Coinbry

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Does Binance's $4B settlement pave the way for spot Bitcoin ETFs?

Does Binance’s $4B settlement pave the way for spot Bitcoin ETFs?

One crypto executive predicted five months ago that spot Bitcoin ETFs would only be approved after Binance lost ground on its market dominance. However, Binance’s recent $4.3 billion settlement with the United States may have cleared the way for the approval of spot Bitcoin ETFs by the country’s securities regulator. The settlement requires Binance to comply with Anti-Money Laundering and sanctions rules and allows for compliance monitors for up to five years. The U.S. Securities and Exchange Commission has previously cited market manipulation as a reason for denying spot Bitcoin ETFs, and Binance’s market dominance needed to be diminished before BlackRock’s spot BTC ETF application could be approved. This prediction has led some to speculate about the relationship between BlackRock and the U.S. government and whether the settlement was a strategic move to acquire BTC at a lower price and remove competition from the market. It is worth noting that BlackRock and its rival Vanguard own a significant stake in Binance’s competitor, Coinbase. Other companies, including Grayscale, Fidelity, WisdomTree, Invesco Galaxy, Valkyrie, VanEck, and Bitwise, are also awaiting SEC approval for their spot Bitcoin funds. Despite the speculation, some experts suggest letting the situation unfold naturally. Overall, the Binance settlement is seen as a positive development for the cryptocurrency industry by figures like Mike Novogratz, CEO of Galaxy Digital.

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