XBTF contracts are cash-settled and settle in the afternoon on the last business day of each month, eliminating the complexities of physical Bitcoin delivery and offering flexible access to BTC exposure. The product is exclusively listed on Cboe Futures Exchange, LLC (CFE).

A Tool for Risk Management and Exposure

Catherine Clay, Global Head of Derivatives at Cboe, emphasized that XBTF provides market participants with a new tool for managing BTC risk or gaining price exposure in a regulated, centralized clearing environment.

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The new XBTF futures complement previously launched cash-settled options on the Cboe Bitcoin U.S. ETF Index, namely CBTX and MBTX. Each product is designed to manage BTC volatility on its own, while together they offer the flexibility for more advanced strategies.

Like other Bitcoin derivatives, XBTF futures are cleared through the OCC, enhancing transparency and market trust.

Institutional Demand Strengthens

Institutional participants are showing growing interest. Barak Capital, a long-time liquidity provider for Cboe markets, confirmed its intent to support XBTF trading actively.

Similarly, Tom Chlada, COO at Prime Trading LLC, shared enthusiasm for the product, noting the firm’s alignment with Cboe’s efforts to deliver a “best-in-class trading experience” to crypto investors.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post Cboe Launches Cash-Settled Bitcoin Index Futures appeared first on Coin Engineer.

ETH Staking System and CBOE’s Proposal

Ethereum operates on a Proof-of-Stake (PoS) mechanism. In this system, users can lock their ETH to contribute to the network’s security and earn rewards in return. CBOE has filed a proposal to allow Franklin Templeton’s Ethereum ETF to participate in this staking system.

If accepted, Ethereum ETF investors could earn additional income not only from ETH price fluctuations but also from staking rewards. This could set Ethereum ETFs apart from traditional investment tools.

What Will the SEC Decide?

The SEC is known for its cautious approach to crypto assets and staking services. Previously, major exchanges like Kraken have faced regulatory penalties for staking activities. However, allowing ETFs to participate in staking might indicate a more flexible stance from the SEC on crypto regulations.

The Future of ETH ETFs

CBOE’s proposal could transform Ethereum ETFs from passive investment vehicles based solely on ETH price movements into active participation options within the Ethereum network. If the SEC approves this proposal, it could serve as an incentive for other Ethereum ETF providers to consider staking options as well.

Potential Impacts and Expectations

This development could have a significant impact on the cryptocurrency market. The future role of Ethereum ETFs will likely be shaped by the SEC’s decision. The opportunity to actively participate in the Ethereum network may present new investment opportunities for ETH ETF investors.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

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On Tuesday, all eyes will be on Turkey’s CPI (Inflation Rate) report, set to release at 10:00 AM. The expectation is 46.6%, compared to the previous rate of 48.58%. Later in the evening, SEC Chair Gensler‘s address may offer new signals regarding crypto regulations.

Wednesday brings major launches in the crypto sphere. Floki is set to unveil its new project, MONKY, while Ripple will launch its much-anticipated RLUSD stablecoin. These developments are expected to ripple through the crypto markets. Later in the evening, at 9:45 PM, FED Chair Jerome Powell will deliver an important speech, followed by the release of the U.S. Beige Book at 10:00 PM, providing critical insights into the economic outlook.

On Thursday, Gala Film will roll out its new token, $FILM, which could drive more interest in the Gala ecosystem.

Friday marks a pivotal day for financial markets. At 4:30 PM, the U.S. Non-Farm Payrolls data will be revealed. Expectations are at 202,000, up from the previous 12,000 figure. Simultaneously, the U.S. Unemployment Rate will be announced, with a forecast of 4.2%, compared to the prior 4.1%.

This week, key events like the Ripple stablecoin launch, SEC and FED Chair speeches, and U.S. employment data could shape the direction of both crypto and financial markets.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post Major Events to Watch in Crypto and Finance This Week! appeared first on Coin Engineer.

The following spot Ethereum ETFs will commence trading on Tuesday:

21Shares Core Ethereum ETF (CETH)
Fidelity Ethereum Fund (FETH)
Franklin Ethereum ETF (EZET)
Invesco Galaxy Ethereum ETF (QETH)
VanEck Ethereum ETF (ETHV)

Cboe stated that it is pleased to announce that the Exchange Traded Product (ETP) will be listed on Cboe and will begin trading as a new issue on July 23, 2024.

