Last Week in Review: World’s largest asset manager plans to launch Bitcoin ETF

Bitcoin on blocks to illustrate the blockchain

The highlights from last week’s headline grabbers. All the important news, numbers and events from the world of crypto in one place. 

News from the block

⛰️ BlackRock wants to list a Bitcoin ETF 

  • BlackRock announced last week its plans to launch a Bitcoin exchange traded fund (ETF) in the US.

  • Market analysts say the move could introduce much-needed liquidity in the market. It would making it easier for investors to buy and sell bitcoin, and make the price less susceptible to large trades. 
  • The move could also pave the way for institutional investors to enter the space by adding legitimacy to the industry. 
  • “If this were to get approved, then I could anticipate a lot more institutional investors adding bitcoin to their investment to their portfolios … it would institutionalise the market in a way that is not possible right now,” Gustavo Schwenkler, associate professor at the Leavey School of Business at Santa Clara University, told CNBC.

👍 Crypto law approved in the UK 

  • The UK Parliament approved the Financial Services and Markets Bill, which will recognise crypto as a regulated activity, and stablecoins as a means of payment under existing laws.
  • The bill is in the final phases of being passed into law. 
  • “Wherever possible, we want to see the same asset, the same transaction regulated in the same way. But there are some additional opportunities in the crypto asset or distributed ledger space and we want to take advantage of that,” Andrew Griffith, Economic Secretary to the Treasury, told CNBC.

🦅 Fed pauses interest rate hikes, for now 

  •  The Federal Reserve refrained from hiking interest rates last week during its June meeting, but Fed officials suggested more rate hikes may come in future. 
  • “Holding the target range steady at this meeting allows the committee to assess additional information and its implications for monetary policy … In assessing the appropriate stance of monetary policy, the committee will continue to monitor the implications of incoming information for the economic outlook,” the Fed said following its announcement. 
  • “Looking ahead, nearly all committee participants view it as likely that some further rate increases will be appropriate this year to bring inflation down to 2% over time,” Fed Chair Jerome Powell said. 

🟠 Bitcoin reached 50% market dominance for the first time in two years

  • Bitcoin market dominance, how much bitcoin makes up of the total crypto market cap, pushed past 50% for the first time in two years, according to data by TradingView.  
  • Market commentators say the increase in capital flows to BTC may be due to the BlackRock ETF announcement last week, coupled with regulatory scrutiny of newer third-generation cryptocurrencies. 

TL;DID read

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New to crypto or looking to expand your portfolio? Here are 5 things to consider when investing in crypto. 

Crunching the numbers

📉 4% – US inflation in May is down to 4%, the lowest since April 2021.

🔻 2% – The target inflation rate of the Fed. The current inflation rate in a developing nation like South Africa is currently around 6.8%, with a target of between 3 and 6%. 

🔵 70% – The crypto market dominance of bitcoin and ether (Ethereum) combined. 

👟 234 million – The number of registered gamers on Fortnite. Nike hinted last week it will be launching an NFT “sneaker hunt” that ties into the Fortnite ecosystem.

Crypto trivia

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