2024-01-11 04:08

SINGAPORE/LONDON, Jan 11 (Reuters) - Bitcoin held steady on Thursday around its highest level since March 2022 after U.S. regulators approved the first U.S.-listed exchange traded funds (ETFs) to track the cryptocurrency, in a landmark move that could broaden its appeal to investors. The Securities and Exchange Commission (SEC) said on Wednesday it approved 11 applications, including from BlackRock (BLK.N), Ark Investments/21Shares (ABTC.S), Fidelity, Invesco (IVZ.N) and VanEck. Three of the ETFs, including BlackRock's, (IBIT.O) were trading by 0930 GMT Thursday, with more expected to begin later in the day Bitcoin was last trading around $46,250 up 0.6% on the day and holding on to gains it made this week in anticipation of the approval. The world's largest cryptocurrency has risen nearly 9% so far this year and hit $47,915 on Tuesday, its highest since March 2022. It more than doubled in price last year, something of a recovery after a turbulent 2022 for the crypto industry when several major companies collapsed, most notably trading venue FTX. "At its core, a spot Bitcoin ETF simply provides standardised access to the digital asset as an investment, without altering Bitcoin's core proposition," said Marion Laboure, senior strategist at Deutsche Bank Research. "Only time will tell if greater adoption will lead to more transformational outcomes for the crypto ecosystem and financial system. For now, the ETF approval opens a new chapter for bitcoin prices, though volatile conditions are likely to persist." Spot bitcoin ETFs were already available in other markets including in Canada and Europe, but have failed to attract large investor interest. Industry participants though were optimistic that the new U.S.-listed products would drive greater demand for bitcoin. Retail and institutional investors "no longer need to rely on futures trading or self custody to have exposure to Bitcoin, and can use a traditional brokerage account," said Nick Ruck, COO of ContentFi Labs, a blockchain firm focused on IP licensing. Bitcoin's supply is fixed so if the ETFs need more to meet demand then they will have to buy in the market, he said. The industry's focus is now turning to the second largest cryptocurrency, ether which underpins the ethereum blockchain network. BlackRock filed for a spot ethereum ETF in November 2023. Ether's price rose as much as 4.4% on Thursday to $2,638 its highest since May 2022. “Now that we’ve had confirmation of what was obviously already a highly-anticipated bitcoin announcement yesterday, the market’s now quickly moving on to ETH, saying well if bitcoin is done, then it’s now very highly likely that the ETH one will get done as well,” said Geoff Kendrick, head of digital asset research at Standard Chartered. https://www.reuters.com/technology/bitcoin-holds-firm-after-regulators-approve-etfs-2024-01-11/

2024-01-11 02:48

MUMBAI, Jan 11 (Reuters) - The Indian rupee, on Thursday, will be looking to build on recent momentum in the lead-up to U.S. inflation data that will hold cues on when the Federal Reserve will kick off rate cuts. Non-deliverable forwards indicate the rupee will have a flat to slightly higher opening, compared with its close of 83.0350 in the previous session. The rupee is on a six-day winning run and reached a near one-month-high late in Wednesday's session. "For me, what happened late yesterday is notable. You can say that, after a long time, there is momentum on one side," a forex trader at a bank said. "Today's session is important. Let's see if there is appetite to push (USD/INR) lower before the U.S. inflation number, or maybe there will be more inflows." The U.S. inflation update is expected to show headline consumer prices rose 0.2% month-on-month in December, while the core measure increased 0.3%. On a year-on-year basis, core prices are estimated to have increased by 3.8%, compared to a 4% rise in November, providing more evidence of easing inflation. Banking on this, investors have priced in a series of Federal Reserve rate cuts this year . The only uncertainty is the timing of the first one, with futures pricing in a high probability of a kick-off in March, although some economists think it will be in May. "The latest decent U.S. job figures suggest there's no need for an imminent reduction and it's one of the reasons why we think we'll be waiting until May," ING Bank said in a note. The dollar was struggling before the data. The dollar index was down and Asian currencies were up 0.1% to 0.4%. KEY INDICATORS: ** One-month non-deliverable rupee forward at 83.10; onshore one-month forward premium at 8.75 paisa ** Dollar index down at 102.25 ** Brent crude futures up 0.3% at $77 per barrel ** Ten-year U.S. note yield at 4.03% ** As per NSDL data, foreign investors sold a net $64.6 million worth of Indian shares on Jan. 9 ** NSDL data shows foreign investors bought a net $173.4 million worth of Indian bonds on Jan. 9 https://www.reuters.com/markets/currencies/rupee-looks-keep-momentum-heading-into-us-inflation-data-2024-01-11/

