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As is generally the case, it was another busy week in the blockchain and cryptocurrency industry. A long-awaited Bitcoin ETF is finally slated to hit a regulated stock exchange by the end of the year, as both the European Union and United States look to take stablecoins — which hit $20 billion, in total — more seriously.
Read the most pertinent details about these stories and more in this edition of OKEx Insights’ Crypto News of the Week!
First-ever crypto exchange-traded fund to be listed in Bermuda
After years of waiting, the world finally has its first Bitcoin ETF.
The much-anticipated exchange-traded fund comes in the form of the Hashdex Nasdaq Crypto Index ETF, which will be listed on the Bermuda Stock Exchange by Brazilian-based fund manager Hashdex.
Three million shares have been made available via private placement and are priced at $1,000 each.
Key takeaways
- The first-ever listing of a cryptocurrency exchange-traded fund will likely bolster the chances of a Bitcoin ETF garnering regulatory approval in the United States — something that has yet to happen, with the Securities and Exchange Commission regularly citing market manipulation as the determining factor in its frequent application rejections.
- The Hashdex Nasdaq Crypto Index ETF will also likely see a lot of interest from institutional investors looking to gain fully regulated exposure to BTC.
U.S. banks may hold reserves for stablecoins
The U.S. Office of the Comptroller of the Currency has once again bolstered the cryptocurrency industry by issuing new guidance that allows national banks and federal savings associations to hold reserve funds for stablecoins — i.e., cryptocurrencies pegged to fiat currencies.
Naturally, the bureau’s guidance is not an explicit endorsement of stablecoins, and banks choosing to provide services to stablecoin issuers will still need to adhere to anti-money laundering practices, such as Know Your Customer requirements.
Key takeaways
- The independent bureau of the United States Department of the Treasury’s six-page interpretive letter will largely boost confidence in stablecoin issuers that choose to place their reserve assets in national bank accounts, as this will ensure that the issued stablecoins are, indeed, fully backed.
- The new guidance also illustrates the OCC’s continued willingness to play ball with the regulated cryptocurrency industry, after recently allowing federally chartered banks to hold cryptocurrencies.
European Commission proposes regulatory framework for cryptocurrencies
Following the recent news that the European Commission was slated to propose a regulatory framework for cryptocurrencies, the executive branch of the European Union did just that on Thursday via a 168-page provisional proposal.
Key takeaways
- The proposal highlights that stablecoins, as well as cryptocurrencies, have the potential to become widely accepted and, therefore, require “more stringent requirements.” This sentiment should bolster those believing that digital currencies are on the path to mainstream adoption.
- Because the proposal is part of the commission’s Digital Finance Package, it illustrates how the EU is interested in keeping with recent, if not the latest, trends in the blockchain and fintech spheres.
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First-Ever ‘Bitcoin ETF’ Approved, and Stablecoin Market Reaches New Milestone was originally published in OKEx Blog on Medium, where people are continuing the conversation by highlighting and responding to this story.
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