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Home Blog Page 3818

What to know as SEC decides on spot Bitcoin ETFs

By
Paul Ugbede Godwin
-
0

The U.S. Securities and Exchange Commission (SEC) is expected to make a decision on several applications for spot bitcoin exchange-traded funds (ETFs) in the coming weeks. These products would allow investors to gain exposure to the price of bitcoin without having to buy or store the cryptocurrency directly.

Spot bitcoin ETFs differ from the futures-based bitcoin ETFs that have already been approved by the SEC, such as the ProShares Bitcoin Strategy ETF (BITO) and the Valkyrie Bitcoin Strategy ETF (BTF). Futures-based ETFs track the price of bitcoin futures contracts traded on the Chicago Mercantile Exchange (CME), which may not reflect the actual spot price of bitcoin in the market.

Spot bitcoin ETFs, on the other hand, would hold actual bitcoins in custody and track their market price. This would potentially offer lower fees, higher liquidity, and more accurate price discovery for investors. However, spot bitcoin ETFs also face higher regulatory hurdles, as the SEC has expressed concerns about the risks of fraud, manipulation, and theft in the underlying bitcoin market.

The SEC has set deadlines for several spot bitcoin ETF applications in January and February 2022, including those from VanEck, NYDIG, WisdomTree, Valkyrie, and Bitwise. However, these deadlines are not binding, and the SEC could delay its decision or seek additional information from the applicants. The SEC could also approve, deny, or institute proceedings to determine whether to approve or deny the applications.

The approval of spot bitcoin ETFs would be a major milestone for the cryptocurrency industry, as it would signal the SEC’s recognition of the maturity and legitimacy of the bitcoin market. It would also likely boost the demand and adoption of bitcoin among institutional and retail investors, as well as increase its price and volatility.

However, the approval of spot bitcoin ETFs is not guaranteed, and investors should be prepared for any outcome. The SEC may still have unresolved issues with the bitcoin market structure, custody arrangements, valuation methods, and investor protection measures. The SEC may also consider the potential impact of spot bitcoin ETFs on the broader financial system and the public interest.

Therefore, investors should do their own research and due diligence before investing in any bitcoin-related products, and understand the risks and rewards involved. Spot bitcoin ETFs may offer a convenient and accessible way to invest in bitcoin, but they are not a substitute for owning and securing bitcoin directly.

VanEck bought $72.5 million Bitcoin to seed its Bitcoin ETF

VanEck, one of the leading asset management firms in the US, has announced that it has purchased $72.5 million worth of Bitcoin to seed its newly launched Bitcoin exchange-traded fund (ETF). The VanEck Bitcoin Trust, which began trading on the Nasdaq on January 5, is the first Bitcoin ETF in the US to receive approval from the Securities and Exchange Commission (SEC).

The Bitcoin ETF is designed to provide investors with exposure to the price performance of Bitcoin without the hassle of buying, storing, and securing the cryptocurrency themselves. The trust holds Bitcoin in cold storage with a qualified custodian and tracks the performance of the MVIS CryptoCompare Bitcoin Benchmark Rate, a real-time reference rate for the price of Bitcoin.

According to a filing with the SEC, VanEck bought 3,751.7 Bitcoins at an average price of $19,316.76 per coin on January 4, the day before the ETF launched. The total value of the trust’s assets as of January 5 was $74.1 million, which includes $1.6 million in cash and other receivables.

VanEck’s move is a significant milestone for the Bitcoin industry, as it marks the first time that a major US asset manager has launched a Bitcoin ETF. The firm has been one of the most persistent advocates for a Bitcoin ETF, having filed multiple applications with the SEC since 2017. VanEck’s latest proposal, filed in December 2020, was approved by the SEC in November 2021 after a lengthy review process.

The approval of VanEck’s Bitcoin ETF has also sparked hopes that more Bitcoin ETFs will follow suit in the near future. Several other firms, including Fidelity, WisdomTree, and Valkyrie, have also filed applications for Bitcoin ETFs with the SEC, but are still awaiting approval. Analysts believe that the launch of more Bitcoin ETFs will increase the liquidity, accessibility, and adoption of Bitcoin among institutional and retail investors, as well as boost its price and market capitalization.

Combating Illegal Wildlife Trade: Nigeria Destroys $11.2m (N9.9bn) Worth of Elephant Tusks

By
Samuel Nwite
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0

In a firm statement against illegal wildlife trade, Nigeria witnessed a significant event on Tuesday, January 09, 2024, as the government destroyed a staggering 2.5 tons of confiscated elephant tusks valued at over $11.2 million (N9.9 billion).

