Crypto-asset prices struggled until the end of September, failing to gain for most of the month, or even holding out in some cases.
However, major crypto assets rebounded over the weekend on the back of positive comments from SEC’s Gary Gensler.
Bitcoin has had a strong week, despite dropping below $42,000 at the end of September. The arrival of October saw a jump in crypto-asset prices over the weekend. It is now trading at just under $48,000.
Likewise, Ether trading saw the beginning of a rally in October, dropping to $2,800 at the end of last month. ETH jumped over the weekend, traded higher and is now around $3,350.
SEC chief calls for consumer protection of crypto assets…but reiterates support for crypto-linked ETFs
Gary Gensler said investors in crypto products deserve the same protections and safeguards against fraud and manipulation as depositors at banks or purchasers of insurance policies.
The SEC chief acknowledged that the size of the crypto space now means it’s time to cover investors in the same way as if they were investing in more traditional assets such as a mutual fund. His comments were specifically regarding investors who want returns on their assets on an annual basis.
However, despite the warnings, he has once again reiterated his support for exchange-traded funds (ETFs) on futures linked to the top cryptocurrency by market capitalization, leading to speculation that the US might agree to a vehicle.
Gensler singled out Bitcoin ETFs in particular, which invest in futures contracts traded on the Chicago Mercantile Exchange, having made similar comments in August as well. Whatever the outcome, bitcoin rebounded after news of his comments, leading to renewed optimism.
Cryptography Isn’t “The Second Coming of Christ” – Musk
Elon Musk once again put forward his views on cryptocurrency, asking US regulators to “do nothing.” His comments indicated his belief that any possible government action could “slow down [crypto and bitcoin’s] Progress “.
An advocate of “letting it fly,” he hopes crypto assets will eventually help reduce bugs and latency in legacy monetary systems.
Contrary to previous comments, his opinions don’t seem to affect price action significantly, but considering regulation is a hot topic at the moment, don’t be surprised if we see more and more comments impacting the space as it continues to attract public interest.
The first approved crypto investment fund in Switzerland
Switzerland broke new ground after the Swiss financial regulator issued approvals for a local crypto-asset investment fund and a local digital asset custody service last week.
Just days after China’s central bank commented that bitcoin and other financial blockchains pose a threat to economic stability, FINMA has formally approved a first-of-its-kind investment fund in Switzerland, to “facilitate serious innovation… in a consistently technology-neutral manner.” .
The new cryptocurrency market index fund will be open to “qualified investors,” allowing investment in crypto assets with “a sufficiently large trading volume.”
Given that Switzerland has one of the largest banking sectors in the world and accounts for an estimated 25% of global cross-border asset management, the opportunity for investors to gain more exposure to cryptocurrency groups could be an exciting space.
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Crypto assets are volatile instruments that can fluctuate widely in a very short time frame and are therefore not suitable for all investors. Unlike CFDs, crypto-asset trading is unregulated and therefore not supervised by any regulatory framework in the European Union. Your capital is at risk.
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