Larry Fink Calls Crypto "Flight to Quality"

Plus more FTX revelations

Author

Nathaniel Whittemore
October 17, 2023

The Breakdown First Five - Tuesday October 17, 2023

Welcome back to The Breakdown First Five — the 5 most interesting and/or important stories in bitcoin, crypto, and markets to start your day.

5. Gensler is the Problem

ARK Invest lead asset manager Cathie Wood thinks she has identified the problem at the SEC: Gary Gensler. Wood said that she has discussed Bitcoin with SEC staff and “they really understand it.” The only problem for getting a Bitcoin ETF approved is “Gary Gensler standing in the way.” Wood expects a batch of ETFs to be approved all at once and feels that “the SEC is moving now."

4. Gone in the UK

Binance will shut its doors to new customers after failing to secure a licensed domestic partner to assist in complying with UK financial marketing regulations. Existing customers will continue to have access to services but will be unable to expand their access. Binance said they are still looking for a new authorizing partner after their previous deal was scuttled by regulators.

3. Uniswap Fees Switched

Uniswap labs have introduced a 0.15% fee on some ETH and USDC swaps. The fee is separate from accrued protocol fees controlled by token holders and will be collected directly by Uniswap labs to “sustainably fund operations.” Critics have noted that governance token holders are still waiting to turn on fee distributions, which have seemingly been stonewalled indefinitely by regulatory uncertainty.

2. Nishad Singhs

Nishad Singh has joined his colleagues in pointing the finger at Sam Bankman-Fried. The form FTX head of Engineering detailed Sam’s “ostentatious” spending on political donations, venture investments and a luxury penthouse; even as the exchange was collapsing. He also revealed that the fabled FTX liquidation engine had been a sham, hiding losses on the Alameda balance sheet instead of processing underwater accounts.

1. Fake ETF Approval

Coin Telegraph published a tweet claiming that the Blackrock ETF had been approved. Bitcoin’s price spiked above $30,000 before retaining a 5% increase on the day. Analysts noted heavy buying overnight indicating planning behind the fake news, which appears to have been sourced from a Telegram group. Concerns were raised that the brazen price manipulation could set back an ETF approval, but Larry Fink’s public comments indicated he was committed to launch.

Thanks for reading -NLW