Nasdaq Seeks Amendment To Blackrock’s Bitcoin Etf For In-kind Redemptions

Cryptocurrency

Summary:

The in-kind redemption model is seen as a more efficient option for the spot Bitcoin ETF and should have been allowed from “the get-go,” says an ETF analyst.

Nasdaq has submitted a filing on behalf of asset manager BlackRock, seeking a rule change to permit in-kind creation and redemption for its spot Bitcoin exchange-traded fund (ETF).

Bloomberg ETF analyst James Seyffart said in a Jan. 24 X post that BlackRock “should have been allowed to do this from the get-go” when the BlackRock iShares Bitcoin Trust (IBIT) launched alongside the other ten US spot Bitcoin (BTC) ETFs in January 2024.

On the same day as the filing, six more crypto ETF applications were filed in the US.

In-kind redemption limited to Authorized Participants

Nasdaq proposed “to allow for in-kind transfers of the Trust’s Bitcoin,” as per a Jan. 24 filing with the US Securities and Exchange Commission (SEC).

The filing stated that Authorized Participants — institutions that facilitate the creation and redemption of fund shares — would be able to use either cash or Bitcoin to create shares or receive cash or Bitcoin when redeeming shares.

This model is more efficient for ETFs, as it avoids bid/ask spreads and broker commissions from selling the basket to raise cash for issuing shares. However, cash creation provides more flexibility for fund participants.

The In-Kind Redemption Model is significantly more “streamlined” than the In-Cash Model, according to James Seyffart. Source: James Seyffart

Pseudonymous crypto analyst MartyParty told their 143,600 X followers on Jan. 24, “This means more transparency and onchain record of flows.”

However, individual investors won’t have access to the in-kind creation and redemption model and will need to stick with the cash model.

“Individuals won’t be able to do “in-kind” creations and redemptions,” Seyffart added.

Bitseeker Consulting chief architect Chris J Terry emphasized in a Jan. 24 X post the confusion many have had, thinking this means individuals can now deposit and redeem Bitcoin.

He said that this is not the case, as it “primarily benefits” Authorized Participants and “helps maintain the liquidity of the ETF.”

Seyffart said, “What it means is that ETFs should trade even more efficiently than they already do theoretically because things can be streamlined.”

IBIT continues to see inflows

He said one of the main benefits is that there are “less steps and less parties involved.”

Terry said that in-kind redemptions also play a vital role in the tax efficiency of ETFs. “By allowing the exchange of shares for underlying assets, ETFs can minimize capital gains distributions, which can be a benefit for investors holding shares in the fund,” Terry said.

The IBIT is the largest spot Bitcoin ETF in the US by inflows, having clocked $39.57 billion in inflows since launching in January 2024, as per Farside data.

On Jan. 24, European investment firm CoinShares filed for both a Litecoin (LTC) ETF and an XRP (XRP) ETF. Meanwhile, asset manager Grayscale submitted filings to convert its Solana (SOL) and Litecoin (LTC) Trusts into ETFs and also filed for a Bitcoin Adopters ETF and an Ethereum Premium Income ETF.

Source: COINTELEGRAPH

Risk Warnings and Disclaimers

You understand and acknowledge that there is a high degree of risk involved in trading. Following any strategies or investment methods may lead to potential losses. The content on the site is provided by our contributors and analysts for information purposes only. You are solely responsible for determining whether any trading assets, securities, strategy, or any other product is suitable for investing based on your own investment objectives and financial situation.

Add to Favorites

Owen Li

Economic

The World Bank and the International Monetary Fund estimate an economic growth of 6.5%, driven by manufacturing exports, tourism and investment. This, amongst other things, makes Vietnam an attractive investment destination.

Vietnamese asset manager Dragon Capital highlights the country’s strength in a recently published white paper, dubbing Vietnam the “last dragon of East Asia”.

“Vietnam is currently at the mid-point along the road to becoming an advanced economy after achieving lower middle-income status in 2011. Getting this far was by no means a certainty given the ruined state of its economy at the end of the war in 1975,” the white paper states.

As Dragon Capital explains, five factors speak for Vietnam as an investment destination.

Human Capital: Vietnam’s youthful demographic is a cornerstone of its economic potential. The government’s emphasis on education and skill development aims to enhance labour productivity, aligning with the successful East Asian development models.

Social Capital: A harmonious civil society and effective governance are pivotal. The Vietnamese Communist Party’s legitimacy is closely tied to its ability to deliver shared economic growth, fostering a stable environment conducive to investment.

Physical Capital: Foreign Direct Investment (FDI) has been a significant driver of Vietnam’s industrial revolution. The country’s strategic location and integration into global supply chains have boosted exports. Ongoing infrastructure development further supports economic expansion, while rising domestic consumption reflects increasing living standards.

Foreign Capital: Vietnam’s adept “Bamboo Diplomacy” balances relationships with major powers, including China and the United States. This diplomatic strategy attracts diverse foreign investments and technology transfers, reinforcing economic resilience.