The tusks, seized from wildlife traffickers, were ceremoniously shattered and are slated to be pulverized into a commemorative monument in Abuja, Nigeria’s capital.

The move, spearheaded by Environment Minister Iziaq Salako, is a decisive stand against the escalating illegal wildlife trade. Salako said that the destruction of the tusks serves as a clear message that Nigeria will not tolerate this illicit practice. The intended monument aims to symbolize Nigeria’s commitment to elephant conservation.

Nigeria has increasingly become a hotspot for the illegal trade in African animal parts, primarily catering to Asia’s demand. The recent destruction of nearly four tonnes of pangolin scales in October underscored the country’s firm stance against wildlife trafficking.

Despite decades-long bans on international ivory commerce, experts estimate that tens of thousands of elephants fall victim to poaching annually. The 2.5-ton haul destroyed this week, showcasing intricately carved artworks, represents one of Nigeria’s most significant seizures.

According to recent reports, Africa’s elephant population has drastically declined from over 1.3 million in the 1970s to less than 500,000 today. Nigeria, home to a mere 400 elephants, faces a critical conservation challenge. Human-elephant conflicts, often arising from crop destruction or human encounters, further compound the issue.

Highlighting this, a viral video in December depicting soldiers shooting two elephants that strayed onto farmland prompted public outrage and triggered investigations by Nigerian authorities.

More efforts, strategies Needed

Nigeria’s step to destroy confiscated ivory echoes a global call for preserving endangered species. However, efforts and strategic measures remain imperative to curb the thriving illegal wildlife trade and ensure the survival of Africa’s dwindling elephant population.

Some conservationists have raised concerns, arguing that destroying seized ivory may not be the most effective solution. They suggest utilizing confiscated ivory for educational purposes, art exhibitions, or scientific research to raise awareness and combat demand. Experts and conservationists globally advocate for multifaceted approaches seen in other nations.

Countries such as Kenya and Gabon have implemented innovative strategies to address the poaching crisis and curb the illegal wildlife trade.

Kenya, for instance, has been lauded for its holistic approach. The East African country invests significantly in anti-poaching units, employs community-based conservation initiatives, and collaborates with international organizations to combat wildlife crime.

Similarly, Gabon has taken a proactive stance by establishing specialized law enforcement units dedicated to protecting wildlife. Alongside stringent law enforcement measures, Gabon emphasizes community engagement, incorporating local populations in conservation efforts and offering incentives for protecting wildlife habitats.

Despite Nigeria’s bold statement in destroying confiscated ivory, gaps in its approach to combat poaching and illegal wildlife trade remain evident. The lack of comprehensive anti-poaching strategies, limited resources allocated to wildlife protection, and insufficient community involvement pose significant challenges.

Furthermore, the decision to pulverize the ivory into a monument, while symbolically powerful, has raised concerns among conservationists. Some argue that alternative approaches, such as controlled sales of seized ivory under strict regulations, could fund conservation efforts, support local communities, and diminish the black market demand.

The tragic incident in December, where soldiers shot elephants that strayed onto farmland, underscores the urgent need for improved training and protocols within Nigeria’s enforcement agencies to handle human-wildlife conflicts effectively.

While Nigeria’s commitment to conserving elephants is commendable, adopting a more comprehensive strategy akin to successful models in other African nations, along with stronger law enforcement, community engagement, and innovative conservation measures, could significantly bolster efforts to safeguard its dwindling elephant population and combat the illegal wildlife trade more effectively.

Taiwan Preps for Communications Blackout if China Invades As Russia Warns Ukraine

By
Paul Ugbede Godwin
-
0

As tensions between China and Taiwan continue to escalate, the island nation is preparing for the worst-case scenario: a full-scale invasion by the People’s Liberation Army (PLA).

One of the main challenges that Taiwan would face in such a scenario is how to maintain communications with its allies and the international community, as well as among its own military and civilian sectors, in the face of a massive cyberattack and electronic warfare campaign by China.

According to experts, China has the capability and the intent to disrupt Taiwan’s communications networks, both wired and wireless, using a combination of hacking, jamming, spoofing, and physical attacks. China could also target Taiwan’s satellites, which are vital for navigation, surveillance, and communication.

Such a communications blackout could severely hamper Taiwan’s ability to coordinate its defense, request assistance, and inform the world of the situation on the ground.

