The future of exchange-traded funds (ETFs) in the crypto space has been a topic of hot discussion lately, not least because ETFs are expected to account for 10% of bitcoin’s market value within the next three years should the US approve a fund that invests directly in the cryptocurrency, according to a Sanford C. Bernstein research report. Analyst Gautam Chhugani sees a likely growth trajectory towards regulatory approval which could effectively create a growth flywheel for retail and other institutional flows.
Concurrently, London-based Jacobi Asset Management recently listed Europe’s first spot bitcoin ETF on Erontext Amsterdam. Supported by a verifiable Renewable Energy Certificate (REC) solution, this listing paves the way for institutional investors to access the benefits of bitcoin while maintaining their ESG objectives. The cutting-edge, sustainable ETF is regulated by the Guernsey Financial Services Commission and uses Fidelity Digital AssetsSM for custodial services.
Meanwhile, Binance is set to challenge the US Securities and Exchange Commission (SEC), seeking a protective order against the regulator who they allege is exceeding its legal mandate. They argue that the SEC’s authority should be limited to ensuring customer assets are secure and has accused them of utilizing a consent order for an overly extensive inquisition into Binance’s practices.
In a stark contrast, New Zealand’s crypto exchange Dasset users are struggling to access their funds as the company proceeds towards liquidation, following its failure to find a replacement banking provider. This situation highlights the importance of reliable banking relationships for crypto exchanges.
In other news, China commences the trial in a landmark case against Shenzhen Shikongyun Technology, one of the country’s largest Filecoin mining firms, accused of a pyramid scheme involving $83.3 million. Such incidents cast a shadow over the reputation of the crypto industry which struggles with fraud allegations and regulatory scrutiny.
On a hopeful note, Web3 gaming platform Immutable, in collaboration with Polygon Labs, announced the public testing of Immutable zkEVM, a solution purpose-built for game development offering key features like low cost, massive scale, and Ethereum smart contract compatibility.
Elsewhere, decentralized exchange (DEX) RocketSwap confirmed a hack in their system. However, they promptly announced having eliminated any existing high risks and vulnerabilities. Despite the immediate action, this episode adds another layer of skepticism about the security of cryptocurrency holdings.
In shifting trends, lending platform Compound has become the latest protocol to launch on Coinbase’s Ethereum Layer 2 network Base, underlining the growing interest in Ethereum’s enhanced scalability, security, and sustainability.
Overall, while the potential growth and implementation of new technologies in the crypto sector are exciting, the accompanying regulatory challenges and security concerns underline the importance of maturity and resilience in this rapidly evolving market.
Source: Cryptonews
