2024-05-23 14:31

The SEC faces a Thursday deadline for at least one of the spot ether ETF applications it's reviewing. WASHINGTON, D.C. — U.S. Securities and Exchange Commission Chair Gary Gensler declined on Thursday to preview his agency's decision on ether (ETH) exchange traded funds (ETFs), though he advised observers to "stay tuned." Though he'd reiterated that the court decision on ETFs had caused his agency to "pivot" in its thinking, when asked by CoinDesk on Thursday about what the agency is preparing to do in response to the specific applications on this much-anticipated crypto decision, he largely demurred. Latest News: SEC Approves Spot Ether ETF Listing, Still Needs to Approve Issuers' Filings "I don't have anything on this particular filing," Gensler said outside an Investment Company Institute event in Washington. "We do it within the law and how the courts interpret the law, and that's what I'm deeply committed to," he said, after having noted on stage at the event that the agency had responded to the D.C. Circuit Court of Appeals decision rejecting the SEC's approach toward spot bitcoin (BTC) ETFs earlier this year. The SEC, after weeks of limited engagement, asked exchanges supporting spot ether ETF applications to refile their 19b-4 forms with universal language earlier this week. Those forms were submitted to the SEC by Tuesday, and the exchanges began publishing them online that night. The SEC also appears to have begun engaging with the would-be issuers themselves, as companies like Fidelity and Grayscale filed updated S-1 forms this week. The SEC has to make a final decision on at least one spot ether ETF application by the end of the day Thursday. Based on these forms, it appears the SEC is uncomfortable with the idea that ether ETF issuers might stake any assets. Industry participants previously told CoinDesk that while the SEC's moves this week don't guarantee approval of the ETFs, they make it more likely that the ETFs will be approved. "[The] DC Circuit took a different view, and we took that into consideration and pivoted," Gensler said on Thursday. Gensler also reiterated Thursday that his agency would keep working on its opposition to the crypto bill that passed the House of Representatives on Wednesday. "We'll continue to engage," he said. "It's just a field where the token operators – without prejudging any one of them – aren't making the disclosures that investors really could benefit from and are required by law." "We've seen leaders in this field find themselves on a pathway to jail or extradition," he added. And when asked about Congress seeking to reverse his agency's crypto accounting policy, Staff Accounting Bulletin No. 121 (SAB 121), he argued that the agency meant it as guidance at a time when failing crypto firms were having to treat customer assets the same as their own in bankruptcy. "The crypto that these companies have said they took as custody actually because part of the bankruptcy estate," Gensler said. "That's what we were addressing back in 2022," he added, saying it was "just" an accounting bulletin. https://www.coindesk.com/policy/2024/05/23/gensler-says-stay-tuned-on-us-secs-decision-on-eth-etf/

2024-05-23 12:24

Grayscale’s GBTC remains the biggest of the funds, with more than $20 billion of bitcoin at current prices, but BlackRock's IBIT is only a small bit behind. U.S.-listed spot bitcoin exchange-traded funds yesterday reached new record by holdings with more than 850,000 BTC in custody, surpassing the previous high above 845,000 BTC from early April. Among ETFs, Grayscale’s GBTC holds the largest amount of bitcoin with over $20 billion, followed by BlackRock’s IBIT at $19.6 billion, while Hashdex Bitcoin ETF is the smallest holder with $12 million. U.S.-listed spot bitcoin exchange-traded funds now hold a record 850,707 BTC in custody, beating a previous high above 845,000 from early April. Among those funds, Grayscale’s GBTC remains the biggest holder of bitcoin with 289,300 tokens worth more than $20 billion, followed closely by BlackRock’s IBIT at 283,200 and $19.6 billion, according to data tracked by @HODL15Capital. The spot ETFs ended Wednesday with their eighth straight day of net inflows, gobbling over 24,500 BTC over that period. This is a nearly 180-degree turn from the action of the past few weeks – with some of the biggest ETFs seeing zero inflows and even net outflows on some days. A shift in sentiment The crypto industry recorded its biggest-ever U.S. policy win on Wednesday when the House of Representatives approved a wide-reaching bill to establish regulations for digital assets markets, recording a 279-136 vote that saw Democrats crossing party lines to support it. The Financial Innovation and Technology for the 21st Century Act (FIT21) marks the first time a major crypto bill has cleared one of Congress's chambers. Elsewhere, bulls widely expect a spot ether ETF to be approved this week in the U.S. in a sudden policy shift that saw some analysts raise approval odds to over 75% from an earlier 25%. https://www.coindesk.com/markets/2024/05/23/us-bitcoin-etf-holdings-hit-new-high-of-more-than-850k-tokens/

