Cryptocurrency acceptance in this week

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The cryptocurrency space has gained massive acceptance in the past year. With JPMorgan providing wealthy clients with access to Bitcoin funds, this continues to grow.

For the crypto room, this month was very eventful. The crypto exchange Coinbase officially launched on the NASDAQ exchange, making it the most valuable company in the industry today. In the same week, Bitcoin reached a new all-time high close to $ 65,000, representing a 100% increase since the beginning of the year. Finally, Gary Gensler was announced as the new SEC chairman. This appointment caused optimism in the American crypto space, as it is believed that a Bitcoin ETF will soon appear.

The acceptance of cryptocurrencies by financial institutions continued this month when PayPal-owned company Venmo announced that its users will now be able to buy, sell and store cryptos on its platform. The over 70 million users of Venmo can now buy cryptocurrencies directly through the app. China recognized cryptocurrencies as fixed assets for the first time. A deputy governor of the PBoC said the Central Bank sees cryptocurrencies as an alternative investment vehicle and needs to introduce regulations to ensure the safety of investors. Finally, Facebook’s Diem project announced that it would launch its first stablecoin before the end of the year. Previously known as Libra, the project was launched in 2019, but faced regulatory challenges worldwide.

Here is a summary of this week’s news:

JPMorgan will provide retail customers with access to Bitcoin funds

As one of the largest investment banks in the United States, JPMorgan Chase will offer its retail clients access to Bitcoin funds. The $ 3 trillion bank is expected to roll out the service in the coming months to enable wealthy investors to incorporate the top digital currency. JPMorgan would follow in the footsteps of Morgan Stanley and Goldman Sachs. They have already started to offer such a service to their customers. The move would be a change of perspective for JPMorgan, as the bank and its CEO have been critical of Bitcoin and cryptocurrencies in the past.

PayPal CEO: interest in Cryptocurrencies was immense

PayPal entered the cryptocurrency space a few months ago. The CEO revealed that the demand for cryptos on their platform exceeded expectations. TIME magazine’s Dan Schulman said PayPal had been monitoring the crypto space for the past six years, but thought it was too early to start service offerings. However, he pointed out that demand on the crypto side was many times higher than what the company had expected. There is great excitement around cryptocurrencies as more and more people see alternative investment opportunities in them. The growth led PayPal subsidiary Venmo to start offering cryptocurrency services to its customers. Venmo customers can now buy, sell and hold cryptocurrencies directly through their account.

Tesla sold $ 272 million worth of Bitcoins

The electric car manufacturer Tesla has last earnings report it announced that it sold 10% of its Bitcoin holdings, earning $ 272 million. The company bought USD 1.5 billion worth of Bitcoins at the beginning of the year, making it one of the companies with the highest Bitcoin holdings. Tesla also began accepting Bitcoins as a means of payment for its electric vehicles. Despite the Bitcoin sale worth 272 million USD, Tesla still holds the cryptocurrency in the order of 2.5 billion USD. Tesla bought the Bitcoin when it was trading around 39,000 USD. The cryptocurrency rose to a new all-time high above $ 63,000 within a few months. The company remains one of the largest Bitcoin holders worldwide.

Germany opens the crypto space for institutional investors

One of the most important developments this week came from Germany. Europe’s leading economy passed new legislation that would allow thousands of institutional investment funds to invest up to 20% of their portfolios in cryptocurrencies. The law would allow more than 4,000 special funds to invest in the leading cryptocurrency. The development is enormous, considering that special funds control over 1.8 trillion dollars. The adoption of cryptocurrencies by these mutual funds could bring the crypto space almost 450 million dollars. The legislation is also intended to maintain Germany’s position as one of the leading global financial centers.

US SEC postpones Decision on VanEck’s Bitcoin ETF

The United States Securities and Exchange Commission (SEC) played out a familiar card this week when it postponed its decision to approve or reject the VanEck Bitcoin Exchange Traded Fund (ETF). It had been expected that the regulator would decide on the proposal in a few days. But now it has been postponed until June. The SEC normally has 45 days to make a decision after it has publicly confirmed that it has commenced consideration of an application. However, the Commission may extend its examination by up to 240 days after the first submission. The United States still needs to approve the first Bitcoin ETF application, while Canada approved three applications earlier this year.

Binance will soon launch its NFT marketplace

Binance, one of the world’s top crypto exchanges, will launch its non-fungible token (NFT) marketplace in June. The decision comes at a time when NFTs made headlines in several industries. NFTs have become a trend in industries such as art, music, film and sports. Binance insists that its NFT platform will provide users with the necessary liquidity to facilitate the trading of digital works of art. The exchange said the NFT marketplace will bring together artists, creators and crypto enthusiasts worldwide.

NFL stars Culkin and Lawrence accept Cryptocurrencies

Further news on the acceptance of cryptocurrencies came this week from the National Football League (NFL). Trevor Lawrence and Sean Culkin signed contracts where they will receive a large part of their salary and endorsements in cryptocurrencies. Trevor Lawrence signed an endorsement deal with Sam Bankman-Fried’s Blockfolio. As part of the contract, Lawrence has already received his bonus in Bitcoins. The payment was transferred to his personal block portfolio account. Sean Culkin is the first NFL player to agree to receive 100% of his salary in Bitcoins. The Kansas City Chiefs player will receive his salary of $ 920,000 this year in Bitcoins. Culkin said that his immense belief in cryptocurrencies as the ultimate store of value has convinced him to make the long-term investment.

Paxos becomes a state-certified crypto bank

Paxos is the latest cryptocurrency company to receive conditional approval for a banking license from the Office of the Comptroller of the Currency (OCC). This approval makes Paxos a state-certified bank. The permit allows Paxos to operate in all states of the United States. Obtaining OCC approval allows a company to operate more easily, as it does not have to obtain an individual banking license from each state. Paxos now joins Anchorage and Protego, which received their OCC approval earlier this year.