Financial Capital: Vietnam is on the cusp of achieving Emerging Market status from FTSE Russell by the end of 2025, which is expected to trigger a new wave of stock market inflows. The government’s commitment to financial stability, learning from past banking crises, underpins this progress.

Source：asia fund managers

To stay updated on all economic events of today, please check out our Economic calendar

Risk Warnings and Disclaimers

Add to Favorites

Owen Li

Economic

Markets are settled on Wednesday, with most dollar pairs unchanged and EURGBP also flat near 0.845. Data is on the light side this week and markets are mostly focused on President Trump’s movements. There has been more tariff talk but nothing concrete and its looks unlikely there will be any announcements before February 1st when he warned there would be a 25% tax imposed on Canadian and Mexican imports.

Volatility could pick up again later in the week when the BoJ are due to meet and could hike rates again for a third time. The last time they hiked it took markets off guard and led to a huge move in USDJPY, the Nikkei, US stocks and even bitcoin as the carry trade unwind led to liquidity issues. This time around, markets will be much more prepared and unlikely to make such a significant reaction.

Central bank activity will pick up next week as four major meetings are due, with the ECB and Riksbank likely to cut and the Fed in a tricky spot as plans to cut rates have been put on hold due to rising inflation.

Riksbank Nearing the End of Cutting Cycle

The Riksbank are expected to cut next week and this may be one of the last cuts for a while.

“Sweden's interest rate-sensitive economy was hit harder than most by the series of rate hikes in 2022/23. But following 150 basis points of rate cuts, the Riksbank's policy easing is showing early signs of bearing fruit,” noted ING.

The Riksbank front-loaded cuts in an attempt to jump-start the slowing economy and it appears to have worked. However, the ECB’s attempts to do the same have fallen flat so far.

Euro Braces for More Cuts

The ECB cut rates four times in 2024 and could repeat that amount in 2025. The first move of the year is likely to come next week as the central bank is expected to lower rates from 3% to 2.75%.

“At 3%, the deposit interest rate is still restrictive and too restrictive for the eurozone economy's current weak state. The recent surge in bond yields has also worsened financial conditions in the eurozone,” wrote ING this week.

One of the many problems facing the bank is that long-term yields have risen in tandem with US yields and those in the UK. The ECB have no real control over long-term rates so they may stay high even when more cuts are delivered, just as they have in the US.

The ECB’s influence is also limited in other issues weighing on the economy. Political instability in France and Germany and a lack of fiscal stimulus could continue in 2025. Energy prices are trending higher again and are equally out of the ECB’s control. Most of all, it is feared higher tariffs from the US could severely affect the economy and even cause deflation. The cutting cycle will continue in earnest, but there is no great optimism it will solve the EU’s many problems.

Fed to Stay Put

The Fed are almost certain to stay on hold until the March meeting as persistent inflation and a strong economy has interrupted the cutting cycle. They have projected two cuts this year but this will be data dependent. If inflation starts trending higher due to Trump’s America First policies, there is a good chance they will stay on hold and some analysts have started to speculate they could even hike again if yields continue higher.

Source:exchangerates

To stay updated on all economic events of today, please check out our Economic calendar

Risk Warnings and Disclaimers

Add to Favorites

Owen Li

Economic

US President Donald Trump’s threats towards countries seeking to reduce their reliance on the US dollar may simply accelerate their move away from the American currency, economists told the World Economic Forum in Davos, Switzerland, on Tuesday.

“You want to persuade people to use your currency because it fulfills some of the things ... [like] providing stability and means of payment,” said Kenneth Rogoff, professor of economics at Harvard University, during a panel discussion at the event.

“And if you’re being threatened, I think that only reinforces the incentive to try to diversify.”

Trump, who was inaugurated as US president on Monday, said in November that he required the Brics countries – which include Brazil, Russia, India, China and South Africa – to promise not to create a new common currency or back any other currency to rival the US dollar.

If they failed to do so, Trump warned, the US would punish them by placing 100 per cent tariffs on their products.

“There is no chance that the BRICS will replace the U.S. Dollar in International Trade, and any Country that tries should wave goodbye to America,” he wrote on his social media platform, Truth Social, at the time.

The US dollar has been a dominant currency in global trade for decades, as well as the major reserve currency held by central banks around the world. But its status is increasingly being challenged, as countries like China push to reduce their dependency on the dollar and internationalise their own currencies.

Source:scmp

To stay updated on all economic events of today, please check out our Economic calendar

Risk Warnings and Disclaimers

Add to Favorites

Owen Li

Economic

What to know:

The bitcoin price seems to be tracking 2017's trajectory.In 2017, it posted record highs on 77 days.Typically when bitcoin hits an all time high investors see the market as overheated, unlike traditional finance assets.

Bitcoin (BTC), the largest cryptocurrency by market capitalization, is likely to hit record highs on more than 70 days this year, more than triple last year's number, if the price continues to mirror 2017's performance.

