Asset management firm Vanguard may not be directly offering Bitcoin exchange-traded funds (ETFs) on its platform, but it has a notable connection to the cryptocurrency space through its ownership of a substantial stake in MicroStrategy (MSTR).
As of September 2023, Vanguard Group was found to hold a significant 8.24% ownership stake in MicroStrategy, making it the second-largest institutional shareholder in the company, with a whopping 1,126 million MSTR shares in its portfolio, according to data from Yahoo Finance.
Moreover, MicroStrategy’s stock also features in the holdings of several of Vanguard’s mutual funds, including the Vanguard Total Stock Market Index Fund, Vanguard Small-Cap Index Fund, Vanguard Extended Market Index Fund, and Vanguard Small-Cap Growth Index Fund.
MicroStrategy itself has established a robust connection with Bitcoin, with its balance sheet carrying a substantial exposure to the cryptocurrency.
Over the past years, MicroStrategy and its subsidiaries have accumulated a total of 189,150 BTC, with a collective purchase price of approximately $5.9 billion.
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This has led some analysts to characterize MicroStrategy as essentially functioning as a leveraged Bitcoin ETF, given the significant impact of Bitcoin on its stock price in 2023.
In contrast, Vanguard has maintained a somewhat distant stance from the cryptocurrency market.
Despite the debut of spot Bitcoin ETFs by several asset managers on major Wall Street exchanges on January 11, Vanguard chose to block the purchase of such products.
They cited a misalignment with their vision and emphasized their focus on traditional asset classes like equities, bonds, and cash, which they consider the foundational components of a well-balanced, long-term investment portfolio.
Nonetheless, Vanguard’s indirect yet substantial exposure to Bitcoin through its MicroStrategy holdings implies that fluctuations in Bitcoin’s price can affect the performance of its mutual funds and the value of its MSTR shares.
For Vanguard clients, this represents an indirect means of gaining exposure to the cryptocurrency through the firm’s investment platform.
In the rapidly evolving crypto landscape, various firms anticipate a surge in Bitcoin-related products in the coming months, including leveraged and short Bitcoin ETFs, as well as crypto loans collateralized by Bitcoin.
In Rosario, the third-largest city in Argentina, a unique rental agreement has been struck between a local landlord and a tenant.
This groundbreaking contract marks the first instance in Argentina where monthly rent will be paid in Bitcoin.
This innovative arrangement was made possible by recent legislative changes implemented by the country’s new presidential administration.
Under the terms of this historic contract, the tenant will be responsible for making monthly payments equivalent to $100 in Bitcoin.
These transactions will be facilitated through Fiwind, a local cryptocurrency platform.
Notably, both parties involved in this contract are experienced cryptocurrency users, signaling a growing acceptance of digital currencies in the region.
The shift towards embracing cryptocurrencies in Argentina can be attributed to the reforms introduced by President Javier Milei, who assumed office after winning the general election in November 2023.
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The nation was grappling with soaring inflation rates, prompting the need for significant changes in vario
us aspects of the legal system, including rental laws.
In December 2023, Diana Mondino, the Minister of Foreign Affairs, International Trade, and Worship, announced a pivotal decree aimed at promoting economic reform and deregulation.
This decree opened the door for the utilization of Bitcoin and other cryptocurrencies within the country, albeit with certain conditions.
One of the notable changes in the regulatory landscape was the government’s efforts to facilitate the legalization of cryptocurrency holdings, even for individuals who were behind on their tax declarations.
A regularization scheme was introduced, allowing taxpayers to declare their cryptocurrency assets with a flat tax rate of 5% if done by the end of March 2024.
This rate would then increase to 10% from April and further to 15% from July until the end of September.
These recent developments signify Argentina’s growing recognition of the potential of cryptocurrencies as a viable means of conducting financial transactions and fostering economic growth.
With this groundbreaking rental agreement in Rosario, the country takes another step towards embracing the digital currency revolution, potentially setting a precedent for similar arrangements in the future.
Ether has surged over 20% against Bitcoin within just 72 hours, and traders are anticipating further upward movement.
Data from Cointelegraph Markets Pro and TradingView reveals that ETH/BTC, which hit yearly lows of 0.0478 on January 9th, has now climbed to 0.0587.
ETH/USD is also experiencing a breakout, reaching levels not seen on the chart since mid-2022.
