More Finance Giants follow BlackRock in filing for a Bitcoin ETF ??; a16z's first overseas office in UK is a BIG Thing ????; Regulating crypto is ??

???Hey,?Linas here!?Welcome to a????monthly free edition????of my daily newsletter. Each day I focus on 3 stories that are making a difference in the financial technology space. Coupled with things worth watching & most important money movements, it’s the only newsletter you need for all things when Finance meets Tech.

If you’re not a subscriber, here’s what you missed last month:

1. Investor list that don't need warm intro????[read this if you want to grow your startup ??]
2. 3 templates to make startup life easier???
3. 4 Essential M&A Templates to Master the Art of Dealmaking??? ???[Read this if you want to supercharge your M&A strategy ]
4. The most powerful pitch deck framework in the world that helped create over $4 trillion in value????[a list of resources to build the next unicorn faster and easier]
5. Sam Altman's Worldcoin closes one of the biggest crypto funding rounds in 2023???
6. Block’s new strategy: brilliant but risky???
7. Are Europe’s top VCs still investing?????[+ resources on how to fund your startup 10X easier]
8. Banks are becoming crypto companies: Deutsche Bank applies for crypto license???
9. When 1+1=3: Robinhood buys credit card startup X1???
10. How struggling is Robinhood????
11. Bitpanda does a crypto spin out???
12. Crypto is having a momentum right now???
13. Is Google buying Stripe????

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June was an absolutely monumental month in the world of #Blockchain and #Cryptocurrency.?We will look at big names following BlackRock in filing for a Bitcoin ETF (it’s getting very BIG!); a16z going international and opening its first overseas office in the UK (why this is BIG + priceless resources for startup building); SEC that sued Coinbase and Binance (regulating crypto gets aggressive & what are the implications of it), and other interesting news and developments.

Without further ado, let us dive into what happened in the Blockchain & #Crypto sector last month. Let’s connect the dots.

More Finance Giants follow BlackRock in filing for a Bitcoin ETF ??

The BIG news ?? WisdomTree?and?Invesco?have filed applications for spot Bitcoin exchange-traded funds (ETFs) in the US, following?BlackRock's?massive?move a week ago.

ICYMI: BlackRock’s Bitcoin ETF: a game-changer or just hype????

More on this ???New York-based asset management firm WisdomTree Asset Management has applied for a 3rd time, requesting that the SEC allows WisdomTree to list its “WisdomTree Bitcoin Trust” on the Cboe BZX Exchange under the ticker “BTCW.” The SEC previously rejected its application in December 2021, and again in October 2022, claiming concerns of fraud and market manipulation.

Meanwhile, Invesco US has "reactivated" its application for its “Invesco Galaxy Bitcoin ETF.” According to the filing, the spot Bitcoin ETF will make use of "professional custodians and other service providers."

WisdomTree had $90.7 billion in assets under management as of April while Invesco, one of the largest ETF issuers in the world, had $1.4 trillion in assets under management as of April. That’s a lot of money ??

?? THE TAKEAWAY

Zoom out ???The two firms now join BlackRock , which surprised the market with its filing for a spot Bitcoin ETF filing about a week ago. We must note that thus far, the SEC has only approved bitcoin ETFs that are tied to U.S.-traded futures and has cited the lack of proper cross-exchange market surveillance as one reason why it won't approve a bitcoin spot ETF.?Yet, once you zoom out, it's clear that this is just the beginning of a bigger wave we have started seeing as many of the largest financial institutions in the US (and globally) are actively working to provide access to Bitcoin. So far, $27 trillion of client assets are here, and that might not be the end of it.

a16z opening its first overseas office in the UK is a BIG Thing ????

The launch ???A16z Crypto, the Andreessen Horowitz venture capital fund dedicated to crypto and Web3 startups, has chosen the UK as its first overseas office outside the US, various sources reported.

This is a BIG move, so let’s take a look.

More on this ???The VC was attracted to the UK by its regulatory regime, which has embraced the crypto and Web3 economy in a bid to stamp out the 'casino culture' that has tarnished the industry.

In a blog post announcing the move, the firm said:

While there is still work to be done, we believe that the UK is on the right path to becoming a leader in crypto regulation. The UK also has deep pools of talent, world-leading academic institutions, and a strong entrepreneurial culture. It is home to more “unicorns” than Germany, France, and Sweden combined; to some of the world’s largest financial markets and pools of capital; and to highly sophisticated, world-class regulators. All of these make the UK strongly positioned to lead in web3.

The new office, set to open later this year, will be led by GP Sriram Krishnan, who along with a team, will work to grow the crypto and startup ecosystem in the UK and Europe.

?? THE TAKEAWAY

Why this matters? ???First and foremost, a16z’s expansion to the UK is not about the capital - it’s a strong and timely signaling to US policymakers about crypto and how they are?damaging?the industry.

ICYMI: Regulating crypto industry gets aggressive: SEC sues Coinbase and Binance???

