Riding The Wave News Summary 186

Expect new crypto regulations to follow Bitcoin ETFs, SEC Rushes Ethereum Futures ETF Approvals Before Government Shutdown, & more.

Oct 01, 2023

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Expect new crypto regulations to follow Bitcoin ETFs

The long-running wait for Bitcoin ETF approval — giving pensions and funds exposure to BTC — may well prove to be a positive catalyst for industry growth. But, in focusing on price action, observers are missing out on the real benefit of broadscale institutional adoption. The greatest benefit of deepening institutional adoption may be the regulatory certainty it ushers in.

Determining what constitutes a taxable event in crypto depends on your dominion. While United States-based traders are required to calculate profit and loss on every trade on a decentralized exchange, perps position and on-chain events, other countries take a less rigorous approach, while a few don’t bother to tax it at all.
Regardless of where you reside, determining your obligations when buying, selling and storing digital assets can be a headache. But it could be worse: imagine how much more is at stake for businesses whose public accounts must be scrutinized and which typically require permission to list Bitcoin on their balance sheet.
There are good reasons why a higher bar is set for enterprises in terms of compliance, disclosure, reporting and taxation compared to consumers. It’s a primary reason why it’s taken so long for serious institutional adoption to manifest. But as the trickle of financial firms gaining a foothold in the space turns into a flow, the retinue of lawyers and lobbyists in tow has begun to yield dividends. When BlackRock starts beating the drum for a Bitcoin ETF, even the U.S. Securities and Exchange Commission (SEC) has to sit up and take notice.

Today, businesses and governments are pressing ahead with blockchain-based initiatives such as CBDC pilots. In Asia alone, Hong Kong and the Bank of Japan are exploring programs involving digital currencies.
Meanwhile, banks from the U.S. to Europe are introducing crypto custody and trading services for their clients. And in August, Europe’s first spot Bitcoin ETF listed in Amsterdam, proving that institutional willpower eventually gets things done.
Regulators and institutional players are still catching up in terms of expertise to those who helped build the industry from the ground up in its early days through hands-on participation. No one has complete mastery. But as a rising tide lifts all ships, greater institutional involvement will bring benefit to all players, from the humblest yield farmer to the richest whale. Rather than assume any one group has it all figured out, an open and collaborative dialogue is most likely to lead to positive outcomes. Regulators, institutions and early adopters each offer unique insights.

Full Article

SEC Rushes Ethereum Futures ETF Approvals Before Government Shutdown

The Securities and Exchange Commission (SEC) is rushing to approve Ethereum products before the government shutdown on October 1st, according to Bloomberg ETF expert Eric Balchunas. Valkyrie, VanEck, ProShares, Bitwise, Hashdex, and Volatility Shares all expect to begin trading their Ether futures ETFs on Monday.

Today, Valkyrie’s chief investment officer Steven McClurg told Reuters that the investment manager obtained SEC approval to convert its existing Bitcoin futures fund into an ETF investing in both Bitcoin and Ethereum futures. The renamed Valkyrie Bitcoin and Ether Strategy ETF (BTF) will start trading on the NYSE on October 2.

McClurg said that rival asset managers VanEck and ProShares have also received approval from the SEC to list their Ether futures ETFs.

Full Article

Europe’s Crypto Industry Wants Staking Clarity as Regulations Loom

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