AI Crypto News : Spot Ether ETFs Receive Official SEC Approval

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.