Bitcoin spot ETFs could increase BTC demand to the tune of $30 billion, according to a report by NYDIG. The crypto trading firm estimates that there are $27.6 billion in spot-like products, compared with $210 billion invested in funds for gold, to which bitcoin is often compared. El Salvador’s junk-rated bonds due 2027 have seen a substantial upward trend in the last six months amid bitcoin’s rally, defying some analysts’ expectations. The Central American country, which made BTC legal tender in 2021, had its debt rating downgraded by Fitch last September with a prediction of a debt default in January. In fact, the junk-rated bonds are up 62% since the start of 2023 and are trading at 72 cents on the dollar. Kuwait’s financial regulator has banned crypto payments, investment, and mining as a means to combat money laundering.
The possibility of a spot bitcoin ETF in the U.S. looks far more likely since BlackRock submitted an application to list one with a “surveillance-sharing” agreement, which the SEC sees as necessary to prevent market manipulation. Bitcoin rose 79% in the same period as El Salvador’s bonds, and Kuwait’s financial regulator has banned crypto payments, investment, and mining as a means to combat money laundering. FATF compliance does require guardrails against money laundering, but the international watchdog says it has not asked any countries to ban crypto.
The news of a potential Bitcoin spot ETF and the performance of El Salvador’s bonds, as well as Kuwait’s ban on crypto payments, investment, and mining, are all important developments in the crypto markets.