Illustration by Mitchell Preffer for Decrypt.
The boom that began last week– after US inflation appeared to be cooling – gained momentum this week as markets continued to be rocked by the bombshell from the world’s largest wealth manager BlackRock. submit an application to the SEC for a Bitcoin Spot Exchange Traded Fund (ETF).
Dozens of companies apply for ETFs, dozens have been turned down. So far, not a single bitcoin spot ETF has been approved by the cryptoskeptical SEC, although Canadian regulators have approved many.
The stakes are high: a spot ETF would offer investors the chance to buy into bitcoin and either ride the gravy train or go to hell in a hand basket, but if the latter is the case, rest assured that their investment is protected, unlike those who buy and store cryptocurrencies directly.
If anyone has a shot at getting an ETF approved, it’s BlackRock. The company has a whopping $9 trillion in assets under management and a track record of 575-1 when it comes to getting an ETF approved by the SEC.
The news inspired two other US wealth managers to WisdomTree and Invesco, both of which have already applied for their own ETFs – to submit new ETF applications this week. Valkyrie soon followed suit.
Both Bitcoin (BTC) and Ethereum (ETC) surged this week. The world’s largest cryptocurrency is up 18% to its current price of $30,687, while the largest runner-up is up 12.7% to trade at $1,893 at the start of the weekend.
Investors also flocked to other cryptocurrencies this week. In fact, most of the top thirty cryptocurrencies by market cap have skyrocketed by double-digit percentages. There were no losses on the large unsecured coins.
Bitcoin fork Bitcoin Cash (BCH) is up a whopping 80.5% over the past seven days and is currently trading at $192.90.
regulation and expansion
While all eyes were on the SEC and big money managers this week, there were a few other stories that suggested steady cryptocurrency adoption continued around the world.
In the UK, a Central Bank Digital Currency (CBDC) pilot project backed by the Bank of England published its findings, concluding that a centrally issued sterling-pegged digital currency “could enable a resilient ecosystem.” to promote innovationsand to help meet the future demands of a more digitized society.”
Dubbed Project Rosalind, the project emphasized the programmability of crypto through smart contracts that facilitate automatic payments and enable new types of online transactions.
British parliamentarians voted on it in the House of Lords (upper house) on Monday Financial Services and Markets Billa law proposing regulation for stablecoins, crypto and crypto mining.
The bill has already passed the House of Commons and has reached the final stage: the consideration of amendments, where both houses debate the proposals and tighten the screws until both agree. The last phase requires a signature from King Charlie himself.
It was reported On Tuesday, Germany’s largest bank, Deutsche Bank, applied to Germany’s financial regulator, the Federal Financial Supervisory Authority (BaFin), for a license for a digital asset custody platform.
During a semester Hear Speaking on monetary policy from the Republican-led House Financial Services Committee led by Patrick McHenry (R-NC) on Wednesday, Fed Chair Jerome Powell said the Federal Reserve should play a “robust federal role” in crypto regulation, adding that bitcoin has”staying power” and implies the same for stablecoins as well.
Finally, XRP precursor Ripple was granted one basic payment license in Singapore. Ripple has long felt pressure from US regulators. A lawsuit by the SEC has been pending since 2020 and, like Coinbase, the company is now protecting itself through global expansion.
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.