SEC Delays Decisions on the Approval of Bitcoin ETFs as well as These Three Bitcoin ETF Spot Applications

Leonardo Perez
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SEC Delays Decisions on the Approval of Bitcoin ETFs as well as These Three Bitcoin ETF Spot Applications

On Thursday, the US Securities and Exchange Commission (SEC) delayed its decision-making on the requests for bitcoin exchange-traded fund presented by the heavyweights of Wall Road Investco (IVZ), Fidelity Investments, Valkyrie, Bitwise, and Wisdomtree (WT), according to documents published on its website.

Bitcoin (BTC-US), which was already very down before the news, was discounted 4.9% at $ 25.9 thousand at 5:26 pm ET. That was before the Token rose to $ 27,900 on Tuesday, when the judges annulled a decision of SEC to prevent Grayscale Investments from converting its bitcoin trust (OTC: GBTC) into an ETF that directly invests in Bitcoin (BTC- USD).

Cryptocurrency defenders have argued that an ETF from BTC in cash would save investors the difficulties of buying the underlying token directly and at the same time allow a greater investment of the participants of the retail market in space. The co-founder of Fundstrat Worldwide Advisors, Tom Lee, predicted earlier this month that Bitcoin (BTC-USD) could increase to $ 150,000 if said product is approved.

The new deadline for SEC to address Bitwise’s application ends on Friday. The regulator must comment on the proposal of Wisdomtree (WT) before October 17 and that of Valkyrie on October 19.

On August 11, SEC expanded the decision on whether to approve the ETF Al Cash BTC proposed by Ark Investment Management.

The SEC Delays These Three Bitcoin ETF Spot Applications until October

The US Securities and Exchange Commission (SEC) announced its delay in three Exchange-Traced Fund (ETF) Bitcoin Spot (Cash) of Valkyrie, Investco, and Wisdomtree. The decision was delayed at least 45 days, and in that period, SEC could extend the deadline up to 90 days.

While the regulator has never approved or allowed such a product to reach the market, the truth is that the SEC has never rejected or discarded an ETF to Blackrock. In addition, the regulator did not offer arguments, only “considered appropriate to designate a longer term.”

SEC Did Not Explain Reasons to Postpone the Bitcoin ETF Location

Valkyrie, Invesco, and Wisdomtree are some of the Bitcoin ETCs Locations. SEC detailed in its document that it “needs more time” to consider the ETF and on October 17 “will approve or disapprove” the ETF proposals.

Meanwhile, SEC will closely address Blackrock’s ETF Spot proposals from Blackrock, Fidelity, Bitwise, and Vaneck. Let us see this recent list of all Bitcoin ETF requests in cash:

• Ark 21Shares Bitcoin ETF (ARKB) by 21Shares and Ark.

• Ishares Bitcoin Belief of Blackrock.

• Bitcoin Bitle Bitle bit ETP Trust Bitwise.

• Vaneck Bitcoin Bitcoin Trust by Vaneck.

• Wisdomtree Bitcoin Trust (BTCW) by Wisdomtree.

• Invesco Galaxy Bitcoin ETF of Invest & Galaxy.

• Clever Origin Bitcoin Have Faith in by Fidelity.

• Valkcoin Valkcoin Fund (BRR) of Valkyrie.

On August 29, Grayscale Investments LLC won its case against SEC for the blockade imposed by it on the Bitcoin ETFs. Now the application returns to the commission and the possibility that this ETF is approved increases.

In addition, three United States judges reviewed the DEC decision of blocking the Bitcoin ETF market and decided to give the reason to Grayscale, reversing the blockade imposed by the Commission. This decision opened the door for the crypto market fights to approve a Bitcoin ETF.

Experts Believe that SEC Will Postpone the Bitcoin ETF Place Until 2024

For experts, SEC “will take your time” to approve the Bitcoin ETF Spot by the end of the year, or even for the first quarter of 2024, a date that I agree with the next Bitcoin halving. Bloomberg opted that the SEC would test the Bitcoin ETF in cash by up to 75%, against 65% of those who estimate that it will be until next year.

