Approval of Bitcoin ETFs could entail risks for investors. BlackRock anticipates cuts and awaits approval of ETFs.
Dennis Kelleher, the CEO of Better Markets, a nonprofit organization, has issued a request to the U.S. Securities and Exchange Commission (SEC), urging it to reject approval of an Exchange Traded Fund (ETF). Spot Bitcoin.
In a letter to SEC Secretary Vanessa Countryman dated January 5, Kelleher expressed concerns about the potential risks investors could face should this financial product be given the green light.
The Better Markets leader argued that approving a spot Bitcoin ETF would go against the regulator’s founding principles. More worryingly, it could expose investors to significant risks, including the possibility of fraud. In the letter, Kelleher stressed that allowing these products to enter the market could have serious consequences for investors, as cryptocurrency is often linked to fraudulent practices.
BlackRock Plans Staff Reduction amid Expectations over Bitcoin ETF Approval
Asset management giant BlackRock plans to reduce its global workforce by approximately 3%, according to recent reports. This announcement comes at a crucial time for the company as it hopes to receive positive news from the United States Securities and Exchange Commission (SEC) regarding its Bitcoin Exchange Traded Fund (ETF) application.
According to a Jan. 6 Fox Business report, based on sources familiar with the matter, around 600 employees will be laid off as part of routine internal adjustments, determined by employee performance over the past 12 months.
In parallel, BlackRock has expectations that its Bitcoin ETF application will be approved on January 10. Coincidentally, the SEC has a deadline to approve or reject the ARK 21 Shares Spot Bitcoin ETF on the same day.
Grayscale Drops MATIC, Adds AVAX and XRP in Quarterly Crypto Fund Review
In its quarterly crypto fund review, asset manager Grayscale has carried out a significant rebalancing across three of its portfolios. Leaving aside tokens such as Polygon (MATIC) and opting for the inclusion of Avalanche (AVAX) and XRP, as announced by the company on January 5.
Grayscale’s Digital Large Cap Fund (GDLC) underwent changes to its composition, with Bitcoin leading the portfolio with 69.15%, followed by Ether with 21.90%, Solana with 3.65%, XRP with 2.54%, Cardano with 1.62%. And, the recent addition of AVAX with 1.14%. As a consequence of this rebalancing, the MATIC token was removed from the GDLC.
The Grayscale DeFi Fund also underwent changes, with the removal of the Curve DAO token and the addition of Uniswap with 41.11%, Lido DAO with 23.90%, MakerDAO with 13.39%, Aave with 12.63%, and Synthetix with 8.97 %.
Psychology of Unitary Bias Challenges Investors, VanEck Bet on ETFs as Solution
VanEck advisor Gabor Gurbacs warns about the influence of unitary bias psychology on Bitcoin adoption. Arguing that the high price of a full Bitcoin could discourage potential investors. Gurbacs suggests that Bitcoin exchange-traded funds (ETFs) could offer a solution to this challenge.
In a series of posts on X, Gurbacs highlighted the lack of awareness among investors about the possibility of owning fractions of Bitcoin. He noted that many people prefer full asset ownership due to the psychology of unitary bias, expressing surprise at the lack of knowledge in this regard.
“I was surprised that a good number of people didn’t know that one can own a fraction of a Bitcoin and even more frequently people didn’t want to own a fraction of a coin,” Gurbacs stated.
By Leonardo Perez
