Ken Sim, the mayor of Vancouver, has proposed exploring Bitcoin as part of the city’s financial strategy. He suggested that a Bitcoin reserve would help the city diversify its financial resources. 

The mayor announced plans to formally introduce a motion for this Bitcoin reserve on Dec. 11. 

More States are Inclining Towards a National Bitcoin Reserve

According to the mayor, Vancouver aims to become a Bitcoin-friendly city. The motion will focus on assessing whether Bitcoin could serve as a hedge against economic instability. 

Sim’s political group, A Better City, previously caught the crypto community’s attention in April 2022 by accepting cryptocurrency donations.

“Vancouver is officially the most Bitcoin-friendly city in North America. Biggest Bitcoin monthly meetups, most BTC merchants per capita, and now, building a Bitcoin reserve,” Canadian crypto entrepreneur Julian Figueroa wrote on X (formerly Twitter).

Meanwhile, Bitcoin adoption at the government level continues to grow. El Salvador led the way in 2021 by making Bitcoin legal tender. According to Trading Economics, the country’s gross domestic product (GDP) rose from approximately $29 billion in 2021 to over $34 billion in 2023.

However, global institutions remain cautious about Bitcoin’s role in national economies. In October, the International Monetary Fund (IMF) called on El Salvador to enhance oversight of Bitcoin transactions.

In the US, conversations around adopting Bitcoin at a federal level are intensifying. Senator Cynthia Lummis has championed the idea of a strategic Bitcoin reserve, proposing legislation to formalize the concept. 

Earlier this month, Lummis proposed that the upcoming government sell a portion of Federal Resreve’s gold to increase its Bitcoin holdings. At the same time, Pennsylvania introduced a bill to allocate 10% of state funds to BTC, aiming to combat inflation and diversify investments.

Most recently, investment management firm VanEck also joined the Bitcoin Reserve campaign. The company is actively endorsing BTC’s adoption as a state or national reserve asset. VanECK’s Bitcoin ETF HODL currently holds a net asset of $1.29 billion. 

Overall, Vancouver’s exploration of Bitcoin aligns with a broader trend of governments and institutions considering the cryptocurrency as part of their financial frameworks.

Metaplanet, a Japanese investment firm, has announced plans to raise $62 million by issuing stock acquisition rights to EVO Fund. The raised funds will be allocated to buying more Bitcoin for its treasury management.

The company stressed that it will continue to maintain a Bitcoin-first strategy. 

Metaplanet outlined its strategy in a press release, confirming the issuance of its 12th series of Stock Acquisition Rights. Starting Dec. 16, 2024, the firm will allocate 29,000 units through a third-party allotment. 

Each unit gives EVO Fund the right to purchase 100 common shares, priced at 614 yen per unit, amounting to a total of 17,806,000 yen.

“We are prioritizing a Bitcoin-first, Bitcoin-only approach to treasury management. We have made it clear that we intend to utilize debt and periodic stock issuance to systematically increase our Bitcoin holdings while reducing exposure to a depreciating yen,” Metaplanet stated in the press release. 

Throughout this year, Metaplanet has been actively leveraging stock acquisition rights to increase its Bitcoin holdings. 

In October, the firm concluded its 11th issuance, raising 10 billion yen ($66 million), with a significant portion allocated to further Bitcoin purchases. The company’s shares surged over 1,000% in 2024. 

Public Firms Continue to Buy More BTC

Publicly traded companies are increasingly investing in Bitcoin. Yesterday, Chinese public company SOS Limited also bought $50 million worth of BTC. Following the news, its stock price surged over 100%. 

Also, MicroStrategy recently acquired another $5.4 billion worth of BTC. This was its third round of Bitcoin purchase in November alone. The company has spent over $16 billion on Bitcoin this year, maintaining its status as the largest institutional Bitcoin holder. 

Similar to other firms, MircoStrategy’s stock performance has mirrored Bitcoin’s surge. Its shares have climbed 450% year-to-date, placing it among the top 100 US public companies.

Other firms are also ramping up Bitcoin investments. Marathon Digital recently raised $1 billion through a convertible senior notes offering, earmarking the majority of the funds for Bitcoin acquisitions.

Bitcoin’s price performance continues to fuel optimism. Despite reaching $99,000 in the current cycle, public firms remain confident in Bitcoin’s long-term potential. 

In fact, Pantera Capital recently projected that Bitcoin could hit $740,000 by 2028, reinforcing the bullish sentiment across the industry.

Volatility Shares, a financial firm known for its novel exchange-traded funds, is launching a new line of ETFs. The financial instrument, using a one-plus-one model, will give investors 100% leveraged exposure to two distinct assets simultaneously.

This novel product structure combines major asset classes like cryptocurrencies, equity indices, and volatility measures. It offers portfolios such as BTC+ETH, Nasdaq+ETH, S&P+BTC, S&P+ETH, S&P+Nasdaq, and S&P+VIX.

Volatility Shares Introduces Diversified Exposure to ETFs

According to Eric Balchunas, an ETF specialist at Bloomberg Intelligence, the one-plus-one ETFs are reminiscent of “Return-Stacked ETFs.” They use leverage to maximize exposure without requiring additional capital from investors. Balchunas highlighted the appeal of these products for investors seeking to optimize their portfolio allocation without sacrificing exposure to one asset for another.

“VolatilityShares launching a new line of One+One ETFs which use leverage to give you 100% exposure to two assets at once e.g. 100% QQQ + 100% Ether. Seems similar to the Return Stacked ETFs,” Balchunas remarked.

Jeffrey Ptak, CFA and Chief Ratings Officer at Morningstar, provided additional insight. He explained that the ETFs aim to deliver 100% notional exposure to each of the two underlying assets by utilizing futures contracts.

For instance, the Nasdaq+BTC ETF would simultaneously provide full exposure to the tech-heavy Nasdaq index and Bitcoin’s volatile crypto market. Ptak also confirmed that filings for this line of ETFs have been submitted to regulatory bodies.

Implications for Investors as Crypto-ETF Competition Heats Up

For investors, one-plus-one ETFs represent significant growth in the exchange-traded fund space. Combining traditional financial instruments like the S&P 500 or Nasdaq with high-growth assets such as Bitcoin and Ethereum can allow for unique diversification strategies.

However, the leverage inherent in these products introduces additional risks, particularly for volatile assets like cryptocurrencies. This could amplify both gains and losses.

“Products like these can be game changers for portfolio diversification, but their complexity and leverage make them suitable for informed investors who understand the risks,” said an industry expert following the announcement.

Nevertheless, Volatility Shares’ novel approach arrives amidst increased activity in the crypto ETF space. Bitwise recently filed with the US Securities and Exchange Commission (SEC) for a “Bitwise 10 Crypto Index ETF.”

The index seeks to track the performance of a diversified basket of top cryptocurrencies. The move reflects the growing demand for accessible crypto investments that go beyond single-asset offerings like Bitcoin or Ethereum.

Franklin Templeton also submitted a proposal to the SEC for a Bitcoin and Ethereum Index ETF. This fund would directly compete with Volatility Shares’ dual-asset products by targeting the same market of investors seeking to combine traditional equity exposure with cryptocurrencies.

Despite the surge in crypto-ETF filings, regulatory challenges remain a key hurdle. The SEC has been historically cautious in approving crypto-related ETFs due to concerns over market manipulation and volatility. However, with growing interest from institutional players like BlackRock, Franklin Templeton, and now Volatility Shares, the momentum toward approval may be shifting.