Market update

Cointree Crypto Market Update - June 19th 2024

Market report for traders

🔮 BTC and altcoins

Over the last 7 days, Bitcoin ends at AU$97,465, moving -4.21% at the time of writing. Meanwhile, Ethereum ends at AU$5,217 moving -1.37% week-on-week. On the Altcoin side, Solana -8.56%, Cardano +1.88%, and Pepe -15.01%.

🗞 What’s happening in the news?

SEC Denies Ripple’s Bid for Lower Penalty

Ripple Labs’ attempt to reduce its hefty penalty has been rebuffed by the SEC. Ripple had proposed a penalty of no more than $10 million, drawing a comparison to the SEC’s $4.5 billion settlement with Terraform Labs. However, the SEC dismissed this analogy, arguing that Ripple’s penalty should be significantly higher, reflecting its $876.3 million in gross profits from alleged unregistered securities sales.

The SEC maintains that Ripple’s proposed penalty “would not satisfy the purposes of the civil penalty statutes.”

The ongoing legal battle has seen the SEC push for nearly $2 billion in penalties against Ripple, highlighting the high stakes involved in this case.

Solana Sandwich Bot Profits $30 Million in 2 Months

A mysterious and highly profitable bot operating on the Solana network has captured $30 million through MEV (Maximal Extractable Value) arbitrage attacks in just two months. According to Ben Coverston from MRGN Research, the bot, known as “arsc,” strategically places its transactions around those of unsuspecting users to manipulate token prices and secure profits. Coverston highlighted, “The bot has gone to great lengths to avoid attention while raking in profits.”

One of the bot’s primary wallet addresses holds around $19 million, with significant holdings in Solana’s SOL tokens and Circle’s USD Coin. The MEV activities on Solana reflect a broader trend seen on other networks, such as Ethereum, where over $1.38 billion has been extracted from users.

SEC’s Crypto Chief Steps Down After 9 Years

In a significant shake-up, David Hirsch, the Chief of Crypto Assets and Cyber Unit at the US Securities and Exchange Commission (SEC), has resigned after nearly a decade of service. Reflecting on his tenure, Hirsch stated,

“I’m particularly proud of the historic work done by the Crypto Assets and Cyber Unit team I had the privilege to lead.”

During his leadership, the SEC aggressively pursued major exchanges like Coinbase and Binance, emphasizing that even DeFi projects could not escape regulatory oversight.

Hirsch’s departure comes amidst a wave of top-level exits in the crypto industry. Recently, Michael Sonnenshein of Grayscale and Ahmad Shadid of Io.net also stepped down from their CEO roles. These moves hint at a period of significant transition and potential new strategies within these organizations.

Australian VanEck Launches Bitcoin ETF on ASX

In a landmark move for Australian investors, VanEck has received approval to launch a Bitcoin Exchange-Traded Fund (ETF) on the Australian Securities Exchange (ASX). This development offers a regulated avenue for Australians to invest in Bitcoin, marking a significant milestone in the local cryptocurrency market.

VanEck’s efforts to introduce this ETF date back to early 2021. The firm aims to provide a secure and accessible way for investors to engage with Bitcoin, often referred to as “digital gold” due to its potential as a store of value and inflation hedge. This follows Monochrome Asset Management’s recent approval for a Bitcoin ETF on the Cboe Australia exchange.

The introduction of these ETFs in Australia aligns with a global trend, as similar products in the US have contributed to Bitcoin's rising popularity among both institutional and retail investors.