ETFS

SEC Approves First US-Listed Bitcoin ETFs, Ushering in a New Era for Bitcoin

The Scoop: The U.S. Securities and Exchange Commission (SEC) has approved the first United States-listed exchange-traded funds (ETFs) to track bitcoin, marking a significant advancement for Bitcoin and the broader industry.

Bitcoin ETFs Breakthrough: The SEC's approval of 11 bitcoin ETF applications, including those from major firms like BlackRock, Ark Investments, and Fidelity, enables both institutional and retail investors to gain exposure to bitcoin without direct ownership.

Impact on the Market: The approval is expected to draw significant investment into bitcoin, with estimates ranging from $50 to $100 billion in 2023 alone.

Regulatory U-Turn: This decision represents a notable shift in the SEC's approach, moving from a decade of rejections over manipulation concerns to embracing bitcoin ETFs. The change was influenced by a federal appeals court ruling in favor of Grayscale Investments, leading to a re-evaluation of the SEC's stance on bitcoin ETFs.

📉 BlackRock cuts spot bitcoin ETF fee to 0.25%. BlackRock has reduced its sponsor fee for a potential spot bitcoin ETF from 0.3% to 0.25%, intensifying competition among ETF issuers. Competitors like Ark Invest and Bitwise also slashed their fees, with some offering temporary zero fees, in anticipation of trading and significant market inflows.

🔒 @Safety confirms @SECGov Twitter hack. Twitter/X.com posted confirming that the SEC Twitter account hack occurred through control of the SEC’s account, and not X's systems. Two-factor authentication was disabled.

💵 In December 2023, U.S. inflation increased slightly to 3.4%, exceeding forecasts. While core inflation slightly declined, overall price growth is moderating. Price inflation remains higher than the Federal Reserve's 2% target.

𝕏 Elon Musk is open to using Bitcoin on X. On a live-stream with Ark CEO Cathy Wood, Musk said: “Um, yeah I’m open to the idea of using Bitcoin. Like I said, of the various things I think about, I think about Bitcoin very little.”

🚨 U.S. Senators demand SEC report on X account breach. U.S. Senators J.D. Vance and Thom Tillis are demanding a report from the SEC Chair Gary Gensler on the recent breach of the SEC's X account (formerly Twitter). The breach, falsely announcing approved Bitcoin ETFs, raises concerns about the SEC's cybersecurity measures.

🤔 Jamie Dimon, JP Morgan CEO, criticizes Bitcoin amidst their ETF involvement. His comments highlight a massive contrast with the financial sector’s increasing interest in Bitcoin. “I’ve always said Bitcoin doesn’t have value.”

🔍 CleanSpark inks deal for 160,000 miners, eyeing 50 EH/s. CleanSpark has signed a strategic agreement to purchase up to 160,000 Bitmain S21 miners, aiming for a hashrate of 50 EH/s. The initial batch includes 60,000 units, with an option to buy an additional 100,000 at a fixed price.

Hacked SEC Twitter Account Falsely Posts About Approved Bitcoin ETFs

Summary: In a shocking turn of events, hackers managed to temporarily gain control of the SEC's X account, posting a fraudulent announcement regarding the approval of spot Bitcoin ETFs.

Price Jumps: This fabricated news led to a rapid surge in Bitcoin's price, reaching $48,000, before it was revealed to be a hoax by the SEC.

Price Crashes: After SEC Chair Gary Gensler tweeted the account was hacked, the price crashed from $48,000 USD to $44,000.

Investigation in Progress: Currently, an investigation is in progress, with the SEC collaborating with law enforcement to identify the perpetrators and any potential accomplices.

Do you prefer Bitcoin ETFs or actual Bitcoin (BTC)?

BTC: 87.5%

ETFs: 12.5%

🌐 Yesterday, the Bitcoin world celebrated Hal Finney Day. Hal was the first Bitcoin user and the first to ever receive a Bitcoin transaction. He contributed significantly to Bitcoin's development, including creating an early proof of work system. Despite battling ALS, Finney continued to influence Bitcoin until his passing.

🌐 Two digital nomads in El Salvador sparked Bitcoin adoption in the mountain town of Berlin. They educated locals and onboarded over 100 merchants in six months. Their efforts transformed Berlin into a growing Bitcoin community, attracting tourists and enhancing local businesses.

🏦 Isabel Schnabel of the European Central Bank clarified that the European Central Bank is highly unlikely to purchase Bitcoin for its balance sheet. This response came during an #AskECB Q&A session, marking a clear stance on the ECB's position regarding Bitcoin.

🚫 X silently removed the NFT profile picture feature for premium subscribers. Introduced in 2022, it allowed hexagon-shaped NFT avatars, but recent changes reflect a shift away from NFTs, aligning with trends in other social networks like Instagram and Facebook.

⛏️ A video of a Bitcoin mining operation in the United Arab Emirates spread quickly across Twitter.

📈 Circle Internet Financial, creator of stablecoin USDC, confidentially filed for a U.S. IPO. Despite not disclosing share details, the company aims to become publicly traded, following a $9 billion valuation and a canceled 2022 public merger.

Analyst Tom Lee claims $500,000 USD per Bitcoin (BTC) is achievable in the next 5 years.

10% - The amount of profits from its ETF that Bitwise will donate to open-source Bitcoin development for the next 10+ years.

$4 Billion USD - The amount of ETF inflows Bloomberg predicts on the first day of trading.

2 - The number of SEC commissioners who voted against spot Bitcoin ETF approval.

97 - The number of days left until the Bitcoin halving.

Today’s newsletter was written and edited by Jordan.