As the dust of a new week settles, the crypto industry’s focal point seems to be the tension surrounding a potential Bitcoin ETF – a notion which splits opinion across the board. With heavyweight investment company, BlackRock, on the frontlines, the spark for this debate is their CEO, Larry Fink’s recently developed fondness for Bitcoin. While some industry analysts and enthusiasts applaud the regulation and mainstream attention that will likely come with an ETF, others highlight the dangers of defying decentralization, one of cryptocurrency’s main attributes.
Last week, Alex Thorn, Head of Research at Galaxy, argued that the surge of mainstream investors might prove detrimental to the properties that give Bitcoin an edge over centralized options. The popular digital asset, however, has shown resilience, defending the $30,000 range. Concurrently, the bullish sentiment surrounding Ethereum solidifies, with the coin trading above the $1,800 mark.
On the institutional side, the market exhibits patience, waiting for clarity on BlackRock’s ETF application which had seen some roadblocks. According to Joe DiPasquale of BitBull Capital, the market leader managed to maintain the key price level despite the SEC’s critical view on the ETF proposal.
Moreover, the spotlight also falls on the dYdX Foundation this week, as its CEO Charles d’Haussy discusses the organization’s direction post-Ethereum. Last year, dYdX announced its determination to stray from Ethereum, citing concerns about its scalability and opting to develop a proprietary blockchain based on Cosmos. From d’Haussy’s point of view, the autonomy that comes with having a blockchain presents a faster route to success, as it eliminates dependency on external roadmaps.
The Securities and Exchange Commission’s growing pressure on centralised platforms have sparked renewed interest in dYdX. However, the platform’s new technology stack faces testing times, mainly due to the digital market’s cautious stance against the exchange’s future.
However, the unique challenge of balancing decentralization and an ever-transforming tech environment, like keeping diverse validators from different locations and various service providers, could be the key to future prosperity. Add to this the rising demand for domestic validators, as regulations may soon require financial institutions to access public networks via local nodes.
As we push forward into another arduous week, these narratives shape the crypto scene. As the anticipation for a Bitcoin ETF continues to send ripples through the market, we can’t overlook Ethereum’s striving performance and the path d’YdX Foundation is forging in the wake of stringent regulatory scrutiny.
Source: Coindesk
