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Will Blackrock and Fidelity Win Fight Against SEC on Spot ETF Filing?

By
Paul Ugbede Godwin
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0

The race to launch the first spot Bitcoin exchange-traded fund (ETF) in the US is heating up, as two of the world’s largest asset managers, Blackrock and Fidelity, have recently filed applications with the Securities and Exchange Commission (SEC) to offer such products. However, the regulator has been reluctant to approve any spot ETFs so far, citing concerns over market manipulation, custody, and investor protection. Will Blackrock and Fidelity be able to overcome these hurdles and win the fight with the SEC?

Spot ETF is a type of fund that tracks the price of an underlying asset, such as Bitcoin, and allows investors to buy and sell shares of the fund on a regulated exchange. Unlike futures-based ETFs, which use contracts that expire and settle at a future date, spot ETFs hold the actual asset in custody and reflect its current market value. Spot ETFs are seen as more attractive by some investors, as they avoid the complexities and costs of rolling over futures contracts and offer more direct exposure to the asset.

Blackrock and Fidelity are not the only contenders in the spot ETF race. Several other firms, such as VanEck, WisdomTree, Valkyrie, and NYDIG, have also filed applications with the SEC. However, a spot Bitcoin ETF also poses significant challenges for the SEC, which has to ensure that the fund meets the standards of the Investment Company Act of 1940, which regulates mutual funds and ETFs. The SEC has to be satisfied that the fund has adequate liquidity, diversification, valuation, and custody of its assets, as well as that it can prevent fraud and manipulation in the Bitcoin market.

The SEC has repeatedly rejected or delayed applications for spot Bitcoin ETFs in the past, most notably from the Winklevoss twins in 2018 and 2019. The regulator has also expressed skepticism about the maturity and integrity of the Bitcoin market, stating that it lacks sufficient surveillance and oversight from regulators and self-regulatory organizations.

However, some analysts believe that the tide may be turning in favor of spot Bitcoin ETFs, as the SEC has recently approved several futures-based Bitcoin ETFs, which track the price of Bitcoin through contracts traded on regulated exchanges. These ETFs have attracted billions of dollars in inflows since their launch in October 2021, signaling strong demand from investors for exposure to Bitcoin.

Bitcoin spot ETFs are seen as a more attractive option for investors who want to gain exposure to the cryptocurrency without having to deal with the complexities and risks of buying, storing and securing it themselves. Unlike futures ETFs, which track the price of Bitcoin contracts that expire at a certain date, spot ETFs would track the price of Bitcoin itself, and would hold the underlying asset in custody. This would eliminate the need for investors to pay premiums or fees associated with futures contracts and would also reduce the tracking error between the ETF and the Bitcoin price.

However, Bitcoin spot ETFs also face significant regulatory hurdles, as the SEC has repeatedly expressed concerns about the lack of transparency, liquidity and oversight in the Bitcoin market. The SEC has rejected several applications for Bitcoin spot ETFs in the past, citing issues such as market manipulation, fraud and investor protection. The SEC has also stated that it would require a surveillance-sharing agreement between the Bitcoin exchanges and the ETF providers.

The SEC has also stated that it would require a surveillance-sharing agreement between the Bitcoin exchanges and the ETF providers, which is not easy to achieve given the decentralized and anonymous nature of the cryptocurrency market. This agreement would ensure that the ETF providers have access to information about the trading activity and price movements of Bitcoin on various platforms, and that they can detect and prevent any fraudulent or manipulative behavior that could affect the ETF’s value.

Why does the SEC want a Surveillance-Sharing Agreement

The SEC’s main concern is to protect investors from potential risks associated with investing in Bitcoin ETFs, such as market manipulation, insider trading, or cyberattacks. The SEC believes that a surveillance-sharing agreement would help to monitor and enforce compliance with the federal securities laws and regulations, and to ensure fair and orderly markets.

