Today in crypto, SEC raises concern on REX-Osprey staking ETFs, the IMF has raised concerns over Pakistan’s decision to allocate 2,000 megawatts of electricity for Bitcoin mining, and BlackRock posts its largest spot Bitcoin ETF outflow day ever.
The SEC says REX-Osprey staking funds may not meet legal definition of ETFs
The United States Securities and Exchange Commission (SEC) raised concerns about the SOL and Ether REX-Osprey staked exchange-traded fund (ETF) applications due to their corporate structure, despite an effective registration filing from the ETF issuers on May 30.
According to a letter sent by the SEC to the ETF issuers, the agency says that the c-corp business structure used by the funds may make the investment vehicles ineligible to qualify as exchange-traded funds under existing US securities laws. The letter read:
"The Funds may have improperly filed their registration statement on Form N-1A and disclosures in the registration statement regarding the Funds’ status as investment companies may be potentially misleading."
Despite this minor setback, ETF analysts are confident that the issuers and the SEC will find a workaround and be able to list the investment vehicles on US stock exchanges.
IMF raises concern over Pakistan’s Bitcoin mining power plan
The International Monetary Fund (IMF) has raised concerns over Pakistan’s decision to allocate 2,000 megawatts of electricity for Bitcoin mining and artificial intelligence data centers amid ongoing negotiations tied to the country’s extended financial program.
The initiative, announced last week, is designed to attract autonomous miners, blockchain companies, and AI firms to Pakistan.
However, the IMF has raised red flags about the move, requesting urgent clarification from the Finance Ministry regarding the legality of crypto mining and the power allocations, particularly as the nation struggles with chronic energy shortages and fiscal pressures, according to a report by local news outlets Samaa.
Per the report, the IMF was not consulted prior to the announcement and is questioning the legal standing of cryptocurrencies in Pakistan. The Fund has also voiced concerns over potential impacts on power tariffs and resource distribution.
“There is a fear of further tough talks from the IMF on this initiative,” an official involved in the ongoing negotiations reportedly said. “The economic team is already facing stiff questions, and this move has only added to the complexities of the talks.”
BlackRock’s Bitcoin ETF ends 31-day inflow streak with biggest outflow ever
The world’s largest asset manager, BlackRock, has ended its 31-day spot Bitcoin exchange-traded fund (ETF) inflow streak with its biggest recorded outflow day since the product launched in January 2024.
On May 30, BlackRock’s spot Bitcoin ETF (IBIT) ended its significant inflow streak with its largest daily outflow of $430.8 million, according to Farside data. Before this, IBIT’s largest outflow day was on Feb. 26, with $418.1 million in outflows.
ETF analyst Nate Geraci said in a May 31 X post, “What a run over the past 30+ days, though.” Geraci highlighted that BlackRock is “now pushing” approximately $70 billion in Bitcoin holdings since it launched. “Not sure I have words to describe how ridiculous this is,” Geraci said.
