June 24, 2023
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5 min read
Bitcoin, Tech Stocks, and the Emergence of Major Financial Players in Crypto: A Weekly Overview
On June 14th, the U.S. Federal Reserve opted against increasing the interest rate. Nonetheless, Chairman Jerome Powell had a stern warning for the media: the battle against inflation is far from over. It raises a significant question, does the prospect of "higher for longer" hint at an extended period of adverse conditions for Bitcoin and tech stocks?
Let's first review the past week. Driven by a steady influx of large financial institutions entering the crypto space, Bitcoin saw a 20% surge. As Bitcoin thrives, are altcoins keeping up? And are we seeing the commencement of a new weekly cycle for Bitcoin?
The past week witnessed an impressive move from BlackRock, the world's largest asset manager, with 9 trillion dollars in management, even surpassing Vanguard and Fidelity. They announced a submitted application for a spot Bitcoin ETF for the U.S. market, the iShares Bitcoin Trust.
Following BlackRock were other institutions like Investco, Wisdom Tree, and Bitwise, all filing similar ETF applications. Together with Ark Invest, which already had an application underway, these institutions are now eagerly awaiting the SEC's response.
Interestingly, BlackRock's announcement appears to have signaled that the crypto market is open for business for major financial institutions.
This week saw the launch of EDX Markets, an institutional crypto exchange. It offers firms from both the crypto and traditional financial world the ability to trade a limited selection of crypto assets - initially Bitcoin, Ether, Litecoin, and Bitcoin Cash.
Jamil Nazarali (right) is CEO of EDX Markets.
ANDREW HARRER—BLOOMBERG VIA GETTY IMAGES
In Europe, Deutsche Bank in Germany applied for a license to hold crypto assets for its clients. In France, CACEIS Bank, the asset servicing arm of Crédit Agricole and Santander, has been granted a similar license. In addition, Banco Santander published an educational piece on Bitcoin's lightning network this week.
SAP, the world's largest non-U.S. software company, wrote a blog this week about using stablecoins to cheaply and quickly send money abroad.
In summary, the unfolding story in the crypto space involves major financial players, increasing institutional interest, and significant developments that are shaping the future of Bitcoin and tech stocks as we navigate inflationary pressures. The ongoing fight against inflation and the crypto market's response make for an exciting narrative in the financial world.