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Bird flu found in mammals near Antarctica for the first time, scientists say

THE 200-foot-tall (60-meter-tall) front of the Getz Ice Shelf in Antarctica is scored with cracks where icebergs are likely to break off, or calve, in this 2016 photo. The first estimate of Antarctic calving has found that since 1997, ice shelves have lost as much ice from calving as from melting. — NASA/GSFC/OIB

BIRD FLU has made its way into fur and elephant seal populations for the first time on the sub-Antarctic island of South Georgia, a team of scientists confirmed on Thursday, setting off alarm bells for conservationists as the highly contagious disease has already killed millions of birds worldwide.

Scientists first suspected the presence of avian influenza near Antarctica in October 2023, following the death of several brown skua seabirds on Bird Island, part of the British Overseas Territory of South Georgia and the South Sandwich Islands.

Then, elephant seals started dying en masse.

In December, scientists with Britain’s Animal and Plant Health and Agency (APHA) and the British Antarctic Survey (BAS) spent three weeks in the affected islands, collecting samples from dead mammals and birds.

Those samples tested positive for bird flu (HPAI H5N1) in elephant seals, fur seals, brown skuas, kelp gulls and Antarctic terns, scientists said Thursday.

“Given Antarctica is such a unique and special biodiversity hotspot it is sad and concerning to see the disease spread to mammals in the region,” said APHA scientific services director Ian Brown.

The current worldwide outbreak of H5N1, which began in 2021, has killed millions of birds on poultry farms, and scientists fear its impact on Antarctic wildlife could be devastating. The virus has the potential to infect 48 species of birds and 26 species of marine mammals, according to a report published last month by OFFLU, a global network of animal influenza experts.

The analyzed samples indicated migratory birds from South America had likely introduced the virus to South Georgia.

“Seals, that are known to scavenge, may become infected when they consume infected bird carcasses,” said ecologist Alastair Ward at the University of Leeds.

Thousands of seals and hundreds of thousands of birds congregate in dense colonies in Antarctica which could allow the virus to easily jump between individuals, resulting in high mortality, OFFLU said.

Penguins — Antarctica’s most iconic animals — do not yet appear to be impacted by the virus, with no reports showing above-average penguin mortality.

BAS which operates two research stations on South Georgia has mostly suspended scientific fieldwork involving human contact with animals following the confirmed cases. The International Association of Antarctica Tour Operators has also instructed boats not to land at some sites on South Georgia and the Antarctic Peninsula, out of caution.

Fueling global concern about the virus’ spread to imperiled wildlife populations, Alaskan officials confirmed last week the first known case of a polar bear dying of H5N1. 

“If a bird is weakened by avian influenza, or succumbs to it, polar bears aren’t fussy about what eat,” Andrew Derocher, a polar bear biologist at the University of Alberta, told Reuters. “If it’s dead and it’s edible they’ll probably eat it. There is a high likelihood of an interaction between climate change, avian influenza, bird mortality and polar bears.”  — Reuters

Biden, Trump tied at outset of US election year — poll

Donald Trump and Joseph R. Biden are seen in this file photo of a presidential campaign debate in Cleveland, Ohio, US, Sept. 29, 2020. — OLIVIER DOULIERY/POOL VIA REUTERS

WASHINGTON — US President Joseph R. Biden and his leading Republican rival, former President Donald Trump, start the election year in a dead heat as many Americans appear to be unenthusiastic about their choices, a Reuters/Ipsos poll released on Wednesday found.

With the state-by-state nominating contest set to kick off with Republican caucuses in Iowa on Monday, 35% percent of respondents in the nationwide survey said they would vote for Biden, the same percentage as said they would vote for Trump.

Nearly one-third of respondents indicated they did not support either candidate. Some 13% said they would not vote, while 9% said they would back another candidate and 8% said they were unsure.

When forced to choose between the two, respondents were equally divided, with 48% supporting each.

The poll found a clear interest in third-party candidates. Anti-vaccine activist Robert F. Kennedy, Jr., a scion of the famed political dynasty who is running as an independent, won the backing of 18% of respondents when he was included as an option. That knocked Mr. Biden’s support in a three-way matchup down to 29% and Mr. Trump’s support to 30%.

The online, randomized survey of 4,677 U.S. adults was conducted nationwide, not focused on particular early-voting states such as Iowa and New Hampshire.

But it shows that Mr. Biden and Mr. Trump start the year as strong favorites for their party’s nomination.

Mr. Trump leads his Republican rivals by a margin of more than 37 percentage points, while neither of Mr. Biden’s two challengers for the Democratic nomination got more than 2% support from the party’s voters.

