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- GENSLER Rejects BTC Filings?
Gary Gensler contemplating the destruction of crypto.
Gensler Playing Games?
The U.S. Securities and Exchange Commission (SEC) has reportedly deemed recent applications for spot bitcoin exchange-traded funds (ETFs) by numerous asset management firms as insufficient, according to sources close to the issue.
The SEC conveyed to Nasdaq and CBOE Global Markets, who put forth the applications for asset managers including BlackRock and Fidelity Investments, that the filings lacked clarity and thoroughness.
The recent months have seen a significant rise in the prices of bitcoin and other related stocks, particularly since BlackRock submitted an application to the SEC for a bitcoin-holding ETF. Since its filing in mid-June, the value of the cryptocurrency has gone up by around 20%, reaching over $30,000, a peak not seen since April. Correspondingly, the stock value of Coinbase Global, the enlisted custodian of the BlackRock fund's holdings, has jumped over 30% during this period.
Taking a cue from BlackRock, several traditional and cryptocurrency asset managers have either reinitiated or revised their spot bitcoin ETF applications. Fidelity Investments, Ark Investment Management led by Cathie Wood, Invesco, WisdomTree, Bitwise Asset Management, and Valkyrie are among the firms who have taken similar action recently.
Manipulation?
The recent move by some of the world's leading financial firms to file applications for spot bitcoin ETFs does raise some eyebrows, and it's not unreasonable to entertain the theory that these filings could be a strategic maneuver aimed at inflating the cryptocurrency market.
By publicizing their intent to establish bitcoin ETFs, these firms may be stirring up excitement and anticipation in the market, which could lead to a surge in buying activity and, consequently, an increase in bitcoin's price. This price inflation would be advantageous for these firms, especially if they already hold significant positions in bitcoin.
If this is the case, they could potentially use the speculator-driven liquidity as an exit strategy, selling off their positions at a profit while the market is still in an upswing. However, without concrete evidence, this remains speculative conjecture. As always, transparency and regulatory oversight are key to ensuring fair play and market stability.
1.5 Million Bitcoin Left?
Bitcoin halving, sometimes referred to as "the halvening," is an event that happens approximately every four years, or every 210,000 blocks of transactions added to the blockchain. During this event, the rewards for mining Bitcoin are cut in half. This means that the rate at which new Bitcoin enters circulation is reduced, effectively slowing down the creation of new Bitcoin. The last halving occurred in May 2020, and the next one is expected to happen in 2024, assuming a block generation time of around 10 minutes.
These two factors - the finite supply of Bitcoin and the halving events - have significant implications for Bitcoin's price. As the supply of new Bitcoin diminishes and demand remains high or even increases, the price of Bitcoin could potentially rise due to the basic economic principle of supply and demand.
The halving events play into this by decreasing the rate at which new Bitcoin is created and thus enters the market. This slows the rate at which the total supply increases, potentially leading to increased prices if demand stays the same or grows.
The race to amass Bitcoin is in full swing, particularly amidst the ongoing bear market, when prices are hitting rock bottom. Initially, Bitcoin was conceived as a peer-to-peer currency that didn't require permission, but it now appears to be majorly concentrated among a select few affluent institutions and corporations. What could be the implications if the Federal Reserve begins to heavily invest in Bitcoin? Could this possibly align with the original vision Satoshi Nakamoto had for this cryptocurrency?