The Nasdaq Crypto Index (NCI) closed the week 1.3% above last week's close. Ether (ETH) decreased 1.1%, while bitcoin (BTC) was up 2.4%. Two significant news events impacted the index's relatively flat performance. First, the Federal Reserve expressed the possibility of further rate rises in the future due to a stronger-than-expected economy, which crypto markets reacted negatively to. However, these losses were recovered on Thursday when BlackRock surprised the market by filing for a spot BTC ETF, pressuring the SEC to clarify its stance on cryptocurrencies. The political battle surrounding the role of crypto markets in US financial innovation remains intense.
BlackRock files bitcoin ETF application with the SEC
If BlackRock successfully launches a bitcoin ETF, it would offer a regulated and mainstream investment vehicle for investors to gain BTC exposure, potentially attracting more institutional and retail investors to the crypto market. This development can lead to increased liquidity, improved market infrastructure, and greater acceptance of cryptocurrencies as legitimate investment assets.
BNY Mellon Commits to Long-Term Digital Asset Initiatives
BNY Mellon's expanded cryptocurrency services for institutional investors indicate increased acceptance by traditional financial institutions, fostering legitimacy, improved infrastructure, and potential for institutional participation and investor protection in the crypto market.
Bank of China investment arm issues tokenized notes on Ethereum
UBS partnered with BOCI to issue the notes (roughly $28 million) tokenized on the Ethereum blockchain. “We are encouraged by the evolution of Hong Kong’s digital economy and are committed to promoting the digital transformation and innovative development of Hong Kong’s financial industry,” said Ying Wang, deputy CEO at BOCI. Hong Kong is working toward becoming a crypto hub
Binance.US responds to fraud, market manipulation, asset safeguarding claims
Binance's US affiliate stated that it has been actively cooperating with the SEC's investigation since 2020, demonstrating its commitment to addressing the allegations and working towards a resolution. The federal judge overseeing the SEC's case against Binance and Binance.US declined to order a temporary restraining order freezing the U.S. trading platform's assets.
US lawmakers file ‘SEC Stabilization Act’ to fire Chair Gensler
“U.S. capital markets must be protected from a tyrannical Chairman, including the current one," Rep. Warren Davidson wrote in reference to SEC head Gary Gensler. Davidson's action demonstrates the increasing worries among cryptocurrency users and politicians regarding the potential adverse effects of the SEC's actions on the digital asset sector and the broader US capital markets.
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