A bullish divergence on the moving average convergence divergence (MACD) indicator on weekly timeframes against Bitcoin has caught the attention of popular traders.
This week, Ethereum, the largest altcoin, has outperformed Bitcoin in terms of returns, even as Bitcoin celebrates the launch of spot exchange-traded funds (ETFs) in the United States.
Despite BTC/USD reaching its highest levels since the post-ETF announcement in December 2021, Ether’s resurgence seems to overshadow it.
The anticipation of Ethereum’s U.S. ETF debut later in the year has added to the bullish sentiment.
BlackRock’s CEO, Larry Fink, who recently released a Bitcoin ETF, expressed interest in a similar move for Ether, which further fueled optimism around Ethereum.
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“Larry Fink is already beating the Ethereum drum. One day after the Bitcoin launch,” responded trader and analyst Scott Melker, also known as “The Wolf Of All Streets,” on X (formerly Twitter). “The rotation is real.”
Looking ahead, Michaël van de Poppe, founder and CEO of trading firm MNTrading, believes that Ether will continue to gain ground against Bitcoin as part of the overall cryptocurrency market cap.
He suggested that Bitcoin’s dominance appears to have peaked, especially in anticipation of the Bitcoin halving.
“Expecting to see a continuation as Ethereum is taking more momentum.
This might be the cycle’s high on the Dominance as the altcoin bull market has started,” said Van de Poppe.
He also pointed out that attention may shift away from BTC/USD until after the block subsidy halving in April, which is considered a price catalyst, albeit not an immediate one.
Meanwhile, the ETF narrative suggests a potential Bitcoin supply squeeze as institutions seek long-term exposure to BTC.
This factor could further impact the dynamics between Ethereum and Bitcoin in the coming months.
Vanguard’s recent decision to exclude spot Bitcoin exchange-traded funds (ETFs) from its platform has raised concerns among some of its customers, leading them to consider alternative investment avenues.
The move comes as Vanguard emphasizes its commitment to traditional asset classes like equities, bonds, and cash, according to Investing Insider.
Vanguard officially stated that they will not offer spot Bitcoin ETFs for purchase on their platform and have no plans to introduce any Bitcoin or crypto-related products.
This decision is in line with their focus on conventional investment offerings, as they believe these assets are the foundation of a well-balanced, long-term investment portfolio.
Vanguard did not participate in the applications for spot Bitcoin ETFs in 2023, which has prompted investors to explore other platforms.
Tony Spencer, a Vanguard customer, claimed that the company informed him that they are not permitting the purchase of spot Bitcoin ETFs because it contradicts Vanguard’s investment philosophy.
Currently, Vanguard only allows investors to sell Grayscale’s flagship Bitcoin product, which was recently transformed into a spot ETF.
In response to Vanguard’s stance, some customers, including Coinbase’s senior engineering manager Yuga Cohler, are moving their funds to other platforms like Fidelity, which launched one of the ten spot Bitcoin ETFs on January 11.
Cohler expressed dissatisfaction with Vanguard’s decision, stating that it doesn’t align with his investment philosophy.
Neil Jacobs, a Bitcoin commentator, also voiced his disapproval and is in the process of transferring his funds out of Vanguard, describing the decision as a “terrible business decision.”
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The Wall Street Journal reported that customers of investment firms such as Citi, Merrill Lynch, Edward Jones, and UBS faced similar restrictions on purchasing spot Bitcoin ETFs on their respective platforms.
Some of these firms are still evaluating their approach to these products.
UBS is reviewing unsolicited offers from prospective spot Bitcoin ETF investors on a case-by-case basis and is currently making the ETF available only for “aggressive investors.”
Not all approved spot Bitcoin ETFs are available on their platform.
Citi has made a spot Bitcoin ETF available for institutional clients and is considering its adoption for individual wealth clients.
Merrill Lynch is monitoring the efficiency of spot Bitcoin ETF trading before deciding to offer these products to their customers.
In contrast, JPMorgan’s brokerage platform allowed spot Bitcoin ETF trading, with JPMorgan being an authorized participant of BlackRock’s iShares Bitcoin Trust ETF. However, JPMorgan disclosed potential risks to prospective investors considering these trades.
The first day of trading for spot Bitcoin ETFs, following regulatory approval, saw trading volumes exceeding 4.5 billion dollars, primarily driven by BlackRock, Grayscale, and Fidelity’s Bitcoin ETFs.
