Bitcoin News and Finance: What You Need to Know

Hong Kong’s financial regulator has published rules for spot bitcoin exchange-traded fund (ETF) issuers, allowing the use of both cash and in-kind creation models. This approach contrasts with the U.S. Securities and Exchange Commission (SEC), which insists on the exclusive use of the cash creation model for spot bitcoin ETFs. Hong Kong Publishes Spot Bitcoin ETF Rules The Hong Kong Securities and Futures Commission (SFC) published a circular on Dec. 22 for “authorized funds with exposure to virtual assets.” The regulator explained that the circular sets out the requirements under which the SFC would consider authorizing investment funds with exposure to virtual assets (VAs) of more than 10% of their net asset value (NAV) for public offerings in Hong Kong. “Globally, the VA landscape has been evolving rapidly,” the SFC stated, noting that a broader range and a larger number of investment products providing crypto exposure, including crypto exchange-traded funds (ETFs), are now avai...

Grayscale Investments has adopted the cash creation model, instead of the in-kind model, for its proposed spot bitcoin exchange-traded fund (ETF). However, the crypto asset manager warned of adverse consequences. “A spot commodity exchange-traded product that only employs cash creations and redemptions and does not permit in-kind creations and redemptions is a novel product that has not been tested, and could be impacted by any resulting operational inefficiencies,” the firm’s filing with the U.S. Securities and Exchange Commission (SEC) details. Grayscale’s Spot Bitcoin ETF Filing Amendment Grayscale Investments filed the second amendment to its registration statement (Form S-3) for Grayscale Bitcoin Trust with the U.S. Securities and Exchange Commission (SEC) on Dec. 26. The crypto asset manager outlined how its proposed spot bitcoin exchange-traded fund (ETF) will use the cash creation method, instead of the in-kind method. “The trust is currently able to accept cash orders,” t...

The U.S. Securities and Exchange Commission’s former head of internet enforcement has warned that spot bitcoin exchange-traded funds (ETFs) “will create yet another Wall Street fee-sucking investor scam of epic proportions.” In addition, he stressed that it will likely be the most centralized crypto contraption conceivable. Ex-SEC Official’s Spot Bitcoin ETF Warnings Former U.S. Securities and Exchange Commission (SEC) official John Reed Stark issued some warnings about spot bitcoin exchange-traded funds (ETFs) in a post on social media platform X Monday. Stark is currently president of cybersecurity firm John Reed Stark Consulting. He founded and served as chief of the SEC Office of Internet Enforcement for 11 years. He was also an SEC enforcement attorney for 15 years. Expressing his skepticism about spot bitcoin ETFs, Stark wrote: “As to whether the approval of a spot bitcoin ETF is a good thing, my view is that it is not.” He cautioned: The very idea of a bitcoin spot ETF rem...

In a recent statement by Sergey Lavrov, Russia’s Foreign Affairs Minister, he noted that the BRICS bloc is set to expand in 2024 with new members including the United Arab Emirates (UAE), Iran, and Saudi Arabia. He revealed that approximately “30 countries would like to establish partner ties with BRICS.” Additionally, as November drew to a close, China and Saudi Arabia forged a currency swap agreement valued at 50 billion yuan ($6.93 billion), which some interpret as Xi Jinping’s move to contest the supremacy of the U.S. dollar. Lavrov: ‘30 Nations Aspire to Collaborate With BRICS’ This year, the BRICS bloc, consisting of Brazil, Russia, India, China, and South Africa, garnered significant attention as an intergovernmental organization. During the 15th BRICS summit in Johannesburg, South Africa, the world observed as the alliance extended invitations to join the bloc to the UAE, Saudi Arabia, Argentina, Egypt, Ethiopia, and Iran. According to Russia’s TASS news agency, Lavrov ann...