ETF

Three crypto ETFs to be delisted in Australia as crypto winter continues

Two of the funds just received green lights for trading in the country in May, following regulatory approval.

The companies behind the Cosmos Purpose Ethereum Access ETF, Cosmos Purpose Bitcoin Access ETF, and Cosmos Global Digital Miners Access ETF filed a request to revoke their quotations on Cboe Australia, according to letters disclosed on Nov. 2. 

The decision to revoke the quotes reflects the crypto winter’s impact on demand for crypto assets, not the management teams’ belief in the space’s future, according to reports. Each of the three funds has a net asset value under $1 million.

On Oct. 31, Cosmos had requested that trading of its Bitcoin and Ether ETFs be halted. A trading halt was also requested separately by One Managed Investment Funds Limited for the digital miners ETF.

Two of the funds received green lights for trading in the country just in May, after getting regulatory approval, as reported by Cointelegraph. For the first Bitcoin ETF listing in Australia, Cosmos landed the minimum of four market participants to support the 42% margin requirements needed to cover risk. At the time, local players forecasted inflows up to $1 billion for the class of assets.

According to a recent report from CryptoCompare, the average daily trading volume of institutional crypto products had fallen 34.1% — to $61.3 million in October. The average daily volumes of almost all the products covered in the report decreased by -24.3% to -77.5% in the month.

October’s Bitcoin-based products recorded weekly net flows of $8.37 million on average, while short Bitcoin-based products saw the largest outflows, averaging $5.03 million, as per the report.

The downturn in prices has had an impact on other crypto exchange-traded funds. In October, Valkyrie Funds announced its plans to close the Valkyrie Balance Sheet Opportunities ETF, a crypto investment product offering indirect exposure to BTC.

The fund was delisted from the Nasdaq exchange on Oct. 31, with remaining investors receiving a cash distribution equal to the net asset value of the held shares. Valkyrie said the decision was part of an ongoing review of products as the firm aims to “best meet client demand.”

Hong Kong financial regulator issues guidelines for crypto futures ETFs

The Securities and Futures Commission hinted it would follow in the CME’s footsteps by only initially allowing listings of ETFs linked to Bitcoin and Ether futures.

The Securities and Futures Commission of Hong Kong has set up requirements for entities considering a public offering of an exchange-traded fund (ETF) tied to cryptocurrency futures.

In an Oct. 31 circular, the SFC said that in addition to previously imposed requirements on unit trusts and mutual funds for authorization of a crypto futures ETF, management companies in Hong Kong would need to “have a good track record of regulatory compliance” as well as three years of experience managing ETFs, with consideration for similar investment vehicles. The financial regulator hinted it would follow in the Chicago Mercantile Exchange’s footsteps by only initially allowing listings of ETFs linked to Bitcoin (BTC) and Ether (ETH) futures.

“Only [virtual asset, or VA,] futures traded on conventional regulated futures exchanges are allowed, subject to the management company demonstrating that the relevant VA futures have adequate liquidity for the operation of the VA Futures ETF and the roll costs of the relevant VA futures contracts are manageable and how such roll costs will be managed,” said the SFC.

The financial regulator added that the net derivative exposure of any crypto futures ETF “shall not exceed 100% of the ETF’s total net asset value,” and companies should expect to adopt an active investment strategy to account for incidents including market disruptions. The SFC also said ETF issuers were to “carry out extensive investor education” before the launch of any crypto investment vehicle in Hong Kong.

The SFC circular came as part of a policy update from Hong Kong’s government, which announced on Oct. 31 that it was “ready to engage” with global crypto exchanges on regulatory issues. The government said it planned to launch a number of pilot projects, including those aimed at nonfungible tokens, green bond tokenization, and a digital Hong Kong dollar.