Additionally, the United States Securities and Exchange Commission approved applications from various ETF issuers, including ARK 21Shares, Invesco Galaxy, VanEck, WisdomTree, Valkyrie, Bitwise, and Franklin Templeton, with Hashdex awaiting S-1 approval.
Following the recent approval by the United States Securities and Exchange Commission (SEC) of spot Bitcoin exchange-traded funds (ETFs), SEC Commissioner Mark Uyeda has expressed significant reservations regarding several aspects of the approval process.
While Uyeda voted in favor of the groundbreaking decision to approve these Bitcoin ETF applications, he voiced concerns about the underlying analytical approach adopted by the commission.
One of Uyeda’s primary concerns revolves around the potential long-term repercussions of the SEC’s reasoning in the approval order.
He worries that the flawed rationale and legal analysis employed in this case may serve as a precedent for future decisions, impacting the crypto industry for years to come.
Uyeda’s foremost objection centers on the SEC’s differentiation between Bitcoin and other commodities.
He believes that Bitcoin should be treated on par with other commodities and criticizes the commission’s use of the “significant size” test as a unique benchmark for spot Bitcoin ETP (exchange-traded product) applications.
According to Uyeda, spot Bitcoin ETPs should have been approved much earlier under this standard, and he questions why they continue to be treated differently than Bitcoin futures ETPs under the “significant market” test.
Although none of the Bitcoin ETF applicants met the SEC’s significant market test, the approval cited “other means” that satisfied the requirements.
Uyeda contends that the SEC’s decision to introduce a new standard after applicants spent years pursuing the significant market requirement was unjust.
He argues that the commission should have communicated its expectations more clearly to applicants, rather than forcing them to make multiple attempts with uncertain criteria.
Furthermore, Uyeda suspects that the SEC’s motivation for expediting the approval of spot Bitcoin ETFs was to gain a competitive advantage.
He points out a lack of analysis concerning how the cash-only creation and redemption feature might prevent fraudulent activities.
He emphasizes the importance of transparency in the analysis and reasoning behind approval orders.
In a somewhat contradictory stance, Uyeda ultimately supports the issuance of the approval order, despite his objections to the legal analysis presented in it.
He cites independent reasons for concluding that the applications met the approval standards outlined in the Exchange Act.
Nonetheless, his critique underscores the need for greater clarity, consistency, and fairness in the SEC’s approach to regulating cryptocurrency-related financial products.
The recent decision by the United States Securities and Exchange Commission (SEC) to approve the country’s first spot Bitcoin exchange-traded funds (ETF) has sent ripples of excitement through both the traditional finance (TradFi) and decentralized finance (DeFi) spaces.
This historic decision has sparked curiosity about its potential impact on the markets and, of course, on the price of Bitcoin itself.
Across the Atlantic in Europe, however, the excitement surrounding a Bitcoin ETF has already somewhat subsided. Europe witnessed the introduction of its first spot Bitcoin ETF on August 15, 2023.
The Jacobi FT Wilshire Bitcoin ETF made its debut on the Euronext Amsterdam stock exchange, more than a year after its originally planned launch.
This pioneering ETF was issued by Jacobi Asset Management, a London-based firm.
What set the Jacobi Bitcoin ETF apart was that it was the first physical-backed Bitcoin fund, offering investors exposure to a financial product backed by actual Bitcoin.
Moreover, it was classified as an “environmental investing” or Article 8 fund, promoting environmental and/or social characteristics.
Grzegorz Drozdz, a market analyst at the European Union-based financial services platform Conotoxia, discussed the market implications of U.S. spot Bitcoin ETFs, particularly from a European perspective.
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He noted that the introduction of Bitcoin ETFs has significantly democratized access to the crypto market, moving beyond traditional cryptocurrency exchanges and wallets.
However, Drozdz pointed out that while Bitcoin ETFs are making waves, their size is still relatively small compared to the overall financial and crypto market.
The total capitalization of the cryptocurrency market stands at $1.78 trillion, and existing investment funds in this sector represent only 2.9% of this total value.
In the European Economic Area, there seems to be a greater openness to institutional investment in cryptocurrencies with the launch of Bitcoin ETFs.
However, Drozdz observed that these funds have not yet generated substantial inflows from institutions in Europe. Market expectations are currently more focused on the potential approval of such instruments in the U.S., which could have a more significant impact on the long-term development of the crypto world.
