2023-10-31 06:28

Copyrighted Image by: Reuters In recent developments, the United States Court of Appeals for the D.C. Circuit has mandated the Securities and Exchange Commission (SEC) to reevaluate Grayscale Investments' application to convert its Bitcoin trust into a spot exchange-traded fund (ETF). The court ruled the SEC's initial rejection as "arbitrary and capricious", marking a significant victory for Grayscale in its legal battle against the regulatory body. The lawsuit followed consistent rejections by the SEC of spot Bitcoin ETF applications citing market manipulation concerns. This practice has been maintained under current SEC Chair, Gary Gensler, sparking discussions around his past and current views on Bitcoin products. Gensler's criticism of the SEC's inconsistent approach towards Bitcoin ETFs and futures, voiced during a fireside chat at the 2019 MIT Bitcoin Expo, recently resurfaced on social media platforms. The court ruling acknowledged similarities between Grayscale's proposal and previously approved Bitcoin futures ETFs. This could set a precedent for other firms seeking approval for similar products. https://www.investing.com/news/cryptocurrency-news/sec-to-reevaluate-grayscales-bitcoin-etf-application-following-court-ruling-93CH-3214648

2023-10-31 06:13

The USD/JPY currency pair maintained its position above the 149.00 marker during the early Asian trading hours on Tuesday, registering a daily change of 0.04%. This stability comes in light of speculation around the Bank of Japan's (BoJ) potential alterations to its Yield Curve Control (YCC) approach, as suggested by a Nikkei report, which has lent support to the Japanese Yen against the US Dollar. Monday saw a sharp dip in the USD/JPY post-Asia close, influenced by Nikkei headlines ahead of the BoJ's decision. These reports suggested increased yield flexibility, which strengthened the Yen and caused the USD/JPY to fall from 149.75 to lows of 148.81; it later stabilized near 149.05 at NY close. Market participants are keenly awaiting comments from Governor Kazuo Ueda on a flexible cap for the 10-year Japanese Government Bond (JGB) yield, alongside unlimited fixed-rate purchases by BoJ. Speculations suggest that the BoJ might maintain a 1% cap but allow +/-0.5pp fluctuations, fulfilling some conditions set out in the Nikkei piece and renewing focus on the outcome. On Monday, Federal Reserve (Fed) Chair Jerome Powell confirmed a stable interest rate for November, with possible hikes contingent upon high economic growth and labor shortage conditions. Hawkish comments from Fed officials might limit further US Dollar depreciation and support the USD/JPY pair. The forthcoming BoJ monetary policy meeting, press conference, and Fed interest rate decision are pivotal events that could trigger market volatility. Additionally, economic data such as jobless rate, retail sales, industrial production figures, and housing start figures due to precede the decision were highlighted. Despite low expectations from sell-side analysts, option expiries today might influence spot moves. The breach of the 20-day EMA exposes the 50-day EMA as the next support. https://www.investing.com/news/forex-news/usdjpy-steadies-above-14900-amid-boj-yield-cap-speculation-93CH-3214623

2023-10-31 05:47

Copyrighted Image by: Reuters. In the face of a depreciating rouble, Russia has imposed stringent restrictions on western companies looking to sell their Russian assets and repatriate the proceeds in foreign currencies. The rouble crossed Rbs100 to the dollar this year, prompting the Kremlin to take action to support its currency. Kremlin spokesperson Dmitry Peskov stressed that creating favorable conditions for its currency was a government's duty and that the rouble had absolute priority. In response to the rouble's decline in July, authorities presented western companies with two options. They could either transfer funds into a restricted type "C" account at a Russian bank or wire the money abroad in several installments due to a $20 million per day transfer limit. Alternatively, they could instantly convert their assets into roubles into a regular Russian bank account. Further measures have been implemented to bolster the struggling currency. Russia's central bank increased its interest rate four times since August, reaching 15%. Additionally, President Putin ordered 43 companies to sell portions of their foreign currency revenue domestically. However, Central Bank Governor Elvira Nabiullina publicly disagreed with this move, considering its impact insignificant and short-lived. The constraints on currency repatriation have complicated deal approvals for foreign companies in Russia. This includes a "voluntary" contribution to the Russian budget that has recently increased from 10% to 15% of the transaction amount. Additionally, firms are required to sell at a minimum of 50% discount to the asset's fair value. An investment banker noted that due to the $20 million per day transfer limit and the commission's seven-day deadline, it was impossible for the seller to receive all proceeds from the deal. https://www.investing.com/news/forex-news/roublefocused-measures-complicate-russias-asset-selloffs-for-western-firms-93CH-3214621

