The bid for the first Bitcoin (BTC) spot exchange-traded fund (ETF) in the United States is gaining traction following BlackRock’s recent application, with both former applicants and new players seeking permission from the U.S. Securities and Exchange Commission (SEC) to list a crypto ETF. Although it’s unclear whether the SEC will finally allow a Bitcoin ETF, BlackRock’s initiative appears to have “breathed new life into the race” amid the ongoing crackdown on the crypto industry.
In addition to the potential Bitcoin ETF, other notable developments in the crypto industry include the backing of a newly launched crypto exchange by Wall Street titans, as well as the ongoing efforts of crypto pioneers to overcome regulatory challenges and expand their operations.
The newly launched crypto exchange, EDX Markets, has gained support from prominent financial institutions such as Citadel Securities, Fidelity Investments, Paradigm, Sequoia Capital, and Charles Schwab. Currently, the exchange supports trading only four cryptocurrencies: Bitcoin, Ether (ETH), Litecoin (LTC), and Bitcoin Cash (BCH). However, EDX has plans to introduce EDX Clearing, a clearinghouse to settle trades executed on the EDX Markets platform. This entry into the market by EDX Markets demonstrates the increasing interest of traditional financial institutions in the crypto space.
Following BlackRock’s application for a Bitcoin spot ETF, at least three other investment firms have filed for similar products with the SEC. Asset management fund WisdomTree is seeking permission to list its “WisdomTree Bitcoin Trust” for a third time, while global investment manager Invesco has “reactivated” its application for a similar product. Valkyrie Investments has also recently submitted a request for a Bitcoin ETF. Furthermore, there are rumors that Fidelity Investments, a multitrillion-dollar fund manager, may also be considering entering the race for a Bitcoin ETF. While the SEC has not yet approved a single spot Bitcoin ETF product, the renewed interest sparked by BlackRock’s application has created optimism among market participants.
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CleanSpark, a crypto mining firm, has continued its aggressive expansion in the U.S. by acquiring two Bitcoin mining facilities in a $9.3 million cash deal. This acquisition will enable CleanSpark to add about one exahash per second (EH/s) to its hash rate, bringing it closer to its target of 16 EH/s by the end of 2023. Despite the current bear market and the decline in BTC mining profitability, CleanSpark remains committed to its expansion plans and aims to capitalize on future market opportunities.
Gemini, a cryptocurrency exchange, has announced plans to expand into the Asia-Pacific (APAC) region. The exchange intends to increase its staff at the Singapore office and establish an engineering division in India. Gemini believes that APAC will be a key driver of the next wave of growth for the crypto industry. This expansion into new markets comes as many crypto firms face regulatory challenges in the United States and seek opportunities in other jurisdictions.
In conclusion, the race for a Bitcoin spot ETF in the United States has intensified following BlackRock’s application, attracting both former applicants and new players. The involvement of Wall Street giants in the crypto industry, as evidenced by their backing of EDX Markets, demonstrates the increasing mainstream acceptance of cryptocurrencies. Meanwhile, crypto pioneers such as Binance.US and Gemini are navigating regulatory challenges and expanding their operations to ensure their survival and future growth. Additionally, CleanSpark’s aggressive infrastructure expansion and Gemini’s plans for expansion in the APAC region highlight the continued resilience and potential of the crypto industry.