Despite the uncertainties, Drozdz emphasized the rapid increase in the inflow of new funds into the Bitcoin ETF space, which could potentially signal the start of a new bull market.
Given that Bitcoin still commands a substantial 53.7% share of the market’s capitalization, its success could have a significant ripple effect on the rest of the digital currency market.
This sentiment aligns with the speculations of other analysts and social media communities as they await the SEC’s decision on Bitcoin ETFs.
Bitcoin surged towards its recent high as Wall Street opened its doors on January 11th, as new U.S. macroeconomic data put inflation back on the radar. In the pre-market trading hours, Bitcoin’s price exhibited volatility, primarily hovering around $47,000.
The December Consumer Price Index (CPI) report defied expectations, revealing that inflation was accelerating faster than anticipated.
The month-on-month CPI showed a 0.3% increase, surpassing the expected 0.2%.
Furthermore, on a year-on-year basis, the index rose by 3.4%, exceeding the anticipated 3.2%, according to data from the U.S. Bureau of Labor Statistics.
This data confirmed a larger increase in the all-items index for the 12 months ending in December compared to November.
Although such reports usually trigger fluctuations in risk assets, this time they added to the already existing tension in the cryptocurrency markets.
On January 10th, the first U.S. spot Bitcoin exchange-traded fund (ETF) received approval, and its inaugural trading day was set for January 11th. Pre-market data indicated strong investor interest ahead of the ETF’s debut.
On that day, BTC/USD on Bitstamp briefly surpassed $47,700 but remained within its established range, with $48,000 acting as a resistance level.
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Prominent trader Jelle emphasized that shorting Bitcoin at this point was unwise, predicting an eventual upward acceleration.
Meanwhile, Ethereum outshone Bitcoin, with its 24-hour gains exceeding 10%.
This surge was attributed to traders shifting their focus to Ethereum after the ETF approval, as they didn’t witness the expected pump in Bitcoin’s price.
Crypto Tony, another trader, noted this shift in investor sentiment, driving ETH/USD to reach $2,666 on Bitstamp, its highest level since May 2022.
Other cryptocurrencies, such as Solana’s SOL and XRP, also posted double-digit gains.
In conclusion, Bitcoin’s price rallied as U.S. inflation data surprised investors, while the approval of the first U.S. Bitcoin ETF added to the cryptocurrency market’s anticipation.
Despite the volatility, Bitcoin remained within its established range, and Ethereum stole the spotlight with significant gains.
These developments illustrated the continued interest and resilience of the cryptocurrency market in the face of economic data and regulatory advancements.
Prominent lawyers and senators in the United States are urging Congress to launch an inquiry into the U.S. Securities and Exchange Commission (SEC) following a reported compromise of their Twitter account, previously known as X, which disseminated false news regarding the approval of spot Bitcoin exchange-traded funds (ETFs).
Senator Bill Hagerty expressed his dismay over the incident, drawing a parallel between the SEC’s accountability and that of public companies in case of a significant market-moving error.
Hagerty insisted that Congress should seek answers, deeming the situation unacceptable. Senator Cynthia Lummis also called for greater transparency from the SEC regarding the events leading to the erroneous post.
Charles Gasparino from Fox Business revealed that securities lawyers had informed him that the SEC would need to investigate itself for potential market manipulation. U.S. Representative Ann Wagner described the incident as “clear market manipulation” that adversely affected millions of investors, vowing to obtain more information from SEC Chair Gary Gensler.
Bloomberg ETF analyst James Seyffart speculated that Gensler would be displeased with the staff member responsible for the alleged security breach, foreseeing consequences for the individual involved.
Investment manager Timothy Peterson criticized the SEC, arguing that its security breach amounted to a potential market manipulation event, a violation of the commission’s core mission of safeguarding investors.
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The incident in question, labeled as market manipulation, involved the SEC’s Twitter account, which falsely claimed the approval of spot Bitcoin ETFs.
X Safety, an account under the control of X, confirmed that the SEC’s account had been compromised due to an unidentified individual gaining control over a phone number linked to the SEC account through a third party.
Notably, the SEC’s X account lacked two-factor authentication at the time of the breach.
Layah Heilpern, a Bitcoin advocate, highlighted that the false post remained online for 20 minutes and garnered at least 4.4 million views during that period.
Heilpern asserted that this amounted to clear market manipulation.
