SEC Filing Signals Serious Intent

On June 25, subsidiaries of global asset manager Invesco and crypto-native firm Galaxy filed a registration statement with the U.S. Securities and Exchange Commission (SEC) for the “Invesco Galaxy Solana ETF.”

If approved, the fund would trade on the Cboe BZX exchange under the ticker QSOL. Invesco Capital Management LLC is listed as the sponsor, with administrative duties assigned to the Bank of New York Mellon. Galaxy will manage token acquisition, and Coinbase Custody Trust Company will serve as the custodian for Solana.

Fierce Competition Around Solana ETFs

Other firms including VanEck, Bitwise, and 21Shares have also filed applications for Solana ETFs over the past year. The broader momentum follows the SEC’s approval of spot Bitcoin and Ethereum ETFs, after a pivotal court ruling during the Biden administration reshaped regulatory dynamics.

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Recently, the SEC requested issuers to update their S-1 filings for Solana ETF proposals—an indication that approvals may be on the horizon.

NFT Exposure in New ETF Formats

Also on June 25, Cboe BZX filed a Form 19b-4 for the Canary PENGU ETF. First proposed in March, the fund would include the Ethereum-based NFT project Pudgy Penguins’ PENGU token, along with other crypto assets.

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BlackRock’s IBIT, the largest spot Bitcoin ETF by net asset value, led the way with a net inflow of $117.25 million, according to SoSoValue data. The fund also became the most traded Bitcoin ETF on Monday with a volume of $1.24 billion. Ark Invest and 21Shares’ ARKB followed closely with a net inflow of $117.19 million.

Fidelity’s FBTC saw $36.15 million in net inflows, and Bitwise’s BITB received $15.24 million on Monday. Funds from VanEck, Invesco, Galaxy Digital, and Franklin Templeton also reported net inflows yesterday.

Grayscale’s GBTC, along with ETFs from Valkyrie, WisdomTree, and Hashdex, experienced zero inflows on Monday.

A total of $2.26 billion was traded across US spot Bitcoin funds on Monday. The trading volume in spot Bitcoin ETFs remains lower compared to March, when volumes surpassed $8 billion on some days. However, the ETFs have accumulated a total net inflow of $16.11 billion since their launch in January.

Bitcoin recovered quickly and climbed above $64,000. The leading cryptocurrency is currently trading at $64,770 as of this writing.

BlackRock co-founder and CEO Larry Fink stated in an interview with CNBC on Monday that Bitcoin has become a “legitimate financial asset” and admitted his previous skepticism towards the cryptocurrency was misplaced.

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The post Spot Bitcoin ETFs Maintain Momentum: Bitcoin on an Upward Trend! appeared first on Coin Engineer.

According to an announcement by Grayscale, Michael Sonnenshein has stepped down from his role as CEO effective today.

Sonnenshein joined the Grayscale team in 2014 and has served as the company’s CEO since 2021.

Peter Mintzberg, currently the Global Head of Strategy for Asset and Wealth Management at Goldman Sachs, will be the new CEO of Grayscale. Until Mintzberg assumes his role on August 15, Grayscale’s CFO Edward McGee will serve as interim CEO.

Mintzberg has an impressive background, having worked at BlackRock, OppenheimerFunds, and Invesco before joining Goldman Sachs.

Grayscale, which manages the Grayscale Bitcoin Trust ETF in the United States, offers investment vehicles for more than 10 altcoins. The company oversees assets totaling approximately $30 billion.

The post CEO of Crypto Giant Resigns, Successor Announced! appeared first on Coin Engineer.

Blockchain Solutions Tested

The pilot, described in a DTCC report dated May 16, was about the standardization of the way how NAV data of funds is provided across blockchains using Chainlink’s CCIP. The report demonstrated the advantages of delivering structured data on-chain and establishing standard roles and processes.

“The pilot realized that by delivering structured data on-chain and creating standard roles and processes, the foundational data could be embedded into a variety of on-chain use cases like tokenized funds and ‘bulk consumer’ smart contracts,” this is what the report said. These innovations are to help the industry explore and power many downstream applications, such as the brokerage application and more automated data dissemination.

Benefits and Participating Institutions

The pilot managed to create a better automated data management system, almost no impact on the existing market practices, customers could get historical data without manual record-keeping and there were broader API solutions for price data. The U. S. banking firms that participated in the pilot include: American Century Investments, BNY Mellon, Edward Jones, Franklin Templeton, Invesco, JPMorgan, MFS Investment Management, Mid Atlantic Trust, State Street, U.S. Bank.