The survey reflected the polarized state of US politics, as 76% of Democrats said they would vote for Mr. Biden in the Nov. 5 election and 76% of Republicans said they would back Mr. Trump.

Independent voters were not enthusiastic about either candidate. Just 17% said they would vote for Mr. Trump and 11% said they would back Mr. Biden. Meanwhile, 41% of this group said they would not vote at all.

The online randomized poll was conducted Jan. 3 through Jan. 9 and has a margin of error of plus or minus 1.5 percentage points. — Reuters

Philippine lawmakers criticize television ad as bid to revise history

PHILSTAR FILE PHOTO

MANILA – Philippine opposition lawmakers and rights activists have criticized a television advertisement as an effort to whitewash history after it blamed the country’s economic woes on the constitution, adopted following years of martial law.

The one-minute ad aired on prime-time television this week, criticising the 1987 constitution that restored democratic rights after years of martial rule by the late Ferdinand Marcos Sr., the namesake father of the current president.

The ad used the phrase “EDSA-pwera”, combining a colloquial term “etsapuwera”, which means to be excluded or ignored, and EDSA, a major highway in the capital at the centre of the 1986 “people power” revolution that overthrew the elder Marcos.

“This is a continuation of the demonisation of the EDSA People Power revolution by the Marcoses,” said Congressman Edcel Lagman, who has opposed repeated attempts to amend the constitution.

“The ad campaign was crudely made and is devoid of merit. They wanted to convey that EDSA shoved away the people. On the contrary, the EDSA people power revolution was the people’s revolution.”

There was no immediate comment from the office of the president.

Telephone calls to the law firm responsible for the ad went unanswered.

But in an interview on Thursday with ANC News Channel, the firm’s managing partner, Evaristo Gana, said the ad was meant to spur public discussion on constitutional amendments.

Leftist lawmaker Raoul Manuel, however, described the ad as “pro-dictatorship and Marcos rehabilitation propaganda video packaged as advocacy.”
In a statement, Mr. Manuel said, “Our problem was not caused by EDSA or one document. The economic crisis was already severe before the EDSA people power.”

House Speaker Martin Romualdez, a cousin of Mr. Marcos, supports moves to rewrite the constitution, to ease business ownership curbs and lure foreign investors.

But critics fear the move could pave the way for the lifting of term limits in public office, including the president’s.

“Amending the constitution will not cure the problem of corruption and poverty,” said human rights lawyer and martial law victim Neri Colmenares. — Reuters

Okada Manila reopens a more expansive Medley Buffet 

Medley Buffet, Okada Manila’s renowned signature buffet restaurant, recently reopened its doors at its original location on the Upper Ground Floor of the Pearl Wing, offering an even more exciting dining experience.

The restaurant has undergone a magnificent transformation, now boasting a more expansive space and grander culinary offerings. Beyond the spacious dining area, Medley now features 4 private dining rooms that can accommodate groups of various sizes from 8 to 12 persons, as well as 2 rooms that are good for 18 diners each or a total of 36 if combined — a perfect venue for family celebrations or an intimate corporate gathering. The new set-up is adorned with warm lighting from large floral-shaped chandeliers and elegant accents, harmonizing with the restaurant’s green and brown color palette.

A centerpiece of the newly reopened Medley is the Cheese Room, which showcases a well-curated selection of artisanal cheeses sourced from around the world. Aside from cheeses, there is an array of cold cut choices, as well as various nuts, fruits, and jams.

Dining at Medley is a gastronomic journey, featuring a wide range of local and international cuisines, and offering a world of flavors including classic dishes from Korea, Japan, China, and India. Guests will be spoilt for choices with a variety of diverse offerings from each culinary landmark.  Additionally, there is also a seafood station where chefs can cook guests’ selections based on their preferences; a pho and laksa section; meat carving and roasting stations; and a dessert station with a spread of delectable cakes, local delicacies, fruits, and ice cream. The buffet comes with free-flowing fruit juices, soda, beer, and wine, as well as post-meal coffee and tea. For an indulgent experience, unlimited lobsters are available on weekends as part of the bubbly lunch and dinner buffet.

For inquiries and reservations, please send an email to RestaurantReservation@okadamanila.com or call 0917 813 6523.

 

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AP Bren reigns supreme; first team to win on home soil

Midnight struck as the Land of Dawn opened once again for Game 7 last Dec. 17, 2023, at Rizal Memorial Coliseum.

By 14:03, after a grueling battle between Philippines’ AP Bren and Indonesia’s Onic Esports, the Hive stood victorious as they completed their road to a 2nd MLBB World Championship.

