Invesco, an investment management giant with $1.4 trillion in assets under management, has made a second pass a spot Bitcoin exchange-traded fund (ETF), after first filing for one in 2021 in conjunction with Galaxy Digital.

Germany's largest banking institution, Deutsche Bank, has reportedly submitted an application for a digital asset custody license to the Federal Financial Supervisory Authority (BaFin), the nation's financial watchdog.

Leading cryptocurrency exchange Binance has confirmed it started running Bitcoin Lightning Network nodes as part of its plan to integrate the layer-2 scaling solution for deposits and withdrawals on its platform.

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Top stories in the Crypto Roundup today:

• Invesco Makes Second Attempt at Spot Bitcoin ETF
• Deutsche Bank Applies for Crypto Custody License
• Binance Sets Up Lightning Network Nodes as it Prepares for Layer 2 Integration
• Open Interest Plummets Following Largest Liquidation Event Since FTX

Invesco Makes Second Attempt at Spot Bitcoin ETF

Invesco, an investment management giant with $1.4 trillion in assets under management, has made a second pass a spot Bitcoin exchange-traded fund (ETF), after first filing for one in 2021 in conjunction with Galaxy Digital.

The firm’s original plan also saw it file for a Bitcoin futures ETF, in an effort that was dropped in October 2021 after a futures ETF from ProShares was approved and started trading first. Invesco’s application builds a case that the absence of a spot bitcoin ETF propels investors to riskier options.

These riskier options, Invesco said, were seen in the insolvencies of cryptocurrency firms including FTX, Celsius Network, BlockFi, and Voyager Digital. The company underscored the pressing need for measures to shield investors from these precarious scenarios.

Invesco holds that the key to ensuring a spot bitcoin ETF receives regulatory approval lies in establishing a surveillance-sharing agreement with a heavily-regulated market. The approach aligns with that of the world’s largest asset manager BlackRock, which filed for a spot Bitcoin ETF last week.

Such surveillance-sharing agreements could considerably mitigate the risk of market manipulation by enabling the sharing of data regarding trading activities, clearing procedures, and customer identification.

Deutsche Bank Applies for Crypto Custody License

Germany’s largest banking institution Deutsche Bank has reportedly submitted an application for a digital asset custody license to the Federal Financial Supervisory Authority (BaFin), the nation’s financial watchdog.

The move is part of the bank’s strategy to broaden its revenue sources and follows a similar trend seen in the bank’s investment subsidiary, DWS Group, which has been looking to expand its digital asset custody services.

DWS Group had previously expressed interest in two German cryptocurrency firms: Deutsche Digital Assets, a provider of crypto exchange-traded products, and market maker Tradias.

The intention to offer digital asset-related services was first disclosed by the bank’s corporate division in 2020, though no specific timeline was provided for the launch.

Earlier this year, Deutsche Bank Singapore, in collaboration with Memento Blockchain, successfully piloted a tokenized investment platform called Project DAMA (Digital Assets Management Access). The platform, complete with its proprietary token, introduced a direct fiat-to-digital on-ramp for users.

Binance Sets Up Lightning Network Nodes as it Prepares for Layer 2 Integration

Leading cryptocurrency exchange Binance has confirmed it started running Bitcoin Lightning Network nodes as part of its plan to integrate the layer-2 scaling solution for deposits and withdrawals on its platform.

The exchange first said it was planning to integrate the Lightning Network on social media on May 8, in response to congestion the Bitcoin network was then facing. In its recent revelation, Binance said there’s “still more tech work to be done.”

Competing exchanges, such as Kraken and Bitfinex, have already integrated the Lightning Network, which enables low-cost and high-speed transactions on Bitcoin as a Layer 2 solution. The Lightning Network is said to be able to handle 1 million transactions per second.

Open Interest Plummets Following Largest Liquidation Event Since FTX

 

The current market upheaval has notably impacted Open Interest (OI), one of the key indicators of liquidity and interest. The SEC’s announcement of a lawsuit on June 5th triggered a massive sell-off of Bitcoin long positions, an event that hasn't occurred since the downfall of FTX.

This led to a 4.51% drop in the overall open interest in the markets within just an hour, underscoring the high degree of leverage at play in these markets.

Find out more via CCData’s latest report, The SEC Effect, which explores how regulatory scrutiny has impacted liquidity across markets, particularly in the United States.

State of the Crypto by Top Tier Exchange Volume

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