Market Impact and Future Prospects

DTCC report was followed by Chainlink’s native token, LINK, which jumped 12.5% rise, on a CoinGecko. During the last 12 months LINK has soared by more than 130%, which is such a trend that we witnessed in all cryptos.

BlackRock was the first to release a tokenized money market fund (MMF) on March 19, which is called BUIDL and it runs on the Ethereum network. This fund, that gives native U. S. dollar yields to investors who buy tokens representing shares in the fund which invests in assets like U. S. Treasury bills is available for investment now! The “digital liquidity fund” is the name of BUIDL which operates as an ERC-20 token on the Ethereum blockchain.

The end of the Smart NAV Pilot program is a big step towards combining traditional finance and blockchain technology. Through the partnership with top banking companies, DTCC and Chainlink have created a way for more secure, efficient and transparent financial systems to be built. The industry is still looking into these developments and the chances of using blockchain-based solutions in traditional finance are becoming more and more.

The post DTCC and Chainlink Pilot Program Advances Traditional Finance Fund Tokenization appeared first on Coin Engineer.

Sonnenshein stated, “At Grayscale, we’ve decided to focus on spot products. This is at the core of our DNA.”

Grayscale withdrew its application to establish a futures-based Ethereum ETF in the U.S. earlier this month.

The CEO mentioned that the reason behind this move was the presence of several existing products catering to futures contracts in the market. Sonnenshein emphasized, “Just because we apply for a product doesn’t mean it will be launched.”

With spot Bitcoin ETFs approved in the U.S., attention has shifted to spot Ethereum ETFs. Grayscale, along with BlackRock, VanEck, ARK Invest, Fidelity, Invesco, and Hashdex, has filed applications to establish such a fund.

However, analysts aren’t expecting the SEC, which hasn’t yet decided whether Ethereum is a security or not, to approve these anytime soon.

While not providing a definitive comment on the SEC’s stance on Ethereum, the Grayscale CEO expressed optimism that the SEC would do the right thing for investors.

The post Grayscale CEO Optimistic About Ethereum Despite ETF Setback appeared first on Coin Engineer.

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Significant Fee Reductions:

Invesco and Galaxy Asset Management have reduced the fees of their Bitcoin ETFs from 0.39% to 0.25%, increasing competition in this area and taking a significant step towards attracting investors.

Other Prominent Names in the Market:

However, with this fee reduction, Invesco Galaxy Bitcoin ETF (BTCO) has reached the same level as other issuers such as Ark, 21Shares, Bitwise, and Franklin Templeton. It has been observed that traditional financial issuers such as BlackRock and Fidelity have received more attention in the early days in this area.

Asset Growth and Fee Waiver: (Invesco)

According to Invesco’s statement, a zero fee will be applied for BTCO until its assets reach 5 billion dollars or for the first six months. This strategy aims to attract investors and increase the size of the fund.

GBTC Outflows and Price Pressure:

Although Bitcoin Trust (GBTC) outflows have created downward pressure on Bitcoin’s price for a while, JPMorgan analysts have stated that this situation has largely subsided.

We have @InvescoUS & @galaxyhq cutting the long term fee on their #Bitcoin ETF from 39 bps to 25 bps.

(Yes they have the fee waiver to 0% for first 6 months or $5 billion in assets). Story from @emily_graffeo & @kgreifeld pic.twitter.com/Erk2NU9kVF

— James Seyffart (@JSeyff) January 29, 2024

Increased Volume of New ETFs:

According to data, nine new spot Bitcoin ETFs in the US have seen a huge demand, almost doubling the volume of GBTC. BlackRock and Fidelity’s ETFs have made up a large portion of the volume in this area.

International Effects:

It has been observed that the fee war in the US has also affected European ETFs, and speculation has emerged that traders are starting to turn to US-based products.

Fee Reductions in Europe:

The reduction of fees in Invesco’s European-based Bitcoin ETF last week, and the follow-up of this move by WisdomTree, showed that a similar fee war is also taking place in Europe.

Conclusion and Future Expectations:

These rapid changes in the area of cryptocurrency ETFs are affecting investors’ preferences and leading to increasing competition in this area. As investors tend to prefer funds that offer low fees and favorable conditions, new products and strategies are expected to emerge in the coming days.

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