For analysts, if Bitcoin’s ETFs do not launch this year, the pair has a 95% certainty that it will happen in late 2024. However, the victory and Grayscale hints at a six-digit bitcoin price in the near future.

By Leonardo Pérez

Bitcoin Options Data Points to an Interesting Result after this Week’s Expiration of $1.9 Billion

Audy Castañeda
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Bitcoin Options Data Points to an Interesting Result after this Week’s Expiration of $1.9 Billion

A wave of macroeconomic and crypto-specific factors is expected to influence the $1.9 billion options expiration this week.

The upcoming $1.9 billion worth of Bitcoin monthly options expiration on August 25 is key to defining whether the $26,000 support level will hold. You could blame the recent sell-off in the cryptocurrency market on the US Securities and Exchange Commission (SEC) delaying its decision on Bitcoin spot ETFs, but there’s also the macroeconomic outlook.

If the Federal Reserve’s efforts to curb inflation work, the trend of a stronger US dollar is likely to continue. This was made clear when the US dollar index (DXY), a measure of the dollar against other currencies, reached its highest level in 76 days on August 22.

To avoid a potential loss of $380 million due to the €24,132 Bitcoin BTC options monthly expiration, Bitcoin bulls need to ensure that the Bitcoin price trades above $27,000 before August 25.

Bitcoin bears will benefit from the threat of harsh regulation

Cryptocurrency bulls have been running into regulatory issues of late. This is evident as the two major cryptocurrency exchanges, Binance and Coinbase, are currently locked in lawsuits with the SEC. Furthermore, the initial victory celebrated by Ripple against the SEC is being appealed by the regulatory body.

Furthermore, Bitstamp has recently revealed its decision to discontinue betting services for US-based clients. A fundamental concern in the current US regulatory landscape revolves around the classification of Ether ETH €1,526 as a commodity or security.

In addition, Binance has announced the suspension of its cryptocurrency debit card offers throughout Latin America and the Middle East. This decision follows allegations that Binance also suspended euro deposits and withdrawals via SEPA on August 20. The exchange clarified that there is no defined deadline to restore service.

Data Shows Bulls Were Overly Bullish on Bitcoin Price

Open interest for the options to expire on August 25 amounts to USD 1.9 billion. However, the final amount is expected to be lower as some traders expect the price to reach $29,000 or even higher. The unexpected 12% correction in the price of Bitcoin from August 14 to August 19 certainly caught bullish investors off guard, as evident in Deribit’s Bitcoin options interest chart.

The 0.56 put-to-call ratio reflects the imbalance between $1.2 billion of open interest in call options and $685 million in put options. However, if the Bitcoin price sustains near $26,500 at 8:00 a.m. UTC on August 25, only $35 million of these call options will be available. This difference occurs because the right to buy Bitcoin at $27,000 or $28,000 is worthless if BTC trades below that level at expiration.

Bitcoin bears aim below $26,000 to maximize their gains

Below are the four most likely scenarios based on current price developments. The number of option contracts available on August 25 for the buy (call) and sell (put) instruments varies depending on the expiration price. The imbalance that favors each side constitutes the theoretical benefit.

This crude estimate does not take into account more complex investment strategies. For example, a trader could have sold a call option, thereby gaining negative exposure to Bitcoin above a specified price. Unfortunately, it is not easy to estimate this effect.

• Between $25,000 and $26,000: 100 call options vs. 15,100 put options. The net result favors sales instruments in USD 380 million.

• Between $26,000 and $27,000: 1,400 call options vs. 11,000 put options. The net result favors sales instruments in USD 250 million.

• Between $27,000 and $28,000: 4,000 call options vs. 8,400 put options. The net result favors sales instruments in USD 110 million.

• Between $28,000 and $29,000: 6,000 call options vs. 5,300 put options. The net result is balanced between call and put options.

