bitcoin ETFs.

“There’s certainly instances of fraud and manipulation in all sorts of commodity markets.

I don’t think they’re materially worse in the Bitcoin market and so, if the same standards are applied to oil, natural gas, gold, silver, et cetera, that have allowed ETF to launch in those commodities if those same standards are applied to Bitcoin and other crypto assets.

I think crypto will get through.”

Hougan says that the crypto industry’s efforts to address the concerns of the U.S. Securities and Exchange Commission (SEC)  will eventually translate to regulators approving pure-play Bitcoin ETF applications.

“While I can’t speak to Bitwise’s filings, the quality of filings around Bitcoin ETFs have improved dramatically over the past year.

Companies, not just Bitwise but others, are providing extreme amounts of data to the SEC to help answer their questions and I think, eventually, the cumulative weight of evidence will force them to move forward with an approval.”

Hougan explains why an ETF approval will largely benefit investors.

“That’s going to be great for investors. It’s going to be more investor protections, going to be better products.

It’s going to dramatically lower prices to access the crypto market that could save people billions of dollars over the long term, so I’m very hopeful we get it this year.”

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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ETF Issuer Creates Investment Product Designed to Short Bitcoin

by Dailyhodl

Exchange-traded fund (ETF) issuer Direxion is showing interest in launching an ETF that shorts Bitcoin (BTC), the world’s top cryptocurrency.

In a filing with the U.S. Securities and Exchange Commission (SEC), the company says that the product, named Direxion Bitcoin Strategy Bear, will provide short exposure to the Chicago Mercantile Exchange’s (CME) Bitcoin futures contracts.

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“The Fund seeks to achieve its investment objective through managed short exposure to CME Bitcoin futures contracts. The Fund does not invest directly in Bitcoin.”

According to the SEC filing, the Direxion Bitcoin Strategy Bear ETF will hold short positions in Bitcoin futures contracts irrespective of market direction.

“The Fund will generally maintain its short exposure to Bitcoin Futures during periods in which the value of Bitcoin is flat or declining as well as during periods in which the value of Bitcoin is rising.”

If approved, Direxion Bitcoin Strategy Bear will be listed and traded on the ETF and equities exchange NYSE Arca.

Direxion’s filing coincides with another exchange-traded fund issuer, Valkyrie, applying to launch a leveraged Bitcoin ETF. According to Valkyrie’s SEC filing, the Valkyrie XBTO Levered BTC Futures ETF will apply a 1.25x leverage if approved.

“The Fund seeks daily investment results, before fees and expenses, that correspond to one and a quarter times (1.25x) the daily performance of the Bitcoin Reference Rate. The Fund does not seek to achieve its stated investment objective over a period of time greater than a single day.”

If approved, the Valkyrie XBTO Levered BTC Futures ETF will list and trade on the Nasdaq stock exchange.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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SEC Approves ETF Exposing Investors to ‘Bitcoin Industry Revolution Companies’

by Dailyhodl

The U.S. Securities and Exchange Commission (SEC) is approving a new exchange-traded fund (ETF) that offers investors indirect exposure to crypto assets.

The regulator has given the go-ahead for the Volt Crypto Industry Revolution and Tech ETF (BTCR) to trade on the New York Stock Exchange (NYSE).

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According to the new filing,

“The Fund defines companies with exposure to Bitcoin as ‘Bitcoin Industry Revolution Companies,’ which are domestic and foreign… companies that:

(i) hold a majority of their net assets in Bitcoin on their balance sheet as can be reasonably determined by the company’s annual filings from the past 12 months; and/or

(ii) derive a majority of their revenue or profits directly from mining, lending, transacting in Bitcoin, or manufacturing Bitcoin mining equipment as can be reasonably determined by the company’s annual filings from the past 12 months.”

While the Volt ETF approval is a noteworthy milestone for the crypto space, it is not a straightforward Bitcoin ETF. The SEC announced this week that it is postponing application deadlines for four BTC ETF products until later this year.

The regulator says it needs additional time to look into a proposed rule change that will allow the Nasdaq Stock Market to list and trade shares of the Global X, Kryptoin, Valkyrie, and WisdomTree Bitcoin ETFs.

San Francisco-based Volt Equity targets investment in disruptive technologies, including autonomous driving, financial technology (fintech), and cloud computing.

According to the company’s website,

“Volt aims to provide investment solutions that allow investors to take part in [what] we believe are some of the most innovative publicly traded companies.”

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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Canada Security Regulator Approves Three Ethereum ETFs In A Single Day

by Blockchain News

The Canadian regulator, the Ontario Securities Commission, has approved three Ethereum ETFs (exchange-traded funds). CI Global Asset Management company, Purpose Investments Inc., company, and Evolve Fund Group Inc., have both received approval to launch three separate Ether ETFs. 

The Ether ETFs would be available on Toronto Stock Exchange (TSX) to give investors exposure to the second-largest cryptocurrency by market capitalization, Ether.

Evolve and Purpose already have Bitcoin ETFs trading on Toronto Stock Exchange (TSX).

CI Global Asset Management is collaborating with Galaxy Digital holdings Ltd to launch CI Galaxy Ethereum ETF on April 20 on the Toronto stock exchange, subject to TSX approval. Steve Kurz, the partner and head of Asset Management at Galaxy Digital, said: “We are thrilled to continue building our advisory relationship with CI. The CI Galaxy Ethereum ETF gives investors a simplified path to benefit from the explosion of decentralized applications being built on Ethereum.”

