It wasn’t long ago (earlier this month) that the United States seemed to be pursuing a path of open hostility toward the cryptocurrency industry, seeming eager to kick out the original cryptocurrency institutions even as many other regions around the world opened their doors. for encryption integration.
This is seen, at times, as a hostile stance led by the SEC and aggressive enough for some crypto industry participants, including some influential figures, to speculate that it is an organized attempt to stop crypto development. In fact, this theory has a name: Operation Choke Point 2.0 (a reference to a 2013-2017 bank investigation operation by the US Department of Justice that was heavily criticized for going beyond due process).
It should be noted that there are also many observers who reject this theory. In addition, it is true that proponents of the idea of an anti-cryptocurrency campaign behind the scenes tend to overlook the very real wrongdoings that have been brought to light in some major crypto platforms, which, as in the case of an entity like FTX, have sometimes caused serious harm to users.
However, whichever side of this debate you fall on, what has become clear is that this month has seen a massive shift in the cryptocurrency landscape in the US, which has led to a huge shift in sentiment.
A bleak start to the month
June started ominously, with the SEC filing lawsuits against both Binance and Coinbase (ranked, respectively, as the world’s first and third largest crypto exchanges by average daily volume) and creating an outside impression of a regulator that was in on it. its way to war. encryption.
Possibly at least in part as a result of these events, the price of bitcoin plunged, dropping below the $25,000 mark after an impressive bull year so far. Moreover, public sentiment took a hit, as it began to appear that even as other regions of the world were seriously looking for ways to integrate cryptocurrencies, the United States, if the SEC’s position indicated a broader plan, was So ready. He cut himself off from the entire industry.
BlackRock changed the situation
Against this backdrop, the middle of the month saw BlackRock turn the whole situation on its head, as the world’s largest asset manager placed an order to run a Bitcoin ETF. While the SEC has approved bitcoin futures ETFs in the past, 28 applications for spot ETFs (from entities other than BlackRock) have been denied.
One couldn’t help but be amazed at BlackRock’s timing, as its application works directly with the growing impression of a regulatory environment at war with cryptocurrencies, and the application has raised questions that carry over into politics. BlackRock CEO Larry Fink, who is seen as a supporter of the Democratic Party, has been using his outsized influence to send a message not only to the SEC, but even to the Democratic administration itself, suggesting that bitcoin, and perhaps crypto more broadly, Isn’t it a sector that the United States should choose to withdraw from or push out?
85% of cryptocurrency trade takes place outside the United States
Capital goes where it is welcome
– Eric Voorhees June 23, 2023
Either way, observers note that of the 576 ETF applications BlackRock has submitted, all but one have been accepted, and the markets certainly got the message that, whatever the intent behind the scenes, bitcoin is now trading at more than $30,000.
Bitcoin price throughout the month of June.
Other companies follow
The newly buoyant sentiment has been boosted by a series of Bitcoin Spot ETF applications from other companies, with Fidelity, Invesco, Wisdom Tree and Valkyrie following BlackRock’s lead. Moreover, the second half of June saw the launch of EDX Markets, a crypto exchange backed by financial industry giants including Citadel, Fidelity, and Charles Schwab.
For several years, the narrative around Bitcoin has been just that Institutions are coming, And now suddenly, in an unexpected moment, this part of the text seemed to be pacing. There was also, recently, an intriguing development where the Securities and Exchange Commission (SEC) approved a bitcoin futures ETF for the first time, leading pundits to question the rationale behind approving leveraged futures contracts prior to a direct spot mechanism, and whether This could have been an indication of an incoming SEC.
Nuance of the Federal Reserve
A more nuanced approach to cryptocurrency was demonstrated in the United States, compared to the position demonstrated by the Securities and Exchange Commission, when Federal Reserve Chairman Jerome Powell stated last week, while testifying at the House Financial Services Committee, that: They have viability as an asset class He also explained that: “We see payment stablecoins as money.”
Additionally, on the topic of stablecoin issuances, Powell confirmed:
“We think it would be appropriate to have a very strong federal role in what happens in stablecoins in the future, leaving us with a weak role and allowing too much private money creation at the state level would be a mistake.”
The cryptocurrency industry has proven to be a volatile arena over the past decade or so, and it’s always been the case that moods can shift quickly, but the impact of BlackRock’s latest ETF implementation stands out in particular, suggesting the possibility of a long-term readjustment in institutional positions. America towards cryptocurrency.
