US Bitcoin ETFs Poised to Transform Crypto Investment, Surpassing Europe's ETPs

The imminent introduction of Bitcoin Exchange-Traded Funds (ETFs) in the United States is poised to reshape cryptocurrency investments, distinguishing it from the current European market. According to Patrick Hansen, a notable figure in the blockchain industry, Europe has long been a hub for Bitcoin Exchange Traded Products (ETPs).

These European instruments, including Exchange Traded Commodities (ETCs) and exchange-traded notes (ETNs), have been prevalent in the European market for many years. However, there are notable differences between these European offerings and the upcoming U.S. Bitcoin ETFs in terms of cost and security.

A significant cost disparity is evident when comparing the average Total Expense Ratio (TER) of Europe’s 10 largest ETPs/ETNs, which stands at 1.047%, to the average fee of the upcoming U.S. Bitcoin ETFs, post-waiver, at just 0.451%. This notable difference emphasizes a considerable financial advantage for U.S. investors in the emerging Bitcoin ETF sector.

Furthermore, the structural nature of European ETPs and ETNs poses additional risks. As these are essentially debt securities, the invested capital is not separately protected in the event of the issuer’s bankruptcy, raising the potential for investment loss. In contrast, U.S. ETFs offer a heightened level of capital protection, positioning them as more economical and secure options for investors.

As the U.S. market advances, the expected approval of Bitcoin ETFs by the Securities and Exchange Commission (SEC) will provide American investors with significantly more cost-effective and safer alternatives for Bitcoin investments than those available in Europe. This development is likely to influence investor choices, especially given the broader scope of the U.S. financial markets.

Prominent firms such as BlackRock and VanEck, among 13 contenders, have submitted revised filings to the SEC for launching Bitcoin ETFs, indicating a proactive and responsive dialogue with the SEC. These updates include provisions to safeguard shareholder interests in insolvency scenarios and prevent conflicts of interest among the ETFs’ authorized participants.

With a critical deadline approaching on January 10, 2024, for an application by Ark and 21 Shares, the SEC is expected to approve all pending applications imminently. This move is set to offer American investors more economical and secure avenues for Bitcoin investment, potentially ushering in a new era in the cryptocurrency investment landscape.

Different Ways to Trade Commodities

Raw materials such as agricultural products, energy, livestock, and precious metals are traded as commodities in the financial markets. While commodity prices can be highly volatile, traders can speculate on price fluctuations and invest opportunistically to generate profits. Investing in commodities also helps investors diversify their portfolios.

One of the ways to trade commodities is by purchasing the physical goods and storing them until their values have increased significantly enough to sell. This method is most common among individual investors who buy gold, silver, and other precious metals in various forms like bars, coins, and jewelry. Although investors benefit from their investments' actual possession and exposure, buying physical commodities comes with higher transaction costs. They typically pay a premium above the current market price due to the costs involved in the fabrication and transportation of the goods.

Producers of raw materials also use futures contracts to ensure a buyer agrees on a price, thereby hedging against market fluctuations. For example, a wheat farmer sells a futures contract involving 5000 bushels of wheat at $5 each in 90 days. If the price of wheat falls to $4 at expiry, the farmer takes a profit. On the other hand, the farmer misses out on profits if the wheat price at expiry is more than $5 each.

Investors do not need to be directly involved in buying and selling raw materials to trade in the market. They can generate profit by speculating on the value of a physical commodity and trading futures. Since investors do not intend to buy or deliver the physical goods, they liquidate or offset most contracts before delivery. If investors expect the price of a commodity to increase, they purchase futures or go long. On the other hand, they sell or short futures if they believe the price will fall.

Using the same example, investors may enter into a futures contract for 5,000 bushels of wheat at $6 each, valued at $30,000. At any point before the expiry, wheat prices could fluctuate and reach their peak. Should the price reach $10 before 90 days, they may decide to short their position and settle through their brokerage account. This gives them a $4 gain or a $20,000 profit.

Another way to trade in commodities is to buy a share of a company that uses the commodity. For example, an investor can purchase a stock of an agricultural company that sells wheat. Stock investments in commodities also follow the price of the raw materials. If wheat prices rise, companies involved in wheat production are also expected to be profitable and increase their prices.

However, investors in commodity stocks cannot rely solely on price fluctuations when speculating about the market. They must also assess how the company operates. While a price increase also raises the price of the company’s stock, problems in terms of management, production, and logistics could derail its progress.

