Bitcoin Drops Below $68K: Bitcoin (BTC) and ether (ETH) were headed lower on Tuesday following brief but steep price spikes last week. Earlier last week, Bitcoin was trading above $70,000, but it temporarily fell below $68,000. On the other hand, hopes for the green light of spot ether ETFs caused the price of ether to jump about 25% in just one day. Despite receiving approval from regulators, the product’s boom was limited in duration.
The use of cryptocurrencies by U.S. presidential candidates is on the rise; Craig Wright has come under fire from a British judge for posing as Satoshi Nakamoto, Bitcoin’s founder; and a former CEO of FTX has been arrested.
Regulators Set The Stage For Spot Ether ETFs
Unexpectedly, the U.S. Securities and Exchange Commission (SEC) cleared the way for spot ether ETFs to be listed on U.S. exchanges on Thursday. With a market worth second only to Bitcoin, the Ethereum network’s native cryptocurrency, Ether, is a major player in the cryptocurrency industry.
Even while the SEC’s ruling signified a major change in regulation. It may still be months before companies like Fidelity, Grayscale, and BlackRock (BLK) list these ETFs. According to Galaxy Digital, the items may have to wait until July or August for the approval of their S-1 registration files.
Also Read: Five Ethereum ETFs Launch on CBOE July 23rd
Whether ether ETFs will attract demand comparable to the historic launch of U.S. spot bitcoin ETFs—which. According to Farside Investors, have accumulated over $13.5 billion in inflows—is a critical question that needs answering before they get the final approval. Some are hopeful that institutional and individual investors would flock to the new listings, but others are wary because the ether market is smaller and less well-known than Bitcoin’s. The fact that investors cannot stake ether held by ETFs is another major drawback.
House Moves On Crypto Regulation Bill
The cryptocurrency industry won big in Washington last week when the Financial Innovation. Technology for the 21st Century Act (FIT21) was overwhelmingly approved. The CFTC would become the primary regulator of digital assets under this law, as it would be given exclusive authority over the spot and cash markets for digital commodities.
Digital assets that use non-decentralized blockchains would be regulated by the SEC. The crypto sector has been advocating for this separation of powers in regulation for quite some time. The measure has a tough road ahead of it in the Senate, where support is doubtful, despite a solid 279-136 vote in the House. Due to what he saw as inadequate safeguards for investors and consumers, Joe Biden, the president, was opposed to FIT21.
Former President Trump Doubles Down on Crypto Endorsement
To earn Libertarian support and become the crypto-supporting candidate, Donald Trump that Ross Ulbricht’s sentence be eased. In his life sentence, Ulbricht is spending time operating the Silk Road internet marketplace, where users could buy narcotics and other criminal goods using Bitcoin. Trump promised to commute Ross Ulbricht’s sentence “on day one” if the Libertarian Party convention voted for him. Eleven years are now behind him. We will return him home.
Trump is trying to eliminate the threat of third-party candidates like Robert F. Kennedy Jr. by expanding his support base ahead of his rematch with President Joe Biden in November. Considering Trump has previously stated his strong preference for the US dollar over Bitcoin, his public acceptance of crypto is quite a change.
Judge Rules That Craig Wright is a Fraud
A judge in the United Kingdom’s High Court has ruled that computer scientist Craig Wright committed massive. Fraud and lied on a grand scale in his quest to establish his identity as Satoshi Nakamoto, as reported by WIRED. Wright exploited the courts to commit fraud and falsify many papers to bolster his allegations. According to Justice James Mellor’s comprehensive decision published on May 20.
Mellor expressed his complete satisfaction with Dr. Wright’s vast and repetitive lying to the court in his writing. To prevent Wright from suing other Bitcoin developers and others because he isn’t the cryptocurrency’s originator. The Crypto Open Patent Alliance (COPA) began the six-week trial. The verdict ends their six-week litigation. Wright may still want to appeal, but he can’t do it now because his credibility is shot.
What to Expect in the Markets This Week
Crypto market watchers and authorities will closely monitor the Senate’s FIT21 proposal.. Another executive from the now-defunct cryptocurrency exchange FTX has also received a prison term. Former co-CEO of the exchange’s Bahamian firm Ryan Salame got a 90-month prison term for his part in violating campaign finance laws and conspiring to run an unofficial money transmitter. There was a major development on Tuesday as well.
Riot Platforms (RIOT), a provider of bitcoin infrastructure, has announced. Its intention to purchase Bitfarms, a bitcoin mining firm, in a mixed-stock and cash transaction. At $2.30 per share, a premium of 24% above its one-month volume-weighted average share price as of May 24. Riot is offering to acquire Bitfarm for $950 million in total equity. With its 9.25% stake in Bitfarms increased, Riot claims the merger will make it the “world’s largest trading bitcoin miner.
Also Read: Btcnewz.co.uk
