Here is the outline for the newsletter today🔥

• Three Arrows Capital Liquidator's Attempt to Reclaim $1.2B from DCG and BlockFi💸

• Ark Invest might be ahead of BlackRock🤔

Three Arrows Capital Liquidator's Attempt to Reclaim $1.2B from DCG and BlockFi💸

The liquidator of Three Arrows Capital (3AC) has revealed its intention to claw back approximately $1.2 billion from Digital Currency Group (DCG) and crypto lender BlockFi.

The liquidator, Teneo, has identified payments made by the hedge fund during the period leading up to the liquidation process, and it aims to reclaim these funds.

A confidential report from Teneo, reviewed by CoinDesk, outlined more than $1 billion in future claims against DCG and its Genesis lending subsidiary.

These claims consist of both preference claims and claims resulting from issues related to loan and security documentation. Additionally, the report highlighted over $220 million in preferential payments made to BlockFi.

The concept of preference claims arises when a hedge fund knowingly makes payments that give certain creditors an advantage over others. In this case, the claims pertain to transactions made by 3AC during the insolvency twilight zone following the collapse of the Terra Luna project in 2022.

At present, Teneo has not provided details on its specific plans to recover the funds. Digital Currency Group and BlockFi have also refrained from commenting on the matter. It's worth noting that DCG, a major investor in crypto companies, is the parent company of CoinDesk.

Ark Invest might be ahead of BlackRock🤔

The race for a Bitcoin Exchange-Traded Fund (ETF) is heating up, with prominent players in the traditional finance sector vying for regulatory approval. In recent news, CEO Cathie Wood of Ark Invest, a leading investment firm, has claimed that her company is at the forefront of the queue for a spot Bitcoin ETF.

The first Bitcoin ETF application was submitted back in 2013 by Cameron and Tyler Winklevoss. However, despite multiple applications since then, US regulators have yet to approve any such proposal.

Now, the landscape appears to be changing as major financial institutions step into the arena.

BlackRock, the world's largest fund manager, filed an application on June 15 for a spot Bitcoin investment trust fund through iShares, its ETF management arm.

Following suit, other industry giants like:

• Fidelity

• Invesco

• WisdomTree

• Valkyrie Investments

• VanEck

also resubmitted their applications for spot Bitcoin ETFs within a span of two weeks.

However, reports suggest that the SEC found BlackRock's initial application inadequate and lacking specific details.

Consequently, the asset manager refiled its application, indicating that Coinbase would serve as its surveillance partner.

In April, Ark Invest filed its spot Bitcoin ETF application in collaboration with investment company 21Shares. On June 28, Ark Invest amended its filing to include a surveillance-sharing clause, likely designating Coinbase as its partner in this endeavor.

While the debate over which application the SEC will approve first continues, Cathie Wood believes that if granted approval, Ark Invest's application will take precedence. She estimated that the agency could take until mid-January to review Ark Invest's proposal and until March for BlackRock's.

However, before the SEC's decision, clarity might come in August when the court delivers its verdict on Grayscale's lawsuit against the SEC's rejection of its spot Bitcoin ETF application.

Grayscale's proposed ETF aims to be fully backed by Bitcoin in cold storage. Wood argues that approving Bitcoin Futures ETFs, which involve swaps, while not greenlighting a fully-backed Spot ETF, would be contradictory.

Considering these factors, Ark Invest believes it holds an edge over BlackRock in the race for regulatory approval.

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Disclaimer: This is not any kind of financial advise. This newsletter is solely informational; it does not constitute investment advice, a solicitation to buy or sell any securities, or a recommendation regarding how to manage your money. Be cautious and conduct your own study, please.