According to the SEC, a surveillance-sharing agreement would enable the ETF providers to:

Identify and report any suspicious or illegal trading activity on the Bitcoin exchanges, such as wash trading, spoofing, or front-running.

Verify the accuracy and reliability of the Bitcoin price data used to calculate the NAV (net asset value) of the ETF.

Coordinate with other regulators and law enforcement agencies to investigate and prosecute any violations of securities laws or market rules.

Respond quickly and effectively to any market disruptions or emergencies that could affect the ETF’s operations or liquidity.

One of the main challenges of establishing a surveillance-sharing agreement is that it would require a high level of cooperation and coordination among multiple parties, including the Bitcoin exchanges, the ETF providers, the SEC, and other regulators. This is not easy to achieve given the decentralized and anonymous nature of the cryptocurrency market, which operates across different jurisdictions and legal frameworks.

Some of the Bitcoin exchanges may be reluctant or unable to share their data with the ETF providers or the SEC, due to privacy, security, or technical reasons. Some of them may not have adequate systems or procedures in place to collect, store, and transmit their data in a timely and accurate manner. Some of them may not be subject to any regulatory oversight or accountability, which could raise questions about their legitimacy and trustworthiness.

On the other hand, a surveillance-sharing agreement could also bring some benefits for both the Bitcoin exchanges and the ETF providers. For example:

It could enhance the transparency and credibility of the Bitcoin market, which could attract more investors and liquidity.

It could reduce the volatility and divergence of Bitcoin prices across different platforms, which could improve price discovery and efficiency.

It could foster a more collaborative and constructive relationship among the market participants, which could facilitate innovation and growth.

The SEC’s requirement for a surveillance-sharing agreement is one of the major hurdles that has prevented any Bitcoin ETF from being approved in the US so far. However, it is not impossible to overcome. In fact, some progress has been made in recent years.

For instance, some of the Bitcoin exchanges have joined forces to form self-regulatory organizations (SROs), such as Crypto Rating Council (CRC) or Virtual Commodity Association (VCA), which aim to establish common standards and best practices for data sharing, compliance, security, and governance. Some of them have also partnered with third-party data providers or analytics firms, such as CryptoCompare or Chainalysis, which can offer independent verification and validation of their data.

Leadership Tussle Amongst The Nigerian Armed Forces And My Conversations With a Retired Senior Military Officer.

By
Stanley Alieke
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0

There recently have been internal issues amongst the Nigeria armed forces since the president made the recent appointment, appointing new leadership.

The president in his wisdom bypassed most senior ranks and appointed leaders from ranks below their seniors and by military tradition as I was made to understand, when a junior rank is appointed over the seniors, all the seniors are expected to voluntarily retire since the seniors cannot take orders from the junior.

Well, most of the senior officers who are expected to voluntarily retire have refused to retire; the Nigerian army even made a publication insisting that Monday, the 3rd of July 2023  is the last day every affected senior officer is to submit his voluntary letter of resignation.

This got me thinking of why a senior respected officer up to the rank of General in the army will wait to be embarrassed or dragged out publicly before he would voluntarily retire as expected. I am privileged to have a senior friend who is a retired major general in the Nigerian army and I had this conversation with him over the weekend. I asked him, why will senior officers refuse to voluntarily retire as expected and be waiting to be embarrassed out of office?.

I told him that I am guessing that maybe it was because of money, the senior officers could be waiting to get more monetary benefits before they exit the office. He quickly corrected that impression that I had by telling me that their refusal to voluntarily retire is never because of money and that the application to retire voluntarily triggers the whole process of the collection of monetary benefits. He said that It’s just the “naija” in us and greed that makes some senior officers want to remain in their seats even when they are expected to voluntarily retire.

