VanEck’s Limited Bitcoin ETF Loses Steam, Manages to Issue Only 4 Bitcoins

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VanEck’s Limited Bitcoin ETF Loses Steam, Manages to Issue Only 4 Bitcoins
The VanEck’s Limited Bitcoin ETF has proved unimpressive so far with only 4 BTC tokens issued. Some crypto experts have also slammed VanEck for its marketing gimmick saying the product is nowhere close to real ETF.
VanEck’s Limited Bitcoin ETF Loses Steam, Manages to Issue Only 4 Bitcoins

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Source: CoinSpeaker

Blockstack’s SEC-approved token offering raises $23 million

US-based blockchain startup, Blockstack PBC, is in the news after it announced that it had raised about $23 million in an SEC-approved token offering, making it the first to run a token offering under regulation A+. Blockstack shared the update with the community via a blog post which suggested that over 4,500 people and entities […]
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Source: AMB Crypto

Are Companies Over-Marketing Bitcoin ETFs? VanEck’s ETF Attracts Only 4 BTC In First Three Days

The VanEck SolidX ‘limited’ Bitcoin ETF is now three days old, however, it seems it is having trouble gaining attention from investors. As of now, only assets worth 4 BTC have been put into the fund so far.
Lack of Interest Witnessed in Institutional Investors
Although the Bitcoin product has been live for three days, institutional investors seem to lack an interest in VanEck’s SolidX limited ETF. The fund has only managed to issue only a basket of assets, with mere 4 BTC in it, worth approximately $41,400.
 A week ago, it was reported that VanEck Securities and SolidX Management would be releasing a ‘limited’ Bitcoin ETF despite not receiving the green light from the SEC. This modified ETF is being offered through an SEC exemption, only available to hedge funds and banks. 
While it is still in nascent stages, the crypto community is of the belief that Bitcoin ETF will be a key to all solutions in the crypto arena. 
The “limited” ETF was expected to gain approval from the SEC. However, considering the funds’ abysmal assets, the future looks bleak. The low numbers can be attributed to strict rules levied by SEC. This invariably limits the participation to a number of accredited investors from a smaller pool of the financial world.
The Stand Of SEC On Bitcoin Custody Solutions Still Unclear
Within just a week post its launch, the limited Bitcoin ETF has been a part of several controversies. Recently, leading Lawyer, Jake Chervinsky compared it to Grayscale Bitcoin Trust. Further, stating that it was a cute market strategy and calling it a “full” ETF was misleading. 
Earlier in the day today, SEC chairman Jay Clayton, told CNBC in an interview that, “there is still work to be done”, when asked about the possibility of a Bitcoin ETF in the near future.

Are we any closer to seeing a Bitcoin ETF some day? SEC Chairman Jay Clayton to @CNBC: "yes, but there's work left to be done" @SEC_News @bobpisani @kellycnbc @CNBCTheExchange #bitcoin #crypto pic.twitter.com/iJP3nn9XHc
— The Exchange (@CNBCTheExchange) September 9, 2019

While the limited ETF is certainly not the end goal, it is just a soft start and would eventually lead to a full Bitcoin ETF. 
Is too much being expected out of VanEck SolidX “Limited” Bitcoin ETF, or is it just to build pressure on SEC, to roll out a full Bitcoin ETF? Let us know what you think?
 
The post Are Companies Over-Marketing Bitcoin ETFs? VanEck’s ETF Attracts Only 4 BTC In First Three Days appeared first on Coingape.
Source: CoinGape

Nomics Crypto Aggregator Launches New Crypto Transparency Service

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Nomics Crypto Aggregator Launches New Crypto Transparency Service
Nomics has just announced a new service called Transparent Volume. This will be used by investors and other interested stakeholders to determine how much publicly recorded trading volumes are real and not falsified.
Nomics Crypto Aggregator Launches New Crypto Transparency Service

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There is Only a 7% Chance that Bitcoin Price Will Hit $20,000 in 2019

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There is Only a 7% Chance that Bitcoin Price Will Hit $20,000 in 2019
An analyst has shown data that seems to belittle all forecasts that currently see Bitcoin hitting $20k in 2019. According to the data, there is a 93% chance that Bitcoin will stay below its all-time high.
There is Only a 7% Chance that Bitcoin Price Will Hit $20,000 in 2019

