Market experts are seeing the recent settlement between Binance and the US government as a bullish development for Bitcoin and the entire altcoin industry, heightening expectations for spot ETFs in the near future.
The departure of former Binance Holdings Ltd CEO Changpeng Zhao, coupled with a $4.3 billion fine as part of the settlement, has unexpectedly become a positive signal for Bitcoin (BTC) and the broader altcoin market. According to the latest market data, the flagship cryptocurrency has experienced a 2.6% gain, reaching approximately $37,317 during the early Asian session on Thursday. Similarly, Ethereum (ETH), Uniswap (UNI), and Solana (SOL) led the altcoin market with gains in the past 24 hours. As a result, the total cryptocurrency market cap has increased by about 3.1% in the last 24 hours, reaching around $1.48 trillion.
“Binance $4.3B Settlement Unlocks the Door for Spot Bitcoin ETFs”
The historic settlement between Binance and the US Department of Treasury has instilled confidence among investors in the cryptocurrency market, particularly in the flagship coin. Will Clemente, a co-founder at Reflexivity Research, suggests that top fund managers, led by BlackRock Inc (NYSE: BLK), played a role in pushing Binance out of the United States, potentially clearing the path for spot Bitcoin ETFs. Additionally, an increase in crypto trading volume on US-based exchanges could give the US SEC a stronger reason to approve a dozen spot ETFs.
Stijn Paumen, CEO at Helio, views Zhao’s departure from Binance’s top position as the end of an era. Clemente also notes that the timing of clarity on Binance, coupled with the approaching ETF deadline for Ark, raises questions about the role of major players like BlackRock.
Interestingly, US SEC Commissioner Hester M Peirce indicated on Wednesday that there might be reasons for the agency to support a Bitcoin spot ETF. The absence of a regulated avenue for Americans to invest in the crypto market has led them to unregulated exchanges like FTX, causing significant concerns. Furthermore, the growing demand for a better hedge against rising inflation has prompted investors to divert from traditional investment products like treasury bonds.
