Digital assets regained relative strength last week, despite the final postponement of ETF approval or rejection, paving the way for long-term positivity.
Thought of the week
Digital Asset News
Germany’s Commerzbank has become the first universal bank in the country to receive a crypto custody license from local regulators.
Dr. Jörg Oliveri del Castillo-Schulz, Chief Operating Officer of Commerzbank, said the acquisition of the license was an “important milestone”:
“It underlines our previous commitment to the use of the latest technologies and innovations and is the basis for being able to accompany our customers in the area of digital assets.”
Initially, the bank now wants to set up a platform that is “secure and reliable” and compliant with regulations in order to offer its institutional clients custody of crypto assets based on blockchain.
Mike Belshe, CEO of cryptocurrency exchange BitGo, says things are looking good for Bitcoin spot ETFs. However, he emphasized that there will be challenges along the way.
In an interview with Bloomberg on November 16, Belshe said he is optimistic that approval is imminent based on discussions between companies applying for a bitcoin spot ETF and the U.S. Securities and Exchange Commission (SEC).
However, he also said the market structure needs to improve before the SEC grants final approval for a bitcoin ETF:
“I think it’s quite likely we’ll get another round of ETF rejections before we get the positive news.”
Belshe agrees with the SEC that crypto exchanges and custodians should be separated and emphasized that this condition must be met before approval.
Bitcoin transaction fees rise noticeably due to ETF hype.
The Bitcoin blockchain recorded transaction fees of USD 11.6 million on November 16 alone, an increase of a whopping 746% compared to the previous year.
According to a report by Cointelegraph, Bitcoin currently remains close to 18-month highs and above the long bear market price range. The cryptocurrency last traded at USD 36,407, an increase of 0.58% in the last 24 hours.
The price of Bitcoin has been rising since the influential asset manager BlackRock filed an application for a spot Bitcoin ETF with the US Securities and Exchange Commission (SEC) in June. Following BlackRock’s application, several other major asset managers in the US then filed similar applications, including Fidelity, ARK Invest and WisdomTree.
Digital Asset Market
From a chart perspective, Bitcoin continues to range around the newly formed annual high between ~$38,000 to ~$36,500.
Currently, the annual high seems to represent a strong resistance zone. Large investments are therefore likely to be held back temporarily in order to find a favorable entry point in the event of a volatile price breakout or market-driving news.
Due to the extension of the Sec’s deadline for Bitcoin spot ETFs until January, the current levels could remain with us for some time.
The next price targets in case of a positive development: ~$37,900, ~$38,750, ~$40,250
The next price targets in the event of negative performance: ~$36,000, ~$35,300, ~$33,850