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Source: CoinSpeaker

Bitcoin ETF will bring the Glamour, but not the Glow: Explainer Part 1

Hold your horses, the Bitcoin ETF might not be as big as it seems. At the beginning of the year, cryptocurrency enthusiasts were hopeful. With 2018 ending on such a low, a pessimistic baseline was set. Hence, anything 2019 had to offer, was thought to be positive. Eight months into the year, proponents are elated […]
The post Bitcoin ETF will bring the Glamour, but not the Glow: Explainer Part 1 appeared first on AMBCrypto.
Source: AMB Crypto

Bitcoin ETF approval will bring the Glamour, but not the Glow: Explainer Part 2

This is the second part of “Bitcoin ETF approval will bring the Glamour but not the Glow.” The first part can be found here.  The EFFECT No doubt a publicly-traded Bitcoin product would spur wider investments and interest digital assets as a whole. At present, exchanges are increasingly moving to shorten the on-ramp between fiat […]
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Source: AMB Crypto

This Week in Cryptos: Fed Chair Speaks of BTC and Gold While Binance Launches Margin Trading

Key highlights

Fed Chair compares BTC & Gold
SEC Approves First Two RegA+ Tokens
Miami Dolphins accepts LTC
Chinese Police Seize 4,000 Cryptocurrency Miners
Binance launches margin trading

Fed Chair compares BTC & Gold
In an interesting turn of events this week, Federal Reserve Chairman Jerome Powell said that he can foresee a return to an era where multiple currencies are in use in the United States. During Powell’s testimony before the Senate Banking Committee on Facebook’s planned Libra cryptocurrency, he said “Almost no one uses bitcoin for payments, they use it more as an alternative to gold,” he said Thursday afternoon. “It’s a speculative store of value.
SEC Approves First Two RegA+ Tokens
Slowly but steadily, this week, SEC should sign of moving positively towards cryptos. This week, SEC approved First Two RegA+ Tokens, Blockstack, and Props. This green light from the regulator meant the companies could now raise funds through token sales. Props, a spin-off of influencer live-streaming app YouNow, already raised $21 million in a pre-sale with the likes of Union Square Ventures, Comcast, Venrock, and Casey Neistat and will not be raising any money with the RegA+. Blockstack, on the other hand, is seeking to issue a limited amount of “stacks,” which will allow users to purchase domain names, personal identities, and network traffic on the Blockstack network.
Miami Dolphins accepts LTC
This week, another sports team associated itself with cryptos. And its NFL’s Miami Dolphins. Announced by the Litecoin Foundation this week, the partnership between the NFL team and Litecoin will kick off on Sept. 5 – the start of the 2019 NFL season where the Dolphins will accept Litecoin as their “official cryptocurrency.” With this partnership in place, Dolphins fans, at home games at the Hard Rock Stadium, will be able to pay with Litecoin and bitcoin when buying tickets for the Dolphin’s 50/50 raffle, which gives half of the proceeds to the Miami Dolphins Foundation and its charitable causes.
Chinese Police Seize 4,000 Cryptocurrency Miners
Moving across the Eastern countries, this week saw some bad news coming from China. Police in Jiangsu, an eastern-central coastal province in China, seized 4,000 miners that were being used to illegally mine cryptocurrency at nine different factories. The police launched an investigation after a local power firm reported an abnormal electricity consumption spike that led to an energy loss of about $3 million.
Binance launches margin trading
Another service addition but Binance to enhance its offerings and its margin trading. In a company announcement, Binance CEO Changpeng “CZ” Zhao said that the new platform will serve to amplify “trading results of successful trades.” Using the new Margin Trading platform, users can leverage their digital assets in order to borrow funds from Binance. They can then trade the borrowed money — a practice that comes with high risk but also allows for amplified profit potential.
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Source: CoinGape

