What They’re NOT Telling You About BlackRock And Bitcoin ETF Approval

The SEC had previously rejected several applications for a spot bitcoin ETF by Grayscale Investments, a leading digital asset manager. In August 2023, a federal appeals court ruled that the SEC was wrong to reject Grayscale’s application and had not sufficiently explained its reasoning.
However, the SEC decided not to appeal the ruling. In January 2024, the regulator announced approval for Grayscale’s application, as well as other applications by major industry players such as Bitwise, BlackRock iShares, WisdomTree, ARK 21 Shares, and Invesco Galaxy, among others.
All 11 ETFs began trading on Jan. 11, 2024, including Grayscale’s. SEC Chair Gary Gensler released a warning along with the approval. He said
“While we approved the listing and trading of certain spot bitcoin ETP shares today, we did not approve or endorse bitcoin. Investors should remain cautious about the myriad risks associated with bitcoin and products whose value is tied to crypto.

But why have the regulators been so reluctant to approve any spot bitcoin ETF applications? watch the video

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Oh black Rock’s terrible you know they’re one of the worst players on Wall Street they’re completely without morals whatsoever their business model is just repackaging stocks and selling them as ETFs we have been part of a huge revolution in investing through ETFs you know they own more their their ETFs own

More stocks than there are stocks and they charge a fee for that and they have incredible political influence that they use to make it easier for them to gain the system they are really uh a plague on capitalism it just identifies how much money laundering there is being done in the

World crypto enthusiasts think the launch of the first US exchange traded funds that hold Bitcoin is a done deal but it’s not the US Securities and Exchange Commission approved 11 spot Bitcoin ETS hunt January 10 2024 until then The Regulators have been reluctant to approve any spot Bitcoin ETF

Applications citing concerns over Market manipulation fraud custody and investor protection the SEC had previously rejected several applications for a spot Bitcoin ETF by grecale Investments a leading digital asset manager in August 2023 a federal appeals court ruled that the SEC was wrong to reject grece scale’s application and had not

Sufficiently explained its reasoning however the SEC decided not to appeal the ruling in January 2024 the regulator announced approval for grayscales application as well as other applications by major industry players such as bitwise black Rocky shares Wisdom Tree AR 21 shares and Invesco Galaxy among others all 11 ETS began

Trading on January 11 2024 including grayscales SEC chair Gary Gensler released a warning along with the approval he said while we approve the listing and trading of certain spot Bitcoin ETP shares today we did not approve or endorse Bitcoin investors should remain cautious about the Myriad risks associated with Bitcoin and

Products whose value is tied to crypto but why have The Regulators been so reluctant to approve any spot Bitcoin ETF applications let’s start from the beginning the SEC has denied 16 Bitcoin ETF applications from 16 different companies in 2017 the SEC issued its first Bitcoin ETF to none other than

Tyler winlos and his brother Cameron the winlos Bitcoin trust had sought to list and trade shares of an ETF that offered exposure to bitcoin however the SEC determined that their application failed to demonstrate how it was consistent with the Securities Exchange Act of 1934 which requires exchanges to be designed

To prevent fraudulent and manipulative practices applicants that followed the wink of us one were met with the same response and failed to prove that Bitcoin markets were uniquely resistant into fraud and manipulation the SEC ruled that such exchanges could satisfy the 1934 act through comprehensive surveillance sharing agreements that

Help to ensure the availability of information necessary to detect and deter potential manipulations and other trading abuses thereby making the ATF less readily susceptible to manipulation a comprehensive surveillance sharing agreement is defined as the sharing of information about market trading activity clearing activity and customer identity that the parties to the

Agreement have reached reasonable ability to obtain access to and produce requested information the SEC further pushed for the importance and definition of a surveilled regulated market of significant size it argued that for Approved commodity trust exchange products there was at least one regulated market for trading the underlying Commodities such as gold and

Silver funnily enough the requirements of a regulated market of significant size and a significant Market came to be known as the winva standard however what is the SEC concern for not approving the Bitcoin ETFs in the Past the sec’s grave concern surrounding Bitcoin spot ETS is Market manipulation in its wink laava standard the regulator defined a market as one in which there is a reasonable likelihood that a person attempting to manipulate the ETP would also have to trade on that market to successfully manipulate the ETP so that

