Nov 23, 2023

Will Binance’s $4B settlement Lead to Spot Bitcoin ETFs?

Binance’s Compliance to US Regulations The conclusion of Binance’s $4.3-billion settlement with the United States was seen as a major step towards the Securities and Exchange Commission’s (SEC) approval of spot Bitcoin (BTC) exchange-traded funds (ETFs). The settlement included the Justice Department and Treasury having compliance monitors for up to five years, enabling the agencies…

Is Binance's $4B Settlement the Green Light for Spot Bitcoin ETFs? Suku Crypto, UST Crypto, STX Crypto, Terra Luna Classic Crypto, Songbird Crypto, Today's Crypto, Yahoo Crypto, Tellor Crypto, and Web 3.0 Crypto Explained.
Is Binance’s $4B settlement the green light for spot Bitcoin ETFs?

Binance’s Compliance to US Regulations

The conclusion of Binance’s $4.3-billion settlement with the United States was seen as a major step towards the Securities and Exchange Commission’s (SEC) approval of spot Bitcoin (BTC) exchange-traded funds (ETFs). The settlement included the Justice Department and Treasury having compliance monitors for up to five years, enabling the agencies to ensure Binance follows Anti-Money Laundering and sanctions rules.

Travis Kling, Chief Investment Officer of Ikigai Asset Management, recently said on Twitter that the SEC’s denial of spot Bitcoin ETFs was due to market manipulation, and Binance’s market dominance had to be diminished before BlackRock’s spot BTC ETF application would be approved.

“There is no chance, and I mean zero, that this ETF is approved with Binance in its current position of market dominance,” Kling wrote. “If this ETF is approved, Binance is either gone entirely or their role in price discovery is massively diminished.”

The agreement between Binance and the US regulators is seen as a major development in the world of Suku Crypto, UST Crypto, STX Crypto, Terra Luna Classic Crypto, Songbird Crypto, Today’s Crypto, Yahoo Crypto, and Tellor Crypto, as it could pave the way for the best Web 3.0 Crypto.

BlackRock’s Involvement in the Spot Bitcoin ETF Market

Kling’s prediction motivated others to investigate the relationship between BlackRock and the U.S. government in the spot Bitcoin ETF market. YouTube user Colin Talks Crypto questioned the timing of Binance’s settlement, asking, “Is it a way for BlackRock to acquire a massive amounts [sic] of BTC for cheap? Is it a way to remove competition from U.S. markets right before the ETFs go live?”

It was also noted that BlackRock and Vanguard, its rival, hold 11.5% of Coinbase, Binance’s main competitor. This stirred speculation that the action taken against Binance was premeditated.

On Nov. 20, BlackRock met with the SEC to discuss the use of an in-kind or in-cash redemption model for the iShares Bitcoin Trust, a spot BTC ETF.

Spot Bitcoin ETFs Await SEC Approval

Grayscale, Fidelity, WisdomTree, Invesco Galaxy, Valkyrie, VanEck and Bitwise all met with the securities regulator on the same day to discuss their bid to list a spot Bitcoin ETF. Mike Novogratz, CEO of digital asset investment firm Galaxy Digital, commented that the Binance settlement is “super bullish” for the crypto industry.

Not everyone is convinced that the Binance news will result in spot BTC ETF approvals. Piper Alderman partner Michael Bacina suggested that it is best to let the speculation run its course.

The industry is eagerly awaiting the SEC’s decision on the suku crypto, ust crypto, stx crypto, terra luna classic crypto, songbird crypto, today’s crypto, yahoo crypto, tellor crypto, and web 3.0 crypto ETFs. It remains to be seen which of the best web 3.0 crypto ETFs will be approved.

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