Christopher Hui, Hong Kong’s secretary for financial services and the reasury, said:

“We recognise the potential of DLT and Web 3.0 to become the future of finance and commerce, and under proper regulation they are expected to enhance efficiency and transparency. The Government is prepared to embrace this future, and we welcome the clustering of Fintech and VA community and talents in Hong Kong, and we will promote the sustainable development of financial services across the whole VA value chain.”

Related: Not like China: Hong Kong reportedly wants to legalize crypto trading

Hong Kong’s policy aims would seemingly put it on a different path than China, despite the political lines between the special administrative region and bordering nation becoming more blurred in recent years. The Chinese government has cracked down on crypto firms operating in the country but continues to move forward with piloting its central bank digital currency, the digital yuan.

Vitalik Buterin ‘kinda happy’ with ETF delays, backs maturity over attention

Sharing his opinion around crypto regulations, Buterin spoke against the regulations that have an impact on the inner workings of a crypto ecosystem.

The co-founder of Ethereum, Vitalik Buterin, believes that the crypto ecosystem needs to mature and be in tune with the regulatory policies that allow crypto projects to operate internally freely.

Sharing his opinion around crypto regulations, Buterin spoke against the regulations that have an impact on the inner workings of a crypto ecosystem.

Considering the current circumstances, he believed it was better to have regulations that allow inner independence to crypto projects, even if it hampers mainstream adoption. Buterin opined:

“I’m actually kinda happy a lot of the exchange-traded funds (ETFs) are getting delayed. The ecosystem needs time to mature before we get even more attention.”

The use of Know Your Customer (KYC) on decentralized finance (DeFi) frontends was another concern pointed out by Buterin. However, he highlighted the need for KYC on crypto exchanges, which has seen wide-scale implementations. According to the entrepreneur:

“It (KYC on DeFi frontends) would annoy users but do nothing against hackers. Hackers write custom code to interact with contracts already.”

In this regard, Buterin made three recommendations, as shown below.

On an end note, Buterin recommended using zero-knowledge proofs to meet regulatory requirements while preserving users’ privacy, stating that “I would love to see rules written in such a way that requirements can be satisfied by zero knowledge proofs as much as possible.”

Related: The Merge brings down Ethereum’s network power consumption by over 99.9%

Google recently added a search feature that allows users to view Ether (ETH) wallet balances by searching their addresses.

Acknowledging the recent Ethereum Merge upgrade, Google embedded a countdown ticker dedicated to Ethereum’s transition from proof-of-work (PoW) to proof-of-stake (PoS) consensus mechanism.

October sees lowest-ever daily trading volume for crypto products: Report

Despite the bad numbers of daily trading, there are some signs of market revival, at least for Bitcoin-based products.

As the crypto market shows signs of a gradual recovery, with Bitcoin (BTC) holding above the psychologically important $20,000 level after its initial crash to $17,600 in June, this month still sets a record low for an average daily aggregate product volume across all digital asset investment products. 

According to the report from CryptoCompare, published on Oct. 27, the average daily trading volume of institutional crypto products had fallen 34.1% — to $61.3 million in October. Almost all the products covered in the report recorded a large decline in average daily volumes, ranging from -24.3% to -77.5%.

The downward trend in daily trading is not limited to the recent market turmoil but dates back to November 2021, with a slight exception for May 2022. This October became the second month since September 2020 in which average daily volumes have fallen under $100 million.

However, the report traces some optimistic developments in other market markers. The total assets under management (AUM) across all digital asset investment products rose 1.76% to $22.9 billion compared with September. This was the first increase in AUM since July.

Related: A record 55,000 Bitcoin, or over $1.1 billion, was just withdrawn from Binance

AUM in trust products, which accounts for 77.3% of the market, rose 2.34% to $17.7 billion in October, while AUM represented by exchange-traded funds (ETFs) fell 1.59% to $2.21 billion.

Another important marker is net flows. This October, weekly net flows for Bitcoin-based products recorded inflows averaging $8.37 million in October, and short Bitcoin-based products recorded the largest outflows, averaging $5.03 million. The situation is a lot worse for Ether (ETH) products, which recorded the second-largest negative net flows of $2.87 million. 

