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In recent times, one topic has dominated the news and headlines and captured the attention of investors and enthusiasts: the Bitcoin Exchange-Traded Fund (ETF).
The potential approval of an ETF on Bitcoin has become a hotly debated topic, with experts and analysts closely monitoring regulatory developments and market sentiments.
In this article, we dive into the latest updates, analysis and expert opinions surrounding the long-awaited ETF for Bitcoin.
Whether you are a seasoned trader or a curious observer, we at The Cryptonomist will provide a comprehensive view of the evolving landscape of Bitcoin ETFs and their impact on the future of digital assets.
News: TD Cowen via report weighs in on Bitcoin and the benefits of ETF approval
TD Cowen, a leading investment banking firm, recently released a bullish report on Bitcoin adoption by MicroStrategy.
The report, obtained by Bitcoin Magazine, sheds light on MicroStrategy‘s innovative approach to converting its excess cash flow into Bitcoin, making it a strategic move to protect and accelerate shareholder value creation.
According to the investment bank, several catalysts are expected to push the price of Bitcoin in the short term.
These include the SEC’s potential approval of an ETF on Bitcoin, the development of the Lightning Network, potential accounting changes regarding Bitcoin holdings, and Bitcoin’s impending halving of its value, which is expected to occur in less than a year.
The report is optimistic that an ETF on Bitcoin will gain SEC approval, a view shared by several other companies. TD Cowen’s Washington policy expert Jaret Seiberg has previously said that approval of such an ETF is inevitable.
TD Cowen believes Bitcoin has the potential to become a superior store of value compared to other forms of money, including fiat currencies, metals, and digital assets. The report highlights various properties of Bitcoin, such as durability, portability, fungibility, divisibility, scarcity, and resistance to censorship, as factors supporting its thesis.
The report presents an intriguing projection that if Bitcoin surpasses the $17 trillion gold stock market, its price could reach about $800,000 in 2023 in terms of purchasing power.
News: Grayscale wants SEC to approve all Bitcoin ETFs at once
Grayscale’s legal team has taken an assertive stance in urging the Securities and Exchange Commission (SEC) to approve all Bitcoin spot Exchange-Traded Funds (ETFs) at the same time in order to eliminate any potential advantage one might have over others.
In particular, several major players in the financial industry, including Invesco, BlackRock, Valkyrie, Vaneck, Wisdom, Fidelity, and ARK Invest, have submitted applications for Bitcoin ETFs and updated their applications to include standardized surveillance agreements (SSAs) with Coinbase.
Grayscale’s proposal is not limited to simultaneous approval, but also involves Coinbase, a cryptocurrency exchange.
Grayscale believes Coinbase should provide its trading book data and other information to the SEC to ensure proper oversight and monitoring of any market manipulation or irregular trading activities.
Grayscale’s push towards the SEC
The SEC recently rejected some ETF proposals, citing the absence of SSA as a prerequisite to combat potential manipulation of the crypto market. However, Grayscale challenges the need for SSA, arguing that Coinbase is not registered with the SEC as a stock exchange or broker-dealer, nor with the Commodity Futures Trading Commission as a futures exchange, and therefore should not be subject to such requirements.
As the debate over Bitcoin ETFs continues, Grayscale’s bold push for simultaneous approvals and its request for cooperation from Coinbase add further complexity to the already dynamic cryptocurrency regulatory landscape.
Investors and industry participants anxiously await the SEC’s decision and its implications on the broader adoption of cryptocurrencies in traditional financial markets.
The outcome of this proposal could shape the future of Bitcoin ETFs, potentially opening the door to a wider range of investment options while addressing concerns about market integrity and manipulation.
While the SEC carefully weighs these considerations, the crypto community is holding its breath, hoping for a groundbreaking decision that could pave the way for greater institutional participation in the burgeoning world of cryptocurrencies.
JP Morgan says the Bitcoin ETF will increase the liquidity of Bitcoin itself
According to a report by JPMorgan, the potential approval of a Bitcoin exchange-traded fund (ETF) in the United States may not lead to significant changes in cryptocurrency markets, despite the expected increase in liquidity for Bitcoin.
The report, written by Nikolaos Panigirtzoglou, managing director of JPMorgan’s London-based global market strategy team, suggests that a Bitcoin ETF in the United States would likely have a similar impact to those already existing in Canada and Europe, if such ETFs have been available for some time.
Contrary to the high expectations surrounding a US Bitcoin ETF, Panigirtzoglou notes that existing ETFs in other jurisdictions have not garnered much investor interest over the past two years.
These ETFs have failed to attract substantial inflows, even during periods when gold ETFs have experienced outflows.
While an ETF approval may bring more liquidity to the Bitcoin market, Panigirtzoglou also foresees a potential migration of trading activity from Bitcoin futures products to ETFs.
This shift in trading activity could have implications for both futures and spot markets.
This outlook differs from the bullish sentiment expressed by BlackRock CEO Larry Fink, who suggested that investors might turn to Bitcoin as a hedge against inflation and fiat currency devaluation.
Fink sees Bitcoin as an international asset independent of any specific currency, making it a viable alternative for investors.
Despite differing views on the impact of a Bitcoin ETF, the general interest in cryptocurrencies remains significant.
As the Department of Labor reported, in the 12 months preceding May, the inflation rate rose considerably, triggering interest in potential inflation hedges such as Bitcoin.
