Bitcoin has surged back above the $100,000 mark, reaching a peak of $102,700. This rally is driven by strong ETF demand, rising US investor confidence, and optimism ahead of Trump’s inauguration. Bitcoin has gained nearly 50% since the presidential election amid optimism the incoming Trump administration and a pro-crypto Congress will adopt policies that benefit the digital currency.
I would have predicted a rough patch for the [bitcoin] ETFs given the drop below $100k (overdue for a breather) but no, they roared back with nearly $1b Friday, which lifted the 1W to positive net, Bloomberg ETF analyst Eric Balchunas noted on X.
Backpack’s Announcement: Backpack Exchange has officially acquired FTX EU, the European arm of the defunct FTX exchange. This acquisition, approved by the FTX bankruptcy court and the Cyprus Securities and Exchange Commission (CySEC), marks a significant step in Backpack’s expansion across the European Union.
The collapse of FTX in November 2022 sent shockwaves through the cryptocurrency industry, highlighting several critical issues and prompting significant changes. Here are some key implications. The FTX collapse underscored the need for stricter regulatory oversight in the crypto industry. Regulators worldwide have since increased their focus on ensuring transparency, accountability, and consumer protection in crypto exchanges.
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The bankruptcy of FTX, once one of the largest cryptocurrency exchanges, severely impacted investor confidence. Many investors became more cautious, leading to a temporary decline in crypto market activity
Key Highlights:
Backpack Exchange was established by former employees of Alameda Research and FTX, bringing a wealth of experience and expertise to the platform. The platform offers a range of services, including crypto trading, a non-custodial wallet, and tools for managing NFTs and DeFi assets, Backpack Exchange is designed to be accessible and easy to use, catering to both retail and institutional investors.
Regulatory Approval: The acquisition was approved by the FTX bankruptcy court and CySEC, allowing Backpack to offer regulated crypto trading services in the EU. FTX’s failure highlighted the importance of robust operational practices and governance in crypto exchanges. Issues such as poor risk management, lack of transparency, and inadequate internal controls were brought to light, prompting other exchanges to reassess and improve their practices.
Launch Plans: Backpack EU is set to go live in Q1 2025, offering a range of crypto derivative services, including perpetual futures.
Customer Restitution: Backpack EU will oversee the distribution of funds to FTX EU customers as part of the court-approved bankruptcy claims process. The collapse contributed to increased market volatility. The sudden downfall of a major player like FTX caused significant price fluctuations in various cryptocurrencies, affecting both retail and institutional investors.
Market Impact: This moves positions Backpack as a key player in the EU’s regulated crypto market, filling the gap left by unregulated offshore exchanges. This acquisition is a major milestone for Backpack and the broader crypto industry in Europe. The collapse led to a wave of consolidation within the industry, with stronger and more compliant exchanges acquiring weaker ones. This trend is expected to continue as the industry matures and regulatory frameworks become more defined.