Note that for the bulls to even out before the monthly expiration, they need to achieve a 6% price rise from $26,400. By contrast, the bears only need a modest 2% correction below $26,000 to secure a $380 million lead on Aug. 25.

Given Bitcoin’s repeated falls below the $26,000 support level between August 21-23, it would not be surprising if this level were tested again before options expiration. Also, given the current cryptocurrency regulatory landscape, there is minimal incentive for Bitcoin bulls to reverse the prevailing bearish momentum after the $1.9 billion monthly options expire.

By Audy Catañeda

Gemini questions Genesis Bankruptcy Plan Filed by DCG

Audy Castañeda
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Gemini questions Genesis Bankruptcy Plan Filed by DCG

Gemini has raised objections to the Genesis bankruptcy plan, stating that its lack of clarity and limited information make it difficult to understand.

“These cases must move towards a resolution. It has been more than nine months since the Debtors stopped the repayments and denied the Gemini Lenders access to their digital assets,” the cryptocurrency exchange’s legal counsel further stated.

Frequent delays in the Genesis bankruptcy plan

In an Aug. 30 court filing, Gemini challenged DCG’s proposed bankruptcy plan. The roadmap suggests a way for creditors of the Genesis cryptocurrency lender to receive payments. However, Gemini maintains that it is unclear and lacks crucial information:

“The Debtors disclosed an ‘agreement in principle’ between the Debtors, the Committee, and DCG that is unfortunately light on detail and remains subject to final documentation.”

The plan states that unsecured creditors could get between 70% and 90% of the amount owed in USD. For asset recoveries, it could be 65% to 90%, depending on asset allocation.

However, Gemini argues once again that these facts lack transparency:

“The alleged recoveries of ‘~70-90%’ for unsecured creditors promoted by the Debtors in connection with the ‘agreement in principle’ are completely without foundation and cannot be explained through the spent terms provided by the Debtors.”

Recently, the situation has only gotten worse. Creditors have not received payments on loans that were due to be paid after they were due in May. The filing notes that the combined value of these loans is approximately $630 million.

Gemini maintains that despite frequent mentions of the planes, there is no substantial evidence to suggest their imminent execution:

“Despite the Debtors’ repeated promises that a settlement is very close, the Debtors are no closer to a confirmable plan that enjoys creditor support today than when these cases were filed in January.”

The Decline of Genesis Began After the Collapse of a Major Exchange

Genesis encountered difficulties following the November 2022 collapse of the cryptocurrency exchange FTX. Previous records indicated that the cryptocurrency lender owed approximately $3.5 billion to its top 50 creditors.

On May 4, reports revealed that FTX creditors were seeking $4 billion from Genesis. They allege that the lender moved its assets out of FTX before other creditors filed for bankruptcy.

FTX further alleged that Genesis was “one of FTX’s main feeder funds and central to its fraudulent business model.”

At the time, a Genesis spokesman explained that he was actively working on the restructuring process. The spokesperson stated that the bankrupt lender wants to ensure the best possible outcome for its clients and stakeholders.

By Audy Castaneda

Tracking Satoshi Nakamoto: Was the Bitcoin Creator a CIA Agent?

Leonardo Perez
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Tracking Satoshi Nakamoto: Was the Bitcoin Creator a CIA Agent?

Among all the possible candidates for the identity of Satoshi Nakamoto, some overlook those who would be closest to the mysterious creator of Bitcoin.

Gavin Andresen was born in Melbourne in 1966, from where he moved to the United States at the age of six. While he generally keeps the beginning of his existence a secret, we do know that he attended Princeton University before graduating with a degree in computer science in 1988.

Who is Gavin Andresen?

Right after finishing his studies, he was hired as a graphics systems developer at Silicon Graphics, a large computer hardware and software company. He will spend most of his time working on the Virtual Reality Modeling Language (VRML) presentation language, which essentially makes it possible to represent 3D universes.

In 1996, Gavin Andresen left Silicon Valley to start his own company, but he continued to work on three-dimensional software for many years.

