Backpack Exchange completed the acquisition of FTX EU, while Bitcoin and Ethereum ETFs saw $1.1 billion in inflows. CFTC Chair Rostin Behnam announced his resignation.
Backpack acquires FTX EU
Backpack Exchange, founded by former employees of FTX and Alameda Research, has completed the acquisition of FTX EU. The transaction was approved by the FTX bankruptcy court and the Cyprus Securities and Exchange Commission. Backpack EU will handle the distribution of court-approved FTX EU bankruptcy claims to users. CEO Armani Ferrante emphasized the importance of customer restitution in rebuilding trust in the industry. The exchange plans to launch crypto derivatives within the EU in Q1 2025. Ferrante previously raised $20 million to establish Coral, the company developing Backpack's trading and wallet technology stack. However, most of those funds were lost following FTX's collapse. Backpack was valued at $120 million during its Series A funding round in early 2024.
Bitcoin and Ethereum ETFs receive over $1 billion
U.S. spot Bitcoin and Ethereum ETFs attracted more than $1.1 billion in combined net inflows on Monday, allowing Bitcoin to briefly reach the $100,000 mark before Tuesday's correction. The spot Bitcoin ETFs garnered $978.6 million, led by Fidelity’s FBTC fund, which recorded $370.2 million in net inflows. This marks a significant turnaround after nearly $2 billion in net outflows over the previous two weeks. Meanwhile, spot Ethereum ETFs generated $128.7 million in inflows on Monday, led by BlackRock's ETHA fund, which added $124.1 million.
CFTC Chair steps down
CFTC Chair Rostin Behnam announced he would step down from his role on January 20, with his final day at the agency set for February 7. Over the past few years, Behnam has repeatedly urged Congress to address the lack of federal-level crypto regulation, noting that over 49% of CFTC's enforcement actions in its 2023 fiscal year were related to digital assets, including the now-bankrupt FTX. He also supported the Digital Commodities Consumer Protection Act to define digital commodities and grant CFTC regulatory authority over their trading. Other agency leaders, such as SEC Chair Gary Gensler and Federal Reserve Vice Chair for Supervision Michael Barr, have also announced their departures.
Recent developments highlight significant activity in the crypto world, marked by strategic acquisitions like the FTX EU purchase and increased interest in cryptocurrency ETFs. Meanwhile, Rostin Behnam's impending departure might impact the future of digital asset regulation in the U.S.