Investors can also invest in commodities through mutual funds, exchange-traded funds (ETFs), and exchange-traded notes (ETNs). These investment vehicles pool money from small investors to form a large portfolio. In addition to tracking commodity prices, these funds can purchase futures contracts or invest in commodity stocks.

Commodity funds are generally affordable, accessible, and liquid, reducing the barrier to entry for small investors. Investors gain access to a wide range of commodities by investing in commodity funds. Investors also benefit from having a professional fund manager to oversee the portfolios. However, they have to incur additional management fees.

Similar to mutual funds, commodity pools and managed futures are useful investment vehicles. However, they are not publicly traded. As private funds, investors must gain approval before accessing the fund. They are also liquid and have higher risk-adjusted returns.

Commodities are everyday goods like metals, energy, and agricultural products. Commodity trading involves buying or selling these goods, or financial instruments based on them, to profit from price fluctuations.

While the stock market often dominates headlines, commodity trading in India has grown significantly in recent years. Here's a breakdown of the essentials:

Options Trading: This popular method uses call and put options to capitalize on price movements. Options offer flexibility and potentially high returns, but losses are capped at the option's price.

Market Categories: The commodity market is divided into four main categories: metals (gold, silver, etc.), energy (oil, gas), livestock and meat, and agricultural products (corn, wheat, rice, etc.).

Trading Platforms: Before you invest, knowing the major exchanges is crucial. These include MCX (the largest), NCDEX, NMCE, ICEX, ACE, and UCX. MCX brokers act as intermediaries between traders and the exchange.

Benefits of Investing: Consider commodity trading to:

Diversify your portfolio.

Hedge against inflation, as commodities can retain value.

Trade on lower margins for potentially higher profits.

Mitigate risks from natural disasters, wars, and economic crises.

Trading Methods: Use future contracts to buy or sell a commodity at a predetermined price in the future. This is a common way to start trading in India. Additionally, some investors use Exchange Traded Funds (ETFs) and Exchange Traded Notes (ETNs) to participate in commodity price movements.

This basic overview equips you to understand the core concepts of commodity trading in India. Feel free to share any further suggestions for aspiring commodity traders in the comments below!

✖️ Borsa di Londra: Nuovo mercato per Bitcoin ETN

👛 La Borsa di Londra (LSE) si prepara a lanciare un mercato per Exchange-Traded Notes (ETN) basati su Bitcoin a partire dal 28 maggio 2024. La mossa rappresenta un passo avanti significativo per l'adozione di Bitcoin, aprendo le porte a un nuovo segmento di investitori istituzionali e retail.

✖️ Cosa significa:

✖️Maggiore accesso a Bitcoin: Gli ETN offrono un modo semplice per gli investitori di ottenere esposizione a Bitcoin attraverso un prodotto regolamentato e quotato in borsa.

✖️Potenziale crescita del mercato: L'ingresso di nuovi capitali potrebbe favorire la crescita e la maturità del settore crypto.

✖️Considerazioni da fare: Gli ETN non investono direttamente in Bitcoin, ma replicano il suo prezzo attraverso derivati. Questo significa che gli investitori non detengono effettivamente Bitcoin e non beneficiano dei vantaggi della tecnologia blockchain, come la decentralizzazione e la proprietà diretta.

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Bitcoin, Ether ETNs to Launch on London Stock Exchange, Here’s What That Means

The UK, in another crypto-friendly development, has decided to merge its traditional regulated market with crypto. Starting May 28, the London Stock Exchange (LSE) will launch exchange traded notes (ETNs) for Bitcoin and Ether. It is notable, that these ETNs will only be made available to professional investors and traders. With this, the UK has again portrayed itself as a lucrative destination…

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First Mover Americas: Bitcoin ETNs to Debut on LSE

This article originally appeared in First Mover, CoinDesk’s daily newsletter, putting the latest moves in crypto markets in context. Subscribe to get it in your inbox every day. Latest Prices Top Stories The London Stock Exchange will roll out a market for bitcoin (BTC) and ether (ETH) exchange-traded notes (ETN) on May 28, it said on Monday. The stock exchange will accept applications for…

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EU-regulering, SEC-boete voor Ripple en LSE bereidt zich voor op Bitcoin en Ethereum ETN's

