Bitcoin ETFs Gather Steam | Buy Tesla With Bitcoin

FIDELITY MAKING BITCOIN ETFS A FAIT ACCOMPLI?

The success of the first bitcoin ETFs in Canada, with one hitting the $1 billion mark in assets under management in under a month, may prompt regulators to finally approve an application. On Wednesday, Fidelity Investments’ subsidiary, FD Funds Management, submitted an S-1 filing to the Securities and Exchange Commission outlining its intention to financially back an ETF called the Wise Origin Bitcoin Trust. If approved by the SEC, the ETF will track the performance of bitcoin as measured by the movement of the Fidelity Bitcoin Index. The investment giant’s crypto unit, Fidelity Digital Asset Services, will act as the custodian for the trust.

But that is not all. Last week, the SEC acknowledged a Bitcoin ETF proposal from VanEck, backed by Cboe Global Markets, the operator of the largest U.S. options exchange. The SEC now has 45 days to make a decision or extend the review of the proposal. Additionally, on March 19, First Trust Advisors and SkyBridge Capital, the hedge fund led by former White House communications director Anthony Scaramucci, submitted a bitcoin ETF proposal. Finally WisdomTree, one of the major ETF providers in the U.S., also submitted an application this month.

YOU CAN NOW BUY A TESLA FOR A FRACTION OF A BITCOIN

On Wednesday, Elon Musk announced that bitcoin could now be used to purchase Tesla vehicles, a hotly anticipated move first teased when Tesla revealed it had invested $1.5 billion in the asset. What’s more, bitcoin paid to Tesla will be retained as the cryptocurrency and not converted back to dollars, as most companies that accept bitcoin usually do.

For now, only U.S. customers will be able to pay for Tesla vehicles with bitcoin, though Musk said this payment option will become available outside the U.S. later this year. The bitcoin price pushed back beyond $55,000 on Musk's announcement.

BIG BITCOIN DIP

Bitcoin’s price spike was short-lived. On Thursday morning the price of the cryptocurrency dropped 9.4%, pushing its market capitalization below $1 trillion all the way down to $970 billion. In total, bitcoin has lost nearly 15% from its all-time high of $61,699 earlier this month. One reason for this movement is the nearly $6 billion of bitcoin options expiring on Friday and effectively forcing investors to either double-down on risky bets or unwind their positions—the perfect recipe for volatility. For a bit of perspective, this options expiry is significantly larger than the previous $4 billion record, set in late January.

BLOCKCHAIN 50 SPOTLIGHT

The technology arm of Indian conglomerate Mahindra Group has developed multiple blockchain technologies powering telecom, banking, financial and insurance industries among others. In July 2019, it introduced a blockchain-based web application that helps retail telecom customers to manage their consent and preferences to avoid spam communication. The application provides traceability of violations of customer preferences thus imposing control on local telemarketers and consolidating their data for verification and external audit purposes. More than 500 million mobile subscribers across nine operators, including India’s largest telecom providers, accounting for more than 50% of India’s telecom market, have been onboarded on the network.

ELSEWHERE

 
Chainalysis Raises $100 Million, Underscoring Surging Demand for Blockchain Surveillance [CoinDesk]

Crypto token of New York Times column sells for $560,000 [NYTimes]

Miami-Dade commissioners approve crypto exchange FTX's bid to rename Miami Heat sports arena [The Block]

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