The crypto market recovery gained momentum this week, following BlackRock‘s application to the SEC for a Bitcoin spot Exchange-Traded Fund (ETF). While numerous Bitcoin spot ETF applications have been rejected, the potential approval of BlackRock’s ETF may signal a critical step towards mass adoption of cryptocurrencies.
BlackRock’s chances of approval are higher than most, with $9 trillion in assets under management and a 575-1 track record for getting ETFs approved by the SEC. Following this news, WisdomTree, Invesco, and Valkyrie filed renewed ETF applications. The stakes for a spot ETF are substantial, giving investors access to Bitcoin with the knowledge that their investment is secure, unlike direct purchases of crypto.
This noteworthy development contributed to the surge in Bitcoin and Ethereum prices, with the former climbing 18% to $30,687, and the latter rising 12.7% to $1,893. The bullish market affected the top thirty cryptocurrencies, showcasing double-digit percentage growth without major losses. Specifically, Bitcoin Cash demonstrated an astounding 80.5% increase in value.
In the midst of the ETF application flurry and rising crypto prices, other movements worldwide indicate the steady adoption of cryptocurrency. The United Kingdom’s central bank digital currency (CBDC) trial project, supported by the Bank of England, successfully demonstrated how a centrally-issued digital currency could contribute to a secure digital ecosystem. Dubbed Project Rosalind, the trial emphasized the programmability of crypto through smart contracts, enabling automated payments and innovative online transactions.
Following the trial, the UK’s Financial Services and Markets Bill, addressing stablecoins and crypto regulation, passed the House of Commons and now proceeds to the Consideration of Amendments stage. Once approved, a royal signature remains the last barrier to implementation.
On the global scale, Germany’s Deutsche Bank applied for a digital asset custody platform license with the Federal Financial Supervisory Authority (BaFin). Furthermore, Fed Chair Jerome Powell expressed that the U.S. central bank should play an active role in regulating crypto, acknowledging Bitcoin’s staying power and hinting at stablecoins’ potential longevity.
Finally, Singapore granted Ripple an in-principle payments license, offering respite from ongoing U.S. SEC lawsuits since 2020. As with Coinbase, Ripple is now expanding globally to hedge against potential regulatory issues.
While optimism seems to be prevailing in the crypto world, it’s crucial to remember that regulatory hurdles and market volatility remain present. The fate of Bitcoin spot ETFs and the wide adoption of cryptocurrencies hinge on the SEC and global financial regulators’ decisions. For now, the market surges in anticipation of a more crypto-friendly future.
Source: Decrypt
