NUMEUS GROUP’s Post

Now that the prospect of Bitcoin spot ETFs being approved by the SEC in early 2024 is a foregone conclusion, what does it mean from a tax perspective. Structurally, all BTC spot ETFs will be publicly traded grantor trusts (similar to commodity ETFs like GLD). Thus, ETF holders could - in theory - exchange the ETF units for BTC and vice versa without a tax realization event. That is, a grantor trust is largely ignored for tax and the unitholders are deemed to hold an undivided interest in the trust assets (i.e., BTC). In the case of Bitcoin ETFs, even though the ETF shares will be securities for SEC purposes they will not for tax purposes (just as BTC itself is not a security for tax purposes). So, trading in Bitcoin ETF shares will not be subject to the wash sale rules or the constructive sale rules - same as BTC. There are several other tax nuances to the ETF units not constituting securities for tax purposes, some helpful, some not so. The digital asset group at KPMG is working with issuers and investors to best prepare and take advantage of the upcoming opportunities. If you work with digital assets, you should be working with KPMG. #digitalassets #crypto #tax #etfs #bitcoin #sec #regulation https://lnkd.in/ecm9U8SW

Are the bitcoin ETFs behind the rally to $50K? Net inflows into the newly approve Bitcoin ETFs have hit ~$3bn. That's about $10bn of inflows into the 9 newly launched ETFs offset by ~$7bn of outflows from $GBTC (essentially the incumbent) that continues to charge a high 1.5% management fee. In contrast, $GLD, the largest physical gold ETF took 2 years to see $3bn of net inflows, according to Bloomberg's Eric Balchunas. It's quite possible these launches will alter the current cycle. In each of the past cycles, bitcoin had a 30-50% mid-cycle pullback. Now that bitcoin is wrapped in the consumer friendly ETF wrapper, steady inflows may lead to a less severe pullback. The unsustainable trajectory of US and OECD debt levels could also help. Economies just can't handle high rates because of debt levels. Gold's historically strong negative correlation to rising real yields (inflation adjusted interest rates) has broken over the past two years. Gold has been steady despite sharply higher real yields. Western investors, who are familiar with the correlation, pulled ~8% out of #gold ETFs in 2023, but global Central Banks were notable buyers. This trend has continued in 2024 with with $GLD seeing a $2.4bn YTD net outflows (quite the contrast to bitcoin!), yet gold remain steady. A break higher in gold will be the most robust data point that markets are starting to see through the debt binge the world has been on. Gold is widely accepted by the institutional investment community and is not impacted by structural adoption impact on bitcoin. The path of least resistance is continued monetary stimulus and liquidity as we use debt to support global growth. #bitcoin #bitcoinetf #debtspiral #moneystimulus #liquidity #moneyprinting https://lnkd.in/e9BnwVMa

As the crypto community awaits the SEC's decisions on Ether ETF applications, the potential for Ether ETFs underscores the maturing of the cryptocurrency market and its increasing integration with conventional financial frameworks. This milestone could pave the way for further recognition and adoption of digital assets across the global financial ecosystem. #Ethereum #ETF #Crypto #Regulatory

Ether ETFs: A New Dawn for Ethereum Investors in 2024? 🚀🌐 2024 stands on the cusp of potentially groundbreaking developments for Ethereum and its investors, with the spotlight firmly on the anticipated approval of Ether (ETH) Exchange-Traded Funds (ETFs). The narrative around Ethereum remains robust, bolstered by its pivotal role in the DeFi and NFT arenas, suggesting a strong case for Ether's inclusion in diversified crypto portfolios despite its previous underperformance compared to Bitcoin. The pathway for spot Ether ETFs appears increasingly promising following the approval of multiple spot Bitcoin ETFs. Analysts posit a 70% likelihood of Ether ETF approvals by May 2024, buoyed by the Securities and Exchange Commission's (SEC) prior nod to Ethereum futures ETFs, indirectly endorsing Ether as a commodity. This tacit acknowledgment aligns with the Commodity Futures Trading Commission's (CFTC) stance and lays a favorable groundwork for Ether's ETF candidacy. However, the journey to approval is marked by regulatory prudence, with the SEC extending its decision timeline for several Ether ETF proposals to May 2024. These delays are interpreted as routine procedural steps rather than indicative of underlying concerns, providing an extended period for public commentary and ensuring that any forthcoming Ether ETFs meet comprehensive regulatory criteria. The eventual approval of Ether ETFs would signify a monumental stride towards the integration of cryptocurrencies within conventional financial frameworks. It promises to elevate Ethereum's status within the financial domain, further cementing cryptocurrencies' legitimacy and value in the global economic landscape. As decision deadlines approach for applications from leading firms, the crypto community watches with bated breath. The potential green light for Ether ETFs by the SEC would not only herald a significant victory for Ethereum but also underscore the maturing relationship between digital assets and traditional financial systems. #Ethereum #EtherETF #CryptoInvesting #SEC #BlockchainTechnology #DigitalFinance

𝗨𝗦 𝗘𝘁𝗵𝗲𝗿𝗲𝘂𝗺 𝗘𝗧𝗙𝘀: A Beacon of Resilience Amid Market Turbulence 📊 Witnessing the second-highest daily inflows, US Ethereum ETFs are carving out a unique narrative in the face of global market volatility. This surge in investment is a resonating testament to the resilience and potential of the Ethereum ecosystem. The high liquidity during downturns signals enduring investor confidence and increasing demand. It also underscores Ethereum ETFs' pivotal role in navigating choppy market conditions, spotlighting their growing acceptance as mainstream investment vehicles. Amid an evolving financial landscape, the spike in Ethereum ETFs serves as a timely reminder of the opportunities and shifts in traditional investment portfolios. Keep a watchful eye on these trends as Ethereum continues to gain traction!

