When Crypto Rebuilds After This Cold Winter, Firms Like Three Arrows Capital Won’t Have a Place; Bitcoin Sinks Toward $20K

“I’ve been seeing a lot of speculation about BlockFi’s risk management practices that I want to address. While our policy is to not comment on specific counterparties, we are committed to providing as much transparency as possible, and it’s important to know the following:” (BlockFi CEO Zac Prince) … “Spot ETPs have launched in other countries without incident and with great investor interest. In Canada, for example, the first spot bitcoin ETP reached $1 billion Canadian dollars in assets under management a month after launch in 2020.[17] Spot crypto ETPs are also popular in Europe, where there are more than 70 crypto ETPs with an estimated total of $7 billion in assets.[18] ETPs in these other jurisdictions have functioned, even in volatile markets. Why is the SEC a holdout? At what point, if any, does the increasing maturity of the bitcoin spot markets and the success of similar products elsewhere tip the scale in favor of approval? Of course, the facts and circumstances of each application matter, but will I ever stop hearing that well-worn question: “When a spot bitcoin ETP?” (SEC Commissioner Hester Peirce in a June 14 speech) … “interview today, asked if BTC can scale for payments for transparency, my answer: 1) BTC can absolutely be payment asset, on lightning, L2, or wrapped 2) BTC chain not intended to scale to millions of TPS, so won’t be global payments directly 3) bullish on blockchain payments.” (FTX CEO Sam Bankman-Fried/Twitter)