Amidst Recent Hack, Remixpoint Gets New Crypto Services Approvals

Bitherb Co. Ltd. which is a subsidiary of Japanese public company Remixpoint, which operates a regulated Japanese crypto exchange, Bitpoint Japan, has been approved by Thailand’s Securities and Exchange Commission (SEC) to operate four new crypto services.
According to report on the commission’s website, the company, which has not begun operating on these approvals yet would be able to operate along the lines of the country’s SEC categories of crypto operation approvals available to companies including crypto exchange service, digital token exchange service, crypto brokerage service, and a digital token brokerage service.
The past few days have been particularly disheartening for Remixpoint and its subsidiary companies. On Thursday, the company announced a break of security in which one of its subsidiaries, Bitpoint, a Japanese crypto exchange was hacked and lost $32 million in crypto assets. Although the assets that were stolen were not exactly reported at the time, the exchange had trading support for five major cryptos including BTC and ETH.
The news of new approvals and event of hacking coming at the same time would create a mixed feeling for the big company who seemed to have several subsidiaries. While issues of refunding the customers affected in Bitpoint hack comes to mind, another issue is the funding of the new projects recently gotten approvals for.
Thailand seems to be catching up in the cryptocurrency adoption game. Recently, the Thai’s SEC approved three other companies to operate crypto services. These companies, which were all approved this year include Bitkub Online Co. Ltd. (Bitkub), Bitcoin Co. Ltd. (BX), and Satang Corporation (Satang Pro) — were approved in January. All of them got approvals for both cryptocurrencies and digital tokens.
Remixpoint announced in February that  BitHerb Co. Ltd. had gotten four approvals. However, the commission had not completely validated the subsidiary’s system and had not added it to its list of approved companies.
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Source: CoinGape

For the First Time Ever SEC Approves Blockstack Token Sale Under Regulation A+

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For the First Time Ever SEC Approves Blockstack Token Sale Under Regulation A+
SEC, for the first time ever, approved a $28 million Reg A+ offering for decentralized Internet company Blockstack. The company will begin selling the SEC-approved tokens, essentially an investment vehicle for fundraising, as of today.
For the First Time Ever SEC Approves Blockstack Token Sale Under Regulation A+

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How Crypto Custodian Firms will Form New Age Banks Under the SEC Guidelines: Analyst

Recently, the SEC in the US released a new set of guidelines on 8th July 2019, specifically for cryptocurrencies service providers. The SEC regulations have kept the start-ups under a lot of doubts for the current guidelines have failed to cover cryptocurrencies.
According to their new press release, the SEC will view custody arrangements and non-custodial arrangements differently. Furthermore, it has also allowed for the inclusion of non-custodial service firms to operate in the US. This is a positive move for start-ups like P2P platforms, payment facilitators, and OTC desks.
Caitlin Long, from the Wyoming Blockchain Task Force – a state-sponsored Task Force, established for blockchain development, reviewed the new rules and shared here analysis for the future of Crypto Custody Firms.
The pending ETF proposal, along with several other trading applications and Exchanges require the firms to act as custodians of the cryptocurrencies. Hence, Caitlin thinks that
“SEC’s new guidance would have been a bummer for the #crypto custody industry were it not for #Wyoming‘s new #SPDI law”
The State of Wyoming in the Western part of the United States has enacted several laws related to blockchain earlier this year, making it the only state which provides a comprehensive legal framework for entities engaging with cryptocurrencies.
The ‘Custody Rule & Customer Protection Rule’ set up by the SEC is to protect the traders and investors against all possible threats to their investments. The Crypto Custody firms have so far established themselves as Trusts; however, they are still failing to meet the SEC guidelines.
here’s the definition of “bank” under the Exchange Act–state-chartered banks work here, but trust cos don’t. So…#Wyoming is where #digitalsecurities custodians (& #crypto custodians more broadly) are likely to set up shop, using our new #SPDI law. Come check us out!
Definition of a bank according to the SEC (Source)
SPDI is an abbreviation for ‘Special purpose depository institutions,’ these are essentially banks that act as custodians but do not engage in any kind of lending or leveraging activities. The inclusion of such services within the Financial Industry is imperative because it will help prosper ‘hard money’ over an interest rate and inflation driven economy that is expected to doom. Many experts have suggested that the current financial system is failing, and cryptocurrency is a hedge against that.
Caitlin also predicted that in a tweet that Trust companies in the US like Gemini, Grayscale, and so on will probably end up being banks to facilitate crypto trading and custody. She tweeted,
set up trust companies (NY, SC, NV) will prob end up converting to a #Wyoming #SPDI so they can meet certain #SEC rqmts simply by nature of being a bank (such as good control location, among others). We knew the #SEC has a preference for banks over trust cos as #crypto…
Therefore, it might not be long before the actual ‘crypto-banks’ start competing in the Financial Services industry.
What do you think the existing banks will do to shun the competition? Please share your views with us. 
The post How Crypto Custodian Firms will Form New Age Banks Under the SEC Guidelines: Analyst appeared first on Coingape.
Source: CoinGape

