According to Wall Street Journalthe largest crypto exchange in the world, Binance, is losing market share in the US, due to the exodus of cryptocurrency traders after the SEC legal tightening. In one week, the Binance subsidiary, which operates in the United States, Binance.US he lost more dell’1% in market share compared to the record of 27% achieved in April, according to Kaiko data.
Binance loses market share in the US
The exodus of investors started again in April and then accelerated following the move by the Securities and Exchange Commission (SEC), which sued Binance, Binance.US and the founder Changpeng Zhaoaccusing them of violating US securities laws.
On June 8, Binance.US announced that it would suspend US dollar trading on its platform, encouraging traders to withdraw their funds. CZ-based company struggled to maintain access to banks after crypto bank failure, Signature Bank.
According to analysts, the SEC lawsuits against Binance and Coinbase pose an existential threat to all cryptocurrency exchanges operating in the United States. Because if they are successful, they will shut down the vast majority of US-based trading services for industry investors.
On the other hand, Coinbase’s market share is growing
However, the SEC’s legal squeeze does not only concern Binance, the largest crypto exchange in the United States, Coinbase, is also in the crosshairs. However, in this case, the SEC’s lawsuit against Coinbase, filed on June 6, did not have such a large effect on the company’s business. Indeed, the market share of Coinbase in trading dollar-denominated cryptocurrencies grew to 56% on June 25 from 46% on June 1or. But the trading volume decreased by 9% until the June 19th.
Furthermore, the share price of Coinbase, listed on the Nasdaq has increased by 16% in June and on 126% year to date. But it remains down 48% from its IPO price after a disastrous 2022 for the entire crypto asset sector.
Recently, the largest asset manager in the world, BlackRock has formed a partnership with Coinbase for the launch of an exchange-traded fund with underlying Bitcoin spot, thus expressing a vote of confidence in the American exchange. The launch of this type of product has been submitted to the SEC for a feasibility assessment. Last week, the SEC Rejects Requests, Says Calls to Launch Bitcoin ETF by BlackRock and Other Finance Bigs Are Inadequate.
Rival exchanges Kraken and LMAX Digital also saw market share growth following the decline of Binance.US. Even Kraken based in the United States, has jumped to a market share of almost 27% on June 25 from 19% of April, also thanks to its strong presence in Europe.
Bitcoin, a new breakthrough coming?
In June, bitcoin prices had gone from 27,000 dollars up to a maximum of a $31420 on June 23rd. Write in a note Philip DiodovichSenior Market Analysis di IG.
“The return of enthusiasm for cryptocurrency has been linked to the decisions of some major asset management players (Blackrock, Fidelity Investments, Invesco, WisdomTree, Valkyrie, Ark Investment) to ask the SEC the authorization to launch new ETFs with underlying bitcoin spot, i.e. a derivative that follows the trend of bitcoin (in previous years ETFs on bitcoin futures were approved on the ProShares proposal). A new way to institutionalize Bitcoin more and more within the financial system and making it a real financial instrument, easily negotiable like a share.” Diodovich continues in the note. “Friday 30 June the SEC had announced a Nasdaq e Cboe that the demands of the big managers were inadequate and had rejected them. Asset managers considered the regulators’ concerns and resubmitted proposals for spot bitcoin ETFs.”
Bitcoin, i prossimi target
Now the decisions of the are awaited again SEC even if the doubts of many investors are related to the almost monopoly of Binance in the trading of bitcoin spot and futures. Explains Diodovich, “this could push the SEC to reject again the requests of the asset managers. In case of approval by the SECwe expect a Bitcoin climb well above $32,000 with a short-term target at 33,350. Otherwise, the fall could be disastrous towards $27,000.”