The strategic decision-making of Coach Francis “Ducky” Glindro and Coach Vrendon “Vren” Pesebre led to the Hive’s masterful macro play to box out Filipino-import player Kairi “Kairi” Rayosdelsol from Onic’s own jungle during that seventh winner-take-all game. The M5 trophy would then stay in the host country’s territory and be lifted by the MPL Philippines Season 12 champions, with David Charles “FlapTzy” Canon crowned as the Finals MVP.

No end to the PH domination

The era of the Philippines’ dominance is far from over. The win in the M5 World Championship marks the fourth time an all-Filipino team has won a World title.

PH domination began in M2, with a Bren Esports win. Afterwards, M3 belonged to Blacklist International, which brought the iconic “VeeWise” combo and Ultimate Bonding Experience or “UBE” strategy to international fame. Finally, ECHO won in M4.

This historic win means that it is the first-ever MLBB team to win the M Series World Championship tournament in their home court. As a cherry on top, the thrilling Grand Finals stream broke viewership records, gained over five million in peak viewership, and surpassed all their views in all M-series history.

AP Bren is only one of the teams to watch throughout the MLBB world, with more young Filipino players gaining recognition and showing gradual improvement. As the saying goes, “Pinas Lang Malakas” and for FlapTzy, this means more than just a phrase.

“Pinas Lang Malakas means that Filipinos don’t give up. Even when Filipinos are at a disadvantage, they still won’t give up. That’s why it’s ‘Pinas Lang Malakas’,” FlapTzy said during the post-match interview.

The Upper and Lower Bracket Finals Journey

Before AP Bren faced Indonesia for a Grand Finals showdown, it was the MPL Indonesia Season 12 champions that had the upper hand against the Hive. AP Bren was forced down to the lower brackets to fight for survival after Kiboy and Kairi’s dominating combinations.

Fate had it that the opponents they had to face in the Lower Bracket Finals were their fellow Filipino representatives, Blacklist International.

The Season 12 Grand Finals rematch in the M5 stage was set, but the same strategies were in place. AP Bren targeted Sensui once more as they pulled him away from his comfort zone by banning the Utility Heroes he was seen prioritizing.

The Sensui Instincts couldn’t activate as Bren knew exactly what to do to zone out the veteran jungler. After a 4-0 sweep, Angelo Kyle “Pheww” Arcangel, Marco “Super Marco” Requitano, FlapTzy, Michael “KyleTzy” Sayson, and Rowgien “Owgwen” Unigo took the Lower Bracket Finals win, which landed them a spot for a rematch against Onic Esports in the Grand Finals.

In an email interview with the team after the match, Vincent “Pandora” Unigo mentioned that the team had a talk before their Grand Finals berth. “Bago mag Grand Finals, nag usap kaming lahat na eto na yung last series for the year kaya ibigay na namin ang lahat at maging excited kasi maraming tao ang pumunta para suportahan kami.” He added.

The Epic Seven-Game Finals

Predictions swarmed the internet with Facebook comments, TikTok videos, and tweets revolving around the Upper Bracket Finals results. Numbers were leaning towards a possible Indonesia’s Onic Esports win, but the Filipino audience remained hopeful and confident.

The fully packed Rizal Memorial Coliseum screamed the name of the Pinoy representatives, clamoring for a win in their home country. As the record showed that no team from the host country has ever won a World Championship title, pressure and expectations were high.

Game 1 began at 7:00 P.M. Both teams brought out their signature META picks to start the Grand Finals strong.  But within minutes, AP Bren took the first win as the crowd roared in excitement.

Game 2 continued at a similar pace, as both teams prioritized their comfort heroes for this match-up while targeting each other’s strongest players. However, in the close 14-13 kill difference, it was Onic who took the match within the 22:49 minute mark behind Sanz’s explosive performance.

After that 1-1 standing, AP Bren went on a rampage in Games 3 and 4, taking both matches that led them to matchpoint. It was Pheww and KyleTzy who led both games, earning them their respective match MVPs.

The crowd went wild as the nation believed that Bren could win it all. But after turning things around late in a sterling Game 5 and 6 run, Sanz, Kiboy, and Kairi led the Indonesian squad for another fighting chance.

“Even at matchpoint, we didn’t see Onic change their playstyle. You could still see their chemistry, so they were still able to punish our mistakes in Game 5, especially in Game 6,” Pheww recalled.

During the huddle before the last showdown of the night, Coach Ducky assured his teammates that no matter the result, he’ll remain proud of the young squad. “Win or lose, I’m really proud of you. Kung ano marating natin today, just make sure na alam niyo, I’m really proud of you.”

Finally, when the clock struck midnight, Game 7 began, and the rest of the events cemented MLBB history.

