Bitcoin surges past $35,000 on rising optimism for SEC approval of Spot BTC ETF 🤯; Everyone’s dream: FinTechs being PAID to acquire customers 🤑; RegTech market set to surge to $45.3B by 2032 😳
FinTech is Eating the World, 24 October
Hey Everyone,
Happy Tuesday and welcome back to the regular newsletter issue! Today we’re looking at Bitcoin surging past $35,000 (optimism for SEC approval of Spot BTC ETF is rising + what’s next), FinTechs that are being PAID to acquire customers (why the rise of Negative CAC business model is everyone’s dream + some bonus reads into FinTechs crushing it), and RegTech market that is set to boom in the upcoming years (& what’s behind $45.3B potential by 2032). Let’s jump straight into the interesting stuff 🌶
Bitcoin surges past $35,000 on rising optimism for SEC approval of Spot BTC ETF 🤯
The news 🗞️ Bitcoin prices briefly jumped over the $35,000 mark this week for the first time since last May, fueled by growing speculation that the SEC may soon approve the listing of a spot bitcoin exchange-traded fund (ETF).
It has dropped a bit since then and at the point of writing, BTC is changing hands at circa $33k per coin.
Nevertheless, the cryptocurrency has now erased all the losses it incurred after the collapse of Terra's stablecoin in May 2022.
Let’s take a look.
More on this 👉 Driving bitcoin's double-digit percentage gains is a shift in sentiment that SEC approval of a spot bitcoin ETF is imminent. The SEC has long resisted approving such funds, which hold actual bitcoins, arguing it cannot protect investors from potential manipulation.
However, the agency is facing mounting pressure after a court ruled it was wrong to reject an application to convert Grayscale's Bitcoin Trust into an ETF.
Major financial institutions like BlackRock BLK 0.00%↑, Ark Invest, and Fidelity have been lobbying hard for bitcoin ETFs, portraying them as safer than buying crypto directly.
Having said that, BlackRock's filing of a spot Bitcoin ETF on the Nasdaq's trade clearing firm this week and its move to assign a ticker symbol is seen as strong signals SEC approval may come very soon.
The prospect of Bitcoin ETFs has thus sparked a wave of optimism across the crypto sector. Ether, XRP, and other major cryptocurrencies also rallied on the news.
Crypto-linked equities like Coinbase COIN 0.00%↑ and MicroStrategy gained 10% or more.
✈️ THE TAKEAWAY
What’s next? 🤔 SEC blessing would represent a major regulatory stamp of approval for Bitcoin. It could unleash enormous institutional demand and be a catalyst for the next stage of growth and maturity for the cryptocurrency market. Some speculate that the impact could be similar to that when Gold ETF was introduced:
However, challenges remain such as ongoing legal troubles at major crypto firms and uncertainty around regulations. The path forward is unlikely to be smooth. Yet, the industry appears re-energized to confront these issues head-on.
ICYMI: The cryptocurrency bull market is already here 📈 [a recap of what’s happening + where to look at & some more bonus reads]