Institutions Boost Prices as SEC Takes Huge Step Toward Bitcoin ETF

Institutional interest swelled in the cryptocurrency markets last week as bitcoin ETF speculation bubbled over. Bullish promise pushed bitcoin clear of September highs and up to $55,000. CEO of the Soros Fund confirmed the firm held investments in cryptocurrencies. Bank of America published a ‘too large to ignore’ report on the cryptocurrency ecosystem, and Dogecoin holders were treated to an early surprise from AMC Theatres. 

• Volt Equity gains approval for ETF of US stocks with exposure to bitcoin 
• The Soros Fund confirms investment in cryptocurrencies
• Bank of America’s Global Cryptocurrency team publishes first report
• AMC Theatres begin accepting DOGE for gift card payments

SEC approves ETF for bitcoin-exposed stocks 

Last week marked one of the best weeks on record for bitcoin, with the digital asset experiencing a 15% increase in price. After ongoing speculation that a bitcoin ETF may be on the way for October, last week the Security and Exchange Commission (SEC) approved an ETF that closely tracks the value of stocks with significant exposure to bitcoin. 

While analysts continue to speculate a true bitcoin ETF is coming, for now, investors may be able to gain exposure via an ETF that tracks the value of US stocks that are closely linked with the leading cryptocurrency. The new ETF has been created by Volt Equity and will be called the Volt Crypto Industry Revolution and Tech ETF. 

The companies selected for the ETF will either hold the majority of net assets in bitcoin or capture the majority of profits from bitcoin-related activities, such as mining. Contenders for the ETF so far include MicroStrategy, Marathon Digital Holdings, and Bitfarms. 

Tad Pak, the CEO of the fund, commented on the approval during an interview with Insider:

“I’m a strong believer in bitcoin and was excited about launching an ETF that could take advantage of the coming bitcoin revolution. We can get exposure to bitcoin without necessarily holding the coin, especially with options positions.”

Meanwhile, the battle for a true bitcoin ETF continues, with more than two dozen companies waiting for the go-ahead. The SEC has so far not approved a bitcoin ETF but upon doing so may release a torrent of new investment into the cryptocurrency sector. 

While currently unable to approve a bitcoin ETF the SEC Chair, Gary Gensler, did say that he was more amenable to a bitcoin futures ETF. Four bitcoin futures ETFs, are being evaluated before month’s end. They will become a focal point for attention for the remainder of October.

Soros Fund confirms cryptocurrency investments

Cryptocurrency momentum was accelerated last week thanks to the news that the Soros Fund, established by billionaire hedge fund manager, George Soros, had invested in leading cryptocurrencies.

Bitcoin prices climbed above September highs as the CEO and Chief Investment Officer of Soros Fund Management, Dawn Fitzpatrick, confirmed the news on Tuesday. In an interview with Bloomberg at the Bloomberg Invest Global Summit she said:

“I am not sure bitcoin is only viewed as an inflation hedge here. I think it’s crossed the chasm to mainstream. Cryptocurrencies now have a market cap of over $2 trillion. There’s 200 million users around the world. So, I think this has gone mainstream from our perspective.” 

The CEO went on to detail that although the fund owns digital coins, they are not held in significant quantities. She also commented that the coins themselves were not too exotic. 

The latest announcement confirmed suspicions that the fund had already invested in cryptocurrencies. A suspicion that had been circling as early as 2018. During July this year, it was reported that the family office had allowed the commencement of bitcoin trading. 

Bank of America releases promising crypto report

Last Monday, Bank of America (BoA) released its first report on cryptocurrencies titled ‘Digital Assets Primer: Only the first inning’. The report, which is the company’s first into the cryptocurrency sector, stated that the digital asset ecosystem has become ‘too large to ignore’. 

Covering smart contract applications, stablecoins, central bank digital currencies (CBDCs), and NFTs, the report estimated that 221 million users traded cryptocurrencies within June 2021. It also highlighted that digital asset-focused venture capital investment had increased to $17 billion during the first half of 2021 – compared with $5 billion during the whole of 2020. 

The report was supplied by BoA’s Global Cryptocurrency and Digital Asset Strategy team, which was founded by the bank in July this year. The head of the team, Alkesh Shah commented on the findings during the week:

“Bitcoin is important but the digital asset ecosystem is so much more. Our research aims to explore the implications across industries including finance, technology, supply chains, social media, and gaming.”

The head of BoA’s Global Research, Candace Browning, further commented on the potential for the cryptocurrency ecosystem during an interview with Bloomberg TV:

“If you look at the number of corporates mentioning crypto on their earnings calls, that’s gone from about 17 last year to about 147 in the most recent quarter. This is growing, this is mainstream, and it’s not just bitcoin … this is digital assets and it’s creating a whole ecosystem of new companies, new opportunities, and new applications.”

AMC starts accepting Dogecoin for gift card payments 

Although announcing that AMC would begin accepting cryptocurrencies as a form of payment before the end of 2021, the movie theatre company fast-tracked plans for Dogecoin last week. The CEO of the movie exhibition company, Adam Aaron, tweeted about the exciting news on Tuesday:

“Huge news dogecoin fans! As we work to accept online crypto payments, now you can buy AMC Theatres digital gift cards (up to $200 per day) with dogecoin and other cryptocurrency using a Bitpay Wallet. Accepted on our website, mobile app, and in theatres.”

To make a purchase, users need to utilize Bitpay’s browser extension and Bitpay Wallet. 

Although DOGE can only be used for gift cards, the belief is that soon both DOGE, BTC, ETH, and potentially other altcoins, will be used as payment for tickets. DOGE, which was not originally on the list of intended cryptocurrencies was later added after a Twitter poll highlighted the need to accommodate Dogecoin holders.

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