What’s Next for AP Bren?

After a long period of rest, the Hive is seeking to compete in more tournaments in the coming year. “Elevating the team performance further. Compete in as many tournaments as possible,” said Coach Ducky.

Pheww and KyleTzy repeated the sentiments, with KyleTzy looking forward to the re branded Mobile Legends: Bang Bang Mid-Season Cup (MSC).

The M5 World Championship is powered by Smart Communications Inc. as its official telco partner. Smart enables Filipinos to enjoy the best mobile gaming experience powered by the Philippines’ Fastest and Best Mobile Network, as recognized by Ookla, the global leader in mobile and broadband network intelligence.

Learn how Smart empowers subscribers to elevate their gameplay and embark on their esports journey by exploring GIGA Arena. Smart and TNT subscribers can effortlessly participate in any GIGA Arena tournament with Giga Arena 20, offering two GIGA Arena tickets and 100MB for all apps, valid for one day at just P20. To find out more, visit http://gigaarena.smart.

 

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ASEAN special envoy meets Myanmar junta chief

FILE PHOTO: Myanmar's junta chief Senior General Min Aung Hlaing, who ousted the elected government in a coup on February 1, presides at an army parade on Armed Forces Day in Naypyitaw, Myanmar, March 27, 2021. REUTERS/Stringer/File Photo

Myanmar’s junta chief Min Aung Hlaing met with a special envoy from the Association of Southeast Asian Nations (ASEAN), state media reported on Thursday as Laos takes over chairing the bloc, which has encouraged peace efforts in the country.

The military ruler met Alounkeo Kittikhoun, special envoy of the ASEAN chair on Myanmar, in the country’s capital Naypyitaw amid frustration with the lack of progress by Myanmar’s generals in achieving peace under a plan agreed among ASEAN member states including Myanmar in late 2021.

Myanmar has seen a ceaseless cycle of violence since the military seized power from an elected government in a 2021 coup. ASEAN has repeatedly urged the junta to halt hostilities and implement its “five-point consensus”, but with little impact.

In recent months, violence has intensified as armed ethnic groups fighting for democracy and autonomy step up their efforts against the military, capturing outposts and even a major commercial town on the border with China.

While Myanmar’s generals have been barred from high-level ASEAN meetings, the bloc has maintained relations with the junta, especially through the office of the special envoy, leadership of which rotates among the member states every year.

State-owned newspaper Global New Light of Myanmar reported the two leaders discussed “efforts of the government to ensure peace and stability of the State and national reconciliation”.

Min Aung Hlaing said his administration is “implementing the ASEAN five-point consensus adjusted with the roadmap of the State Administration Council”, according to the newspaper. – Reuters

China warns Taiwan ruling party presidential candidate is dangerous

CHESS PIECES are seen in front of displayed China and Taiwan’s flags in this illustration taken Jan. 25, 2022. — REUTERS

BEIJING/TAIPEI – China on Thursday said it hopes the majority of Taiwanese “make the right choice” ahead of pivotal elections, warning of the “extreme danger” of Taiwan’s ruling party presidential candidate Lai Ching-te in triggering cross-strait conflict.

Taiwan holds a pivotal presidential and parliamentary election on Saturday that is being closely watched internationally amid geopolitical tensions.

China has not publicly nominated a preferred candidate or specified what the right choice is.

Chen Binhua, a spokesman for the China’s Taiwan Affairs Office under the State Council, said in a statement that the ruling Democratic Progressive Party’s (DPP) Mr. Lai is a “Taiwan independence worker” and that if he came to power he would further promote separatist activities.

“I sincerely hope the majority of Taiwan compatriots recognize the extreme harm of the DPP’s ‘Taiwan independence’ line and the extreme danger of Mr. Lai Ching-te’s triggering of cross-Strait confrontation and conflict, and to make the right choice at the crossroads of cross-Strait relations,” the statement cited him as saying.

Beijing claims Taiwan as its own territory and has cast the island’s presidential and parliamentary elections on Saturday as a choice between peace and war across the Taiwan Strait.

Beijing has repeatedly warned any attempt to push for Taiwan’s formal independence means conflict. Taiwan’s government rejects China’s sovereignty assertion.

Earlier this week, Mr. Lai said in a press conference that he would maintain the status quo in the Taiwan Straits and pursue peace through strength if elected, remaining open to engagement with Beijing under the preconditions of equality and dignity.

Referring to Mr. Lai’s comments, Mr. Chen said Taiwan independence is “incompatible with peace” in the Taiwan Straits.

Both the DPP and the main opposition Kuomintang (KMT) party parties support Taiwan’s sovereignty but offer different views on the island’s relations with China.

