We have seen some drastic movements in the markets this week, with many people looking towards the United States SEC, who are currently sat on a large number of Bitcoin ETF decisions. The markets are very sensitive to decisions that are made within the SEC, we only need to look back to earlier this year when the SEC rejected a large Bitcoin ETF application made by the Winklevoss twins.
To recap: According to Fox Business, the SEC have commented on their decision to reject the Winklevoss ETF:
“Finding that BZX has not demonstrated that bitcoin and bitcoin markets are inherently resistant to manipulation, the Commission subjects the proposal to the analysis it has historically used to analyze commodity-trust ETPs, focusing particularly on whether there are comprehensive surveillance-sharing agreements with significant, regulated markets.”
However, Hester Pierce, the Commissioner for the SEC suggested that she is disappointed by the decision, stating that she is:
“Concerned that the Commission’s approach undermines investor protection by precluding greater institutionalization of the bitcoin market.”
“More institutional participation would ameliorate many of the Commission’s concerns with the bitcoin market that underlie its disapproval order. Sends a strong signal that innovation is unwelcome in our markets, a signal that may have effects far beyond the fate of bitcoin ETPs.”
When this happened, the markets fell dramatically, now, investors are expecting the same thing to happen should the SEC continue to reject their pending ETF applications.
What we are seeing now is not simply just as a result of the pending Bitcoin ETF decisions, however we can be sure that the current bear market is being influenced by the lack of movement within the SEC.
Bitcoin is seeing international adoption
So, one of the key parts of the Bitcoin ETF is that it will attract institutional investment. Once big companies start to buy into Bitcoin, the name of Bitcoin will hit the mainstream and thus, more normal people will be encouraged to invest. Once this happens, we can expect to see Bitcoin pop up in local shops, banks, towns, cities and pretty much anywhere we can spend money.
Now, we are starting to see further international movements that suggest many countries and areas are now warming up to Bitcoin and blockchain technology. Indeed, until central banks and governments start exploring the blockchain, Bitcoin adoption won’t be possible. Thankfully though, we are seeing an international trend of positivity towards the sector, with many countries now looking to move in a pro-Bitcoin direction.
Let’s take a look at some headlines
Today alone, we have seen a number of headlines that explore different ways in which different countries are exploring blockchain technology and are pushing towards making Bitcoin more attractive for adoption.
According to CCN, New Zealand authorities have recently approved a big grant for a cryptocurrency savings firm, suggesting that authorities here are looking towards exploring a blockchain future:
“Auckland-based cryptocurrency savings and trading platform Vimba has gotten a $330,000 grant from a government entity Callaghan Innovation. The platform currently enables users to use the New Zealand dollars in purchasing bitcoin or Ethereum. While giving an insight into plans of expanding the range of services being offered, Blackmore noted that the company was considering the prospects of expanding the range of cryptocurrencies.”
In South Korea, we are even seeing instances of legal authorities taking favour of cryptocurrency exchanges over well established traditional banks. According to Bitcoin.com:
“The 50th Civil Affairs Division of the Seoul Central District Court has ruled in favor of cryptocurrency exchange Coinis against Nonghyup Bank, local media reported. The exchange filed a complaint with the court seeking to prohibit the bank from suspending its transactions after deposits to its account were blocked by the bank last month. The court ruled on Monday that it is illegal for the bank to suspend the exchange’s transactions based solely on the FSC guidelines and moved to dismiss the suspension.”
Finally, according to Ethereum World News, even Canada want in, with the Bank of Canada now exploring blockchain technology by building their own Proof-of-Concept system:
“In market boosting news, the Bank of Canada (BoC) is building a proof-of-concept system with help from the private sector and academia. The objective, is to help them (BoC) better understand new financial technologies of which blockchain and DLT is top priority. Project Jasper is a collaborative initiative between the government and the public sector. Its experimentation will help them test how efficient blockchain solutions are for wholesale fund transfer. In Phase I and II the bank was in the exploratory stage. The goal then was to observe how DLTs clear and settle high value interbank transactions. Afterwards-depending on with initial outcomes, the BoC would give the go-ahead for DLT integration in core financial systems as Forex and securities.”
Adoption is looking promising
Simply just from exploring a few recent headlines, it becomes very clear just how we expect to see Bitcoin, cryptocurrency and the blockchain to spread across the globe. International authorities are now bullish on crypto and as a result, we can only expect to see adoption pick up pace. Tie in the looming Bitcoin ETF decisions and what we have is a recipe for success, one that we hope will take foot soon and finally, Bitcoin may someday become the world’s currency of choice.