1. Bitcoin Spot ETFs Pull in Record Inflows, Fueling BTC Rally
Major spot Bitcoin exchange-traded funds (ETFs) have collectively amassed over $1.8 billion in net new inflows since trading began two weeks ago, underscoring soaring investor demand for regulated Bitcoin exposure. BlackRock’s IBIT and Fidelity’s FBTC continue to lead the pack, each attracting roughly $600 million, while newcomer Ark 21Shares’ Bitcoin ETF has drawn nearly $250 million. The flood of capital has helped Bitcoin climb above $31,000, a level not seen since June, and pushed Bitcoin’s year-to-date gains to nearly 80 percent. Analysts say the sustained ETF demand may tighten BTC spot liquidity and underpin further price gains, though volatility could return if the U.S. Securities and Exchange Commission (SEC) moves to curb outflows. (via CoinDesk)
2. SEC Delays Decisions on Ethereum Spot ETF Proposals
The U.S. Securities and Exchange Commission has formally extended its review period for multiple spot Ethereum ETF applications, including filings from BlackRock, VanEck, and Bitwise. The SEC’s new deadline for a yes/no ruling on these products has been pushed to late January 2024. Applicants had hoped to ride the coattails of the SEC’s recent approvals of spot Bitcoin ETFs earlier this year, arguing that ETH exhibits similar market maturity and custodial safeguards. However, SEC Chair Gary Gensler has signaled continued concerns around Ethereum’s network decentralization and potential for tradable “securities-like” features. The delay leaves institutional investors waiting on the sidelines and Ethereum traders speculating on whether an eventual approval could catalyze a fresh ETH price rally. (via The Block)
3. U.S. House Passes Stablecoin Regulation Bill, Heads to Senate
In a bipartisan vote, the U.S. House of Representatives approved the “Stablecoin TRUST Act,” aiming to establish a federal framework for issuer custody, reserve audits, and insurer protection of stablecoins. The measure would require all issuers to hold one-to-one, on-balance-sheet reserves for U.S. dollar–backed tokens, submit to regular public reporting, and secure bank-like custody arrangements. Proponents say this will reduce systemic risk and protect consumers, while industry groups caution that onerous rules could stifle innovation. The bill now advances to the Senate, where lawmakers must negotiate details, including whether to carve out algorithmic stablecoins or mandate FDIC insurance for reserves. The outcome could set a global standard for stablecoin oversight. (via CoinTelegraph)
4. Binance Fined €3.6 Million for AML Failures by Dutch Regulator
The Dutch Authority for the Financial Markets (AFM) has slapped Binance with a €3.6 million penalty for failing to comply with anti-money-laundering (AML) regulations. The fine follows AFM’s findings that Binance did not sufficiently verify source-of-funds information for high-net-worth clients and delayed reporting suspicious transactions. Binance has committed to overhauling its compliance operations in the Netherlands, including hiring more AML specialists and updating its transaction-monitoring systems. This is the latest in a string of enforcement actions against the exchange worldwide, reflecting heightened global scrutiny of crypto platforms’ compliance practices. Binance says it is “fully cooperating” with regulators to ensure it meets evolving standards. (via Decrypt)
5. Wormhole Bridge Suffers $100 Million Flash Loan Exploit
Wormhole, a popular cross-chain bridge connecting Ethereum and Solana ecosystems, was hit by a sophisticated flash-loan attack that drained approximately $100 million worth of wrapped tokens within minutes. The attacker exploited a vulnerability in Wormhole’s token minting contract, briefly minting over 120,000 wrapped Ethereum (wETH) on Solana. Wormhole’s core contributors halted the bridge and are coordinating with white-hat hackers to recover stolen funds. The incident reignites debate over the security of decentralized cross-chain bridges, which have lost over $2 billion to exploits this year alone. Wormhole’s team says a full security audit and upgrade are underway before any resumption of operations. (via Cointelegraph)