2023-10-25 08:17

Copyrighted Image by: Reuters. During a week of significant volatility and uncertainty, Bitcoin (BTC-USD) has experienced a substantial surge, breaching the $30,000 mark and nearing $35,000. This price level represents the cryptocurrency's peak since May last year, surpassing critical benchmarks such as the 100 and 200-week moving averages not seen since April. Amid this turbulent environment, timing remains a crucial factor for traders navigating the market. Speculations of a potential market sell-off are rife due to the imminent approval of a spot Bitcoin Exchange-Traded Fund (ETF). The ETF ticker appeared on the Depository Trust & Clearing Corporation (DTCC) website, sparking discussions and premature tweets that further fueled market volatility. Despite these speculations, it's important to note that approval isn't guaranteed due to the Securities and Exchange Commission's (SEC) concerns about potential market manipulation. The proposed spot Bitcoin ETF is an initiative by BlackRock (NYSE:NYSE:BLK), the world's largest asset manager. Unlike existing Bitcoin ETFs like BITO and XBTF, which offer indirect exposure to Bitcoin, BlackRock's spot Bitcoin ETF would offer direct exposure. This option could allow retail investors to access Bitcoin through regular brokerage and retirement accounts without facing crypto wallet management risks such as hacking and loss of keys. The application by BlackRock has led to similar applications from other asset managers. Ric Edelman, a prominent figure in the financial industry, argues that spot crypto ETFs could be more cost-effective than crypto futures ETFs like BITO and XBTF, which have high expense ratios of 0.95% and 0.76%, respectively. If approved, these spot Bitcoin ETFs would offer a convenient option for investors bullish on Bitcoin but wary of managing their own crypto wallet or creating an account on a crypto exchange. This move towards spot Bitcoin ETFs comes in the wake of the collapse of exchanges like FTX, Voyager Digital, and Celsius Holdings (NASDAQ:CELH), which has increased skepticism about holding Bitcoin on crypto exchanges. Spot Bitcoin ETFs provide a simpler way for risk-averse investors and institutional investors who aren't structured to buy and hold Bitcoin themselves. The impressive rally in Bitcoin's price follows the "crypto winter" of 2022. Year-to-date, Bitcoin has seen an over 100% increase, with a nearly 20% surge in the past week alone. Despite charging fees, these spot Bitcoin ETFs, if approved, would likely be cheaper than current Bitcoin futures ETFs, offering a potentially attractive option for investors. https://www.investing.com/news/cryptocurrency-news/bitcoin-nears-35000-amid-etf-speculation-and-market-uncertainty-93CH-3207992

2023-10-25 07:54

Copyrighted Image by: Reuters. Bank of China Hong Kong (BOCHK) is conducting a pilot project to examine the role of smart contracts in the proposed Central Bank Digital Currency (CBDC) of Hong Kong, using its mobile applications BOC Pay and BOC Bill Merchant App. The pilot aims to integrate point-of-sale functionality to lower technical barriers for merchants, thereby eliminating the need for additional software. Participants in the pilot include BOCHK employees and ten merchants from various sectors. The pilot project has a feature that automatically converts customers' prepaid funds into e-HKD via smart contracts upon meeting set conditions. Chen Guang of the Digital Currency Task Force at BOCHK confirmed this development. The current pilot project follows BOCHK's earlier experiments with prepaid functionalities. These were conducted after the Hong Kong Monetary Authority (HKMA) initiated CBDC pilots involving offline payments and tokenized deposits in May. In July, BOCHK introduced cross-border functionalities, which allowed Chinese tourists to use the digital yuan in Hong Kong. This move was part of a broader trend of financial institutions exploring programmable payments. For instance, HSBC Hong Kong recently conducted a study involving HKUST Business School staff and students. Despite these advancements, Eddie Yue, the CEO of HKMA, indicated that a full-scale launch of e-HKD will not proceed until key industry players have gained the necessary experience and clearance. https://www.investing.com/news/forex-news/bochk-tests-smart-contracts-in-hong-kongs-cbdc-pilot-project-93CH-3207964

2023-10-25 06:52

Copyrighted Image by: Reuters Coinbase (NASDAQ:COIN), a prominent cryptocurrency exchange, is currently engaged in a dispute with the Securities and Exchange Commission (SEC) over the agency's broad interpretation of securities as investment contracts that anticipate a rise in value. The company argues that this interpretation exceeds legal limits and is advocating for support from Congress to broaden traditional securities laws. This confrontation underscores the pressing need for regulatory clarity within the rapidly expanding cryptocurrency industry. As digital assets continue to grow in popularity and usage, the demand for clear guidelines and regulations becomes increasingly crucial. Coinbase's challenge against the SEC's interpretation of securities is indicative of this larger issue within the industry. The crypto exchange maintains that its contention is not merely a matter of semantics, but a crucial factor in defining the boundaries and rules that govern digital assets. By challenging the SEC's interpretation, Coinbase aims to ensure that traditional securities laws are updated to reflect the unique characteristics and challenges posed by digital assets. The outcome of this dispute will have significant implications for the future of digital assets and their regulation. As such, all eyes are on this ongoing standoff between Coinbase and the SEC as it may pave the way for future regulatory frameworks in the burgeoning crypto industry. https://www.investing.com/news/cryptocurrency-news/coinbase-challenges-secs-interpretation-of-securities-93CH-3207880