Beste Crypto-gids lezers, Wat een dag vol opmerkelijke ontwikkelingen in de wereld van crypto! Laten we samen een blik werpen op de belangrijkste gebeurtenissen van de afgelopen 24 uur. EU zet belangrijke stap in Crypto-regulering: Nieuwe regels voor Crypto-bedrijven De Europese Unie heeft haar ambities om de crypto-sector te reguleren kracht bijgezet door de aankondiging van nieuwe regels voor cryptobedrijven onder de MiCA-wetgeving. Dit baanbrekende initiatief, dat tot doel heeft transparantie en veiligheid te vergroten, markeert een cruciale stap voorwaarts in het creëren van een geharmoniseerd regelgevend kader voor de crypto-markt in Europa. Met deze regels wil de EU niet alleen investeerders beschermen, maar ook het vertrouwen in de cryptosector vergroten en innovatie stimuleren. SEC eist $2 miljard boete van Ripple (XRP) In een schokkende wending heeft de Securities and Exchange Commission (SEC) aangekondigd dat zij een boete van maar liefst $2 miljard zal eisen van Ripple Labs, de ontwikkelaar van de populaire cryptocurrency Ripple (XRP). Deze aankondiging komt als een harde klap voor Ripple en werpt serieuze vragen op over de toekomst van het bedrijf en de bredere crypto-industrie in de Verenigde Staten. Terwijl Ripple en de SEC zich voorbereiden op een juridische strijd van epische proporties, blijft de crypto-gemeenschap gespannen afwachten op het uiteindelijke oordeel van de rechtbank en de mogelijke implicaties ervan voor de regulering van cryptocurrencies. Grayscale blijft optimistisch over Ether ETF-goedkeuringen ondanks 'gebrek aan betrokkenheid' van de SEC Ondanks zorgen over een vermeend gebrek aan betrokkenheid van de Amerikaanse Securities and Exchange Commission (SEC), blijft Grayscale Investments optimistisch over de goedkeuring van exchange-traded funds (ETF's) voor Ethereum (ETH). Craig Salm, Chief Legal Officer bij Grayscale, benadrukt dat de sterke argumenten voor spot Ether ETF's vergelijkbaar zijn met die voor spot Bitcoin ETF's, en dat de huidige situatie geen reden tot ontmoediging is. Met institutionele interesse in Ethereum die blijft groeien, zou de goedkeuring van een Ether ETF een enorme mijlpaal zijn voor de acceptatie en integratie van Ethereum in de traditionele financiële wereld. Bitcoin en Ethereum ETN's debuteren op London Stock Exchange in mei Op 28 mei zal de London Stock Exchange (LSE), een van 's werelds meest toonaangevende beurzen, de primeur hebben voor Bitcoin en Ethereum exchange-traded notes (ETN's). Deze langverwachte stap, te midden van uitdagingen en afnemende handelsactiviteit op de beurs, onderstreept de groeiende acceptatie en legitimiteit van crypto-activa in de traditionele financiële sector. Met institutionele beleggers die steeds meer interesse tonen in Bitcoin en Ethereum, belooft de introductie van ETN's op de LSE een opwindende nieuwe fase in de evolutie van de crypto-markt te markeren. Het is een opwindende tijd om in crypto te zijn, vol met kansen en uitdagingen. Deze recente ontwikkelingen laten zien dat de crypto-markt steeds volwassener wordt en een steeds grotere rol begint te spelen in het mondiale financiële landschap. Blijf op de hoogte van Crypto-gids voor het laatste nieuws, analyses en inzichten over deze snel veranderende markt. Een cryptische groet, CryptoKimmy Read the full article

London Bourse to Debut Bitcoin and Ethereum ETNs in May

The London Stock Exchange (LSE) is poised to commence the trading of Bitcoin and Ethereum exchange-traded notes (ETNs) starting May 28, contingent on the approval of the Financial Conduct Authority (FCA). This development is preceded by the LSE's announcement to accept listing applications for cryptocurrency ETNs from April 8, representing a pivotal integration of digital currencies into the United Kingdom's financial marketscape. This innovative initiative aims to draw a broad spectrum of issuers and investors, mirroring the success Bitcoin ETFs have garnered in the United States since their inception in January. The LSE has delineated clear guidelines for potential issuers, stipulating an April 15 deadline for the submission of requisite documentation, including a base prospectus for FCA evaluation. ETNs and ETFs, while both

Read more on London Bourse to Debut Bitcoin and Ethereum ETNs in May

The UK financial regulator approves crypto-backed Exchange-Traded Notes (ETNs)

