Swiss asset manager Pando Asset has filed an S-1 form with the U.S. Securities and Exchange Commission (SEC) to launch a spot Bitcoin ETF, aiming to list it on the Cboe BZX Exchange with Coinbase as its custodian. This ETF, which would use CME's CF Bitcoin Reference Rate for pricing, adds to Pando's offerings of exchange-traded products tracking cryptocurrency prices on the SIX Swiss Exchange. However, the SEC has not yet approved any spot crypto ETFs, having delayed applications from several major asset management firms including BlackRock, Fidelity, and others.
Recently, the SEC moved applications from Franklin Templeton and Hashdex to a public comment period, indicating a possible acceleration in the review process. Furthermore, recent SEC meetings with Invesco and BlackRock have focused on concerns around the in-kind model and its balance sheet impacts. BlackRock has proposed a solution addressing these concerns, suggesting a modified approach involving cash transfers to resolve balance sheet issues for U.S.-based market makers. This development reflects the ongoing industry efforts to meet regulatory standards for the approval of spot Bitcoin ETFs.
The FTX estate, following its bankruptcy, received court approval to sell trust assets valued at approximately $873 million, including shares in Grayscale and Bitwise investment funds. This decision, as detailed in a Delaware bankruptcy court document, allows FTX to proceed with the sale based on their business judgment. To facilitate this process, the court has extended the role of Galaxy, a crypto investment firm previously appointed to manage FTX's substantial digital asset holdings. The value of these trust assets, primarily comprising shares in various Grayscale funds and a Bitwise crypto index fund, has increased from $744 million (as of October 25) to about $873 million, owing to a narrowing discount of the Grayscale Bitcoin Trust (GBTC) and a rally in cryptocurrency prices. This development comes in the wake of FTX's bankruptcy in November last year, triggered by a CoinDesk report exposing the precarious financial situation of its sister trading firm, Alameda Research.
Crypto custody firm Copper has launched Copper Securities, a new brokerage platform in the United Arab Emirates designed for institutional trading of digital assets. This platform, enhanced by the recent acquisition of UAE-based blockchain brokerage firm Securrency Capital, integrates a suite of blockchain-based financial and custodial services, with plans to add securities financing and payments applications within the next year. Copper Securities will offer access to tokenized securities in over 90 global markets, aiming to streamline traditional market operations using blockchain technology and smart contracts. Copper.co CEO Dmitry Tokarev emphasized that this launch in the UAE represents a strategic move towards transforming capital market infrastructure, promising increased transparency, efficiency, and accessibility for institutional investors.
In the realm of equities, this Thursday morning showcased a mix of market dynamics, even as Wall Street approaches the conclusion of November with its most robust monthly gains in more than a year. Notably, the S&P 500 and Nasdaq are currently on course to record their most outstanding monthly performances since July 2022.
Traders were deeply engrossed in assessing fresh inflation data, which has sparked optimism about the Federal Reserve's potential to commence rate cuts in the forthcoming year. The data disclosed earlier today revealed that the PCE price index, esteemed as the Federal Reserve's favored metric for gauging inflation, exhibited a rise in line with expectations for October, registering a growth of 0.2% MoM and 3.5% YoY. These figures could serve as a reason for the Fed to retain its current interest rate stance before contemplating a reduction in 2024.
Turning our attention to the cryptocurrency domain, Bitcoin appears to be retracing from the upper boundary of a rising wedge pattern, implying that a pullback is in sight towards our downside targets. Our projections anticipate a retreat in prices towards our intraday support level at 36,700. On another note, ETHBTC may have garnered some buying interest and might potentially embark on a 4% increase towards 0.0564.
In other news, reports have emerged regarding a significant buyer, who happens to be the 74th largest holder of BTC, accumulating a substantial 11,270 BTC with a total valuation of $424 million since November 10th. These transactions took place within the price range of $36,000 to $38,000.
Furthermore, MicroStrategy, a prominent technology firm, has recently raised its Bitcoin holdings by 10%, buying $600 million worth of BTC during November at an average price of $36,785. Also, the tech company is contemplating a capital raise of up to $750 million through the issuance of common stock. As of now, MicroStrategy possesses a substantial BTC stash comprising 174,530 BTC, with an average acquisition cost of $30,250.
Lastly, it's worth noting that the world's largest Bitcoin futures ETF, known as $BITO, has garnered a noteworthy $1.5 billion in assets under management (AUM), surpassing the highs achieved in 2021. ProShares, the issuer of $BITO, reports an average daily trading volume of $160 million since its inception, placing it in the top 5% of all U.S. ETFs. The impending approval of a spot ETF is likely to attract heightened institutional interest, given its close correlation to Bitcoin's price movements.
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