2024-05-23 11:22

Ether spot ETF approval would set a precedent as the first non-bitcoin digital asset to be considered a commodity, raising expectations that solana could follow the same path, the report said. Approval of a spot ether ETF could bode well for rival tokens such as solana, the report said. Bernstein said a Trump election win could mean a more crypto-friendly administration. Galaxy Digital said the approval process could drag on for a few more months. Approval of a spot ether (ETH) exchange-traded fund (ETF) in the U.S. will be seen as significant regulatory relief for the crypto sector and raise expectations for ETH's rival SOL to be categorized as a commodity, broker Bernstein said in a research report on Tuesday. The report sent to clients days before the SEC's final deadlines on whether to approve some of the ETH ETF applications said the Biden administration might soften its stance on crypto ahead of the November Presidential Elections and a potential Trump victory would be broadly positive. "Long term, we do believe, should Trump get elected, crypto could see significant legislative and agency support (with a new SEC chair), to usher in long-lasting structural changes in crypto financial integration," analysts Gautam Chhugani and Mahika Sapra wrote. "More tactically, the Ethereum ETF approval would set the precedent for a first non-Bitcoin blockchain asset to be considered a commodity, raising hopes for Ethereum’s peers (Solana likely) to follow the same path," analysts added. The classification of cryptocurrencies as either securities or commodities has far-reaching implications. For instance, ETF applications and approval hinge on the classification of tokens as commodities. Meanwhile, categorization as a security means a more stringent regulatory oversight by the SEC. Ether surged higher earlier in the week after two well-followed Bloomberg ETF analysts upped the odds of the SEC approving spot ether ETFS to 75% from 25% and after reports that the regulator had abruptly asked applicants to update their filings, signaling that an approval was more likely. The SEC has several final deadlines on spot ether ETF applications this week after having delayed its decisions a number of times. Bernstein notes that bitcoin rallied 75% since the approval of spot ETFs, and it expects similar price action for ether. Ether's free float and supply looks more attractive than bitcoin, as 38% of the cryptocurrency is locked in staking, smart contacts and layer 2 chains, and 66% of ETH supply has not moved in the last twelve months, the report noted. While the ether spot ETF 19b-4 filings are likely to be approved this week, S-1 filings are not expected to go effective for weeks to months, "resulting in no exchange-tradeable ETH spot vehicles until this summer," wrote Alex Thorn, head of research at Galaxy Digital (GLXY) in a report on Tuesday. If the SEC approves the spot ETFs, Galaxy speculates that they could launch on exchanges in July or August. Galaxy also expects the regulator to approve all the applications simultaneously to avoid giving any individual issuer a head start. https://www.coindesk.com/markets/2024/05/23/ether-spot-etf-approval-would-raise-expectations-that-solana-could-also-be-classified-a-commodity-bernstein/

