The Bitcoin community is eagerly awaiting the decision of the U.S. Securities and Exchange Commission (SEC) on whether to approve the first spot Bitcoin exchange-traded fund (ETF) in the country. Several applications have been filed by different firms, but the deadline for the SEC to act on them is January 10th, 2024.
According to Bloomberg ETF analysts, the chances of approval are very high. In a recent note, they reaffirmed their “90%” approval odds for spot Bitcoin ETFs, citing the positive signals from the SEC chair Gary Gensler and the growing demand from investors. They also noted that the SEC has already approved several Bitcoin futures ETFs, which are based on contracts that track the price of Bitcoin, rather than holding the actual cryptocurrency.
Spot Bitcoin ETFs, on the other hand, would directly invest in Bitcoin and store it in a secure custody service. This would provide more exposure and liquidity to the Bitcoin market, as well as lower fees and tracking errors for investors. Spot Bitcoin ETFs are already available in Canada and Europe, where they have attracted billions of dollars in assets.
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Bloomberg ETF analysts believe that the approval of spot Bitcoin ETFs in the U.S. would be a game-changer for the cryptocurrency industry, as it would boost the adoption and legitimacy of Bitcoin as an asset class. They also expect that the approval would trigger a rally in the price of Bitcoin, which has been trading sideways in recent weeks.
However, they also caution that there are still some risks and uncertainties involved. The SEC could delay its decision beyond January 10th or impose strict conditions or limitations on the spot Bitcoin ETFs. Moreover, the regulatory environment for cryptocurrencies is still evolving and could pose challenges for the ETF providers and investors.
Therefore, they advise investors to be prepared for volatility and diversify their portfolios with other types of ETFs, such as those that offer exposure to blockchain technology, digital payments, or cybersecurity. They also recommend investors to do their own research and due diligence before investing in any cryptocurrency-related products.
Jack Dorsey funds $6.2 million initiative OCEAN to decentralize Bitcoin mining globally.
Jack Dorsey has announced a new initiative called OCEAN, which stands for Open and Clean Energy Access Network. The goal of OCEAN is to decentralize Bitcoin mining globally by providing a transparent, non-custodial mining pool that anyone can join and benefit from.
Bitcoin mining is the process of securing the Bitcoin network and creating new bitcoins by solving complex mathematical problems using specialized hardware. However, Bitcoin mining is also criticized for its high energy consumption and environmental impact, as well as its centralization in certain regions and entities.
OCEAN aims to address these challenges by leveraging renewable energy sources, such as solar, wind, and hydro, to power Bitcoin mining operations. OCEAN will also use an open-source software that allows anyone to run their own node and verify the transactions on the network, without relying on a third-party intermediary.
OCEAN is funded by a $6.2 million grant from Dorsey’s Square Crypto, the cryptocurrency arm of his payment company. Dorsey has been a vocal supporter of Bitcoin and its potential to create a more inclusive and fair financial system. He has also expressed his vision of making Bitcoin more accessible and sustainable for everyone.
OCEAN is not the first project that Dorsey has backed to promote Bitcoin decentralization. In June 2021, he announced that Square was building a hardware wallet for Bitcoin that would enable users to store and manage their own private keys. He also revealed that Square was developing a platform called TBD, which would enable developers to create decentralized applications on top of Bitcoin.
OCEAN is expected to launch in early 2024, with the first batch of miners being distributed to selected participants around the world. OCEAN hopes to attract more miners and users to join its network and contribute to the security and growth of Bitcoin.