Bitcoin today: ETFs; Nuclear Powered Bitcoin Mining; Replacing gold with Bitcoin
The SEC may approve up to four bitcoin futures ETFs in October. SEC Chair Gary Gensler has been more receptive to bitcoin futures ETF. The US Securities and Exchange Commission may approve up to four bitcoin futures exchange-traded funds in October, a major victory for the $6 trillion ETF sector. According to Bloomberg Intelligence, the SEC must accept, deny, or postpone four petitions this month. There is also the Invesco Bitcoin Strategy ETF, VanEck Bitcoin Strategy ETF, and Valkyrie Bitcoin Strategy ETF.
They will not hold the underlying digital asset. Instead, these funds will own bitcoin contracts, which are governed by the Investment Company Act of 1940. Distinguishing itself from other bitcoin-related ETFs that have been delayed or denied, the SEC Chair stated in September that he looks forward to examining bitcoin futures ETF applications. Volt Equity’s ETF, which tracks businesses that hold a majority of their net assets in bitcoin or earn a majority of their income from operations including mining, financing, and manufacturing mining equipment, was authorized by the SEC this week.
Gensler has been delaying the approval of bitcoin ETFs due to concerns about market manipulation. The SEC has authorized Volt’s bitcoin ETF, which invests in businesses that hold and benefit from BTC. In addition, the ETF monitors companies that derive a majority of their revenue or profit from bitcoin-related activity.
Bitcoin mining and nuclear power
A rising feeling of enthusiasm among crypto enthusiasts, including Miami mayor and bitcoin enthusiast Francis Suarez, who has attempted to entice miners to Miami by promoting a neighboring nuclear facility. However, there are some intriguing opportunities for these two sectors to operate together. Activists for nuclear energy want greater investment and support for the country’s biggest existing carbon-free electricity source. Nuclear power now provides 20% of the US grid, a vital carbon-free baseload power supply.
It’s fair to assume that some cash-strapped nuclear plant owners will use mining partnerships to keep their aging reactors running, not to advance technology. With this profitability, the plants can remain open, providing miners a treat while keeping the US’s largest source of zero-emission electricity running. There’s also the issue of how many miners will sign up to receive electricity from nuclear facilities, which might help ailing plants throughout the nation when it’s almost definitely more costly. However, many mining companies will continue to use cheaper energy sources, such as fossil fuels and renewables, despite the PR benefits.
Replacing gold with Bitcoin
Investments in gold are often seen as a hedge against inflation because of the belief that it preserves buying power and has the potential to offer protection amid market turbulence.
But now it seems that Bitcoin’s appeal as an inflation hedge is luring institutional investors back to the cryptocurrency market, according to a research note to clients published on October 6 by JPMorgan’s Nikolaos Panigirtzoglou. The analyst also said that the inability of gold to react in recent weeks to increased worries about inflation might be a factor in bitcoin’s resurgence.
Bitcoin prices have just risen over $50,000, representing an 85 percent increase in value this year. Since the beginning of the year, the price of ether, the native currency of the Ethereum blockchain, has increased by 393 percent.
Meanwhile, gold prices are staying at $1,800 per ounce, with a projected decline of 6.5 percent in 2021 compared to this year.