BlackRock, the world's largest asset manager, has seen its application to offer a spot Bitcoin exchange-traded fund (ETF) added to the Securities and Exchange Commission's (SEC) official schedule as part of its proposed rule change procedure.

The crypto industry has scored a landmark victory with a U.S. Southern District Court ruling in partial favour of Ripple, the payment network, according to a research note from banking titan J.P. Morgan

Leading cryptocurrency exchange Binance, in an effort to expedite transactions and reduce mounting transaction fees, has integrated the Bitcoin Lightning Network on its platforms, allowing for more cost-efficient BTC withdrawals and deposits

Top stories in the Crypto Roundup today:

• BlackRock’s Spot Bitcoin ETF Proposal Moves Forward with SEC Review
• J.P. Morgan Hails Ripple’s Legal Win as a Milestone for Crypto Industry
• Binance Integrates Bitcoin Lightning Network Deposits and Withdrawals
• Blockchain Transaction Fees Remain High, Hindering Entry, Adoption, and Inclusiveness

BlackRock’s Spot Bitcoin ETF Proposal Moves Forward with SEC Review

BlackRock, the world's largest asset manager, has seen its application to offer a spot Bitcoin exchange-traded fund (ETF) added to the Securities and Exchange Commission's (SEC) official schedule as part of its proposed rule change procedure.

The move is a significant stride forward for the spot Bitcoin ETF proposal, and comes nearly a month after BlackRock submitted its application for the iShares Bitcoin Trust. BlackRock’s filings spurred a series of spot Bitcoin ETF filings from numerous financial giants including Fidelity and Invesco.

When the SEC hinted last month that BlackRock's proposal was deficient, the firm submitted a modified application that included a "surveillance sharing" agreement with the Nasdaq-listed cryptocurrency exchange Coinbase.

Filings from other financial behemoths, including that of Valkyrie, Fidelity, and ARK Invest, also included surveillance sharing agreements with Coinbase, meant to oversee and report on potential illegal activities.

Despite the launch of a Bitcoin ETF based on Bitcoin futures earlier this year, the cryptocurrency industry regards a spot ETF, pegged to the spot price of the cryptocurrency, as a key achievement. The SEC's resistance to approve such a fund has drawn criticism from the industry, with similar products already trading outside of the US.

BlackRock’s application is now on the SEC’s official calendar and will be published in the Federal Register, which will trigger a 21-day public comment period.

J.P. Morgan Hails Ripple’s Legal Win as a Milestone for Crypto Industry

The crypto industry has scored a landmark victory with a U.S. Southern District Court ruling in partial favour of Ripple, the payment network, according to a research note from banking titan J.P. Morgan

The bank’s analysts wrote that large amounts of capital have been “reticent to engage in the industry with unclear rules of the road, while the related overhang has also slowed innovation, adoption, and just overall crypto ecosystem valuation, in our opinion — accelerating as regulatory actions heated up over the past year.”

They added the ruling is “undoubtedly a milestone win for the industry” as it provides legal clarity and “defense around what does and does not constitute a security.” The overall outcome, they wrote, is in line with what many in the industry have been arguing.

The note comes after a federal judge in New York determined that the XRP token "is not necessarily a security on its face.” The ruling came after the SEC sued Ripple back in 2020 for alleged violation of U.S. securities laws, arguing that the firm sold XRP without prior registration with the agency.

Judge Analisa Torres has now ruled on the lawsuit, that XRP was a security when Ripple sold it to institutional investors years ago, but not to the public. While the ruling is decidedly a step in the right direction for Ripple, J.P. Morgan cautioned that the regulatory challenges for the crypto industry are far from over as the SEC has the option to appeal the ruling and will likely continue its pursuit of similar cases in the future.

Binance Integrates Bitcoin Lightning Network Deposits and Withdrawals

Leading cryptocurrency exchange Binance, in an effort to expedite transactions and reduce mounting transaction fees, has integrated the Bitcoin Lightning Network on its platforms, allowing for more cost-efficient BTC withdrawals and deposits

This novel integration means that when Binance users wish to deposit or withdraw Bitcoin, they now have the option to select "LIGHTNING" along with other existing alternatives like BNB Smart Chain (BEP-20), Bitcoin, BNB Beacon Chain (BEP2), BTC (SegWit), and Ethereum ERC-20.

Earlier hints of this development emerged in May when Binance had to temporarily suspend BTC withdrawals over a deluge of pending transactions propelled by skyrocketing BTC transactions that led to an increase in the mempools and rising transaction fees.

With this development, Binance joins a list of prestigious exchanges, such as Bitfinex, River Financial, OKX, Kraken, and CoinCorner, that have integrated the Lightning Network into their platforms. Coinbase CEO Brian Armstrong has also signaled an intention to integrate the network, but stopped short of providing a timeline for it.

Blockchain Transaction Fees Remain High, Hindering Entry, Adoption, and Inclusiveness

Most transactions take place on blockchains that charge high fees, even though there are blockchains with low fees available. The average fee needed to transact on the blockchains and protocols analyzed is $2.98.

This high fee requirement limits the entry, adoption, and accessibility of blockchains and affects their inclusiveness

Learn more via CCData’s ESG Benchmark report, the industry’s first institutional-grade report for ESG-focused investors, at a time in which ESG mandates are becoming increasingly prevalent amongst institutional investors and funds, with global ESG-related assets under management (AUM) forecasted to reach $33.9 trillion by 2026.

State of the Crypto by Top Tier Exchange Volume

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