Secondly, it potentially indicates that the UK is doing something right and its quest to become a global web3 hub might not be too far-fetched. Even Prime Minister Rishi emphasized the country’s support for web3 and its aim to provide regulatory clarity for crypto businesses. And that’s crucial for everyone - from startups to VCs. Here’s a brilliant comparison of?the SEC's proposed approach vs. the UK government's proposed approach to crypto?(the winner is more than obvious):

Finally, there’s clearly a money moment too. Although the level of deal flow and access to LPs in the UK is nothing close to the US, but the fact that another top VC is coming to Europe definitely means that there will be more investments and more opportunities. Having Sequoia, Bessemer, Lightspeed, Leftlane, Thoma Bravo, Coatue, General Catalyst, and now Andreessen Horowitz opening UK offices in the last 3 years alone shows that the startup ecosystem in Europe is getting more vibrant. So again - it’s time to build! ??

To make it easier, you can start here:

You will also unlock a breakdown of the most powerful pitch deck framework and essential resources for building a startup in 2023 (a global investor database, how to raise money in a challenging market, etc.).

Regulating crypto industry gets aggressive: SEC sues?Coinbase?and?Binance???

The news ???The Securities and Exchange Commission (SEC)?has taken an aggressive regulatory stance in the crypto industry by filing lawsuits against crypto giants?Coinbase?and?Binance.

More on this ???Recently, the SEC brought 13 charges against Binance , accusing them of operating unregistered exchanges, violating securities regulations, and mishandling customer funds.

These are pretty serious accusations.…

ICYMI: SEC sues Binance and CEO Changpeng Zhao???

Following that, the SEC sued Coinbase for not registering its crypto trading platform and violating securities laws.

What does this mean? ???With a lack of a clear regulatory framework in the US, the SEC is adopting a stronger enforcement approach to crack down on non-compliance.

By targeting two prominent crypto firms within such a short timeframe, the SEC aims to demonstrate its willingness to legally challenge companies that it believes are not adhering to regulations, irrespective of their size and impact.

Members of the crypto industry have rightly criticized the SEC for its heavy-handed approach and highlighted the regulatory gaps in the US.

?? THE TAKEAWAY

What’s next? ???The SEC's actions yet again convey its belief that cryptocurrencies should be treated as securities, and it is thus prepared to take legal action against firms that fail to do so. This means that crypto companies relying on the "ask forgiveness, not permission" approach may face significant repercussions (Coinbase and Binance won’t be the last ones). Zooming out, these lawsuits against prominent crypto companies could further erode consumer confidence in cryptocurrencies and distance them from mainstream finance. On top of that, financial incumbents like Goldman Sachs?and JPMorgan, which have invested in crypto operations as well as have both indirect and direct exposure, may consider reevaluating their positions as cryptocurrencies increasingly operate on the fringes of financial services.

Extra Reads & Quick Bites for Curious Minds??

• Bye, institutions ?? Digital Currency Group (DCG)?is closing its trade execution and prime brokerage services outfit,?TradeBlock, citing the crypto winter, broader economy, and US regulatory environment. TradeBlock, which was acquired by DCG's CoinDesk in 2020 before being spun out, will be closed own at the end of May. DCG posted a $1.1 billion loss for 2022 as it faced up to the crypto winter and specifically the collapse of Three Arrows Capital, for which it was the largest creditor. The group's broker unit Genesis also went bankrupt listing debts of around $3.5 billion. This month, DCG reportedly missed a $630 million debt payment owed to Genesis.
• Getting paid BIG Time ???The closure of?FTX, a cryptocurrency exchange, is projected to be very costly due to significant professional fees that have already exceeded $200 million, with lawyers and professionals accumulating thousands of billable hours. The lack of regulation and basic corporate governance in the exchange has been cited as factors contributing to the high costs.?Reread: A mindblowing FTX report???

Money Moves??

• Taiko Labs, a crypto startup aimed at scaling the Ethereum blockchain, has?raised $22M?across two funding rounds, with a?$10M?seed round led by Sequoia China and a?$12M?pre-Series A round led by Generative Ventures.
• UK-based crypto and digital currency payments platform?BoomFi?has raised?$3.5M?in?seed funding.?

Continue reading by subscribing to?Linas's Newsletter.?You will receive fresh news about FinTech, Blockchain & Crypto with hot takeaways every day.

P.S.?You might enjoy my earlier pieces as well:

?? Top 10 FinTech predictions for 2023 ??

?? Top banking trends to watch in 2023 ??

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About: I am?a business developer, sales professional, FinTech strategist, as well as Cryptocurrency and Blockchain enthusiast. I'm highly passionate about Financial Technology and Digital Innovation, and strongly believe that it will change the world for the better. Apart from my daily job at a global payments startup where I'm leading the company's expansion into Europe, I'm an active member of the FinTech community and a TechFin evangelist.

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