This week saw Gemini make the news by filing a lawsuit against Digital Currency Group (DCG) for fraud. Regulatory matters continue to be a global concern, but institutional acceptance of cryptocurrencies is growing. BlackRock has submitted a renewed application for a bitcoin ETF, and JPMorgan has outlined their skepticism about the SEC’s approval of physically backed bitcoin ETFs.
Gemini co-founder Cameron Winklevoss issued an ultimatum to DCG and Barry Silbert, demanding a forbearance payment of $275 million by July 21. Further debt tranches of $355 million within two years and $835 million within five years were also outlined. Failure to comply with these repayment terms may result in a lawsuit against DCG. Shortly after issuing the ultimatum, Gemini sued DCG and Silbert for fraud.
BlackRock’s recent bitcoin ETF application triggered a wave of bullish sentiments, but met a roadblock with the SEC. However, BlackRock has now submitted a fresh proposal for the ETF after the SEC pointed out issues with the initial filing. If approved, this ETF would be the first to receive regulatory authorization. BlackRock and Coinbase have joined forces for this ETF project, with Coinbase responsible for custody services and providing spot market data for the ETF.
JPMorgan strategists have prepared a report explaining why they are skeptical about approving a spot bitcoin ETF. They emphasize the subdued market response to similar ETFs in other regions and the differences between gold and bitcoin as investment assets.
Institutional interest in cryptocurrencies, particularly bitcoin, has been high. There has been a significant increase in bitcoin being held on over-the-counter (OTC) trading desks, indicating a growing interest among institutional investors. Additionally, there has been a noteworthy 50% increase in bitcoin transactions over the past year.
Regulatory efforts took center stage this week, with Singapore, South Africa, Korea, and Taiwan making headlines. The Monetary Authority of Singapore (MAS) devised a plan that requires cryptocurrency exchanges and other market participants in the region to segregate customer funds from their capital. South Africa has issued a mandate requiring all crypto exchanges to obtain licenses by the end of November. South Korean financial authorities are launching a research project to improve cryptocurrency regulations and ensure user protection in the crypto market.
The continued tension between Gemini and DCG, the submission of a renewed bitcoin ETF application by BlackRock, and the regulatory developments in Singapore, South Africa, Korea, and Taiwan, have made this week’s crypto news eventful. Institutional interest in cryptocurrencies is rising, indicating a growing acceptance of digital assets.
