**Crypto Market Reacts to Binance CEO Scandal**
*Context*
The biggest news driving the crypto market this week has been Binance CEO Changpeng Zhao stepping down and pleading guilty to U.S. money laundering charges. The move is being seen as cutting a deal with the regulators so that the largest global crypto exchange can continue to trade in the country, even as investors pulled $956 million from the exchange over the news. Binance will also pay $4.3 billion to U.S. authorities as a settlement for this illicit finance probe. Now, the industry is waiting to see how this will affect the market and what the future holds for the regulation and acceptance of cryptocurrency. In the midst of this scandal, optimism is growing that the SEC may start approving Bitcoin ETFs, and many investors are tracking the major Bitcoin ETF applicants.
**Opportunities for Traditional Finance Giants**
While on the surface, this looks like a big blow to the credibility of the crypto industry, it has opened up opportunities for various traditional finance giants who have applied for a Bitcoin (BTC) ETF with the Securities and Exchange Commission (“SEC”). The biggest concern that the SEC has had with crypto, and one of the main reasons it has been constantly trying to stall these applications, is the lack of monitoring ability of crypto companies by regulatory bodies.
*Trends in the Market*
Till now, the industry has been operating too independently for the SEC to allow it to go mainstream. But now, with Binance allowing close scrutiny of the charges made against it, the general feeling is that regulatory authorities are in a better position to monitor the sector going forward and form a regulatory framework. The probability that the SEC may actually start approving these ETFs is supported by the fact that its deadline for rebuttal comments was set till Nov 8. As a result, Bitcoin has rallied and has gone past the $37,000 mark, pushing the $38,000 level following the optimism over this possibility. It is currently trading at $37,295.63 after gaining 2.27% in the past 24 hours.
*Investor Optimism and Inflow to Bitcoin*
Investor optimism is currently on a very high level as it is increasingly becoming clear that the regulatory body will stop stalling these applications and stop crypto from going mainstream. The Binance news has only added to this optimism, and while there has been a flight from Binance, Bitcoin is seeing more inflow.
*Tracking Major Bitcoin ETF Applicants*
One must, thus, track some of the major Bitcoin ETF applicants at this current juncture to understand the impact this news might have on them. These are some of the biggest names in the traditional marketplace that have decided to explore the crypto space in recent months.
*The Major Players*
– BlackRock, Inc.
– Invesco Ltd.
– Franklin Resources, Inc.
Finally, Fidelity Investments, one of the largest investment management companies in the world, is also eagerly awaiting SEC approval for its Bitcoin exchange-traded fund.
*Conclusion*
As the scandal involving Binance unfolds, it’s becoming clear that opportunities still remain for the crypto market. The developments over the past week have laid the groundwork for possible regulatory approval of Bitcoin ETFs, which could significantly impact the market in the near future. All eyes are now on the SEC to see how it will respond to this evolving situation.
I have over 10 years of experience in the field of cryptocurrency and blockchain technology. I have attended numerous conferences and events around the world, and my work has been featured in major publications such as CoinDesk.
