SEC Approves Spot Ether ETFs, Marking Another Milestone for Crypto

In a significant move, the U.S. Securities and Exchange Commission (SEC) has approved several spot Ether exchange-traded funds (ETFs), signaling further integration of cryptocurrencies into traditional finance. The approved ETFs come from major players like VanEck, BlackRock, Fidelity, and Grayscale. This decision follows speculation about the SEC potentially labeling Ether as a security.

The SEC’s approval on May 23 allows these ETFs to be listed and traded, though issuers still await final approval of their S-1 registration statements. Notably, the SEC instructed applicants to accelerate their filings, removing staking services from their proposals.

he approval, however, did not extend to Hashdex’s application, which faces a final deadline on May 30. This decision follows the SEC’s earlier approval of spot Bitcoin ETFs in January and coincides with legislative moves in the U.S. House aimed at providing more regulatory clarity for the cryptocurrency industry. Following the announcement, Ether’s price saw an initial rise but later stabilized around $3,759.

Ethereum ETF Decision Looms as Bitcoin Targets $80K

Bitcoin and Ethereum markets brace for volatility as the Ethereum ETF decision approaches. On May 23, Bitcoin hovered near all-time highs at $69,000, with market anticipation high for the potential approval of Ethereum ETFs by U.S. regulators. Analysts see this as a boost for BTC, with targets set at $80,000 in May and up to $95,000 by June.

Crypto traders are optimistic about Ethereum’s prospects, predicting a 60% price jump to around $6,000 if the ETF is approved. Popular analysts like Michaël van de Poppe and BitQuant emphasize the bullish sentiment, with expectations of significant upward movement in the crypto markets.

SEC’s Ether ETF Approval Suggests ETH and More Tokens Aren’t Securities

The U.S. SEC’s approval of spot Ether ETFs indicates that Ether is not a security, according to industry experts. This decision implies that other tokens might also be considered commodities. Bloomberg ETF analyst James Seyffart and digital asset lawyer Justin Browder highlight that the SEC’s move signals a shift in regulatory stance.

However, the SEC may still target staking services. While the approval marks a significant development, the SEC could continue to scrutinize staking activities and related services. The approval of Ether ETFs from major firms like VanEck and BlackRock suggests a more favorable regulatory environment for cryptocurrencies, despite ongoing concerns about staking.

U.S. House Passes Historic Crypto Bill with Strong Democratic Support

The U.S. House of Representatives has approved the Financial Innovation and Technology for the 21st Century Act (FIT21), marking the most significant legislative win for the crypto industry in the U.S. to date. The bill, which aims to establish regulations for digital asset markets, passed with a 279-136 vote, showcasing substantial Democratic support alongside Republicans. This legislation now moves to the Senate, where its future remains uncertain due to the lack of a counterpart bill and unclear support.

The FIT21 Act seeks to provide clear guidelines for crypto market operations, designating the Commodity Futures Trading Commission (CFTC) as the primary regulator for non-securities digital assets and defining the boundaries between securities and commodities in the crypto space. Despite opposition from President Joe Biden and SEC Chair Gary Gensler, who argue that existing regulations are sufficient, the bill’s supporters, like Rep. Josh Gottheimer (D-N.J.), emphasize the need for updated, bipartisan regulations to keep pace with global standards.

Crypto Rally: Bitcoin Soars, Ethereum Struggles

Metaplanet, dubbed “Asia’s MicroStrategy,” has seen its stock soar by 158% over the past week, making it the top gainer among Japanese stocks. The Tokyo Stock Exchange halted trading twice due to the surge, which has pushed Metaplanet’s market cap close to $1 billion. Since announcing its Bitcoin investment strategy in April, the firm has accumulated 117.7 BTC and its stock has risen 389%. The move aims to hedge against Japan’s high debt levels and weakening yen. While currently only listed on the Tokyo Stock Exchange, there are plans to tokenize Metaplanet shares on Bitcoin’s layer-2 network, Liquid.

Sources:

https://cointelegraph.com/news/sec-spot-ether-etf-approved

https://cointelegraph.com/news/ethereum-etf-decision-btc-price-80k-may-target

https://cointelegraph.com/news/sec-etf-decision-means-ether-other-tokens-not-securities

https://www.coindesk.com/policy/2024/05/22/us-house-approves-crypto-fit21-bill-with-wave-of-%20democratic-support/

https://cointelegraph.com/news/asia-micro-strategy-metaplanet-smashes-all-other-japanese-%20stocks