- Bitcoin surged to an all time high of $72,000 Monday morning as the spot bitcoin ETF market activity remained strong.
- MicroStrategy’s stock soared after it bought bitcoins, but Blackrock’s bitcoin spot ETF, IBIT, continues to receive large inflows.
- Two SEC commissioners questioned, after the SEC announced that it had reached a settlement agreement with the former crypto exchange ShapeShift in relation to the U.S. industry’s lack of clarity regarding regulatory issues.
- Federal Reserve chairman Jerome Powell said in a hearing before Congress that the central bank was not close to implementing its own digital currency.
- The Dencun update for Ethereum is set to take place this week.
What happened in the crypto markets last week?
The price of Bitcoin ( BTC ) has soared to another milestone. It crossed $72,000 today on the strength of its price surge from the previous week, when it reached two new all-time records. While ether steadily climbed past $4,000, investors are optimistic about lower fees following the much-anticipated Dencun update for the Etherum Network on Wednesday. This upgrade will improve the speed of transaction processing at scale.
Two SEC Commissioners expressed their disappointment with the way the crypto industry was regulated in the U.S. Federal Reserve Chairman Jerome Powell stated that no plans are currently being made to introduce a Central Bank Digital Currency for the U.S. Dollar.
Bitcoin Hits New All-Time Record on the Back of ETFs
Bitcoin’s recent rise to several all-time highest has been attributed to the launch of bitcoin spot ETFs and the upcoming halfing events. After each high, bitcoin’s largest cryptocurrency fell dramatically before recovering some of its gains.
Bitcoin surpassed $72,000 on Monday. This could be due to optimism about the UK’s regulator softening its stance towards allowing cryptocurrency Exchange-Traded Notes in the nation.
The Financial Conduct Authority has stated that it will not oppose requests by Recognised Exchanges to establish a UK-listed market segment for Cryptoasset-backed Exchange Traded notes (cETNs). The London Stock Exchange said that these products are only available to professional investors such as credit and investment institutions who have been authorised by the Financial Conduct Authority or other regulatory bodies to trade in financial markets.
Blackrock’s Bitcoin ETF and MircoStrategy have been big Bitcoin buyers
MicroStrategy, however, announced on Monday that they had acquired another 12,000 Bitcoins, bringing their total to 205,000.
Grayscale’s offering has higher fees of 1.5% than the other nine spot bitcoin ETFs currently on the market. Grayscale Bitcoin Trust’s 1.5% fee is higher than any of the nine other spot bitcoin ETFs on the market.
Bitcoin price driving gains for some crypto-related stocks
MicroStrategy’s gamble on bitcoin has paid off spectacularly. MicroStrategy shares were trading up around 16% in the early afternoon of Monday. Stocks are up over 600% in the last year and have risen 140% from the beginning of 2024.
Michael Saylor is the executive chairman of MircoStrategy. He believes that shares in this company offer investors a way to gain exposure to bitcoin.
How can you protect yourself from the downside if you are a bitcoin enthusiast and want to purchase bitcoins at their all-time-high? MicroStrategy has sold $800,000,000 in debt, and now we hold $12-13 billion worth of bitcoins on our balance sheet. If you are a bitcoin maximumist, and love bitcoin, and want to keep it forever, ETFs will charge you 25 basis point, MicroStrategy will accrete–we give you a return on your shares, in a tax efficient manner. “7
The bitcoin rally is also benefiting Coinbase ( Coin). The cryptocurrency exchange has seen a rise of more than 15 percent in just five days, and a gain of about 70 percent year-to date.
SEC Commissioners Critiquing Agency’s Cryptostance
Commissioners of the Securities and Exchange Commission (SEC), who oversees trading in digital assets, have criticised its action against Shapeshift.
ShapeShift paid $275,000 to settle allegations that it facilitated trades in unspecified digital securities. SEC Commissioners Hester P. Peirce, and Mark Uyeda, questioned this lack of clarity about which tokens are considered securities. They said the uncertainty makes it difficult for crypto companies to determine regulatory compliance. This could stifle innovation.
Peirce & Uyeda stated that “cases like these do not protect the investors, they are a source of intimidation for innovators and entrepreneurs.” We respectfully disagree. “9
This statement is a reflection of the frustration expressed by companies like Kraken and Cobase who have been sued for running unregistered exchanges.
Fed Chairman Powell says CBDC is not a concern
During his testimony to Congress last week, Federal Reserve chairman Jerome Powell discussed concerns regarding the possible development of a U.S. CBDC.
Powell said, “We are nowhere close to recommending or adopting any central bank digital currencies.” 10
Powell’s remarks come amid legislative efforts to prevent the Fed from issuing a CBDC without congressional approval, reflecting ongoing debates around privacy and the implications of central bank-backed digital currencies on the financial landscape. Powell’s remarks coincide with legislative attempts to stop the Fed issuing CBDCs without Congress approval. They reflect ongoing discussions around privacy, and implications of central banks-backed digital currency on the financial scene. 11
Ether Network Upgrade: What you can expect
The Ether price ( , ETH), has reached $4,000, the highest since December 20, 2021. This is because the Deneb-Cancun upgrade or Dencun will be taking place this week. Ether has been up over 4% Monday, and is now more than 70% higher year-to date.
Fidelity digital assets expects the upgrade to dramatically lower the fees for various layer-two protocols built on the Ethereum base blockchain. 12