Many industry observers say Binance’s $4.3 billion settlement with the United States is the final hurdle before U.S. securities regulators can approve a spot Bitcoin exchange-traded fund (ETF).
The settlement involves Binance agreeing to a five-year period with compliance monitors from the Justice and Treasury Departments, allowing those agencies broad powers to make the exchange comply with anti-money laundering and sanctions rules, among other things.
SEC cites market manipulation in rejecting spot Bitcoin ETF Binance’s market dominance must take a hit before BlackRock’s spot BTC ETF application can be approved, according to Posted by Travis Kling, chief investment officer of Ikigai Asset Management, on June X (Twitter).
“With Binance’s current market dominance, the chances of this ETF getting approved are zero, and I mean zero,” Kling wrote. “If this ETF is approved, Binance will either disappear completely or its role in price discovery will be significantly diminished.”
Okay, let’s get started. https://t.co/fJ7c3MpaTy
— Travis Kling (@Travis_Kling) November 21, 2023
Kling’s predictions prompted others to consider how closely BlackRock could work with the U.S. government to gain a favorable position in the spot Bitcoin ETF market. YouTuber “Colin Talks Cryptocurrency” explain It is suspected that Binance’s settlement occurred “before the Bitcoin ETF was launched.”
“Is this a way for BlackRock to acquire large amounts of Bitcoin on the cheap?” he asked. “Is this a way to eliminate competition in the U.S. market before the ETF comes online?”
Does this look suspicious to anyone else? #binance Just before being convicted of money laundering #bitcoin #ETF come out?
Is there any connection?
For example:
• Is this a way for BlackRock to get a lot of Bitcoin cheaply/for free?
• Is this a way to delete…?— Colin talks cryptocurrency (@ColinTCrypto) November 21, 2023
others famous BlackRock and its rival Vanguard hold a combined 11.5% stake in Coinbase, Binance’s biggest rival, and have speculated that the action against Binance may be planned.
BlackRock met with the SEC on November 20 to introduce how to use a physical or cash redemption model for its spot BTC ETF (iShares Bitcoin Trust).
Binance/DOJ Settlement and SEC Spot #bitcoin ETF approval is mutual.
— Andrew (@AP_Abacus) November 20, 2023
Grayscale also met with securities regulators that day to discuss its listing of a spot Bitcoin ETF. Fidelity, WisdomTree, Invesco Galaxy, Valkyrie, VanEck and Bitwise are also awaiting SEC approval for their spot Bitcoin funds.
related: Binance CEO CZ’s downfall is ‘the end of an era’ – Charles Hoskinson
Mike Novogratz, CEO of digital asset investment company Galaxy Digital explain The Binance settlement agreement is “super positive” for the cryptocurrency industry.
Not everyone understands the point of speculating whether the Binance news will lead to the approval of a spot BTC ETF.
Piper Alderman partner Michael Bacina said in a report to Cointelegraph that it is best to let such speculation run its course.
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