(Translated)How did huge companies restore confidence in “Bitcoin” after the cryptocurrency setback?

July 18, 2023


the asset management giant “BlackRock”, which wants to distribute a regulated product based on cryptocurrency, which in turn is an asset in itself.

The newspaper said, in its report, which was translated by “Arabi 21”, that behind the setbacks that were announced through the media and that the “Binance” platform and other major crypto-asset exchanges were exposed to, a more secretive but more structural revolution looms on the horizon for the future of Bitcoin. on bitcoin .

According to the newspaper; These funds track the performance of a particular asset or stock index as closely as possible, to gain exposure to different markets. If allowed, such a product would allow BlackRock clients to easily invest in cryptocurrencies without having to hold them directly.

The newspaper highlighted that given BlackRock’s weight in the financial sector, giving the green light by US stock market watchers would pave the way for a much larger crypto market, through a regulated product listed on the Nasdaq Stock Exchange.

And the newspaper indicated that so far; The SEC has always refused to allow “spot” ETFs, that is, direct exposure to bitcoin, on the grounds that the risks of fraud or market manipulation are too great.

According to a 2022 Nasdaq study, three-quarters of financial advisors said they would be willing to invest their clients’ assets in bitcoin if there was a “spot (cash)” ETF on the US exchange. After BlackRock, other companies such as Invesco and Wisdom Tree will reapply for ETF registration with the Securities and Exchange Commission.

progress in Europe
The newspaper believed that the time has come for these major players in the so-called “traditional” finance. The demands come as major cryptocurrency exchanges such as Binance and Coinbase are in the crosshairs of the Securities and Exchange Commission, which accuses them of violating securities regulations. And in the document filed with the Securities and Exchange Commission; BlackRock wrote that this type of product “would save people from going through trading platforms”. BlackRock will rely on Coinbase, which it has already worked with for two years, for a portion of the “save” money.

The pace of other institutional owners in this sector has accelerated. Thus, Fidelity Digital Assets, Charles Schwab, Paradigm, SICO Capital and Citadel Scores are backing EdX Markets, a new trading platform launched last Tuesday that plays on the argument of better regulatory compliance and on the promise to “bring the best of traditional finance to the cryptocurrency markets.”

in Europe; Some players are also making strides in this area. Deutsche Bank submitted a license application to the German regulator this week to offer digital asset services in Germany. According to an expert in the sector: “Many French banks are also paying close attention to all these issues with real projects.”

It is the most well-known cryptocurrency and is also the only one that has distanced itself from the regulatory debate that is currently “ripping” the sector in the US. in the meantime; SEC Chairman Gary Gensler still cites bitcoin as an exception, due to its history and the decentralized nature of its exchange network.