2024-01-10 23:59

Jan 10 (Reuters) - The U.N. Security Council on Wednesday demanded Yemen's Houthis immediately end attacks on ships in the Red Sea and cautioned against escalating tensions while implicitly endorsing a U.S.-led task force that has been defending vessels. The demand came in a Security Council resolution that also called on the Houthis to release the Galaxy Leader, a Japanese-operated vehicle carrier linked to an Israeli businessman that the group commandeered on Nov. 19, and its 25-person crew. Eleven members voted for the measure demanding the Houthis "immediately cease all attacks, which impede global commerce and navigational rights and freedoms as well as regional peace." Four members, including veto-wielding Russia and China, abstained. None voted against. The key provision of the resolution, sponsored by the U.S. and Japan, noted the right of U.N. member states, in accordance with international law, "to defend their vessels from attack, including those that undermine navigational rights and freedoms." The provision amounted to an implicit endorsement of Operation Prosperity Guardian, a U.S.-led multinational naval task force that has been defending commercial ships in the Red Sea and Gulf of Aden from Houthi missile and drone attacks. "The threat to navigational rights and freedoms in the Red Sea is a global challenge that necessitates a global response," U.S. Ambassador Linda Thomas-Greenfield said in urging the council to approve the resolution. The Houthis, an Iran-aligned group that seized much of Yemen in a civil war, have vowed to attack ships linked to Israel or bound for Israeli ports to show support for Hamas Islamists battling the Israeli offensive in Gaza. However, many of the targeted ships have had no links to Israel. The U.S. accuses Iran of providing critical support for the Houthi attacks, including advanced missiles and drones, in violation of U.N. Security Council resolutions. Tehran denies the allegation. The Houthi spokesman in Yemen, Mohammed Abdul Salam, dismissed the UN resolution as a "political game" and said the U.S. was the one violating international law. The council voted after rejecting amendments proposed by Russia that would have stripped out the implicit endorsement of the U.S.-led task force and included the war in Gaza among the "root causes" of the Houthi strikes. Russian Ambassador Vassily Nebenzia questioned the legitimacy of the task force and said the resolution as drafted was "an open-ended blessing of it." The Houthi attacks have disrupted maritime commerce, prompting some shipping lines to divert vessels from the Red Sea to longer routes, threatening to increase energy and food prices. In the latest strikes, Washington said U.S. and British warships on Tuesday shot down 21 drones and missiles fired by the Houthis at southern Red Sea shipping lanes in what London called the largest such attack in the area. U.S. Central Command said there have been 26 Houthi strikes on shipping since the Houthis seized the Galaxy Leader. https://www.reuters.com/world/middle-east/un-security-council-demands-houthis-stop-red-sea-attacks-2024-01-10/

