SEC Rejects ARK 21Shares Spot BTC ETF Application, DeFi Lender Inverse Finance Gets Exploited

Daily Market Wrap

• Crypto market cap: 2.16 trillion, down 0.17%

• BTC price stands at USD 46,171, down 0.50%

• ETH price stands at USD 3,506, down 0.44%

• Top gainer: Oasis Network (ROSE), up 12.56%

• Top loser: Waves (WAVES), down 11.14%

News of the Day

21Shares’ June 2021 application for a spot Bitcoin ETF listing on the Chicago Board Options BZX Exchange (Cboe BZX) with Ark Investment Management has been rejected by the SEC.

Why it matters:

• The SEC said that Cboe BZX has not met the requirements of listing a financial product under the Exchange Act and broader rules of practice

• 21Shares is a European exchange-traded product issuer

• To date, the SEC has not approved any spot crypto ETF applications for listing shares in the U.S.

Crypto daily spotlight

DeFi lender, Inverse Finance, has been attacked, stealing $15.6 million in DOLA, ETH, WBTC and YFI tokens.3

Brief introduction: Inverse Finance is a DeFi lending protocol based on fully collateralised cross-chain stablecoins: DOLA and the INV governance token. Users that stake INV tokens received returns in DOLA Revenue Sharing Rewards on Inverse’s Ethereum money market, Anchor. INV has a market capitalisation of about $30 million and circulating supply of 93,726 tokens at the time of writing.

Why it matters:

• The attacker targeted its Anchor money market by manipulating token prices; this allowed the attacker to borrow loans against extremely low collateral

• Last Tuesday, the gaming-focused blockchain, Ronin, lost more than $625 million worth of crypto due to an attack

• Then, last Thursday, Ola Finance was exploited for $3.6 million in crypto; these recent attacks demonstrate the increasing sophistication of attackers’ techniques

Daily sector tracker

Daily News Roundup

1. Kraken Exchange to Support Bitcoin’s Lightning Network After Delay https://bit.ly/3u52KBz

2. FTX in Talks with Indian Gaming Startup MPL for Web 3 Push https://tcrn.ch/3vbVFyz

3. Netz Capital Purchases Ethereum NFT Collection Pudgy Penguins for $2.5 Million https://bit.ly/36QZm4o

4. Wall Street Veteran Caitlin Long Says Crypto Will Split Into Three Camps Due to Regulation https://bit.ly/3Lz6Ck2

5. Designers of Euro Central Bank Digital Currency Consider Privacy Issues https://bit.ly/3K6zSyv

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