2023-10-31 05:29

Copyrighted Image by: Reuters. Investing.com-- Gold prices fell below key levels on Tuesday as easing concerns over the Israel-Hamas war sapped safe haven demand, while anticipation of a Federal Reserve meeting kept traders biased towards the dollar. While the Israel-Hamas war still showed no signs of de-escalation, traders began pricing in a lower risk premium from the conflict, given that no other Arab powers appeared to have joined in so far. This saw gold relinquish some gains made earlier in October, during the onset of the war. Strength in the dollar, before the Fed meeting, also weighed on the yellow metal, as traders pivoted into the greenback to position for any hawkish surprises from the meeting. Spot gold fell 0.2% to $1,992.88 an ounce, while gold futures expiring in December sank 0.2% to $2,002 an ounce by 01:00 ET (05:00 GMT). Fed meeting squarely in focus, gold set for strong October The yellow metal traded lower this week as market focus turned largely towards a Fed decision on interest rates this Wednesday. While the central bank is expected to keep its benchmark rate unchanged, it is also expected to reiterate its higher-for-longer stance on rates, given recent signs of sticky U.S. inflation and resilience in the economy. Such a scenario is expected to limit any major upside for gold, given that higher rates push up the opportunity cost of buying bullion. This trend weighed heavily on gold over the past year, and kept any trysts with the $2,000 an ounce level largely limited. Still, safe haven demand on the back of the Israel-Hamas war saw gold prices trading up between 6% and 8% for October- their best monthly gain since March. The yellow metal was also up nearly 10% so far in 2023. Copper prices sink as China PMIs disappoint Among industrial metals, copper prices fell on Tuesday after disappointing economic data from top importer China. Copper futures fell 0.5% to $3.6377 a pound. Purchasing managers index data showed that Chinese manufacturing activity unexpectedly shrank in October, while the non-manufacturing sector grew at a slower-than-expected pace. The readings highlighted that stimulus efforts from Beijing only provided limited support to the Chinese economy, and that other factors- particularly a real estate crisis and weak trade- were also dampening growth. This raised questions over just how strong copper demand will remain in the coming months. https://www.investing.com/news/commodities-news/gold-prices-dip-below-2000-as-fed-jitters-grow-meast-fears-decline-3214608

2023-10-31 05:12

Bitcoin transaction app, Strike, is currently probing into claims of a potential security breach, although no concrete evidence has been unearthed thus far. This investigation was sparked by discussions on ZachXBT's Telegram channel, where users such as @bitcoin_eagle reported receiving suspicious scam emails linked exclusively to Strike. The allegations surfaced in the wake of Strike's significant operations expansion in May. Initially serving markets in the U.S., Argentina, and El Salvador, the app has extended its reach since. Founded by Jack Mallers in 2020, Strike leverages the Lightning Network to offer its user base instant Bitcoin transactions. https://www.investing.com/news/cryptocurrency-news/strike-investigates-potential-security-breach-amid-global-expansion-93CH-3214602

2023-10-31 05:09

Bittrex, a cryptocurrency exchange, has obtained court approval for its revised bankruptcy plan under Chapter 11, enabling it to wind down its U.S. operations and settle debts with creditors. The approval was granted by Judge Brendan Shannon, following a charge from the Securities and Exchange Commission (SEC) for operating an unregistered exchange. The issue was resolved through a $24 million settlement in August. The SEC charge and subsequent settlement led to a significant decrease in Bittrex's market share. According to data from The Block, Bittrex commanded nearly 23% of USD support market share at the start of 2018. However, by 2021, the company's market share had fallen below 1%, with no signs of recovery. Despite the challenges faced by Bittrex in the U.S., its international operations continue under the banner of Bittrex Global. Led by CEO Oliver Linch, Bittrex Global operates as a non-U.S. regulated digital assets exchange, catering to clients concerned about U.S. regulatory issues. https://www.investing.com/news/cryptocurrency-news/bittrex-secures-court-approval-for-chapter-11-bankruptcy-plan-93CH-3214601