Starting in the 2000s, the developer distinguished himself by his involvement in creating software for VoIP telephony, online gaming, and credit management.

Andresen’s life changed after discovering Bitcoin in 2010. He opened his crypto faucet and soon after joined the team of developers of the first cryptocurrency. There, Gavin Andresen will code regularly with Satoshi Nakamoto as he develops one of the first token exchange systems.

After Satoshi Nakamoto disappeared, he found himself leading the BTC team and organizing a redesign of the token by creating Bitcoin Core, a more efficient modification of the code written by his creator.

Two years later, he will create the Bitcoin Foundation, of which he will become president before resigning in 2014.

As of that year, Gavin Andresen stepped back from the project but continued to advise in the shadows before completely jumping ship in 2016. However, he will create Bitcoin XT, an evolution of the token with a new block size.

After becoming highly critical of the evolution of the first cryptocurrency, he is now a strong supporter of Bitcoin Cash (BCH). He believes that BCH is closer to the original version of BTC desired by Satoshi Nakamoto and himself.

What he has said about Satoshi Nakamoto

Periodically questioned about the identity of the creator of Bitcoin, Gavin Andresen could not reveal it or make any assumptions. A hesitation that could perhaps be justified by the fact that the developer would never have met Satoshi Nakamoto.

The two men used to communicate via email, suggesting a remote working relationship. Thus, Andresen would not have the slightest idea about the true personality of the mysterious cryptogenius.

However, that all changed in 2016 when Gavin Andresen began publicly claiming that Craig Wright was in fact Satoshi Nakamoto. The thing was finally annulled when the evidence provided by the famous businessman turned out to be false.

Gavin Andresen

@gavinandresen. Continue

Today I’m thinking: @aantonop is a very wise man. And: “we are all Satoshi” is such a lovely idea; he might say “yes” when asked “are you?”

3:33 p.m. meter. • May 5th. 2016

According to an article published by The Guardian, this danger led to the ex-Bitcoin developer being kicked out of the project and modifying the token’s code. The real reason for this decision? His colleagues feared that he would give access and rights to a criminal posing as Satoshi.

Keep in mind, in short, that he never claimed to be the creator of the little orange cryptocurrency.

By Leonardo Perez

Pro-Bitcoin Mexican Senator Indira Kempis Will Seek to Be a Presidential Candidate

Audy Castañeda
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Pro-Bitcoin Mexican Senator Indira Kempis Will Seek to Be a Presidential Candidate

The senator of Nuevo León, for the Movimiento Ciudadano party, Indira Kempis, announced her intention to stand for her party’s candidacy for the presidential elections in Mexico, to be held on June 2, 2024. Indira Kempis is one of the first politicians of the opposition to openly seek the presidential candidacy.

The senator from Nuevo León maintained that it is a “historic” moment for women in the next presidential election in Mexico. Indira Kempis is not the only candidate for a presidential candidacy, since she (if she were a candidate) would compete against Claudia Sheinbaum of the Morena party (same party as President Andrés Manuel López Obrador) and the other candidate for the Broad Front, Xóchitl Gálvez.

Senator Indira Kempis receives the support of the Bitcoin community

Although she has not yet mentioned her position on the financial system or financial inclusion alternatives, Senator Indira Kempis explained in her X account that Bitcoin is a new tool for a “new exercise” of power, where people can transfer value without intermediaries, or without the help of politicians.

The senator announced her intention to run for the presidential candidacy of Movimiento Ciudadano in a recent interview with the Spanish newspaper El País, where she assured that “there will be three women” who will face each other in the next presidential elections. For the senator, gender will be a differentiator in the next election.

Since her public announcement, the senator from Nuevo León has received the support of the Bitcoiner community, who believe that the contest with a pro-Bitcoin candidate is becoming “very interesting”, and others have highlighted that she has been the only promoter of the adoption of Bitcoin. BTC and blockchain technology, and others agreed that if they were a candidate there would be “more actions” to create Web 3.0 in Mexico.