At the same time, Ethereum blockchain’s native token ETH recorded better gains than BTC by Oct. 26, jumping approximately 14% to reach its weekly high of $1,554. As of publication time, the price of ETH stands at $1,508. 

Grayscale BTC Trust trades at a record 36.7% discount, but is it justified?

Grayscale’s BTC trust trades at a 36.7% discount to their actual BTC holdings, and it’s possible that more than just the market-wide downtrend stands as the reason for the spread.

U.S. investors have been waiting for a Bitcoin exchange-traded fund (ETF) approval since May 2014 when the Winklevoss Bitcoin Trust filed an amendment request at the Securities and Exchange (SEC). 

Over the years, the SEC has rejected every applicant and the latest denial was issued to WisdomTree’s application for a spot Bitcoin ETF on Oct. 11. The SEC concluded that the offer did not have the ability “to obtain information necessary to detect, investigate, and deter fraud and market manipulation, as well as violations of exchange rules and applicable federal securities laws and rules.”

Bitcoin investment trust vehicles have existed since 2013, but they have been restricted to accredited investors. Launching a spot-based BTC ETF would open the market to retail investors and a broader array of mutual funds in the industry.

At the moment, U.S. regulators are reluctant to release what many believe would be a more fair and transparent product for Bitcoin. A conflicting reality is, while BTC spot ETFs continue to be rejected, the exact same product has long been available for bonds, global currencies, gold, Chinese equities, real estate, oil and silver.

The Grayscale Bitcoin Trust Fund (GBTC), a U$ 12.3 billion investment fund, is currently trading at a record-high 36.7% discount versus its Bitcoin holdings, but this might not be a buy the dip-type of discount. The gap started after the Toronto Stock Exchange launched the Purpose Bitcoin ETF in February 2021, which is a spot investment product.

What is an exchange-traded fund?

An ETF is a security type that holds diversified underlying investments, including commodities, stocks or bonds. The ETF might resemble a mutual fund because it is pooled and managed by its issuer.

SPY, the ETF that tracks the S&P 500 index, is the most recognizable example of the instrument. The mutual fund is currently managed by State Street and carries $328 billion in assets under management.

More exotic structures are also available, like the ProShares UltraShort Bloomberg Crude Oil (SCO). This fund uses derivatives and aims to offer two times the daily short leverage on oil prices, meaning investors are effectively betting on a downturn in oil prices.

Buying an ETF gives the investor direct ownership of its contents, creating different taxation events versus holding futures contracts and leveraged positions.

Trust funds, like GBTC do not offer redemption or conversion rights

Investment trust funds sit outside the SEC’s authority and are actually regulated by the U.S. Office of the Comptroller of the Currency.

Grayscale’s GBTC is the absolute leader in the cryptocurrency market, even though it has been structured as a company — at least in regulatory form. The investment trust is considered a closed-end fund, meaning the number of available shares are limited.

Consequently, GBTC shares are not freely created, nor do they offer a redemption program. This inefficiency creates significant price discrepancies versus the fund’s underlying Bitcoin holdings. In contrast, an ETF allows the market maker to create and redeem shares, ensuring the premium or discount is at most times minimal.

For instance, Purpose Bitcoin ETF (BTCC.U) held a $3.59 net asset value per share on Oct. 13, and the shares closed at $3.60 on Toronto exchange. Similarly, U.S. derivatives ProShares Bitcoin Strategy ETF (BITO) underlying price was $11.94 on Oct. 13, while its shares traded at $11.95.

Related: Grayscale fires first salvo in case against SEC over Bitcoin ETF refusal

Grayscale is fighting the SEC, but results could take years

In June 2022, the asset manager Grayscale initiated a lawsuit with the SEC regarding converting the GBTC into a spot-based Bitcoin ETF. The firm has been waiting for a final decision from the regulator since filing its application in October 2021.