This date had been widely anticipated for the commencement of trading. Earlier this week, multiple sources close to the matter had indicated their expectation that the SEC would grant final approvals for trading to begin on July 23rd. This expectation was based on the regulator requesting final filing drafts from firms.

In an unexpected development, Ethereum ETFs had received preliminary approvals from the SEC in May. This came as a surprise as the regulatory body had been scrutinizing Ethereum-focused firms and treating the asset differently from Bitcoin.

Nonetheless, the SEC granted initial approvals for Ethereum ETFs just four months after spot Bitcoin ETFs began trading in the United States.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post BREAKING: CBOE Announces Launch Date for Spot Ethereum ETFs! appeared first on Coin Engineer.

Many of the proposed Ethereum ETFs will trade Cboe, which revealed they will start trading next week. Among these are the Fidelity Ethereum Fund, Franklin Ethereum ETF, Invesco Galaxy Ethereum ETF, VanEck Ethereum ETF, and 21Shares Core Ethereum ETF.

“We are pleased to announce that 1 Exchange Traded Product (‘ETP’) will be listed on Cboe and will begin trading as a new issue on July 23, 2024,” the exchange stated in a new issue notification. The notices follow a procedural framework ahead of product introductions.

Companies wishing to introduce their spot Ethereum ETFs got approval of 19b-4 forms in May from the U.S. Securities and Exchange Commission, but before they can start, they still need their registration statements to be effective. Eric Balchunas, a senior ETF analyst for Bloomberg, earlier said he heard companies will “request effectiveness” on Monday. According to Balchunas and other sources, the ETFs should open trading on July 23.

On Wednesday, companies revealed charge amounts on revised registration statements. Saying it would waive it through the end of 2024, Fidelity set its fee at 0.25%. Franklin Templeton stated that on the first $10 billion of the fund’s assets, it will forgo its charge until January 31, 2025.

For the first $1.5 billion, VanEck promised to waive its fee for a year following its fund listing on the exchange. Based on its revised S-1 registration statement, ETF issuer 21Shares set a 0.21% charge, which will be waived for six months beginning on the day the shares are listed or during the first $500 million, whichever comes first.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

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Nasdaq filed a rule change application to list and trade options on BlackRock’s iShares Bitcoin Trust.

Cboe applied for trading options on “Bitcoin-Holding ETPs.” The company has launched six of the 10 BTC ETFs recently approved by the SEC.

BTC ETFs began trading on Nasdaq and Cboe on January 11, after receiving approval from the SEC.

Cboe Executive Vice President Catherine Clay said in a statement on January 18 that the exchange was seeing “good inflows” into BTC ETFs, and that this was continuing to track the BTC price “as expected.”

Clay characterized options as “the next logical step in BTC ETFs.” She said that BTC ETF options trading would add value and risk-mitigation to the products. Nasdaq also said in its filing that options would offer “cost efficiency and enhanced hedging strategies.”

VettaFi analyst spoke (Nasdaq)

Options are a derivative that gives the owner the right to buy an asset at a predetermined time, at a specified price. VettaFi analyst Dave Nadig told CNBC on January 17:

“I think you’re going to start to see all sorts of hedge fund players in the ETF options space. People who traditionally haven’t been speculating directly on crypto in the crypto ecosystem will now have something to play with.”

Clay said that Cboe filed for permission to list options “last week.” She also said, “We’re really in that wait-and-see mode to see what the regulators are going to do with our applications and the other exchanges’ applications. It’s really hard to know if we’re going to get approval.”

The post Nasdaq and Cboe Prepare for BTC ETF Options Trading appeared first on Coin Engineer.

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According to sources at FOX Business, lawyers from the SEC’s Division of Trading and Markets are meeting with officials from major exchanges, such as the New York Stock Exchange, Nasdaq, and the Chicago Options Exchange, on Wednesday. These meetings, which are related to the ETFs that will trade on these exchanges, are seen as a positive sign.

