Here is what happened yesterday in the crypto market:
Delay in US Crypto ETF Decisions
Deadlines for Bitcoin and crypto ETF approvals in the US have been postponed, pushing potential decisions to November due to SEC delays. This comes after October was initially anticipated for these approvals. While regulatory hurdles persist, the ongoing demand for Bitcoin suggests a potential surge when these ETFs are eventually approved.
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Sam Bankman-Fried’s Appeal for Retrial
Sam Bankman-Fried, founder of FTX, is seeking a retrial, with the appeals court scheduled to hear arguments next week. This is seen as a crucial moment for Bankman-Fried, as it could be his last opportunity to challenge his conviction three years after FTX’s collapse. The upcoming decision will significantly impact the resolution of the protracted legal battles surrounding FTX.
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Bitcoin’s ‘Silent IPO’ as Early Holders Exit
Analysts are describing Bitcoin’s current market behavior as a ‘silent IPO,’ where early investors are selling their holdings, and new institutional and retail investors are entering the market. This shift indicates a broader distribution of Bitcoin ownership and a maturing market, drawing parallels to traditional Initial Public Offerings.
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EU Considers Centralized Oversight for Crypto Exchanges
The European Commission is exploring plans to centralize supervision over stock and cryptocurrency exchanges, similar to the SEC in the United States. This move aims to enhance the competitiveness of the EU’s capital markets and foster a more robust startup environment. The proposed oversight would bring increased regulation and potentially reduce fragmentation within the European crypto landscape.
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FTX Creditors Face Reduced Recovery Amid Inflated Prices
FTX creditors may receive significantly less than expected, potentially as low as 9% of their original holdings, due to the current inflated valuations of cryptocurrencies. This situation arises because payouts will be based on the value of assets at the time of bankruptcy, not their current market prices. This discrepancy has led to frustration among creditors, who feel they are receiving only a fraction of their actual losses.
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