Asset managers expect inflows into Bitcoin (BTC) exchange-traded funds (ETFs) to further accelerate in the second half of 2024. For example, Bitwise is participating in “serious due diligence discussions with institutions representing trillions of dollars in assets.” ” We are looking to add or increase our exposure to Bitcoin ETFs in the coming months.
Bitwise Chief Investment Officer Matt Hogan said in a note to investors that many retail investors, family offices, hedge funds and venture capital firms will increase their stakes in the Bitcoin Spot ETF by the end of June. He said he was ready.
International investors are also interested in investing in Bitcoin ETFs. The Securities and Exchange Commission of Thailand has reportedly amended rules to allow private funds to invest in spot Bitcoin ETFs traded on US exchanges. Brazil took a similar step a few weeks ago, allowing investors to invest in BlackRock ETFs through depositary receipts.
But Bitcoin hype alone may not be enough to shore up Coinbase's cash flow. The exchange plans to raise $1 billion through senior convertible notes to pay off previous bond issuances.
This week on Crypto Biz, in addition to the buzz around Bitcoin, we explore the Ether (ETH) ETF, Ubisoft as an XPLA validator, Coinbase's challenges, and the outlook for global banks working on blockchain.
SEC radio silence on Ethereum ETF 'not a good sign' — Bloomberg Analyst
The lack of communication from the U.S. Securities and Exchange Commission (SEC) to issuers regarding the Ether ETF could bode ill for those hoping for Ether ETF approval by May. Bloomberg ETF analyst Eric Balchunas told Cointelegraph that there are a number of reasons why he lowered the likelihood of Ether ETF approval to just 35%. Analysts said the proponents have less than 70 days left until the deadline, but they have yet to hear back from the SEC or comment. “That's not a good sign,” Balciunas said. Additionally, Balciunas said Gary Gensler's stance on Ether may also be a factor, arguing that Gensler still views Ether as a security.
Ubisoft has become a validator on the XPLA blockchain
Ubisoft, the maker of several hit game franchises such as Assassin's Creed and Far Cry, has joined the XPLA blockchain as a node validator. According to an XPLA press release, Ubisoft will “actively participate in determining governance proposals” as part of the partnership. France-based Ubisoft is one of the world's largest gaming companies. The company's games have sold a total of approximately 800 million titles. Its market capitalization is approximately $2.75 billion, making it the second largest company in Europe after Poland's CD Projekt Red ($2.99 billion). Some of the most popular intellectual properties for games on the XPLA blockchain include Walking His Dead: All Stars and Summoners War: Chronicles.
Coinbase stock falls after-hours as exchange plans $1 billion convertible note offering
Cryptocurrency exchange Coinbase plans to raise $1 billion from senior convertible notes for debt repayments and “general corporate purposes.” The bonds will be offered privately only to qualified institutional investors and must be repaid by April 1, 2030, unless repurchased, redeemed, or converted earlier, the company said in a March 12 blog post. said. Bonds have priority over common stock because the holder has priority rights in the event of bankruptcy or liquidation. Coinbase said it intends to use the proceeds to repay its outstanding convertible senior notes maturing in 2026, 2028 and 2031. The three bonds have interest rates of 0.50%, 3.375%, and 3.625%, respectively.
Banks around the world participate in large-scale blockchain pilot test
Major financial institutions such as Goldman Sachs, BNY Mellon, and Cboe Global Markets have completed large-scale pilot tests using blockchain technology. Institutional investors can access tokenized assets, fund registration, digital cash, repos, securities lending, margin management, and more on Canton Network, launched in May 2023 by startup Digital Asset Holdings. Executed more than 350 simulated transactions through distributed ledger technology in the field. The pilot included 15 asset managers, 13 banks, four custodians, three exchanges, and stablecoin issuer Paxos Trust.
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