Grayscale’s senior legal strategist stated that the SEC rejection was “arbitrary” by “failing to apply consistent treatment to similar investment vehicles.” As a result, the asset manager pursued a legal challenge based on the SEC’s alleged violation of the Administrative Procedure Act and Securities Exchange Act.

It must be noted that eight and a half years have passed since the first request for a Bitcoin spot ETF registry was submitted. At the moment, GBTC charges a fixed 2% yearly administration fee, so the 36.7% discount might be justified given that the SEC continues to reject appeals and requests from every fund manager.

In essence, the investment trust product is far less optimal than an ETF, and so far, Grayscale has done little to minimize the impact on GBTC holders.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Grayscale Bitcoin Trust trades at a record 36.7% discount, but is it justified?

Grayscale Bitcoin Trust trades at a 36.7% discount to its actual BTC holdings, and it’s possible that more than just the marketwide downtrend stands as the reason for the spread.

U.S. investors have been waiting for a Bitcoin (BTC) exchange-traded fund (ETF) approval since May 2014, when the Winklevoss Bitcoin Trust filed an amendment request to the United States Securities and Exchange Commission (SEC). 

Over the years, the SEC has rejected every applicant, and the latest denial was issued to WisdomTree’s application for a spot Bitcoin ETF on Oct. 11. The SEC concluded that the offer did not have the ability “to obtain information necessary to detect, investigate, and deter fraud and market manipulation, as well as violations of exchange rules and applicable federal securities laws and rules.”

Bitcoin investment trust vehicles have existed since 2013, but they have been restricted to accredited investors. Launching a spot-based BTC ETF would open the market to retail investors and a broader array of mutual funds in the industry.

At the moment, U.S. regulators are reluctant to release what many believe would be a more fair and transparent product for Bitcoin. A conflicting reality is, while BTC spot ETFs continue to be rejected, the exact same product has long been available for bonds, global currencies, gold, Chinese equities, real estate, oil and silver.

Grayscale Bitcoin Trust (GBTC), a $12.3 billion investment fund, is currently trading at a record-high 36.7% discount versus its Bitcoin holdings, but this might not be a “buy the dip” type of discount. The gap started after the Toronto Stock Exchange launched the Purpose Bitcoin ETF in February 2021, which is a spot investment product.

What is an exchange-traded fund?

An ETF is a security type that holds diversified underlying investments, including commodities, stocks or bonds. The ETF might resemble a mutual fund because it is pooled and managed by its issuer.

SPY, the ETF that tracks the S&P 500 index, is the most recognizable example of this instrument. The mutual fund is currently managed by State Street and carries $328 billion in assets under management.

More exotic structures are also available, like ProShares UltraShort Bloomberg Crude Oil (SCO). This fund uses derivatives and aims to offer two times the daily short leverage on oil prices, meaning investors are effectively betting on a downturn in oil prices.

Buying an ETF gives the investor direct ownership of its contents, creating different taxation events versus holding futures contracts and leveraged positions.

Trust funds like GBTC do not offer redemption or conversion rights

Investment trust funds sit outside the SEC’s authority and are actually regulated by the U.S. Office of the Comptroller of the Currency.

Grayscale’s GBTC is the absolute leader in the cryptocurrency market, even though it has been structured as a company — at least in regulatory form. The investment trust is considered a closed-end fund, meaning the number of available shares are limited.

Consequently, GBTC shares are not freely created, nor do they offer a redemption program. This inefficiency creates significant price discrepancies versus the fund’s underlying Bitcoin holdings. In contrast, an ETF allows the market maker to create and redeem shares, ensuring the premium or discount is at most times minimal.

For instance, Purpose Bitcoin ETF (BTCC.U) held a $3.59 net asset value per share on Oct. 13, and the shares closed at $3.60 on the Toronto Stock Exchange. Similarly, U.S. derivatives ProShares Bitcoin Strategy ETF (BITO) underlying price was $11.94 on Oct. 13, while its shares traded at $11.95.