Regulation: US Legislators Debate New Crypto Rules

A bipartisan group of 20 US legislators in Washington has requested the Internal Revenue Service (IRS) to update its 2014 guidance on cryptocurrencies. The new update is expected to be made in the coming weeks.
In this new development, legal issues relating to the adoption and use of cryptos are particularly a point of interest, in which at least three bills are being considered for this purpose.

Brief History
Regulations in the US has never smiled at cryptocurrencies and its adoption in the region. And for the over 10 decades of existences of this set of digital assets, the US financial regulators have constantly enacted laws and regulations which widely restrict participation. Most recently, as Facebook aimed to bring cryptocurrencies to the public, it has met with regulatory obstacles, a result of which the proposed Libra project had to be halted.
With regards to Libra, Facebook had recognized the favorable framework of regulations in regions like Japan and Switzerland which prompted the social media giant to initiate the developmental process of its cryptocurrency in Switzerland. This, many US residents believe is a setback for the country in some ways.

“The concern I have is really about driving innovation out of the country,”

said Rep. Tom Emmer (R., Minn.), who led the congressional delegation that asked for the new IRS guidance.
The Unacceptable Bitcoin
Altho/ugh Bitcoin and other cryptocurrencies show great prospects and usability, they have also been able to gain disrespect among financial agencies which believe digital currencies like bitcoin are used and adopted for its anonymity of transaction and use especially among drug dealers and scammers. This explains why regulations are not the only issues faced with cryptocurrencies.
Not Everyone Is Happy
And not everyone in Congress like the idea. Last Tuesday, Rep. Maxine Waters (D., Calif.), chairwoman of the House Committee on Financial Services, asked Facebook to stop developing its Libra for the regulatory procedure to confirm its safety to the public, and global financial stability. The committee is set to hold a hearing on Libra later this month. According to spokesman Joshua Gunter, Facebook plans to work with legislators and attend hearings.
The Internal Revenue Service (IRS) in 2014 proposed to treat Bitcoin as an investment property in the same category as stocks or bonds. This subjected the crypto to capital-gain taxes and U.S. taxpayers were to report every gain or losses on the digital currency.
Legislators seem to have a different point of view. A bipartisan group of House members earlier this year suggested a law that would grant cryptocurrency a de minimus exemption as bonds and stocks. However, this Token Taxonomy Act would also exempt cryptocurrencies like bitcoin from being classified as security assets.

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Source: CoinGape

SEC Demands Blockchain Data From Providers To Improve Compliance, And Inform Policy

The U.S. Securities and Exchange Commission (SEC) is not backing down on its blockchain data policies. As a body which has been very pessimistic about blockchain efficiency and feasibility, SEC is now looking to narrow down its pessimistic approach towards the ecosystem and this time, how much data actually exist on the various blockchain is of significant interest.
Cryptocurrencies Vs Regulators
Cryptocurrencies lately have struggled to put their heads above waters under the watchful eyes of governments, financial agencies, and regulators seeking to either ban or restrict the blockchain in their respective areas.
One of the scapegoat projects that have recently jumped into rocky waters is Facebook’s Libra project. As at now, Libra’s development has been stopped and further developments are however uncertain.
SEC’s Data Requirements
The requirements listed by the SEC that all data is derived from hosted notes in the stead of blockchain explorers. The Bitcoin and Ethereum blockchains are important considerations, while others like Bitcoin Cash, Stellar, Zcash, EOS, NEO and XRP data are all specified as optional and therefore desirable. Also, as new blockchains gain increased recognition, the SEC would require support for them. The SEC wants total blockchain data from the original block or inception and information about any alternative currencies (tokens) connected with these blockchains.
What SEC Seeks To Achieve?
The SEC is popular for its various regulatory operations and activities on financial issues. As a matter of regulation, the SEC has made it a point of duty to alert investors about the dangers involved in purchasing securities and also to educate them on how to invest wisely. Lately, the SEC has gone widely against cryptocurrencies and have made several regulatory attempts at the industry, always looking to put this industry in check. This time, having a glimpse of what blockchain data contains and looks like will enable the commission to enact the regulations needed to really put the space under strict watch and control.
Required Data Format
The data style required is very particular with normalized regions for each included blockchain derived from on-node data, entirely. The least region indicated is ticker symbol; sending and receiving addresses; transaction stamp or hash, timestamp, and amounts; unspent send and receive balances; transaction fees; confirmations; block hash, and block height.
Possibly, the SEC also wants further metadata and chain metrics such as hashing algorithms and power, difficulty in mining and associated rewards, transactions values, size and quantity, coin supply and blockchain size.
The data, according to SEC should be provided directly by the vendor’s own node for each blockchain using a secure, digitally protected data feed; synchronized with the network; and run in a secure, controlled environment. The data must also be presented with a way to confirm its accuracy and completeness and meet the requirements of financial statement audit testing.
Application Deadline
The length of the contract is a period of 12 months originally which is followed by four consecutive 12-month terms which are optional. The application requires both a price and technical quote. Data vendors are expected by the SEC to submit an application by 12 pm EST on the 11th of July, 2019.
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Source: CoinGape

