financial markets

China Creates New Regulatory Authority for Blockchain Products and Digital Payments

October 2019 has seen change come to China regarding blockchain, technology innovation and future plans in the Chinese financial system.

Earlier this month, China’s President Xi Jinping made announcements on blockchain prompting banks to begin investing in the industry. In line with this, it is reported the next direction will be a new digital currency for citizens in China to use.

FinTech is a thriving sector, with banks, healthcare, and major industries all aiming to advance their tech and reach larger audiences. Adoption rates in China are reported to be as high as 87%. Prompting global change and an ongoing struggle to be the best in emerging sectors.

To combat fraud, false advertisement and to ensure companies are held to a high standard, China will also be introducing a new Certification of FinTech Products. China’s central bank, the Peoples Bank of China will be leading this verification system and issuing the certificates. The certification covers the following:

POS mobile terminals
Embedded application software
User front-end software
Security carries
Software chips

Random inspections can be carried out to ensure companies are complying with regulations and continue to be certified as following the rules.

More security and regulation for companies to remain diligent is a boost for investors and users of these products. With a possible Chinese renminbi digital currency being launched, it will be key for safety and a strong set of regulations to be in place, with questions over control and centralization being sure to raise some eyebrows.

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Understanding the Market Structure of Oil and its Correlation with Bitcoin

Market Highlights

The price of crude oil dropped below zero for the first time in history.

Sellers were paying buyers to make deliveries of crude oil in a move to evade the possibility of sustaining storage costs.

Demand for oil has reduced so much that all the storage facilities are at overcapacity with no interested buyers.

The downtrend of oil prices started in January after the Coronavirus outbreak and has only accelerated thereafter.

The low demand for Crude oil is due to various reasons such as the Travel and Aviation ban followed by half of the world currently living under lockdown.

Before understanding the market structure of the oil, we need to understand that the oil market is a highly manipulated market due to the personal and monetary interests of various stakeholders. Understanding human conflicts, geopolitics, and principles of extraction, storage, and demand are the prerequisites of understanding how the oil market works.

Market History of oil

2004-2008: The demand for crude oil increased after a sustained increase in demand from developing countries. This initiated a parabolic movement of oil’s price as the demand outstripped the supply. Further, the OPEC nations were not interested in upgrading their extraction and storage facilities in order to bring the price of oil to an equilibrium.

2008-2009: The price of oil crashed due to a worldwide recession which reduced the demand for oil drastically and forced OPEC nations to take corrective measures.

2010-2011: The price of oil started increasing from 2010 after the Arab spring which increased political instability and caused fear in markets as the majority of the world’s oil reserves were at high risk including Libya, Syria, Iran, Iraq, Egypt, etc. Further, the economic recovery and increase in demand from India and China for oil increase the price of the commodity.

2011-2012: The OPEC nations came to an agreement to extract more oil thereby increasing the supply in order to supplement the world demand and remove the fears of conflict that had spiraled out of control causing fear in the markets.

2014-2015: The USA started the extraction of shale reserves which reduced the price of oil significantly, pushing Venezuela into an economic meltdown coupled with hyperinflation and sanctions. Further, the OPEC started a price war by letting the price of oil fall hoping that the decline in price would make shale reserves extraction unprofitable leading US shale producers to shut down.

2016-2018: The OPEC agrees to cut its production output in a bid to prop up the price. Various OPEC nations were suffering a serious and dangerous downturn with high costs of extractions as compared to US counterparts, due to which they agreed to decrease the supply in order to reach a better equilibrium price.

2018-2019: USA and EU nations imposed sanctions on Iran thereby cutting off its exports and the demand for oil on the international market. Reducing and weakening the demand for oil from countries like India, China, Japan, Germany, etc.

2020-Present: The price of oil started collapsing from the month of January as international flights started to shutdown. With the aviation and traveling industry under restrictions the demand for oil reduced significantly. As the spread of the virus accelerated and nations all around the world went into lockdown with the suspension of domestic travel, the demand for oil saw a sharp decline, and storage facilities around the world found it difficult to store oil with no buyers in the market.

What led to the oil price crash?

1. The increase in inventory at the rate of 6-7 million barrels per week.

2. Cushing hub, where a majority of oil is stored saw its facilities completely filled.

3. Traders who were not able to take the delivery sold it on for the available prices.

4. The fall in price and the fear of May futures expiring on Tuesday ie, April 21 intensified the selling of oil.

5. The drop in price triggered mass liquidations and margin calls on various positions held by financial institutions, traders, etc, driving the price down even more.

