Fallout From Falsely Confirmed Approval of Spot BTC ETFs + More Crypto News

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Get your daily, bite-sized digest of blockchain and crypto news – investigating the stories flying under the radar of today’s news.

In this edition:

• Fallout From Falsely Confirmed Approval of Spot BTC ETFs
• Crypto Exchanges to Gross Over $50Bn in 2024
• Binance Labs-Backed Bracket Labs Raises $2M for Trading Platform Launch

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Fallout From Falsely Confirmed Approval of Spot BTC ETFs

Matteo Greco, Research Analyst at the publicly listed digital asset and fintech investment business Fineqia International, commented on the recent compromise of the US Securities and Exchange Commission (SEC)’s Twitter account, which falsely confirmed approval of all spot Bitcoin exchange-traded funds (ETFs) in the country.

Breaking the crypto news space, this event occurred yesterday at 21:11. Then, 15 minutes later, at 21:26 UTC, the SEC chief Gary Gensler tweeted from his account that the SEC had not approved the listing and trading of spot bitcoin ETFs. XSafety, the official Twitter account providing security updates, confirmed the hack.

Many attributed the significant sell-off to be caused by the fake news, with BTC’s price dropping from almost $48,000 to below $45,000 before rebounding and stabilizing in the range between $45,000 and $46,000 overnight, said Greco in an email.

“However, a closer analysis of the price action reveals a different narrative.”

At 21:11 UTC, the BTC price was around $46,700. The price immediately spiked, reaching $47,400 in one minute and reaching its highest point of about $48,000 only four minutes later.

At that level, BTC dropped back to $46,700 in just one minute, the same price recorded five minutes before, in correspondence to the SEC’s announcement.

From there, the price continued to dip, reaching a minimum of about $44,750 at 21:25 UTC, exactly one minute before Gary Gensler’s tweet.

After the revelation of the fake news, BTC price stabilized in the range between $45,500 and $46,000. At the time of writing, BTC is trading at approximately $45,500.

Per Greco,

“The price action analysis confirms that yesterday’s market movement was a reaction to what was believed to be real news, resulting in a classic “sell the news event”.”

This pattern is typical in the market, where participants buy in the days leading up to a news event and then sell when the news becomes officially public, he said.

More Crypto News: Exchanges to Gross Over $50B in 2024

Crypto exchanges are expected to gross over $50 billion this year – 25% more than in 2023, according to data from Stocklytics.com.

Before 2022, crypto exchanges’ revenues were skyrocketing, driven by the surging crypto adoption and institutions embracing digital assets.

According to Statista, revenues jumped 22 times between 2017 and 2021, from $1.6bn to $35.5bn. In 2020 and 2021, revenues jumped over 300% year-over-year.

In 2022, the global revenue dropped by 43% to $20.1bn, the most in the market’s history, the report said.

“However, 2023 marked a turning point, despite challenging economic conditions and significant headwinds in the crypto space.”

Global crypto revenues spiked by 102% and hit $40.7bn, returning the market where it was before the 2022 drop. Global revenue of crypto exchanges, crypto banks, and trading platforms will continue to grow in 2024 and beyond, surpassing $71 billion in 2028.

The Statista data also shows that all major crypto markets will see double-digit revenue growth. The US crypto exchanges will see their revenues grow by 29% to $23bn, while the UK market will see a 30% rise to $2.5bn.

Russia, Japan, and Germany follow with 21%, 20%, and 18% year-over-year growth rates and around $2bn in crypto revenues each.

Binance Labs-Backed Bracket Labs Raises $2M for Trading Platform Launch

Bracket Labs completed a $2 million pre-seed fundraise round to support the launch of Passage, a volatility trading product available on the project’s BracketX trading platform.

Per the press release, “the debut of the range-bound product makes trading long and short volatility entirely on-chain easy for traders of all levels.”

Passage launches with ETH-denominated markets and plans to incorporate liquid-staked tokens in the future. Passages will deploy on BNB Chain in 2024 as well.

In June 2023, Bracket Labs completed Binance Labs’ Season 5 Incubation Program and received investment from Binance Labs.

It also completed its pre-seed investment round from other notable crypto funds such as NGC Ventures, Cypher Capital, 0x Capital, PHD Capital, FJ Labs, SCC Investments, K300 Ventures, Scope Research, W3Coin Ventures, Titan Equity Group, and Bitfund DAO.

Launched in 2023, the Bracket Labs team includes senior-level veterans of D.E Shaw, Merrill Lynch, Barclays, Bloomberg, Consensys, and DeerCreek, it said.

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