Bitcoin or Bust
“Bitcoin will hit $1m price point: buy now or risk missing out”
“SEC approval of Bitcoin ETF to have dramatic impact on the spot price”
” Bitcoin ETFs could be a significant driver of adoption”
These are the types of headlines we have all become accustomed to seeing over the last 12 months.
But how much is sensationalism vs reality?
SEC approval of a Bitcoin is likely to have a positive impact for sure, but is it really going to cause the underlying price to skyrocket? For those who forget, Bitcoin ETFs already exist in a number of countries so a Bitcoin ETF is not exactly new.
Did the spot price skyrocket when those ETFs launched? NOPE
So why is this time going to be so much bigger? Sure, the US is a significant market but still, it there a truck load of cash sitting on the side-lines ready for the SEC to pull the trigger come Jan?
We guess time will tell.
Fund Launches and Updates
DWS has slashed fees on 31 ETFs as it continues its bid to leapfrog its closest rival Amundi as Europe’s second-largest issuer. The cuts will be felt across a combined €10bn of assets under management. link
German digital bank N26 and investment fintech Upvest will partner to offer ETF and stock trading for its customers. Users will be able to access ETFs and stocks directly through the N26 banking app once the service launches in H1 2024. link
BNP Paribas Asset Management has agreed a distribution deal with Italian trading platform Directa SIM to boost local sales of a range of ETFs. The deal will enable clients of Directa’s online platform to access 13 ETFs managed by the fund arm of BNP Paribas and listed on Borsa Italiana, without paying trading fees on buy orders of €1,500 or more. link
AXA IM has launched a new equity ETF on Xetra, offering investors access to the US stock market while adhering to the Paris Climate Agreement. The AXA IM MSCI USA Equity PAB UCITS ETF tracks the performance of the MSCI USA Climate Paris Aligned Index and invests in 270 large and mid-cap companies listed on the US stock market. link
Roundhill Investments announced the closure of its MEME ETF tracking the performance of meme stocks nearly two years after its launch, putting another nail in the coffin of the popular pandemic-era trade.
The Roundhill MEME ETF, with net assets of just $2.7 million, consists of companies that exhibit a combination of elevated social media activity and high short interest. link
Harbor Capital Advisors has added a long-short equity ETF to its range of funds. The Harbor Long-Short Equity ETF (LSEQ) offers investors equity exposure with an elevated focus on downside mitigation and diversification benefits. LSEQ, is listed on the NYSE Arca. link
Goldman Sachs Asset Management has listed two new equity ETFs on the New York Stock Exchange.
The Goldman Sachs MarketBeta Russell 1000 Growth Equity ETF (NYSE Arca: GGUS) targets large- and midcap U.S. growth stocks. The Goldman Sachs MarketBeta Russell 1000 Value Equity ETF (NYSE Arca: GVUS), meanwhile, targets large- and midcap U.S. value stocks. Both ETFs charge 12 basis points. link
Macquarie Asset Management has launched a suite of actively managed ETFs on the New York Stock Exchange. The funds target global infrastructure, energy transition, and municipal bonds.
The Macquarie Global Listed Infrastructure ETF (NYSE Arca: BILD)
The Macquarie Energy Transition ETF (NYSE Arca: PWER)
The Macquarie Tax-Free USA Short Term ETF (NYSE Arca: STAX). link
Counterpoint Funds announced the launch of the Counterpoint Quantitative Equity ETF (CPAI).
The ETF seeks long-term capital appreciation by investing in individual stocks that have exposure to multiple factors. CPAI uses AI “to dynamically adjust factor exposure depending on changes in market conditions.” link
CSOP Asset Management launched Asia-Pacific’s first ETF tracking the performance of Saudi Arabian equities on the Hong Kong stock exchange. link
CSOP Asset Management and PineBridge Investments’ China joint venture have launched the first two ETFs on a new link that connects Singapore and Shanghai stock exchanges.
The CSOP Huatai-PineBridge SSE Dividend Index ETF was listed on the Singapore Exchange on Friday and offers investors in the city-state access to large-cap and high-dividend opportunities from China’s A-share market. link
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Bitcoin (BTC) exchange-traded products (ETPs) registered $312 million in inflows for the week of Nov. 24, bringing year-to-date inflows to around $1.5 billion, according to CoinShares.
The weekly inflows for all cryptocurrencies totalled $346 million, continuing a nine-week trend of positive net flows. link
Spot Bitcoin ETFs in the United States now have a “clear runway” to potential simultaneous approvals after an advanced decision to delay the bids of Franklin Templeton and Hashdex ETFs, according to analysts.
Bloomberg ETF analyst James Seyffart said the SEC delayed its decision on the applications 34 days earlier than the Jan. 1, 2024, decision deadline.
Seyffart and his colleague Eric Balchunas had placed 90% odds on spot Bitcoin ETF approvals by Jan. 10, 2024, and the twin delays “all but confirms for me that this was likely a move to line every applicant up for potential approval by the Jan 10, 2024 deadline,” Seyffart said. link
BlackRock is working with UK banks and intermediaries to promote an “investment revolution” similar to that under way in Germany, where ETF savings plans have proliferated. BlackRock says its strategy is to provide its “entire platform as a service” to its clients.
The firm predicts “deeper collaboration” between asset managers and UK financial intermediaries, particularly in the fast-growing digital investment space. link
Movers and Shakers
Anna Paglia has joined State Street Global Advisors New Executive Vice President and Chief Business Officer.
Alex Gladkow has been promoted to CEO at liquidity provider GHCO.
MSCI has hired Jana Haines as head of index and a member of its executive committee from ARK Invest.
Nathan Henry has joined the UK Sales team at BlackRock.
Kohei Sasaki has joined Amundi in Japan as Head of ETF, Indexing & Smart Beta Sales.
Carmen Cheung has joined Hang Seng Investment Management in HK as head of Product.
Kevin Gustafson has joined global law firm K&L Gates as a partner in the Asset Management and Investment Funds (AMIF) practice area in Chicago.
Grayscale has hired John Hoffman as managing director and head of distribution and strategic partnership.
From behind the Desk
Is it just us or has ghosting become common practice nowadays?
It seems that whenever you email someone now, you can assume they will not respond unless you send two or three follow-ups. AND, if they don’t like what you said or have to deliver bad news, well then, it’s just much better to not respond at all and completely ignore the person.
We once remember sitting in a town hall listening to Jamie Dimon at JP Morgan, where he said he makes it a point to answer every single email, every day. We remember thinking, well if Jamie can do it then so can we, and we continue to stick as best as possible to that practice.
We don’t buy the argument that “oh I’m so busy, sorry”. We think it’s a nasty habit that people have fallen into.
We guess not everyone can be Jamie Dimon.