What we’re reading (8/20)
“Money Managers Race To Launch First U.S. Bitcoin ETF After SEC Signal” (Wall Street Journal). “Asset managers are jockeying to create the first U.S. bitcoin exchange-traded fund after a top securities regulator signaled a path to approval. In the past two weeks, ProShares, Invesco Ltd. , VanEck, Valkyrie Digital Assets and Galaxy Digital have all filed plans for bitcoin futures ETFs. If approved, the funds would make trading bets on bitcoin’s future value akin to buying a stock. Earlier in August, Securities and Exchange Commission Chairman Gary Gensler indicated that he would be receptive to ETFs that will trade in bitcoin futures rather than cryptocurrency itself as long as they follow stricter rules usually reserved for mutual funds. The SEC has already approved the first U.S. bitcoin-futures-based mutual fund, which started trading last month.”
“Second-Largest U.S. Mortgage Lender Will Accept Payment In Bitcoin” (CNBC). “Starting later this year, U.S. homebuyers will have the option to pay for their mortgage in bitcoin. United Wholesale Mortgage, which made its public debut in January via a special purpose acquisition (SPAC) merger, announced plans this week to accept cryptocurrency for home loans, in what is being billed as a first for the national mortgage industry.”
“The Next Taper Is A Big Deal For Very Different Reasons” (Real Clear Markets). “Jay Powell’s current Fed is likely to announce tapering its current QE, once again based solely upon recent payroll figures and a quickly falling unemployment rate. With those, he is preparing the public for the stepping down the pace of its purchases. This Chairman doesn’t want Bernanke’s [2013] [taper] tantrum.”
“Fed Fear Is Back. Investors Are Getting Antsy” (CNN Business). “Wall Street is fighting its Federal Reserve hangover and the Dow booked its third straight day of losses after the central bank suggested Wednesday it could ease off the stimulus gas as early as year-end. So the investor angst continues, sending CNN's Fear & Greed index back into ‘extreme fear’ from ‘neutral’ just two days ago…[n]ext week's central bank symposium at Jackson Hole will be watched closely for any more signals for the eventual and inevitable taper. The central bank has three meetings left in 2021, and analysts at Bank of America think the November meetings are when the Fed is most likely to clamp down on the amount of monthly purchases.”
“Big Tech And The Taliban” (DealBook). “Social media platforms were caught as much by surprise by the Taliban’s takeover of Afghanistan as Western leaders were. Accounts and content linked to the group are rapidly multiplying, as governments around the world decide whether to officially recognize the Taliban as Afghanistan’s rulers. U.S. tech giants like Facebook, Twitter and YouTube, which have largely designated the Taliban a terrorist organization, have been put in a tricky position as the Taliban try to establish their authority and legitimize their rule online.”
