The United States Securities and Exchange Commission (SEC) has deemed the recent filings for spot Bitcoin exchange-traded funds (ETFs) as inadequate. Both the Nasdaq and the Chicago Board Options Exchange were notified by the SEC that their applications lacked sufficient clarity and comprehensiveness. The regulator cited a lack of information on the proposed surveillance-sharing agreement. However, asset managers are allowed to resubmit their applications to address the SEC’s concerns.
ARK Investment Management, led by Cathie Wood, is reportedly ahead of BlackRock in the race for a spot Bitcoin ETF. ARK still has a previous application pending with the SEC, and it recently filed an amended application that includes a surveillance-sharing agreement, similar to BlackRock’s filing. Other investment firms, including Valkyrie, WisdomTree, and Invesco, have also reapplied for spot Bitcoin ETFs since BlackRock’s application on June 16.
Crypto exchange Binance is set to lose the support of its euro banking partner, Paysafe Payment Solutions, after September 25. Binance has informed its users that it will switch to a new service provider for euro deposits and withdrawals via SEPA bank transfer, but it has not disclosed the name of the new provider. Binance has faced regulatory backlash in recent months, leading to the suspension of operations in several countries.
FTX, a cryptocurrency exchange, has recovered approximately $7 billion in liquid assets and is continuing to search for additional assets. However, the extensive commingling of funds has complicated the recovery efforts. The FTX Debtors estimate the amount of misappropriated customer assets at $8.7 billion, with the majority of that money in fiat and stablecoins. The interim report also alleges that the former FTX leadership intentionally misused customer deposits.
The liquidators of Three Arrows Capital (3AC), a bankrupt hedge fund, are seeking to recover around $1.3 billion in funds from founders Su Zhu and Kyle Davies. The debt was reportedly incurred when 3AC was already insolvent, increasing the losses for creditors. The total debt owed by the company is $3.5 billion, making the potential liability of the founders more than a third of the total debt. The whereabouts of Zhu and Davies are currently unknown, which has delayed the liquidation process.
In the cryptocurrency market, Bitcoin is currently priced at $30,418, Ether at $1,928, and XRP at $0.47. The total market cap is $1.19 trillion. The top three altcoin gainers of the week are Compound (COMP) at 84.33%, Bitcoin Cash (BCH) at 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%.