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CRYPTO DIGEST: BlackRock’s ETF, Bitcoin Above $30K, Deutsche Bank Joins the Space, EDX Markets Launch, Binance-SEC Agreement

Bitcoin Banks Blackrock
By Nicolo Finazzi
Nicolo Finazzi

7 Min

June 22, 2023

BlackRock Files for Bitcoin ETF with Coinbase as Custodian

Key Highlights:

  • BlackRock files for a spot Bitcoin ETF, signaling its entry into the crypto market
  • Coinbase was chosen as the custodian for the proposed ETF, ensuring secure storage of Bitcoin
  • Approval of the ETF by the SEC could provide investors with regulated exposure to Bitcoin

BlackRock, the global investment management firm, has submitted an application for a spot Bitcoin exchange-traded fund (ETF) with Coinbase acting as the cryptocurrency custodian. This strategic move reflects BlackRock's growing interest in the crypto market and underscores the increasing acceptance of Bitcoin among institutional investors.

By filing for a Bitcoin ETF, BlackRock aims to offer investors a regulated avenue to gain exposure to Bitcoin's potential without directly holding the cryptocurrency. The ETF would track the price of Bitcoin, enabling investors to participate in its performance through traditional investment channels.

Partnering with Coinbase, one of the leading crypto exchanges and custodians, enhances the credibility and security of the proposed ETF. Coinbase's robust infrastructure and track record as a trusted custodian provide investors with confidence in the custody of their Bitcoin holdings.

If the Securities and Exchange Commission (SEC) approves the BlackRock Bitcoin ETF, it would mark a significant milestone in the integration of cryptocurrencies into the traditional financial system. It could also pave the way for more institutional investors to enter the crypto space, potentially driving further adoption and market growth. Overall, the filing of a spot Bitcoin ETF by BlackRock demonstrates the industry's evolution and the increasing interest from mainstream financial institutions.

Bitcoin Breaks $30,000 Mark Amid TradFi Interest

Key Highlights:

  • Bitcoin surpasses the $30,000 mark, experiencing a significant rally.
  • Traditional finance shows a renewed interest in the cryptocurrency market.
  • Bitcoin's resilience and ability to bounce back are highlighted by its recent surge.

Bitcoin has witnessed a remarkable rally in recent days, breaking through the $30,000 barrier and hitting a six-week high. This surge in Bitcoin's price comes as traditional finance shows renewed interest in the cryptocurrency market.

The recent price movement demonstrates the resilience of Bitcoin, even in the face of market volatility. Despite facing periodic downturns, Bitcoin has consistently bounced back, attracting investors seeking both short-term gains and long-term growth potential.

The renewed interest from traditional finance and renowned companies such as BlackRock is a significant development for the cryptocurrency market, as it indicates a broader acceptance of Bitcoin and other digital assets. Institutional investors and large financial firms are increasingly recognizing the value and potential of cryptocurrencies as an asset class.

Investors and industry observers are closely monitoring Bitcoin's trajectory, which could set the tone for the broader cryptocurrency market.

Deutsche Bank Applies for Digital Asset Custody License

Key Highlights:

  • Deutsche Bank expresses interest in entering the cryptocurrency market.
  • Application filed for digital asset custody license.
  • Just days after BlackRock enters the market, DB’s move signals a potential shift towards embracing cryptocurrencies in traditional finance.

Deutsche Bank, one of the world's largest financial institutions with $1.4 trillion in assets managed, is making significant strides in entering the cryptocurrency space. The bank has submitted applications for a digital asset custody platform and is actively exploring opportunities within the crypto market.

Just days after BlackRock’s ETF news, this Deutsche Bank's move reflects traditional financial institutions' growing acceptance and adoption of cryptocurrencies. With increasing interest from institutional investors and a surge in demand for digital assets, major banks like Deutsche Bank are recognizing the potential of cryptocurrencies to transform the financial landscape.

By applying for a digital asset custody service, the Bank aims to offer secure storage and management services for cryptocurrencies. This move not only signifies the bank's commitment to exploring new technologies but also demonstrates its confidence in the long-term viability and value of digital assets.

Deutsche Bank's initiatives in the cryptocurrency space will likely shape the future of financial services and pave the way for other financial institutions to follow.

Citadel Securities, Fidelity, Charles Schwab Launch New Crypto Exchange

Key Highlights:

  • EDX Markets enters the cryptocurrency exchange industry as an institution-only platform.
  • Backed by influential Wall Street institutions: Fidelity Investments, Charles Schwab, and Citadel Securities.
  • Provides a “non-custodial” model, meaning that it doesn’t hold clients’ digital assets during trading.

The newly announced EDX Markets has emerged as a prominent player in the cryptocurrency exchange industry, boasting support from influential financial institutions on Wall Street. Backed by Fidelity InvestmentsCharles Schwab, and Citadel Securities, EDX Markets has been presented as an institutional-only exchange that aims to bring a new level of credibility and expertise to the world of digital asset trading.

The platform will offer trading for four cryptocurrencies: Bitcoin, Ethereum, Litecoin, and Bitcoin Cash, four cryptocurrencies that are among those not named as securities by the SEC. Unlike existing crypto platforms such as Coinbase or Binance, EDX offers a “non-custodial” model, meaning that it doesn’t hold clients’ digital assets during trading. Instead, it is working with a third-party custodian, according to Chief Executive Officer Jamil Nazarali.

The involvement of renowned financial powerhouses underscores the increasing recognition of cryptocurrencies as a legitimate asset class. Fidelity Investments, a leading asset management firm, Charles Schwab, a prominent brokerage company, and Citadel Securities, a major market-maker, joining forces to back EDX Markets is a testament to the disruptive potential and future growth of cryptocurrencies.

As traditional finance and digital assets converge, the entry of EDX Markets into the crypto exchange landscape paves the way for mainstream adoption.

U.S. Court Approves Binance-SEC Agreement

Key Highlights:

  • U.S. court approves agreement between Binance.US, Binance, and the SEC.
  • Binance.US employees to have exclusive access to client funds during litigation.
  • U.S.-based customers can still withdraw funds; no freeze on assets.

In a significant development for the cryptocurrency industry, a U.S. district court has approved an agreement between Binance and the U.S. Securities and Exchange Commission (SEC). The agreement dismisses a previous temporary restraining order and ensures the protection of client funds during the ongoing litigation.

“We are pleased to inform you that the Court did not grant the SEC’s request for a TRO and freeze of assets on our platform which was clearly unjustified by both the facts and the law,” Binance.US said on Twitter.

Under the approved agreement, only Binance.US employees will have access to client funds until the resolution of the legal proceedings. This measure aims to safeguard the interests of customers and maintain the integrity of the exchange's operations. Importantly, U.S.-based customers can continue to withdraw funds throughout this period, ensuring uninterrupted access to their assets.

Furthermore, the agreement establishes strict limitations on Binance global officials' access to sensitive information. They are barred from obtaining private keys of wallets, hardware wallets, or root access to Binance.US's Amazon Web Services tools. This provision reinforces the commitment to security and accountability within the organization.

Binance emphatically denies any allegations of mismanagement or misuse of customer assets put forth by the SEC. The absence of evidence presented by the SEC regarding such claims further supports the exchange's stance.

This approval by the U.S. court and the subsequent agreement marks a crucial step forward in resolving the ongoing dispute between Binance and the SEC. The focus remains on protecting the interests of customers and ensuring a transparent and compliant operation within the cryptocurrency exchange industry.