Jan3 from Samson Mow had this to say:

“Nuevo León senator and fellow bitcoiner @IndiraKempis announced their willingness to run for president in the 2024 Mexico elections! Do you think he will incorporate #Bitcoin into the campaign agenda?”

Recently, the bitcoiner NGO “Mi Primer Bitcoin” from El Salvador, started its first “Bitcoin Course”. It happened at Preparatory School No. 20, located in the municipality of Santiago, in Nuevo León, Mexico. The educational day was carried out together with the senator of Indira Kempis.

Indira Kempis and her history of supporting Bitcoin

In the last year, the senator expressed in public forums such as Talent Land or Bitcoin Conference, her position in favor of legalizing Bitcoin in Mexico. She even expressed her interest in discussing her pro-Bitcoin position with important figures. One of them was the president of Mexico, Andrés Manuel López Obrador, about the advantages of implementing BTC in the country.

In the year 2022, Indira Kempis presented her “Initiative with a Draft Decree that reforms the 2nd article of the Monetary Law of the United Mexican States”. In it, she promoted a central bank-issued digital currency (CBDC), while BTC was an initiative, not a law.

By Audy Castañeda

Is It a Good Idea to purchase Bitcoin Despite the fact It’s Down?

Leonardo Perez
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Is It a Good Idea to purchase Bitcoin Despite the fact It’s Down?

Early in 2023, we saw an extraordinary rally, but continuous macroeconomic uncertainties and other factors have been affecting the price of Bitcoin (BTC – 1.65%)

Last August 16, Bitcoin started to go down, at one point losing more than 10%, marking the end of a long period of record volatility in history.

Everybody is familiar with these repetitive ups and downs of Bitcoin; therefore, the recent selloff is hardly surprising. The first thing we need to focus on is not projecting the likelihood of Bitcoin entering a new bull market, but getting deeper to figure out the features, and mechanisms of what makes Bitcoin unique and why it may currently represent a suitable moment for investors to include more Bitcoins to their wallets while it is traded under $30,000.

New hash rate record

Not having a single entity managing funds, that is, cryptocurrency is a decentralized network,  Bitcoin holders must trust the fact that blockchain is reliable and safe. According to some current trends, said confidence should be higher than ever.

Recently hash rates achieved is highest pick in history and this translates to a strong security of the blockchain. This also is a sign that more and more miners are uniting Bitcoin networks through more modern equipment.  Additionally, even though some ups and downs, it has grown progressively for a decade. This means that the integrity of the system is increasing.

Historical supply shortage

Halving is a remarkable feature; a mechanism added to Bitcoin’s its code.

A halving takes place every 210,000 blocks and is included in the blockchain. At present, a miner receives 6.25 bitcoins as a reward, but after eight months, the next halving will take place and decrease it to 3,125 bitcoins.

It is quite clear that the basic dynamics of supply and demand apply to Bitcoin due to the decreasing rate of growth in the supply of said blockchain. This means that if fewer bitcoins get to the market, and the demand stays minimum the same, prices should go up.

Having a new halving would be more than enough to benefit from Bitcoin’s recent fall. Nevertheless, data shows that the supply shock of this halving may be unlike any other in Bitcoin history owing to an additional element.

According to data, the amount of bitcoins on exchanges shows a reliable trend of increasing supply until March 2020. It was at that time when the supply peaked at almost 3.2 million coins. At 2.2 million, the number of coins available today is the same as it was in spring 2018. Bitcoin supply growth halving is the most practical explanation for the aforementioned.

Having the next halving scheduled for April 2024, the available supply of Bitcoin will likely face another shock and continue to decline. The real scarcity of Bitcoin, combined with the decreasing pace of supply growth, may see the price of Bitcoin pushed and pulled by supply and demand dynamics more than ever, making the recent drop by below $30,000 is a better opportunity to buy as investors remain focused on short term uncertainty.

By Leonardo Pérez

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