BLACKROCK MOVES FORWARD WITH BTC ETF APPLICATION 

Amidst the chilling winds of crypto winter and the hurdle of regulatory challenges, the flame of institutional interest in cryptocurrency remains alight, and it’s burning brighter than ever. A recent study conducted by Laser Digital, a subsidiary of Nomura, Japan’s most prominent investment bank, reveals a staggering 96% of asset managers, family offices, hedge funds, and investment funds view digital assets as an opportunity to diversify their investment portfolios. This growing interest from these mainstream financial entities points to the vast potential of BTC.

BlackRock and the Rising Institutional Interest in Crypto

Making its presence felt, the world’s most substantial asset manager, BlackRock, with a colossal $9T in assets under management (AUM), took a leap of faith into the crypto world last week. BlackRock made its move by applying to the U.S. Securities and Exchange Commission (SEC) for permission to operate a spot Bitcoin ETF. This move comes after BlackRock launched a private spot Bitcoin trust for its U.S. institutional clients in the previous year.

If approved, a spot Bitcoin ETF would provide an affordable and straightforward way for individuals and institutions to access Bitcoin. This would open up a whole new world of possibilities for the leading cryptocurrency.

The SEC, however, has remained hesitant in granting approvals for a spot Bitcoin ETF. Previous attempts by crypto firms such as NYDIG and conventional finance giants like Fidelity, VanEck, and WisdomTree have all met with rejection. The rejection stems from the SEC’s concerns about the potential manipulation of Bitcoin prices.

Brazil’s Journey Towards Financial Inclusion

Brazil, with over 200 million residents, is emerging as a significant player in the world of cryptocurrencies. With the third-highest crypto adoption growth rate in 2022, Brazil is a prime candidate for testing a central bank digital currency (CBDC). These tests, conducted in collaboration with major payment firms like Visa, Mastercard, and others, aim to encourage financial inclusion by making CBDC transactions more efficient, cost-effective, and democratic. Success with CBDC will push Brazil closer to becoming a significant crypto hub.

Retail Transformed by Web3 Technologies

Another area where the crypto world is making waves in retail. Brands are exploring Web3 technologies to revolutionise online shopping, transforming it into an immersive, interactive experience that replicates the in-person experience. This move towards a more engaging and efficient transaction process stands to benefit the entire crypto ecosystem.

Binance and SEC Agreement

In other significant news, Binance, one of the world’s largest crypto exchanges, reached an agreement with the SEC to prevent a shutdown of Binance US. This decision marks a significant turning point in the relationship between crypto exchanges and regulatory authorities.

Midweek Market Take-off

The market saw a 20% price resurgence in Bitcoin in the last week, rebounding from a downtrend sparked by lawsuits against Coinbase and Binance by the SEC. This rise can be attributed to BlackRock’s move to launch a Bitcoin ETF, which also stirred the market for platforms such as Ainslie Crypto.

Wrapping Up

In summary, last week was eventful in the crypto world, with institutional interest on the rise, Brazil’s experimentation with CBDC, and Web3 technologies reshaping retail. All these developments point towards a bullish future for the crypto world.

 

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