The countdown is on for the United States Securities and Exchange Commission (SEC) to decide to approve the first spot bitcoin exchange-traded fund (ETF) in the United States. After several delays, the regulator's final deadline is approaching and market participants anticipate a decision in early January 2024.
In another sign that a green light may be forthcoming, companies awaiting approval have met periodically with SEC officials in recent weeks, discussing their proposals and making requested adjustments.
If approved, the largest cryptocurrency will be traded on the spot market of major Wall Street exchanges, opening up bitcoin (btc) to a broader audience of investors, this time as a product backed by the world's most prominent investment firms. world. If denied, investment managers will likely appeal the ruling, prolonging the waiting period for investors and Bitcoiners in the United States.
Anticipation has led bitcoin futures open interest to hit $5.2 billion on global derivatives giant the Chicago Mercantile Exchange (CME) on December 6, just $200 million shy of its all-time high of late October 2021 during the bull market. With btc open interest rising, markets are preparing for another price inflection point and increased volatility in 2024.
In this week's crypto Biz, we look at BlackRock seeding capital for its bitcoin spot ETF, HashKey expanding its market maker approach, and Societe Generale issuing a bond on ethereum.
HashKey Exchange to Onboard Market Makers to Increase Liquidity
The Hong Kong HashKey Exchange will soon allow individual and corporate market makers to provide liquidity on the exchange. According to an announcement, HashKey will allow individuals and entities to apply to become market makers if they trade at least $5 million in cryptocurrency per month on the exchange. Depending on monthly rankings or trading volume, users and businesses will receive between 0.005% and 0.015% of the transaction value as commission. All market makers are exempt from paying trading commissions. The exchange has been increasing its service offering. In November, HashKey launched insurance coverage for business and user assets stored in its digital wallets.
Market Makers Will Soon Join @HashKeyExchange. With the goal of achieving greater liquidity, the exchange opens doors for individual and business participants. https://t.co/2RfbGwUujy
— Cointelegraph (@Cointelegraph) December 5, 2023
BlackRock Received $100,000 Initial Funding for bitcoin ETF: SEC Filing
BlackRock received $100,000 in seed funding from an unknown investor for its bitcoin spot ETF in October 2023, according to its latest filing with the US SEC. The investor agreed to purchase 4,000 shares for $100,000 on October 27, 2023. , at $25.00 per share, and the investor would “act as legal underwriter with respect to the seed creation baskets.” According to BlackRock's latest filing, it plans to borrow bitcoin or cash as trade credit from a short-term trade credit lender to pay the sponsor fee. BlackRock can “collect its fees” through a loan instead of having to sell btc (the ETF asset). That way, “they don't affect the price of btc as much.”
Societe Generale issues its first green bond on ethereum
France's third largest bank, Societe Generale, issued its first digital green bond as a security token on the public ethereum blockchain. The bond, registered by Forge, a subsidiary of Societe Generale, went public on November 30 with a value of 10 million euros (about $11 million) and a maturity of three years. Its “green” status means that its net proceeds will be used to finance or refinance products and companies classified in the category of eligible green activities. The bond's digital infrastructure grants 24/7 open access to data about your carbon footprint through the bond's smart contract. Another innovation of the bond is a technical option for investors to settle securities on-chain through EUR CoinVertible, a euro-pegged stablecoin issued by Forge in April 2023.
Societe Generale issued its first digital green bond as a Security Token registered directly by Societe Generale-FORGE in the ethereum?src=hash&ref_src=twsrc%5Etfw”>#ethereum public blockchain.
— Societe Generale Group (@SocieteGenerale) December 4, 2023
US crypto Firms Spent More on Lobbying in 2023 Than Before FTX Collapse: Report
Companies connected to the cryptocurrency and blockchain industry in the US reportedly spent approximately $3 million more on lobbying in the first three quarters of 2023 than during the same period in 2022. According to data from the transparency group government Open Secrets, cryptocurrency companies spent approximately $19 million. in lobbying from January to September 2023, up about 19% from the same period in 2022. Coinbase reportedly led lobbying spending with more than $2 million, followed by crypto.com, Blockchain Association, and Binance. Before its collapse in November 2022, FTX had been one of the biggest spenders in the crypto space in donations to campaigns and marketing efforts of US lawmakers.
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