The upswing that began last week– after U.S. inflation appeared to cool – gained momentum this week as markets continued to be rocked by the bombshell from the world's largest asset 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 rejected. So far, not a single Bitcoin spot ETF has been approved by the crypto-skeptical SEC, although Canadian regulators have approved many of them.
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 handbasket, but in the latter case they can be confident that their investment is protected, unlike those who buy and store cryptocurrencies directly.
If anyone has a chance of 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 asset managers, 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) rose sharply this week. The world's largest cryptocurrency rose 18% to its current price of $30,687, while the largest runner-up gained 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 thirty largest cryptocurrencies by market capitalization shot up by double-digit percentages. There were no losses on the large uncollateralized coins.
Bitcoin fork Bitcoin Cash (BCH) is up an incredible 80.5% in the last seven days and is currently trading at $192.90.
Regulation and expansion
While all eyes were on the SEC and major asset managers this week, there were a few other stories that suggested the steady adoption of cryptocurrencies around the world is continuing.
In the United Kingdom, a Bank of England-backed central bank digital currency (CBDC) trial released its findings, concluding that a centrally issued digital currency pegged to the pound “could enable a robust ecosystem.” to promote innovationand to help meet the future demands of a more digitalized society.”
The project, called “Project Rosalind,” emphasized the programmability of crypto through smart contracts that facilitate automatic payments and enable new types of online transactions.
On Monday, British parliamentarians voted on the matter in the House of Lords Financial Services and Markets Billa law proposing regulation for stablecoins, crypto and crypto promotion.
The bill has already passed the House of Commons and reached the final stage: consideration of amendments, where both chambers discuss the proposals and tighten the screws until both agree. The final 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 half a year Hear Addressing monetary policy from the Republican-led House Financial Services Committee led by Patrick McHenry (R-NC) on Wednesday, Fed Chairman Jerome Powell said the U.S. central bank should play a “robust federal role” in crypto regulation, adding that Bitcoin has “Perseverance” and implies the same for stablecoins too.
Finally, the XRP predecessor Ripple was granted one basic payment license in Singapore. Ripple has long felt pressure from US regulators. An SEC lawsuit has been pending since 2020 and, like Coinbase, the company is now securing itself through global expansion.
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