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Banks Warm to Crypto

GB Market Commentary 06/10/2021

by Freddie Evans


Bitcoin is currently at $51,400 as the token has seen a 25% increase over the last seven days. Technical indicators are bullish, with analysts predicting a bull run to Christmas and some seeing $50,000 as a new support level. This recent rally contrasts the stock market with assets like stocks, bonds and gold having a period of angst over high inflation and slowing economic growth. This recent Bitcoin advance could be the repeat of history following the Chinese ban on crypto activities.


Ethereum is currently hovering over the $3400 price level. A report from a crypto research platform, Messari, found that Ethereum has settled $6.2 trillion in transactions over the last 12months. The figure is 369% higher compared to 2020. Half of the value of the networks settled transactions comes from the growth of sablecoins. Ethereum price has risen 16% over the last week and 43% in the previous three months.


US Bancorp said yesterday evening that it launched a new cryptocurrency custody service for institutional investment managers with private funds in the US and Cayman Islands. This new service comes as they report that they have been increasingly requested to provide it as interest has surged over the last few years. The fifth-largest US bank said bitcoin-focused financial services firm NYDIG would act as a custodian, and the service will soon support more cryptocurrencies. This is the newest example of banks warming to crypto after JPMorganChase Co began allowing access to crypto funds to all its wealth management clients.


An important new development came from the head of the SEC, Garry Gensler, as he stated that they do not intend on banning cryptocurrencies. Gensler said that the regulation of crypto is not within its mandate.


Sticking with the SEC, their case against Ripple’s XRP token has had an interesting development. A New York judge has granted XRP token holders the ability to advise or provide information for the court but not participate in the litigation process. Many argue that the SEC has given differential treatment to XRP compared to other similar coins. This development has given more of a voice to the smaller members of the community who are often overlooked in regulation.

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