BitcoinBTC, along with other major cryptocurrencies—including ethereum and XRPXRP—have been rocked by the “cataclysmic” U.S. fiscal situation this year that could be about to get a lot worse.
The bitcoin price has struggled this year amid a growing U.S. “war” on crypto, though a looming $17.7 trillion earthquake could be about to hit the bitcoin, ethereum, XRP and crypto market.
Now, as the U.S. dollar teeters on the verge of “collapse,” Wall Street giants including the world’s largest asset manager BlackRock have been given a tacit “green light” to “revolutionize finance” with bitcoin and crypto.
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On Friday, Reuters reported the U.S. Securities and Exchange Commission (SEC) will not appeal a recent court ruling that found it was wrong to reject an application from crypto asset manager Grayscale to create a spot bitcoin exchange-traded fund (ETF), citing an anonymous source.
In August, a U.S. court ruled the SEC was wrong to reject Grayscale’s proposed bitcoin ETF, finding the SEC’s argument that the bitcoin market can be manipulated is flawed because the agency has previously approved bitcoin futures-based ETFs with fraud prevention measures.
“This lack of appeal from the SEC is undoubtedly a key moment for the crypto industry, and given the pressure the SEC has faced from the courts and the U.S. House financial services committee, it is a question of when, not if, this approval gets the green light,” Philippe Bekhazi, the chief executive of crypto market maker XBTO, said in emailed comments.
Alongside Greyscale, asset managers that look after a combined $17.7 trillion on behalf of clients such as BlackRock, Fidelity and Invesco have filed for spot bitcoin ETFs, with the SEC facing a deadline of early next year to approve or deny them.
“When this happens, it will open up new possibilities for a number of sovereign, pension funds, IRAs and 401k as well as other institutions who, before this point, may not have had access to digital asset investment opportunities,” Bekhazi said.
“It’s quite possible we will see this approval come through in the first quarter of next year, once the regulator completes their full assessment. From there, it’s likely we’ll see a number of other applications get approved in 2024, which will be a positive step forward for the institutional adoption of crypto.”
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Earlier this year, BlackRock’s legendary chief executive Larry Fink, who shocked the world when he announced a surprise crypto flip, said he expects bitcoin and crypto to “transcend” traditional currencies, including the U.S. dollar, and “revolutionize finance.”
“Importantly, because it’s so international, [crypto is] going to transcend any one currency in currency valuation,” Fink said.
Earlier, he said bitcoin and crypto could “revolutionize finance” in a dramatic reversal from his previous position of bitcoin being nothing more than an “index of money laundering,” told CNBC.
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