The spot Bitcoin Exchange-traded fund (ETFs) could be good news for investors who want to participate in Bitcoin investment with a fraction of its price just like other ETFs. Unlike most ETFs with a basket of equities in the funds which can lower the risks, spot Bitcoin ETFs only hold Bitcoins. Therefore, it will not diversify the risk and it is still subject to the volatility risk of holding Bitcoin. Some Bitcoin investors are however concerned that Bitcoin may not serve its authentic purpose as a digital currency which operates free of any central control or the oversight of banks or governments. Institutions who create these ETFs may serve as surveillance agents for the governments and central banks. When inflows to these ETFs increase significantly, these institutions will own more Bitcoins and eventually manipulate its prices and usage. Bitcoin is a speculative investment. It has no apparent positive or negative correlation to the stock market. Therefore, it may not serve as a diversifier which can lower the risk in an investment portfolio. At Vibrance Wealth Management, we believe investors who have faith in Bitcoin and see the potential of its future value can have about 3% to 5% in their portfolio as a satellite strategy provided they are aware of the risk and have a high risk appetite.

The spot Bitcoin Exchange-traded fund (ETFs) could be good news for investors who want to participate in Bitcoin investment with a fraction of its price just like other ETFs. Unlike most ETFs with a basket of equities in the funds which can lower the risks, spot Bitcoin ETFs only hold Bitcoins. Therefore, it will not diversify the risk and it is still subject to the volatility risk of holding Bitcoin. Some Bitcoin investors are however concerned that Bitcoin may not serve its authentic purpose as a digital currency which operates free of any central control or the oversight of banks or governments. Institutions who create these ETFs may serve as surveillance agents for the governments and central banks. When inflows to these ETFs increase significantly, these institutions will own more Bitcoins and eventually manipulate its prices and usage. Bitcoin is a speculative investment. It has no apparent positive or negative correlation to the stock market. Therefore, it may not serve as a diversifier which can lower the risk in an investment portfolio. At Vibrance Wealth Management, we believe investors who have faith in Bitcoin and see the potential of its future value can have about 3% to 5% in their portfolio as a satellite strategy provided they are aware of the risk and have a high risk appetite.

Ethereum ETFs are out. So what's next? Eric Johansson checked in with five market watchers to answer that burning question. Nine spot Ethereum ETFs launched on Tuesday to industry-wide celebration. Before their launch, pundits, degens and analysts rolled out the red carpet for the funds, predicting that they’d replicate the success of the 10 spot Bitcoin ETFs that launched in January. If Bitcoin funds could pump the underlying asset to new heights, why wouldn’t the same be true with Ether? Four days later, it seems the first week of spot Ethereum ETF trading has been a mixed bag. While Ethereum ETFs bagged $107 million in total inflows on the first day of trading, Wednesday and Thursday respectively saw $133 million and $153 million in outflows, according to data from SosoValue. And Ether is down 4.6% on the week, according to CoinGecko data. However, things may be about to change. https://lnkd.in/euHXajpQ

Martin Young features Sygnum Bank's Head of Research, Katalin Tischhauser, on the future of Ethereum spot ETFs on Cointelegraph.   Katalin Tischhauser predicts that Ethereum ETFs could hit $5-10 billion in assets under management within their first year. With the potential for significant inflows, the price of ETH might see a strong boost.  “With Ethereum’s market capitalization a third of Bitcoin’s, we expect the relative inflows to be in the 15-35% range versus Bitcoin, with a resulting forecast of $5 to $10 billion in the first year.”   Read more on: https://lnkd.in/e-nVDm7G #Ethereum #ETFs #Investment

An ETF, or Exchange-Traded Fund, is a type of investment fund and an exchange-traded product, meaning it is traded on stock exchanges much like individual stocks. An ETF holds assets such as stocks, commodities, or bonds and generally operates with an arbitrage mechanism designed to keep it trading close to its net asset value, although deviations can occasionally occur. Here are key reasons why institutions like ETFs: Diversification: ETFs often hold a diverse range of assets, reducing risk through diversification. Liquidity: ETFs are traded like stocks, offering high liquidity. This makes it easy for institutions to buy and sell large quantities without impacting the market price too much. Lower Fees: Typically, ETFs have lower fees compared to mutual funds, making them a cost-effective choice for investors. Transparency: ETFs disclose their holdings daily, providing transparency to investors about where their money is invested. Flexibility: They can be bought and sold at current market prices during trading hours, offering flexibility and control over investment timing. Tax Efficiency: ETFs are usually more tax-efficient than mutual funds due to their unique structure and lower turnover rates. Regarding a Bitcoin ETF: A Bitcoin ETF is an ETF that tracks the value of Bitcoin, allowing investors to invest in Bitcoin without going through the hassle of securing and managing a cryptocurrency wallet. Here’s how a Bitcoin ETF can be beneficial: Accessibility: It opens up Bitcoin investment to those who are familiar with traditional investing but are not comfortable with the technical aspects of cryptocurrencies. Regulatory Oversight: Being part of a regulated framework, a Bitcoin ETF offers a safer and more structured investment option for institutional investors. Market Stability: By attracting more institutional investors, a Bitcoin ETF can bring more stability to the Bitcoin market. Mainstream Adoption: It represents a bridge between traditional finance and the world of cryptocurrencies, potentially leading to wider acceptance and understanding of Bitcoin. Risk Management: It allows investors to have exposure to Bitcoin’s price movements without the risk of loss due to hacking, loss of password, or wallet keys. Overall, a Bitcoin ETF could help in the broader adoption of cryptocurrencies by making Bitcoin investment more accessible, safer, and more compliant with existing financial regulations. #etf #bitcoin #education #learning #notfinancialadvice