Tuesday, July 16, 2024

Institutions move back into crypto, Binance.US briefly sees a six figure Bitcoin price, and Jerome Powell says crypto is here to stay. These stories and more, this week in crypto.

Bitcoin Hits 12 Months High

Bitcoin hit its highest level in over a year as major financial institutions are signaling moves to embrace crypto. Market sentiment has been high since BlackRock applied for what would be the first ever spot bitcoin ETF in the US. Several similar applications shortly followed from such notable large investors as Invesco, WisdomTree, and Bitwise.

Bitcoin Price Goes Insane on Binance.US

The price of Bitcoin briefly touched a whopping $138,000 on Binance.US as limited liquidity and decreasing market depth have scared away investors after recent regulatory challenges. Meanwhile, Binance.US filed a motion to counter the allegations made by the SEC in its legal battle, denying mishandling of user funds and calling out the regulator for its inconsistent statements.

Spot Bitcoin ETF Moves One Step Closer

The SEC has approved the first leveraged Bitcoin futures ETF in the US. The new ETF is the first of its kind, doubling investor exposure by leveraging half of the cost of its invested contracts. The move could signal that we’re a step closer to an eagerly awaited spot Bitcoin ETF approval. The new ETF is scheduled to launch on CBOE on Tuesday.

New Crypto Exchange Backed by Wall Street

A new crypto exchange, EDX Markets has launched with support from such Wall Street giants as Charles Schwab, Citadel Securities, Fidelity, and Sequoia Capital. Acting as a noncustodial exchange, it allows firms to execute crypto trades while using the platform to agree on prices without directly handling customer crypto. A clearing house for settlement is planned for later this year.

Deutsche Bank Files for Crypto Custody

Deutsche Bank filed an application with Germany’s Federal Financial Supervisory Authority to obtain a license for providing digital asset custody services. The bank confirmed that they are building their digital assets and custody business. If approved, the license will allow the German lender to offer secure storage and management of digital assets on behalf of institutional and individual investors.

Do Kwon Gets 4 Months in Prison

Do Kwon, the founder of crashed stablecoin, TerraUSD, was sentenced to four months in prison by a Montenegro court for forging travel documents. The sentence includes the 85 days he has already spent in detention after he was arrested at the airport. Kwon’s next steps are uncertain as both the US and South Korea both seek his extradition for fraud charges.

Stablecoin Laws To Be Approved by UK

The UK’s Financial Services and Markets Bill that specifies crypto as a regulated activity and stablecoins as a means of payment has been approved by the UK Parliament’s upper house, allowing it to proceed to its final stages. Spanning over 340 pages, the wide-ranging bill was introduced to take advantage of Brexit freedoms to give regulators more power in the sector.

Powell Says Crypto is Here to Stay

US Federal Reserve Chair, Jerome Powell, said crypto has staying power as an asset class. Testifying before lawmakers, he further added that they see stablecoins as a form of money. Powell indicated that inflation has a long way to go before falling to the Fed’s mandated goal of 2 percent, but that the central bank’s policy is likely to adjust as inflation tapers down.

That’s what’s happened this week in crypto, see you next week.

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