SEC Sets December 29 Deadline for Updates on Spot Bitcoin ETF Filings; Searches for ‘AI’ on Google Outpace ‘Bitcoin’ and ‘Crypto’ in 2023; Bitcoin Hash Rate Hits Record High on Christmas, but Miner Profitability Declines
Spot Bitcoin ETF Fillings
Applicants seeking approval for a spot Bitcoin exchange-traded fund (ETF) are facing a crucial deadline to finalize their filings by December 29, according to the United States Securities and Exchange Commission (SEC).
As reported by Reuters, the SEC has mandated that spot Bitcoin ETF applicants submit their final S-1 amendments by the looming deadline. Insights from public memos and sources familiar with the discussions were cited in the report.
In a meeting held on December 21, SEC officials engaged with representatives from at least seven firms aspiring to launch spot Bitcoin ETFs in the early months of 2024. Notable participants in these meetings included representatives from industry giants such as BlackRock, Grayscale Investments, ARK Invest, and 21 Shares. The discussions also involved representatives from potential listing exchanges, including Nasdaq and the Chicago Board Options Exchange, along with legal professionals and issuers.
Earlier reports highlighted a rush among spot Bitcoin ETF filers to update their S-1 filings, focusing on adopting the cash redemption model instead of in-kind redemptions, which involve non-monetary payments like Bitcoin.
Beyond the cash-only requirement, the SEC is reportedly urging Bitcoin ETF filers to disclose the authorized participants (AP) in their filings. According to Bloomberg ETF analyst Eric Balchunas, the AP agreement represents the final hurdle on the path to spot Bitcoin ETF approval.
Despite the last-minute updates by multiple firms for their spot Bitcoin ETF filings, Bloomberg analysts maintain confidence that the SEC will approve the first spot Bitcoin ETFs by January 10.
Searches for ‘AI’ on Google Outpace ‘Bitcoin’ and ‘Crypto’ in 2023
Google Trends data reveals a notable shift in user interests, with searches for “AI” surpassing those for “Bitcoin” and “crypto” in 2023. This marks a departure from the trend observed since 2020, where search interest in “Bitcoin” and occasionally “crypto” outpaced “AI.” The turning point occurred around August 2022, and by November 2022, searches for “AI” gained prominence, coinciding with the launch of OpenAI’s ChatGPT. Currently, worldwide search interest in “AI” holds a Google Trends score of 91, while “Bitcoin” scores 22.
The results align with Bitcoin’s struggle during the latter part of the 2021 bear market cycle and throughout 2022. Despite a gradual recovery in 2023, interest in “AI” surged, fueled by various developments in the field. Noteworthy events included concerns about AI impacting employment, the proliferation of AI-generated content services, and excitement surrounding new chatbots like ChatGPT, Google Bard, Meta AI, and GrokAI—launched by tech mogul Elon Musk.
In July, AI gained prominence in job searches, surpassing “crypto jobs” by four times, following the November 2022 launch of ChatGPT. The data reflects a broader cultural shift towards increased curiosity and engagement with artificial intelligence developments.
Bitcoin Hash Rate Hits Record High on Christmas, but Miner Profitability Declines
On Christmas day, the Bitcoin network’s hash rate, representing computing power for mining, reached an all-time high of 544 exahashes per second (EH/s), as reported by Blockchain.com and confirmed by Bitinfocharts. This marks a more than 130% increase since January, reflecting the network’s robust security. However, despite the hash rate surge, miner profitability faces challenges due to declining hash prices.
Bitcoin’s hash rate has steadily climbed throughout the year, doubling since January. Coinciding with this trend, the asset’s price has mirrored the ascent, rising over 150% since the beginning of 2023. While a higher hash rate is positive for theoretical price models, it poses challenges for miners who must exert more effort to secure blocks.
The hash price, a key profitability metric, has fallen to $0.09 per terahashes per second per day, signaling a 34% decline since its 2023 peak of $0.136/TH/s/day on December 17. This decline is attributed to the cooling of the BRC-20 ordinal inscription craze. Despite the challenges, the high hash rate is a testament to the network’s strength and security.
