The U.S. Securities and Exchange Commission (SEC) has deferred its decision on allowing options trading on spot Bitcoin exchange-traded funds (ETFs), pushing back its deadline to either approve or reject the proposal from the New York Stock Exchange to list such options to May 29.

Publicly traded Japanese investment firm Metaplanet has purchased 1 billion yen (around $6.5 million) worth of Bitcoin as a core treasury asset, in a decision backed by Sora Ventures and UTXO Management, as well as prominent figures such as Morgan Creek Capital founder Mark Yusko.

The CEO of global investment firm VanEck, Jan van Eck believes the cryptocurrency industry should shift its focus from established coins like Bitcoin and Ethereum and related exchange-traded funds to the issue of transaction fees.

Top stories in the Crypto Roundup today:

• SEC Defers Decision on Spot Bitcoin ETF Options Trading
• Japanese Investment Firm Invests 1 Billion Yen to Buy Bitcoin as Core Treasury Asset
• VanEck CEO Calls for Crypto Industry to Focus on Transaction Fees
• Binance Volumes Rise 120% MoM, Reaching Highest Level Since May 2021

SEC Defers Decision on Spot Bitcoin ETF Options Trading

The U.S. Securities and Exchange Commission (SEC) has deferred its decision on allowing options trading on spot Bitcoin exchange-traded funds (ETFs), pushing back its deadline to either approve or reject the proposal from the New York Stock Exchange to list such options to May 29.

The proposal specifically mentioned two existing spot Bitcoin ETFs, the Bitwise Bitcoin ETF and the Grayscale Bitcoin Trust, but also encompassed "any trust that holds Bitcoin."

The NYSE, a self-regulatory organization (SRO), filed the rule change request on February 9, initiating a public comment period. With no decision reached within the initial 45-day window, the SEC opted for the permissible extension.

Public commentary, however, appears limited as only two submissions were submitted: one from Grayscale CEO Michael Sonnenshein and another from Georgetown University professor James Angel. 

Professor Angel’s response criticized the SEC and noted that options are available both for the ProShares Bitcoin Strategy (BITO) futures ETF, and for riskier leveraged 2x Bitcoin Strategy (BITX) Bitcoin futures ETF.

Japanese Investment Firm Invests 1 Billion Yen to Buy Bitcoin as Treasury Asset

Publicly traded Japanese investment firm Metaplanet has purchased 1 billion yen (around $6.5 million) worth of Bitcoin as a core treasury asset, in a decision backed by Sora Ventures and UTXO Management, as well as prominent figures such as Morgan Creek Capital founder Mark Yusko.

The firm, which focuses on Web3 and metaverse-related businesses, detailed that the move is “not just about embracing digital assets but also about pioneering a future where finance meets innovation at its core.”

According to Jason Fang, founder of Sora Ventures, the move will allow Japanese investors to gain exposure to the flagship cryptocurrency without regulatory risk. Fang called Metaplanet "Asia's first MicroStrategy," comparing it to Nasdaq-listed business intelligence firm MicroStrategy, which has acquired over 214,000 BTC since it first started buying the cryptocurrency in 2020.

Metaplanet’s move was met with significant investor interest, as the firm’s stock price surged by 89% shortly after it was announced. The firm referred to the Bitcoin purchase as one that could help position it as a “pioneer in the adoption of digital assets in Japan.”

VanEck CEO Calls for Crypto Industry to Focus on Transaction Fees

The CEO of global investment firm VanEck, Jan van Eck believes the cryptocurrency industry should shift its focus from established coins like Bitcoin and Ethereum and related exchange-traded funds to the issue of transaction fees.

In an interview, van Eck argued that unpredictable transaction costs on the Bitcoin and Ethereum blockchains are hindering the development of useful applications within these ecosystems.

He argued that the “most important story of 2023” is “simply that transaction costs are now available at affordable rates through Solana or the so-called layer 2s,” van Eck said on CoinDesk TV.

Solana, a high-performance blockchain that uses a unique method of ordering transactions to significantly improve throughput, is seen as a competitor to Ethereum, as it offers cheaper and faster transactions. Layer 2 solutions, meanwhile, are separate blockchains built on top of existing ones, like Ethereum, to address scalability and data congestion issues.

During the interview, VanEck’s CEO revealed he believes that these new solutions, enabling lower and more predictable transaction fees, will empower developers to create more usable applications that will be major drivers of future growth in the cryptocurrency space.

On a separate note, Jan van Eck downplayed the chances of Ether exchange-traded funds being approved by their May deadline. He pointed out that, unlike the process for Bitcoin ETFs, the U.S. Securities and Exchange Commission has not been responsive to filings from potential issuers of Ether ETFs.

Chart of the Week: Ethereum Records Lowest Close Against Bitcoin Since April 2021

ETH is showing weakness against BTC, with the ETH/BTC ratio dropping to 0.0485, the lowest level since April 2021.

Ethereum’s weakened position relative to the leading cryptocurrency comes after the launch of several spot Bitcoin ETFs and the rise of other Layer-1 and Layer-2 networks.

State of the Crypto by Top Tier Exchange Volume

Build your project with CoinDesk Data

Terms | Privacy

13 Charles II St, SW1Y 4QU

London, UK

This email may include advertisements by third parties. None of the advertised or promoted products and services have been verified or approved by us and this email is not any endorsement by us of the third party or of their products or services.