6. Liquidation of positions also removes liquidity from the market spreads thereby accelerating the crash with poor liquidity on the books.

The correlation between Bitcoin and oil:

The correlation between Bitcoin and oil has always been to the minimum when compared to the correlation between oil and Equities where the correlation is as high as 80%.

Even though the correlation index between Bitcoin and oil is slow, both of the commodities have a similar market structure, where Bitcoin experienced a parabolic advance in 2017 due to an increase in media attention, due to the ICO rush. After that time, Bitcoin has largely been traveling in a downtrend channel breaking the momentum and rallying due to fundamental time to time.

Even though we know that Bitcoin halving is right around the corner, the technicals are indicating a steep downturn is possible with the RSI trending towards 0, which represents that the price is overbought and will trend downwards. BBands is also tightening and trending in towards a downward momentum. It is highly unlikely that the blockchain market will face an upturn where there is no economic recovery or rally in the world and people are living paycheck to paycheck. Even though Bitcoin halving is a strong fundamental what is happening around the world negates its benefits as Bitcoin is a high-risk asset class and investors are wary of taking any investment decisions when a global recession is right at the doorstep.

Further, it is highly unlikely that money from the equity markets and the oil market will move towards Bitcoin and other cryptocurrencies as the institutions are cutting down risk and taking what all they have. Furthermore, retail investors are also personally affected by the lockdown and allocating resources to Bitcoin and cryptocurrencies ignoring that they would need money in the coming months for survival is highly unlikely.

The analysis provided by the author is purely educational in nature and does not continue any legal, investment, financial, or trade advice. Please do your research before investing or taking any financial decision.

Image via Shutterstock

References:

[1] Institue for Environmental Diplomacy and Security, Basic Principles of Economics and Rising Oil Prices, James M. Jeffords Center, the University of Vermont, available at https://www.uvm.edu/ieds/node/468.

[2] A. Mudgill, What led crude oil prices fall below $0 a barrel, Economic Times, dated 22 April 2020.

[3] B. Pulmer, Oil prices keep plummeting as OPEC starts a price war with the US, Vox, dated 28 November 2014.

[4] T. DiChristopher, Oil Suffers its worst monthly drop in more than two years during ugly October for markets, CNBC, dated 31 October 2018.

[5] L. Elliot, Middle East Crisis may leave world over an Oil Barrel, The Guardian, dated 7 February 2011.

[6] J. Baffes et al, The great plunge in oil prices: Causes, Consequences, and Policy Responses, World Bank Group, dated March 2015, available at http://pubdocs.worldbank.org/en/339801451407117632/PRN01Mar2015OilPrices.pdf.

OpenTrade and WOO X Unite to Offer Tokenized T-Bills to Asian Investors

On September 29, 2023, OpenTrade, a notable platform bridging traditional financial markets with digital asset realms, declared a strategic collaboration with WOO X, enabling its user base to tap into tokenized Treasury Bills (T-Bills) and avail USDC-collateralized loans against liquid assets on a blockchain infrastructure, according to WOO official blog. This initiative is engineered through OpenTrade’s recent unveiling of tokenized T-Bills on Circle Research’s Perimeter Protocol.

The collaboration stems from a rising demand for tokenized T-Bills, driven by the comparatively higher yields from US government bonds against those found in decentralized finance (DeFi). WOO X, through this partnership, aims to fortify its foothold in the Asian region by offering a low-cost switch to tokenized T-Bills for its users. Jack Tan, WOO’s Founder and CEO, emphasized the commitment to furnishing customers with yield products anchored to real-world financial assets, and envisages an array of Real-World Asset (RWA) yield products delivered via the OpenTrade platform.

OpenTrade’s CEO, Dave Sutter, underlined the ambition of paving a “flatter, smarter, more efficient, and more inclusive financial markets” through this venture. The utilization of Circle Research’s Perimeter Protocol is lauded as a fundamental technological underpinning for a secure, scalable, and composable platform conducive for this evolution. OpenTrade emerges as a pivotal conduit linking traditional financial landscapes with the burgeoning digital asset space, heralding a new era of financial ingenuity and inclusivity.

