The Bank of England set new limits for individuals and companies to hold digital assets, as the market slowly comes out of fear. Crypto ETFs once again turned negative while the Fed made a statement about stablecoins. Read further to understand what happened today.
Bank of England sets new limits
The Bank of England (BOE) imposed an upper limit for individuals and companies holding certain digital currencies.
The BOE set a boundary on the amount of digital currencies that individuals and companies could hold. As such, individuals can hold up to 20,000 pounds while companies can hold up to 10 million pounds.
The financial institution set this limit to avoid a scenario where companies all of a sudden convert their funds into stablecoins, draining banks. Given that this massive migration happens, it will weaken the money-lending system.
Market moves slowly out of fear
The Fear and Greed Index has improved as it reaches the shallow end of the fear zone. CoinMarketcap’s Fear and Greed Index read a value of 22 yesterday, deep in the fear zone. However, the situation in the market got better as the indicator moved to 29.
Fed governor makes statement on stablecoins
The growing demand for stablecoin might reduce the interest rates further, stated Fed Governor Stephen Miran.
Addressing an audience of economists in New York, Miran stated, “Stablecoins may become a multitrillion-dollar elephant in the room for central bankers,”.
“Stablecoins are already increasing demand for U.S. Treasury bills and other dollar-denominated liquid assets by purchasers outside the United States, and this demand will continue growing.”
Crypto ETF netflow goes negative
The crypto ETF net flow once again turned negative after posting a positive figure yesterday. The ETF netflow hit $242 million yesterday, but today the ETFs leaked out more than $600 million, as traders moved funds from ETFs. Since the 29th of October, yesterday was the only day when the crypto ETFs saw a positive netflow.
BitMine acquires more Ethereum
Ethereum treasury firm BitMine Immersion Technologies bought more than 100K ETH over the last week, taking its total ETH holdings to 3.5 million ETH.
BitMine acquired 110,301 ETH, which is equivalent to $389 million. The total ETH held in the treasury is almost equivalent to $12 billion.
“The recent dip in ETH prices presented an attractive opportunity and BitMine increased its ETH purchases this week,” stated BitMine Chairman, Tom Lee.
CFTC chairman wants to launch leveraged spots
The acting chairman of the U.S. Commodities Futures Trading Commission, Caroline Pham, wants to launch leverage spot crypto trading in the United States of America. Pham has already had discussions with some regulated exchanges in the U.S., while the launch of these products is expected as early as December.
Pham brought about this move as the exchanges offering these leveraged services in the U.S. were Binance and OKX exchange, two foreign entities that lack regulatory oversight and investor protection.