To counter this threat, Taiwan has been developing and deploying various measures to ensure the resilience and redundancy of its communications systems. Some of these measures include:

Building a secure fiber-optic network that connects all military bases and command centers, as well as key government agencies and critical infrastructure. This network is designed to withstand physical damage and cyberattacks, and to provide high-speed and high-capacity data transmission.
– Developing a new satellite system, called Formosat-7, that consists of six microsatellites that can provide real-time weather data and ionospheric monitoring. This system can enhance Taiwan’s situational awareness and early warning capabilities, as well as support its missile defense and anti-jamming operations.

Acquiring more mobile and low-profile communication platforms, such as truck-mounted satellite terminals, tactical radios, and drones, that can operate in contested environments and provide alternative means of communication.

Establishing a national cybersecurity center, called the Information and Communication Security Technology Center (ICST), that is responsible for monitoring, detecting, and responding to cyber threats. The center also conducts research and development on cybersecurity technologies and provides training and education for cybersecurity personnel.

Enhancing public awareness and preparedness for a communications blackout scenario, by conducting drills, simulations, and exercises that test the readiness and interoperability of various communication systems and protocols. The government also encourages the public to use encrypted messaging apps, VPNs, and other tools that can protect their online privacy and security.

Taiwan’s efforts to bolster its communications capabilities are part of its overall strategy of asymmetric warfare, which aims to deter or delay a Chinese invasion by exploiting Taiwan’s advantages in technology, geography, and morale. By ensuring that Taiwan can communicate effectively under any circumstances, Taiwan hopes to send a clear message to China and the world: Taiwan will not surrender easily.

Russia warns Ukraine about consequences of its aggressive actions in the Donbas

On Wednesday evening, a new aggravation of the situation took place in the Donbass. Ukrainian forces shelled militia positions on the front line in an attempt to break through to the Russian border. As a result of the attack, one Russian serviceman was killed, and two others were injured.

This is not the first time that the Ukrainian military has violated the ceasefire established in 2015 in Minsk. Since the beginning of the year, according to the OSCE, more than 2,000 ceasefire violations have been recorded in Donbas. At the same time, Kiev not only ignores the demands of the international community to resolve the conflict, but also continues to build up its military forces on the border with Russia.

Russia has repeatedly warned Ukraine of the consequences of its aggressive actions in the Donbas. Russian President Vladimir Putin said that Russia will not leave without protection the residents of Donbass, who expressed their will in referendums in 2014. Russian Foreign Minister Sergei Lavrov stressed that Russia is ready for dialogue with Ukraine, but only on the basis of respect for the sovereignty and territorial integrity of Donbass.

In connection with the aggravation of the situation in Donbas, Russia also appealed to the UN Security Council with a demand to take measures to prevent the escalation of the conflict. Russia called on international organizations and guarantor countries of the Minsk agreements to actively influence Kiev so that it abandons plans for a military solution to the Donbass problem.

Russia also expressed its condolences to the families and friends of the dead and wounded Russian soldiers. The Russian Defense Ministry said it was providing all necessary assistance to the victims and was ready to evacuate the body of the deceased from the conflict zone.

The situation in the Donbas region of Ukraine remains tense and volatile, as the Ukrainian government continues to pursue a military solution to the conflict with the pro-Russian separatists. Russia, which has been supporting the rebels with arms and personnel, has repeatedly warned Ukraine of the consequences of its aggressive actions in the Donbas.

According to Moscow, any escalation of violence or attempt to retake the territory by force would be met with a strong and decisive response from Russia, which considers the Donbas as part of its sphere of influence and historical legacy. The international community, meanwhile, has been urging both sides to respect the Minsk agreements, which were signed in 2015 and 2016 to establish a ceasefire and a political dialogue.

However, the implementation of these agreements has been stalled by mutual distrust and accusations of violations. The risk of a full-scale war between Ukraine and Russia is high, and the implications for regional and global security are grave. In this blog post, we will analyze the causes and consequences of the Donbas crisis, and explore the possible ways to resolve it peacefully.

CNBC reports spot Bitcoin ETF likely to be approved Wednesday, potentially trading on Thursday or Friday

By
Paul Ugbede Godwin
-
0

The cryptocurrency world is buzzing with anticipation as the U.S. Securities and Exchange Commission (SEC) is expected to approve the first spot Bitcoin ETF this week, according to CNBC sources. A spot Bitcoin ETF is an exchange-traded fund that tracks the price of the underlying asset, in this case, Bitcoin, rather than relying on futures contracts or other derivatives. This means that investors can gain exposure to the largest and most popular cryptocurrency without having to buy, store, or manage it directly.

