Appold Market Watch - Week 17 to 21 June 2024

Market Update & Industry News - Week ending 21 June 2024

🔷 Global Ethereum developer, Consensys, announced that it had received a notice from the U.S. Securities and Exchange Commission (SEC) stating that the SEC is closing its investigation into Ethereum 2.0. Consensys said the SEC will not bring charges alleging sales of ETH are securities transactions. Consensys has a litigation lawsuit over the SEC arguing that ETH is a security and should be regulated accordingly.

Appold view: Although the overall sentiment of this is positive, the Consensys lawsuit against SEC remains. Regulatory opaqueness and future legal challenges keep the market in a delicate position. 

🔷 National Australia Bank's (NAB) investment arm, NAB Ventures, invested in institutional-grade digital asset custodian, Zodia Custody. NAB joins a list of other global financial institutions such as Standard Chartered, Northern Trust and SBI Digital Asset Holdings in Zodia Custody’s expansion across the globe.

Appold view: A master move from Zodia, adding another banking powerhouse to their shareholder capital table. As well as heightening credibility, it allows them deeper client opportunities in the Southern Hemisphere.

🔷 The UK Financial Conduct Authority (FCA) in partnership with the UK Metropolitan Police arrested two suspects on alleged charges of operating an illegal crypto exchange. More than £1b of unregistered crypto was believed to be bought and sold through the business. Since January 2020 all cryptoasset companies operating in the UK are legally required to register with the FCA.

Appold view: It’s positive to see law enforcement take action following a deep investigation. The impact of the illegal exchange’s activities on retail clients is unknown at this stage.

🔷 Canadian Digital Asset Manager, 3iQ Corp, announced it had submitted a preliminary prospectus for North America’s first Solana Exchange Traded Product (ETP). If approved by the Ontario Securities Commission (OSC) the Solana Fund under the ticker QSOL will allow investors exposure to Solana’s long-term capital appreciation and yield generation.

Appold view: Given that this was an OSC submission, the assumption is that they will aim to list on the Toronto Stock Exchange (TSX), which has been one of the most progressive traditional exchanges for ETP activities in digital assets.

#Marketwatch #Blockchain #Investments