Latest news with #Ether
Yahoo
2 hours ago
- Business
- Yahoo
Ethereum investors want treasuries to buy more Ether. BitMine just hinted at the opposite
The little-known Bitcoin miner turned Ethereum treasury known as BitMine is turning the corporate crypto treasury playbook on its head. On Tuesday, the publicly traded Ethereum treasury firm announced a $1 billion repurchase authorisation for a stock buyback plan. At first glance, it looked like a vote of confidence in the company's long-term value. But for Ethereum bulls, it may be a red flag. 'Seems like they're going to use some of their $400 million excess cash to buy their shares instead of ETH,' Ceteris, the pseudonymous head of research at Delphi Digital, said on X. It's a 'pretty bad development,' he said. 'People buying their stock want them to keep plowing their cash into ETH. This halts the momentum.' Mega trend BitMine has become one of the biggest corporate buyers of Ether in 2025. It has amassed over $2 billion worth of Ether in just two weeks, helping fuel a rally in both the cryptocurrency and its own stock price. The approach mirrors the Michael Saylor-style Bitcoin treasury strategy: raise cash, buy crypto, drive shareholder value through appreciation. Only now, it's Ethereum, not Bitcoin, taking center stage. But with BitMine's stock trading at a 35% premium to the value of its Ether holdings, the decision to pursue a buyback suggests a major shift. Instead of accumulating even more Ether, the company might use its cash to buy shares. That's a sharp break from the usual treasury playbook — one that's rattling investors who bought in for exposure to Ethereum, not equity games. A buyback authorisation is board-level approval to buy back shares up to a certain amount, though it doesn't guarantee that will happen. Buyback authorisations give companies the option, but not the obligation, to repurchase shares if management believes they're undervalued. The goal is usually to defend the stock when it trades below the net asset value of its holdings. BitMine Immersion Technologies did not immediately respond to DL News' request for comment. The treasury arbitrage model The calculation behind crypto treasury schemes is simple. If a company's stock trades above the value of its crypto holdings — known as its net asset value or NAV — it can issue new shares to buy more crypto, effectively growing its per-share holdings. But if it trades below NAV, the company might instead buy back stock to shrink the float and boost per-share value. BitMine isn't trading below NAV, however. In fact, it's trading at a significant premium, in line with Bitcoin giant MicroStrategy and ahead of Ethereum peer SharpLink Gaming. Why even float a buyback now? 'Usual flow here is: mNAV premium = sell shares, accumulate treasury asset. mNAV discount = sell treasury asset, buy shares,' said Ceteris on X. 'BMNR is trading at a premium, so...?' Buyer beware This may be more of a precautionary filing than a real-time strategy shift. 'This does not mean: 'We plan to buy back $1 billion worth of shares,'' Viktor, the pseudonymous researcher known as thedefivillain, said on X. 'It most likely means: 'We now theoretically have the RIGHT to buy back up to $1 billion worth of shares. But this is something we will do only if we trade at a large discount to NAV — which is not our goal, ideally.'' So far, BitMine hasn't said when or how it would execute a buyback. But the message is out there — and it's a marked shift from the aggressive accumulation strategy that cryptocurrency investors have come to expect from corporate treasury companies. Pedro Solimano is DL News' Buenos Aires-based markets correspondent. Got at a tip? Email him at psolimano@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Mint
7 hours ago
- Business
- Mint
A Quiet SEC Rule Shift Moves Crypto ETFs Closer to Mainstream
(Bloomberg) -- The US Securities and Exchange Commission is fast helping to transform digital assets into a mainstream fixture of US markets. This week, the regulator cleared two key changes: one that streamlines how crypto funds trade, and another that broadens how investors can bet on them. Taken together, the moves signal something larger — an agency that once kept crypto at arm's length is now laying the plumbing to usher it deeper into Wall Street. The SEC on Tuesday authorized the use of in-kind creation and redemption mechanisms for crypto ETPs — a significant shift from the cash-only model that had been required until now. It also approved a tenfold increase in the position limits for options on BlackRock Inc.'s iShares Bitcoin Trust — a move seen as key to accommodating growing institutional demand and deepening liquidity in the crypto options market. While cash versus in-kind redemptions is an arcane subject, it's become a hot topic in the crypto community, especially given the Gary Gensler-led SEC's reluctance to allow broker-dealers to handle crypto. An in-kind redemption is a common mechanism for traditional ETPs like those holding stocks or bonds that allows an authorized participant — typically an institutional investor or market maker — to exchange a large block of ETP shares directly with the issuer for a basket of the underlying assets held by the fund. While this mechanism is relatively straightforward in traditional asset classes, it's far more complex in crypto products due to challenges around custody, security and settlement. 'The biggest takeaway is symbolic. It means there is a new sheriff in town,' said Eric Balchunas, senior ETF analyst at Bloomberg Intelligence. 