Related: Grayscale fires first salvo in case against SEC over Bitcoin ETF refusal

Grayscale is fighting the SEC, but results could take years

In June 2022, asset manager Grayscale initiated a lawsuit against the SEC regarding converting GBTC into a spot-based Bitcoin ETF. The firm has been waiting for a final decision from the regulator since filing its application in October 2021.

Grayscale’s senior legal strategist, Donald B. Verrilli, stated that the SEC rejection was “arbitrary” in “failing to apply consistent treatment to similar investment vehicles.” As a result, the asset manager pursued a legal challenge based on the SEC’s alleged violation of the Administrative Procedure Act and Securities Exchange Act.

It must be noted that eight and a half years have passed since the first request for a Bitcoin spot ETF registry was submitted. At the moment, GBTC charges a fixed 2% yearly administration fee, so the 36.7% discount might be justified given that the SEC continues to reject appeals and requests from every fund manager.

In essence, the investment trust product is far less optimal than an ETF and, so far, Grayscale has done little to minimize the impact on GBTC holders.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Valkyrie Funds to liquidate Bitcoin-related ETF by late October

Despite delisting VBB, Valkyrie still continues to manage the Bitcoin Strategy ETF and its Bitcoin futures ETF and the Valkyrie Bitcoin Miners ETF.

Valkyrie Funds, a major cryptocurrency fund manager in the United States, will soon be liquidating one of its Bitcoin (BTC)-related exchange-traded funds (ETFs).

The firm announced on Oct. 11 plans to close the Valkyrie Balance Sheet Opportunities ETF, a crypto investment product offering indirect exposure to BTC.

The fund will be delisted from the Nasdaq Exchange as Valkyrie plans to liquidate the ETF on Oct. 31, 2022.

According to the announcement, shareholders will be able to sell shares up until the end of the trading day on Oct. 28, 2022. Any investors still holding the fund shares at liquidation will receive a cash distribution equal to the net asset value of their shares, the announcement notes.

The firm also said that it will satisfy expenses related to the liquidation and potential distribution of cash proceeds, aside from brokerage expenses.

Valkyrie noted that the decision to liquidate the fund has been taken as part of an ongoing review of products as the firm aims to “best meet client demand,” stating:

“This action was taken after thorough consultation with the Firm’s Board of Directors and comes after it was determined that discontinuing the fund was the best course of action for all involved.”

Valkyrie Funds is one of the major companies in the U.S. issuing cryptocurrency ETFs. The company is known for launching one of the first Bitcoin futures ETFs in the U.S. in October last year following approval from the U.S. Securities and Exchange Commission. The ETF product is called the Valkyrie Bitcoin Strategy ETF (BTF).

The soon-to-be-delisted Valkyrie Balance Sheet Opportunities was launched in December 2021, offering exposure to securities of U.S. companies with Bitcoin on their balance sheets. Listed under the ticker VBB, the ETF tracks companies like crypto custodians, exchanges and trading firms.

Related: SEC rejects WisdomTree’s application for a spot Bitcoin ETF… again

Despite delisting VBB, Valkyrie still continues to manage funds, including the BTF and the Valkyrie Bitcoin Miners ETF (WGMI). The latter was launched in February 2022, with 80% of assets tracking securities of companies that derive their revenue or profits from BTC mining.

The firm did not immediately respond to Cointelegraph’s request for comment. This article will be updated pending new information.

SEC rejects WisdomTree’s application for a spot Bitcoin ETF… again

Similar to its December 2021 rejection of a WisdomTree spot Bitcoin investment vehicle, the SEC cited concerns about fraud and market manipulation.

The United States Securities and Exchange Commissio  has disapproved of a rule change that would allow exchange-traded fund (ETF) provider WisdomTree to list and trade shares of a Bitcoin BTC ETF.

