Coin360 Daily Dispatch | Crypto Market Updates & Highlights | June 24, 2023

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Jun 24 2023

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Markets360

Crypto Market Update

Written by Van

SEC Greenlights First Leveraged Bitcoin Futures ETF

The U.S. Securities and Exchange Commission (SEC) has approved the first leveraged Bitcoin futures exchange-traded fund (ETF), called Volatility Shares 2x Bitcoin Strategy ETF (BITX), which is set to launch on the Chicago Board Options Exchange on June 27. The ETF aims to provide twice the returns of the Chicago Mercantile Exchange Bitcoin Futures Daily Roll Index.

While the news is celebrated by crypto advocates, there are concerns about the prioritization of leveraged futures over a straightforward spot ETF. The approval of BITX signals a positive development for the SEC's relationship with cryptocurrencies, especially after recent regulatory actions against crypto exchanges.

Belgium Regulator Orders Binance to Halt Operations

Belgium's financial authority has ordered Binance to cease operations in the country, accusing the cryptocurrency exchange of operating from countries outside the European Economic Area (EEA), which violates Belgian laws. Binance must comply with Belgian regulations and the upcoming MiCA regulations. Binance has faced regulatory issues in other European countries but continues to operate in Spain, France, Italy, Lithuania, Sweden, and Poland.

Crypto.com Receives VASP Registration from Bank of Spain

Crypto.com has obtained Virtual Asset Service Provider (VASP) registration from the Bank of Spain, bolstering its regulatory compliance efforts amid challenges in the US market. The approval signifies a comprehensive review of the exchange's anti-money laundering processes. This adds to a series of regulatory approvals granted to Crypto.com worldwide, allowing it to expand its services in Spain. The company faced criticism recently over allegations of internal token trading for profit.

ECB Executive Criticizes Cryptocurrency's Market Failures

Fabio Panetta, an executive board member of the European Central Bank (ECB), has stated that cryptocurrencies have "not developed into a form of finance that is innovative and robust, but have instead morphed into one that is deleterious". He suggests that digital assets may be used for little more than gambling among investors due to their "limitations" and "market failures". Panetta also criticizes crypto's negative impact on the environment.

US Supreme Court Sides with Coinbase on Arbitration

The U.S. Supreme Court ruled in favor of Coinbase, allowing the exchange to use arbitration in customer disputes. The case involved a class action suit filed by Abraham Bielski, who alleged that Coinbase failed to replace funds fraudulently taken from user accounts. The court's decision was a 5-4 vote, with Justice Brett Kavanaugh delivering the opinion. The ruling has implications for federal litigation. Coinbase is currently involved in a separate legal battle with the U.S. Securities and Exchange Commission over crypto regulation.

FTX Alleges Fraudulent Transfer of $700M by Ex-CEO

FTX has filed a complaint with the court to retrieve $700 million it alleges was transferred to high-profile networker Michael Kives and his company K5 Global by former CEO Sam Bankman-Fried (SBF) without carrying out appropriate due diligence. SBF is accused of directing FTX-related cryptocurrency trading firm Alameda Research to make a series of transfers without any investment having been made by the group. FTX's legal filing claims that the funds were intended to burnish SBF's political and social influence and defraud FTX's customers.

Wintermute Accused of Assisting Celsius Price Manipulation

Creditors of bankrupt cryptocurrency lending platform Celsius Network have amended their lawsuit to accuse crypto market maker Wintermute of assisting Celsius executives to manipulate the price of Celsius CEL tokens through wash trading. Celsius creditors claim Wintermute was engaged to take part in these activities allegedly from around March 2021 until the account withdrawals were frozen in June 2022. Celsius filed for Chapter 11 bankruptcy protection in July 2022 and assets were recently acquired by crypto consortium Fahrenheit.

Gemini Launches Ethereum Staking in UK Amid SEC Lawsuit

Cryptocurrency exchange Gemini has launched its Ethereum staking program, Gemini Staking Pro, in the UK, allowing institutions and high-net-worth individuals to run validators on the Ethereum blockchain. The program is already available in several other countries. Gemini aims to simplify the staking process for users and will reimburse penalties incurred by clients. The platform may also increase the limit of coins required for validator nodes from 32 ETH to 2048 ETH. Gemini is expanding its services globally, although it is currently facing a lawsuit from the US Securities and Exchange Commission.