'Gensler's SEC did not want this to happen. This is the first of what will be several steps toward a more pro-crypto SEC.' Since the debut of dozens of funds tracking Bitcoin and Ether, crypto ETPs have been restricted to cash-only creations and redemptions, somewhat limiting their operational efficiency and tax advantages. 'In approving this longstanding request, the SEC Staff is demonstrating a productive, thoughtful stance on crypto in America going forward,' said Hunter Horsley, chief executive officer of Bitwise Asset Management, which offers its own spot Bitcoin and Ether funds. 'It's great news.' All in, it's a technical tweak but it marks another step toward digital assets fitting into the financial mainstream. It won't impact things for end-investors anytime soon, but for ETF professionals the regulatory blessing removes a sign of crypto's second-class status. 'Having in-kind creation/redemption issue will simply give the ETPs better plumbing,' Balchunas said. But 'it won't make a meaningful difference to end-investors.' The SEC said it will approve on a 'merit-neutral approach' other crypto-based products, including applications that seek to hold mixed products like Bitcoin and Ether. The regulator also gave the green light to a Nasdaq proposal to increase a position limit for options on BlackRock's IBIT to 250,000 contracts, up from 25,000. Even under the more onerous cap, open interest in IBIT-linked options has more than tripled this year to around $34 billion, a scale that signals the fund's emergence as a core engine of crypto risk pricing. Daily volumes have averaged $4 billion in recent trading, surpassing heavyweight funds in credit and emerging markets. Only the most liquid ETFs tied to US equities, gold and small caps trade more actively. 'This will help bring in bigger institutions and be helpful during volatility,' Balchunas said in a social media post. --With assistance from Nicola M White. (Update with details of IBIT options limit increase) More stories like this are available on
Crypto Insight
13 hours ago
- Business
- Crypto Insight
Cathie Wood's ARK partners with SOL Strategies for staking services
Cathie Wood's ARK Invest has named Canada-based SOL Strategies as its exclusive staking partner for the company's Digital Assets Revolutions Fund. Under the partnership, ARK Invest will move its validator operations to the SOL Strategies staking infrastructure. Created in 2020, the Fund typically invests in 10 to 12 cryptocurrencies aiming to generate returns over a full market cycle of four to five years. 'We serve a growing number of institutional and enterprise clients seeking compliant, reliable access to Solana through delegated staking and custom validator infrastructure,' SOL Strategies CEO Leah Wald told Cointelegraph. BitGo, an institutional custody platform that partnered with SOL Strategies in April, will also be involved. Staking is the process of locking up cryptocurrencies to help secure a blockchain network and earn rewards. Solana epochs last about two to three days, after which Solana stakers receive a certain amount of the native coin. 'We currently operate five validators with over 3.59 million SOL (CAD $888 million) ($647.2 million) in assets under delegation and more than 5,700 unique wallets staked, with just 12% coming from our own treasury, the rest from third parties,' Wald said. However, staking has risks. If a validator were to misbehave, its staked tokens could be slashed, resulting in losses for investors. According to Solana Compass, roughly 403 million SOL tokens are being staked at this writing for a total of $73.5 billion. SOL Strategies posted a loss of $3.5 million for the second quarter of 2025, although its staking and validating revenue grew significantly. Other companies like DeFi Development Corp. and Upexi have also pivoted to Solana treasuries as the asset has gained more traction among traditional investors. Increased interest in staking from institutional investors ARK Invest's move indicates increased interest from institutional investors, who may want to earn yield on crypto assets along with the potential appreciation in price. Asset managers are also seeking to get exposure to Ether staking. Over the past few months, several issuers of Ether exchange-traded funds (ETFs) have submitted formal requests with the SEC seeking approval for income-generating features. 'We're seeing a clear surge in institutional interest in Solana exposure, not just to the asset, but to structured, investable vehicles that provide access with regulatory clarity,' Wald said. As the U.S. regulatory landscape becomes more defined, family offices, hedge funds, and asset managers are actively seeking products like ETFs, structured notes, and public equities (DATs and Solana technology firms like ours) that offer clean Solana exposure. ARK Invest is well-known in crypto circles, making a plethora of investments with significant amounts of capital. Recently, it scooped up shares in Circle's initial public offering before selling the first batch of shares for $52 million on June 17. It is an active participant in Bitcoin ETFs and has invested in crypto companies' stocks in the past. Source:
Yahoo
20 hours ago
- Business
- Yahoo
Why the SEC Keeps Putting Off Diversified Crypto ETFs
