Over the weekend, the price of Bitcoin crossed the $40,000 mark for the first time since May 2022, an increase attributed to expectations of lowered interest rates and growing demand ahead of an expected spot Bitcoin exchange-traded fund (ETF) launch.

Cryptocurrency storage provider Zodia Custody, backed by Standard Chartered, is collaborating with Ripple's Metaco to join their network, aimed at secure storage and settlement of digital assets for global institutions.

Financial services platform SoFi is shutting down its cryptocurrency operations after introducing crypto trading for its users in 2019, with new account creations having already been disabled and users having to migrate their accounts to Blockchain.com.

Top stories in the Crypto Roundup today:

• Bitcoin Price Breaks $40,000 Barrier for First Time Since May 2022
• Standard Chartered-Backed Zodia Custody Joins Ripple’s Metaco Network
• Financial Services Platform SoFi to Close Its Crypto Business
• Solana Investment Products’ AUM Rose Nearly 100% in November

Bitcoin Price Breaks $40,000 Barrier for First Time Since May 2022

Over the weekend, the price of Bitcoin crossed the $40,000 mark for the first time since May 2022,  an increase attributed to expectations of lowered interest rates and growing demand ahead of an expected spot Bitcoin exchange-traded fund (ETF) launch.

Bitcoin is currently trading close to $41,600 after rising more than 150% year-to-date, trading at a level last seen before the collapse of the Terra ecosystem that deepened a then ongoing crypto market correction.

As inflation drops, investors appear to be more confident the Federal Reserve and other central banks will stop raising interest rates, with that change fueling growth in global markets.

The cryptocurrency industry is also looking forward to the results of applications from companies such as BlackRock, Invesco, and Fidelity to launch the first spot Bitcoin ETFs in the United States.

Bitcoin has managed to maintain its momentum amid a major crackdown on leading cryptocurrency trading platforms in the U.S. after the collapse of FTX, with Binance recently settling with a coalition of regulators for $4.3 billion.

Standard Chartered-Backed Zodia Custody Joins Ripple’s Metaco Network

Cryptocurrency storage provider Zodia Custody, backed by Standard Chartered, is collaborating with Ripple's Metaco to join their network, aimed at secure storage and settlement of digital assets for global institutions.

Crypto storage and settlement networks, where assets stay in custody to avoid counterparty risk, have been gaining popularity after a plethora of bankruptcies affected the cryptocurrency space last year.

Zodia custody’s CEO, Julian Sawyer, noted the evolution of crypto infrastructure, drawing parallels to traditional finance. Various networks, such as Copper Clear Loop partnering with BitGo’s Go network and Fireblocks’ off-exchange self-custody systems, exemplify this trend, with Zodia having its Interchange network.

The partnership with Metaco aims to provide global sub-custody services, a practice where one institution hires another to hold assets. Sawyer pointed to this as an advanced form of crypto custody, facilitating global asset storage and regulatory compliance.

Zodia Custody, currently registered in the UK, Ireland, and Luxembourg, recently expanded to Singapore while Zodia Markets, also supported by Standard Chartered, received preliminary approval to function as an OTC crypto broker-dealer in Abu Dhabi.

Financial Services Platform SoFi to Close Its Crypto Business

Financial services platform SoFi is shutting down its cryptocurrency operations after introducing crypto trading for its users in 2019, with new account creations having already been disabled and users having to migrate their accounts to Blockchain.com.

Existing users have a three-week window to transfer their cryptocurrency holdings to Blockchain.com, before their accounts are automatically liquidated. The migration process, however, faces geographical limitations as users in certain states will have to sell unsupported assets such as Avalanche’s AVAX.

As of the third quarter, SoFi held nearly $140 million in cryptocurrencies, predominantly in Bitcoin (approximately $75 million) and Ethereum (around $47 million).

The move was reportedly influenced by increased regulatory scrutiny in the crypto sector. SoFi's bank charter, obtained in January 2022, was contingent on regulatory approval of its crypto business within two years, extendable by up to three additional years. The firm had, in its annual report, acknowledged the possibility of shutting down its crypto operations.

Solana Investment Products’ AUM Rose Nearly 100% in November

Last month, investment products based on Bitcoin saw a substantial rise, with their Assets Under Management (AUM) growing by 12.5% to approximately $31.8 billion, with the increase representing an annual growth of 140%.

Ethereum-based products also experienced notable growth, with a 17.8% increase in their monthly valuation, pushing their total value to over $8.55 billion. This marks a significant year-over-year increase of 75.6%.

The basket category, whose products offer exposure to a variety of crypto assets, also saw growth, with a 12% increase in AUM to $1.57 billion. Notably, products based on Solana demonstrated an exceptional monthly growth of nearly 99.9%, bringing their AUM to roughly $424 million.

Dig deeper into the world of cryptocurrency trading with CCData’s latest Digital Asset Management Review.

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