Bitcoin and crypto prices have swung wildly over the last week after a $300 billion sell-off sparked fears of a crypto crash. The bitcoin price has lost almost 10% since hitting an all-time high of $123,000 per bitcoin, with analysts speculating a bitcoin price game-changer could have already quietly happened. Now, as fears swirl around the future of the U.S. Wall Street giant BlackRock could be poised to extend its huge bitcoin exchange-traded fund (ETF) lead over its rivals. The U.S. Securities and Exchange Commission (SEC) last week authorized the use of in-kind creation and redemption mechanisms for bitcoin and crypto exchange-traded funds (ETFs).
” SEC chair Paul Atkins said in a statement.
The long-awaited move is part of the SEC’s overhaul of former chair Gary Gensler’s preference for crypto exchange-traded products to be cash only, which was perceived to be a barrier to efficiency for institutional market makers. “The biggest takeaway is symbolic. It means there is a new sheriff in town,” Eric Balchunas, senior ETF analyst at Bloomberg Intelligence, told the financial newswire. This dynamic could reinforce spot demand. While BlackRock’s bitcoin fund is expected to benefit from the change, the second-largest bitcoin fund, run by Fidelity, could see its market share shrink, according to NYDIG’s global head of research Greg Cipolaro. “It’s a new day at the SEC, and a key priority of my chairmanship is developing a fit-for-purpose regulatory framework for crypto asset markets,” SEC chair Paul Atkins said in a statement. ” Cipolaro wrote in a report.
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Tyler Winklevoss, one of Gemini’s billionaire co-founders alongside his brother Cameron, described the SEC’s action as a “manufactured parking ticket”, adding that the SEC had publicised its complaint before notifying Gemini. The exchange is embroiled separately in an ongoing bankruptcy spat over failed crypto lender Genesis Global Capital, to which Gemini is a major creditor. More than 200,000 users of Gemini’s Earn programme have funds locked up in Genesis’s estate due to a service arrangement between the two companies, for which Gemini said on Friday it would file a master claim of around US (My Source)$1.1 billion in assets.
The terms and conditions for the platform, known as Gemini Foundation, state it is operating under a subsidiary called Gemini Artemis. The penalties for falling foul of such rules include criminal prosecution and a maximum 21-year jail sentence, or a fine of 5 million Filipino pesos (S$121,040). A Gemini spokesperson declined to comment. The Philippines’ action came shortly before Malaysia’s securities regulator reprimanded another crypto exchange, Huobi Global, for operating “illegally” in the South-east Asian nation. “Gemini Trust Company’s lack of prior registration with the Commission makes their activities of offering and/or selling securities in the form of derivatives illegal in violation of the provisions of the securities regulation code (SRC),” the SEC said, referring to its local SRC.