BTSE Weekly Digital Asset Report – March 1st

Welcome to our weekly market roundup, where we provide insights into the notable trends and price movements that are shaping the world of digital assets. Bitcoin (BTC), the leading cryptocurrency by market capitalization, reached a high of $64K, marking its highest level since November 2021, before experiencing a significant correction to $59K. Analysts attribute this week’s market volatility to a combination of factors, including Morgan Stanley’s consideration of spot Bitcoin ETFs and the record-breaking trading volumes spurred by BlackRock’s Bitcoin ETF. Such milestones not only reflect the market’s vibrant dynamics but also signify the growing integration of cryptocurrencies into mainstream finance. With Bitcoin poised to close February with a 44% gain, its largest monthly advance since December 2020, and U.S.-listed spot bitcoin ETFs seeing high demand against a backdrop of constrained supply, the narrative around cryptocurrencies is increasingly one of legitimacy and long-term potential. Reports from Bloomberg indicate that major financial institutions like Bank of America’s Merrill Lynch and Wells Fargo are now offering spot bitcoin ETFs to their clients, further emphasizing the sector’s broadening appeal.

Web3 News

• Bank of America and Wells Fargo Offer Bitcoin ETFs: Bank of America’s Merrill Lynch and Wells Fargo are broadening their financial services by offering spot bitcoin exchange-traded funds (ETFs) to their clients. This development, reported by Bloomberg, introduces cryptocurrency investment opportunities directly through major U.S. brokerages. 
• Blast’s Mainnet Launch: The Ethereum Layer 2 network Blast has officially launched its mainnet, allowing over 180,000 early access users who have collectively locked over $2.3 billion in assets, to withdraw their funds. Created by Tieshun Roquerre, founder of the NFT marketplace Blur, Blast aims to offer a native yield model for ether and stablecoins, promising interest rates of 4% for ether and 5% for stablecoins. 

• IOTA Invests in Digital Trade Startups: IOTA’s Ecosystem Foundation, based in the UAE, is investing $10 million in startups focused on digital trade and the tokenization of real-world assets. This strategic move aims to foster the development of trade technology ventures in the UAE and Africa, marking IOTA’s commitment to enhancing the global trade ecosystem through blockchain technology.

• US Lawmakers Block SEC Crypto Custody Rules: In a notable bipartisan effort, the U.S. House Financial Services Committee has voted to overturn SEC’s Staff Accounting Bulletin No. 121, which had previously restricted banks from offering crypto custody services. This move, championed by both Republican and Democrat representatives, aims to protect consumers by enabling highly regulated banks to act as custodians for digital assets. 

• Clone Launches on Solana: Clone, a new protocol on the Solana blockchain, announced the launch of its public mainnet, introducing “cloned assets” or “clAssets” for trading non-native tokens. This innovation aims to simplify the trading process on Solana, allowing users to leverage the blockchain’s fast transaction speeds and low fees without leaving the Solana ecosystem. 

• Robinhood to Add Access to Arbitrum Swaps: Robinhood announced at ETHDenver that its Robinhood Wallet users will now be able to access swaps on Arbitrum, a layer-2 blockchain, leading to an over 11% surge in Arbitrum’s ARB token. This integration aims to simplify access to decentralized finance for Robinhood’s users, enhancing cross-chain swaps and reducing barriers to Web3 usage.