The Financial Conduct Authority (FCA) has opened the door for recognized investment exchanges to propose the creation of a market segment dedicated to cryptocurrency-backed Exchange Traded Notes (cETNs). As per the Journal of Banking and Finance, an ETN typically takes the form of an exchange-traded, unsecured debt security linked to a financial index. The FCA specified that these products will exclusively cater to professional investors authorized or regulated to engage in financial markets, such as investment firms or credit institutions. The existing prohibition on selling these products to retail consumers will persist, as the FCA maintains that crypto derivatives remain unsuitable for this market due to their associated risks. The financial watchdog emphasized the importance of exchanges implementing robust controls to ensure orderly trading and provide protection for professional investors. The FCA expressed confidence that, with an extended trading history offering increased insight and data, exchanges and professional investors should now be better equipped to assess whether cETNs align with their risk appetite. This move aligns with the FCA's ongoing collaboration with the government and industry to formulate crypto regulation in the UK. In a development at the close of the previous year, the National Audit Office (NAO) criticized the FCA for a delay in compelling crypto asset firms to comply with Anti-Money Laundering (AML) regulations. Read the full article

Understanding Crypto ETNs: A New Way for Investors to Play the Bitcoin Market

London Stock Exchange Accepting Applications For Bitcoin ETNs

The London Stock Exchange (LSE) announced that it will start accepting applications for Bitcoin and Ether crypto exchange-traded notes (ETNs) in the second quarter of 2024.

On March 11, the exchange confirmed that it would accept applications following the guidelines specified in its Crypto ETN Admission Factsheet. However, the exchange did not provide the exact date that it will start accepting applications.

In the factsheet, the exchange said that crypto ETNs should be physically backed and non-leveraged. They should have a market price or value measure of the underlying asset that is publicly available and must be backed by Bitcoin.

The exchange also highlighted that the underlying crypto assets should be “wholly or principally” held in a cold wallet or something similar. In addition, the assets should be held by a custodian subject to Anti-Money Laundering laws in the United Kingdom, the European Union, Switzerland or the United States.

https://cointelegraph.com/news/london-stock-exchange-bitcoin-ethereum-etn

📰 ECCO LE PRINCIPALI NOTIZIE DI OGGI LUNEDì 11/03/2024 📈

💸 Bitcoin: verso nuovi orizzonti o bolla speculativa?

Il 2024 si conferma un anno d'oro per Bitcoin, che ha toccato un nuovo massimo storico di $72.474, con un guadagno del 62% da inizio anno. L'euforia contagia i mercati, ma non mancano le voci caute che mettono in guardia contro la volatilità e il rischio di una bolla speculativa.

👾 Istituzionali a bordo: l'adozione mainstream si avvicina?

Un passo avanti significativo arriva dalla FCA del Regno Unito, che apre le porte agli investitori istituzionali per la creazione di un mercato di ETN (Exchange Traded Notes) basati su criptovalute. L'ingresso di capitali istituzionali potrebbe accelerare l'adozione diffusa di Bitcoin e delle criptovalute in generale.

🔹 Ethereum: la scalabilità verso nuovi traguardi

La seconda criptovaluta per capitalizzazione di mercato, Ethereum, supera i $4.000, trainata da fondamentali solidi. Dencun, l'atteso aggiornamento che unirà la mainnet con la beacon chain, e l'EIP-1559, che modifica il sistema di fee, alimentano il sentiment positivo e aprono la strada a una maggiore scalabilità.

👻 Memecoin: il fascino effimero o la rivoluzione del Web 3.0?

Le memecoin, come BODEN, TREMP e DANOLD, ispirate a figure politiche e meme virali, stanno vivendo un nuovo momento di hype. Tuttavia, il rischio di crolli improvvisi è dietro l'angolo. È importante non farsi prendere dalla FOMO (Fear of Missing Out) e investire con cautela, consapevoli della natura altamente speculativa di queste criptovalute.

💀 Diritti umani e pandemia: un dibattito acceso

Il Consiglio Mondiale per la Salute pubblica un rapporto controverso che denuncia l'abuso dei poteri di emergenza da parte dei governi durante la pandemia di COVID-19. Il documento accusa le autorità di aver utilizzato la crisi sanitaria come pretesto per limitare le libertà civili e ottenere poteri straordinari. La questione apre un acceso dibattito sui delicati equilibri tra sicurezza pubblica e diritti individuali.

