Subject: BlackRock Tweaks Bitcoin ETF Proposal

The world’s largest asset manager BlackRock has revised its spot Bitcoin exchange-traded fund (ETF) proposal in a step that could enhance its chances of being the first to receive approval.

The UK’s Finance Minister has said he will investigate claims that licensed cryptocurrency firms are facing hurdles in setting up business accounts in the country.

The cryptocurrency industry has gathered $78 million for a powerful super political action committees (PACs), aiming to bolster the chances of crypto-friendly legislation.

Top stories in the Crypto Roundup today:

• BlackRock Tweaks Bitcoin ETF Proposal to Boost Approval Odds
• UK Finance Minister to Probe Crypto Firms’ Banking Woes
• Crypto Industry Pours $78 Million into Super PACs for Pro-Crypto Legislation
• Majority of Crypto OTC Desks See Rising Number of Clients YoY

BlackRock Tweaks Bitcoin ETF Proposal to Boost Approval Odds

The world’s largest asset manager BlackRock has revised its spot Bitcoin exchange-traded fund (ETF) proposal in a step that could enhance its chances of being the first to receive approval.

BlackRock’s updated proposal introduces a cash creation and redemption process for the ETF, a model favored by the U.S. Securities and Exchange Commission (SEC). BlackRock initially submitted an application for the ETF with an in-kind redemption model.

An in-kind redemption model saw the SEC raise concerns about investor safety and market manipulation, as this model allows investors to redeem shares for the Bitcoin held by the ETFs. Cash redemptions, on the other hand, replace those shares with their equivalent cash value.

BlackRock’s revised proposal also includes a change to its ticker. The proposed spot Bitcoin ETF, iShares Bitcoin Trust, would now trade under the ticker IBIT.

UK Finance Minister to Probe Crypto Firms’ Banking Woes

The UK’s Finance Minister has said he will investigate claims that licensed cryptocurrency firms are facing hurdles in setting up business accounts in the country.

In response to the Chair of the Crypto and Digital Assets All-Party Parliamentary Group, Lisa Cameron, during a recent parliamentary session, UK Chancellor Jeremy Hunt said he would have a meeting with Economic Secretary Bim Afolami to delve into the issue.

Hunt, highlighting the UK’s plan to be at the forefront when it comes to crypto, said that the country and London have become “the global crypto hub.” The Chancellor also emphasized that to “make sure that the crypto market really can take off in the way that was intended,” it needs to be responsibly regulated.

The initiative aligns with UK Prime Minister Rishi Sunak's vision to position the UK as a “global crypto hub.” Since this vision was shared, in April 2022, the UK has passed legislation in that direction.

Crypto Industry Pours $78 Million into Super PACs for Pro-Crypto Legislation

The cryptocurrency industry has gathered $78 million for a powerful super political action committees (PACs), aiming to bolster the chances of crypto-friendly legislation.

The funds predominantly come from major figures in the cryptocurrency space, including Coinbase, Kraken, Andreessen Horowitz, and Gemini crypto exchange founders Cameron and Tyler Winklevoss.

Fairshake, the cryptocurrency super PAC, says it raised the $78 million in the last three months, and has donated to influential political figures like House Financial Services Committee Chair Patrick McHenry and Majority Whip Tom Emmer, both Republicans who are helping shape crypto legislation.

The cryptocurrency industry has so far already outspent the amount other industries, including oil and gas and nonprofits, spent on PACs in the 2021-2022 election cycle.

The crypto super PAC has been donating to both Democrats and Republicans as it aims to ensure “pro-responsible regulation to foster the industry in the United States.”

Majority of Crypto OTC Desks See Rising Number of Clients YoY

The client base in over-the-counter (OTC) cryptocurrency markets is experiencing a notable expansion, with a significant 80% of surveyed entities reporting an uptick in their client numbers in 2023, compared to the previous year. This surge reflects an increasing interest and active participation in the market, signaling a positive trend in overall market involvement.

On the other hand, about 13.33% of the firms have maintained steady client numbers, indicating a stable market presence for certain players. Meanwhile, a minor 6.67% of the organizations have seen a decrease in their clientele.

Taken together, these statistics suggest a predominantly healthy and expanding OTC crypto market, with the majority experiencing growth, despite isolated cases of stagnation or a decrease in client numbers.

Gain vital insights into the structure of the digital asset OTC markets via CCData’s Crypto OTC Markets: Primer & Insights report, made in partnership with Finery Markets

State of the Crypto by Top Tier Exchange Volume

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