2024-05-23 11:18

The recent surge in PEPE's value is partly attributed to its use as a levered bet on the growth of the Ethereum ecosystem, with traders anticipating the approval of a spot ether exchange-traded fund (ETF) in the U.S. Pepe (PEPE) token reached a $6 billion market capitalization on Thursday, becoming the biggest meme coin launch of 2023. The recent surge in PEPE's value is partly attributed to its use as a levered bet on the growth of the Ethereum ecosystem, with traders anticipating the approval of a spot ether exchange-traded fund (ETF) in the U.S. Pepe (PEPE) zoomed into the twenty largest tokens by market capitalization earlier Thursday as a “beta bet” narrative added nearly 40% to the token in the past week, CoinMarketCap data shows. The frog-themed token was issued in April 2023, quickly surging to a $1 billion market capitalization weeks after going live. It has since become a meme coin mainstay, reaching a $6 billion market capitalization on Thursday. This has effectively made pepe the biggest meme coin launch of 2023 in a year that saw bonk (BONK), dogwifhat (WIF) and others issued. PEPE’s recent rise, alongside mog (MOG), has been buoyed by its use as a levered bet on the growth of the Ethereum ecosystem as traders anticipate the approval of a spot ether exchange-traded fund (ETF) in the U.S. At least one trader has made it big from a small initial buy. On-chain analysis by Lookonchain shows a crypto address that purchased about $460 worth of the tokens shortly after launch bagged over $3.4 million in profits this week. The buyer spent 0.22 ETH to buy 324.9B PEPE on April 15, 2023, and deposited the tokens to crypto exchange Binance on Wednesday, Lookonchain said, where the tokens were presumably sold. It is unknown if the address was connected to the developer team that issued PEPE. However, the usage of automated bots is common among meme coin traders – who typically purchase small amounts of every token that hits the market, based on certain criteria, hoping to eventually catch a big win. Some traders expect PEPE to eventually flip the dog-themed shiba inu (SHIB), which is valued at a $14 billion market capitalization as of Thursday. Pepe’s early buys have minted several millionaires in the past year. A few connected wallets turned about $1,200 of initial capital to over $9 million in the week after the token’s launch, as reported, while another $260 purchase netted over $3 million in profits for a different buyer. https://www.coindesk.com/markets/2024/05/23/pepes-surge-to-top-20-tokens-turns-early-460-purchase-to-34m/

2024-05-23 08:45

The forecast mirrors the market reaction after spot bitcoin ETFs were approved in January, QCP said. The approval of spot ether exchange-traded funds (ETF) in the U.S. could lead to a significant rise in the token's value, mirroring the market reaction seen with bitcoin ETFs. Bitcoin rose to over $73,000 from $42,000 in the two weeks after the ETF started trading on Jan. 11, CoinGecko data shows. The decision on the ether ETF is expected soon, with significant buying activity observed on both centralized and blockchain-based exchanges. Approval of spot ether (ETH) exchange-traded funds (ETF) in the U.S. could drive a rally of as much as 60% in the second-largest cryptocurrency in the coming months, QCP Capital said in a Thursday broadcast on Telegram The forecast echoes the market reaction after spot bitcoin ETFs were approved in January, the Singapore-based firm said. Bitcoin rose to over $73,000 from $42,000 in the two weeks after the ETFs started trading on Jan. 11, CoinGecko data shows. Latest News: SEC Approves Spot Ether ETF Listing, Still Needs to Approve Issuers' Filings "With Friday implied volatility above 100%, the market is expecting fireworks," QCP said. "VanEck’s ETF has been listed by the DTCC. We think approval is now highly likely with trading expected as early as next week.” Implied volatility measures the market's expectation of future price fluctuations for a financial instrument. Buying activity increased on both centralized and blockchain-based crypto exchanges, on-chain analytics firm CryptoQuant said in a Wednesday report. Holders bought over 100,000 ETH in spot markets on Tuesday, the highest daily level since September 2023, as reports of a favorable decision emerged and some analysts bumped odds to over 75% from the earlier 25%. Open interest on ether-tracked futures spiked in tandem to a record $14 billion. That's 67% of bitcoin open interest as of Wednesday, an unusually high level. Activity also increased at the Chicago Mercantile Exchange, an exchange favored by institutions, with ether futures hitting a record notional $2.85 billion of trading on Tuesday, according to a spokesperson. Ether options traded a record 1,135 contracts ($216 million). “Traders seem to be getting more exposure now to ETH relative to Bitcoin,” CryptoQuant said. "The largest daily spot buying from ETH permanent holders so far in 2024." Ether prices in the coming days could be volatile after investors sent 62,000 ETH to exchanges, the most since early March, it said. "High exchange flows are typically associated with price volatility.” On the flip side, the firm’s analysts warned of a “significant price correction” should the ETF application be dismissed. Six issuers, including BlackRock, filed updated copies of their ether ETF proposals this week ahead of a decision due today. All removed plans to stake the token, which suggests the activity may have been a regulatory roadblock. Staking is the process of locking a cryptocurrency for a set period of time to help support the operation of a blockchain, in turn for a reward. These rewards are largely considered passive income among crypto traders. As of Thursday, annualized yields on ether staking were nearly 3%, according to data from popular staking service Lido. Oliver Knight contributed reporting to this story. Update (May 23, 09:53 UTC): Adds CME futures, options trading in seventh paragraph. https://www.coindesk.com/markets/2024/05/23/ethereum-etf-approval-could-spur-60-rally-as-eth-buying-increases/

