The crypto markets are continuing to diversify. As Bitcoin stabilizes above the $10,200 price level, altcoins present a varied picture of green and red. Notable movements come from BNB (-4.74%), BSV (-4.33%), Maker (-4.62%), ICON (+3.37%).
As institutional investment ramps up, a full Bitcoin ETF could be inching closer. SEC Chairman Jay Clayton noted in an interview with CNBC that there are only two major issues left to be solved for the approval of an ETF: safe custody of crypto assets, and proving that the price isn’t subject to manipulation.
According to Senior Analyst at eToro Mati Greenspan, Bitcoin was born to solve the first question. “In fact, verifying ownership is kind of what crypto does best,” he wrote in a report.
While certainly true, a slightly more nuanced problem is verifying the lack of ownership. Since private keys can be copied, it could be difficult to prove that custody is in fact limited to those who are authorized. Greenspan’s answer probably won’t satisfy the SEC, but the recent appearance of regulated custodians such as Bakkt and Coinbase might do the trick.
Addressing the second issue, Greenspan noted that “The decentralized nature of price discovery in the crypto market is another one of its star qualities and makes it far more resilient to price manipulation.”
There are enough regulated exchanges in the world to potentially address the SEC’s concerns. We will know whether it’s enough on October 13 and 18, when the SEC deliberates on the Bitwise and VanEck ETFs.
But there is one notable exchange that is not yet regulated in the U.S., which may face other troubles.
BNB Traders Spooked as Binance Prepares For American Expansion
Binance Coin is slumping from the temporary loss of U.S. traders, falling more than 4 percent as of the time of writing. First announced in June, today Binance restricted access for U.S. users.
Despite plenty of advanced warning, it appears that the market has not priced in the loss of such a valuable user segment.
The United States accounted for 9.36% of Binance users in the month of August, according to SimilarWeb estimates. That percentage has fallen significantly from previous months, but still represented the largest contingent of Binance traders.
The new platform is expected to open for deposits next week, with trading in Bitcoin, Ether, XRP, Bitcoin Cash, Litecoin and USDT. Crypto Briefing previously analyzed the potential impact of losing U.S. customers, especially for some of the less liquid coins, but some of those fears may be allayed by the transition process.
Santander issues blockchain bond
Spain’s Banco Santander has announced the issue of the first end-to-end blockchain bond. The transaction has been entirely internal, with Santander acting as the issuer of the $20 million bond, and one of its subsidiaries purchasing it.
Nevertheless, this represents an important test for the tokenization of mainstream securities, with the bank using the Ethereum blockchain for bond custody. In addition, both the cash for purchase and the quarterly coupons have been tokenized on-chain, creating a complete offering that the bank hopes will please its most innovative clients.
Kraken lists ICON
ICON (ICX) was listed today on Kraken Exchange, causing a short term spike of nearly five percent. Unlike many other exchanges, Kraken does not divulge information about its upcoming listings, often creating a surprise effect that results in mild price swings.
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