Another diversified crypto ETF has been moved to the back burner. Bitwise's application seeking the SEC's signoff to convert its crypto index fund to an ETF, which would offer investors exposure to a broader portfolio of digital assets including XRP and Polkadot, was delayed on Tuesday after being approved by the regulatory body's trading and markets division earlier that day. Other similar filings from Grayscale and 21Shares to launch diversified crypto ETFs have also been put on hold, the latest signs of hesitation from an agency operating in what is arguably the most crypto-friendly political environment to date. Invest in Gold Thor Metals Group: Best Overall Gold IRA Priority Gold: Up to $15k in Free Silver + Zero Account Fees on Qualifying Purchase American Hartford Gold: #1 Precious Metals Dealer in the Nation While the demurring showed the degree of scrutiny regulators are applying to new crypto products, it nonetheless raised some eyebrows. 'It honestly is really confusing. I don't think there's a clear reason why they've approved and then placed [Bitwise's application] on hold,' said Roxanna Islam, head of sector and industry research at VettaFi. 'It's not really a common occurrence to do that.' READ ALSO: What Coca-Cola's New Sugar-Cane Coke Means for a Sugar ETF and Faith-Based Firm Led by Bob Doll Adds First ETFs Holding Pattern The issue is less about the structure of the funds themselves than about internal regulatory disarray at the SEC, Islam said. 'There's still not a clear regulatory framework, especially for these newer types of products,' she added. 'They are trying to get some things sorted out internally before these are officially launched.' If the SEC approves both products simultaneously, it could blunt Grayscale's first-mover advantage. The two managers' crypto index ETF filings are: Bitwise's 10 Crypto Index Fund (BITW), which would hold 90% of its assets in Bitcoin and Ether, with the rest spread across other digital assets like Solana, XRP and Polkadot and rebalanced monthly. Grayscale's Digital Large Cap Fund (GDLC), which would place 80% of its assets into Bitcoin, with the rest devoted to Ether, XRP, Solana and Cardano. There are some ETFs on the market that hold Bitcoin and Ether — the Franklin Crypto Index ETF (EZPZ) and the Hashdex Nasdaq Crypto Index US ETF (NCIQ), for example — but nothing so far that holds anything else. Once pending proposals are approved, however, these issuers could launch their own multi-token indexes or add to current offerings. It's Not You, It's the SEC. Procedural rules may also be slowing things down, Islam said. 'Right now, the filing process is a little bit complex' since the agency recently updated its guidance on disclosures. 'Maybe in the future, that would be simplified.' This post first appeared on The Daily Upside. To receive exclusive news and analysis of the rapidly evolving ETF landscape, built for advisors and capital allocators, subscribe to our free ETF Upside newsletter.
Yahoo
21 hours ago
- Business
- Yahoo
How public companies could end up holding 10% of all Ethereum
Public companies buying up swaths of Ether won't be stopping anytime soon, according to Standard Chartered. The 11 different firms that hold millions of the cryptocurrency on their balance sheet already hold roughly 1% of all coins in circulation, the UK bank said in a Tuesday note to investors. But Geoffrey Kendrick, Standard Chartered's head of digital assets, predicts that just as these companies will keep buying Ether, even more companies will join the trend. And that means even more buying. 'They may eventually end up owning 10% of all ETH, a 10x increase from current holdings,' Kendrick wrote on Tuesday. A laggard for much of this year's rally, Ethereum is finally showing signs of life over the past few weeks. Since public companies started buying the coin in earnest in June, Ether has rallied some 51%, according to CoinGecko. Over that same period, Bitcoin has risen some 13% and Solana rose 17%. Besides treasury companies, Ethereum has had other tailwinds. Other analysts are touting the passage of landmark stablecoin legislation in the US as another driver behind the uptick in Ether. That's because more than 50% of all stablecoins and tokenised financial assets are minted on the Ethereum network. Elsewhere in the market, spot Ethereum exchange-traded funds are also attracting Wall Street investors more than ever. Of the $1.9 billion in investor money buying various spot crypto ETFs, Ether funds accounted for more than 84% of that figure last week. The treasury company play offers investors other advantages not realised by the Ether funds either, writes Kendrick. US Ether funds aren't yet allowed to stake the underlying coins, or put them to work securing the blockchain via its proof-of-stake consensus mechanism. Treasury companies can, however, do this and rake in roughly 3% yield for doing so. SharpLink, the online gaming company turned Ether treasury firm co-chaired by Joe Lubin, has already staked 99.7% of its $425 million stake. Lubin told DL News in June that there's a whole lot more planned in the future, too. All of this combined, writes Kendrick, may push Ethereum above $4,000 this year. Crypto market movers Bitcoin has dropped 0.6% in value over the past 24 hours and is trading at $117,436. Ethereum also shed 1.3% in the same period to $3,754. What we're reading Monero miners lampoon Qubic's thwarted 51% attack as publicity stunt — DL News 21 market catalysts to watch this week— Milk Road Binance Earn to Let Users Buy Crypto Below Market Price — Unchained Crypto lender Abra pauses withdrawals as dozens of customers fear their funds are gone — DL News Liam Kelly is a Berlin-based reporter for DL News. Got a tip? Email him at liam@
