Fidelity’s spot bitcoin ETF is set to start trading in Canada, while its US fund is still waiting for the SEC’s green light

Blue bitcoin
Blue bitcoin

  • Fidelity has launched a spot bitcoin ETF in Canada that will start trading on Thursday.
  • Fidelity is “the biggest asset manager to date with a bitcoin ETF”, Eric Balchunas, senior ETF analyst at Bloomberg said. 
  • Spot bitcoin ETFs trade in Europe and Canada, but only futures-based ETFs have been approved in the US.
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Fidelity Investments is about to launch an exchange traded fund (ETF) backed by bitcoin, rather than bitcoin futures, but it’s listing the fund in Canada, as US regulators have still not given these particular crypto products the go-ahead. 

An affiliate of the Boston-based asset manager, Fidelity Investments Canada told Insider it would launch the Fidelity Advantage Bitcoin ETF and ETF Fund “on or around  December 2” under the ticker FBTC, according to its website. The ETF’s bitcoin sub-custodian, Fidelity Clearing Canada. will acquire and hold bitcoin and investors will be able to buy and sell it on the Toronto Stock Exchange.

ETFs backed by physically settled bitcoin are available in Europe, as well as Canada, where regulators approved those funds in February this year. In August, French regulators let asset manager Melanion Capital list a spot bitcoin ETF of its own. 

“We believe that cryptocurrency is a valid asset class that we would like to provide as an investment option for retail investors in Canada by including this in our product offering,” a spokesperson from Fidelity Investments Canada told Insider. 

US investors only have access to bitcoin-futures ETFs for now. Fidelity filed to list a spot bitcoin ETF in the US back in March, but has not got approval to do so at this point.  So far, US regulators have approved bitcoin futures ETFs run by ProShares, Valkyrie and VanEck

Fidelity opted to offer a bitcoin spot ETF over a futures one because bitcoin futures are generally in “contango” which means the futures price is higher than the spot price of the underlying asset, which means investors can lose money when they roll their positions. 

The company also said bitcoin futures ETFs may suffer from capacity constraints due to limits on the number of futures contracts an ETF is permitted to hold at any given time.

Fidelity’s history with digital assets traces back to 2014, when it began research and development efforts into blockchain technology through the Fidelity Centre of Applied Technology.

Some analysts believed Fidelity listing a bitcoin ETF in Canada was a blow to regulators in America. 

“This should be embarrassing for the SEC that one of America’s biggest, most storied names in investing is forced to go up North to serve its clients,” Bloomberg Senior ETF Analyst Eric Balchunas said on Twitter.

Crypto giant Grayscale, which filed for a spot bitcoin ETF in October, sent a letter to the SEC on Monday saying it had no basis to approve bitcoin futures ETFs and not spot ones and by doing so violated the Administrative Protections Act (APA). 

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Many retail jobs that disappeared during the pandemic might not return, says commerce secretary

Vice President Kamala arris and Commerce Secretary Gina Raimondo browsing in a Providence bookstore wearing masks
VP Kamala Harris and Commerce Secretary Gina Raimondo browse in Books on the Square in Rhode Island.

Many US retail and service-industry jobs that went away during the pandemic weren’t expected to return, Commerce Secretary Gina Raimondo said.

“The real issue, I think, is that a lot of the jobs that folks lost are the kinds of jobs – let’s say, for example, in retail or services industries – that might not be coming back, or coming back in the same numbers,” Raimondo told CNBC on Thursday.

Earlier, the Labor Department reported 364,000 jobless claims for the previous week, marking a pandemic-era low. Raimondo’s comments came ahead of Friday’s jobs report from the Bureau of Labor Statistics, which showed the US adding 850,000 payrolls in June, beating expectations.

But the future of work for retail employees and others remained more complex, as the world slowly returned to normal following the COVID-19, Raimondo said.

“To be very honest, it’s so hard to tell in the data” why people weren’t returning to work, Raimondo said.

Teenagers, for example, were taking fewer jobs in June than they had been in the spring, perhaps because the labor shortage allowed them to choose the highest-paying jobs.

There’s also been an uptick in “rage-quitting” among workers, including frontline retail employees. Others were using labor shortages to secure higher pay.

Raimondo on Thursday said the US had to “lean into” job training and apprenticeships, in part because of the shrinking amount of retail jobs available.

“Because the jobs that are being created in cybersecurity or in the digital economy and in the tech economy are there, and are good paying,” she said on CNBC. “We need to make sure that the folks who are unemployed have the skills that they need to get those jobs.”

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Why raccoons are so hard to get rid of

  • Raccoons, which can digest just about anything, are attracted to the huge amounts of garbage that build up in urban areas.
  • These highly intelligent, dexterous critters figure out ways of thwarting human efforts to stop them.
  • In 2016, Toronto spent $31 million to fend off a raccoon invasion, but the critters continued to swarm the city.
  • See more stories on Insider’s business page.

Following is a transcript of the video.