A surveillance sharing agreement would assist the ETP listing Market in detecting and deterring misconduct another requirement is that it would be unlikely that trading in the ETP would be the predominant influence on prices in that market to the sec’s credit it made suggestions about how applicants could satisfy their requirements when it

Came to bitcoin Futures the SEC said there is a lead lag relationship between the Bitcoin Futures market and the spot Market the SEC said a wouldbe manipulator of the ETB would need to trade on the Bitcoin Futures Market to successfully manipulate prices on those spot PL platforms that feed into the

Proposed etbs pricing mechanism if the spot Market leads the Futures Market this would indicate that it would not be necessary to trade on the Futures Market to manipulate the proposed ETP even if Arbitrage worked efficiently because the Futures price would move to meet the spot price transparent price Discovery

Is thus imperative for the SEC and whether bitcoin’s price is determined by the Bitcoin Futures and spot Bitcoin markets Please Subscribe if you find this video informative and please hit that not notification Bell so you will be notified when we drop another video here’s what they’re not telling

You about the Bitcoin ETF approval just because the SEC has approved these investment products that doesn’t mean they’re safe for ordinary investors the prospectives for the Fidelity wise origin Bitcoin fund is 112 pages but you need to read only six paragraphs before you’re hit over the head with the

Following in all caps the shares are speculative Securities their purchase involves a high degree of risk and you could lose your entire investment and disclosures from other providers use the same language the new Bitcoin products are not your standard issue exchange traded funds which like mutual funds are typically registered under the

Investment Company Act of 1940 and come with more regulatory protections than these Investments instead these exchange traded products are subject to looser controls around their fees and conflicts of interest in addition the Securities and Exchange Commission doesn’t have the same authority to conduct examinations of these products as with typical ETS

Another thing to take in consideration is that this new Bitcoin product will be held by a third party most of the new ETS have hired coinbase to be their custodian which means it will be responsible for the security of all the private keys to bitcoin held by these

ETFs it is also likely to be the exchange where much of the trading occurs when the shares of these products are created and cashed out another thing they are not telling you when it comes to this new Bitcoin products his tax implications is that the Internal Revenue Service fuse Bitcoin and other

Digital currencies as property not currency which means it is treated similarly to an investment in stocks the tax treatment of Bitcoin ATF will be similar to holding Bitcoin directly if you’ve held the shares for more than a year in a taxable account any gains would be taxed at the less honorous

Capital gains rates generally 0.15 or 20% depending on your taxable income and tax bracket that year short-term gains which apply to Investments held for a year or less are taxed as ordinary income let me say investors should be aware I’m saying this in my own voice that the underlying Bitcoin cash

Markets there’s not there’s not the robust uh oversight that you have in the stock markets or in the derivatives markets our sister agency oversees Bitcoin Futures but those underlying cash markets do not have those investor protections investing in a crypto ETF is likely to be more expensive than buying cryptocurrency directly when buying

Crypto you only need to make a one-time payment to The Exchange which can be as low as a few hundreds of the value traded when investing in an ETF you pay your brokerages trade fees if any and the funds expense ratio crypto ETFs have expense ratios ranging from 0.39% to

0.95% much higher than the transaction fees charged by crypto exchanges and another thing is that investing in a crypto ETF means not owning the crypto directly even the fund won’t hold the currency directly if it’s a crypt Futures ETF and a drawback shared by all

ETS is that you give up some control you rely on the fund manager strategies so more complex or precise strategies are unavailable finally you are more limited when you can trade crypto ETS typically you can only buy and sell ETS during normal Market hours crypto exchanges

Often run 24 hours a day 7 days a week and 365 days a year crypto ETS enable instit tional and everyday investors to speculate on the price of these currencies nevertheless it’s important to understand the differences between crypto ETFs and direct investment in crypto such as higher fees and the lower

Amount of control you’ll have over the digital assets before investing in crypto ETS it’s important to note that crypto is a relatively new and significantly volatile asset class before plunging into these investment Waters it’s always prudent to get professional advice first