It wasn’t long ago (earlier this month) that the United States seemed to be pursuing a path of open hostility toward the cryptocurrency industry, seeming eager to kick out the original cryptocurrency institutions even as many other regions around the world opened their doors. for encryption integration.
This is seen, at times, as a hostile stance led by the SEC and aggressive enough for some crypto industry participants, including some influential figures, to speculate that it is an organized attempt to stop crypto development. In fact, this theory has a name: Operation Choke Point 2.0 (a reference to a 2013-2017 bank investigation operation by the US Department of Justice that was heavily criticized for going beyond due process).
It should be noted that there are also many observers who reject this theory. In addition, it is true that proponents of the idea of an anti-cryptocurrency campaign behind the scenes tend to overlook the very real wrongdoings that have been brought to light in some major crypto platforms, which, as in the case of an entity like FTX, have sometimes caused serious harm to users.
However, whichever side of this debate you fall on, what has become clear is that this month has seen a massive shift in the cryptocurrency landscape in the US, which has led to a huge shift in sentiment.
A bleak start to the month
June started ominously, with the SEC filing lawsuits against both Binance and Coinbase (ranked, respectively, as the world’s first and third largest crypto exchanges by average daily volume) and creating an outside impression of a regulator that was in on it. its way to war. encryption.
Possibly at least in part as a result of these events, the price of bitcoin plunged, dropping below the $25,000 mark after an impressive bull year so far. Moreover, public sentiment took a hit, as it began to appear that even as other regions of the world were seriously looking for ways to integrate cryptocurrencies, the United States, if the SEC’s position indicated a broader plan, was So ready. He cut himself off from the entire industry.
BlackRock changed the situation
Against this backdrop, the middle of the month saw BlackRock turn the whole situation on its head, as the world’s largest asset manager placed an order to run a Bitcoin ETF. While the SEC has approved bitcoin futures ETFs in the past, 28 applications for spot ETFs (from entities other than BlackRock) have been denied.
One couldn’t help but be amazed at BlackRock’s timing, as its application works directly with the growing impression of a regulatory environment at war with cryptocurrencies, and the application has raised questions that carry over into politics. BlackRock CEO Larry Fink, who is seen as a supporter of the Democratic Party, has been using his outsized influence to send a message not only to the SEC, but even to the Democratic administration itself, suggesting that bitcoin, and perhaps crypto more broadly, Isn’t it a sector that the United States should choose to withdraw from or push out?
85% of cryptocurrency trade takes place outside the United States
Capital goes where it is welcome
– Eric Voorhees June 23, 2023
Either way, observers note that of the 576 ETF applications BlackRock has submitted, all but one have been accepted, and the markets certainly got the message that, whatever the intent behind the scenes, bitcoin is now trading at more than $30,000.
Bitcoin price throughout the month of June.
Other companies follow
The newly buoyant sentiment has been bolstered by a series of Bitcoin spot ETF applications from other companies, with Fidelity, Invesco, Wisdom Tree and Valkyrie following BlackRock’s lead. Moreover, the second half of June saw the launch of EDX Markets, a crypto exchange backed by financial industry giants including Citadel, Fidelity, and Charles Schwab.
For several years, the narrative around Bitcoin has been just that Institutions are coming, And now suddenly, in an unexpected moment, this part of the text seemed to be pacing. There was also, recently, an intriguing development where the Securities and Exchange Commission (SEC) approved a bitcoin futures ETF for the first time, leading pundits to question the rationale behind approving leveraged futures contracts prior to a direct spot mechanism, and whether This could have been an indication of an incoming SEC.
Nuance of the Federal Reserve
A more nuanced approach to crypto was demonstrated in the US, compared to the position demonstrated by the Securities and Exchange Commission, when Federal Reserve Chairman Jerome Powell stated last week, while testifying at the House Financial Services Committee, that: They have viability as an asset class. He also explained that: “We see payment stablecoins as money.”
Additionally, on the topic of stablecoin issuances, Powell confirmed:
“We think it would be appropriate to have a very strong federal role in what happens in stablecoins in the future, leaving us with a weak role and allowing too much private money creation at the state level would be a mistake.”
The cryptocurrency industry has proven to be a volatile arena over the past decade or so, and it’s always been the case that moods can change quickly, but the impact of BlackRock’s latest ETF implementation stands out in particular, suggesting the possibility of a long-term readjustment in institutional positions. America towards cryptocurrency.