Blockchain Association to Oversee Spending of the Defend Crypto Fund

The Blockchain Association has taken over the “Defend “Crypto” fund setup to help finance the legal battle between Kik and the SEC. The social messaging firm has stated that it feels the money could be better put to use by the industry collectively.
Kik will take back the original $5 million it had donated to get the fund off the ground. The remaining money  be under the Blockchain Association’s care and will go towards protecting crypto assets.
Kik Donates Donations to Fight the Broader Crypto Fight
The social messaging firm originally founded the fund to help it finance its ongoing legal battle against the United States Securities and Exchange Commission.
The legal dispute centres on the initital coin offering the company ran in 2017. The securities regulator claims that the Kin tokens sold to investors are in fact legally classified as a security and therefore the offering was against the law since Kik did not register prior to the sale.
Meanwhile, Kik holds that its token is not simply an investment and is being used as currency by hundreds of thousands of users. The #DefendCrypto fund was established to help the firm argue this point in court and, if victorious, may well have helped to prompt the drafting of new legislation to define cryptocurrencies outside of existing legal regulations.
However, earlier today, Kik announced that it would be allowing the Blockchain Association to oversee the spending of the more than $2 million remaining in the fund. The reasoning stated for this was that crypto would be best defended as a collective.

The Blockchain Association takes over Kik's Defend Crypto fund to advance favorable ecosystem-wide crypto securities precedent https://t.co/lPUJbak0Fy #bitcoin #ethereum
— Erik Voorhees (@ErikVoorhees) June 28, 2019

From the announcement, it appears that the formation of the #DefendCrypto fund has sparked a dialogue between once-distant industry participants and that the community response from those also impacted by the lack of regulatory clarity in the US confirms that the issue is much bigger than Kik. The firm noticed that the problems impacting it were far from unique and that it would make more sense to distribute the money to those that need it more than an established company with deep pockets already.
Kik states that from today, the fund will be used to “support other projects fighting their own battles and litigation that impacts the broader crypto industry.”
For those that don’t know, the Blockchain Association is a Washing D.C.-based lobbyist group. According to its website, its stated goals are as follows:
“The mission of the Blockchain Association is to advance U.S. public policy for the crypto ecosystem. We believe policy should be made in an open rulemaking process or open legislative process, where ideas can be vetted, debated, improved upon, and anyone who is impacted can share their views. “
The members of the association are reportedly chosen by existing members based on their contributions to the digital asset industry.
 
Related Reading: A Second Chance With Ethereum For Those That Missed the Bitcoin Boat
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Maxonrow Joins the Blossoming Blockchain Industry in Kuala Lumpur and Taipei

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Maxonrow Joins the Blossoming Blockchain Industry in Kuala Lumpur and Taipei
One of the emerging blockchain firms in the space, Maxonrow, views the growth of blockchain in Southeast Asia as an opportunity to set a precedent of cooperation between government agencies and blockchain enterprises.
Maxonrow Joins the Blossoming Blockchain Industry in Kuala Lumpur and Taipei

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Source: CoinSpeaker