He also told me that issues like these of senior officers refusing to voluntarily retire are not that bad amongst the armed forces; in his words; “It is really not as bad in the Armed Forces as it is almost impossible to refuse posting or retirement.  Many effective checks against such are in place if reported. This includes denial of access to the facility or office. Paraphernalia of office will be taken away, arrest and prosecution by court-martial etc. In fact You’ll discover that before all these your subordinates will no longer take instructions from you for the fear of mutiny and its consequences is the beginning of wisdom”.

I also asked him if this is how it’s done in other parts of the world, that the president can appoint juniors to head the military bypassing the seniors that are still in active service because it is expected that the president in appointing heads of the military should appoint from the most senior ranks  to avoid issues like this; he responded thus;

“Well, the C-in-C in his wisdom has the right to appoint whosoever he wants as the head of the Nation’s military. However, his decision is subject to guidelines as stipulated in the books. This is in line with best practices. However,  because of the complexity of our country, issues like ethnicity, religious and political considerations and quota system etc have cropped into the selection process. In other climes, only merit, seniority, strategic national interest, performance and to an extent politics among others play a vital role”.

I wish the newly appointed service Chiefs well and I hope that Nigeria will experience peace and security under their leadership. I also wish affected senior officers a happy voluntary retirement.

Think positive. Be positive. Put in more effort. You will win the FUTURE

By
Ndubuisi Ekekwe
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0

If you dislike your teacher, you will likely struggle in that class. If you hate your school, you will not have the energy to give your best right there. And if you hate what you do, you will remain unsettled, and will not offer the best doing it. And if you hate your country, most times, your mind will not be open to see the “good” in it.

Young People in Nigeria, the message is to overcome despair with optimism, and in that construct see why the billionaires are getting richer, and startups minting $millionaires, despite all the challenges.

Tomorrow is a promise and you can win it. Live positively! The sounds of crickets will come through. The happy birds will break. And the future will turn out GREAT provided you can focus on doing PRODUCTIVE things, one step at a time.

People will tell you that you have no connections. Those things do not matter: excellence will connect you to any level.  You just need to work hard to make people know what you do well. Over time, opportunities will break. The day they asked me to come to Harvard because of an article I wrote, I could not believe it. I did not know that someone in the finest business temple was reading me. It was the same connecting into Elumelu, Bill Gates, etc worlds; people just discover you! Simply, your excellence will make way. Think positive. Be positive. Put in more effort. You will win the FUTURE.

I have put some things you can do to improve your webinality (web + personality) here. Do them and keep improving with sheer optimism.

Build Your Webinality And Unlock Value

Solving Challenges Faced by Green Africa Airways

By
Mutiu Iyanda
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0

In today’s highly competitive airline industry, customer satisfaction is crucial for the success and growth of any airline. Green Africa Airways, like any other airline, faces challenges that affect its customers’ experience, such as frequent rescheduling, flight cancellations, and technical glitches on their website. To address these issues and improve customer satisfaction, after analysing recent complaints on digital platforms, our analyst notes that the airline can adopt a strategic framework that focuses on service excellence and customer-centricity.

Implementing a Service Recovery Strategy

Green Africa Airways should develop a comprehensive service recovery strategy to address issues related to rescheduling and flight cancellations. This involves empowering frontline staff to make quick and effective decisions to resolve customer concerns. By proactively communicating changes, offering alternative travel options, and providing compensation or incentives for inconveniences caused, the airline can rebuild trust and enhance customer satisfaction.

Enhancing Operational Efficiency

To minimize rescheduling and cancellations, Green Africa Airways must prioritize operational efficiency. This entails investing in robust maintenance and inspection processes, ensuring adequate fleet availability, and employing proactive measures to address potential issues. By conducting regular audits and adhering to industry best practices, the airline can minimize disruptions and maintain a reliable flight schedule.

Improving Website Performance and Customer Support

Green Africa Airways needs to address the technical glitches on its website promptly. Enhancements to the website infrastructure, usability, and security can significantly improve the online booking experience. Additionally, the airline should provide dedicated customer support channels, such as a responsive helpline or live chat, to assist customers facing technical difficulties. By promptly resolving these issues and providing prompt assistance, the airline can alleviate customer frustration and build a positive brand image.

