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Bitcoin has been stalling its price action this week, while the second-largest cryptocurrency by market capitalization, Ethereum, has stolen the spotlight. Ethereum has recorded multiple new record highs this week, reaching nearly $2,800. Polygon (MATIC) also surged to an all-time high at $0.93, riding off of an influx of partnerships and adoption across the decentralized finance (DeFi) and non-fungible token (NFT) space.

Crypto Weekly Update

Undoubtedly, institutional adoption of cryptocurrencies is on the rise. Ethereum has witnessed greater interest as exchange-traded products had an inflow of $34 million last week, according to CoinShares. 

BNY Mellon laments not buying Bitcoin-related shares

The oldest bank in America, BNY Mellon, had an underperformance recently as revealed by its filing with the Securities and Exchange Commission (SEC). The bank stated that the recent performance of one of its exchange-traded funds (ETFs) was significantly impacted by its lack of exposure to the world’s largest cryptocurrency — Bitcoin.

The SEC filing also disclosed that the firm regrets not purchasing shares in MicroStrategy — a firm known for its Bitcoin bet since August last year. The Nasdaq-listed firm currently has an aggregate holding of over 91,000 Bitcoin. 

Instead, the American bank noted a position in a gold mining company, which “hampered performance as shares were hurt by weak gold prices.”

MicroStrategy, the business intelligence firm that was one of the pioneer institutions that dived into the crypto space revealed its first-quarter earnings today. The firm believes that Bitcoin is a store of value and allocated billions of dollars of Bitcoin as part of its capital allocation strategy. 

However, the firm also shared that it may increase or decrease its Bitcoin holdings in the future.

VanEck Bitcoin ETF decision delayed until June

Although Fox News Correspondent Charles Gasparino said that SEC chair Gary Gensler was likely to “throw the Republicans a bone” by approving a Bitcoin ETF, the regulator has not done so.

VanEck applied for a Bitcoin ETF in December 2020. The SEC decided to extend its 45-day clock on a decision for another 45-days, for a total of 90 days. The securities regulator has until June 27 to make a decision. 

This Bitcoin ETF joins a few other ones filed recently, including proposals by Fidelity, Wisdom Tree, and Galaxy Digital. Despite Grayscale dominating the crypto fund market, Bitcoin and Ethereum ETFs have gained popularity in Canada, where these products have been approved in the past few weeks.

Paxos raises $300 million and to form a trust bank

PayPal’s cryptocurrency collaborator, Paxos, has announced a new $300 million Series D funding round, taking its valuation to $2.4 billion. The crypto company has also received preliminary approval to form a national trust bank.

Paxos plans to establish the Paxos National Trust Bank and also applied for a clearing agency registered with the SEC. The firm is further pursuing a Major Payment Institution license in the crypto-friendly jurisdiction Singapore. 

What is coming for the week ahead?

Ripple is expecting a discovery hearing today in the SEC v. Ripple legal battle. The Ripple co-founders, CEO Brad Garlinghouse and Chris Larsen, have challenged the SEC’s responses on the use of memoranda of understanding with foreign regulators. The blockchain company asks the judge to compel the SEC to produce relevant documents on Bitcoin, Ethereum, and XRP. 

XRP price has surged ahead of the hearing, and the cross-border remittance cryptocurrency has risen over $1.50, up by over 8% in the past 24 hours. However, a loss of confidence in the case could lead to some XRP price volatility. Therefore, always follow your strategy, manage your risks and stay safe out there.

To better manage your risks, you could identify points of interest, including support and resistance zones, and set stop-loss and take-profit around these areas. To do this on a crypto exchange would be difficult, as you can only either set a stop-loss or a take-profit, hindering your chances of properly executing a successful trade. 

That is why we built CoinPanel, which enables you to set an entry order, stop-loss, and take-profit simultaneously, with your strategies and technical and fundamental indicators. CoinPanel acts as your personal trading assistant, and automatically executes your trades according to your pre-set strategies.

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