BlackRock Bitcoin ETF Targets Seed Capital, HashKey Market Makers, and More
The United States Securities and Exchange Commission (SEC) is counting down to approve the first Bitcoin exchange-traded fund (ETF) in the United States. After several delays, the regulator's deadline is approaching, with market participants expecting a decision as early as January 2024.
In another sign that a green light could be forthcoming, companies awaiting approval have met regularly with SEC officials in recent weeks to discuss their proposals and make adjustments as requested.
If accepted, the largest cryptocurrency will be traded on the market of the main exchanges of Wall Street, Bitcoin (BTC) will open an audience for investors, this time it is a product supported by the most famous investment companies in the world. If rejected, investment managers can appeal the decision, extending the waiting period for investors and Bitcoiners in the United States.
Anticipated open interest in Bitcoin futures on the Chicago Mercantile Exchange (CME) on December 6 led to $5.2 billion in global derivatives, just $200 million below the peak in late October 2021 during the bull market. With BTC open interest jumping, markets are bracing for price volatility and more volatility in 2024.
This week in Crypto Biz we look at BlackRock's seed capital for its spot Bitcoin ETF, HashKey expanding its market-making approach, and Societe Generale issuing bonds on Ethereum.
HashKey Exchange to increase liquidity to mobile market makers
The Hong Kong HashKey exchange will soon allow individual and corporate market makers to offer the exchange. According to the announcement, HashKey allows individuals and entities to apply to become market makers if they trade at least $5 million in cryptocurrency each month. Users and companies receive 0.005% to 0.015% of transaction value as commission, depending on monthly levels or transaction volume. All market makers are exempt from paying commission fees on trades. The exchange has been increasing its service offerings. In November, HashKey launched insurance coverage for users and corporate assets stored in digital wallets.
Market Makers will be joining @HashKeyExchange soon. By projecting a high liquidity account, the exchange opens its doors to individual and corporate participants. https://t.co/2RfbGwUujy
— Cointelegraph (@Cointelegraph) December 5, 2023
BlackRock Receives $100,000 in Seed Funding for Bitcoin ETF — SEC Filing
BlackRock has received $100,000 in seed funding from an unknown investor. The investor agreed to purchase 4,000 shares for $100,000 on October 27, 2023 at $25.00 per share, the investor said, “as required by law in connection with seeding baskets.” According to BlackRock's latest filing, it plans to borrow bitcoins or cash from a commercial mortgage lender in the short term to pay the sponsor's fees. Instead of selling BlackRock BTC (the ETF asset), they can “cash out” with a loan. That way, “they won't have that much impact on the price of BTC.
Societe Generale issues its first green bond on Ethereum.
The third largest bank in France, Societe Generale, has issued its first digital green bond as a security token on Ethereum's public blockchain. The bond, registered by Societe Generale's subsidiary Forge, was announced on November 30 for 10 million euros (about $11 million) and a maturity of three years. The “green” rating means that the net proceeds are used to finance or refinance products and companies in the category of qualifying green activities. The bond's digital infrastructure provides 24/7 open access to information on its carbon footprint through the bond's smart contract. Another innovation of the bond is a technical option for investors to place securities on-chain through Euro CoinVertible, a euro-pegged stablecoin due to be released by Forge in April 2023.
Societe Generale has registered its first digital green bond as a security token on the #Ethereum public blockchain directly by Societe Generale-FORGE.
— Societe Generale (@SocieteGenerale) December 4, 2023
US Crypto Companies Spend More on Lobbying in 2023 than FTX Collapse: Report
Companies related to the crypto and blockchain industry in the US spent about $3 million more in the first three quarters of 2023 compared to the same period in 2022. According to data from government transparency group Open Secrets, crypto companies spent about $19 million. In the year In lobbying activity from January to September 2023, it is 19% higher than in the same period in 2022. Coinbase reportedly led the spending on lobbying with over $2 million, followed by Crypto.com, Blockchain Association and Binance. In the year Before its liquidation in November 2022, FTX was one of the biggest spenders in the crypto space, with donations to US lawmakers' campaigns and marketing efforts.
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