Big Players Join Bitcoin Game
After Crypto Exchanges in US Torched
“You'll have cleared out all the suckers by then.” - Billy Ray Valentine, Trading Places
The US government and specifically, the SEC, has been working in earnest to clear out all of the “crypto” exchanges, the altcoin dealers, and all of the relatively new crypto enterprises on the US financial landscape. Because they’re dealing in “unregistered securities” of course.
Coinbase, Binance, Gemini, Kraken, and more were fined or sanctioned by the US government. Coinbase, the US’s largest exchange, was sued by the SEC, as was Gemini, the exchange founded by the Winklevoss twins. Kraken agreed to pay $30 million in fines and agreed to shut down its US staking program.
The US Securities and Exchange Commission (SEC), a financial watchdog, also accused Binance and founder Changpeng Zhao of operating a “web of deception”, charging him and his exchange with 13 offenses including violations of the US Securities Act and acting as an unregistered exchange.
It seems to be a concerted effort on the part of the SEC to flush out all exchanges who offer “altcoins” for trading on their platforms. Bitcoin was not mentioned in any of the SEC allegations. The SEC continues to recognize that Bitcoin is a decentralized commodity, unlike most, or all, altcoins.
And, At Almost the Same Time …
At the same time, or immediately after, the Big Boys of Trad Fi (traditional finance) entered the Bitcoin space.
BlackRock filed with the SEC for approval of a new form of Bitcoin ETF, a trust that would allow daily subscriptions and redemptions. A noticeable improvement over current futures ETF’s and Bitcoin trusts.
Fidelity, Charles Schwab, and Citadel Securities launched an exchange that will trade in four cryptocurrency assets, including Bitcoin. The exchange goes under the moniker “EDX.”
Deutsche Bank, with $1.4 trillion in assets, has applied for a digital assets license in Germany. The bank’s digital asset custody platform, slated to be launched incrementally, aims to offer a wide range of services to users. In addition to securely storing digital assets, the platform envisions facilitating the buying and selling of these assets through prime brokers, according to Finance Feeds.
BlackRock has approximately $10 trillion of assets under management. Trillion, with a T. To say they are a major player is an understatement. To say this is huge for Bitcoin is also an understatement.
Fidelity has $4.3 trillion under management. Another major player, to say the least. Deutsche Bank is one of the largest financial firms in Europe.
Bitcoin Price Surges With Big Guys in the Game
On Saturday, Bitcoin’s price was holding steady at around $26,700. By Wednesday, the price had soared to $30,600. That’s a rise of 14% in just a few days.
BlackRock submitted their application to the SEC on Thursday, June 15th. When the news got out, buyers started coming in, maybe realizing that the major players had decided it was time. Time to get into Bitcoin in a big way.
It almost seems like there was an effort to flush out the upstarts so that the Wall Street stalwarts could get in and take over. I’m not usually a conspiracy theorist, but that’s the way it looks.
There’s a feeling that if these big players didn’t know their applications would be approved, then why would they apply now? After all, 22 applications with the SEC to launch a spot Bitcoin ETF have already been turned down. When crypto exchanges are being sanctioned, fined, and shut down on an almost weekly basis. It’s like they knew something. And I’m not alone in this feeling.
“I have said countless times since FTX collapsed that Wall Street will be making a big move into the space and that regulators will likely choose them over our incumbent platforms.. And now Blackrock files for a Bitcoin ETF...” - Scott Melker.
“Bitcoin is bullish. Everything has changed. Whether you think the Wall Street intrusion is good or bad is irrelevant... it should help the price of Bitcoin.” - “Leyton,” via Twitter.
And this beauty, from Preston Pysh:
“I'm sorry, but after watching, Blackrock, Fidelity, Citadel, Schwab and now Deutsche Bank, all apply for Bitcoin ETFs, spot exchanges, etc. only a few days after the SEC drops a TRO on Binance and sues Coinbase... how can't you think this entire past year was a giant inside job?” - Preston Pysh.
Makes you wonder….
Quote of the Week:
On this day 5 years ago… “Today, we are having a FUNERAL for bitcoin.” - Melissa Lee, CNBC.
Bitcoin price: $6,027
Bitcoin’s Dominance in the Crypto Space Surges
Bitcoin’s hold on the market cap of all crypto assets has surged from 42% at the beginning of 2023 to over 51% now. Obviously, with the SEC stating that all other coins, pretty much, are securities, it appears that Bitcoin will emerge as the asset that can be traded on all major exchanges.
Bitcoin’s market cap, as of Wednesday evening, is over $585 billion.
That’s no joke. There is some serious money invested in Bitcoin.
And now the big players have entered the game. The traditional finance giants.
This should be exciting.
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Issue No. 114, June 23, 2023
Rick Mulvey is a CPA, crypto consultant, and frequent contributor to Bitcoin Magazine. He writes about all things Bitcoin, and yells at the Yankees and Giants. He also runs marathons and makes wine, neither professionally.