By James Davis
The crypto market showed signs of recovery last week following news that the United States inflation was cooling down. This week, the market continued its upward momentum thanks to Bitcoin Exchange-Traded Fund applications filed by multiple asset management companies, including BlackRock, WisdomTree, and Invesco.
However, it is still unclear if the Securities and Exchange Commission (SEC) will approve these Bitcoin spot ETF applications. That’s because the agency has previously rejected similar applications from several firms. By comparison, Regulators in Canada have now approved more than ten Bitcoin ETFs.
So what’s a Bitcoin ETF? It is a type of investment that allows investors to access BTC without actually owning it. Bitcoin ETFs are ideal for people who are uncomfortable investing in cryptocurrencies directly.
That said, if there is a company with a high chance of securing the SEC’s approval is BlackRock. According to financial expert Eric Balchunas, BlackRock, which currently manages assets worth $8 trillion, has a record of 575-1 in terms of getting ETF approvals from the SEC.
It is worth highlighting that asset managers Invesco and WisdomTree, who applied for Bitcoin ETFs after BlackRock, have both had such applications rejected in the past.
Crypto Price Analysis
Meanwhile, Bitcoin is up 15.46% this week. Before settling at its current price of $30,557, it briefly crossed above $31,000 on Friday evening. The second-biggest crypto, Ethereum, has posted 7-day gains of 8.56% to trade at $1,889 as of Sunday evening.
The two crypto assets are not the only coins in the top 30 list to have posted massive growth this week. Several cryptocurrencies under this category have surged by more than 5%. The biggest gainers include Litecoin, which is up 13.78% to $88.16; Polkadot, which has seen an 8.9% surge to trade at $0.6717; Avalanche, which has rallied 15.17% to $13.43; Chainlink, which has appreciated by 17.89% to $6.21; and Bitcoin Cash, which is up 76.24% to $190.82.
Note that no top-30 coin has recorded losses this week.
Bank of England Reports Findings on its CBDC Experimental Project
While the focus was mainly on asset managers and the SEC, there were several developments suggesting steady crypto adoption around the globe. In the UK, the Bank of England released findings on its CBDC (central bank digital currency) trial project. In its report, the institution concluded that a CBDC pegged to the British pound would encourage innovation and help fulfill the needs of a digitalized society.
The trial project, titled Rosalind, examined over 30 use cases. The researchers explored how a CBDC could be used to make payments in several ways, including through QR codes and mobile wallets. However, it is not yet confirmed when the sterling-pegged CBDC will be issued.
Crypto Regulation in the United Kingdom
On Tuesday, members of the House of Lords passed the Financial Services and Markets Bill (FSMB). The bill contains proposed laws for crypto promotion and stablecoins.
The House of Commons already approved FSMB earlier this month. The bill will now move to the next stage, called the “Consideration of Amendments.” At this point, the two houses will debate the proposed regulations until they come to an agreement. After that, FSMB will be sent to King Charlie for final approval.
On Wednesday, reports emerged that Germany’s biggest bank, Deutsche Bank, had applied for a crypto custody platform permit with the Federal Supervisory Authority, the country’s finance regulator.
Meanwhile, in the United States, the Republican members of the House Financial Services Committee held a semiannual meeting to discuss monetary policy with the Federal Reserve Chair Jerome Powell. In his speech, the Central bank boss said Bitcoin and stablecoins could be here for a long time if a conducive regulatory environment is created.
Finally, blockchain company Ripple secured an in-principle payment permit from Singapore’s Monetary Authority. The firm CEO Brad Garlinghouse said Ripple was ready to provide payment solutions for people in the Asia Pacific region.