Bitcoin (Currency)

Subterms

    More stories

    • 100 Shares159 Views

      in Elections

      Ether Cryptocurrency ETFs Are Approved by the SEC

      by

      The Securities and Exchange Commission gave its blessing to a fund that tracks the price of the most valuable cryptocurrency after Bitcoin.Federal regulators on Thursday approved an investment product tied to the cryptocurrency Ether, the most valuable digital asset after Bitcoin, in a major boost for the crypto industry.The Securities and Exchange Commission said a group of exchanges could begin listing investment products known as exchange-traded funds, or E.T.F.s, linked to the price of Ether. The products would offer an easier and simpler way for people to invest in crypto, potentially boosting prices and promoting wider adoption of digital currencies.In January, the S.E.C. approved similar products that track the price of Bitcoin, leading to a flurry of new investment that helped propel Bitcoin’s price to a record high.The impact of the Ether approval could take longer to hit the market. Before the exchanges can start offering Ether E.T.F.s, the S.E.C. must also approve a separate set of applications from companies that want to issue them, including from major financial firms like BlackRock and Franklin Templeton. That process could take weeks or months, according to financial experts.An S.E.C. spokeswoman said the agency had no comment beyond a formal order approving the products.The news prompted celebration in the crypto industry. A representative for 21Shares, one of the companies seeking to offer the Ether investment product, called it an “exciting moment for the industry at large.”But industry critics called the approval a dangerous development that would encourage wider investment in a volatile market.“The S.E.C. failed to live up to its mission to protect investors and the markets,” Benjamin Schiffrin of Better Markets, a nonprofit that fights for stricter financial regulations, said in a statement.Offered by mainstream financial services firms, E.T.F.s are essentially baskets of assets — rather than buying the assets directly, customers buy shares in these baskets. The products are easy to trade, from brokerage accounts with companies like Vanguard or Charles Schwab, and are popular with wealth advisers and other financial mangers.In the crypto world, E.T.F.s offer another key advantage: simplicity. Rather than navigating the complexities of an online crypto wallet, a customer could go online and buy shares in a Bitcoin or Ether E.T.F. alongside stocks traded on Wall Street.For years, crypto advocates have seen these products as a promising way to encourage wider use of digital currencies. Before the Bitcoin E.T.F.s were approved, crypto companies battled the S.E.C. in the courts, securing a legal victory in August that forced the agency to allow the products.The Bitcoin E.T.F.s have proved to be enormously popular, attracting billions of dollars in investment.The price of Ether has rebounded over the last few months, after a crypto downturn that started in 2022. Ether currently trades at about $3,800 per coin, more than 20 percent off its high of just under $4,900.That’s a small fraction of the price of Bitcoin, which trades at about $68,000 per coin. More

    • 125 Shares189 Views

      in Elections

      Biden Bans Chinese Bitcoin Mine Near U.S. Nuclear Missile Base

      by

      An investigation identified national security risks posed by a crypto facility in Wyoming. It is near an Air Force base and a data center doing work for the Pentagon.President Biden on Monday ordered a company with Chinese origins to shut down and sell the Wyoming cryptocurrency mine it built a mile from an Air Force base that controls nuclear-armed intercontinental ballistic missiles.The cryptomining facility, which operates high-powered computers in a data center near the F.E. Warren base in Cheyenne, “presents a national security risk to the United States,” the president said in an executive order, because its equipment could be used for surveillance and espionage.The New York Times reported last October that Microsoft, which operates a nearby data center supporting the Pentagon, had flagged the Chinese-connected cryptocurrency mine to the federal Committee on Foreign Investment in the United States, warning that it could enable the Chinese to “pursue full-spectrum intelligence collection operations.” An investigation by the committee identified risks to national security, according to the president’s order.The order did not detail those risks. But Microsoft’s report to the federal committee, obtained last year by The Times, said, “We suggest the possibility that the computing power of an industrial-level cryptomining operation, along with the presence of an unidentified number of Chinese nationals in direct proximity to Microsoft’s Data Center and one of three strategic-missile bases in the U.S., provides significant threat vectors.”Now, the mine must immediately cease operations, and the owners must remove all their equipment within 90 days and sell or transfer the property within 120 days, according to the order, which cites the risks of the facility’s “foreign-sourced” mining equipment. A vast majority of the machinery powering cryptomining operations across the United States is manufactured by Chinese companies.Cryptomining operations are housed in large warehouses or shipping containers packed with specialized computers that typically run around the clock, performing trillions of calculations per second, hunting for a sequence of numbers that will reward them with new cryptocurrency. The most common is Bitcoin, currently worth more than $60,000 apiece. Crypto mines consume an enormous amount of electricity: At full capacity, the one in Cheyenne would draw as much power as 55,000 homes.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

    • 100 Shares109 Views

      in Elections

      Bitcoin Hits Record High, Recovering From 2022 Meltdown

      by

      Bitcoin’s price surged above $68,800, breaking the record the digital currency set in November 2021 when the crypto industry was booming.Bitcoin hit a record high of about $68,800 on Tuesday, capping a remarkable comeback for the volatile cryptocurrency after its value plunged in 2022 amid a market meltdown.Bitcoin’s price has risen more than 300 percent since November 2022, a resurgence that few predicted when the price dropped below $20,000 in 2022. Its previous record was just under $68,790 in November 2021, as crypto markets boomed and amateur investors poured savings into experimental digital coins.“This is just the beginning of this bull market,” said Nathan McCauley, the chief executive of the crypto company Anchorage Digital. “The best is yet to come.”Bitcoin’s recent surge has been driven by investor enthusiasm for a new financial product tied to the digital coin. In January, U.S. regulators authorized a group of crypto companies and traditional finance firms to offer exchange-traded funds, or E.T.F.s, which track Bitcoin’s price. The funds provide a simple way for people to invest in the crypto markets without directly owning the virtual currency.As of last week, investors had poured more than $7 billion into the investment products, propelling Bitcoin’s rapid rise, according to Bloomberg Intelligence.The price of Ether, the second-most-valuable digital currency after Bitcoin, has also risen this year. Its increase has been driven partly by enthusiasm over the prospect that regulators may also approve an E.T.F. tied to Ether.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More