2024-05-23 07:44

There is a 90% probability the SEC will approve a spot ether ETF, one observer said, drawing attention to the narrowed discount in the Grayscale Ethereum Trust. BTC, ETH keep recent gains ahead of the SEC's decision on VanEck's ether ETF application. The sharp narrowing in the Grayscale Ethereum Trust's discount suggests a 90% probability of an ETF approval, one analyst said. Bitcoin (BTC) and ether (ETH) consolidated recent gains early Thursday, lacking a clear directional bias before the U.S. Securities and Exchange Commission's (SEC) decision on VanEck's spot ether ETF application, due later in the day. BTC, the leading cryptocurrency by market value, traded little changed around $69,500, and ether, the No. 2, held steady near $3,700, according to CoinDesk data. Still, technical analysis and market positioning indicate a bullish undertone. Both cryptocurrencies maintained a strong position above their respective Ichimoku cloud lines, suggesting a bullish outlook, an interpretation echoed by analyst Josh Olszewicz on X. Further evidence came from derivatives exchange Deribit, where options on bitcoin and ether continued to reveal a bias for calls, or derivatives that allow traders to profit from price rises, according to data tracked by Amberdata. The bullish positioning is likely to have stemmed from increased expectations the SEC will approve spot ether ETFs, broadening the demand for cryptocurrencies. "The SEC should approve U.S.-listed ETH ETFs today. Hours before the Bitcoin ETF approval, SEC Gensler tweeted that crypto investors should consider all potential risks before making any investment. Today, a tweet could come around 9 a.m. ET. and would provide more clarity on whether approval would be imminent," Markus Thielen, founder of 10x Research, said in a note to clients. Thielen added that the Grayscale Ethereum Trust's discount to net asset value has narrowed to just 8% from 30% a week ago, implying at least "a 90% probability that an ETF would be approved." The change follows reports early this week that the SEC had asked for updates and amendments from spot ether ETF applicants, signaling potential approval. "If spot ether ETFs are approved, that signals a sharp change in the official attitude toward the crypto industry – it also looks like hostility toward FIT21 is not as strong as we had feared," Noelle Acheson, author of the popular Crypto Is Macro Now newsletter, told CoinDesk, referring to the Financial Innovation and Technology for the 21st Century Act. On Wednesday, the U.S. House of Representatives passed the act, which will clearly define whether cryptocurrencies are commodities or securities. Categorization as securities would mean a stringent SEC oversight. The legislation is also expected to establish the Commodity Futures Trading Commission (CFTC) as a leading regulator of digital assets alongside the SEC. The bill now moves to the Senate, where its future is uncertain. Even if passed, President Joe Biden could still veto it. NVDA hits record high Shares in the Nasdaq-listed chipmaker Nvidia (NVDA) reached a record high during Wednesday's post-market hours after the company beat analyst estimates to report record revenue of $26.04 billion for the first quarter. The rally might be a positive signal for cryptocurrencies, including tokens supposedly associated with artificial intelligence (AI) technology. That's because, historically, the inflow of money into the crypto market and the so-called AI coins has been partly contingent on outsized gains in NVDA and the tech-heavy Nasdaq index. According to Coingecko, top AI coins, such as FET, ICP, RNDR and GRT, traded mixed at the time of writing, having rallied in the lead-up to the NVDA announcement. https://www.coindesk.com/markets/2024/05/23/bitcoin-ether-in-stasis-as-sec-etf-decision-looms-nvidia-hits-record-high/