Bitcoin

SEC approves rule change to allow creation of ether ETFs

Published

11 months ago

24 May, 2024

SEC approves rule change to allow creation of ether ETFs

A representation of the cryptocurrency Ethereum is placed on a PC motherboard in this illustration taken on June 16, 2023.

Given Ruvic | Reuters

The SEC on Thursday approved a rule change that would clear the way for buy-and-hold ETFs etherone of the largest cryptocurrencies in the world.

The decision comes less than six months after the Securities and Exchange Commission Approved Bitcoin ETFs. These funds have proven to be a huge success for the industry, with net inflows now exceeding $12 billion, according to FactSet.

The end of May was considered a potential decision date for the Ether funds, as it coincided with the deadline for the SEC to decide whether the VanEck Ethereum ETF could proceed.

Many of the companies that sponsor bitcoin ETFs – including BlackRock, Bitwise and Galaxy Digital – have also begun the process of launching an Ether fund.

The price of ether rose just 2%, although it remains a 20% increase from the beginning of the week, in anticipation of Thursday’s decision. Some investors may also be on pause, as approval of the SEC rule change does not guarantee that all funds will be launched.

Specifically, the SEC order approves registrations from various exchanges to list eight different Ether funds. The order technically does not approve the funds themselves or set a date for ETF trading to begin.

Ether ETFs are expected to be smaller, at least initially, than their Bitcoin counterparts. The Grayscale Ethereum Trust currently has about $11 billion in assets, much smaller than the company’s bitcoin trust was before its conversion.

The approval of ether ETFs is a sign that the SEC’s stance on crypto may be softening after a series of legal fights. The agency lost a case against Grayscale in 2023, which spurred the approval of bitcoin products.

The SEC’s push to regulate crypto has also come under scrutiny from politicians. The Senate last week approved a resolution to withdraw an SEC staff bulletin on accounting rules for digital assets.

Ether is the second largest crypto asset and has become something of a blue chip currency alongside bitcoin, although its value proposition is distinctly different. While Bitcoin is primarily viewed as a long-term store of value, an investment in ether is considered more similar to an investment in early-stage technology. The Ether token powers the Ethereum network, which powers different applications such as decentralized finance (DeFi) projects, non-fungible tokens (NFTs) or the tokenization of real-world assets such as commodities, securities, art, real estate and more.

The orders approved Thursday do not apply to other crypto projects on the Ethereum network, said Richard Kerr, a partner at law firm K&L Gates.

“If and when an Ether product is approved, it does not mean that a similar product for other digital assets on the Ethereum platform would be approved,” Kerr said.

Ethereum also offers staking opportunities, which is a way for investors to earn interest on their Ether holdings by locking tokens on the network for a period of time – although US Ether ETFs may not participate. The SEC has alleged in lawsuits against Coinbase and Kraken that staking-as-a-service offerings are unregistered securities. Ark, Fidelity and Grayscale updated their filings this month to remove staking from their proposals.

The lack of participation in ETF products is another reason why ether ETFs may be in less demand than their bitcoin counterparts, said Steven Lubka, managing director at Swan Bitcoin and head of Swan Private.

“These numbers are not going to match bitcoin ETF flows, and there are some structural differences in the product that just make it less attractive overall,” Lubka said.

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SEC approves rule change to allow creation of ether ETFs

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Bitcoin

What to watch for in the markets

Published

9 months ago

21 July, 2024

SatoshiTimes Staff

Photo: Andrew Harnik (Getty Images)

After witnessing one of the largest global IT outages on record, affecting the travel, finance and healthcare sectors worldwideThis week is set to see more political drama, events, and earnings reports from tech giants.

Donald Trump’s ‘Lovefest’ Sets Jamie Dimon Up for Consideration for Treasury Secretary Job

Let’s take a look at what awaits us:

Major companies will release their earnings reports

Major tech companies and others will release their earnings reports this week, paving the way for what the second half of 2024 will look like.

Monday

Verizon will report earnings before the start of operations.

Tuesday

Coca-Cola, Comcast and UPS are all set to report earnings before the market opens.
Tesla will report earnings in the morning, while General Motors will report earnings in the evening.
Alphabet and Visa will report results after the market closes.

Wednesday

AT&T will release its report before the market opens.
Ford and Chipotle will report earnings after the market closes.

Thursday

Earnings reports from AstraZeneca, American Airlines and Southwest Airlines will be released before the market opens.

Trump to speak at Bitcoin conference

Presumptive Republican presidential nominee Donald Trump will speak at the next Bitcoin Conference in Nashville, Tennesseewhich is scheduled for July 25-27. While this is the first time a presidential candidate will attend the conference, it has sparked a debate over whether the crypto-friendly Trump will receive support from the crypto community in the upcoming election.