In a concurrent development, WOO X unveiled its successful integration with South Korea’s CODE compliance solutions, epitomizing a strategic endeavor to amplify its presence in Asia, particularly South Korea—known for its voluminous active trader market. A cardinal aspect of CODE compliance entails the verification of user addresses prior to withdrawal, thus broadening the spectrum of WOO offerings accessible to Korean clientele.

Cboe Digital Set to Launch Bitcoin and Ether Futures Trading in January 2024

Cboe Global Markets, Inc. has announced a groundbreaking development in cryptocurrency trading, according to Prnewswire. Beginning January 11, 2024, Cboe Digital will launch margin futures trading for Bitcoin and Ether. This initiative positions Cboe Digital as the first U.S.-regulated crypto native exchange and clearinghouse to offer both spot and leveraged derivatives trading on a single platform, representing a significant advancement in the integration of cryptocurrency into the broader financial market.

The introduction of margin futures trading by Cboe Digital is a strategic move that combines the robustness of traditional financial market infrastructure with the burgeoning field of digital assets. This approach allows traders to engage in futures trading without the need to post full collateral upfront, thus offering greater capital efficiency compared to traditional non-margined futures trading. This margin model not only enhances capital efficiency but also marks an evolutionary step in crypto trading, catering to both institutional and individual investors.

The launch is backed by a coalition of 11 leading firms from both the cryptocurrency and traditional financial sectors, including B2C2, BlockFills, CQG, Cumberland DRW, Jump Trading Group, Marex, StoneX Financial, Talos, tastytrade, Trading Technologies, and Wedbush. These partnerships reflect a strong industry support and a shared vision for advancing secure and transparent trading in digital assets.

John Palmer, President of Cboe Digital, emphasized the milestone this launch represents in building trusted and transparent crypto markets. He highlighted the importance of derivatives in providing liquidity and hedging opportunities in the crypto space. Supporting voices from the industry, including Nicola White of B2C2 and Chris Zuehlke of Cumberland DRW, also stressed the role of Cboe Digital’s initiative in enhancing institutional adoption of cryptocurrencies and maturing the crypto asset class.

Cboe Digital’s expansion into Bitcoin and Ether futures trading complements its existing offerings in the spot crypto market, including Bitcoin, Bitcoin Cash, Ether, Litecoin, and USDC. The platform will provide detailed margin requirements and risk management tools on its website, ensuring a comprehensive and transparent trading experience.

Cboe Global Markets is renowned for delivering market infrastructure and tradable products across multiple asset classes, including equities, derivatives, FX, and digital assets. Cboe Digital operates in compliance with regulatory standards set by the CFTC and is licensed by the New York State Department of Financial Services. Looking ahead, Cboe Digital is exploring expansion into physically delivered products, contingent on regulatory approvals, signaling its commitment to innovation and growth in the digital asset space.

Cboe Digital’s launch of Bitcoin and Ether margin futures is a landmark event that bridges the gap between traditional finance and the evolving world of digital assets. This initiative is set to enhance trading efficiency, liquidity, and accessibility in the cryptocurrency market, marking a new chapter in the integration of digital currencies into the global financial ecosystem.

BlackRock and SEC Discuss iShares Bitcoin Trust Listing on Nasdaq

On November 20, 2023, a critical meeting was held between the United States Securities and Exchange Commission (SEC) and representatives from BlackRock, Inc., and the Nasdaq Stock Market LLC. The meeting’s primary focus was the discussion of the iShares Bitcoin Trust and its potential listing on Nasdaq as a spot Bitcoin exchange-traded fund (ETF).

The SEC’s Division of Trading and Markets hosted the meeting, attended by key personnel including David Shillman, Tom McGowan, Randall Roy, Ray Lombardo, Molly Kim, Edward Cho, Sarah Schandler, and Stacia Sowerby. Representing BlackRock were Rachel Aguirre, Adithya Attawar, Shannon Ghia, Robert Mitchnick, Charles Park, Marisa Rolland, and Ben Tecmire. Additionally, Eun Ah Choi, Jonathan Cayne, Giang Bui, and Ali Doyle represented The NASDAQ Stock Market LLC.

BlackRock’s presentation to the SEC included a detailed exposition of two potential models for the iShares Bitcoin Trust: the “In-Kind Redemption Model” and the “In-Cash Redemption Model.” These models outlined the mechanics of how the ETF could operate, focusing on the redemption process involving market makers, bitcoin custodians, and various exchanges.