Likewise, Evolve Fund Group Inc. plans to start the trading of its Ether EFT (ETHR) on April 20 on the Toronto Stock Exchange. Raj Lala, the CEO and president at Evolve, stated: “We are very excited to have launched one of the world’s first bitcoin ETFs and now plan to launch the world’s first Ether ETF. Similar to bitcoin, investors will now be able to trade Ether as simple as buying shares through their bank or brokerage. ETHR will provide daily liquidity, transparency and security through a regulated ETF structure.”

Purpose Ether ETF is designed to provide investors with exposure to Ether by investing directly in physically settled ether. The Purpose Ether ETF is set to offer three classes of units: US dollar units (ETHH.U), Canadian dollar non-currency hedged units (ETHH.B), and Canadian dollar currency-hedged units (ETHH). 

EFTs are investment vehicles that allow investors to purchase shares that represent a certain asset – this case, Ether. Investors can trade them continuously throughout the day without worrying about owning the asset themselves or holding cryptocurrency, like storage.

In other words, Ether ETFs would allow investors to buy into the ETF without going through the complicated process of trading Ether itself. Furthermore, since holders of the ETFs would not be investing in Ether directly, they would not have to worry about the complex storage and security procedures required of crypto investors.

Bitcoin ETF Problem in the US

While the neighbouring US regulators are still yet to approve Bitcoin ETFs, Canada has appeared to be progressive toward the regulated cryptocurrency instruments. In early February, Canada approved its first Bitcoin ETF which witnessed a huge demand from investors. And recently, Canadian regulators approved two Bitcoin ETFs that allow investors to take short positions in the cryptocurrency. 

A Bitcoin ETF in the United States is still a long way from being approved. Currently there is long list of prominent companies (such as NYDIG Asset Management, Valkyrie Digital Assets, Galaxy Digital, SkyBridge Capital, VanEck, Cboe, WisdomTree, and Fidelity Investments) applying to the SEC for Bitcoin ETF approval. But the US Securities and Exchange Commission (SEC) has repeatedly rejected applications for firms that intend to launch Bitcoin ETFs.

The SEC claims that Bitcoin is traded on unregulated exchanges, thus leaving it susceptible to manipulation and fraud. However, there are still hopes that the new SEC boss Gary Gensler could change the regulatory agency’s attitude towards the novel investment product. 

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You can already invest in hundreds of ETFs with exposure to Bitcoin

by Cointelegraph

Numerous U.S.-traded exchange-traded funds, or ETFs, are loading up on shares in the world’s top crypto firms.

According to ETF.com, hundreds of funds have invested in publicly-listed companies that are holding BTC on their balance sheets. As of this writing 88 ETFs hold MicroStrategy shares, while 144 ETFs hold Square, and 222 ETFs hold Tesla. Sixteen ETFs have direct exposure to Bitcoin mining stocks.

Almost 200 ETFs hold shares in BlackRock, which recently profited $360,457 after starting to “dabble a bit” in crypto.

Top-performing ETFs with crypto exposure

Nine funds are exposed to both crypto mining stocks and firms with BTC on their balance sheets. 

As a share of its overall portfolio, the Amplify Transformational Data Sharing ETF (BLOK) has the greatest exposure to crypto. Seven of BLOK’s top 10 allocations are in leading crypto firms, including Galaxy Digital, Marathon Digital, Voyager Digital, Hut 8 Mining, Hive Blockchain, Riot Blockchain, and Argo Blockchain. These stocks represent one-third of BLOK’s capital.

The fund describes its investments as targeting “transformational data sharing technologies.”

BLOK is among the top-performing ETFs of 2021 so far, gaining 71.7% since the start of the year. So far in 2021 it’s recorded the eighth-highest returns among all ETFs — and it ranks second if you exclude leveraged and inverse products. Among ETFs, BLOK is the single-largest hodler of both MicroStrategy and Marathon’s stock.

The Nasdaq NexGen Economy ETF (BLCN) is the only other crypto-exposed ETF that ranks among the top 100 ETFs by YTD performance when excluding inverse and leveraged funds, coming in at 82nd with a YTD gain of 23.15%.

BLCN currently holds $5.63 million worth of Marathon stock, $5.4m in Microstrategy, and $5.24 million in Square.

Largest holders by total value of assets

When measured by total value of assets, the Vanguard Total Stock Market ETF (VTI) is the ETF with the heaviest allocations to crypto-exposed firms. The VTI currently represents $2.77 billion worth of Tesla, $478 million of Square, $29.4 million of Microstrategy, and $11.38 million of Riot Blockchain. VTI also owns $516 million worth of Blackwater. 

The iShares Core S&P Total U.S. Stock Market ETF (ITOT) is the second-largest fund by overall exposure to crypto, holding $450 million worth of Tesla, $4.4 million of Microstrategy, $3.86 million of Marathon, and $3.12 million in Riot.

The U.S. Securities and Exchange Commission is yet to issue a verdict on seven applications for Bitcoin ETFs, including Fidelity Investments, Skybridge Capital, WisdomTree, Morgan Stanley and NYDIG, VanEck, and Valkyrie Digital Assets.

The Purpose Bitcoin ETF began trading on the Toronto Stock Exchange in mid-February, and has accumulated roughly $1 billion worth of BTC since inception. Canada’s Ninepoint Partners and CI have also announced plans to convert their Bitcoin funds into ETFs.