2023-10-19 21:25

Copyrighted Image by: Reuters Grayscale Investments, a leading crypto asset manager, has submitted an S-3 filing to the Securities and Exchange Commission (SEC) in a bid to transform its Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin Exchange-Traded Fund (ETF). The news came to light on Thursday. The S-3 filing is a condensed version of an S-1 filing, and its submission is part of Grayscale's ongoing efforts to secure SEC approval for their Bitcoin ETF. This move places Grayscale in competition with BlackRock Inc (NYSE:BLK) and Fidelity, who are also seeking SEC approval for their respective Bitcoin ETFs. Grayscale's shares have been recognized under the Securities Exchange Act of 1934 since January 2020, allowing the firm to use Form S-3. The company plans to list its shares on NYSE Arca under the ticker GBTC, pending approval of NYSE Arca's application on Form 19b-4 and validation of the form S-3. The timing of this registration is strategic, as it comes ahead of an expected court mandate from the U.S. Court of Appeals for the D.C. Circuit. The court is anticipated to reaffirm a ruling made in August. Grayscale was founded in 2013 and offers access to the digital economy through regulated investment products. It provides single asset, diversified, and thematic exposure via Grayscale Securities, LLC. The firm's application for SEC registration is still pending, prohibiting any unlawful sales or purchase offers until approval is granted. This development was one of many topics discussed at Benzinga's Future of Digital Assets conference. SEC Chair Gary Gensler has previously likened the Bitcoin ETF review process to that of an initial public offering (IPO), emphasizing the importance of regulatory compliance in the crypto sector. https://www.investing.com/news/cryptocurrency-news/grayscale-files-s3-in-bid-to-convert-bitcoin-trust-into-etf-93CH-3203576

2023-10-19 21:17

Copyrighted Image by: Reuters Investing.com - President Joe Biden has revived his bid to refill the heavily-drawn US oil reserve, with the Department of Energy announcing two separate offers of crude purchases on Thursday totaling 6 million barrels, to be delivered between December this year and January 2024. The last time the Biden administration announced purchase intentions for the Strategic Petroleum Reserve, or SPR, was in July. “The Department of Energy, Strategic Petroleum Reserve Project Management Office has a requirement to conduct a purchase of approximately three (3) million barrels of United States produced sour crude oil for December 2023 delivery,” said of the two offer documents circulated on Thursday. The other document was identically worded, except for the delivery period, which was stated as January 2024. According to the documents, those responding to its purchase offer for December must submit their responses by October 24. For the January purchase, responses must be received by November 1. “The Government contemplates (the) award of a firm-fixed-priced contract resulting from this,” the documents said. “The Government intends to evaluate proposals without discussions with Offerors (except clarifications). Therefore, the Offeror’s initial proposal should contain its best terms from a price and technical standpoint.” The Biden administration leaned heavily on the SPR between late 2021 and early this year to offset tight crude supplies that had raised fuel costs for Americans. The SPR's crude balance has fallen to around 40-year lows after the release of some 200 million barrels by the administration. Biden’s use of the SPR has been a highly-charged matter for oil bulls as well as his political opponents. Both accuse the president of indiscriminately releasing hundreds of millions of barrels from the stockpile to subdue crude prices and shore up his political standing with American voters — when the reserve is meant for emergency use, in times of critically short oil supply. Last year’s releases came ahead of the midterm election where Democrats aligned with the president regained control of the Senate while conceding the House, or Congress. Both Biden and the Democrats are up for reelection in November 2024. Biden, in his defense, had said he was only acting to reduce record high pump prices of gasoline, which stood at above $5 per gallon last June and hovering since at around $3.50. The administration had also blamed last year’s high crude oil prices for US inflation getting to four-decade highs of above 9% in June 2020. https://www.investing.com/news/commodities-news/biden-revives-bid-to-refill-us-oil-reserve-with-6mbarrel-purchase--energy-dept-3203568

2023-10-19 19:14

Copyrighted Image by: Reuters. Gold prices have seen a significant surge this week, driven by escalating tensions in the Middle East and indications from Federal Reserve Chair Jerome Powell about a possible pause in rate hikes. Spot gold reached $1,967.70 per ounce, while U.S. gold futures climbed to $1,980.60. The ongoing conflict in Gaza, characterized by Israel's aggressive airstrikes and backed by global leaders including U.S. President Joe Biden and British Prime Minister Rishi Sunak, has played a key role in this price increase. The geopolitical instability has contributed to the bullish trend in the precious metal market. Despite the recent surge, TD Securities anticipates an imminent "buying exhaustion". It suggests that deteriorating U.S. data could stimulate interest in gold, with a potential recession driving prices beyond $2,100. On the monetary policy front, Powell's remarks on the rise in bond yields reducing the need for additional rate hikes have led traders to predict a 68% chance of no rate hike in December. This shift in expectations has further supported gold's upward trajectory. In addition to these factors, the falling dollar index and Benchmark Treasury yields may enhance gold's appeal as a safe haven asset. As investors continue to navigate through these uncertain times, it remains to be seen how these various elements will continue to shape the trajectory of gold prices. https://www.investing.com/news/commodities-news/gold-prices-surge-amid-middle-east-tensions-and-possible-fed-rate-pause-93CH-3203415