The In-Kind Redemption Model entails a process where the ETF issuer instructs the Bitcoin Custodian to release bitcoin to a market maker, who may then unwind the bitcoin position. This model involves various parties, including a U.S. Registered Broker/Dealer, spot crypto exchanges, and a listing exchange.

The In-Cash Redemption Model, on the other hand, involves the ETF issuer trading with the market maker to sell bitcoin for USD. This model includes additional steps involving the Bitcoin Custodian moving cash out of cold storage and the market maker delivering shares to the Transfer Agent via an Authorized Participant.

The SEC’s response to BlackRock’s presentation and proposed models remains unclear, with no information on whether the SEC plans to approve the listing of a spot Bitcoin ETF. The approval of such an ETF would represent a major milestone in the acceptance of cryptocurrency in mainstream financial markets.

This meeting comes amid ongoing reviews by the SEC of various proposals for spot crypto ETFs from several firms, including Fidelity, WisdomTree, Invesco Galaxy, Valkyrie, VanEck, and Bitwise, alongside BlackRock. The push for a spot Bitcoin ETF has seen several delays and denials, creating a sense of anticipation and uncertainty in the crypto and financial markets.

The SEC has also met with executives from Grayscale on the same day to discuss their proposal for a Bitcoin ETF. The meeting with BlackRock and the ongoing reviews indicate the SEC’s active engagement in understanding and potentially integrating cryptocurrencies into regulated financial products.

BlackRock’s application to list a spot Bitcoin ETF on the Nasdaq was initially filed in June 2023. The discussion around Bitcoin ETFs has been fueled by a 2019 video of SEC Chair Gary Gensler, where he criticized the commission’s “inconsistent” approach to Bitcoin products. The approval of a spot Bitcoin ETF by the SEC would be a landmark decision, potentially paving the way for wider acceptance and integration of cryptocurrencies in the mainstream financial sector.

Goldman Sachs Predicts Booming Blockchain Asset Trading in Coming Years

Goldman Sachs, a leading global investment banking firm, has projected a substantial surge in trading volumes of blockchain-based assets in the next one or two years, with significant market growth anticipated in three to five years, according to an interview with Reuters. This forecast, as revealed in a recent Reuters interview with Mathew McDermott, the bank’s global head of digital assets, aligns with the growing interest in digital assets and blockchain technology observed across the financial sector.

Goldman Sachs’ enthusiasm for blockchain extends beyond traditional cryptocurrencies like Bitcoin, which has already seen a 50% rise in value this quarter. McDermott emphasized the firm’s interest in developing digital assets that represent traditional assets such as bonds, marking a shift towards diversifying blockchain applications. This approach reflects a broader trend in the banking sector, where institutions are exploring the use of blockchain for asset trading beyond cryptocurrencies.

The adoption of blockchain technology is expected to revolutionize financial market operations. According to McDermott, blockchain could enhance operational and settlement efficiencies and contribute to the de-risking of financial markets. He suggested that blockchain implementation could lead to quicker and more precise transfers of collateral and liquidity between parties, a significant improvement over current financial market infrastructure.

Despite these optimistic projections, McDermott acknowledged the challenges involved in fully integrating blockchain technology into the majority of financial markets. While there have been pilot projects for issuing blockchain-based versions of bonds, establishing routine issuance and a liquid secondary market remains a work in progress. Goldman Sachs’ survey indicates that 16% of clients expect over 10% of the financial market to be tokenized in the next three to five years.

Goldman Sachs is also focusing on cryptocurrency derivatives trading, a market expected to grow with the potential approval of a Bitcoin ETF by the U.S. securities regulator. This move could attract new institutional investors to the asset class, further fueling the expansion of blockchain-based trading.

Goldman Sachs’ prediction of a significant uptick in blockchain asset trading volumes reflects a transformative shift in the financial markets. With a growing appetite for digital assets and blockchain technology’s potential to streamline operations, the coming years could witness a radical change in how assets are traded globally.

BlackRock's Strategic Shift: Layoffs Amidst Bitcoin ETF Anticipation

The world’s biggest asset management, BlackRock Inc., is now making news for two significant innovations that are a reflection of the strategic modifications it has made in response to the ever-changing financial environment.