Embracing Technology and Innovation

To stay ahead in a digital era, Green Africa Airways should embrace technological advancements to enhance customer experiences. This includes leveraging data analytics to anticipate customer needs and preferences, personalizing services, and providing proactive notifications regarding flight updates. Implementing mobile apps, self-service kiosks, and seamless online check-in processes can streamline operations and offer convenience to customers, further enhancing their satisfaction.

Prioritizing a Customer-Centric Culture

Creating a customer-centric culture is vital for Green Africa Airways’ long-term success. This involves fostering a company-wide mindset that prioritizes customer satisfaction at every touchpoint. The airline should invest in comprehensive training programs to empower employees to deliver exceptional service. Encouraging feedback from customers and regularly measuring customer satisfaction metrics can help identify areas for improvement and drive continuous enhancements.

By implementing these strategies, Green Africa Airways can enhance customer satisfaction, rebuild trust, and position itself as a reliable and customer-friendly airline in Nigeria. Ultimately, this commitment to excellence will contribute to long-term success and growth in the highly competitive aviation industry.

Twitter Refusing to Pay Google Cloud Bill – Report Shows

By
Paul Ugbede Godwin
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0

A recent report by The Wall Street Journal has revealed that Twitter is in a dispute with Google over its cloud computing bill, which amounts to hundreds of millions of dollars per year. According to the report, Twitter is refusing to pay the full amount that Google is charging, claiming that the service is unreliable and overpriced.

The report cites anonymous sources familiar with the matter, who say that Twitter has been unhappy with Google Cloud Platform (GCP) since it migrated most of its infrastructure from Amazon Web Services (AWS) in 2018. The sources say that Twitter has experienced frequent outages, slow performance, and security issues on GCP, and that it believes Google is charging too much for the service.

Twitter is reportedly seeking to renegotiate its contract with Google, which expired in June 2023, or to switch back to AWS or another cloud provider. However, Google is not willing to lower its prices or offer any concessions and is threatening to take legal action if Twitter does not pay its bill. Just yesterday, Twitter users experienced a rate limit error while trying to navigate through the bird app, with Elon Musk tweeting about the glitch as mere systemic push on curtailing information scalping on the platform which many presume as a shift to make users subscribe on twitter blue subscription.

Sources told Bloomberg that Google had initially struggled to communicate with Musk to discuss the unpaid bills and had tried to reach him by contacting staff at SpaceX instead. Yaccarino, who became CEO of the company in early June, helped to restore the relationship and held talks with Google Cloud CEO Thomas Kurian, a person familiar with the matter told Bloomberg. They said that Musk was supportive of the changed relationship.

The report also claims that Twitter’s decision to ban former President Donald Trump from its platform in January has added to the tension between the two companies, as Google was unhappy with Twitter’s handling of the situation and its impact on free speech.

The companies are also negotiating a broader partnership that could include Google’s advertising spending on Twitter and its use of Twitter’s API, the person added. Twitter typically pays between $200 million and $300 million a year for Cloud services from Google, sources told Bloomberg.

Google did not immediately respond to Insider’s request for comment, while Twitter replied with its standard automatic response, which did not address Insider’s query. Since Musk bought Twitter in October, he’s claimed that the social-media company had been on the path to bankruptcy and has drastically pulled back on spending. He chopped Twitter’s workforce in half the week after he took charge and has been incrementally laying off other staff ever since.

Neither Twitter nor Google has commented publicly on the report, but both companies have acknowledged that they have a partnership on cloud computing. In a statement to The Wall Street Journal, a Twitter spokesperson said: “We have a multi-year partnership with Google Cloud and are happy with the relationship and the results we’ve seen.” A Google spokesperson said: “We’re proud to work with Twitter and look forward to continuing our partnership.”

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