FirstFT: First spot bitcoin ETFs set to start trading in US

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The first spot bitcoin exchange traded funds could start trading in the US as early as today after the Securities and Exchange Commission approved the move, ending months of anticipation.

The top US securities regulator granted permission yesterday to the sponsors of 11 ETFs, ranging from established players such as Fidelity and Invesco to digitally focused newcomers such as Grayscale and Ark Invest.

ETFs trade on exchanges in a similar way to stocks and enjoy special tax treatment in the US. BlackRock is expected to ring the opening bell at Nasdaq to promote its iShares Bitcoin Trust.

The approval caps a wild 24 hours that saw hackers briefly seize control of the SEC’s account on the social media site X and falsely claim that the applications had already been approved, prompting sharp swings in bitcoin’s price. Here’s more on the watershed moment for crypto.

• ‘An embarrassment’: The fake post on the SEC’s official X account on Tuesday appears to have been the result of exactly the type of hack the regulator has spent years warning companies to prevent.

Here’s what else I’m keeping tabs on today:

• Economic data: The US reports December inflation and unemployment claims data. Figures released today are expected to confirm that annual inflation in Argentina topped 200 per cent last month following a devaluation of the peso by the government of new president Javier Milei (more on Argentina below).

• Monetary policy: Richmond Federal Reserve president Thomas Barkin will speak about this year’s economic outlook before the Virginia Bankers Association. Elsewhere, Cleveland Fed president Loretta Mester is scheduled to make a television appearance. 

• Israel-Hamas war: The International Court of Justice begins hearing a politically explosive case brought by South Africa alleging that Israel is committing genocide against the Palestinians.

• US politics: Hunter Biden is due to appear in a Los Angeles court for an arraignment on tax charges after House Republicans moved to hold the president’s son in contempt of Congress yesterday. Meanwhile, closing arguments will begin in former US president Donald Trump’s civil fraud trial in New York.

Five more top stories

1. Exclusive: US President Joe Biden plans to send a high-level, bipartisan delegation of former top officials to Taipei after Taiwan’s election this Saturday, in a move that could complicate efforts by the US and China to stabilise their strained relationship. The Chinese embassy in Washington said it “firmly opposes the US having any form of official contact” with Taiwan. Here are the people the White House has picked to lead the group.

2. Ron DeSantis and Nikki Haley lashed out at each other even more than they attacked Republican presidential frontrunner Donald Trump as they battled for second place in their party’s primary race. The two rivals clashed most bitterly over foreign policy — most ardently over aid to Ukraine. Here’s more on the Des Moines town hall and Trump’s appearance on Fox.

3. The IMF has agreed to disburse $4.7bn to Argentina despite the country’s failure to meet the terms of its $43bn loan in recent months. Argentina’s hard currency reserves have been virtually wiped out amid its most severe economic crisis in two decades. The government is relying on the IMF’s disbursements to pay the fund back for money lent earlier in the programme. The move offers a crucial lifeline to new libertarian President Javier Milei.

4. Citadel Securities has bid about Rmb2bn ($280mn) for Credit Suisse’s Chinese securities business, as the market maker founded by billionaire Ken Griffin pushes ahead with expansion plans in China, people familiar with the matter said. A Chinese company has made a rival bid, a person with knowledge of the matter said. Here’s more on the bids for the unit put up for sale by UBS after it took control of Credit Suisse last year.

5. US transportation secretary Pete Buttigieg has said no grounded Boeing Max aircraft would return to service until they are safe as the plane maker’s chief executive disclosed that the blowout on a flight operated by Alaska Airlines was the consequence of a “quality escape”. Buttigieg and Boeing chief executive Dave Calhoun spoke yesterday. Here’s more on the conversation.

News in-depth

Who are the Houthis? The Iran-linked “military entrepreneurs” have carried out more than two dozen attacks on merchant ships over the past two months, threatening global trade through the Red Sea. In doing so, they have created a significant challenge to the US and its western allies, which want to protect the region’s shipping lanes but are also wary of the Israel-Hamas conflict triggering a broader regional war.

We’re also reading . . . 

Chart of the day

The junk bond market has become “complacent” over the risks facing corporate America after a sharp drop in debt funding costs, with high interest rates and a possible economic downturn still posing a threat to low-grade, highly indebted borrowers. That shift in sentiment has fuelled concerns among some strategists and investors that market pricing has reached overly optimistic territory.

Take a break from the news

From a Soho House spin-off in Manchester to a floating villa in the Maldives — these are the big hotel openings to look out for in 2024.

Additional contributions from Tee Zhuo and Benjamin Wilhelm