BlackRock has just made the announcement that it would be significantly reducing its personnel. roughly three percent of its workforce throughout the globe, which amounts to roughly 600 people, would be impacted by this relocation. This move is reminiscent of a similar step that was made in 2023, which suggests that there will be a trend of yearly modifications to the staff depending on performance. The company has already reduced the number of workers by 500 earlier this year, so this is the second wave of layoffs that they have implemented this year. As part of BlackRock’s larger plan to navigate through the present market issues, the company has decided to lay off employees. This decision reflects the company’s proactive effort to retaining its competitive advantage. These choices will have a significant impact on the company’s finances, including the imposition of a restructuring charge of $91 million during the fourth quarter of 2022. This charge will largely cover severance and pay adjustments for workers who will be impacted by the decision.

BlackRock is presently at the forefront of a substantial development in the bitcoin industry, which is taking place simultaneously. Currently, the company is waiting for the decision that the United States Securities and Exchange Commission (SEC) will make on its application for a spot Bitcoin Exchange-Traded Fund (ETF). It is predicted that this decision will be made by January 10, 2024, and the cryptocurrency world is eagerly anticipating it. As indicated by the latest update filing that BlackRock made with the Nasdaq for its Bitcoin exchange-traded fund (ETF) proposal, BlackRock has been increasing the intensity of its attempts to match with SEC requirements. In addition, the corporation has taken the initiative to seed its Bitcoin exchange-traded fund (ETF) with ten million dollars in cash, demonstrating its faith in a positive conclusion. The SEC has only allowed cryptocurrency exchange-traded funds (ETFs) that are related to futures contracts up to this point, so the approval of this ETF would be a significant step forward. It is anticipated that this event will have substantial repercussions for the cryptocurrency market, which may result in the opening of new doors for both institutional and individual investors alike.

Coinbase's Custodial Role in New Bitcoin Spot ETFs Marks a Crypto Milestone

The U.S. Securities and Exchange Commission (SEC) recently approved eleven spot Bitcoin exchange-traded funds (ETFs), marking a significant milestone in the integration of cryptocurrencies into mainstream financial markets. Of these, eight are in partnership with Coinbase, highlighting the platform’s critical role in this development.

Historical Context and Significance

This decision by the SEC is seen as a watershed moment for the crypto economy, particularly Bitcoin. Coinbase, a major player in the cryptocurrency world, has been appointed the custodian for these newly approved ETFs. The approval of Bitcoin spot ETFs is not only a recognition of Bitcoin’s growing legitimacy as an asset class but also a response to the persistent demand from investors for regulated crypto investment vehicles. Such ETFs offer investors exposure to Bitcoin without the complexities of direct ownership.

Coinbase’s Role and Security Measures

Coinbase’s role as a custodian is crucial, given its long history of securely storing assets for both retail and institutional customers. The company provides robust cybersecurity and legal protections for assets stored in its custody. The approval of these ETFs is expected to attract institutional volume to Bitcoin and potentially other cryptocurrencies, further cementing their place in mainstream finance.

Alesia Haas’s Perspectives

Alesia Haas, CFO of Coinbase, underscores the importance of this development. She notes the increasing adoption of crypto assets in the U.S., with over 52 million Americans owning them. Haas emphasizes that Coinbase’s priority is the security of investors’ investments and highlights their comprehensive approach to cybersecurity and operational safety.

Regulatory and Investor Implications

The approval of Bitcoin spot ETFs is seen as a step forward in the ongoing effort to bring regulatory clarity to the cryptocurrency sector. It’s a move that not only legitimizes the crypto market but also opens it to a broader base of investors who prefer traditional financial products. This development is expected to introduce a significant amount of capital into the crypto market that was previously inaccessible due to regulatory constraints.

Future Prospects and Challenges

While this development is a positive step for the crypto economy, challenges remain, such as the need for continued regulatory clarity and addressing cybersecurity concerns. The approval may also pave the way for the introduction of other crypto-related investment products, further expanding the market’s reach and potential.

In conclusion, the SEC’s approval of Bitcoin spot ETFs, with Coinbase as a key custodian, represents a significant stride in the crypto industry’s journey towards mainstream acceptance and integration into the global financial ecosystem. It highlights the evolving nature of cryptocurrency as an investable asset class and the growing intersection between traditional finance and the digital asset world.

South Korea's Stance on Virtual Currency Investment and ETFs in 2024

South Korea has reasserted its stringent position on virtual currency investments. The country’s top financial regulator, the Financial Services Commission (FSC), has unequivocally stated that it will continue to enforce its policy that restricts financial institutions from launching cryptocurrency exchange-traded funds (ETFs). This stance comes despite the increasing global acceptance of cryptocurrencies and the approval of crypto ETFs in the United States.

