AI Crypto News : Spot Ether ETFs Receive Official SEC Approval
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AI Crypto News : Spot Ether ETFs Receive Official SEC Approval |
Key Takeaways:
- Crypto Highlights: The U.S. Securities and Exchange
Commission (SEC) has officially approved several spot Ether ETFs, marking the
second significant crypto market decision this year.
- Altcoin News: Zeta Markets introduces ZX to enhance
derivative trading on Solana. Coinbase resumes XRP trading in New York, while
Bloomberg's James Seyffart predicts high interest in a Solana ETF despite
regulatory challenges.
- Weekly Recap: BlackRock's Ethereum ETF ($ETHA) is listed
on DTCC following SEC approval of eight other ETFs. The Hong Kong Securities
and Futures Commission (SFC) considers an innovative approach with an Ethereum
ETF. Grayscale launches investment trusts for Stacks and Near Protocol as a
preliminary step towards ETF status, awaiting SEC's decision on spot Ethereum
ETF approval.
Crypto Highlights
The U.S. Securities and Exchange Commission (SEC) recently
granted official approval to several spot Ether ETFs, representing the second
major regulatory decision for the crypto market this year. On May 23, the SEC
approved form 19b-4 filings from leading financial institutions such as VanEck,
BlackRock, and Fidelity, allowing these spot Ether ETFs to trade on U.S.
exchanges.
The approval process requires the SEC to sign off on the S-1
registration statements from the ETF issuers, which could take days to months.
The SEC responded quickly to the filings, requesting accelerated form 19b-4
submissions on May 20. Notably, some filings were amended to remove staking
components.
This approval came a day after the U.S. House of
Representatives backed legislation aimed at providing clearer regulatory
guidance for the crypto industry. The Ether ETF approval follows the SEC's
approval of a spot Bitcoin ETF four and a half months earlier, a significant
milestone for the industry. Following the announcement, ETH briefly surged to
over $3,900 before settling at $3,759.
AI Crypto Tokens Decline Despite Positive Nvidia Earnings Report
Despite Nvidia's impressive financial report, with revenues
of $26 billion and adjusted earnings of $6.12 per share surpassing analysts'
expectations of $5.65 per share, AI crypto tokens did not experience the
anticipated price surge and instead saw a decline.
The drop was primarily driven by the release of the Federal
Open Market Committee (FOMC) meeting minutes, which highlighted concerns about
inflation and potential interest rate hikes, impacting the market more than
Nvidia's positive news. This led to a decline in the U.S. stock market,
affecting the entire market, including crypto.
However, there is hope for recovery next week, particularly
if Nvidia's pre-market price of $1,047 maintains its momentum, potentially
restoring market confidence. This rally could also support a rebound in AI
crypto token prices.
Altcoin Update
Bullish - Zeta Markets Introduces ZX on Solana
Zeta Markets has launched ZX, an appchain built on Solana's
infrastructure, aiming to enhance decentralized derivative trading. ZX will
offer up to 50x leverage and sub-10ms confirmation times on Solana. Utilizing
an optimistic rollup strategy, ZX is expected to deliver decentralized trading
performance akin to centralized exchanges, with the benefits of on-chain
trading like self-custody and transparency. The Z governance token will serve
as the native gas token for ZX transactions, incentivizing stakeholders.
Development plans include a testnet launch in Q3 2024 and a mainnet launch in
Q1 2025.
Bullish - Coinbase Resumes XRP Trading in New York
U.S. crypto exchange Coinbase has resumed XRP trading in New
York despite the ongoing legal battle between Ripple and the SEC. This bold
move follows the previous suspension of XRP trading. The Ripple-SEC trial is
nearing a final verdict, which will also determine whether Ripple's financial
information will be made public. The SEC seeks up to $2 billion in fines, while
Ripple has offered $10 million.
Bullish - High Interest in Solana ETF Predicted
Bloomberg analyst James Seyffart forecasts that a Solana ETF
will attract more interest than other altcoin ETFs, except for Ethereum.
However, the launch of a Solana ETF might be delayed because SOL, Solana's
native token, has been classified as a security in several lawsuits against
major crypto exchanges. Nevertheless, Seyffart believes a SOL ETF could be
launched within a few years if the futures market is regulated and crypto
regulations are updated. Some community members agree with his view, while others
argue that Litecoin and Dogecoin have clearer paths and fewer regulatory
issues, potentially giving them better chances for ETF approval.
Weekly Recap
Bullish - BlackRock's Ethereum ETF Listed on DTCC
BlackRock's spot Ethereum ETF ($ETHA) has been listed on the
Depository Trust & Clearing Corporation (DTCC) following the SEC's approval
of eight other spot Ethereum ETFs. Although initial approval has been granted,
trading is suspended until the SEC approves each ETF's S-1 filing, a process
expected to take several weeks to months.
Bullish - Hong Kong's Innovative Ethereum ETF Approach
The Hong Kong Securities and Futures Commission (SFC) is
considering an innovative move to allow Ethereum ETF issuers to offer Ether
staking. This potential development, reported on Thursday, could significantly
impact the future of Ethereum ETFs in the region. The SFC's progressive
approach contrasts sharply with the U.S. SEC's stance, which has classified
staking services as investment contracts potentially violating securities laws.
This move has elicited mixed responses from industry players and regulators in
both the U.S. and Hong Kong, highlighting the regulatory complexities and
dynamics in the global crypto sector.
Bullish - Grayscale Launches Trusts for Stacks and Near
Protocol
Grayscale has launched investment trusts for Stacks and Near
Protocol as part of its strategy to expand its crypto offerings and eventually
convert them into ETFs. These trusts are targeted at accredited investors and
serve as a preliminary step before being uplisted as ETFs. Grayscale chose
Stacks for its layer-2 Bitcoin platform that adds smart contract functionality
to Bitcoin, while Near Protocol aims to provide scalable and user-friendly
applications. Meanwhile, Grayscale awaits the SEC's decision on its spot
Ethereum ETF application. Despite the wait, there is significant optimism for
SEC approval, given that its Bitcoin Trust has previously been approved as an
ETF.
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