The SEC has set a deadline of Wednesday, January 10, 2024, to make a decision on the VanEck Bitcoin Trust, one of the several spot Bitcoin ETF proposals that have been filed with the regulator. VanEck is a well-known asset manager with over $80 billion in assets under management and has been pursuing a Bitcoin ETF since 2017. The firm has partnered with SolidX, a blockchain technology company, to provide custody and insurance for the Bitcoin holdings of the fund.

If approved, the VanEck Bitcoin Trust could start trading as soon as Thursday or Friday on the Cboe BZX Exchange, under the ticker symbol XBTF. This would mark a historic milestone for the crypto industry, as it would be the first time that U.S. investors can access Bitcoin through a regulated and mainstream investment vehicle. The launch of a spot Bitcoin ETF could also boost the demand and liquidity for Bitcoin, as well as increase its adoption and acceptance among institutional and retail investors.

However, the approval of a spot Bitcoin ETF is not a foregone conclusion. The SEC has been notoriously cautious and skeptical about crypto-related products and has rejected or delayed dozens of Bitcoin ETF applications in the past. The main concerns of the regulator are related to the potential for market manipulation, fraud, and lack of investor protection in the crypto space. The SEC has also indicated that it prefers a futures-based Bitcoin ETF over a spot one, as futures markets are more regulated and transparent than spot markets.

Therefore, there is still a possibility that the SEC could deny or postpone the decision on the VanEck Bitcoin Trust or impose strict conditions or limitations on its operation. Moreover, even if the VanEck Bitcoin Trust is approved, it could face competition from other spot Bitcoin ETFs that are waiting for the SEC’s green light, such as those from Valkyrie Investments, NYDIG Asset Management, WisdomTree Investments, and Bitwise Asset Management.

Additionally, there are already several futures-based Bitcoin ETFs that have been launched in the U.S. market since October 2021, such as those from ProShares, Invesco, Valkyrie, and VanEck itself.

Therefore, investors who are interested in gaining exposure to Bitcoin through an ETF should do their due diligence and research before making any decisions. They should also be aware of the risks and volatility involved in investing in crypto assets, as well as the fees and taxes that may apply. A spot Bitcoin ETF may be an attractive and convenient option for some investors, but it is not a guarantee of success or profitability.

A closely-watched decision on Bitcoin is expected on Wednesday as the Securities and Exchange Commission faces a deadline to rule on at least one of the 11 applications for exchange-traded funds that hold the cryptocurrency. It comes after the SEC said late Tuesday that an announcement earlier in the day indicating they had been approved was false. An agency spokesperson said hackers using the SEC’s official X account made the inaccurate claim, but it had yet to make an official decision. Optimism has been building for weeks around a potential SEC approval, with the price of the cryptocurrency more than doublingsince last January.

X late Tuesday confirmed the account was compromised, saying that based on its investigation, an unidentified individual got control of a phone number associated with the account through a third party.

BlackRock and ARK have slashed their Bitcoin ETF fees

By
Paul Ugbede Godwin
-
0

In a move that could spark a price war among Bitcoin ETF providers, BlackRock and ARK Invest have announced that they are lowering the annual fees for their respective products.

BlackRock, the world’s largest asset manager, said on Monday that it would reduce the expense ratio of its Bitcoin Futures ETF (BTCF) from 0.95% to 0.75%, effective from January 10. The fund, which launched in October 2021, tracks the performance of Bitcoin futures contracts traded on the Chicago Mercantile Exchange (CME).

ARK Invest, the innovation-focused investment firm led by Cathie Wood, followed suit on Tuesday, saying that it would cut the fee for its Bitcoin ETF (ARKB) from 0.95% to 0.65%, effective from January 11. The fund, which debuted in November 2021, invests directly in Bitcoin through a custodian.

Both funds have seen strong demand from investors since their inception, with BTCF and ARKB holding about $1.2 billion and $800 million in assets under management, respectively, as of January 7. However, they also face fierce competition from other Bitcoin ETFs that have lower fees or offer exposure to the spot market.

The spot market is where Bitcoin is bought and sold for immediate delivery, while the futures market is where contracts are traded that promise to deliver Bitcoin at a specified date and price in the future. The spot price reflects the current supply and demand of Bitcoin, while the futures price reflects the market’s expectations of future movements.

Investing in futures or spot Bitcoin has different advantages and disadvantages. Futures contracts can provide leverage, hedging, and arbitrage opportunities, but they also involve higher fees, rollover costs, and basis risk. Spot Bitcoin can offer direct ownership, lower fees, and tax benefits, but it also requires secure storage, reliable custodians, and regulatory compliance.