The Financial Services Commission has articulated that the decision to uphold the ban is rooted in the need to ensure the stability of financial markets and protect investors. According to local media reports, an official of the FSC highlighted that the approval of spot bitcoin ETFs in the U.S. does not influence Korea’s regulatory approach. The regulator’s firm stance reflects a cautious attitude towards the volatile nature of cryptocurrencies and a commitment to safeguarding the traditional financial system.

South Korea’s existing capital markets act limits the scope of underlying assets for investment contract securities, such as ETFs, to traditional financial investment instruments, currencies, and commodities. Cryptocurrencies, not being recognized as financial assets in South Korea, fall outside the purview of permissible investments for financial institutions. This policy has been in place since 2017 and remains a cornerstone of South Korea’s approach to managing the risks associated with digital currencies.

In addition to the ETF ban, South Korea is also working on comprehensive crypto regulation, which is being developed in two parts. The first part of this regulation, passed last year, is set to come into effect in July 2024. This legislation will establish clear rules regarding the issuance, listing, and delisting of cryptocurrencies. The second part of the regulation is still under construction and aims to further refine the legal framework governing digital assets.

Another significant aspect of South Korea’s regulatory framework is the Virtual Asset User Protection Act, scheduled to be enforced from July 19, 2024. This Act will enforce specific regulations for improved user safety and market stability in the virtual asset sector. Notably, the Financial Services Commission has declared that NFTs (Non-Fungible Tokens) and CBDCs (Central Bank Digital Currencies) are exempt from these regulations.

The recent developments indicate a cautious but evolving approach by South Korean authorities towards cryptocurrency and digital assets. While maintaining strict control over traditional financial institutions’ involvement in crypto, the government is also laying down a foundation for a regulated and secure environment for digital asset transactions.

Bitwise Bitcoin ETF (BITB): 0.20% Management Fee, Pledges 10% Profits for Bitcoin Development

The recent launch of the Bitwise Bitcoin ETF (BITB) marks a significant milestone in the integration of cryptocurrency into mainstream financial markets. On January 11, 2024, Bitwise Asset Management, renowned as the largest crypto index fund manager in the United States, commenced trading of its first spot bitcoin ETF, BITB. This event heralds a new chapter in investment options for U.S. investors, offering an accessible route to investing in bitcoin through a regulated, traditional exchange-traded fund (ETF).

The BITB: A Low-Cost Investment Vehicle

One of the most notable features of the BITB is its management fee structure. Initially set at 0.20%, the fee is among the lowest in the current market for spot bitcoin ETFs. Furthermore, in a move to attract investors, Bitwise has decided to reduce the fee to 0% for the first six months for the initial $1 billion in assets under management. This strategic pricing positions BITB competitively, potentially influencing the broader market of cryptocurrency-based ETFs.

Risks and Considerations

As with any investment, there are risks associated with BITB. The fund is nondiversified, meaning it may hold fewer portfolio securities compared to other products. This could lead to higher volatility in the fund’s value. Additionally, being a new fund, it presents a recency risk with limited historical data for investors to consider.

BITB is not registered under the Investment Company Act of 1940 or subject to regulation under the Commodity Exchange Act of 1936. Therefore, shareholders do not have certain protections typically associated with shares in registered investment companies. Moreover, the value of the ETF is closely tied to the price of bitcoin, which is known for its high volatility. Potential investors should carefully evaluate their ability to withstand significant fluctuations in the value of their investment.

The Bitwise Ecosystem

Bitwise Asset Management has been a pioneering force in the crypto investment space. Over the past six years, the company has developed a diverse range of investment products, including the Bitwise 10 Crypto Index Fund (BITW), the Bitwise Ethereum Strategy ETF (AETH), and the Bitwise Web3 ETF (BWEB). Their products cater to a wide range of investors, from financial advisors to family offices and institutional investors, providing comprehensive access to crypto markets.

Furthermore, Bitwise has pledged to allocate 10% of the profits from BITB to support Bitcoin open-source development. This initiative underscores the company’s commitment to the growth and sustainability of the Bitcoin ecosystem.

The Broader Implications

The launch of BITB is a significant development in the broader context of cryptocurrency acceptance in regulated financial markets. It follows a longstanding debate and anticipation around the approval of spot bitcoin ETFs in the United States. BITB’s entry into the market could pave the way for more cryptocurrency-based investment products, offering traditional investors a more familiar and regulated path to investing in digital assets.