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Word on the Street: One ETF proposal down, two to go

The market found respite from the rejection of a bitcoin ETF as there are still two more ETF proposals lodged with the SEC from experienced fund managers.

The focus of the Nasdaqmeeting was apparently how to improve the image of cryptocurrency and bitcoin in particular. According to Bloomberg, among the topics discussed were the implications of future regulation for cryptocurrencies, what the necessary tools are and what surveillance will be needed.

Nasdaq CEO, Adena Friedman, has been a vocal advocate of blockchain and cryptocurrencies recently, saying they will soon find utility in the real world. Nasdaq is already providing surveillance services for the Gemini exchange and the Cboe’s futures markets by monitoring BTC and ETH trading for price manipulation.

There are still two other ETF proposals lodged with the SEC for approval, the VanEck-SolidX bitcoin ETF and a Cboe ETF. Needless to say, both companies have far more experience in setting up exchange-traded funds than the Winklevoss brothers, in particular, VanEck is an investment management firm that specializes in funds.

SEC commissioner dissents to ETF ruling (l**ow impact)

Interestingly, one SEC Commissioner Hester M. Peirce did in fact dissent from the official announcement on Friday, saying: “Bitcoin is a new phenomenon, and its long-term viability is uncertain. It may succeed; it may fail. The Commission, however, is not well positioned to assess the likelihood of either outcome, for bitcoin or any other asset. Many investors have expressed an interest in gaining exposure to bitcoin, and a subset of these investors would prefer to gain exposure without owning bitcoin directly.”

CME says more crypto products not likely: (m**edium impact)

In the lead up to the SEC’s ETF announcement the Chicago Mercantile Exchange (CME), which launched the first bitcoin futures contracts, last week damped any speculation that it would launch any altcoin futures or other products.

CME chief executive Terry Duffy said: I will not just put products up there to see where they’re going to go. I will take a wait and see approach.”

CME, the world’s largest exchange operator, and the Chicago Board of Exchange (Cboe) introduced BTC futures at the end of last year and although trading in both has been very subdued, the Cboe’s XBT contract has more average trading volume. However, the CME contracts trade more in USD terms as the CME contract is 5 times the size of the XBT.

Crypto fundraising by hedge funds continues (I**ow-medium impact)  

Former Wall St hedge fund manager-turned bitcoin billionaire Mike Novogratz continued his fundraising trailblazing this week by raising $52m for a crypto-lending startup through his Galaxy Digital “crypto merchant bank”.

The startup, Blockfi, is planning on launching a crypto-based USD lending platform. In June Galaxy digital invested $15m in Alphapoint, the crypto exchange software provider.

Novogratz stated: “We’re excited to partner with BlockFi and jointly lead the way for financial institutions to participate in crypto investing strategies,” adding “a robust lending market is the keystone for financial systems and BlockFi’s institutional approach and deep lending expertise were key drivers in our decision to partner with them.”

Galaxy Digital lost $134m in the first quarter this year on the back of the crypto bear market.

Crypto bullish fund manager: bitcoin to hit $500k in six years (low impact)

Another fund manager, Mark Yusko, whose firm Morgan Creek Capital is setting up a crypto fund revealed in an interview why he thinks bitcoin could go to $500,000 in the next six years.

"If you look at [Bitcoin price] history, you know there’s been five parabolic moves or crashes, and we’ll have a 6th, 7th, and 8th, and 9th, and it is just the way it works. So I don’t think you need a big event, and you’ve seen it in the past couple of weeks, right? As soon as the price starts to run. Those people that have been waiting on the sidelines to make sure that the bear market is over are ready to jump in, and then once it actually starts moving, then it starts moving fast and that’s when you get those parabolic moves.”

Vietnamese regulator: stay away from crypto (low impact)

Vietnam’s securities watchdog has required local businesses not to engage in transactions with cryptocurrencies. The announcement follows a directive issued by the country’s prime minister earlier this year aimed at tightening what Vietnamese regulators call the management of crypto activities.

Follow @AndrewBNC

After the initial market pullback on the news that the Winklevoss brother’s ETF plan was rejected by the SEC for a second time, it found some solace that the doors weren’t entirely shut as Nasdaq held a meeting with cryptocurrency businesses shortly after, including the Winklevoss’ Gemini exchange.


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