For instance, the Valkyrie Bitcoin Strategy ETF (BTF), which launched in December 2021 and invests in both futures and spot Bitcoin, charges a fee of 0.5%. The Bitwise Bitcoin ETF (BITO), which also tracks CME futures contracts, has a fee of 0.95%, but it has hinted at lowering it in the future. The VanEck Bitcoin Trust (XBTF), which is expected to launch soon and will be the first U.S.-listed ETF to hold physical Bitcoin, will charge a fee of 0.65%.

The fee reduction by BlackRock and ARK could put pressure on other Bitcoin ETF providers to follow suit or risk losing market share. Lower fees could also attract more investors to the nascent industry, as they would reduce the cost of gaining exposure to the leading cryptocurrency.

However, fees are not the only factor that investors should consider when choosing a Bitcoin ETF. Other aspects, such as liquidity, tracking error, tax implications, and counterparty risk, could also affect the performance and suitability of different products. Moreover, investors should be aware of the volatility and regulatory uncertainty that surround the Bitcoin market, and only invest what they can afford to lose.

A closely-watched decision on Bitcoin is expected on Wednesday as the Securities and Exchange Commission faces a deadline to rule on at least one of the 11 applications for exchange-traded funds that hold the cryptocurrency. It comes after the SEC said late Tuesday that an announcement earlier in the day indicating they had been approved was false. An agency spokesperson said hackers using the SEC’s official X account made the inaccurate claim, but it had yet to make an official decision. Optimism has been building for weeks around a potential SEC approval, with the price of the cryptocurrency more than doublingsince last January.

X late Tuesday confirmed the account was compromised, saying that based on its investigation, an unidentified individual got control of a phone number associated with the account through a third party. (lINKEDIN NEWS)

CNBC reports spot Bitcoin?ETF likely to be approved Wednesday, potentially trading on Thursday or Friday

The cryptocurrency world is buzzing with anticipation as the U.S. Securities and Exchange Commission (SEC) is expected to approve the first spot Bitcoin ETF this week, according to CNBC sources. A spot Bitcoin ETF is an exchange-traded fund that tracks the price of the underlying asset, in this case, Bitcoin, rather than relying on futures contracts or other derivatives. This means that investors can gain exposure to the largest and most popular cryptocurrency without having to buy, store, or manage it directly.

The SEC has set a deadline of Wednesday, January 10, 2024, to make a decision on the VanEck Bitcoin Trust, one of the several spot Bitcoin ETF proposals that have been filed with the regulator. VanEck is a well-known asset manager with over $80 billion in assets under management and has been pursuing a Bitcoin ETF since 2017. The firm has partnered with SolidX, a blockchain technology company, to provide custody and insurance for the Bitcoin holdings of the fund.

If approved, the VanEck Bitcoin Trust could start trading as soon as Thursday or Friday on the Cboe BZX Exchange, under the ticker symbol XBTF. This would mark a historic milestone for the crypto industry, as it would be the first time that U.S. investors can access Bitcoin through a regulated and mainstream investment vehicle. The launch of a spot Bitcoin ETF could also boost the demand and liquidity for Bitcoin, as well as increase its adoption and acceptance among institutional and retail investors.

However, the approval of a spot Bitcoin ETF is not a foregone conclusion. The SEC has been notoriously cautious and skeptical about crypto-related products and has rejected or delayed dozens of Bitcoin ETF applications in the past. The main concerns of the regulator are related to the potential for market manipulation, fraud, and lack of investor protection in the crypto space. The SEC has also indicated that it prefers a futures-based Bitcoin ETF over a spot one, as futures markets are more regulated and transparent than spot markets.

Therefore, there is still a possibility that the SEC could deny or postpone the decision on the VanEck Bitcoin Trust or impose strict conditions or limitations on its operation. Moreover, even if the VanEck Bitcoin Trust is approved, it could face competition from other spot Bitcoin ETFs that are waiting for the SEC’s green light, such as those from Valkyrie Investments, NYDIG Asset Management, WisdomTree Investments, and Bitwise Asset Management.

Additionally, there are already several futures-based Bitcoin ETFs that have been launched in the U.S. market since October 2021, such as those from ProShares, Invesco, Valkyrie, and VanEck itself.

Therefore, investors who are interested in gaining exposure to Bitcoin through an ETF should do their due diligence and research before making any decisions. They should also be aware of the risks and volatility involved in investing in crypto assets, as well as the fees and taxes that may apply. A spot Bitcoin ETF may be an attractive and convenient option for some investors, but it is not a guarantee of success or profitability.

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