Barry Silbert lawyers up, filing a lawsuit against the SEC for its denial of Grayscale’s ETF application. Binance goes viral, announcing a partnership with TikTok influencer Khaby Lame. And Bitcoin gets thrown out of its latest haunt at $20K. My name is Deezy. This is your nightly crypto news wrap-up. Let’s get it!
Grayscale’s application to convert its $43.6 billion Grayscale Bitcoin Trust into a spot ETF was rejected on Wednesday, prompting Grayscale to file a petition with the US Court of Appeals to challenge the decision. Grayscale holds over 600,000 Bitcoin and had one of the strongest cases for converting its fund into a Bitcoin-backed exchange-traded fund on the New York Stock Exchange. Investor hopes of approval were high, reporting a positive meeting with the SEC back in May.
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Instead of the approval Grayscale was hoping for, the world’s largest Bitcoin fund was rejected, disallowing the conversion to what would have been the US stock exchange’s first publicly traded ETF, citing a failure by Grayscale to answer questions about market manipulation. Grayscale’s lawyer Donald Verrilli said the SEC is inconsistent with its treatment of this kind of investment vehicles, with Bitcoin future ETFs being approved without an issue and even an ETF that bets against Bitcoin through derivative investments, allowing investors to take watered down short positions on Bitcoin. Grayscale indicated last month that although it was to prepare and convert the fund to an ETF at a moment’s notice, it was also prepared with alternative plans in case of a rejection. Looks like a legal battle is step one.
Let’s jump in and do a little market watch here. We’ve got Bitcoin below $20K once again. At $19,056 Down 5% on the day Ethereum: $1,028 Down 6% on the day Let’s go ahead and check our top losers. USTC down 46% Still up 422% on the week STX down about 10% Waves down about 10% Compound down about 9% ZRX down about 9% And STEPN down about 8% Guys, we do have a money flow crossover into the red on the 4-hour chart, which, if you don’t know, is a pretty bearish sign. We also have a yellow X on the 6-hour. Also pretty bearish. The higher daily timeframes still do have bullish signals on them. However, it’s not impossible to have them invalidated in a bear market like we’re in right now. But there is still a lot of mixed signals on the charts. So be careful out there.
Back to the news. Binance has taken the main stage of TikTok, announcing a partnership with the platform’s most followed influencer Khaby Lame, who has amassed 140 million followers! Lame is famous for watching with a straight face some of the more ridiculous “life hacks” circulating on the internet and providing wordless alternatives like emotionally watching someone slice the peel off a banana then peeling one himself the good old-fashioned way. He caps his videos off with the signature shrug that tells his viewers “It’s just that easy.” Lame is becoming a brand ambassador for Binance, with CZ tweeting that he’s the most followed creator on TikTok and he’s good at explaining things simply. In his mind, this is great for crypto education and adoption. Speaking of viral videos, over the past year or so, levels of price support for Bitcoin have looked like a TikTok rejection compilation. Investors keep getting used to new levels of price consolidation, only to get the cold shoulder of rejection over and over again. What is this? My high school? This is exactly what happened today in the overnight hours when Bitcoin dipped below $20,000 psychological support level, hitting lows of $18.7K. Spain announcing inflation levels at a 37-year high caused markets to take yet another punch in the gut. European indexes and Asian stocks also saw decline.
Wells Fargo believes that the drop in equity prices we’ve seen in the past year will take time to repair. After all, just as the S&P 500 declined 20% since its peak in December, inflation rates are shot to a 4-decade high that undoubtedly is a setup for taking things the long way back home. We’re in a confirmed bear trend now, with prices tending to dump to the downside rather than recovering higher. Many crypto investors are waiting on a relief bounce that just won’t come. But in spite of this, crypto insiders are making major money moves when it counts most— when the prices are down. Binance knows this is the time to double down, and it’s using the best educational platform the world has ever seen to spread its message. And that’s TikTok! I know it sounds like a joke, but 1 billion people across 155 countries around the world are watching TikTok.
And sure, most of the content is cringey dance videos, cute animals and probably videos of cute animals dancing, but we can’t deny that people are using the platform to share ideas about everything, including crypto. People are lapping up informational content on social media and graduating with TikTok honors. My only hope is Grayscale’s lawyers have more advanced training and are ready to fight the good fight against Gary Gensler and the inconsistent attempts of crypto regulation by the SEC.
This article is a transcription of a video made by BitBoy Crypto
Original video: https://youtu.be/AhUnVdi3zHs