Yesterday in Crypto - Issue #21

Read time: ~7 minutes

The SEC has decided to extend its review period for the Ark 21Shares Bitcoin exchange-traded fund (ETF) application. This move is part of the SEC's ongoing examination of various ETF applications from notable financial institutions, including giants like BlackRock and Fidelity Investments.

Click HERE and scroll to section 2 for some background on Spot BTC ETFs.

The SEC's decision to seek public input on the Ark 21Shares Bitcoin ETF application is a standard procedure, which effectively postpones any final decision for several more weeks. The regulatory body allows itself a total of 240 days to finalize a decision once it begins reviewing an application. The public will have three weeks to provide their insights on the proposal, followed by an additional five weeks for responses to the initial comments.

Ark Investment Management and 21Shares have been on the quest for ETF approval since 2021. They refiled their applications this year after previous attempts were turned down by the SEC.

Cathie Wood, the CEO of Ark Invest, expressed her anticipation of a delay in the decision regarding their application in a recent interview. However, she remains optimistic, believing that the SEC will eventually green-light multiple applications at once. The approval of one or more Bitcoin Spot ETFs will be a gamechanger for the crypto industry and is just the tip of the iceberg of mainstream adoption.

Sam Bankman-Fried, the founder of the once-prominent crypto exchange FTX, has been taken back into custody ahead of his scheduled trial in October. This move follows allegations that Bankman-Fried attempted to unduly influence key witnesses related to his case, which is connected to the downfall of FTX last year.

Bankman-Fried's previous house arrest at his parents' residence in California, despite a staggering $250 million bail posted in December 2022, raised eyebrows. However, his recent transfer to New York’s Metropolitan Detention Center has been seen by many as a necessary step to ensure the integrity of the upcoming trial.

U.S. prosecutors highlighted attempts by Bankman-Fried to manipulate at least two significant witnesses, including former FTX general counsel Ryne Miller and Caroline Ellison, CEO of FTX's sister company, Alameda Research. Among the allegations is Bankman-Fried's questionable move of leaking parts of Ellison’s private diaries to a New York Times reporter, seemingly in an attempt to tarnish her reputation.

While Bankman-Fried's legal team is gearing up to appeal the decision regarding the bail, many believe that this detention is a step in the right direction, ensuring that influential figures are held accountable for their actions. The outcome of the trial remains to be seen, but for now, the decision to keep Bankman-Fried in custody is being viewed by many as a move towards justice.

The cryptocurrency world is witnessing a significant shift as influential figures, once skeptical, are now embracing the digital asset space. The latest to join the ranks is none other than former U.S. President Donald Trump. Recent financial disclosures reveal that Trump holds between $250,000 and $500,000 in digital assets, including Ethereum. This move is particularly notable given Trump's previous stance on cryptocurrencies, where he expressed skepticism and concerns about their potential misuse.

Trump's pivot towards crypto is reflective of a broader trend among the wealthy elite, who are increasingly recognizing the potential and value of digital currencies. As the global financial landscape evolves, many high-net-worth individuals and institutional investors are diversifying their portfolios to include cryptocurrencies, seeing them as a hedge against traditional market uncertainties and as a promising avenue for growth.

This change in sentiment among the affluent is not just limited to personal investments. Many are also advocating for clearer regulations, better infrastructure, and more acceptance of cryptocurrencies in mainstream finance. Trump's foray into the crypto world underscores this shift and suggests that digital assets are steadily gaining traction among the world's most influential figures.

That’s all for today. We’ll see you tomorrow.

“If you don’t believe it or don’t get it, I don’t have the time to try to convince you, sorry.”

– Satoshi Nakamoto, Founder, Bitcoin