2023-10-19 19:10

Copyrighted Image by: Reuters. Federal Reserve Chairman Jerome Powell's address at the Economic Club of New York on Thursday sparked a rise in gold futures on Comex, reaching their highest settlement since July 31. Amid Powell's speech, gold for December delivery rallied sharply, settling at $1,980.50 an ounce, up by 0.6%. Powell emphasized the need for persistent positive data to bring down the high inflation rate to the 2% target. He also indicated that continued above-trend growth or failure to ease labor market tension might necessitate further monetary policy tightening. Brien Lundin from Gold Newsletter inferred from Powell's comments that unless there is a significant inflation increase, the Fed would likely keep rates stable. However, Powell's caution against doing 'too little' rattled equity and bond bulls. This concern, coupled with geopolitical uncertainties such as wars in Ukraine and the Middle East and strained China relations, has fueled demand for gold as a safe haven asset, according to Edmund Moy of U.S. Money Reserve. After three consecutive weeks of losses, gold futures are on track to record gains for the second week in a row. Lundin highlighted the current trendless nature of markets with shifting correlations and pointed out a critical issue: an increase in interest rates and Treasury yields due to oversupply. The U.S. Treasury is pushing a large volume of new paper into a market devoid of its usual buyers amidst an exploding deficit, Treasury rollovers, and debt-ceiling brinksmanship backlog. This situation has prompted potential buyers to seek higher returns, leading to more dollars being created and increased risk, both favoring gold. https://www.investing.com/news/commodities-news/gold-futures-rally-on-powells-speech-geopolitical-tensions-93CH-3203410

2023-10-19 18:22

Ethereum, the blockchain platform known for supporting decentralized applications (dApps) and smart contracts, has been at the center of investment debates due to its current price below $2,000, a stark contrast to its all-time high. Despite a substantial price increase of over 52,000% since its 2015 launch, Ethereum now sits 68% off its peak. This drop has sparked interest among some investors who view the current price as a buying opportunity, particularly in light of the crypto market normalization that followed the bull run of 2021 and the downturn induced by rapidly rising interest rates in 2022. The potential growth in dApps and smart contracts has attracted believers who see numerous developing use cases for Ethereum. Despite a slowdown in decentralized finance (DeFi) protocols and non-fungible tokens (NFTs), Ethereum continues to be a leader in these areas. The demand for blockchain is expected to surge during a market rebound, promising quick profits for investors. Ethereum's transition to a proof-of-stake consensus mechanism 13 months ago significantly reduced its energy consumption by over 99%, earning praise from climate activists and promoting a more sustainable future for the platform. However, Ethereum's volatility and regulatory uncertainty have also raised concerns. Critics warn that investing in Ethereum could be risky for those near or in retirement. Some even question Ethereum's necessity in the existing financial landscape, suggesting it may be solving non-existent problems. The failures of major crypto firms underscore the adequacy of the current financial system for most people. If the Securities and Exchange Commission (SEC) categorizes Ethereum as a security, it would face comprehensive reporting requirements and increased public scrutiny. Furthermore, there are lingering doubts about whether Ethereum will ever return to its all-time high due to the one-hit wonder euphoria of 2021. Despite the potential gains, the Motley Fool Stock Advisor team suggests there are ten stocks that could be better investments than Ethereum. This advice underscores the ongoing debate about Ethereum's viability as an investment amidst a normalization of crypto markets. https://www.investing.com/news/cryptocurrency-news/ethereums-sub2000-price-stirs-investment-debate-amid-market-normalization-93CH-3203390

2023-10-19 17:40

Copyrighted Image by: Reuters In a landmark move, Zuger Kantonalbank, Switzerland's oldest cantonal bank founded in 1892, has become the first such institution to offer cryptocurrency services. The bank has partnered with Sygnum Bank to introduce trading and storage for six cryptocurrencies: XRP, Bitcoin (BTC), Ethereum (ETH), Polygon (MATIC), Litecoin (LTC), and Uniswap (UNI), as revealed by Crypto Eri on Thursday. Zuger Kantonalbank, which holds CHF 18.6 billion ($20.6 billion) in assets, is leveraging Sygnum's API-powered B2B protocol to facilitate cryptocurrency trading on its mobile platform. This protocol is currently used by over fifteen banks worldwide. Customers with debit and custody accounts can now trade and store these digital assets without the need for an external wallet or a third-party exchange. This move by Zuger reflects a broader trend of growing cryptocurrency market adoption by major entities. Notable names in this trend include BlackRock (NYSE:BLK), Wisdom Tree, and Coinbase (NASDAQ:COIN), which recently launched XRP futures for its non-U.S. customers. Applications for spot BTC ETFs and the Atlanta Federal Reserve's recognition of XRP as an "international payment medium" further underscore this trend. Zuger Kantonalbank primarily serves the Zug region in Switzerland, which is known as a hub for blockchain and cryptocurrency businesses. This new service offering aligns the bank with the evolving financial landscape of its service area. https://www.investing.com/news/cryptocurrency-news/zuger-kantonalbank-pioneers-crypto-services-among-swiss-cantonal-banks-93CH-3203359