Crypto News: SEC calls spot Bitcoin ETF filings inadequate, Binance loses euro partner and other news


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A week in review: June 25 – July 1

Your weekly highlights to stay up to date with the latest crypto news

#1. US SEC deems spot Bitcoin ETFs filings as 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 investment managers' recent applications inadequate. The SEC told the Nasdaq and the Chicago Board Options Exchange that their filings are not "sufficiently clear and comprehensive." The regulator returned the filings, citing the lack of information regarding the proposed surveillance-sharing agreement. Asset managers can still resubmit their applications.

#2. Cathie Wood's ARK 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 still has a previous application pending with the United States securities regulator. ARK and 21Shares filed their third application 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 application on June 16, other investment firms such as Valkyrie, WisdomTree and Invesco have reapplied for spot Bitcoin ETFs.

#3. Binance to lose support of 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 bank transfer, though it didn't name which provider that would be. In recent months, Binance has been facing waves of backlash from regulators around the world, leading to a cessation of operations in various countries.

#4. Prediction of the week. Bitcoin speculators send 35K BTC to exchanges in new 'elation inflow'

Bitcoin short-term holders (STHs) are feeling the need to sell BTC at $30,000, according to a recent report from analytics firm Glassnode flagging tens of thousands of coins being sent to exchanges.

This indicates that speculative interest in Bitcoin remains fickle and highly sensitive to even smaller price movements.

Historical data has shown that once STH profitability reaches an aggregate 20%, selling begins, and against their current $26,500 breakeven point, anything much above $33,000 could spark a significant shift in hodler composition. Current data shows STH profitability at around 10%, with their realized price — the price at which STH coins last moved — now above $27,000.

#5. FUD of the week. FTX alleges former exec used 'hush money' to silence whistleblowers

FTX has filed a lawsuit against a former regulatory and compliance executive at the exchange, alleging he made a series of payments attempting to prevent staff from blowing the whistle about the exchange's issues. Daniel Friedberg, who held multiple leadership roles at the exchange, is accused of making "hush money" payments to two potential whistleblowers to stop them from leaking information about "regulatory issues" and the close ties between FTX and Alameda.

#6. FUD of the week. Over $204M was lost in Q2 DeFi hacks and scams

Over $204 million was lost in decentralized finance (DeFi) hacks and scams in the second quarter of 2023, according to a recent report. 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 Q2 rose by "almost 7 times" year-over-year, with 117 incidents during the period, compared with only 17 in the same quarter of 2022. A total of over $665 million was lost during the first half of 2023.