Top stories this week
US SEC considers registration of spot Bitcoin ETFs inadequate
There may be a longer wait for a spot Bitcoin exchange-traded fund (ETF) in the United States, as the Securities and Exchange Commission labeled recent filings from investment managers as inadequate. The SEC told the Nasdaq and the Chicago Board Options Exchange that their filings are not “clear and complete enough.” The regulator returned the documents, citing the lack of information about the proposed supervisory sharing agreement. Wealth managers can still resubmit their applications.
Cathie Wood’s ARK is reportedly “first in line” for a spot Bitcoin ETF
ARK Investment Management is reportedly ahead of BlackRock in the race for a spot Bitcoin ETF as it has a previous filing pending with the US securities regulator. ARK and 21Shares filed their third filing for a spot BTC ETF in April and amended it this week to include a surveillance sharing agreement, making it similar to BlackRock’s filing. Since BlackRock’s filing on June 16, other investment firms such as Valkyrie, WisdomTree, and Invesco have once again signed up to spot Bitcoin ETFs.
Binance loses support from its euro banking partner
Crypto exchange Binance informed users that its current euro banking partner, Paysafe Payment Solutions, will no longer support the exchange after September 25. Binance said it will switch to a new service provider for euro deposits and withdrawals via SEPA wire transfer, although it did not. t name which provider that would be. In recent months, Binance has faced waves of backlash from regulators around the world, leading to the suspension of operations in several countries.
FTX has recovered $7 billion in assets so far, has nearly $2 billion to go to cover embezzlements
FTX has recovered approximately $7 billion in liquid assets to date and the search for additional assets continues, according to an interim report released June 26. However, the extensive mixing of funds complicates their efforts. The FTX Debtors, made up of FTX and affiliates, currently estimate the amount of client assets misappropriated at $8.7 billion. Most of that money, about $6.4 billion, was in fiat and stablecoins. The former FTX leadership “did not inadvertently mix and misuse customer deposits,” the report claimed.
3AC liquidators are seeking to recover $1.3 billion from founders
Teneo, the liquidator behind bankrupt hedge fund Three Arrows Capital (3AC), is seeking to recover about $1.3 billion in funds from founders Su Zhu and Kyle Davies. The debt would have arisen when 3AC was already insolvent, adding to the creditors’ losses. The company owed creditors $3.5 billion, making the founders’ potential liability more than a third of the total debt. Davies and Zhu have maintained active social media profiles, but their physical whereabouts are unknown, delaying the liquidation process. Both founders of 3AC have received digital subpoenas during the bankruptcy proceedings. To date they have not cooperated.
Winners and losers
At the end of the week, Bitcoin (BTC) is with $30,418Eater (ETH) bee $1,928 And XRP bee $0.47. The total market capitalization is $1.19 trillion, according to CoinMarketCap.
Of the 100 largest cryptocurrencies, the top three altcoin winners of the week are Compound (COMP) against 84.33%, Bitcoin Cash (BCH) against 63.16% and eCash (XEC) at 44.59%.
The top three altcoin losers of the week are Conflux (CFX) at -22.38%, Sui (SUI) at -15.41% and Stacks (STX) at -14.81%.
Read Cointelegraph’s market analysis for more information on crypto prices.
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Forced Creativity: Why Bitcoin Thrives in Former Socialist States
Most memorable quotes
“One of the things I think people should stop doing is, ‘What is the ultimate blockchain?’ […] It doesn’t exist in my mind because it really depends on it.
Mel McCannvice president of engineering at the Cardano Foundation
“Crypto presents [the SEC] an opportunity to rethink how we approach innovation. […] I really think we have taken an approach that is not appropriate.”
Hester PierceCommissioner of the US Securities and Exchange Commission
“Many of the largest financial institutions in the US are actively working to provide access to Bitcoin and more.”
Meltem Demirorschief strategy officer at CoinShares
“I think our NFTs are a nice way to show that we are at the table and that we have really invested in crypto and digital asset research.”
Andrew Freyforensic financial analyst with the US Secret Service
“Occasionally something comes along that makes poor people rich because they got it very, very cheaply. This [Bitcoin] was one of them.”
Davin Jeremycrypto lawyer
“Regulation through enforcement is the equivalent of having a hammer and seeing everything as a nail.”
Simon CallaghanCEO of Blockchain Australia
Forecast of the week
Bitcoin Speculators Send 35,000 BTC to Exchanges in New ‘Elation Inflow’
Short-term Bitcoin holders (STHs) are feeling the need to sell BTC for $30,000, according to a recent report from analytics firm Glassnode that highlights tens of thousands of coins being sent to exchanges.
This indicates that speculative interest in Bitcoin remains volatile and highly sensitive to even smaller price movements.
Historical data has shown that once STH profitability hits a total of 20%, sales kick in, and at their current breakeven point of $26,500, anything much above $33,000 could cause a significant shift in the hodler’s composition . Current data shows STH profitability of about 10%, with their realized price – the price at which STH coins last moved – now above $27,000.
FUD of the week
FTX alleges former director used “hush money” to silence whistleblowers
FTX has filed a lawsuit against a former regulatory and compliance officer at the exchange alleging he made a series of payments to keep staff from blowing the whistle on the exchange’s problems. Daniel Friedberg, who held several executive positions at the exchange, is accused of making “hush money” payments to two would-be whistleblowers to prevent them from leaking information about “regulatory issues” and the close ties between FTX and Alameda.
Over $204 million was lost in Q2 DeFi hacks and scams
According to a recent report, more than $204 million was lost in the second quarter of 2023 to hacks and scams by decentralized financial institutions (DeFi). A total of $208.5 million was initially lost during the quarter, but $4.5 million was recovered through prosecutions, deals with hackers and other recovery methods. The number of DeFi hacks in the second quarter increased “nearly 7 times” year over year, with 117 incidents during the period, compared to just 17 in the same quarter of 2022. In total, more than 665 were reported in the first half of the year million dollars lost by 2023.
Revolut US delists ADA, MATIC and SOL in September
Crypto-friendly neobank Revolut is next to remove a range of digital assets on its platform in the United States amid the ongoing regulatory developments in the country, including the complete removal of tokens such as Cardano (ADA), Polygon ( MATIC) and Solana (SOL). However, the company still supports the tokens in other jurisdictions outside of the country. ADA, MATIC and SOL were designated as unregistered securities by the SEC in early June.
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NFT Collector: Snoop’s NFT nostalgia, The Goose draws Gen Y to Sotheby’s
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The most compelling reads in blockchain. Delivered once a week.