The BTC-spot ETF market sparked a widespread crypto surge, with BTC aiming for $50,000. Meanwhile, ongoing SEC actions against Coinbase and Ripple continue to attract attention.
BTC experienced a 10.92% increase, reaching $47,277 from Monday to Saturday. The net inflows from the BTC-spot ETF market during the week heightened investor fear of missing out (FOMO). BTC reached a peak of $48,175 on Friday, driven by a surge in net inflows in the BTC-spot ETF market on Thursday.
BTC Weekly Chart 100224
On Thursday, there was a notable increase in BTC-spot ETF market net inflows from $146.1 million (February 7) to $405.0 million (February 8). The iShares Bitcoin Trust (IBIT), a leading January 2024 SEC-approved BTC-spot ETF, observed net inflows of $204.1 million, contributing to a total of $3,499.7 million in net inflows.
The Fidelity Wise Origin Bitcoin Fund approached the $3 billion mark, recording net inflows of $128.3 million and totaling net inflows of $2,934.2 million.
The FOMO trend extended beyond BTC, as the overall crypto market cap surged by 9.46% ($150 billion) to $1,739 billion from Monday to Saturday.
During a House Financial Services Committee hearing on February 10, US Treasury Secretary Janet Yellen emphasized the need for a regulatory framework for digital assets. Yellen highlighted concerns about potential risks from crypto assets, price volatility, and non-compliant platforms. She urged Congress to enforce applicable rules and regulations, particularly focusing on stablecoins and the spot market for non-securities crypto assets.
Yellen's call for regulation aligns with previous appeals for legislation regarding cryptocurrency, coinciding with ongoing deliberations on Coinbase’s Motion to Dismiss (MTD) and the SEC's authority over US crypto exchanges. Notably, Coinbase asserts that the SEC lacks the legal jurisdiction to regulate these exchanges, and Yellen's stance may inadvertently bolster Coinbase's argument.
In response to Yellen’s testimony, both Ripple's Stuart Alderoty and Coinbase's Paul Grewal expressed agreement, emphasizing the necessity for Congressional involvement in cryptocurrency regulation. These viewpoints align with their skepticism of the SEC’s attempt to expand its regulatory authority over the crypto market.
Throughout the week ending February 9, Coinbase shares increased by 9.88% to $141.99, influenced by investor sentiment surrounding the SEC versus Coinbase case and developments in the BTC-spot ETF market.
Coinbase Weekly Chart 100224
A joint letter addressed to SEC Chair Gary Gensler on February 7, co-signed by US senators JD Vance, Thom Tillis, Bill Hagerty, and Cynthia Lummis, voiced apprehensions about the SEC's conduct in the SEC versus Debt Box case.
The SEC's unexpected Motion to Dismiss the charges against Debt Box in January 2024 followed a court directive from December, compelling the SEC to justify its actions in light of alleged false and misleading statements to the court.
The senators' letter outlined their concerns about potential unethical behavior within the SEC and indicated a possible inquiry into other enforcement cases managed by the Commission. This move comes amid suspicions that the Motion to Dismiss was an effort to avoid further scrutiny that could affect ongoing cases involving other crypto firms. The senators stressed the need for confidence in the legitimacy of the evidence and representations in the SEC's enforcement actions.
This week commenced with significant attention on the SEC v Ripple case as Judge Torres approved the SEC's Motion to Compel on Monday, February 5. The motion urged Ripple to furnish specific remedies-related discovery, including financial statements for 2022/2023, post-complaint contracts governing XRP sales to institutional investors, and an interrogatory response concerning the amount of XRP institutional sales proceeds post-complaint.
The SEC is pursuing punitive disgorgement against Ripple for breaching Section 5 of the Securities Act. In a previous ruling in July, Judge Torres found that Ripple violated the Act by failing to register XRP as a security in sales to US institutional investors. She indicated that she would take into account post-complaint breaches when determining penalties.
Despite XRP's 4.95% increase to $0.5277 from Monday to Friday, it lagged behind the broader market. The SEC's intention to challenge the ruling on Programmatic Sales of XRP poses an additional challenge for XRP. Furthermore, in the July 2023 ruling, Judge Torres concluded that Programmatic Sales of XRP did not satisfy the third prong of the Howey test.
The SEC's plan to appeal the ruling on Programmatic Sales was evident from its previous actions. In October, Judge Torres dismissed an SEC interlocutory appeal, mandating the SEC to wait until the trial's conclusion before lodging an appeal.
XRP Weekly Chart 100224
The trial of Craig Wright began earlier this week, with the Crypto Open Patent Alliance (COPA) asserting that Wright is not the real Satoshi Nakamoto. Despite Wright's public declaration of being Satoshi since 2016, there has been no public rebuttal to his claim.
However, Dr. Craig Wright has been unable to provide the private keys necessary to access more than 1 million BTC coins reportedly mined by Satoshi. More testimony from Craig Wright is anticipated on Monday, February 12th.
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