How Wall Street Escaped the Crypto Meltdown
— Funds linked, Escaped, Exchange, Exchange commission denied, Sink rapidly, Grayscale asked regulators, Traded fund, Price, Petition challenging, Permission — 1 min read
Wall Street banks sought ways to participate in the crypto market, but regulators wouldn’t allow it. Basel Committee on Banking Supervision proposed giving digital tokens like Bitcoin and Ether the highest possible risk weighting. U.S. bank regulators have also warned banks to stay away from activities that would land cryptocurrencies on their balance sheets. Banks thus ended up offering clients limited products related to crypto, allowing them an entree into this emerging world without running afoul of regulators. Grayscale asked regulators for permission to transform the fund into an exchange-traded fund, which would make trading easier and thus align its shares more closely with the price of Bitcoin. Last Wednesday, the Securities and Exchange Commission denied the request to change the request. Source