Today’s weekly roundup looks at the US ETF race, as BlackRock and VanEck modify their filings. Additionally, authorities in Montenegro are considering extraditing Terra’s founder, while the crypto scene sees sustained regulatory developments.
BlackRock, Bitwise and VanEck Amend ETF Filings
- As major asset managers continued to anticipate a decision on a spot Bitcoin ETF, they made changes to align with the US SEC’s demands. Bloomberg ETF analyst James Seyffart revealed on December 4 that BlackRock He had modified his presentation.
- Reports further suggested that crypto fund manager Bitwise also updated its app. Seyffart noted that these updates confirm that the SEC is actively discussing the possible launch of the product.
- Four days later, asset manager VanEck also filed an amended Form S-1 with the US SEC, marking its first amendment, Seyffart revealed. According to the updated presentation, the product is expected to carry the HODL symbol.
Pando joins ETF race, BlackRock welcomes seed investor
- While others waited for a decision on their respective filings, Swiss-based asset management firm Pando Asset AG joined the race for a spot Bitcoin ETF in the US. On December 4, Pando became the thirteenth asset manager to apply for the product with the SEC.
- Meanwhile, BlackRock recently welcomed an initial investor to its potential Bitcoin spot ETF vehicle. Notably, the unnamed investor pumped $100,000 as an initial investment into the product, according to a BlackRock disclosure.
Sustained anticipation
- In addition to its Bitcoin ETF filing, asset manager Grayscale also witnessed a delay in the approval of its Ethereum spot ETF. The US SEC revealed this week that it would postpone a decision on the ETH ETF filing until January 25, 2024.
- Amid the wait on the 13 BTC spot ETF applications, reports on December 7 indicated that discussions between the SEC and the companies in question have seen significant progress, with a tilt toward important technical details.
- Interestingly, this week’s ETF filings shifted from Bitcoin and Ethereum to MicroStrategy. YieldMax, an ETF-focused investment firm, has petitioned the SEC to launch an ETF based on MicroStrategy shares, which have soared since the company adopted the Bitcoin standard.
- Ark Investment could make a decision on its BTC spot ETF application sooner than others, as the deadline for the SEC to give a response draws closer, scheduled for January 10, 2024.
Do Kwon appeals extradition decision
- Terra founder Do Kwon was dissatisfied with an earlier ruling approving his extradition from Montenegro to South Korea or the United States. Do Kwon’s lawyers are now appealing the decision.
- Despite the appeal, speculation has already arisen about whether Do Kwon would be extradited to the United States or South Korea. The Wall Street Journal reported that the former fugitive could be heading to the United States, citing people familiar with the matter.
- The US SEC moved to obtain a legal classification of crypto assets in its case against the founder of Terra. The agency wrote to the judge presiding over the case, asking him to rule on whether the assets in question are securities.
Cryptocurrencies face aggression in the US
- Regulatory uncertainty surrounding cryptocurrencies in the US exposed some hawkish commentary on the asset class this week. JPMorgan CEO Jamie Dimon expressed his animosity toward cryptocurrencies and noted that he would shut them all down if given the chance.
- According to Dimon, Bitcoin and cryptocurrencies have no real use case, apart from criminal activities such as money laundering and drug trafficking.
- Senator Elizabeth Warren, who often spars with Dimon and other banking executives over consumer interests, said the crypto sector represents a new threat to the U.S. She said the asset class is being leveraged to finance terrorism. and drug trafficking.
- Amid the aggression, US presidential candidate Vivek Ramaswamy defended Bitcoin during the Republican presidential debate. Ramaswamy emphasized the utility of Bitcoin and criticized SEC Chairman Gary Gensler for his regulatory approach.
Kazakhstan bans Coinbase, UK warns against Poloniex
- Global regulatory developments emerged this week. Kazakhstan imposed a restriction on Coinbase for its citizens amid regulatory violations and investigations into possible money laundering practices.
- Poloniex also faced a hurdle in the UK for its offerings in the country. The British Financial Conduct Authority (FCA) included the exchange on its warning list, noting that the exchange does not have permission to offer its services.