According to an Oct. 11 filing, the SEC rejected a proposed rule change that would have allowed WisdomTree to list and trade shares of its Bitcoin Trust on the Cboe BZX Exchange after several delays due to extensions and comment periods. WisdomTree first filed the spot Bitcoin ETF application on Jan. 25 with publication in the federal register on Feb. 14.

The SEC said any rule change in favor of approving the ETF would not be “‘designed to prevent fraudulent and manipulative acts and practices” nor “protect investors and the public interest.” Will Peck, WisdomTree’s head of digital assets, told Cointelegraph in a September interview that the SEC’s market manipulation claims would likely be “the hardest nut to crack” in an ETF approval.

Peck said at the time that WisdomTree was “kind of watching this and seeing what’s going to happen” but did not plan to take Grayscale’s approach in filing a lawsuit with the SEC over the rejection of its Bitcoin ETF. He added the company planned to “engage more productively” with the U.S. regulator, positing the SEC would “ultimately get there” in approving a spot crypto investment vehicle.

Similar to its December 2021 rejection of a WisdomTree spot Bitcoin ETF offering, the SEC concluded that the BZX exchange did not have the ability “to obtain information necessary to detect, investigate, and deter fraud and market manipulation, as well as violations of exchange rules and applicable federal securities laws and rules.” In addition, the financial regulator said BZX had been unable to provide data demonstrating ”that wash trading and other possible sources of fraud and manipulation in the broader Bitcoin spot market will be ignored by market participants.”

“BZX has not met its burden of demonstrating an adequate basis in the record for the Commission to find that the proposal is consistent with Exchange Act Section 6 (b) (5), 225 and, accordingly, the Commission must disapprove the proposal,” said the filing.

Related: Why the world needs a spot Bitcoin ETF in the US: 21Shares CEO explains

To date, the SEC has not approved a single spot crypto ETF application in the United States, despite criticism from many lawmakers, regulators and industry leaders. However, the regulator began approving ETFs linked to Bitcoin futures starting in 2021, giving the green light to companies including ProShares and Valkyrie.

Cointelegraph reached out to WisdomTree, but did not receive a response at the time of publication.

Crypto Biz: NYDIG stacks sats, Elon buys Twitter

Amid the bear market, positive signs of crypto adoption continue to emerge. Also, Elon Musk is finally moving ahead with plans to acquire Twitter.

For all the doom and gloom surrounding crypto markets these days, there’s plenty to be excited about. Institutional investors are still actively buying Bitcoin (BTC), venture capital is still investing heavily into blockchain startups and forthcoming regulatory clarity is likely to pave the way for wider adoption, perhaps as early as next year. This week’s Crypto Biz newsletter features some exciting stories about adoption, not to mention Elon Musk’s deal to buy Twitter (finally).

Sidebar: I had the opportunity to attend Circle Internet Financial’s Converge22 conference in San Francisco last week. In a media session on the sidelines of the conference, Circle CEO Jeremy Allaire said USD Coin’s (USDC) “stablecoin” label is a misnomer and that we should start thinking about the asset as a true form of a digital dollar. I also had the opportunity to interview several leaders from the blockchain community on topics related to interoperability, market manipulation, CeFi risks and crypto’s multichain future.

Circle CEO Jeremy Allaire speaking at the Converge22 conference in San Francisco, California.

NYDIG raises $720M as Bitcoin balance hits all-time high

A recent filing with the United States Securities and Exchange Commission (SEC) revealed that New York Digital Investment Group had raised roughly $720 million for its institutional Bitcoin fund. The company, which offers cold storage custody solutions to institutional investors, also increased its BTC holdings by nearly 100% year-over-year, clearly showing its intent to hodl during the market downturn. Once again, NYDIG and its investors demonstrate that depressed market conditions are opportune times to buy Bitcoin. Are you ready to get greedy when others are fearful?