2024-01-10 23:58

WASHINGTON, Jan 10 (Reuters) - The Republican-led U.S. House of Representatives Financial Services Committee on Wednesday sent a letter to the Securities and Exchange Commission, seeking a briefing on a fake post on the SEC's X social media account a day earlier. WHY IT IS IMPORTANT The U.S. securities regulator said someone briefly accessed its X, formerly called Twitter, account on Tuesday and posted a fake message saying it had approved exchange traded funds (ETF) for bitcoin, a move eagerly awaited by the crypto industry. The SEC eventually on Wednesday approved the first U.S.-listed ETFs to track bitcoin. KEY QUOTES "To better understand how this breach occurred and how the SEC will ensure it cannot happen again, please provide a briefing to Committee staff no later than January 17, 2024," the panel said in its letter to SEC Chair Gary Gensler on Wednesday. X said on Tuesday that the SEC's account was compromised and did not have two-factor authentication enabled at that time. The social media site also said the hack was not due to any breach of X's systems, citing a preliminary investigation. "This failure is unacceptable, and it is disturbing that your agency could not even meet the standard you require of private industry," the letter on Wednesday added. CONTEXT The unauthorized post said the SEC had granted approval for bitcoin ETFs on all registered national securities exchanges and included a picture purporting to quote Gensler. The price of bitcoin rose after the post. U.S. authorities including the Federal Bureau of Investigation were probing the fake post. The SEC quickly disavowed and deleted the post and X later said the account was compromised because of an "unidentified individual" obtaining control of a phone number. https://www.reuters.com/technology/us-congressional-panel-seeks-briefing-sec-fake-post-bitcoin-etfs-2024-01-10/

2024-01-10 23:01

LONDON, Jan 10 (Reuters) - The tin market's fortunes remain beholden to Myanmar's United Wa State Army, which controls one of the world's largest mines. The Wa State, the largest of the country's ethnic groups, ordered the suspension of all mining and processing operations in the autonomous region at the start of August for an extensive audit. That ban has been lifted with effect from Jan. 4 for most mining. The major exception is the Man Maw mine, which accounts for almost all tin production in a region that is the world's third largest producer and the dominant supplier to China's smelters. The impact of the suspension has so far been muted. It was well flagged, allowing Chinese players to stock up on ore and metal, and the loss of supply coincided with a downturn in global demand. The London Metal Exchange (LME) three-month tin price remains locked in a $23,000-25,000 per metric ton range, last trading at $24,220. However, with demand from the all-important soldering sector showing signs of picking up, the market needs Man Maw back up and running sooner rather than later. SLOW PROGRESS The Wa State leadership has allowed Man Maw operators to process surface stocks of tin ore since September, according to the International Tin Association (ITA), which has been monitoring developments in this opaque part of the global supply chain. The Wa State Mineral Industry Administration held a meeting with Man Maw operators on Dec. 4, resulting in the submission of a mine management proposal to the Wa State Central Committee (EPC) for further review. New rules reaffirm that all mining rights belong to the EPC and require investors to apply for a three-year exploration permit before applying for a full mining licence. The EPC's decision on Man Maw is pending, according to the ITA. The Association noted "optimistic forecasts" that full mining will be allowed to resume after the Chinese New Year, but said it may take time to re-mobilise the workforce after six months of suspension. In the interim, surface stocks "are now reported to be mostly exhausted," the ITA said. CHINA TURNS TO METAL IMPORTS China's imports of tin ore from Myanmar have appreciably slowed after the August suspension. Flows of raw material over the border dropped in September before picking up again in October and November, likely reflecting the resumed processing of above-ground stocks. Imports over the September-November period totalled 32,000 tons, compared with 65,000 tons in the prior three months, when operators were rushing to beat the Aug. 1 deadline. Chinese smelters have turned to other suppliers such as Bolivia. Imports of ore and concentrate from the South American country nearly tripled to 8,550 tons in the first 11 months of 2023 from 2,900 in the year-earlier period. Chinese production of refined tin has so far held up well. Output in December was up 4.5% on December 2022, while full year production of 168,938 tons was 1.8% higher than 2022, according to local data provider Shanghai Metal Market. However, it is noticeable that Chinese stocks of refined metal have been falling and imports rising, suggesting domestic output is not matching demand. Inventory registered with the Shanghai Futures Exchange has fallen from a May 2023 high of 9,673 tons to a current 6,402. November's import tally of 5,350 tons was the highest monthly count since May 2022 and cumulative imports of 28,500 tons were up 2.7% on the same period of 2022, when refined tin imports reached their highest level since 2012. DEMAND RECOVERY The Western market has been well supplied in recent months and can afford to lose those units to China. LME stocks of tin more than doubled to 7,700 tons and physical premiums slid over the course of last year. Demand from the electronic goods sector, which accounts for around half of all tin demand in the form of circuit-board solder, has been particularly weak. Sales of semiconductors, a useful proxy for tin solder demand, likely fell by 9.4% in 2023, according to the latest forecast from industry body World Semiconductor Trade Statistics. However, it expects "a robust recovery" in 2024, anticipating year-on-year growth of 13.1% led by the Americas and Asia-Pacific regions. How well the tin market can handle that sort of demand rebound will depend in large part on how long it takes the Wa State leadership to approve the full return of the Man Maw tin mine. The opinions expressed here are those of the author, a columnist for Reuters. https://www.reuters.com/markets/commodities/myanmars-wa-state-army-keeps-global-tin-market-guessing-2024-01-10/

