Bitcoin monthly digest: February 2024

Hello and welcome back to abitnewworld.com!

With February behind us, we're here once more to bring you the latest edition of our monthly Bitcoin newsletter, your go-to source for staying updated on all things Bitcoin as we venture in the mainstream era of this transformational asset.

• South Korea wants to join the ETF party

Last December, we reported that the United States Securities and Exchange Commission (SEC) granted official approval for the listing of several Bitcoin spot ETFs, allowing a broad range o investors (both institutional and retail) active in the equity markets to gain exposure to Bitcoin through traditional, heavily regulated tools.

As South Korea approaches its 2024 legislative election, both major political parties, the ruling party, and the main opposition, have made significant pledges regarding Bitcoin policies, particularly the approval of a Bitcoin ETF. Scheduled for April 10, 2024, South Korea's legislative election occurs every four years, with the President's tenure remaining unaffected. Despite the ruling party not currently holding the presidency, both parties have surprisingly made similar commitments to support Bitcoin, making the election outcome less crucial from a Bitcoin perspective.

Despite South Korea's stable economy and growing interest in digital assets, its inflation rate and CPI indicate limited adoption of Bitcoin as a store of value or for international remittances. However, the country's tech-savvy population and favorable perception of Bitcoin among youths could position it as a promising hub for the digital asset industry.

The pro-Bitcoin initiatives endorsed by both parties could drive the industry's maturation in South Korea. Overall, South Korea's political landscape reflects a growing global trend of countries embracing pro-Bitcoin legislation following the US approval of a spot ETF. Regardless of political outcomes, Bitcoin's strength suggests a bright future for the digital asset industry worldwide.

• Bitcoin Miners took a US government agency to court, and win!

The Texas Blockchain Council (TBC) and Riot Platforms ($RIOT), a publicly traded Bitcoin mining company in Texas, filed a lawsuit against the U.S. Department of Energy, Secretary Jennifer M. Granholm, and other officials for what they claim is an "illegitimate" demand for information from their members, including Riot.

The lawsuit alleged that the Energy Information Administration (EIA) sought clearance for an urgent collection of proprietary energy data from mining companies without following standard clearance processes, citing concerns about increased electricity demand due to Bitcoin's recent price surge coinciding with a cold snap. The EIA's demand for information by February 23, under threat of penalties, raised concerns about privacy and government overreach, prompting the lawsuit. TBC President Lee Bratcher criticized the EIA's actions as unwarranted government intrusion into private industry operations. The lawsuit, which quickly resulted in favour of TBC/Riot, aimed at preventing immediate harm to companies forced to disclose confidential information without proper process.

• Everyone wants a piece of Bitcoin, now...

Carson Group, a major investment platform managing $30 billion in assets, has recently approved four spot Bitcoin exchange-traded funds (ETFs) for its clients, as reported by Bloomberg. These ETFs include BlackRock’s iShares Bitcoin Trust, Fidelity Wise Origin Bitcoin Fund, Bitwise Bitcoin ETF, and the Franklin Bitcoin ETF.

Grant Engelbart, Carson Group's vice president and investment strategist, outlined the selection criteria, highlighting the significant asset growth and trading volume of BlackRock and Fidelity's ETFs, emphasizing the importance of offering products from two of the largest asset managers in the industry.

For spot Bitcoin ETF issuers, access to platforms catering to financial advisors and retail clients is crucial for tapping into new markets. Carson Group's approval of these Bitcoin ETFs can catalyze fund growth, given the substantial wealth managed by financial advisors. In contrast, $7 trillion investment manager Vanguard has blocked its clients from purchasing SEC-approved ETFs, highlighting Carson Group's progressive stance in the financial advisory space.

We expect, in the years to come, that virtually every player in the investment asset space will be exposed to Bitcoin through ETFs or similar instruments. For example, the Arizona State Senate is considering a proposal to encourage the inclusion of Bitcoin ETFs in two of the state’s retirement portfolios. The resolution is currently being reviewed by the House for a second time after it passed the Senate’s Third Reading in a 16–13 vote on Feb. 22, records show.

That's all for now, folks! If you feel chatty, you can get in touch with us by using the "Contact us!" button at the top of this page, or leave a comment down below with any questions or comments. We look forward to keeping you posted on the latest Bitcoin-related developments in the next issue of the abitnewworld.com Bitcoin monthly digest.