Frank Holmes
Crypto SWOT: Bitcoin topped $30,000 last week on growing expectations of a spot Bitcoin ETF approval
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Strengths
- Of the cryptocurrencies tracked by CoinMarketCap, the best performer for the week was Bitcoin SV, rising 56.84%.
- Bitcoin and other cryptocurrencies weakened on Thursday, but digital assets remained at relatively elevated levels as hopes persist that regulators will soon approve a spot Bitcoin ETF, a key catalyst for cryptos, writes Bloomberg.
- Bitcoin topped $30,000 for the second time this week on growing expectations that another favorable court action raises the likelihood that an exchange-traded fund holding cryptocurrency will finally be approved, writes Bloomberg.
Weaknesses
- Of the cryptocurrencies tracked by CoinMarketCap, the worst performer for the week was Conflux, down 9.12%.
- New crypto regulations will wipe out the bulk of Australian-registered exchanges as they struggle to comply with the requirements designed to limit the scams and fraud rife throughout the industry. Crypto exchanges will soon be required to hold a financial services license issued by the Australian Securities and Investments Commission, writes Bloomberg.
- A key pillar of demand for Ether is weakening against a backdrop of elevated Treasury yields. The staking payout on pledged tokens has fallen to an annualized 3.5%, near the lowest in at least 10 months and well below a recent peak of more than 8%, according to Bloomberg.
Opportunities
- After months of declining volatility, Bitcoin traders experienced some of the wildest price swings they've seen in a while when a false report circulated saying that the U.S. had approved a long-awaited ETF. Bitcoin jumped more than 10% to $30,000 only to cut the gain by more than half a few minutes later, writes Bloomberg.
- Depository Trust & Clearing Corp agreed to buy startup Securrency Inc., part of the main U.S. stock-market clearinghouse's drive to offer blockchain technology and services for functions like post-trade processing of tokenized assets, writes Bloomberg.
- The Federal Deposit Insurance Corp. plans to provide a firmer timeline for dealing with banks' request to get involved with crypto, and to finish assessing the risks digital currencies pose to banks by early next year. The FDIC was responding to concerns highlighted in a report from the agency's inspector general that the agency hasn't done a full analysis of crypto's risks to banks, writes Bloomberg.
Threats
- The European Union's markets watchdog has called for crypto companies and national regulators to start preparing to meet the bloc's new industry rules. The European securities and markets authority said on Tuesday that digital asset firms should apply for authorization with national regulators under the EU's incoming Markets in Crypto-Assets regulation, writes Bloomberg.
- Geminin Trust Co. and Barry Silbert's digital currency group were sued by New York's top law enforcement officer for allegedly defrauding customers of $1.1 billion, escalating legal woes for two companies hit hard by last year's plunge in cryptocurrency markets, writes Bloomberg.
- A Depression-era securities law is forcing courts to wrestle with what it means to sell securities in the age of YouTube and Instagram. Federal law has for decades allowed those who are defrauded or who bought an unregistered security to sue the seller seeking a refund. New kinds of investments have tested the definition of “seller,” according to an article published by Bloomberg.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
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