Bitcoin and other cryptocurrencies gained mainstream attention after its performance in 2017. To give you an idea of how good was the bullish run for Bitcoin, it started 2017 at around $1,000 only to reach an all-time high of almost $20,000. And now, there’s interest among big businesses to get involved in the crypto world. And why not? The crypto market is currently down, and there is a great potential to maximize profit in case another bull-run comes.
Recently, New York financial regulators approved Stellar Lumens to be traded on itBit, a cryptocurrency exchange trading platform designed specifically for institutional investors. It has previously just offered Bitcoin trading which has also been approved by the New York’s Department of Financial Services. Along with Stellar Lumens comes Bitcoin Cash, Ethereum, and Litecoin.
What makes itBit a great company is the fact that it is the very first digital currency company that was granted a banking law charter from the NYDFS three years ago.
BitLicense was also given to Xapo which is a Bitcoin storage company that has an underground vault located in Swiss Alps. It was in fact just the sixth BitLicense that has been granted since the time the certification was created three years ago.
What Does it Means for Stellar Lumens?
If you are wondering what this means for Stellar Lumens, it could mean that the value of the cryptocurrency could shoot up any time soon. Institutional investors mean large capital waiting to be pumped into these digital currencies. Currently, Stellar Lumens holds 8th position among cryptocurrencies based on market capitalization. It has a market cap of more than $4.3 billion.
Coinbase announced that it is adding Ethereum Classic in its platform. And for this reason alone, the digital currency’s price jumped by 20%.
And because of this announcement, Stellar Lumens already jumped by 5% after the announcement that is even after a bearish trend across popular cryptocurrencies brought about by the hacking incident that happened in South Korea and even regulatory concerns.
Not a Security
And since SEC doesn’t view cryptocurrencies as a security, it could even be a better indication for the cryptocurrency. If not for the clarification made by the SEC, itBit wouldn’t have added these cryptocurrencies to their platform. According to Chad Cascarilla who is the co-founder and CEO of itBit’s parent company Paxos, “If they were a security, you’d have to go through a different process”.
Ether has also been classified by the SEC as not a security. According to William Hinman who is the head of the Division of Corporate Finance for the SEC, “we don’t see a lot of value in seeing ether as a security”. He also added that “Ether is a coin that is evolving”.
Could these indicators mean that the cryptocurrency market is going to go up once again? With the access of institutional investors to these coins, there is a chance that we are seeing another bull-run. And with its current price, it could be a good point to start especially if you wish to make the most out of your investment.