Bitwise launches Web3 ETF for institutional and retail investors

Speaking of institutional investors, they will also have more streamlined access to Web3 investment opportunities as per a new exchange-traded fund offered by Bitwise. The new Bitwise ETF, which was announced this week, provides “focused exposure to one of the fastest-emerging themes in technology.” The fund’s launch coincides with billions of dollars in venture capital pouring into Web3 startups over the past 10 months. Not quite sure what Web3 means? Don’t worry, you’re not alone. We know that it refers to some future iteration of the internet that’s more decentralized and powered by blockchain technology. Beyond that, definitions and interpretations vary.

Musk’s deal for Twitter looks set to go with original $44B price tag

Entrepreneur and Dogecoin (DOGE) enthusiast Elon Musk will buy Twitter after all — opening up the real possibility that the social media network will become increasingly crypto-compatible. On Oct. 4, the eccentric billionaire confirmed his intent to acquire Twitter for $44 billion, or $54.20 a share, more than six months after originally signaling plans to do so. As we await a shake-up at Twitter’s headquarters, expect to see your follower count shrink as the newly acquired company begins purging spam bots.

Basel Committee: Banks worldwide reportedly own 9.4 billion euros in crypto assets

While most institutional investors await regulatory clarity before dabbling in crypto, several banks have already gained exposure to the sector. According to a new study published by the Basel Committee on Banking Supervision, 19 out of 182 banks within the organization’s purview have already invested in Bitcoin and other digital assets. They currently hold a combined $9.4 billion worth of digital assets. You know what this means, right? Banks are chomping at the bit to get in on crypto. It’s only a matter of time before the floodgates open (or until regulatory clarity provides the green light).

Before you go: Credit Suisse faces rumors of a Lehman Brothers-style collapse

Investors have been on edge all week amid rumors that the Zurich-based Credit Suisse was facing its moment of reckoning. Struggling to restructure its business in the wake of scandals and money-laundering accusations, the Swiss investment giant saw its credit default swaps surge over the weekend. Crypto investors are now asking: How will this fiasco impact us? In this week’s Market Report, I sat down with fellow analysts Marcel Pechman and Benton Yaun to discuss how Credit Suisse’s downfall could impact the crypto markets. You can watch the full replay below.

Crypto Biz is your weekly pulse of the business behind blockchain and crypto delivered directly to your inbox every Thursday.

Bitwise launches Web3 ETF for institutional and retail investors

The ETF tracks the Bitwise Web3 Equities Index, with over 85% exposure to companies in Web3.

Bitwise Asset Management announced on Oct. 3 a new exchange-traded fund (ETF) to both institutional and retail investors, giving them access to companies “positioned to benefit” from Web3 growth. 

Bitwise, in a statement, said it marks “the next wave of the internet’s development characterized by greater decentralization and individual ownership of data.”

Traded under the ticker BWEB, the ETF tracks the Bitwise Web3 Equities Index, with over 85% exposure to companies directly linked to Web3 business activities. This includes Web3 infrastructure, finance, Web3-enabled metaverse and digital worlds, development and governance and the Web3-enabled creator economy.

Hunter Horsley, Bitwise’s CEO, said:

“The Bitwise Web3 ETF seeks to capitalize on this great opportunity by offering investors of innovation a straightforward way to access the space. It also leverages our expertise in crypto — the cornerstone of Web3 — as many of these companies are centering their businesses on blockchain technology. We’re looking forward to seeing their anticipated continued growth as the space unfolds.” 

Last October, the company filed its second application with the United States Securities and Exchange Commission to create a spot Bitcoin ETF. After delays by the regulator, the final decision is expected this month. The first proposal was sent in January 2019 and rejected by the SEC in October of the same year. 

Web3 is considered to be the future version of the internet. Based on public blockchains, it is decentralized, meaning that individuals, themselves, own and govern sections of the internet rather than accessing the internet via services mediated by companies like Google, Apple or Facebook.