The KMT argues that both Taipei and Beijing belong to one single China but each can interpret what that means under something called the “1992 consensus”, a tacit understanding reached between the then-KMT government and China in 1992.

On Thursday, the KMT’s presidential candidate Hou Yu-ih, told reporters that he wouldn’t touch the issue of reunification during his term of office if elected, while maintaining the status quo and encouraging exchanges with China.

The DPP rejects Beijing’s sovereignty claims, saying Taiwan’s future should be decided by its people.

The United States, in a clear signal to China, opposes any outside interference or influence in Taiwan’s upcoming presidential and parliamentary elections, a senior Biden administration official said on Wednesday. Read full story

In a move that might stoke tensions with China, the United States said it plans to send an unofficial delegation to Taiwan following the election, according to a US senior official. – Reuters

US SEC approves bitcoin ETFs in watershed for crypto market

KANCHANARA-UNSPLASH

WASHINGTON/NEW YORK – The US securities regulator on Wednesday approved the first US-listed exchange traded funds (ETFs) to track bitcoin, in a watershed for the world’s largest cryptocurrency and the broader crypto industry.

The Securities and Exchange Commission said it approved 11 applications, including from BlackRock, Ark Investments/21Shares, Fidelity, Invesco and VanEck, despite warnings from some officials and investor advocates that the products carried risks.

Most of the products are expected to begin trading Thursday, issuers said, kicking off a fierce competition for market share.

A decade in the making, the ETFs are a game-changer for bitcoin, offering investors exposure to the world’s largest cryptocurrency without directly holding it. They provide a major boost for a crypto industry beset by scandals.

“It’s a huge positive for the institutionalization of bitcoin as an asset class,” said Andrew Bond, managing director and senior fintech analyst at Rosenblatt Securities.

Standard Chartered analysts this week said the ETFs could draw $50 billion to $100 billion this year alone. Other analysts have said inflows will be closer to $55 billion over five years.

The market capitalization of bitcoin stood at more than $913 billion as of Wednesday, according to CoinGecko. As of December 2022, total net assets of US ETFs stood at $6.5 trillion, according to the Investment Company Institute.

Bitcoin BTC= was last up 3% at $47,300. The cryptocurrency has soared more than 70% in recent months in anticipation of an ETF, and hit its highest level since March 2022 this week.

Success in the battle for inflows will mostly depend on fees and liquidity, analysts say. Some issuers slashed their proposed fees in new filings this week, including BlackRock and Ark/21Shares. Those fees range from 0.2% to 1.5%, with many firms offering to waive fees entirely for a certain period of time. For short-term speculators looking to buy in and out of the products, liquidity could be more important.

Companies expect a flurry of online advertising and other marketing. Some issuers, including Bitwise and VanEck, have already released ads touting bitcoin as an investment.

“It is pretty unprecedented, so we’ll see how it works. I’ve never been in a situation where 10 of the same ETF was launched on the same day,” said Steven McClurg, chief investment officer at Valkyrie, whose ETF was among those approved on Wednesday.

The approvals come a day after an unauthorized person published a fake post on the SEC’s account on social media platform X, saying the agency had approved the products for trading. The agency quickly disavowed and deleted the post.

On Wednesday it said it is coordinating with law enforcement and the SEC’s own internal watchdog to investigate the incident.

That incident, and a confused announcement on Wednesday afternoon in which the SEC appeared to publish the formal regulatory approval and then remove it from its website, did not dampen the crypto industry celebrations.

“We believed that bitcoin could change the world, and we were and remain excited at the prospect of democratizing access to this asset,” said Grayscale CEO Michael Sonnenshein.

Douglas Yones, head of exchange traded products at the New York Stock Exchange, where some products will be listed, said the approval was also a “milestone” for the ETF industry.

Cynthia Lo Bessette, head of digital asset management at Fidelity, said the new products should provide “increased choice for investors who want to engage with” crypto.

Some regulatory experts believe the bitcoin ETFs could also pave the way for other innovative crypto products. Several issuers, for example, have filed for ETFs tracking either, the second-largest cryptocurrency.

“Once the dam has been breached, it’s going to be really hard for the SEC to continue its ‘just say no to crypto’ approach,” said Jim Angel, associate professor at Georgetown’s McDonough School of Business.

 

‘SPECULATIVE, VOLATILE’

Cryptocurrencies were created as an alternative to fiat currencies — currencies established by and backed by a government such as the US dollar and the euro — but cryptocurrencies are largely used as speculative investments due to their volatility.

The green light marks a U-turn for the SEC, which had rejected bitcoin ETFs due to worries they could be easily manipulated. SEC Chair Gary Gensler is a fierce crypto skeptic.

