Cathie Wood’s ARK invests in ProShares Bitcoin Strategy ETF after exiting GBTC: CNBC Crypto World

CNBC Crypto World features the latest news and daily trading updates from the digital currency markets and provides viewers with a look at what’s ahead with high-profile interviews, explainers, and unique stories from the ever-changing crypto industry. On today’s show, legal experts weigh in on what region is winning the race when it comes to crypto regulation.

Chapters:
00:00 – CNBC Crypto World, Dec 28, 2023
0:20 – Bitcoin climbs
1:05 – The headlines
3:54- Global crypto regulation

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Cathie Wood’s ARK invests in ProShares Bitcoin Strategy ETF after exiting GBTC: CNBC Crypto World

Kathy Woods Arc invest in a Bitcoin Futures ETF after dumping grayscale Holdings and we speak with legal experts about what region is winning the race when it comes to crypto regulation welcome to cnbc’s crypto world I’m TAA mckel Bitcoin is in the red this morning as of noon Eastern the

Cryptocurrency fell one and a half% trading around $42,500 according to coin metrics ether traded flat after jumping 6% yesterday as investors moved into the cryptocurrency ahead of key catalysts expected next month those include ethereum’s next big Tech upgrade and a potential decision on the applications for spot Bitcoin ETFs in the US

Meanwhile we’re also watching binance’s BNB token coming back to life after struggling along these last few months today climbing more than 7% as of noon Eastern and hitting its highest level since April it’s unclear exactly what’s driving the action but dap radar shows a 12% Surge and decentralized app volume

On the binance smart chain okay let’s talk about the top stories Kathy Woods Arc invest bought more than four million shares of pro shares Bitcoin strategy ETF known by its ticker BTO which tracks the price of Futures tied to bitcoin that’s according to a trading note late yesterday which also showed that Ark

Sold shares of coinbase worth more than $27 million based on the crypto company’s last closing price coinbase shares have rallied more than 400% so far this year Arc also done to the remainder of its grayscale Bitcoin trust Holdings sources close to the matter told us that the decision to exit gbtc

Was driven by a combination of regulatory and tax uncertainties and the availability of other products which would maintain the investment management firm’s exposure to bitcoin at a lower cost without the risks gbtc presents speaking with Bloomberg this morning wood said that Bido is already approved and there’s no regulatory uncertainty

Tied to it so Arc decided to maintain its exposure through the ETF for the time being she also apped to the tax and Regulatory uncertainties on Tuesday I spoke with Cathy wood and asked her what was behind the recent moves to offload millions of dollars worth of gbtc and

Coinbase shares here’s what she had to say this is uh portfolio management essentially so we’ve had um both appreciate quite dramatically this year this has been the best performing asset by far uh this year and we always do take profits uh it’s just simple portfolio Management on top of uh the

Actual price appreci appreciation of Bitcoin we’ve had uh the discount closing relative to nav for gbtc so that’s been you know a double impact in terms of appreciation so uh it’s uh just uh traditional portfolio management change in Holdings comes ahead of next month’s expected decision by the SEC on

Spot Bitcoin ETFs both grayscale and Arc 21 shares have applications filed with the agency the first deadline to approach is that of Arc 21 shares the SEC must approve or reject that application by January 10th wood told Bloomberg today that Arc believes the probability of an approval has gone up

Because the SEC has been quote highly engaged compared to what was happening before all right turning to crypto regulation for our main story this year there have been some remarkable advancements for crypto regulation around the world in fact in April lawmakers in the European Union approved the world’s first comprehensive

Framework for digital asset regulation the ‘s markets in crypto assets regulation better known as MAA is due to take effect next year other jurisdictions including Singapore the UAE and the UK also experienced regulatory developments recently so what region is winning the race when it comes to crypto regulation crypto world’s

Talia Kaplan sat down with industry experts for their take I think if we look at what it’s in front of us the EU seems to be winning the race they’ve taken a comp comprehensive approach it’s very collaborative and it appeals to the industry but what MAA is also doing is

They’re acknowledging what we’re not addressing right now or what they’re not addressing right now and in this industry things move so fast and the technology moves so fast that you need to keep looking ahead and saying okay that’s our next step that’s our next step we need to be looking forward and

Be Innovative in what we’re doing and they’ve started that process and so I think you know it will help with some of the Log Jam down the way whereas you know the US for example is still we’re still trying to figure out what we’re going to call these things and who’s