The SEC has not provided detailed information on how their Twitter account was compromised but has denied the involvement of its staff in publishing the unauthorized tweet.
Despite the controversy, Bloomberg ETF analyst Eric Balchunas remains optimistic about the official approval of spot Bitcoin ETFs, expecting an announcement sometime between 4:00 pm to 5:00 pm Eastern Time on January 10.
Bitcoin is unlikely to experience an immediate bullish surge in response to the United States Securities and Exchange Commission’s (SEC) potential approval of a spot Bitcoin exchange-traded fund (ETF), according to an analysis by trading firm QCP Capital.
Despite recent developments, Bitcoin’s price has displayed limited upside volatility.
The recent turmoil in the Bitcoin market was triggered by a hacker who falsely claimed on the SEC’s X (formerly Twitter) account that the first U.S. spot Bitcoin ETF had received official approval.
This incident was later revealed to be the result of a SIM swap attack, facilitated by the lack of two-factor authentication on the compromised account.
During this period of confusion and the subsequent correction by the SEC, the price of Bitcoin briefly approached $48,000 but failed to surpass that level.
QCP Capital interprets these events as a warning sign that even if the SEC grants official approval, it may not ignite the substantial rally that Bitcoin enthusiasts are anticipating.
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The trading firm stated that the initial response to the fake “approval” was subdued, with Bitcoin unable to break free from its resistance level.
There remains a glimmer of hope for investors, as the deadline for approving one ETF application, submitted by ARK Invest, falls on January 10th.
Historically, the SEC has approved all ETFs simultaneously, so an announcement may be imminent.
$48,000 has become a pivotal price level for Bitcoin traders, with many considering it to be a local peak.
The future direction of Bitcoin’s price remains a topic of debate, with some foreseeing continued sideways movement, while more pessimistic predictions anticipate a substantial correction to as low as $35,000 or even $12,000.
At the time of writing, BTC/USD was trading near $45,600 ahead of the Wall Street opening on January 10th.
As the crypto market eagerly awaits the SEC’s decision, the uncertainty surrounding Bitcoin’s immediate future prevails.
Two U.S. Senators, J.D. Vance and Thom Tillis, have urged the United States Securities and Exchange Commission (SEC) to provide a comprehensive report to Congress regarding the security breach that occurred on January 9 involving the SEC’s X Twitter account.
In a letter addressed to SEC Chair Gary Gensler on the same day as the incident, the senators expressed their grave concerns about the breach and its implications for the SEC’s internal cybersecurity protocols.
The senators emphasized that the breach was not only a matter of cybersecurity but also ran contrary to the SEC’s fundamental mission, which includes safeguarding investors, ensuring fair and efficient markets, and promoting capital formation.
They were particularly troubled by the “widespread confusion” caused by the hack, which prompted their request for a detailed report from the SEC to Congress.
The letter set a deadline of January 23 for the SEC to submit the report, drawing attention to an existing mandate that compels businesses to disclose the impact of any cybersecurity incident within four days.
The senators specifically asked whether the SEC could provide Congress with a report within this mandated timeframe if the breach was indeed a result of a cybersecurity attack, seeking an explanation if such a deadline couldn’t be met.
The breach, which occurred on January 9, involved the SEC’s X Twitter account posting a false tweet claiming that spot Bitcoin exchange-traded funds (ETFs) had received approval in the United States.
READ MORE: SEC Chair Warns of Crypto Risks Amid Spot Bitcoin ETF Decision
The ensuing confusion in the cryptocurrency community was short-lived as Gensler later confirmed that the SEC’s X account had been compromised and the tweet unauthorized.
Critics, including investors and market participants, criticized the SEC for its lack of preparedness against cyberattacks and online threats.
An internal investigation by X, formerly Twitter, revealed that the SEC account did not have two-factor authentication enabled at the time of the breach.
The report from X also indicated that the breach occurred because an unidentified individual gained control over a phone number linked to the @SECGov account through a third party.
Several other prominent government officials, including Senators Cynthia Lummis and Bill Hagerty, as well as Representative Ann Wagner, echoed the concerns of their congressional colleagues.
Hagerty demanded full transparency regarding the incident, while Lummis emphasized the risks associated with fraudulent announcements that can manipulate financial markets, calling for clarity on such incidents.
These collective concerns highlight the urgent need for a comprehensive report from the SEC to address the security breach and its broader implications.