Pre-market stocks: it could make bitcoin bigger than ever

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What’s happening: The bitcoin hype is building up again, with a financial tool that could increase public exposure to digital currency set to debut this week.

Drive the gains: Investors are excited about the planned launch of the first bitcoin futures exchange-traded fund. The ETF ProShares Bitcoin Strategy could be launched in the coming days, according to a filing with the Securities and Exchange Commission.

The fund would provide an entry point for investors interested in cryptocurrencies but unwilling to buy and sell tokens themselves.

The SEC signaled last week that it could finally approve such an instrument, which the crypto industry has long been pushing for.

“Before investing in a fund that holds bitcoin futures, be sure to weigh the potential risks and rewards,” the agency tweeted.

If it were to go ahead, the ETF could boost the recent bitcoin rally.

“We see the approval of a Bitcoin futures ETF as a positive step for the digital asset space,” Isaac Boltansky, director of policy research at BTIG, said in a recent note to clients.

This does not mean that regulators are completely abandoning their distrust of cryptocurrencies. Boltansky noted that a futures ETF is different from an ETF that directly buys and sells bitcoin. On this front, the SEC seems to remain skeptical.

And the rollout of stricter global rules continues to emerge. Oversight bodies are under increased pressure to act as the investment pool expands.

In a recent speech, Bank of England official Jon Cunliffe noted that the $ 1.2 trillion market crash in subprime mortgage-backed securities triggered the 2008 financial crisis. Crypto assets, meanwhile, reached $ 2.3 trillion.

“$ 2.3 trillion must of course be viewed in the context of the $ 250 trillion global financial system,” Cunliffe said. “But as the financial crisis has shown us, you don’t have to represent a large part of the financial sector to trigger financial stability problems.”

Some industry players see the writing on the wall. Coinbase released a proposal to regulate digital assets last Thursday. The company, which went public earlier this year, has requested a U.S. body designated to monitor crypto assets.

“When new questions or policy challenges arise, the ability of a single, dedicated regulator to respond in an efficient and timely manner benefits everyone,” Coinbase said in a research paper.

Goldman Sachs Takes Full Control of China’s Securities Firm

Goldman Sachs has been given permission to take full ownership of its China securities joint venture, a sign Beijing remains open to foreign financial firms even as geopolitical tensions simmer.

Latest: Goldman announced on Sunday that the entity, previously named Goldman Sachs Gao Hua Securities Company, will be renamed Goldman Sachs Securities Company. The unit provides investment banking and securities services to clients in Mainland China.

“This marks the start of a new chapter for our business in China after a successful 17-year joint venture,” CEO David Solomon said in a letter to employees.

Remember: Wall Street has long sought better access to mainland China, a market where bankers see enormous potential. The process was difficult, however, with the country moving extremely slowly to open its doors to financiers without local partners.

US companies see China as a long-term gamble that they say will pay off despite lingering political tensions and slowing growth.

The country’s economy grew only 4.9% in the third quarter, official data showed on Monday. This is the weakest rate of expansion in a year as the country faces a major energy crisis and supply chain disruptions.

There are also concerns about the indebtedness of the Chinese real estate sector, which represents up to 30% of GDP.

“The challenges of keeping the economy running smoothly have increased,” said Fu Linghui, spokesperson for the National Bureau of Statistics.

Work flexes its muscles as workers gain influence

All over the United States, workers are saying enough is enough is enough – and many are going on strike or quitting their jobs as a result.

For the first time in decades, employees, rather than employers, have the power to exercise in the shifting labor market in the wake of Covid-19, reports my CNN Business colleague Chris Isidore. This empowers the unions, which have been much weaker in the 21st century than in the past.
TO John deere (OF), 10,000 workers went on strike last Thursday after rejecting a tentative deal that would have improved wages and benefits, calling for “a better slice of the pie, a safer workplace and adequate benefits.” They joined 1,400 strikers at Kellogg (K) upset by seven-day work weeks and a two-tier retirement system. American Airlines pilots will hold protests at Miami Airport on Tuesday.

Take a step back: Companies are struggling to find the workers they need to fill record numbers of job openings. There have also been a record number of workers leaving their jobs.

This gives employees greater bargaining power, which many are determined to use.

“My nurses and healthcare professionals are angry,” said Elizabeth Hawkins, negotiator for a 32,000 nurses union that may soon go on strike at hospitals and clinics in Southern California and Hawaii led by health giant Kaiser Permanente.

History Lesson: Robert Reich, a former US Secretary of Labor, said workers also made big gains after the turmoil of WWI and WWII.

“Maybe it took a pandemic to open people’s eyes,” he said. “A lot of people are exhausted. Many workers say, “I got it! “”

Following

State Street and Albertsons publish their results before the US markets open.

Also today :

  • U.S. industrial production data for September arrives at 9:15 a.m.ET.
  • The NAHB Housing Market Index for October follows at 10 a.m. ET.
  • Apple is set to unveil two high-end MacBook Pro laptops at 1 p.m. ET.
Coming tomorrow: earnings of Johnson & johnson (JNJ), Procter & Gamble, United Airlines (UAL) and Netflix (NFLX).


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