Going to be in charge and so I think right now they’re leading the race and that’s kind of the model the rest of us should should look to there’s no question that uh that Europe has seized a kind of first mover Advantage what we’re seeing is in the absence of a

Coordinated effort um like the one we had in 20089 and and this may still come it’s just we haven’t seen it yet and in the absence of a truly coordinated effort we see Nations like the European Union moving to adopt a g asset regulation and then we see other nations

Looking for models for what they might do to adopt regulation the United States not only exports dollars it exports law it exports legal Concepts and right now what we’re seeing is uh Europe is winning that race to export legal Concepts and this comes in the form of other countries right looking to MAA

First uh as opposed to the United States do you think there are other regions that are making remarkable advancements from a regulation standpoint in crypto absolutely so uh we have an office in Singapore and we we love what we’re seeing in the APAC region in general um

We think it’s uh it’s been very uh forward-looking and and thoughtful and attracting uh tech and and interpr uh internet entrepreneurs um in in particular uh the Singapore Mas which is the regulator there has been operating sandboxes that have allowed the industry to come in and play with uh Concepts like um uh

Understanding digital identity and how it might work in the in in the digital space right and and things like this that are going to be important ultimately for meeting other policy objectives and if I had to say another region where we’re really uh uh really bullish right now say the Middle East

Actually we’re we’re seeing particularly in places like Dubai and Abu Dhabi a real willingness to engage with the digital asset space Dubai has a dedicated digital asset regulator we think they’re doing terrific work and so uh absolutely there are a number of bright spots globally and um and and we

Focus a lot of time on them I don’t think it is the EU um I think there’s been some interesting information that right after MAA passed there was a lot more VC investment in crypto businesses in the EU but I don’t think we’ve seen that all take off as much as everybody

Has expected I do think that Circle has started um creating a headquarters in France and I think coinbase and others are looking to also find EU type homes as well but I don’t think that everybody is going to pick up and move to the EU I

Am hopeful that the US really takes a lead here to make sure that there is a good framework to continue building out this industry but I actually think that Asia uh which has actually been engaged in crypto asset regulation for longer than people have even talked about Japan

Has had good regulations for centralized crypto asset exchanges for a long time uh may actually win the race long term I do think if anybody really could win the crypto regulatory race it may also be the UK they’ve been very forward thinking and very great at putting together a framework that’s both meant

To support Innovation and also put on regulatory guard rails as well and they have this access to Great markets right the UK markets are really good and so there are a lot of companies both software development companies and more centralized crypto CI players moving to

The UK so I think we should expect a lot of us-based crypto companies to also be expanding overseas and this is a glob Global borderless right technology so of course people should be expanding all all all over the place as well do you think it’s too late for the US to catch

Up to the rest of the world as it pertains to crypto regulation no I really don’t um I see the surprise on your face um this is the US has been the home for Innovation for a very long time and particularly with web 2 people do

See this as an important market and an important place to build out technological activity uh as I I said Asia is also extremely attractive Dubai as well um including with their really great um regulatory framework that they’ve been putting together so there there’s certainly a race right now but I

Don’t think anybody will count the us out particularly with the fact that there are two bills at least that have been out there and have passed out of committee I am concerned and have been concerned for some time that the US is falling behind I frame it in many senses

Uh in two ways right digital assets are a national security issue and know can get into to why I believe that is and I believe digital assets are an American competitiveness issue and I mean competitive uh in terms of taking and uh uh taking market share in the internet

Economy and we are right now the internet economy doesn’t care where you are how big you are what your legacy systems look like it’s it’s a forward-looking uh uh economic uh pie and so um on the on the National Security front um the United States has benefited both in terms of its uh

Treasury auctions um but also in terms of just Global influence uh from being a leader um a thought leader in regulation but also um uh having dollar dominance arguably has been hugely helpful for the United States uh overall I think when we have other countries issuing stable coins that aren’t denominated or backed

By US Dollars we have a serious dollar hemony issue and that’s a national security issue I think there’s economic activity that will be migrating to the internet and I think if we want to have a piece of that pie if we want to be dominant in that space as the United

States we have to be active and and uh catch up to um uh our friends around the world who are already uh looking at this space very closely and embracing it um in a way that I think we’ve been a little bit reluctant to or cautious to

So far the good news is is that it it always takes United States a long time to arrive at the right answer but we always seem to do it so I am very hopeful that we will do it in the coming years okay that’s all for crypto world

Today we’ll be back again tomorrow with a look at the state of web three startups this past year we look forward to seeing you then