Today’s crypto market saw significant developments from major regulators and financial institutions, including the SEC, IMF, and BlackRock. These events directly impact the trends of Bitcoin, DeFi, Web3, and crypto-related investment products.
SEC Raises Concerns Over Legality of REX-Osprey Staking ETF
The U.S. Securities and Exchange Commission (SEC) has raised concerns about REX-Osprey’s staking ETF applications, including those related to Solana (SOL) and Ethereum (ETH). The SEC believes that the C-corp structure used by these funds may not meet the standards to be considered a legitimate exchange-traded fund under U.S. securities law.
In a letter to ETF issuers, the SEC warned that the N-1A filing may be inappropriate and that the disclosures may be misleading to investors. However, analysts remain optimistic that the parties involved will find a way to get the ETF listed soon.
IMF Criticizes Pakistan’s Bitcoin Mining Plan
The International Monetary Fund (IMF) has voiced concerns over Pakistan’s decision to allocate 2,000 megawatts of electricity to Bitcoin mining and artificial intelligence centers. The IMF has asked the Pakistani government to clarify the legality of the plan amid the country’s financial stress and energy shortages.
According to local reports, the IMF was not consulted before the plan was announced, which could complicate negotiations on an expanded financial assistance program. The IMF warned of implications for electricity prices and the allocation of resources in the country.
BlackRock’s Bitcoin ETF Sees Record Outflows
After a 31-day streak of inflows, BlackRock’s IBIT Bitcoin Spot ETF saw a record outflow of $430.8 million on May 30. This is the largest negative outflow since IBIT launched in January 2024, surpassing the previous record of $418.1 million on February 26.
“It’s been an incredible rally that’s lasted for over a month,” said ETF analyst Nate Geraci, noting that BlackRock has now accumulated nearly $70 billion worth of Bitcoin in its fund, highlighting the growing influence of the institution on the cryptocurrency market.
Today’s developments show the sensitivity of the cryptocurrency market to regulatory and strategic decisions from leading financial institutions. From regulatory hurdles for ETFs, concerns about Bitcoin mining energy, to cash flow fluctuations of large investment funds, all are important factors shaping the trend in the coming time.