It's already on the way, hitting $109,000 on Jan. 20, the day of President Donald Trump's inauguration. In 2024, it made 23 records, the most since 2017, when it touched all-time highs on 77 days. This year, the price action seems to be tracking

the trajectory of eight years ago.Record highs seem to elicit different reactions in crypto and traditional financial markets. Typically, when bitcoin breaks to a new high, the market is deemed overheated, greedy and overpriced. Assets such as gold and equities, however, often extend their bull runs. Gold made new all-time highs at least 33 times in 2024. Bitcoin May Hit Record Highs on More Than 70 Days This Year: Van Straten_1

Bitcoin May Hit Record Highs on More Than 70 Days This Year: Van Straten_1

Source:coindesk

To stay updated on all economic events of today, please check out our Economic calendar

Risk Warnings and Disclaimers

Add to Favorites

Danske Bank

Central Bank

Economic

It was a sell the rumour, buy the fact kind of week, apparently. The fears of Donald Trump imposing massive tariffs on his first day in office did not materialise, and markets cheered. With previous week’s US inflation data also still providing solace, equity markets gained, S&P 500 made a new record-high, and the dollar retreated. Tech stocks got a fresh boost from Trump’s announced Stargate AI venture, a USD 500 billion private-funded investment program aiming to ensure “the future of technology” in the US. A bit paradoxically, considering the massive number of components the projects will need, the program will further underpin US reliance on Taiwan for chips and other critical inputs.

With regards to Trump’s economic policies – tariffs or taxes – we did not get much wiser this week. Thus far, Trump has announced a likely 10% increase to tariffs against China but added he would “rather not use it”, and 25% tariffs for Canada and Mexico, in line with his campaign promises. We believe more tariff hikes are in the pipeline, but in the absence of tax cuts, we think the inflationary impact from tariffs alone in the US would be short-lived. Higher prices would dampen consumption, while structural growth is set to slow down in sync with lower immigration and decelerating labour force growth.

With this in mind and considering that lending data points to US interest rates being above neutral, we think the Fed can afford to resume cutting rates in March. However, next week we expect them to pause. As this is also what the market expects, and we expect no strong forward guidance from Powell, we think market reaction will be limited. All eyes remain on Trump, read more on Research US: Fed preview – Not stealing the spotlight, 23 January.

If December rate moves by the Fed and the ECB were essentially a coin-toss, this time around markets have a strong conviction on both. For the ECB meeting next week, we and the consensus expect a 25bp cut. But similar to our Fed call, our expected ECB rate path diverges from market expectations. Markets expect ECB policy rate to land at 2%, we expect two more cuts, and policy rate to reach 1.5% by September. Euro area PMIs provided some relief in December, and hard data from the labour market remains strong. However, soft indicators paint a weaker picture, and we expect wage growth to moderate further, leaving room for the ECB to adjust rates significantly lower.

Next week, central bank meetings aside, we get a flurry of interesting data releases from the euro area: German Ifo index on Monday, and GDP country data on Thursday. On Thursday, we get euro area Q4 flash GDP data and January flash inflation from Spain (ahead of German and French figures on Friday, and the EA release the week after). In the US, Tuesday brings January durable goods orders ahead of Q4 GDP release on Thursday and PCE inflation on Friday.

Source: ACTIONFOREX

To stay updated on all economic events of today, please check out our Economic calendar

Risk Warnings and Disclaimers

Add to Favorites

Owen Li

Political

What to know:

President Donald Trump has promised action on crypto, but his rash of executive orders hasn't yet produced the expected movement on digital assets policy.He mentioned crypto very briefly at a World Economic Forum address on Thursday, but he focused more on artificial intelligence initiatives.The White House has a session scheduled for the signing of more executive orders on Thursday afternoon.

The crypto industry is desperate to see crypto action from U.S. President Donald Trump, now a few days into his new presidency, but there hasn't yet been a confirmation from the White House that an executive order is pending.

It's not entirely off of Trump's radar, though, because he did mention the crypto industry in his address on Thursday to the World Economic Forum, saying that an increase in domestic oil and gas production will secure U.S. manufacturing dominance and make it "the world capital of artificial intelligence and crypto."

Still, he spent much more of the speech talking about U.S. AI commitments and didn't mention digital assets again.

The sector will likely be watching closely at 2:30 p.m. Eastern on Thursday, when Trump is again scheduled to sign executive orders. The White House has already issued an extensive array of such orders. While they don't carry the weight of law, such directives can steer the federal government's priorities.

Trump is also scheduled to speak with crypto-friendly El Salvador President Nayib Bukele at 3:30 p.m., news which sparked another rally in Bitcoin's price.

In other corners of the federal government, the Senate Banking Committee established its first digital assets subcommittee on Thursday, with Wyoming Republican Cynthia Lummis running it alongside other crypto-friendly lawmakers. And the Securities and Exchange Commission, newly led by Republican Mark Uyeda, announced a crypto task force this week.