Bitcoin and other major cryptocurrencies such as ethereum, XRP, and solana have seen significant growth in recent months, with the market preparing for a potential $17 trillion shakeup. The bitcoin price has increased nearly 200% over the past year, reaching heights not seen since early 2022. This surge is largely due to Wall Street’s race to introduce a spot bitcoin exchange-traded fund (ETF), although there are concerns that companies like BlackRock could inadvertently “destroy” bitcoin.
Recent speculation about bitcoin’s elusive founder has been ignited by an unexpected transaction. In response, Gary Gensler, the chair of the U.S. Securities and Exchange Commission (SEC), has issued a warning that bitcoin and crypto companies may not be adhering to federal securities laws. He stated that those offering crypto asset investments/services might not be complying with the law, including federal securities laws, and that investors in crypto asset securities should be aware they may be missing key information and other important protections related to their investment.
The SEC recently reiterated its “say no go to fomo” stance, advising people that just because others are investing in something, it doesn’t necessarily mean it’s the right opportunity for them. Some believe the SEC could be following a similar pattern to its approval of a bitcoin futures ETF in 2021, issuing a warning the day before approving the first U.S. bitcoin futures ETF.
There are currently around a dozen bitcoin spot ETF applications under consideration by the SEC from some of the world’s largest asset managers, including BlackRock and Fidelity. Crypto asset manager Grayscale is also hoping to convert its flagship bitcoin trust into a bitcoin spot ETF, following a legal victory that significantly increased expectations of success.
The race to introduce a fully-fledged spot bitcoin ETF to the market, a decade after the Winklevoss twins first attempted to do so, was initiated by BlackRock in June last year. Other Wall Street giants, collectively managing around $17 trillion on behalf of clients, quickly followed BlackRock’s lead. This has helped the bitcoin price surge in the second half of 2023 and has also boosted the price of other major cryptocurrencies including ethereum, XRP, and solana.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | Hailey Lennon, Casey Wagner, Gary Gensler |
| Companies | Grayscale, U.S. Securities and Exchange Commission, BlackRock, Brown Rudnick, Forbes |
| Currencies | Ethereum, XRP, Bitcoin, Solana |
| Securities | Fidelity, BlackRock BLK |