2024-01-10 22:31

Jan 10 (Reuters) - The U.S. Securities and Exchange Commission (SEC) on Wednesday approved the first U.S. exchange-traded fund (ETF) that tracks the price of bitcoin, in a major victory for the digital asset industry which has been trying for a decade to launch such a product Here are key events in the journey to approval: 2008: "Satoshi Nakamoto" introduces the concept of bitcoin 2010: The first retail transaction takes place when a user pays 10,000 bitcoin for two Papa John's pizzas 2013: As bitcoin's popularity grows, Cameron and Tyler Winklevoss, co-founders of crypto exchange Gemini, file their first application with the SEC to create a spot bitcoin ETF. Grayscale Investments launches the Bitcoin Investment Trust, an open-ended private bitcoin trust. 2016: The Winklevoss brothers adjust their application numerous times, such as the exchange on which the product would be traded. They also file amendments naming State Street as administrator. Grayscale files with the SEC to convert its bitcoin trust into a spot bitcoin ETF. 2017: The SEC rejects the Winklevoss application on the grounds bitcoin markets where not mature enough. Grayscale withdraws its first attempt to convert its trust into an ETF, saying the regulatory environment was not developed enough. 2018: The SEC rejects the Winklevoss twins' second application to launch a spot bitcoin ETF, saying cryptocurrency exchanges do not have the necessary controls to prevent manipulation. 2020: Grayscale transforms its trust into an SEC-reporting entity, and its shares begin trading on the "pink sheets." Although not an ETF, it is the first publicly traded bitcoin fund in the U.S. 2021: The first ever spot bitcoin ETF launches in Canada. Gary Gensler replaces Jay Clayton as SEC Chair in April. In October, the SEC approves the ProShares Bitcoin Trust listed on the Chicago Mercantile Exchange (CME), noting the CME has a satisfactory mechanism for surveilling abuse in the futures market. It is the first U.S.-listed futures-based bitcoin ETF, accumulating $1 billion in assets within its first days of trading - faster than any other ETF. Also in October, Grayscale again submits an application to the SEC to convert its trust into a spot bitcoin ETF. 2022: The SEC rejects several applications from would-be spot bitcoin ETF issuers, including SkyBridge, Fidelity and Bitwise. The SEC also rejects Grayscale's application, prompting the company to sue the agency. Amid crashing crypto prices, multiple crypto companies file for bankruptcy, including Three Arrows Capital, Celsius Network and FTX, whose founder Sam Bankman-Fried is also charged with fraud. 2023: May: Cathie Woods' ARK Investments files for a spot bitcoin ETF, giving the SEC a maximum of 240 days to approve or reject the application. June: BlackRock (BLK.N) files a spot bitcoin ETF application with the SEC, raising industry hopes the agency may approve the product and sending the price of bitcoin to a one-year high. A flurry of other issuers, including Fidelity and Invesco, file bitcoin ETF applications in the subsequent weeks and months. August: A federal appeals court in Washington D.C. rules in favor of Grayscale, saying the SEC did not justify why it had rejected its proposal. Europe's first spot bitcoin ETF begins trading on the Euronext Amsterdam stock exchange. October: The SEC opts not to appeal the court's ruling in the Grayscale case and is required to reexamine the application. 2024: Jan. 10: The SEC approves 11 proposals from issuers including BlackRock, Fidelity and VanEck, among others, to launch spot bitcoin ETFs. https://www.reuters.com/technology/decade-long-journey-us-spot-bitcoin-etf-2024-01-10/