In a highly unusual move, however, Gensler, a Democrat, joined the SEC’s two Republican commissioners in voting to approve the products, while the agency’s two Democratic commissioners voted against. One, Caroline Crenshaw, cited investor protection worries.

Hopes the SEC would finally approve bitcoin ETFs surged last year after a federal appeals court ruled that the agency was wrong to reject an application from Grayscale Investments to convert its existing Grayscale Bitcoin Trust into an ETF.

In a statement on Wednesday, Mr. Gensler said that in light of the court ruling, approving the products was “the most sustainable path forward,” but added the agency did not endorse bitcoin, calling it a “speculative, volatile asset” also used to fund crime.

Gensler also repeated his long-held position that bitcoin is a commodity not a security, and as such, Wednesday’s approval was in “no way” a signal that the SEC would be easing up on its crackdown on crypto players it says are flouting its laws.

To meet the SEC’s investor protection bar, several exchanges had proposed working with Coinbase, the largest US crypto exchange, to police trading in the underlying bitcoin market. But the issuers scrapped that partnership this week in favor of an existing arrangement with the Chicago Mercantile Exchange, which was at the core of Grayscale’s court victory.

The SEC is currently suing Coinbase for allegedly breaching US securities laws, which the company denies.

Dennis Kelleher, CEO of investor advocacy think tank Better Markets, warned that bitcoin was still vulnerable to crypto fraudsters and said approving the ETFs was a “historic mistake.”

“The SEC’s action today has changed nothing about this worthless financial product: bitcoin and crypto still have no legitimate use,” he said. – Reuters

Why a US bitcoin ETF is a game-changer for crypto

ANDRÉ FRANÇOIS MCKENZIE-UNSPLASH

The US Securities and Exchange Commission (SEC) on Wednesday approved exchange-traded funds (ETFs) that track the price of bitcoin in a game-changer for the cryptocurrency industry which has been trying for more than a decade to launch such a product.

Multiple asset managers have applied for bitcoin ETFs since 2013, but the SEC rejected them on the grounds they would be vulnerable to market manipulation. In August, however, a court found the SEC was wrong to reject Grayscale Investments’ bitcoin ETF application, forcing the agency to rethink its stance.

On Wednesday, SEC approved applications from ARK Investments, BlackRock and Fidelity, among others. Here is how the products work and why the approval is seen as a big deal:

 

HOW WILL THE ETFS WORK?

They will be listed on Nasdaq, NYSE and the CBOE. Their assets will comprise physical bitcoin purchased from crypto exchanges and held via custodians like Coinbase Global.

The products track a bitcoin benchmark. Some track an index provided by CF Benchmarks, a subsidiary of crypto exchange Kraken, which aggregates trading data from multiple Bitcoin-USD markets operated by big cryptocurrency exchanges.

To address the SEC’s manipulation concerns, Nasdaq and CBOE have created a market surveillance mechanism with Coinbase, the largest US cryptocurrency exchange.

Issuers plan to charge fees ranging from 0.20% to 0.8%, well below the broader ETF market average.

 

IS IT DIFFERENT TO BUYING BITCOIN OUTRIGHT?

Yes. A spot bitcoin ETF allows investors to gain exposure to the price of bitcoin without the complications and risks of owning bitcoin directly. Those include setting up crypto wallets and accounts with crypto exchanges, some of which have poor cyber security records and are prone to hacks.

The industry has also experienced a string of bankruptcies and scandals, including the implosion of crypto exchange FTX, whose founder Sam Bankman-Fried was found guilty of fraud.

Other exchanges have been accused of flouting US securities laws, while Binance, the world’s largest crypto exchange, recently pleaded guilty to breaking US anti-money laundering laws. All this continues to make many investors wary.

In contrast, ETFs are listed on tightly-regulated stock exchanges and are therefore accessible through retail investors’ existing brokerage accounts, which are also closely supervised.

The ETF structure also boosts the accessibility of bitcoin for institutional investors, some of whom are barred from investing directly in alternative assets.

 

WHY IS IT DIFFERENT TO EXISTING BITCOIN FUTURES ETFS?

The SEC in 2021 approved bitcoin futures ETF, which track agreements to buy or sell bitcoin at a pre-agreed price. But those products don’t track price movements precisely, and the cost of rolling over futures contracts can eat into returns, making them less desirable for many investors.

 

AREN’T THERE SPOT BITCOIN ETFS IN CANADA AND EUROPE?

Yes. But the United States is the world’s largest capital market, home to some of the globe’s largest asset managers and institutional investors.

 

HOW MUCH WOULD A BITCOIN ETF REEL IN?

