Crypto Scoop: Bitcoin Hits $44,000 For The First Time Since April 2022

This week, we see shocking developments in crypto adoption and regulation amid bullish price movements. In this edition of the Crypto Scoop, we review the following:

• Price moves of top cryptocurrencies
• Update on the proposed Bitcoin spot ETF
• Tether’s market cap hits $80 billion
• Global crypto adoption and regulation

US Nears Proposed Approval of First Spot Bitcoin ETF

The United States is on the brink of a major development in the cryptocurrency sector, with the potential approval of its first Spot Bitcoin Exchange-Traded Fund (ETF). This news, reported by Reuters, indicates that discussions have advanced into key technical aspects, raising hopes for a historic decision.

A Spot Bitcoin ETF, linking investment directly to Bitcoin's spot price, is seen as a critical step for the industry. It would provide a regulated, efficient way for investors to engage with Bitcoin, potentially attracting those previously cautious about cryptocurrency investments.

There are currently 13 Bitcoin ETF applications under review by the U.S. Securities and Exchange Commission (SEC) from prominent firms like BlackRock, Fidelity, Grayscale Investments, and ARK Investments. Recent updates to these applications suggest a dynamic evolution in their strategies.

In a related development, the SEC has postponed its decision on a Spot Ether ETF offering from Grayscale. A recent notice from December 5 indicated that the SEC needs more time to consider a proposed rule change that would allow NYSE Arca to list and trade shares of the Grayscale Ethereum Trust.

Meanwhile, BlackRock, the world's largest asset manager, reported receiving in October 2023 $100,000 in seed funding from an undisclosed investor for its Spot Bitcoin ETF, as per its latest SEC filing.

Tether's Market Cap Hits $90 Billion: A Sign of Renewed Confidence in Crypto

Tether (USDT), the world's largest stablecoin, has reached a new milestone, with its market capitalisation hitting an all-time high of $90 billion on December 6 before slightly retreating to $89.9 billion. The stablecoin's market cap has grown by approximately 6% in the last month alone, showcasing its resilience in navigating market volatility and its role in restoring investor confidence. 

In a strategic move, Paolo Ardoino was appointed as the CEO of Tether on December 1, ascending from his role as Chief Technology Officer in 2017. This planned transition comes at a time when Tether is focusing on diversification and expansion. In a recent interview with Cointelegraph, Ardoino highlighted upcoming changes in Tether's product line and its broader orientation. He emphasised that Tether is set to evolve beyond just the USDT stablecoin, positioning itself as an infrastructure provider. This strategic shift indicates Tether's ambition to expand its influence and offerings in the cryptocurrency market.

Global Crypto Adoption Accelerates Across The World

The global cryptocurrency landscape is witnessing significant advancements in legalisation, regulation, and integration, as highlighted by recent developments across various countries.

A new report from CoinGecko reveals that over half of the world's countries, totalling 119 states and 4 UK overseas territories, have legalised cryptocurrency. This accounts for over 60% of countries globally. Europe leads in adoption, with 95% of its countries legalising digital assets, followed closely by Asia with 77.7% and the Americas with 77.4%. However, it's important to note that legalisation and comprehensive regulation are distinct, with only 52.1% of these countries having developed detailed legislation on digital assets.

In South Africa, the Financial Sector Conduct Authority (FSCA) is reviewing 128 applications from crypto service asset providers (CASPs), with plans to discuss 36 in its upcoming December meeting. This regulatory move is part of a broader effort to oversee the burgeoning crypto market in the country. According to the publication, the FSCA plans to review 36 licensees’ presentations at the Dec.12 Licensing Executive Committee meeting. A further 22 applications will be presented on Feb.13. The last 14 applications will have to wait until March 12.

In Kenya, a parliamentary committee has approved a bill to include cryptocurrencies in the definition of securities, proposing taxes on crypto exchanges, digital wallets, and capital gains from crypto assets. This bill, now two readings away from presidential assent, underscores the growing recognition of cryptocurrencies in national financial systems.

Meanwhile, the Swiss city of Lugano is embracing Bitcoin and Tether for payment of municipal services and taxes. This initiative marks a significant step in integrating cryptocurrencies into everyday financial transactions.

On an international scale, Italy’s central bank, Banca d’Italia, has entered a memorandum of understanding with South Korea’s Bank of Korea. This agreement focuses on the mutual sharing of knowledge and information regarding ICT issues, particularly concerning real-time settlement systems and central bank digital currencies (CBDCs). This collaboration signifies a growing interest in exploring the potential of CBDCs and advanced payment systems in the global banking sector.