Ripple Sets Another Huge Partnership!!!
Let’s see what’s happening in the crypto sphere. First and foremost, we have some followup news pieces on the Bitwise Bitcoin ETF. The United States Securities and Exchange Commission (SEC) reportedly rejected Bitwise’s Bitcoin ETF proposal. They reasoned that the Bitwise Bitcoin ETF did not meet the necessary requirements. Shortly, Bitwise declared that they will be refiling for a Bitcoin ETF ‘as soon as appropriate’. Third up, Finastra, the third largest Fintech company in the world, joins RippleNet for faster, cheaper, and more reliable cross-border payments. Next up, during a finance summit, CFTC chair Heath Tarbert shared his view on ETH, saying that “ether is a commodity”, and it will soon be traded in the US. And the last news of the week, the Chicago Mercantile Exchange (CME) Group is expecting a boom in Asian demand when it comes to its new Bitcoin options.
The Market Today
It looks like cryptocurrencies are correcting today with many reds on the board. Bitcoin is slightly decreasing by 0.36%, moving around the $8,500 mark. Ethereum and Ripple’s XRP are also following the trend, with falls of 1.42% and 2.92% from yesterday.
Bitwise Bitcoin ETF is rejected
In an announcement on Oct. 9, the United States Securities and Exchange Commission (SEC) rejected the Bitcoin ETF proposal from Bitwise. According to the Commission, the ETF filed by Bitwise Asset Management in conjunction with NYSE Arca, did not meet legal requirements to prevent market manipulation or other illicit activities in terms of possible market manipulation and illicit activities. The SEC pointed out:
“Rather, the commission is disapproving this proposed rule change because, as discussed below, NYSE Arca has not met its burden under the Exchange Act and the Commission’s Rules of Practice to demonstrate that its proposal is consistent with the requirements of Exchange Act Section6(b)(5), and, in particular, the requirement that the rules of a national securities exchange be designed to prevent fraudulent and manipulative acts and practices.'”
Now, this announcement seems to fly in the face of recent comments from Matt Hougan, managing director and global head of research at Bitwise. In a statement on Oct. 7, he said:
“We’re closer than we’ve ever been before to getting a Bitcoin ETF approved.”
Unfortunately, it doesn’t look like it, but it doesn’t mean Bitwise won’t be taking any action soon.
Bitwise and NYSE Arca will refile for BTC ETF
Right after the rejection of the SEC, Bitwise Asset Management and NYSE Arca stated that they will refile the BTC ETF soon. For those that aren’t aware, the judgment on Bitwise’s ETF proposal has been delayed many times prior to this. In a recent press released, Bitwise stated that:
“We deeply appreciate the SEC’s careful review. The detailed feedback they have provided in the Order provides critical context and a clear pathway for ETF applicants to continue moving forward on efforts to list a bitcoin ETF. We look forward to continuing to productively engage with the SEC to resolve their remaining concerns, and intend to re-file as soon as appropriate.”
In spite of the rejection from the SEC, Bitwise seems to be very optimistic.
“While we were not able to satisfy the SEC’s concerns inside the statutory 240-day review window […], we are pleased with the progress that the industry has made and believe that, with additional research and continued progress in the broader ecosystem, the remaining concerns and challenges raised in this order will ultimately be satisfied.”
Finastra joins RippleNet
According to a report on Cryptoglobe, the third largest Fintech company in the world Finastra recently announced that it will be joining RippleNet which will offer Finastra customers faster, cheaper and more reliable cross-border payments. Before we dive in, here’s a bit of context on Finastra. Finastra is a fintech company created in 2017 after the merger and acquisition between Misys and D+H. With 60 offices located around the world and 10,000 employees, its annual revenue is around $1.9 billion. With the new partnership, Finastra’s users will be connected with over 200 members in RippleNet. Commenting on the news, Marcus Treacher, SVP of Customer Success at Ripple, said:
“This partnership will enable Ripple to expand the reach and solutions for our partners, and the footprint of RippleNet while allowing customers to transact directly with each other.”
Riteesh Singh, Senior Vice President, FMS, at Finastra also commented on the new partnership saying that it shows
“Finastra’s belief that the future of finance is open, and it demonstrates our commitment to bringing the latest innovations and choices to our customers”
“is particularly beneficial for our customers in geographies where cost of correspondent banking is high.”
CFTF chairman: “Ether is a commodity”
During the Yahoo Finance Summit on Oct. 10, CFTC chair Heath Tarbert expressed his thoughts that Ether is a commodity and should fall under the oversight of the CFTC. In his words:
“We’ve been very clear on bitcoin: Bitcoin is a commodity. We haven’t said anything about ether—until now. It is my view as chairman of the CFTC that ether is a commodity.”
In addition, Tarbert also shared his vision for the US technological industry, emphasizing that:
“I want to stress the importance of blockchain and digital assets to the United States, and in particular, as CFTC Chairman, I want the U.S. to lead in this technology.”
CME Group expects high new BTC option in Asia
The CME Group, who only recently announced its Bitcoin options plan in September, is looking forward to a rise in Asian demand for its BTC options. According to their report, half of the volume of BTC futures is coming from Asian and European traders. Tim McCourt, CME Group’s global head, said that with the new options, crypto miner will be more precise in managing crypto price risks. McCourt noted that options would likely enable Bitcoin miners to more accurately hedge the costs of their production. McCourt also noted that the current trading of bitcoin futures contracts among China-based miners has offered them a hedge during volatile times on spot markets.
And there you have it guys! What are your thoughts regarding these pieces?
Are you disappointed with the decision of the SEC when it came to rejecting Bitwise’s Bitcoin ETF?
What do you think about the integration of RippleNet into Finastra’s system?
Do you agree with the CFTC Chairman on his statement that ETH is a commodity?
Do you think the new BTC options will be hot in Asia?
Please leave a comment right below to let me know what you guys are thinking.
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Disclaimer: Cryptopig content is written by a team of blockchain passionate people. We are not registered as investment advisors. Don’t take the information in this post as investment advice and make sure you do your own research before investing. Cryptocurrencies are a very risky investment, never invest more money than you can afford to lose.