Ether (ETH) saw a mid-morning bounce after U.S. Securities and Exchange Commission Chairman Gary Gensler stated he anticipated that spot ether exchange-traded funds (ETFs) would receive full approval from his agency by the end of the summer [c4da1600]. However, the price quickly reversed more than 3% within an hour and was trading at $3,440 at press time, down 5% over the past 24 hours. Bitcoin (BTC) also dropped nearly 5%, trading near a one-week low of $66,300. The decline in the crypto market was attributed to the Federal Reserve's hawkish policy meeting, where it projected only one rate cut in 2024. Additionally, Thursday morning's U.S. economic data, indicating continued softening in both inflation and the economy, failed to improve the macro mood in crypto. The May Producer Price Index (PPI) fell 0.2% against expectations for a 0.1% rise. On a year-over-year basis, PPI was up 2.2% compared to forecasts of 2.5%. Furthermore, initial jobless claims rose to nearly a one-year high of 242,000, versus expectations of 225,000 [c4da1600].
The approval of spot Ether ETFs is still expected to happen by the end of the summer, according to SEC Chair Gary Gensler. The ETFs received initial approval to be listed on May 23, and prospective issuers were instructed to submit draft S-1 registration forms by May 31. Individual issuers are currently working through the registration process [1fe74ac4].
Seven financial firms, including BlackRock, Templeton, and VanEck, have amended their S-1 filings for exchange-traded funds (ETFs) linked to Ethereum. The amended filings mark a key step towards launching the first set of ETFs tied to the second-largest cryptocurrency. Franklin Templeton and VanEck have announced their ETF fees at 0.19% and 0.20%, respectively. The SEC cleared Ethereum ETFs in May in response to applications from firms including Nasdaq, NYSE, and Cboe Global Markets. Bloomberg ETF analyst Eric Balchunas suggests that the SEC could potentially approve the launch as early as July 2 [750e4be8].
US regulators are considering approving spot Ether ETFs for launch by July 4, according to Reuters. The approval would allow investors to gain exposure to Ethereum's native cryptocurrency through exchange-traded funds. The Securities and Exchange Commission (SEC) has previously rejected multiple applications for Bitcoin ETFs, but the approval of a spot Ether ETF would mark a significant milestone for the cryptocurrency industry. The decision is expected to be made by the SEC in the coming weeks [6e08454c].
The US Securities and Exchange Commission (SEC) has closed its investigation into the Ethereum network, according to a report by Consensys. The SEC has classified Ethereum as a commodity rather than a security. The decision to drop the case was made after the agency approved multiple Ethereum spot ETFs. Some market participants disagree with this classification. The investigation was a reaction to subpoenas on Consensys. Asian financial regulators are expected to approve and list Bitcoin and Ethereum ETFs. South Korea has strict capital laws that may limit institutional investors from expanding into new territories. The total assets under management (AUM) of all ETF products listed in seven Asia Pacific nations account for 4% of their aggregate market cap, compared to 16% in the United States. The Hong Kong ETF market is projected to reach $1 billion by 2024 [09d0a2de].
Ripple CEO Brad Garlinghouse expects the U.S. Securities and Exchange Commission (SEC) to approve a spot XRP exchange-traded fund (ETF) next year. Garlinghouse believes that the SEC will be more open to approving a spot XRP ETF once the regulatory clarity around cryptocurrencies improves [03301bc3].
The approval of Ether ETFs is expected to attract more institutional and retail investors to participate in the crypto market, further driving the growth of the digital asset ecosystem [e75039d6], [92cc12f1].
Cryptocurrency markets remain under pressure as the Fed signals only one rate cut this year. Analysts are puzzled by the market's lack of sustained upward movement despite positive news and bullish factors [b4663017].