Tag: Bitcoin ETF

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Bitcoin Crypto News Markets

Bitcoin ETF Applications Out of Control: 34 Pending Approval and Growing

The floodgates have opened on Bitcoin Exchange Traded Fund (ETF) applications, with 34 currently pending approval and more joining the queue by the day.

Advocates for a Bitcoin ETF argue that the complexities of exchanges, crypto wallets and private keys still present a barrier to entry into the crypto space for newcomers. A Bitcoin ETF would enable these investors to gain exposure to Bitcoin without actually having to hold their own cryptocurrency.

A Long and Winding Road

The road toward a Bitcoin ETF has been long and tortuous. Since the Winklevoss twins first filed for a Bitcoin ETF-like trust in 2013, the US Securities Exchange Commission (SEC) has cited concerns over the lack of transparency of trading information, possible market manipulation, and the notion that Bitcoin is fundamentally different from other assets it regularly deals with. It is also worried about a lack of liquidity in the markets, Bitcoin’s inherent volatility, and fears over associated fraud.

Part of the case against a futures-based Bitcoin ETF is the 1 percent annual fund management fee, which detractors warn tends to quietly accumulate, and the added complexity of trading futures, whether they be soy, crude oil, or cryptos.

Could ETFs Push BTC to 100k?

More than US$1.5 billion has flowed into digital asset investment products since last month’s inception of the first Bitcoin ETF by ProShares. About 99 percent of those inflows were generated by bitcoin, while an all-time high (ATH) price spike further raised its dominance in the market.

A month ago, derivative markets gave bitcoin a 3.2 percent chance of reaching the US$100,000 mark before year’s end. In the first week of October alone, BTC surged over 34 percent, leaving the US$55,000 mark in its wake. With just over six weeks to go, there’s every chance that figure will double.

At the time of writing, bitcoin’s price had hit a new ATH of US$68,680 – up 5.03 percent in the previous 24 hours – so it’s well on the way.

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Bitcoin Crypto News

$1.5 Billion Enters the Crypto Market Since Approval of BTC Futures ETFs

Recent data from CoinShares shows weekly inflows to digital asset investment products have spiked to a record high of approximately US$1.5 billion following the inception of the two Bitcoin futures exchange-traded funds (ETF) in the US.

Bitcoin ETFs Brought in $1.24 Billion

Last week, the US Securities and Exchange Commission (SEC) allowed the launch of the first-ever Bitcoin-related ETF product by ProShares, which gained about US$1 billion in volume on the first day of trading. Valkyrie launched the second Bitcoin ETF soon after, adding to the euphoria and inflows to the Bitcoin market.

Per CoinShares, these Bitcoin ETFs accounted for the majority of inflows in the digital asset fund market last week – about US$1.24 billion. For the record, this represents a 93.75 percent increase from the previous weekly inflow high of US$640 million in February.

Notionally, this proves that crypto experts are on the money with their speculations that a Bitcoin ETF in the US would unleash more capital into the market.

Total Crypto AUM Spike to $79.2 Billion

So far in 2021, the total inflows in the digital assets fund market have risen to US$8 billion, about US$1.3 billion higher than the record level last year. CoinShares also noted that total assets under management (AUM) rose to US$79.2 billion following increases in underlying crypto assets, especially bitcoin.

About 99 percent of all the inflows last week were generated by Bitcoin amid the ETFs, whereas the all-time high in price further raised its dominance in the market.

Solana saw the largest inflow of US$8.1 million in the altcoin category, followed by Cardano (US$5.3 million) and Binance Coin (US$1.8 million). There were also more outflows in Ether (ETH) last week.

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Bitcoin Institutions

First Bitcoin Cashback Mortgage Launched in Canada

Mogo, a Toronto-based fintech company and loan lender, has launched the first Bitcoin Cashback Mortgage in Canada — this means that Canadians can request a mortgage loan and earn at least $3,100 worth of Bitcoin.

Mogo is a fintech company that has expanded its Bitcoin Cashback program to include MogoMortgage, turning the company into the first-ever mortgage lender that will reward its users with Bitcoin.

The Crypto Market Expands in Canada

The crypto market in Canada is growing fast, mostly thanks to governmental support for crypto-assets. At least 3 BTC ETFs have been approved at the beginning of this year. Just a month after it was launch, Canada’s first Bitcoin ETF accrued over $450 million from investors.

This means that Canadians are keener to explore cryptocurrencies, but their inherent risk can drive away prospective investors. David Feller, CEO at Mogo, believes MogoMortgage can meet this demand without risking its customer’s capital:

Given the volatility and speculative nature of bitcoin, there’s an increasing number of Canadians who are looking for ways to participate without risking their own money, and our bitcoin rewards program meets this demand.

David Feller, CEO at Mogo [Business Wire]

Canada’s First Bitcoin Mortgage Cashback

Feller remarked that Bitcoin can offer unique opportunities as a long-term investment, stating that a $3,100 investment five years ago would now worth over $350,000.

Unlike traditional reward programs, bitcoin rewards have the unique characteristic of being an asset class that can rise in value over time – $3,100 invested in bitcoin 5 years ago would be worth over $350,000 today.

David Feller, CEO at Mogo [Business Wire]

With a $1.7 trillion mortgage market, Mogo expects to receive a large inflow of clients seeking exposure to crypto-assets, earning Bitcoin without risking their capital. “This is a great way to get a mortgage,” stated Greg Feller, Mogo’s Chief Financial Officer.

The residential mortgage market in Canada is a massive market estimated at about $1.7 trillion, and we’re pleased to provide Canadians with a great way to get a mortgage, while also earning bitcoin.

Greg Feller, President and CFO at Mogo [Business Wire]