On this crypto episode of A Wiser Retirement™ Podcast, we talk about the Bitcoin ETF launch, the SEC’s X account getting hacked, VanEck delisting their ETF, Greyscale outflow, and Bitwise. Listen to this episode with Casey Smith who is joined by Robert Swarthout, Founder, CEO, and Portfolio Manager of Teton Crypto Capital.
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Bitcoin ETF Launch and the SEC’s X Hack
There were initial false reports of the Bitcoin ETF approval through the SEC’s X account, which resulted in a brief spike in Bitcoin’s price. However, it turned out the account had been hacked, with the real approval coming on January 11, 2023. The hacker is believed to have made profits by leveraging on the price increases from the fake news. They were able to recover the account within less than an hour of the incident. A later investigation revealed it was actually a third-party issue, and the account was not hacked.
Bitcoin ETF Fees
ETFs, including Bitcoin ETFs, are chosen based on price, fees, and volume. The fees include both management fees, which range from 0.2% to 1.5%, and bid-ask spreads. Larger Bitcoin ETFs, such as those from BlackRock, Bitwise, and Fidelity, will have tighter spreads due to greater volume. Newer, lesser-known Bitcoin ETFs may have wider spreads. Some Bitcoin ETFs, such as those from Arc, Wisdom Tree, Invesco, and Valkyrie, have offered no fees for the first six months.
Is Bitcoin a commodity?
Bitcoin is considered a commodity. The Bitcoin ETF has risen in value and actually surpassed silver as the second largest commodity ETF. Bitcoin is often compared to gold due to its limited supply and increasing market value. In a way, it serves as a digital alternative to gold and other precious metals. However, it is not without its challenges, such as the issue of liquidity and transferability, and the volatility in its price. Some people think Bitcoin might be the future alternative to traditional investments like gold.
Cryptocurrency Industry Updates
Sam Bankman-Fried of FTX and the former Nissan CEO, Carlos Ghosn, have found themselves in legal trouble for allegedly breaking anti-money laundering laws and other regulations.
Much of Gresyscale outflow can be attributed to FTX estate selling its holdings.
Larry Fink, the CEO of BlackRock, expressed positivity towards crypto ETFs and the concept of asset tokenization during an interview at the World Economic Forum.
VanEck announces they will be delisting their ETF.
There are still ongoing SEC’s lawsuits and debates surrounding the definitions of digital assets as commodities or securities.
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