Banks in Spain are reportedly getting ready to offer cryptocurrency services to their clients, but the country’s central bank, the Bank of Spain, hasn’t provided them regulatory clarity. The Bank of Spain said it would provide instruction in June, however, the banks are still waiting.

Less than a week after becoming the second-most heavily traded fund on record in its debut, the ProShares Bitcoin Strategy ETF (BITO), is looking to change the way the ETF is run, as it filed for an exemption from trading limits at the Chicago Mercantile Exchange (CME).

New York-based decentralized prediction market Polymarket is reportedly being investigated by the U.S. Commodity Futures Trading Commission (CFTC). Specifically, the CFTC is investigating whether Polymarket is allowing its customers to trade binary options and swaps.

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Top stories in the Crypto Roundup today:

• Spanish Banks Are Reportedly Getting Ready to Offer Crypto Services
• ProShares’ Bitcoin Futures ETF Files for Trading Limits Exemption
• Decentralized Prediction Market Polymarket Targeted by CFTC Probe
• Chart of the Week: Bitcoin Price vs. ETP Flows
• Sponsored: Check Out The Newest Liquidity Mining Pool on Curve Finance

Spanish Banks Are Reportedly Getting Ready to Offer Crypto Services

Banks in Spain are reportedly getting ready to offer cryptocurrency services to their clients, but the country’s central bank, the Bank of Spain, hasn’t provided them regulatory clarity. The Bank of Spain said it would provide instruction in June, however, the banks are still waiting.

The corresponding registry is meant to be operational by October 29, but there’s still uncertainty as to whether the registry is made for financial institutions that are already regulated entities. The registry aims to combat money laundering.

Gloria Hernández Aler, a partner at regulatory firm finReg360, said:

“It would not make sense for a bank to have to go through the requirements imposed, since these entities are already directly supervised,”

Aler added that it does make sense for banks to notify that they are going to provide cryptocurrency-related services, as this could result in a change to their money laundering policies.

ProShares’ Bitcoin Futures ETF Files for Trading Limits Exemption

Less than a week after becoming the second-most heavily traded fund on record in its debut, the ProShares Bitcoin Strategy ETF (BITO), is looking to change the way the ETF is run, as it filed for an exemption from trading limits at the Chicago Mercantile Exchange (CME).

ProShares uses the Chicago Mercantile Exchange to purchase futures contracts that add BTC exposure to the Bitcoin ETF. The firm is also looking to use swaps if it needs to, which would help it maintain BITO with proper BTC exposure.

Currently the CME caps the number of bitcoin futures contracts that expire in the same month at 2,000. ProShares can hold a maximum of 4,000 contracts for November and 5,000 overall. It’s now holding 76% of its limit.

BITO invests 25% of investors’ cash in a Cayman Islands subsidiary, which then buys bitcoin futures at the CME. The remaining 75% are invested in treasury securities and the repo market. ProShares is considering moving the remaining 75% to products that correlate with the price of bitcoin or other cryptocurrencies, which could include crypto-related stocks.

Decentralized Prediction Market Polymarket Targeted by CFTC Probe

New York-based decentralized prediction market Polymarket is reportedly being investigated by the U.S. Commodity Futures Trading Commission (CFTC). Specifically, the CFTC is investigating whether Polymarket is allowing its customers to trade binary options and swaps.

To offer these products, the market would have to be registered with the financial regulator. A Polymarket spokesperson has stated it is “firmly committed to complying with applicable laws and regulations and to providing information to regulators that will assist them with any inquiry.”

Polymarket has reportedly engaged the former director of the regulator’s enforcement division James McDonald to address the probe. Polymarket offers predictive markets that allow users to speculate on the outcome of future events.

Chart of the Week: Bitcoin Price vs. ETP Flows

Average weekly inflows into bitcoin exchange-traded products (ETPs) turned positive in September after three months of net outflows. In October the trend continued, with net inflows totaling $315 million so far this month, up from $31.2 million in September.

October’s inflows coincide with a steep rise in price for the asset, which has returned 43% thus far in October, reaching an all-time high price of $66,981 on October 20th.

Average weekly inflows into Ethereum products have been steadily positive since June, averaging from $3.1 million to $10.9 million. In the 2nd week of October, Ethereum products saw marginal outflows of $0.9mn, likely due to the recent news surrounding a Bitcoin ETF.

Inflows tend to coincide with higher moves upward in price, however investors may buy into digital asset products at a peak, which occurred in mid-May before Bitcoin fell 35.2% in just seven days.

Check out our latest Chart of the Week below. Click “read more” for more CryptoCompare research.

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