{"id":3066,"date":"2023-06-22T10:00:00","date_gmt":"2023-06-22T14:00:00","guid":{"rendered":"https:\/\/www.deeds.com\/articles\/?p=3066"},"modified":"2024-04-25T23:17:36","modified_gmt":"2024-04-26T03:17:36","slug":"crypto-catalysts-are-we-in-the-midst-of-a-digital-shift-for-world-finances","status":"publish","type":"post","link":"https:\/\/www.deeds.com\/articles\/crypto-catalysts-are-we-in-the-midst-of-a-digital-shift-for-world-finances\/","title":{"rendered":"Crypto Catalysts: Are We in the Midst of a Digital Shift for World Finances?"},"content":{"rendered":"\n
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What happens in the crypto market doesn\u2019t stay in the crypto market for long.<\/p>\n\n\n\n

As bitcoin and other digital assets rise in popularity, real estate will be affected. After all, when people make profits, they often transform their earnings into housing wealth<\/a>.<\/p>\n\n\n\n

With that big picture in mind, let\u2019s take this moment to check in on the crypto market \u2014 and some major recent catalysts. <\/p>\n\n\n\n\n\n\n\n

BlackRock Quietly Bolsters Bitcoin<\/h2>\n\n\n\n

Bitcoin\u2019s on the rise again, following international news coverage of BlackRock\u2019s application to run a U.S. bitcoin ETF<\/a> (exchange-traded fund). Assuming the U.S. Securities and Exchange Commission (SEC) approves the filing, the fund will be the first of its kind in the country.<\/p>\n\n\n\n

The value of bitcoin has since rebounded to the $30K mark, doubling since it hit a two-year low in November 2022. Ethereum is also rising sharply.<\/p>\n\n\n\n

BlackRock\u2019s partnership with Coinbase gives it a third-party storage system for the assets in its proposed iShares Bitcoin Trust.<\/p>\n\n\n\n

BlackRock\u2019s plans to offer its investors a traditional ramp to nontraditional assets is significant. They\u2019re part of a digital shift in world finances.<\/p>\n\n\n\n

Yet Another Catalyst: EDX Markets Open for Business<\/h2>\n\n\n\n

BlackRock is not the only major asset management firm that\u2019s busy with bitcoin. We\u2019ve been reporting on Fidelity\u2019s moves into bitcoin and ether<\/a> (and the world of blockchain in general) over the past year.<\/p>\n\n\n\n

As of June 2023, there\u2019s a new crypto exchange for institutional investors only. And it\u2019s now live. Named EDX Markets, enables the trading of four big crypto brands: Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. Who\u2019s backing the new exchange? The lineup includes traditional finance powerhouses Fidelity, Charles Schwab, and Citadel Securities.<\/p>\n\n\n\n

The groundswell of institutional activity will bring bitcoin and other strong digital assets to the attention of large investment companies.<\/p>\n\n\n\n

All This, Despite a Crypto Clampdown<\/h2>\n\n\n\n

This is all unfolding even as the crypto sector faces off with federal regulators.<\/p>\n\n\n\n

Last November, a major scandal shook the sector: the FTX bankruptcy fiasco. The high-profile, $32 billion cryptocurrency company imploded, swarmed by law enforcement in a crypto haven in the Bahamas<\/a>.<\/p>\n\n\n\n

The U.S. government\u2019s crypto clampdown then got under way in earnest. This month, the SEC sued two large exchanges, Binance and Coinbase, characterizing them as unregistered securities exchanges. Leadership of the two exchanges are defending their positions. The SEC\u2019s actions rocked the exchanges, but the assets themselves were unscathed. This means investors are treating them like commodities, not speculative investments. After all, says Glenn Williams for CoinDesk.com<\/em>:<\/p>\n\n\n\n

The price of crude oil wouldn\u2019t sharply drop simply because the SEC sued ExxonMobil. Nor would the price of Gold plummet if the agency took action against the CEO of Barrick Gold.<\/em><\/p>\n\n\n\n

Similarly, investors seem to be saying: OK, government. Vet the exchanges. But the assets remain desirable. <\/p>\n\n\n\n

How the New Markets Will Navigate Regulatory Scrutiny<\/h2>\n\n\n\n

To earn legitimacy as sought-after assets, digital offerings have to integrate standard consumer protections. And this is what EDX Markets<\/a> will do as it sets out to \u201cmeet the needs of the world\u2019s largest and most sophisticated financial institutions.\u201d<\/p>\n\n\n\n

Notably:<\/p>\n\n\n\n