• SEC Rejects Spot Bitcoin ETF Proposal, Grayscale Answers with Lawsuit
  • Bitcoin (BTC) Dips Below $19,000, Deutsche Bank (ETR:DBKGn) Predicts $28k 2022 End
  • British Virgin Islands Court Orders Three Arrows Ordered to Liquidate
  • Cardano Submits Vasil Hard Fork Proposal, Commences Network Upgrade Countdown
  • Coinbase (NASDAQ:COIN) Renews Europe Expansion Plans, EU Set AML Rules for Crypto

SEC Rejects Spot Bitcoin ETF Proposal, Grayscale Answers with Lawsuit

On Wednesday, June 29, the U.S. Securities and Exchange Commission (SEC) rejected a proposal to launch a Bitcoin Spot ETF. In October 2021, Grayscale announced plans to convert its bitcoin trust (GBTC) into a bitcoin exchange-traded fund (ETF).

The SEC says Grayscale did not meet standards to prevent fraudulent and manipulative market practices. The SEC listed wash trading, whale manipulation, exchange and network hacking, and stablecoin manipulation as some manipulative practices.

In response to the rejection of its Bitcoin ETF proposal, Grayscale revealed that it had filed a “petition for review” against the SEC. The lawsuit was filed with the United States Court of Appeals for the District of Columbia.

Grayscale CEO Michael Sonnenshein wrote that the firm was “deeply disappointed” and vehemently disagrees with the SEC’s decision to reject the proposal. He also alleges that the SEC has violated the Administrative Procedure Act and Securities Exchange Act.

Flipsider:

 

  • The European market has become more favorable, with Jacobi Asset Management announcing that it would launch Europe’s first bitcoin ETF on the Euronext exchange

Why You Should Care

With analysts stating that the SEC has failed to “apply consistent treatment to similar investment vehicles,” Grayscale goes to court to seek a possible reversal of the decision.

Bitcoin (BTC) Dips Below $19,000, Deutsche Bank Predicts $28k 2022 End

After showing promising signs of recovery over the last week, the price of Bitcoin (BTC) has now breached a support zone over the past few hours, dipping below $19,000. This is the fourth time Bitcoin has fallen below $20k in June.

 

The 7D price chart of Bitcoin (BTC). Source: CoinMarketCap

Bitcoin has taken a hit of -5% over the last 24 hours, as its price fell as low as $18,993.40. The latest decline comes amidst rumors of Three Arrows Capital being liquidated, rejection of the Bitcoin Spot ETF, and the long-standing inflation concerns.

 

The 24 hours price chart of Bitcoin (BTC). Source: CoinMarketCap

Regardless of the irksome downtrend, Deutsche Bank, a German multinational investment bank, has predicted that the price of Bitcoin could recover and trade as high as $28,000 by the end of 2020.

Deutsche Bank believes that Bitcoin’s strong correlation with the stock market, especially the Nasdaq 100, is likely to spur its recovery to $28k. With Bitcoin losing its title as the digital gold, the bank now sees Bitcoin as the digital diamond.

Flipsider:

 

  • Despite the seemingly endless market decline, Michael Saylor-led MicroStrategy has bought more Bitcoin worth $10 million.

British Virgin Islands Court Orders Three Arrows Ordered to Liquidate

Singapore-based crypto-focused hedge fund Three Arrows Capital Ltd. received a liquidation order from a British Virgin Islands court on Wednesday after creditors sued the cryptocurrency hedge fund for failure to pay back its debts.

According to reports, the court has appointed two executives, senior managing directors Russell Crumpler and Christopher Farmer of global advisory firm Teneo to help manage the liquidation of the assets.

Insider reports also add that Teneo will launch a website in the coming days to allow 3ACs potential creditors to submit claims and get more information about insolvency. The asset holdings of 3AC will then determine the duration to settle its obligation to creditors.

The liquidation order comes after Voyager Digital served 3AC a default notice on Monday for failing to repay a $665 million loan.

Flipsider:

 

  • The liquidation order contradicts 3AC’s recent claims that the firm was resolving things and potentially selling assets or getting rescued from other firms to repay its debts.

Why You Should Care

The liquidation of Three Arrows Capital is a direct result of the ongoing crypto winter and losing investment of more than $200 million in the Luna crash.

Cardano Submits Vasil Hard Fork Proposal, Commences Network Upgrade Countdown

The much anticipated Vasil hard fork of the Cardano network is closer than ever, as Input Output Global (IOG) announced that they have entered the final stage prior to the network upgrade.

In addition to submitting the update proposal to hard fork the blockchain’s testnet, IOG, the lead developer behind the Cardano blockchain, has also commenced a countdown for the upcoming mainnet upgrade.

Last week, IOG released Cardano node 1.35.0, the final candidate for the update. With over 75% of stake pool operators now onboard, IOG has secured a sufficient level of chain density to move forward with the Vasil testnet.

The IOG has set July ending as the expected to deploy the Vasil hard fork on the Cardano mainnet. The developers have stressed the need to ensure that the rollout of Vasil is “safe and secure.”

Flipsider:

 

  • Despite being primed for a huge rally with the launch of Vasil, on-chain analysis has revealed a huge decline in Cardano’s ADA token.

Why You Should Care

Cardano’s previous hard fork, Alonzo, introduced smart contracts functionality, while Vasil looks to improve the network by increasing throughput – the blockchain’s efficiency.

Coinbase Renews Europe Expansion Plans, EU Set AML Rules for Crypto

Coinbase, the largest U.S.-based cryptocurrency exchange, is looking to expand its tentacles outside the United States by applying for regulatory approval in various European countries.

Coinbase’s vice president, Nana Murugesan, said during an interview in London that the exchange is focused on taking a portion of the European market. Coinbase looks to get licensed in countries like Spain, France, Italy, and the Netherlands.

Murugesan added that the exchange recently hired its first employee in Switzerland and has already registered in the UK, Germany, and Ireland. Coinbase also intends to have retail and institutional products from all these markets.

Flipsider:

 

  • The European Council announced the launch of a dedicated Anti-Money Laundering Authority, or AMLA, on Wednesday. The body will supervise certain crypto asset service providers or CASPs.
  • European Parliament member Ernest Urtasun said the rules wouldn’t apply to P2P transfers where no obliged entity is involved.

Why You Should Care

For Coinbase to successfully set up shops in these countries, the exchange must follow the growing number of crypto regulations being put up by authorities.