It’s unclear. The ProShares Bitcoin Strategy ETF, the first bitcoin futures ETF approved by the SEC in 2021, saw around $1 billion worth of shares trading hands on its first day, and some experts believe a spot bitcoin ETF could net three times that much on its first day. That figure could balloon to $55 billion over five years, some expert estimate.

While bitcoin has gained 70% since the Grayscale ruling, analysts said it was unclear how much further it would rise, with some saying interest rates would play a bigger role.

 

BUT IT’S NOT JUST ABOUT THE MONEY

For the crypto industry, a spot bitcoin ETF is a big win, boosting the legitimacy of the cryptocurrency industry and pushing bitcoin further into the mainstream.

It also comes amid a broader tug-of-war between the crypto industry and SEC, which has been cracking down on the sector. When it comes to this particular battle, the industry can claim victory. – Reuters

Dozens of US lawmakers back resolution supporting Taiwan democracy -document

WINSTON CHEN-UNSPLASH

WASHINGTON – Dozens of US Congress members are backing legislation praising democracy in Taiwan, according to a copy of the resolution seen by Reuters on Wednesday, a measure likely to anger Beijing days before Taiwan’s elections.

“Resolved, That the Senate … is committed to supporting Taiwan’s self-defense and the liberty of its people through effective deterrence using all elements of United States power,” read the resolution, which has at least 28 Republican and Democratic sponsors in the Senate.

The resolution praises Taiwan’s “rule of law and vibrant civil society, diverse economy, and stable political system,” and contrasts that with the situation in China.

Taiwan’s voters head to the polls on Saturday for presidential and parliamentary elections that are taking place against a backdrop of a ramped-up war of words between Taiwan and China, which views the island as its own territory despite the strong objections of the Taiwanese government.

Taiwan’s government has accused China of an unprecedented campaign of election interference, using everything from military activity to trade sanctions to sway the vote toward candidates Beijing may prefer.

The resolution’s sponsors hope it will pass by unanimous consent this week.

Republican Dan Sullivan, who led the resolution with Democratic Senator Tim Kaine, said, “I think it’s really important for the United States in a bipartisan way to show steady, unwavering support and commitment to Taiwan’s democracy and continue to undertake policies to enhance cross-Strait deterrence.”

He stressed that the measure’s backers are not choosing sides in Taiwan’s presidential race. “There’s three strong candidates, three strong parties. Our commitment just needs to be to a fair process that’s not undermined by coercive activities by Beijing,” he told Reuters.

The United States is Taiwan’s most important international backer and arms supplier despite the lack of formal diplomatic ties with the island, which China views as its own territory.

Democratic President Joe Biden asked the Senate last year to approve billions of dollars in security assistance for Taiwan, but lawmakers have not yet voted on his request. Republicans insist that the aid package – which also includes money for Ukraine’s war with Russia – be tied to an overhaul of US immigration policy.

Mr. Sullivan said negotiators were “making progress” on the Taiwan component of the supplemental funding request, but that it depended on whether Democrats would agree to a significant border security component.

Republicans and Democrats in the House of Representatives planned to introduce a nearly identical measure on Taiwan. The House version of the resolution is led by Democratic Representatives Gerald Connolly and Ami Bera, and Republicans Andy Barr and Mario Diaz-Balart.

Taiwan’s de facto ambassador to the United States, Alexander Yui, met with House of Representatives Speaker Mike Johnson on Tuesday, prompting a complaint from China.

China routinely objects to any form of what it views as official contacts between Taiwanese and US officials, saying it is interference in internal Chinese affairs. Beijing says Taiwan is the most sensitive and important issue in Sino-US relations. – Reuters

NATO pledges further major military, economic aid to Ukraine

FREEPIK

BRUSSELS – NATO allies in a meeting with Ukraine have made it clear they will continue to provide the country with major military, economic, and humanitarian aid in the face of Russia’s almost two-year-old invasion, NATO said on Wednesday.

In a statement after the video conference, NATO added that member states had outlined plans to provide “billions of euros of further capabilities” in 2024 to Ukraine.

“NATO strongly condemns Russian missile and drone attacks on Ukrainian civilians, including with weapons from North Korea and Iran,” NATO Secretary General Jens Stoltenberg said.

“As Moscow intensifies its strikes on Ukrainian cities and civilians, NATO allies are boosting Ukraine’s air defenses.”

Ukraine was represented at the online gathering by Lieutenant General Mykola Oleshchuk, commander of Kyiv’s air force, and Deputy Interior Minister Oleksii Serhieiev.

Russia has intensified attacks over the New Year period and pounded Ukraine’s two biggest cities, Kyiv and Kharkiv, earlier this month in a new wave of heavy air strikes.

