SEC delays spot Bitcoin ETF filings by BlackRock, Invesco and Bitwise; Coinbase launches perpetual futures trading for users outside the US; Sam Bankman-Fried’s request for release rejected
SEC delays BlackRock spot Bitcoin ETF
The US Securities and Exchange Commission (SEC) has announced that it has delayed ETF applications from BlackRock, Bitwise and Valkyrie.
According to The Block, the regulator said of Valkyrie’s application:
“Given the legal and policy issues raised by the application, it is appropriate to commence a legal process. The opening of the procedure does not imply that the Commission has reached a conclusion on the matter”.
Valkyrie, which currently offers a Bitcoin strategy ETF and a Bitcoin mining ETF, first applied for a spot Bitcoin ETF in June. Valkyrie intends to list its product on the Nasdaq exchange under the code BRRR.
Bitcoin ETFs was previously delayed
The regulator first delayed the BlackRock, Valkyrie and Bitwise funds in August. At the same time, the SEC announced that it was also delaying proposals from Fidelity, VanEck, WisdomTree and Invesco.
Ahead of a possible government shutdown, the SEC also announced that it had delayed its decision on the Ark 21 Shares Bitcoin ETF until 10 January 2024.
The possibility of a US government shutdown remains. Many federal agencies, including the SEC, could cease to function if Congress fails to agree on a new budget.
Coinbase launches perpetual futures trading for users outside the US
Coinbase said in a statement that after processing billions of dollars in institutional futures transactions, it has received approval to offer continuous futures services to retail customers outside the US.
According to the statement, the exchange has received regulatory approval from the Bermuda Monetary Authority (BMA) to offer services to retail customers outside the US. Through its Coinbase International Exchange arm, the exchange also noted that it has seen “more than $5.5 billion in notional (futures) trading volume from institutions as of the second quarter of this year”.
Big move by Coinbase!
Earlier this year, Coinbase launched its international division and received approval from the BMA to offer continuous futures trading to institutional clients outside the US. According to the exchange, around 75 percent of global crypto trading volume comes from futures market activity.
Coinbase’s international strategy focuses on 24 countries, including members of the G20, as well as Hong Kong, Switzerland, the United Arab Emirates and Singapore. The company said it sees the G20, to be held in Brazil next year, as a forum where it will continue to push for a more concrete set of international rules.
Last month, Coinbase received regulatory approval from the National Futures Association to operate as a futures commission merchant and offer eligible US customers access to crypto futures trading on its platforms.
Sam Bankman-Fried’s request for release rejected
Judge denies Sam Bankman-Fried’s request to be released days before trial.
Sam Bankman-Fried had applied to be released from federal prison in Brooklyn on the grounds that he had failed to adequately prepare for trial.
FTX founder Sam Bankman-Fried, who remained under house arrest after his arrest and extradition to the US, was sent back to prison after his former partner and associate, Caroline Ellison, former CEO of Alameda Research, released her diaries to the press. Prosecutors had requested that Sam Bankman-Fried’s $250 million bail be revoked, claiming that the move was designed to intimidate witnesses expected to testify in the case.
According to Bloomberg, Sam Bankman-Fried’s lawyers pointed out that their client’s access to the internet was limited, making it difficult to prepare for the trial. In addition, the fact that Sam Bankman-Fried is a vegan has made it difficult for him to take the drug Adderall for his ADHD and depression. The former CEO’s meals in prison consisted mainly of bread, water and peanut butter.
The US government has alleged that Sam Bankman-Fried committed a multi-billion dollar fraud at FTX. Sam Bankman-Fried has pleaded not guilty since the day he was declared bankrupt.
On 3 October, Sam Bankman-Fried will face many charges in the trial scheduled to begin.
