WisdomTree applies for Bitcoin ETF, Bitcoin short sellers liquidated $58m during Tuesday rally

WisdomTree follows BlackRock, applies for spot Bitcoin ETF

Asset manager WisdomTree submitted an application to the US Securities and Exchange Commission for a Bitcoin exchange-traded fund on Tuesday, only days after BlackRock made a similar proposal, Bloomberg reported.

WisdomTree filed the application, hoping it will get the nod for a spot ETF on the Cboe BZX exchange.

NOW READ: Deutsche Bank, Citadel Securities signal the crypto land grab is accelerating

The SEC turned down a prior application by the firm and has rejected several other spot entities on grounds that fraud and market manipulation make such ETFs too risky, though the agency has allowed a few futures-based ETFs.

Short sellers liquidated $58m as Bitcoin shoots past $28,000

A Tuesday Bitcoin rally saw the largest short squeeze of June so far, as traders betting against the leading cryptocurrency had their positions liquidated, CoinDesk reported.

Bitcoin rose above $28,000 on the rally, following several weeks of stagnant price action amid regulatory uncertainty in the US.

Short sellers liquidated $58.8 million over the past 24 hours on Bitcoin shorts, with the wider crypto market seeing over $161 million in short liquidations, according to Coinglass data. The largest single liquidation order, worth $4.67 million, happened on crypto giant Binance.

The rally was partly caused by a smattering of financial giants — such as BlackRock, Deutsche Bank and Citadel Securities — having made roadways to strengthen their positions in the sector, sending positive signals to a market hobbled by ongoing regulatory crackdowns.

BlackRock ETF could hurt Grayscale: analyst

Last week’s proposal by BlackRock to create a spot Bitcoin ETF could hamper crypto asset manager Grayscale, according to Bloomberg Intelligence analyst James Seyffart.

According to Seyffart, an approval for a BlackRock ETF would have an immediate effect on Grayscale’s fee structure, in addition to the potential for capital outflows to the new competitor.

Grayscale is the world’s largest native asset manager with over $16 billion under management, and is currently suing the Securities and Exchange Commission to have its trust upgraded to an ETF.

Peter Thiel and Sam Altman-backed Reserve makes $20m Curve Wars power play

Stablecoin issuer Reserve will make its “largest investment” to date by spending $20 million to buy Curve, Convex Finance and StakeDAO’s governance tokens.

That is according to Thomas Mattimore, head of protocol at Reserve, who spoke with DL News. He said the gamble will enable the California-based company to position itself better in the so-called Curve Wars, the ongoing competition between DeFi protocols to snatch up shares of the enormous liquidity in the Curve Finance ecosystem.

“Our investment is to help advance our stake in the Curve war game,” Mattimore said.

NOW READ: Sam Altman-backed Reserve makes $20m Curve Wars power play

Reserve is backed by investors such PayPal co-founder Peter Thiel, OpenAI co-founder and CEO Sam Altman, Coinbase Ventures and crypto conglomerate Digital Currency Group.

Binance.US market share down to 1.5% as collapse worries loom

Binance.US lost more of its American market share this week, as a US Securities and Exchange Commission lawsuit against the firm earlier in the month caused a steep decline in volume.

The US affiliate of the international crypto exchange down to 1.5% of US crypto exchange trade volume, from a 22% high in March, Bloomberg reported.

Following the SEC’s lawsuit, the firm’s banking and payment partners have cut off their support and many customers have withdrawn their funds, which has led speculation that the exchange is in the process of collapsing.

NOW READ: Polygon decries ‘back-end way’ to regulate smart contracts in EU legislation

Binance.US reached a deal with the SEC last week to avoid a total asset freeze, and laid off several employees to brace for a “multi-year and very costly litigation process.”

More web3 news from around the web…

Ava Labs is the latest crypto network to launch an AI chatbot — Decrypt

Flashbots co-founder warns of ‘serious challenges’ beyond MEV bots in departure letter — The Block

GBTC Share Price Soars, Discount Narrows to Multi-Month Low on BlackRock ETF Filing Optimism — CoinDesk