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Bitcoin ETF gets SEC Approval
Bitcoin ETF gets SEC Approval, what does this mean for the crypto space going forward? China’s population has declined for a second year in a row and De Beers cuts some of it’s
diamond prices by as much as 10%.
On Wednesday January 10, 2024, history was finally made, after 10 years of back and forth with the SEC and numerous rejections, companies given the greenlight and when it was time for approval, faults were found. The United States Securities regulators finally approved an exchange traded fund to track Bitcoin. The SEC had approved 11 Bitcoin ETFs application coming from BlackRock, the world’s largest asset management company, Ark Investments who partnered with 21Shares, a crypto ETP issuer, Fidelity, Invesco and VanEck. Other companies that were approved include Grayscale, which has been one of the pioneers for this and also had their Bitcoin Trust which they wanted to convert into an ETF application declined, Bitwise, the largest US crypto fund in America, Hashdex, Valkyrie, BZX, WisdomTree and Franklin Templeton.
This approval is a great milestone and history in the making for the much controversial asset. The approval of the Bitcoin ETF allows for investors, both institutional and retail, to gain exposure into the crypto currency, without actually holding it. This can be used as a gateway or the beginning to a path that would not have been trotted otherwise by many.
A country that was once considered overpopulated, so much so that the government had implemented a policy of 1
birth rate per family for residents as a measure to keep the country from extreme overpopulation has for the second consecutive year seen a slowdown in population growth.
Research suggested that China has been fighting with policies that led to an aging population and women have also decided to not give as much births as in the past.
During 2023 China was overtaken by India as the nation with largest population as declared by the United Nations.
The woes for China will get worse if things continue on this path. Research suggested that as the population continues
aging and birth rate slows, the cost for aged care will increase and not much financial support will be there to fund it as the tax paying bracket will get smaller as time passes. Care for children is expensive within China, and this is one of the reasons why a lot of young people prefer not having children. To add to that, Chinese tradition is very stringent and they focus a lot on honour and family, self-discipline, academic achievement and respect for authority.
South African British company De Beers, a diamond miner and seller company has announced that they will cut the prices of their diamonds in a bid to increase sales. Lab grown diamonds have also contributed to the reduction in demand, as a diamond can be created within a few weeks and the costs for miners, smelters and shapers are all taken out of the equation, making lab grown diamonds around 50% or more cheaper than a naturally grown one. A spike in sales in the Asian market for luxury products, more particularly China where diamond demand was high during the COVID – 19 pandemic has also fallen. Wholesale supply and demand have started seeing some increases while polished diamonds have regained stabilization with decreased inventory. As such the demand for natural diamonds are trending lower and the supply of rough cut diamonds are enough to match the demand, so as to not have a glut on the market, driving prices further down. Polished diamonds have regained stability in its prices though lab grown diamonds have grown significantly in popularity as they are significantly cheaper in prices.
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By Money RoundupBitcoin ETF gets SEC Approval, what does this mean for the crypto space going forward? China’s population has declined for a second year in a row and De Beers cuts some of it’s
diamond prices by as much as 10%.
On Wednesday January 10, 2024, history was finally made, after 10 years of back and forth with the SEC and numerous rejections, companies given the greenlight and when it was time for approval, faults were found. The United States Securities regulators finally approved an exchange traded fund to track Bitcoin. The SEC had approved 11 Bitcoin ETFs application coming from BlackRock, the world’s largest asset management company, Ark Investments who partnered with 21Shares, a crypto ETP issuer, Fidelity, Invesco and VanEck. Other companies that were approved include Grayscale, which has been one of the pioneers for this and also had their Bitcoin Trust which they wanted to convert into an ETF application declined, Bitwise, the largest US crypto fund in America, Hashdex, Valkyrie, BZX, WisdomTree and Franklin Templeton.
This approval is a great milestone and history in the making for the much controversial asset. The approval of the Bitcoin ETF allows for investors, both institutional and retail, to gain exposure into the crypto currency, without actually holding it. This can be used as a gateway or the beginning to a path that would not have been trotted otherwise by many.
A country that was once considered overpopulated, so much so that the government had implemented a policy of 1
birth rate per family for residents as a measure to keep the country from extreme overpopulation has for the second consecutive year seen a slowdown in population growth.
Research suggested that China has been fighting with policies that led to an aging population and women have also decided to not give as much births as in the past.
During 2023 China was overtaken by India as the nation with largest population as declared by the United Nations.
The woes for China will get worse if things continue on this path. Research suggested that as the population continues
aging and birth rate slows, the cost for aged care will increase and not much financial support will be there to fund it as the tax paying bracket will get smaller as time passes. Care for children is expensive within China, and this is one of the reasons why a lot of young people prefer not having children. To add to that, Chinese tradition is very stringent and they focus a lot on honour and family, self-discipline, academic achievement and respect for authority.
South African British company De Beers, a diamond miner and seller company has announced that they will cut the prices of their diamonds in a bid to increase sales. Lab grown diamonds have also contributed to the reduction in demand, as a diamond can be created within a few weeks and the costs for miners, smelters and shapers are all taken out of the equation, making lab grown diamonds around 50% or more cheaper than a naturally grown one. A spike in sales in the Asian market for luxury products, more particularly China where diamond demand was high during the COVID – 19 pandemic has also fallen. Wholesale supply and demand have started seeing some increases while polished diamonds have regained stabilization with decreased inventory. As such the demand for natural diamonds are trending lower and the supply of rough cut diamonds are enough to match the demand, so as to not have a glut on the market, driving prices further down. Polished diamonds have regained stability in its prices though lab grown diamonds have grown significantly in popularity as they are significantly cheaper in prices.