Bitcoin Soars Amid ETF Filings by Investment Giants

Bitcoin surged to a one-year high above $31,300 before falling back to $30,700, signaling a mid-June surge. The increase came after BlackRock, Invesco, and WisdomTree filed for spot exchange-traded funds (ETFs), indicating institutional interest in cryptocurrencies. Other major cryptocurrencies also saw gains, while equity markets experienced losses.

Although there are concerns about regulatory challenges, the ETF filings have boosted sentiment and raised expectations of an institutionally driven price rally. Bitcoin's SOPR (Spent Output Profit Ratio) has risen above 1.0, indicating that investors are selling their coins at a profit.

Aave’s v2 Platform Used for Major Short on TrueUSD

A trader initiated an on-chain short position on TrueUSD (TUSD) by utilizing Aave’s v2 lending platform to deposit $7.5 million USD Coin (USDC) as collateral and borrowed $4 million TUSD to sell it for USDC. TrustToken suspended TUSD minting and redemption, leading to the short position. BitGo has cancelled its acquisition of the Vegas-based Prime Trust, which has received a cease-and-desist order from the Financial Institutions Division of the Nevada Department of Business and Industry. TUSD, the fifth-largest stablecoin has a market cap of just over $3.1 billion.

Coinbase Listing Fuels VeChain Token Surge

VeChain's native crypto asset, VET, surged 12% at one point after Coinbase announced its addition to the exchange. VeChain's two tokens, VET and VTHO, will be listed on Coinbase's roadmap, increasing exposure to the VeChain ecosystem. VET reached a seven-day high of $0.0189, while VTHO saw a 13% jump. The VeChain blockchain is gaining adoption, with Samsung Heavy Industries utilizing it for securing intelligent ship data applications.

Backlash Over Lido's Plan for Greater Ethereum Control

Lido, a leading liquid staking provider, is facing backlash for its plan to expand its control over the Ethereum network despite already holding a significant portion of staked Ether. Lido token holders are considering a proposal to introduce a tiered profit-sharing program to incentivize partnerships with other web3 communities. The proposal has drawn criticism from decentralization advocates who fear the concentration of power in Lido could harm the Ethereum network. Lido currently commands 32% of the staked Ether supply.

Bitcoin Cash Skyrockets, Outperforms Major Cryptos

Bitcoin Cash (BCH) has surged over 50% in the past five days, reaching a four-month high. The increase in BCH's value is attributed to positive market sentiment and institutional interest, such as BlackRock's application for a Bitcoin spot exchange-traded fund. BCH's open interest has also spiked, indicating increased speculation and hedging activities. It has outperformed Bitcoin and Ethereum in recent trading and is now more valuable than Cosmos, Monero, and Uniswap.

Upcoming Token Unlocks for Aptos and Sui Fuel Uncertainty

Aptos and Sui are preparing to release a larger supply of their tokens in July, with Sui unlocking over 61 million tokens valued at $48 million and Aptos unlocking over 4.5 million APTs valued at $33 million. Both tokens currently have a relatively low percentage of their tokens in circulation and respectable TVL figures. The impact of the upcoming token unlocks on their metrics and price trends remains uncertain.

Potential Sell-off as Mask Network Transfers $11M to Exchanges

The Mask Network Foundation transferred 3 million MASK tokens, worth over $11 million, to exchanges like Binance and OKX. Speculation suggests it could lead to a sell-off or increase market-making activities. The MASK token's price has seen a slight decline of 2.5% but has experienced overall positive growth in the past week. The transfer may impact the token's market position and trading volume.

Top Altcoin Gainers and Losers

Gainers:

Bitcoin Cash BCH (+33.91%)

Bitcoin SV BSV (+25.80%)

Ethereum Classic ETC (+12.99%)

Losers:

FTX Token FTT (-10.71%)

Maker MKR (-3.39%)

Stacks STX (-2.70%)

NFT Market Map

The minimum trading prices of top Ethereum NFT collections like Bored Ape Yacht Club and CryptoPunks dropped sharply. Floor prices fell by nearly 8% and 7% respectively. The Blue Chip 10 index is down 31% this year. BAYC's floor price fell almost 19% in 30 days, while CryptoPunks fell less than 3%. The decline in NFT trading volumes is due to Blur marketplace and the end of doubled trading rewards.