🤖 Oltre le news: approfondimenti e spunti di riflessione

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Bitcoin, Ether ETNs to Launch on London Stock Exchange, Here’s What That Means

The UK, in another crypto-friendly development, has decided to merge its traditional regulated market with crypto. Starting May 28, the London Stock Exchange (LSE) will launch exchange traded notes (ETNs) for Bitcoin and Ether. It is notable, that these ETNs will only be made available to professional investors and traders. With this, the UK has again portrayed itself as a lucrative destination…

View On WordPress

Crypto Traders Dismiss Waning ETF Inflows as Bitcoin Holds Steady Over $70K

Bitcoin (BTC) briefly topped the $71,000 mark early Tuesday before retreating as market sentiment grew on new bitcoin-based institutional product offerings and demand from traditional desks. Crypto markets started rising on Monday as the London Stock Exchange approved a marketplace for trading bitcoin and ether (ETH) exchange-traded notes (ETNs) in May, as reported. The LSE will start to accept…

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EU-regulering, SEC-boete voor Ripple en LSE bereidt zich voor op Bitcoin en Ethereum ETN's

Beste Crypto-gids lezers, Wat een dag vol opmerkelijke ontwikkelingen in de wereld van crypto! Laten we samen een blik werpen op de belangrijkste gebeurtenissen van de afgelopen 24 uur. EU zet belangrijke stap in Crypto-regulering: Nieuwe regels voor Crypto-bedrijven De Europese Unie heeft haar ambities om de crypto-sector te reguleren kracht bijgezet door de aankondiging van nieuwe regels voor cryptobedrijven onder de MiCAr-wetgeving. Dit baanbrekende initiatief, dat tot doel heeft transparantie en veiligheid te vergroten, markeert een cruciale stap voorwaarts in het creëren van een geharmoniseerd regelgevend kader voor de crypto-markt in Europa. Met deze regels wil de EU niet alleen investeerders beschermen, maar ook het vertrouwen in de cryptosector vergroten en innovatie stimuleren. SEC eist $2 miljard boete van Ripple (XRP) In een schokkende wending heeft de Securities and Exchange Commission (SEC) aangekondigd dat zij een boete van maar liefst $2 miljard zal eisen van Ripple Labs, de ontwikkelaar van de populaire cryptocurrency Ripple (XRP). Deze aankondiging komt als een harde klap voor Ripple en werpt serieuze vragen op over de toekomst van het bedrijf en de bredere crypto-industrie in de Verenigde Staten. Terwijl Ripple en de SEC zich voorbereiden op een juridische strijd van epische proporties, blijft de crypto-gemeenschap gespannen afwachten op het uiteindelijke oordeel van de rechtbank en de mogelijke implicaties ervan voor de regulering van cryptocurrencies. Grayscale blijft optimistisch over Ether ETF-goedkeuringen ondanks 'gebrek aan betrokkenheid' van de SEC Ondanks zorgen over een vermeend gebrek aan betrokkenheid van de Amerikaanse Securities and Exchange Commission (SEC), blijft Grayscale Investments optimistisch over de goedkeuring van exchange-traded funds (ETF's) voor Ethereum (ETH). Craig Salm, Chief Legal Officer bij Grayscale, benadrukt dat de sterke argumenten voor spot Ether ETF's vergelijkbaar zijn met die voor spot Bitcoin ETF's, en dat de huidige situatie geen reden tot ontmoediging is. Met institutionele interesse in Ethereum die blijft groeien, zou de goedkeuring van een Ether ETF een enorme mijlpaal zijn voor de acceptatie en integratie van Ethereum in de traditionele financiële wereld. Bitcoin en Ethereum ETN's debuteren op London Stock Exchange in mei Op 28 mei zal de London Stock Exchange (LSE), een van 's werelds meest toonaangevende beurzen, de primeur hebben voor Bitcoin en Ethereum exchange-traded notes (ETN's). Deze langverwachte stap, te midden van uitdagingen en afnemende handelsactiviteit op de beurs, onderstreept de groeiende acceptatie en legitimiteit van crypto-activa in de traditionele financiële sector. Met institutionele beleggers die steeds meer interesse tonen in Bitcoin en Ethereum, belooft de introductie van ETN's op de LSE een opwindende nieuwe fase in de evolutie van de crypto-markt te markeren. Het is een opwindende tijd om in crypto te zijn, vol met kansen en uitdagingen. Deze recente ontwikkelingen laten zien dat de crypto-markt steeds volwassener wordt en een steeds grotere rol begint te spelen in het mondiale financiële landschap. Blijf op de hoogte van Crypto-gids voor het laatste nieuws, analyses en inzichten over deze snel veranderende markt. Een cryptische groet, CryptoKimmy Read the full article