Today in crypto, Block has officially joined the S&P 500, expanding the benchmark index’s exposure to Bitcoin. Meanwhile, Goldman Sachs and BNY Mellon announced plans to offer institutional access to tokenized money market funds and the US Securities and Exchange Commission (SEC) has paused Bitwise’s attempt to convert its fund into a spot Bitcoin ETF.
Block joins S&P 500, bringing more Bitcoin exposure to equity index
Jack Dorsey’s technology company Block joined the Standard & Poor’s 500 (S&P 500) index on Wednesday, marking the third public company with Bitcoin holdings to join the global benchmark.
Block holds 8,584 Bitcoin (BTC) worth approximately $1 billion, according to BitcoinTreasuries.NET. That stash makes Block the 13th-largest corporate holder of BTC.
The company’s shares on the NYSE exchange have jumped nearly 14% over the past five days since the company announced it would join the S&P 500.
The S&P 500 tracks 500 of the largest publicly listed US companies. Among the other index companies exposed to BTC are Tesla and Coinbase.
To be listed in the S&P 500, a company must have a market cap greater than $18 billion, a public float (a portion of the company’s outstanding shares that are available for trading) greater than 10%, and the most recent quarter’s earnings must be positive.
Goldman Sachs, BNY to offer tokenized money market funds for clients
Wall Street giants Goldman Sachs and BNY are preparing to offer institutional investors access to tokenized money market funds, which could unlock real-time settlement, 24/7 market access and more efficiencies across capital markets.
Clients of BNY, the world’s largest custodian bank, will soon be able to invest in money market funds whose ownership is recorded directly on Goldman Sachs’ private blockchain, according to a Wednesday news release.
“As the financial system transitions toward a more digital, real-time architecture, BNY is committed to enabling scalable and secure solutions that shape the future of finance,” said Laide Majiyagbe, global head of liquidity, financing and collateral at BNY.
The initiative includes participation from industry heavyweights including BlackRock, Fidelity Investments and Federated Hermes, along with the asset management arms of Goldman and BNY, per the release.
The development comes on the heels of the newly signed GENIUS Act, which established a regulatory framework for stablecoins in the US. The bill, passed last week with more than 300 House votes, bans interest-bearing stablecoins.
SEC approves, instantly pauses Bitwise ETF conversion
The US Securities and Exchange Commission approved and then immediately paused the conversion of Bitwise’s crypto index fund into an exchange-traded fund on Tuesday, leaving it in limbo pending a review.
The SEC’s Division of Trading and Markets gave an “accelerated approval” for the Bitwise 10 Crypto Index to be converted to an ETF — but in a letter the same day, SEC assistant secretary Sherry Haywood said the order is stayed until the Commission orders otherwise,” and the SEC “will review the delegated action.”
The fund gives exposure to a basket of cryptocurrencies, including Bitcoin (BTC) and Ether (ETH), and Bitwise applied for the conversion in November.
NovaDius Wealth Management president Nate Geraci said it was a “bizarre situation,” and noted it was similar to the Grayscale Digital Large Cap ETF conversion delay, which was approved on July 1 and then paused soon after.
Bloomberg ETF analyst Eric Balchunas said he thinks the SEC might be stalling until the agency comes up with a listing standard for crypto ETFs.