Circle’s co-founder and CEO, Jeremy Allaire, expects the new wave of Bitcoin exchange-traded funds (ETFs) to be approved as “past concerns” of regulators are being addressed.
“I believe progress is being made with more mature market structures that would support something like that. You have mature spot markets, well-regulated custody infrastructure, and good market surveillance,” he said during an interview with Bloomberg at the World Economic Forum. “Many of the past concerns are being addressed, suggesting that these kinds of products are more likely to be approved for general investor access.”
The U.S. Securities and Exchange Commission (SEC) has received multiple spot bitcoin ETF applications from blue-chip asset managers such as BlackRock (BLK) and Invesco (IVZ).
Many believe that the creation of a market surveillance mechanism is the secret to getting these spot ETFs approved, much as regulators in Ontario wanted to see a mature custody ecosystem in place before approving the first bitcoin ETFs to trade in Toronto.
ProShares’ Bitcoin Strategy ETF (BITO), a bitcoin futures fund, recorded the highest weekly inflow in over a year, with investors pouring in $65 million, CoinDesk recently reported, demonstrating that the asset class still has considerable interest from investors.
During the interview with Bloomberg, Allaire also said that Circle is seeing demand for digital dollars in emerging markets.
“Singapore regulators have been at the forefront of this, and Hong Kong is looking to establish itself as a significant center for the digital asset markets and stablecoins.
Crypto Exchange OKX Goes Live With ‘Nitro Spreads,’ Allowing One-Click Basis Trading
OKX has launched “Nitro Spreads,” a feature on its over-the-counter (OTC) institutional liquid marketplace that allows traders to make complex basis trades in one-click.
Basis trading refers to trading the difference between an asset’s price on two separate markets in an attempt to generate returns, for example, trading the difference of an asset on spot markets vs. futures markets. OKX’s Nitro Spread automates this kind of trade into one-click. Traders can apply this feature across any combination of spot, perpetual and futures contracts listed on the exchange, said the company.
“In the current complex market environment, institutions demand reliability, predictable returns and genuine innovation when choosing a trading venue,” said Lennix Lai, global chief commercial officer at OKX. “This is especially true in basis trading, where precision and flawless execution are paramount,” he added.
Nitro Spread is one of the only basis trading tools in crypto where two legs of the trade are executed via a central order book, according to the press release. Before making the trade, traders can select a guaranteed spread, reducing price slippage.
“Traders can place resting orders with a fixed spread – they do not need to worry about immediate execution,” said Lai. “If the actual spread moves against their chosen spread, their orders will remain passive and not be executed.”
“Spread order book prices are generally more stable than outright books as the instruments are delta neutral,” he continued. “We are working with a variety of liquidity providers to ensure that our users can trade effectively and take advantage of spreads.”
Traders can also execute popular delta one spread strategies like calendar spreads, future rolls and funding rate farming, all in order book format, said the press release.
The exchange’s Nitro Spreads product launched as a preview in May.
Cryptoverse: Bitcoin bounces on BlackRock buzz
(Reuters) – What would Satoshi make of it all?
Bitcoin, the currency created to subvert the financial establishment, has shaken off weeks of sickness with the support of Wall Street’s finest.
The original crypto coin has leapt 20% to two-month highs at $30,182 over the past 11 days after BlackRock, the world’s largest asset manager, revealed hopes for a spot bitcoin exchange-traded fund (ETF) in the United States.
BlackRock filed for a prospective spot bitcoin ETF on June 15, undeterred by the Securities and Exchange Commission’s (SEC) past record of rejecting every such application. The news helped bitcoin bounce out of the doldrums and snap two consecutive weeks of losses.
Satoshi Nakamoto’s rebel child is invigorated by the prospect of an ETF that offers investors exposure to spot bitcoin on a regulated U.S. stock exchange without the hassle of custody.
Bitcoin’s market value has grown to comprise nearly half of the $1.1 trillion overall crypto market, its highest share in over two years, according to data tracker CoinMarketCap.com. Its share was around 40% at the start of the year, up from a low of 34% in 2018.
“The news of the ETF filing is evidence of adoption and interest from top global players, which is, of course, interesting to institutional investors and traders alike,” said Mikkel Morch, chairman at digital asset investment fund ARK36.
Fueling optimism among some crypto advocates is BlackRock’s strong track record of getting the SEC’s green light for ETFs more generally, although it hasn’t filed for a crypto one before. It boasts a 575-1 approval rate, according to Rosenblatt Securities analyst Andrew Bond.
Since the BlackRock filing, Invesco and WisdomTree have also reapplied for spot bitcoin ETFs after they had previous applications rejected by the regulator.
The mini-rush of pitches to the U.S. watchdog comes days after the SEC sued major crypto exchanges Coinbase and Binance for allegedly breaking securities laws, casting a chill over the cryptocurrency market.