The NATO meeting on Wednesday was held at Ukraine’s request. – Reuters

Boeing’s latest MAX problem creates more headache for airlines

REUTERS

CHICAGO – A cabin blowout at 16,000 feet and the grounding of more than 170 Boeing jets have rekindled frustration among airlines over the planemaker’s struggle to contain a series of safety and supply crises, industry officials and experts said.

Alaska Airlines, which operated Friday’s domestic US flight, and United Airlines together have 70% of the MAX 9 fleet and have canceled hundreds of flights.

And with provisional checks turning up loose bolts in some of the grounded planes, the return to service could be delayed, with implications for the earnings of both airlines.

Some analysts have already trimmed first-quarter profit estimates for both the carriers. However, the scale of impact depends on how long the planes remain grounded.

Boeing CEO Dave Calhoun on Tuesday acknowledged mistakes and told staff he and many customers had been “shaken to the bone.” Boeing must work to earn their confidence, he said.

“In the next couple of weeks, we will be under siege,” Mr. Calhoun warned, according to people familiar with his remarks.

The siege may be felt in the media, investigation labs or the corridors of Congress – but also in boardrooms of some of the world’s largest airlines, according to executives.

That could also increase pressure for further discounts to win new sales – though the market for new planes remains tight and long lead times additionally mean prices usually creep up again to cover inflation, airline and market sources said.

“Enough is enough,” said Dennis Tajer, a spokesman for American Airlines’= pilots union. “There’s a deeper systemic problem at Boeing.”

United, forced to ground 79 jets for which it had sold seats, is incensed with a supplier with which it shares corporate roots, people familiar with the matter said.

United declined to comment.

Boeing referred to Tuesday’s comments by Mr. Calhoun, who expressed confidence that customers would again show their confidence, but that Boeing would have to demonstrate this by its actions.

Industry frustration with the planemaker had been building up long before a so-called door plug of a 737 MAX 9 aircraft fell off during the Alaska Airlines flight last Friday.

A series of production problems has delayed Boeing’s aircraft deliveries, making it harder for airlines to capitalize on demand. It is not alone in facing supply struggles, however.

Airbus twice missed targets in 2022 but sprinted to a stronger-than-expected finish last year. Supply chains remain tight across the industry due to parts and labor shortages.

American Airlines CEO Robert Isom publicly asked Boeing’s senior management team last year to “get their act together.”

In private, some airlines have pondered direct approaches to the Boeing board or an industry-wide approach but have not gone ahead with any joint steps, industry sources said.

Southwest Airlines, one of Boeing’s loyal customers, had to trim growth plans last year due to the delivery delays. It may again have to adjust plans if the latest accident slows certification of the smaller MAX 7.

The delay in certification has already forced Southwest to convert some MAX 7 orders into the larger MAX 8 variant.

 

‘EGGS IN ONE BASKET’

While Southwest has been calling Boeing a “great partner,” a senior pilot representative said the airline needs to look beyond the US planemaker to reduce its business risk. Airbus has long tried to woo the airline with its smaller A220.

“Boeing has proven what happens if you put all your eggs in one basket,” said Tom Nekouei, vice president of Southwest’s pilot union.

Boeing and its MAX have been under scrutiny ever since crashes of the more widely-sold MAX 8 killed 346 people in 2018 and 2019. It led to worldwide groundings for 20 months.

Since returning to service, the MAX has faced a series of setbacks including loose or missing hardware, improperly drilled holes and incorrectly attached brackets.

Similarly, a fuselage issue led to a pause in deliveries of Boeing’s larger 787 last year.

Industry officials say delays have made it harder to plan schedules. “Airlines want certainty,” said one official, asking not to be named.

But airlines are in a bind as demand roars back from the pandemic. Airbus’ AIR.PA order book is full through 2030.

Boeing this week reported its third-best annual aircraft sales as airlines scramble for capacity. Indian airlines Akasa has been fine-tuning an order for 150 MAX, sources have said.

Longer term, airlines want competition since the industry is dominated by two suppliers.

In 2019, as Boeing reeled from the wider MAX groundings, the then head of British Airways parent IAG, Willie Walsh, stunned the world’s largest air show with a Paris order for 200 MAX.

The order was later downscaled to 50, but the influential airlines boss, who now runs industry association IATA sent out a signal that airlines prefer a choice of suppliers.

Patience is however wearing thin, analysts said.

Addison Schonland, partner at AirInsight, said a strong and stable duopoly is the most desirable outcome for commercial aviation.

“Each MAX event impacts that stability negatively,” Mr. Schonland said. – Reuters

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