Narrator: In 2016, Toronto spent $31 million to fend off a raccoon invasion. The masked critters were everywhere, pooping on porches, stopping traffic, and infesting attics, and they’re not just taking over Toronto. Reports of raccoon vandalism have plagued cities like Portland, Chicago, and New York City, and as raccoon-ridden cities know, we can’t seem to stop them.

Between the 1930s and 1980s, the US raccoon population increased twentyfold, and it’s still going strong. From 2014 to 2015, raccoon complaints in Brooklyn nearly doubled, so how are these masked bandits making it in big cities?

Well, for starters, they can digest just about anything from fish and acorns in the forest to dog food and pizza on the street, and just like humans, raccoons usually prefer the pizza, which is why they flock from woodland to city in the first place.

In Brooklyn, for example, captured raccoons sometimes get relocated to Prospect Park and nearby forests, but wildlife biologists report they often head right back to the dumpster-packed city streets.

It’s just about impossible to stop them, as Toronto discovered after it spend millions on raccoon-proof waste bins. Unlike traditional bins, the lids had special gravity locks, which open when a garbage truck arm turns the bin upside down. The idea was that if you cut off their major food source, they would skip town, but that didn’t happen. In fact, one year later, a wildlife-control business reported that raccoon-related work had doubled.

Finally, a clever raccoon was caught on camera jailbreaking the new bin. How did she outwit an entire city? Well, study after study has revealed that raccoons are considerably smarter than your average medium-sized critter. Turns out raccoon brains have more neurons packed into their brains than other animals of the same size.

In fact, they have the same neuron density as primates, who are notoriously smart, and their clever brains help explain why raccoons can open complex locks, solve puzzles with ease, and even come up with solutions to problems that scientists didn’t think of. Add to that their ultrasensitive hands, er, paws, which have four times as many sensory receptors as their feet. This helps them to feel subtle textures like special trashcan lids in Toronto and even open locks without looking.

And unfortunately for us, driving them away is a fool’s errand. Studies show that after mass removal, populations tend to rebound to their previous levels in a year. After all, females can start giving birth at just 1 year old and can have as many as eight kits in a single year. This quick breeding is also why experts say mass cullings aren’t a long-term solution.

And while they’re awfully cute, the damage they can cause is not. When raccoons nest in buildings, they can destroy insulation, chew up wires, and tear holes through walls, and it can cost you hundreds or even thousands of dollars to repair that kind of damage. One raccoon was even caught destroying over $3,000 worth of artwork, and just removing them can cost $300 to $500 a pop.

Plus, the poop they leave behind can contain roundworms and other parasites, which can enter your lungs when you breathe or get tracked into your home by your pets. Even worse, raccoons can transmit diseases like canine distemper and, in rare cases, rabies.

So it’s understandable that cities are trying to find some way, any way, to manage them.

Man on broadcast: Can’t do a thing about it, just chase them off. They come back.

Narrator: If nothing else, it’s a lesson learned. We may have built the cities, but we don’t necessarily rule them.

EDITOR’S NOTE: This video was originally published in May 2019.

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Facebook killed off its third US-Hong Kong undersea internet cable project in 6 months, citing US political pressure

mark zuckerberg facebook
Facebook CEO Mark Zuckerberg.

  • Facebook killed its proposal for an internet cable linking the US with Taiwan and Hong Kong.
  • Facebook said it withdrew its FCC application because of US government concerns about links with Hong Kong.
  • This is the third project linking the US and Hong Kong that Facebook has withdrawn in six months.
  • See more stories on Insider’s business page.

Facebook has given up on a project to lay more than 8,000 miles of fiber-optic cable along the seabed to link California with Hong Kong.

The Wall Street Journal was the first to report that Facebook was abandoning the plan, known as the Hong Kong-Americas (HKA) project.

A Facebook spokesperson told the Journal the tech giant was withdrawing from the project because of political pressure from the US government.

Facebook had withdrawn an application to the Federal Communications Commission (FCC) “due to ongoing concerns from the US government about direct communications links between the United States and Hong Kong,” the spokesperson said.

“We look forward to working with all the parties to reconfigure the system to meet the concerns of the US government,” they added – though they did not elaborate on what reconfiguring the project might involve.

The HKA project was originally proposed in 2018 by a consortium made up of Facebook and several Chinese companies including China Telecom. The plan was for the fiber-optic cable to link up two sites in California with a site in Hong Kong and a site in Taiwan.

This is the third time in six months Facebook has withdrawn a proposal for an undersea cable linking the US with China.

A proposed joint Facebook-Google undersea cable called the Pacific Light Cable Network (PLCN) was withdrawn in September 2020 due to national security concerns from the Trump administration.

Facebook also withdrew a proposal with Amazon to link San Francisco with Hong Kong – called the Bay to Bay Express Cable – in September 2020.

These withdrawals came after a Department of Justice committee made a recommendation to the FCC against a direct link to Hong Kong, citing Beijing’s sweeping crackdowns on the region.

In August last year, the Trump administration also drew up broad plans to wall off the US from the Chinese internet, with then-Secretary of State Mike Pompeo claiming undersea cables were a potential point of entry for Chinese state espionage.

Read the original article on Business Insider