(Click on image to enlarge)

Many bitcoin aficionados are waiting with baited breath as the SEC is to announce by this Friday whether they will approve the first registered bitcoin ETF. This is not the make or break event that many think it is, though. As a matter of fact, if the ETF is denied and the bitcoin drops, I'll consider it an opportunity.

European Bitcoin Acceptance

An ETF will allow institutions to flood into Bitcoin through registered vehicles. Whether the SEC approves the Winkelvoss twins ETF is beside the point, institutions interest is already sparked and the money will come in anyway. Bitstamp, one of the world's largest bitcoin exchanges, is partnering with one of the largest French banks, Crédit Agricole, to facilitate bitcoin acceptance at investment funds. According to Coindesk:

...launch a new service aimed to allow bitcoin to be accepted by investment funds.

For its side of the deal, CACEIS, the asset servicing branch of the bank, will provide services covering clearing, depositary and custody of bitcoin bought in through the exchange.

The goal of the partnership is to increase capital inflows to new investment funds by providing an alternative funding method in the form of the digital currency. Fund promoters, working with CACEIS as a transfer agent, can start accepting bitcoin for fund subscriptions as soon as Q2 2017, the firms indicated.

Bitstamp CEO, Nejc Kodrič, sees the partnership as a foothold for bitcoin to be used for mainstream, legitimate investment opportunities, 

“Bitstamp’s first partnership with a market-leading, asset-servicing bank like CACEIS means bitcoin investments can now be made within fully licensed and regulated framework,” he said.

As bitcoin gains traction, it's easy to see why some investors are picking up interest. In jurisdictions with capital controls, using bitcoin circumnavigates regulatory headaches and streamlines cross-border payments.

Joe Saliba, CACEIS deputy chief executive officer, said:

 

“Fund promoters are constantly seeking new sources of investment capital and by interfacing them with a regulated bitcoin exchange we are supporting their business development objectives. “

Japanese Adoption

Japan has recently overtaken the US and China as the highest-volume country for bitcoin trading in the world. The reason is due to increased regulation in Japan, and the recognition of bitcoin as legal tender, which allows banking institutions to deal with it directly as of April 2017. Japan is the world's 3rd largest economy and has one of the world's largest banking systems. 

Chinese regulation 

The PBOC advised Chinese bitcoin exchanges to prevent withdrawals until they updated their systems to comply with KYC/AML rules. This was easy to see coming since Chinese were using (or at least media reported they were using) bitcoin to circumvent China's capital controls.

Coindesk reports: Chinese Bitcoin Exchanges to Resume Bitcoin Withdrawals Pending Regulator Approval. China's 'Big Three' bitcoin exchanges have announced their intent to resume withdrawals in new statements issued today. This clears the way for Chinese banks to enter the industry.

While many pundits took the drop in volume from the PBOC crackdown as a negative or even the end of Bitcoin, a more macro look hinted otherwise...

• Chinese Bitcoin Exchanges Suspend Client Withdrawals. I Warned You About Heteronomous Wallets! (BoomBustBlog)Bitcoin.com reports "Chinese Exchanges Suspend Withdrawals for One Month": The two largest Chinese Bitcoin exchanges have suspended Bitcoin and Litecoin withdrawals for one month. The news follows China’ ...Created on 09 February 20174. 
• Revisiting the Breakdown of the Macro Drivers Behind Bitcoin's Price Spike, Exactly As I Foretold 30 Day Ago (BoomBustBlog)... culatocreator..$CNY #Yuan leaking from China into $BTC #blockchain, nearly $20M per hour, showing power of public blockchain & #Bitcoin in capital controls pic.twitter.com/T3mxP6OEkb — ReggieM ...Created on 07 February 2017
• China's Central Bank Eliminates Margin Trading of Bitcoin (BoomBustBlog)There have been rumors that the Chinese Central Bank (PBoC - People's Bank of China) would limit or eliminate margin trading in Bitcoin. It is now official, sort of... Two of the largest Chinese bitcoin ...Created on 19 January 201710. 
• The Macro Truth About The Big Bitcoin Pop and Drop: The Mainstream Media Doesn't Have A Clue (BoomBustBlog)...If I'm not mistaken, it pulled back on the 5th.  China facing massive capital outflows so .gov is implementing capital controls. Of course, this sends $BTC through the ROOF, as I've warned pic.twitter.com/xriPAXs ...Created on 07 January 2017