All articles tagged with #bitwise
BlackRock, Grayscale, and Bitwise have filed amended 19b-4 forms with the SEC for their proposed spot ether ETFs, removing staking provisions to avoid regulatory issues. This move follows similar amendments by other firms like Fidelity and VanEck, and has led to increased optimism about the approval of ether ETFs, with analysts raising approval odds to 75%.
Bitwise CIO Matt Hougan predicts that the overwhelming demand for Bitcoin spot ETFs will continue for years, with professional investors still unable to buy them and a series of due diligence processes expected to change this over the next two years. Since launching in January, Bitcoin ETFs have absorbed net inflows of $11.7 billion, representing a significant increase in institutional interest. Demand from accumulation addresses and institutional investors has driven this growth, leading to a preference for higher Bitcoin portfolio shares, and most institutional investors remain underinvested in Bitcoin, with the potential for a 4% position representing only 100 basis points of additional risk in a regularly rebalanced portfolio.
Bitwise's chief investment officer anticipates increased demand for spot bitcoin ETFs as larger U.S. wirehouses prepare to join in, with current demand driven by retail investors, hedge funds, and independent financial advisors. The ten spot bitcoin ETFs have seen record-breaking trading volume and inflows, with BlackRock's iShares Bitcoin ETF leading in assets under management, followed by Fidelity's FBTC, ARK/21Shares' ARKB, and Bitwise's BITB. Expecting consolidation, Hougan foresees six to eight of the ETFs surviving long term.
Bitwise Asset Management has updated its S-1 filing with the SEC, revealing a $200 million seed investment for its proposed spot Bitcoin ETF, significantly larger than BlackRock's $10 million seed investment for a similar fund. The SEC's decision on the approval of spot Bitcoin ETFs is expected in early January 2024, which could be a pivotal moment for the cryptocurrency market. Bitwise has not named its authorized participant yet, unlike other firms such as Valkyrie Investments. The anticipation of these ETFs is high as they could lead to greater investor participation and market stability. Bitwise is also planning to launch a spot Ethereum ETF soon.
Asset manager BlackRock and crypto investment firm Bitwise have filed amended S1 forms with the SEC, indicating that they are addressing further questions from the regulator regarding their spot Bitcoin ETF applications. The updated filings include changes related to security, risks, disclosures, and the structure of the Trust. Other applicants, including Fidelity and WisdomTree, are expected to follow suit. The SEC is expected to make a decision on approving spot Bitcoin ETFs by January 10th, with analysts predicting a 90% chance of approval.
The founders and co-CEOs of Bitwise, Irma Olguin Jr. and Jake Soberal, have been federally charged for a $100 million fraud scheme. They are accused of fabricating financial information, lying to investors and board members, and using fraudulent means to obtain investments and loans. The charges allege that the fraud began months earlier than previously known. Bitwise Industries collapsed in May, leaving 900 employees furloughed. Olguin Jr. and Soberal have surrendered themselves and are scheduled to appear in federal court.
Bankrupt crypto exchange FTX and its debtors have requested approval from the U.S. bankruptcy court to sell approximately $744 million worth of trust assets, including funds from Grayscale and Bitwise, through an investment adviser. The sale aims to prepare for forthcoming distributions to creditors and expedite the selling process. FTX, once a major crypto exchange, went bankrupt in November 2023 following reports of customer fund misappropriation. FTX founder Sam Bankman-Fried was recently found guilty of defrauding customers and lenders, potentially facing 15-20 years in jail. The trust assets consist of Grayscale and Bitwise funds, allowing investors exposure to digital assets without direct ownership.
BlackRock and Bitwise have both filed for spot bitcoin ETFs, but their proposals differ. Bitwise's latest filing includes more legal analysis around the surveillance of bitcoin via the CME futures markets, while BlackRock is willing to enter into a surveillance-sharing agreement with a US-based spot trading platform for bitcoin in addition to its agreement with the CME. Industry watchers expect more issuers to re-join the race for a spot bitcoin ETF, including Ark Invest, 21Shares, VanEck, Valkyrie, WisdomTree, Global X, and Invesco.
Bitwise Industries, a Fresno-based tech company, has fired its CEOs, Jake Soberal and Irma Olguin Jr., amid mounting financial problems. The company furloughed its 900 employees without notice on Memorial Day, and newly uncovered legal documents have revealed more financial issues. Bitwise is also facing unpaid business taxes and stopped making payments to insurance companies and 401K contributions. The board of directors has launched an investigation into the company's mismanagement of funds, and Ollen Douglass, a board member with a background in auditing, has taken over as interim president.
Bitwise, a tech company, allegedly owes $6 million to an investor for a loan it took out to repay its tax refund check. The company sold its $6.1 million in tax credits to an investor, 1861 Acquisition, in exchange for a fee. Bitwise deposited the checks from the IRS into its bank account, violating its contract with the investor. The investor filed a lawsuit against Bitwise, and a judge froze its bank accounts. A settlement was reached, with Bitwise promising to pay back the $6 million it owed, plus nearly $200,000 in interest.