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SEC approves 11 spot Bitcoin ETFs
January 11, 2024
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Last night the Securities and Exchange Commission (SEC) finally approved the first spot Bitcoin ETFs, giving a simultaneous nod to 11 applications.

SEC Chair Gary Gensler acknowledged the August 2023 Court of Appeals ruling, which stated that the SEC was wrong to block the Grayscale Bitcoin Trust from converting to an exchange traded fund (ETF). The judge described the denial as “arbitrary and capricious”.

Referring to the judgment, Chair Gensler wrote, “Based on these circumstances and those discussed more fully in the approval order, I feel the most sustainable path forward is to approve the listing and trading of these spot bitcoin ETP shares.” 

However, he noted the differences between metal commodity-based ETFs and Bitcoin ETFs. “Though we’re merit neutral, I’d note that the underlying assets in the metals ETPs have consumer and industrial uses, while in contrast bitcoin is primarily a speculative, volatile asset that’s also used for illicit activity,” he wrote.

Republican Commissioners Peirce and Uyeda, while supportive of the ETF approvals, questioned whether the SEC is merit neutral. Commissioner Uyeda wrote, “Even though the Commission is approving the listing applications in this instance, the underlying analytical approach effectively amounts to merit regulation. Thus, the flawed reasoning in the Approval Order could reverberate for years to come.”

Commissioner Pierce observed, “Rather than admitting error, (the SEC) offers a weak explanation for its change of heart. In the past, the Commission, allowing our prejudice against the underlying asset to get in the way, has rejected applications on the basis that the bitcoin market was still immature and that there were outstanding manipulation concerns.” She added, “The only material change since we last denied a similar application was a judicial rebuke.”

Democrat Commissioner Crenshaw dissented on the approval on the grounds that spot Bitcoin prices cannot be trusted, citing research by Forbes Digital Assets.

Bitcoin ETF competition

One of Commissioner Uyeda’s criticisms was around the last minute approval process, waiving 30 day notice requirements for changes to ETF applications. He disagreed with the reasoning given for accelerating the processes. “Perhaps the actual motivation for accelerating the approval is to avoid a first-mover advantage whereby the first spot bitcoin ETP to market acquires the lion’s share of investor assets,” he wrote. “In my view, the Commission could have formed its “good cause” finding by referencing the potential anti-competitive results.”

The 11 ETFs approved are:

  • Grayscale Bitcoin Trust
  • Fidelity Wise Origin Bitcoin Fund
  • (BlackRock) iShares Bitcoin Trust
  • Valkyrie Bitcoin Fund
  • ARK 21 Shares Bitcoin Fund
  • Invesco Galaxy Bitcoin ETF
  • VanEck Bitcoin Trust
  • WisdomTree Bitcoin Fund
  • Franklin Bitcoin ETF
  • Bitwise Bitcoin ETF
  • Hashdex Bitcoin ETF

 

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The Great Onboarding: US Government Anchors Global Economy into Web3 via Pyth Network

For years, the crypto world speculated that the next major cycle would be driven by institutional adoption, with Wall Street finally legitimizing Bitcoin through vehicles like ETFs. While that prediction has indeed materialized, a recent development signifies a far more profound integration of Web3 into the global economic fabric, moving beyond mere financial products to the very infrastructure of data itself. The U.S. government has taken a monumental step, cementing Web3's role as a foundational layer for modern data distribution. This door, once opened, is poised to remain so indefinitely.

The U.S. Department of Commerce has officially partnered with leading blockchain oracle providers, Pyth Network and Chainlink, to distribute critical official economic data directly on-chain. This initiative marks a historic shift, bringing immutable, transparent, and auditable data from the federal government itself onto decentralized networks. This is not just a technological upgrade; it's a strategic move to enhance data accuracy, transparency, and accessibility for a global audience.

Specifically, Pyth Network has been selected to publish Gross Domestic Product (GDP) data, starting with quarterly releases going back five years, with plans to expand to a broader range of economic datasets. Chainlink, the other key partner, will provide data feeds from the Bureau of Economic Analysis (BEA), including Real Gross Domestic Product (GDP) and the Personal Consumption Expenditures (PCE) Price Index. This crucial economic information will be made available across a multitude of blockchain networks, including major ecosystems like Ethereum, Avalanche, Base, Bitcoin, Solana, Tron, Stellar, Arbitrum One, Polygon PoS, and Optimism.

This development is closer to science fiction than traditional finance. The same oracle network, Pyth, that secures data for over 350 decentralized applications (dApps) across more than 50 blockchains, processing over $2.5 trillion in total trading volume through its oracles, is now the system of record for the United States' core economic indicators. Pyth's extensive infrastructure, spanning over 107 blockchains and supporting more than 600 applications, positions it as a trusted source for on-chain data. This is not about speculative assets; it's about leveraging proven, robust technology for critical public services.

The significance of this collaboration cannot be overstated. By bringing official statistics on-chain, the U.S. government is embracing cryptographic verifiability and immutable publication, setting a new precedent for how governments interact with decentralized technology. This initiative aligns with broader transparency goals and is supported by Secretary of Commerce Howard Lutnick, positioning the U.S. as a world leader in finance and blockchain innovation. The decision by a federal entity to trust decentralized oracles with sensitive economic data underscores the growing institutional confidence in these networks.

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US Dept of Commerce to publish GDP data on blockchain

On Tuesday during a televised White House cabinet meeting, Commerce Secretary Howard Lutnick announced the intention to publish GDP statistics on blockchains. Today Chainlink and Pyth said they were selected as the decentralized oracles to distribute the data.

Lutnick said, “The Department of Commerce is going to start issuing its statistics on the blockchain because you are the crypto President. And we are going to put out GDP on the blockchain, so people can use the blockchain for data distribution. And then we’re going to make that available to the entire government. So, all of you can do it. We’re just ironing out all the details.”

The data includes Real GDP and the PCE Price Index, which reflects changes in the prices of domestic consumer goods and services. The statistics are released monthly and quarterly. The biggest initial use will likely be by on-chain prediction markets. But as more data comes online, such as broader inflation data or interest rates from the Federal Reserve, it could be used to automate various financial instruments. Apart from using the data in smart contracts, sources of tamperproof data 👉will become increasingly important for generative AI.

While it would be possible to procure the data from third parties, it is always ideal to get it from the source to ensure its accuracy. Getting data directly from government sources makes it tamperproof, provided the original data feed has not been manipulated before it reaches the oracle.

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