Recent clarification from the U.S. Securities and Exchange Commission (SEC) that specific liquid staking activities do not constitute securities offerings has provided welcomed regulatory clarity for the cryptocurrency sector.
This development is seen as bolstering institutional adoption, particularly evident in the growing interest in Bitcoin exchange-traded funds (ETFs) and within the $57 billion liquid staking market, where Ethereum represents a dominant $51 billion share.
Matt Hougan, Chief Investment Officer at Bitwise, asserts the market has yet to fully price in the SEC’s increasingly supportive approach towards cryptocurrency regulation.
Evidence of institutional traction includes the significant move by the State of Michigan Retirement System, which nearly tripled its holdings in ARK’s spot Bitcoin ETF (ARKB).
Further underpinning institutional confidence, digital asset exchange Bullish, owner of CoinDesk, is reportedly targeting a $4.2 billion valuation in an upcoming initial public offering, attracting considerable interest from institutional investors.