According to the sources, which did not name the firms, the SEC is considering approving one or more of the twelve applications for the product that have been made by major money managers and crypto firms. In particular, it is said that the SEC has requested that the exchanges finalize the 19b-4 applications they submitted on behalf of the issuers, which are required for the ETFs to be sold to the public.

Although a final decision has not yet been made, sources who are closely following the process say that the SEC could notify issuers of their approval decisions on Friday, with trading starting the following week. ETF analysts and issuers believe that the SEC’s positive decision will be made by or on January 10, as the SEC continues to meet with key stakeholders on the matter.

Of course, the SEC could reject the applications. Several hours before FOX Business reported the meetings, Singapore-based crypto platform Matrixport said it expects the SEC to reject all spot bitcoin ETF applications due to the institution’s five-member commission, which is majority-Democrat, and Chair Gary Gensler’s reluctance to embrace crypto.

The price of bitcoin fell by more than 7% (Bitcoin ETF)

Following the report, the price of bitcoin fell by more than 7% on expectations that it would reach its near two-year high of $45,000. “In general, if the Commission makes an effective registration statement, that will be reflected in EDGAR,” an SEC spokesperson told FOX Business. “Any Commission 19b-4 decision will be posted on our website and then published in the Federal Register.”

If approved, retail investors could gain more exposure to the world’s largest cryptocurrency at a lower cost than the already approved bitcoin futures ETF.

Press officials from the NYSE, Nasdaq, and CBOE did not immediately comment.

If approved, retail investors could gain more exposure to the world’s largest cryptocurrency at a lower cost than the already approved bitcoin futures ETF.

Buying crypto through an ETF through highly regulated and trusted money management firms like BlackRock or Fidelity could encourage a wider investor audience to add crypto to their portfolios.

The post Bitcoin ETF Approval Looms as SEC Meets with Exchanges! appeared first on Coin Engineer.

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Palmer’s optimism stems from the fact that most traditional investment vehicles, such as pension funds and RIA-based funds, are currently unable to gain direct exposure to Bitcoin due to regulatory hurdles. A spot ETF would provide these institutions with a safe and familiar way to invest in the asset, potentially unlocking billions of dollars of new capital.

“Approval would pave the way for pension funds and RIA-based funds to invest in the underlying assets of a spot Bitcoin ETF,” Palmer said in a recent interview. “It’s going to be hard to predict exactly what the investor distribution is going to be,” he added, noting that institutions typically lead the adoption of new investment products. “But retail will be looking for it as well.”

Beyond Bitcoin: The Rise of Crypto Derivatives

The potential approval of a spot ETF is also expected to have a significant impact on the Bitcoin derivatives market. Also, Palmer believes that institutional investors will increasingly turn to derivative products to hedge their exposure to Bitcoin, leading to an increase in trading volume and the development of new and innovative products.

“Institutional players are inevitably going to become more reliant on these derivatives for risk management,” Palmer said. “I think you’re going to see a lot more innovation in the derivatives space and a lot more liquidity.”

Some investment firms are already preparing for the potential influx of institutional capital into the Bitcoin market. Investment fund manager Advisors Preferred Trust updated its prospectus on January 2 to allow it to use up to 15% of the fund’s total assets to invest in Bitcoin through Grayscale Bitcoin Trust shares, ProShares Bitcoin Strategy ETF shares, and Bitcoin futures contracts.

This move shows that traditional asset managers are beginning to see the potential of Bitcoin and are eager to gain exposure to the asset once regulatory hurdles are cleared.

SEC is going to announce its decision on ARK Invest’s 21 Shares Bitcoin ETF application

The SEC’s decision on ARK Invest’s 21 Shares Bitcoin ETF application is due on January 10. While the outcome is uncertain, the growing chorus of support from major financial institutions is a sign of a turn in favor of Bitcoin ETFs. If approved, these products could serve as a gateway for institutional investors to enter the crypto market and pave the way for a new era of financial innovation.

It is worth noting that the approval of a spot Bitcoin ETF is not without its critics. Some argue that the underlying market is still too volatile and immature for institutional investment. Others worry that increased institutional participation could lead to manipulation and price bubbles.

The post Spot Bitcoin ETF Could Be Your Retirement! appeared first on Coin Engineer.