This week, the cryptocurrency industry made significant advances that will impact digital assets for many years. The most pivotal moment is that the U.S. SEC approves the first Bitcoin ETFs, including applications from BlackRock and Invesco. This crucial and powerful move allows investors to have exposure to Bitcoin without owning it, confirming Bitcoin’s status as a distinct asset class.
CoinShares, CS on Nasdaq Stockholm, is expanding internationally by buying Valkyrie Funds. This is a calculated step into the US market after the SEC approved Valkyrie’s Bitcoin ETFs. Coinbase partners with Yellow Card to enable USDC transactions on its Layer 2 platform in 20 African nations. This drastically reduces remittance fees, especially in Nigeria and South Africa.
The European Central Bank is researching blockchain technology for wholesale financial operations, following the industry’s shift toward DLT for cross-currency payments and securities transactions. OKX, a major cryptocurrency exchange, adds Solana-based Jito (JTO) and Bonk (BONK) currencies. Moreover, the company emphasizes innovation and community-generated assets with this shift. Now let’s discuss these news in detail one by one.
SEC Approves First Bitcoin ETFs
On Wednesday, the SEC approved the first Bitcoin-tracking exchange-traded funds (ETFs). This marks a major milestone for Bitcoin and the crypto sector. The SEC approved 11 requests, including those from BlackRock, Ark Investments/21Shares, Fidelity, Invesco, and VanEck. The new Bitcoin ETFs will alter the Bitcoin market by giving investors exposure to the cryptocurrency without owning it.
This is a major step toward recognizing Bitcoin as an asset class. Standard Chartered expects funds to rise $50 billion to $100 billion this year. Other estimates include $55 billion over five years. Bitcoin has risen 3% to $47,300 since the judgment, a 70% increase in the preceding few months. Bitcoin’s market capitalization exceeds $913 billion, indicating its growing financial importance.
CoinShares Expands into U.S. Market with Acquisition of Valkyrie Funds
CoinShares International Limited, listed on Nasdaq Stockholm as CS, aims to buy Valkyrie Funds LLC, an American digital asset manager known for its actively managed Bitcoin ETFs. The SEC’s clearance of Valkyrie’s spot Bitcoin ETF, The Valkyrie Bitcoin Fund (BRRR), prompted CoinShares to enter the U.S. market as part of their expansion strategy. CoinShares’ $4.5 billion AUM will increase by $110 million after the transaction.
Valkyrie’s ETF-derived AUM will explain this growth. They are the Valkyrie Bitcoin Fund (BRRR), Bitcoin and Ether Strategy ETF (BTF), and Bitcoin Miners ETF. CoinShares’ CEO, Jean-Marie Mognetti, stressed the company’s commitment to expanding its European successes to the US and becoming a global digital asset leader. Valkyrie Funds CEO Leah Wald expressed her delight about the purchase and combined progress in American digital asset investing. After a comprehensive analysis, legal agreements, and board approval, this strategic measure improves CoinShares’ position in the ever-changing digital asset business.
Coinbase Expands Crypto Access in Africa with Yellow Card Partnership
Coinbase, a major cryptocurrency exchange, is expanding into 20 African nations with Yellow Card, a stablecoin exchange. This expansion aims to boost blockchain adoption in poorer nations. The cooperation will allow many people to use the US Dollar Coin (USDC) on Coinbase’s Base decentralized Layer 2 (L2) platform. Transactions will be faster and cheaper. This action has a big impact, especially in Nigeria and South Africa, where cryptocurrency use is rising. USDC on Base replaces fiat currency and lowers transaction expenses.
Coinbase and Yellow Card’s partnership could revolutionize continental money transfers and business. The maximum fee for remittances, which make up a large part of developing nations’ GDP, will now be 2%, down from 3% to 6%. SMEs in emerging economies will benefit from faster processing of these transactions, which will allow them to access global financial institutions.
ECB Explores Blockchain for Wholesale Financial Transactions
ECB is exploring Distributed Ledger Technology (DLT), or blockchain, for wholesale financial transactions. TARGET Services facilitates wholesale transaction settlements for the Eurosystem, which wants to upgrade its settlement infrastructure to adapt to financial technology. The ECB stresses the importance of assessing how emerging technologies like DLT affect wholesale financial transaction resolution.
As the financial industry shows growing interest in Distributed Ledger Technology (DLT) for securities-related transactions and cross-currency payments, the exploration aims to ensure the uninterrupted settlement of wholesale transactions in central bank money. This technique boosts economic stability and monetary system confidence. The Eurosystem extensively consulted banking industry players on DLT applications in an early investigation. The central bank considered integrating distributed ledger technology (DLT) platforms with Eurosystem infrastructures or introducing SLT-compatible central bank money. The results showed that these responses are not exclusive.
OKX Expands Token Selection with Solana-Based Jito (JTO) and Bonk (BONK)
OKX, a leading cryptocurrency exchange and Web3 technology company, has expanded its spot market token selection. It added two Solana-based tokens, Jito (JTO) and Bonk (BONK). Jito (JTO), a liquid staking mechanism in the Solana ecosystem, gives SOL token holders a unique resolution. Jito allows users to stake SOL tokens and receive Jito Staked SOL (JitoSOL), making staking easier.
OKX is also launching Bonk (BONK), a cryptocurrency known for its humour and social consciousness. Bonk, from the Solana network, emphasizes community and enjoyment in cryptocurrencies. The JTO/USDT and BONK/USDT trading pairs make USDT stablecoin trading easier. The simultaneous deposit of JTO and BONK tokens allows users to withdraw their funds starting at 10:00 (UTC) on January 9, giving them full control over their funds. OKX’s move shows its commitment to extending its product line and adopting cutting-edge tokens in the fast-changing cryptocurrency industry.