In addition to Trump, independent presidential candidate Robert F. Kennedy Jr. will also discuss crypto during the conference. Crypto advocates such as ARK Investment’s Cathie Wood, MicroStrategy’s Michael Saylor, and whistleblower Edward Snowden are among some prominent names who will be participating in the conference.

Ether ETFs are on the way

New Ether Spot ETFs are set to begin trading on Tuesday, July 23. Much like the spot Bitcoin ETFs, these ETFs will allow investors to buy the second most popular cryptocurrency like stocks. BlackRock, Ark Invest/21Shares, VanEck, Grayscale, Fidelity, Bitwise, Franklin Templeton, and Invesco/Galaxy Digital are all set to offer Ether ETFs. Crypto asset manager Bitwise predict that trading in the Ether ETF will drive the price of Ether higher, potentially surpassing $5,000.

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Bitcoin

Cryptocurrency’s Biggest Winners and Losers in a Second Trump Presidency

Published

9 months ago

21 July, 2024

SatoshiTimes Staff

Cryptocurrency’s Biggest Winners and Losers in a Second Trump Presidency

Bitcoin miners and cryptocurrency companies that have been blocked from going public in the U.S. could ultimately be the biggest winners in the digital asset world under a second Donald Trump presidency. Foreign companies at risk of losing market share could end up being the biggest losers.

That’s the view that’s taking hold among market participants and observers in the wake of the former president’s growing embrace of cryptocurrency as his chances of election grow. survey released Thursday by CBS News showed Trump with the majority — 52 percent — of likely voters in his likely November rematch with President Joe Biden.

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Bitcoin

Bitcoin, Ethereum, Solana and Cryptocurrency Markets Look Ready to ‘Send’ as Stars Align, According to Investor Chris Burniske

Published

9 months ago

21 July, 2024

SatoshiTimes Staff

Bitcoin, Ethereum, Solana and Cryptocurrency Markets Look Ready to ‘Send’ as Stars Align, According to Investor Chris Burniske

Cryptocurrency investor Chris Burniske says Bitcoin (BTC), Ethereum (ETH), Solana (SUN) and the cryptocurrency market in general seem poised for a run.

Former Head of Cryptocurrency at ARK Invest account his 292,200 followers on social media platform X that several catalysts are aligning, suggesting that digital asset markets are on the verge of a bull run.

According to Burniske, a partner at venture capital firm Placeholder, the highly anticipated launch of Ethereum-based exchange-traded funds (ETFs), Republican presidential candidate Donald Trump speaking at an upcoming Bitcoin event, and the current state of the BTC, ETH, and SOL charts all suggest significant optimism for the cryptocurrency markets.

“With ETH ETFs set to go live, Trump speaking at The Bitcoin Conference, and BTC, ETH, and SOL charts looking [they do] (while stocks are weak), it’s hard to imagine a world where we don’t ship next week.”

Reuters recently reported that preliminary approval for ETH ETFs has been granted as the Bitcoin Conference is scheduled to take place from July 25-27.

BTC, ETH, and SOL are trading at $67,333, $3,528, and $174 at the time of writing, respectively.

The venture capitalist too provides an update on his prediction that the total crypto market cap will eventually hit $10 trillion. According to his chart, the path to $10 trillion is currently “23%” complete, as it sits around $2.2 trillion.

Source: Chris BurniskeX

Earlier this month, Burniske he said in an interview with Real Vision CEO Raoul Paul that he has his eye on the Move ecosystem, which was originally built by social media giant Meta and then used to develop layer 1 blockchains Sui (IUE) and Apts (APT).

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Bitcoin

Here’s the next target for BTC before bulls can hold out for $70K

Published

9 months ago

21 July, 2024

SatoshiTimes Staff

Here’s the next target for BTC before bulls can hold out for $70K

Bitcoin’s recovery is going well, and the market is seemingly poised to create a new all-time high in the near term.

Technical analysis

Per NegotiationRage

The daily chart

As the daily chart shows, the price of Bitcoin has been rising since it broke above the 200-day moving average.

The market has also reclaimed the $60K and $65K levels and is moving towards the $68K resistance zone, which could be the last hurdle before creating a new all-time high. With the RSI also indicating that the price has clear bullish momentum, it could be just a matter of time.

Source: TradingView

The 4-hour chart

Looking at the 4-hour chart, it is evident that the price has been rising rapidly since breaking the downtrend line to the upside. The market also broke the $65K resistance level with momentum, turning it into a support.

While almost everything points to a new record high in the coming weeks, there is one worrying sign. The RSI is showing a clear bearish divergence between recent price highs, which could indicate a correction or even a reversal in the near term.

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Cryptocurrency Charts by TradingView.

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