Crypto Scoop: Bitcoin Soars to $71,000 and SEC Approves Spot Ethereum ETF

This week was monumental as the crypto space celebrated milestones amid price gains. In this edition of the Crypto Scoop, we review the following:

• Price gains and predictions
• Ethereum ETF approval
• Nigeria and Brazil’s crypto initiative. 

Bitcoin Soars Above $71,000 in a Week of Milestones and Celebrations

This week, the cryptocurrency community celebrated a significant milestone: the 14th anniversary of Bitcoin Pizza Day. This event marks the moment when Laszlo Hanyecz conducted the first documented real-world transaction using Bitcoin, buying two pizzas for 10,000 BTC. It serves as a landmark moment that underscores the dramatic rise in Bitcoin's value over the years.

Bitcoin continued to make headlines as it surged past $71,000 for the first time in more than five weeks, and Ethereum followed suit, reaching $3,800. These gains coincided with a rise in the Fear and Greed Index to 74, indicating a strong investor shift toward greed and optimism in the market. Bitcoin's price also surged in local currencies across Japan, Argentina, and the Philippines, exceeding 11 million yen in Japan for the first time on May 21.

Amidst this market upswing, BlackRock's iShares Bitcoin Trust (IBIT) saw massive inflows, pulling in $290 million on a single day—95% of all inflows into U.S. spot Bitcoin ETFs, which totalled $305.7 million. This influx is a clear sign of renewed investor confidence after a period of low activity.

Adding an adventurous twist to the week, Bitcoin enthusiast Dadvan Yousuf scaled Mount Everest and proudly displayed a Bitcoin flag at the summit. Yousuf's journey attracted the attention of fellow climbers, sparking conversations about Bitcoin and its principles at the top of the world.
Meanwhile, Tom Lee from Fundstrat Global Advisors has predicted that Bitcoin could climb to $150,000 by the end of 2024. He believes Bitcoin is early in an upcycle, pointing to even more significant potential gains ahead.

Spot Ethereum ETF Approval Sets Stage for Potential Record Highs in Crypto Market

This week marks a significant milestone in the cryptocurrency sector. The U.S. Securities and Exchange Commission (SEC) approved eight spot Ethereum (ETH) exchange-traded funds (ETFs) after a detailed review process involving major financial institutions like BlackRock, Fidelity, and Grayscale.

Analysts predict a bullish future for Ethereum following this development. Geoff Kendrick from Standard Chartered highlighted that the approval could propel Ethereum to reach as high as $8,000 by year-end. This optimism is echoed by QCP Capital, which noted that similar market reactions followed the January approval of spot Bitcoin ETFs. After those ETFs began trading, Bitcoin's price surged dramatically from $42,000 to over $73,000 within two weeks. QCP Capital suggests that Ethereum could see a rally of up to 60% in the coming months due to the ETFs going live.

However, while the SEC has green-lighted the ETFs, procedural hurdles still exist. The ETF issuers must complete their S-1 registration statements before trading. Initial discussions on these forms have started, but the timeline for completion remains uncertain. James Seyffart, an ETF analyst at Bloomberg, remarked that while the necessary approvals could be finalised within a couple of weeks, historical precedents suggest it could take three months or more.

Nigeria and Brazil Refine Blockchain and Crypto Regulations to Foster Innovation and Security

In an effort to harness the benefits and mitigate the risks associated with blockchain technology, Nigeria's National Information Technology Development Agency (NITDA) has restructured its National Blockchain Policy Steering Committee (NBPSC). The restructuring aims to reassess and refine the policies that guide the implementation of Nigeria's National Blockchain Policy. This move underscores Nigeria's commitment to developing a robust framework for blockchain technology, positioning the country to leverage this innovation for economic growth.

Simultaneously, the Central Bank of Brazil is taking significant strides in establishing comprehensive cryptocurrency regulations. The bank has outlined a detailed three-phase plan to finalise regulations by the end of 2024. This initiative began with a public consultation launched in December to gather insights from market actors on a variety of issues, including asset segregation and risk management for Virtual Assets Service Providers (VASPs).

The second phase of Brazil's plan focuses on the internal planning necessary to regulate stablecoins, especially concerning their use in payments and foreign exchange. Stablecoins have become particularly prominent in Brazil, surpassing traditional cryptocurrencies like Bitcoin in market dominance.

The final phase involves setting the definitive rules for Brazil's VASP operation. These measures are designed to safeguard the national financial system by incorporating rigorous anti-money laundering (AML) and counter-terrorism financing (CTF) standards and monitoring suspicious activities.