2023-10-25 06:42

Copyrighted Image by: Reuters. Bitcoin has seen a significant surge of 17% to $33,922, demonstrating a strong rebound in the cryptocurrency market following a turbulent period in May 2022. The period was marked by crises including stablecoin devaluation, a hedge fund collapse, and the downfall of the FTX exchange. Accompanying Bitcoin's rise, companies such as Coinbase (NASDAQ:COIN) Global and MicroStrategy also experienced increases of 9% and 12% respectively. The surge in Bitcoin's value is linked to optimism surrounding Bitcoin-based Exchange Traded Funds (ETFs). Notably, BlackRock (NYSE:BLK)'s iShares Bitcoin Trust has been listed by the Depository Trust and Clearing Corporation. This optimism is seen as a positive step towards more robust regulatory frameworks for cryptocurrencies. https://www.investing.com/news/cryptocurrency-news/bitcoin-rebounds-amid-optimism-around-etfs-market-volatility-expected-to-reduce-93CH-3207862

2023-10-25 06:19

Copyrighted Image by: Reuters Coinbase (NASDAQ:COIN), the cryptocurrency exchange, has filed a motion to dismiss a case brought against it by the Securities and Exchange Commission (SEC), arguing that the regulator has overstepped its jurisdiction. The move, which took place on Monday, is the latest in a series of legal disputes between the crypto platform and the SEC. The case centers around the SEC's classification of cryptocurrencies listed on Coinbase as securities. Coinbase has objected to this broad definition, accusing the SEC of power abuse and infringing on powers that Congress holds. The company insists that its listed cryptocurrencies fall outside of the regulator's jurisdiction. This dispute began on June 6 when the SEC launched a lawsuit against Coinbase for alleged breaches of U.S. securities laws due to listing tokens without proper registration. In response, on June 29, Coinbase filed a motion accusing the SEC of violating its due process rights. In an October 3 rebuttal to Coinbase's dismissal motion, the SEC maintained its stance that several cryptocurrencies listed by Coinbase were indeed investment contracts under the Howey test. This legal battle underscores the struggle to define cryptocurrency regulation in the U.S., highlighting the complexity of this issue and the need for legal clarity in this evolving space. The North American Securities Administrators Association has shown support for the SEC's position and submitted an amicus brief urging not to treat digital assets as special. The case is currently overseen by Judge Katherine Polk Failla, who recently dismissed a similar class action lawsuit against Uniswap Labs, Paradigm, and Andreessen Horowitz. Paul Grewal, Coinbase’s chief legal officer, echoed these sentiments, challenging the SEC's interpretation of investment contracts as overly broad. He argues that the major questions doctrine applies in this case. The case may proceed to oral arguments before a judgment is issued. As it stands, this legal dispute exemplifies the ongoing struggle to define cryptocurrency regulation in the U.S., underscoring the urgent need for legal clarity in this rapidly evolving space. https://www.investing.com/news/cryptocurrency-news/coinbase-challenges-secs-authority-in-ongoing-legal-battle-93CH-3207857

2023-10-25 05:25

Copyrighted Image by: Reuters Investing.com-- Gold prices moved little on Wednesday, retaining most recent gains as fears of a recession in the euro zone, following a string of weak economic readings, kept safe haven demand supported. Any major gains in gold were largely stymied by persistent fears of higher U.S. interest rates, especially as data released on Tuesday showed that local business activity improved in October. The dollar firmed in overnight trade, while Treasury yields steadied from recent losses. Safe haven demand for the yellow metal receded this week amid some signs of deescalation in the Israel-Hamas conflict, as Israel postponed a planned ground assault on Gaza. But this was somewhat offset by weak purchasing managers index data from the euro zone, which raised concerns over a potential recession in the region. Germany, Europe’s largest economy, had entered a recession earlier this year. Gold remained within sight of the $2,000 an ounce level, although whether it would reach that level in the near-term remained in doubt, especially with several more U.S. economic cues due this week. Spot gold rose 0.1% to $1,972.51 an ounce, while gold futures expiring in December fell 0.2% to $1,983.15 an ounce by 01:10 ET (05:10 GMT). US GDP data, more Fed cues on tap Markets were now largely awaiting more economic cues from the U.S. this week, chiefly third-quarter gross domestic product (GDP) data due on Thursday. Any more signs of resilience in the U.S. economy gives the Fed more headroom to keep interest rates higher for longer, while also diminishing the safe haven appeal of gold. The GDP reading will be followed by PCE inflation data- the Fed’s preferred inflation gauge on Friday. U.S. inflation has increased in recent months, giving the Fed more impetus to remain hawkish. The central bank is set to meet next week to decide on interest rates, although markets widely expect the Fed to stand pat. Still, Fed officials have signaled at least one more hike this year, and that rates will remain higher for longer, at least until end-2024. Higher rates diminish the appeal of investing in assets such as gold, given that the yellow metal offers no yields. Copper takes little support from China stimulus news Among industrial metals, copper prices fell slightly on Wednesday, taking little support from news that major importer China planned to ramp up infrastructure spending this year. Copper futures fell 0.2% to $3.6247 a pound. The Chinese government said it will issue 1 trillion yuan ($1=7.3 yuan) in bonds this year to increase infrastructure spending, particularly on disaster repair and relief. The move is also expected to stimulate the Chinese economy. Still, copper was little changed after the announcement, as concerns over a euro zone recession also pointed to weaker industrial demand in the region over the coming months. https://www.investing.com/news/commodities-news/gold-prices-steady-amid-fed-uncertainty-europe-recession-fears-3207839