Kategorie: Ethereum News

• SEC Chair Gary Gensler told lawmakers on Thursday that he sees spot Ethereum ETFs’ S-1 filings approval in the summer.
• The SEC Chair’s comments however did not offer much information, an ETF analyst noted.

Gary Gensler, the Chair of the US Securities and Exchange Commission (SEC), sees the recently approved spot Ethereum exchange-traded funds (ETFs) getting the final nod for trading in the summer.

The SEC chair shared the outlook during a hearing with US lawmakers on Thursday, June 13.

Gensler’s remarks came during the Senate Banking Committee hearing that’s considering the US government’s 2025 budget for the Commission. 

Asked about the spot Ethereum ETFs, Gensler noted that he expects the SEC will have a final approval via the S-1s “sometime over the course of this summer.”

Summer it is, but

While the crypto community has known of the upcoming listing and trading since the regulator approved 19b-4 filings in May this year, Gensler’s comments now have a timeline in place. In this case, the industry is looking at the next three months, with the latest it could happen going by the SEC chair’s remarks being in September.

Bloomberg ETF analyst James Seyffart says the SEC chair has not really offered much information when commenting that the ETH spot ETFs will launch “by the end of summer.”

Highlighting his earlier prediction that the SEC would probably finalize the approvals in early July, the analyst said:

“July was and is a complete guess. But I was more confident in saying that ETH ETFs will launch at some point this summer. That was sort of a given. Gensler not really giving us much of any info in his comments that Ethereum ETFs will launch “by the end of summer””

Ethereum surged in May after the initial SEC nod to 19b-4s, but with the broader crypto market struggling and the approvals likely already priced in, the latest comments had little upside impact on Ether.

The cryptocurrency trades around $3,470, nearly 10% down this past week.

The post SEC chair says S-1 approvals for spot Ether ETFs in the summer appeared first on CoinJournal.

• Franklin Templeton files amended S-1 for spot Ethereum ETF with 0.19% fee.
• SEC requires all spot Ethereum ETF issuers to file amended S-1 forms by Friday.
• Franklin Templeton’s spot Bitcoin ETF also charges a 0.19% fee and currently manages $350M in assets.

Franklin Templeton has filed its amended S-1 form for spot Ethereum ETF following SEC’s directive that all spot Ethereum ETF issuers should send in their amended S-1 forms by Friday.

In the amended S-1, Franklin Templeton plans to charge a competitive 0.19% sponsor fee for the ETF, which is could be the lowest among its peers.

Franklin Templeton success with crypto ETFs

Franklin Templeton was among the eleven firms whose spot Bitcoin ETFs were approved by the SEC at the start of the year.

The firm’s foray into the Ethereum ETF space is buoyed by the success of its spot Bitcoin ETF, which currently manages approximately $350 million in assets. This strong performance of the Bitcoin ETF underscores the firm’s capability in managing cryptocurrency investment products and sets a promising precedent for its upcoming Ethereum ETF.

Its spot ether ETF application positions it among a growing number of financial institutions seeking to offer investors exposure to Ethereum, the second-largest cryptocurrency by market capitalization, without the need to directly purchase the digital asset.

Franklin Templeton’s aggressive crypto ETFs fee structure

Franklin Templeton’s proposed 0.19% fee mirrors the fee structure of its spot Bitcoin ETF (EZBC), which is also set at 0.19%, making it the lowest among similar financial products currently available.

Initially, Franklin Templeton did not charge any fee for investing in its spot Bitcoin ETF, a strategy likely designed to attract initial investors and build momentum.

Eric Balchunas, Bloomberg’s Senior ETF Analyst, commented on Franklin Templeton’s aggressive fee structure in a post on X saying, “The opening shot in the Eth ETF fee war has been fired from Franklin, 19bps.”

Balchunas’ comment highlights the competitive nature of the burgeoning Ethereum ETF market, where cost efficiency is a critical factor for attracting investors.

As firms rush against time to beat the Friday deadline, the stage is set for a new wave of Ethereum-based financial products to enter the market.

Although it may take a few weeks for these filings to become effective, the expectations that the ETFs could begin trading in a month’s time if not in a few weeks’ time.

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• Hashdex withdraws ether ETF application after SEC approval of similar products.
• Hashdex’s Ethereum ETF application combined spot Ether with futures contracts.
• The withdrawal decision raises questions amid evolving regulatory landscape and market dynamics.

According to documents filed with the U.S. SEC, Hashdex officially pulled its application for the Hashdex Nasdaq Ethereum ETF on May 24.

The withdrawal of the proposal was reveled in a filing submitted to the SEC on May 28, leaving investors and industry observers curious about the motives behind this abrupt move. Notably, the withdrawal came swiftly on the heels of the SEC’s green light for eight similar financial products.

Hashdex’s proposed ether ETF

Hashdex’s proposed ETF, known as the Hashdex Nasdaq Ethereum ETF, was poised to blend spot Ether holdings with Ether futures contracts, aiming to institute safeguards against potential market manipulation.

Unlike its counterparts, Hashdex’s innovative approach sought to mirror daily fluctuations in the Nasdaq Ether Reference Price, addressing regulatory concerns about price manipulation in the spot market.

However, following the withdrawal of the application, Hashdex’s intentions to forge ahead with a single-asset Ether ETF have been abruptly halted.

While the precise reasons behind this strategic withdrawal remain undisclosed, speculation abounds regarding the evolving regulatory landscape and internal strategic considerations within Hashdex.

Intense competition for ether ETFs among investment firms

The timing of Hashdex’s withdrawal, occurring just a day after the SEC’s landmark approval of ether ETFs from prominent players like VanEck, BlackRock, Fidelity, and others, underscores the intense competition and regulatory scrutiny surrounding crypto investment vehicles.

These approved ETFs, exclusively spot-based Ether ETFs, are poised to debut on various exchanges in June, opening new avenues for institutional and retail investors to gain exposure to the burgeoning Ethereum ecosystem.

Botably, Hashdex’s decision not to proceed with its Ether ETF marks a significant deviation from its previous success with spot Bitcoin ETFs, which were greenlit by the SEC in January.

The company’s Bitcoin ETF utilizes a distinct strategy, eschewing reliance on the Coinbase surveillance sharing agreement in favor of sourcing spot BTC from physical exchanges within the CME market.

While Hashdex’s withdrawal introduces a new twist to the unfolding narrative of crypto ETFs, the broader implications for the industry remain uncertain.

With regulatory scrutiny intensifying and market dynamics evolving rapidly, the path forward for crypto investment vehicles, particularly ETFs, is fraught with complexities and challenges.

As the crypto investment landscape continues to evolve, market participants eagerly await further developments from Hashdex and other industry players, as they navigate the intricate intersection of regulation, innovation, and market demand in the quest to unlock the full potential of digital assets.

The post Hashdex has withdrawn its Ethereum ETF application appeared first on CoinJournal.

• Ondo Finance (ONDO) price surges to a new all-time high above $1.15.
• The Ondo price surge is driven by SEC approval of Ethereum ETFs and strong institutional backing.
• Ondo Finance (ONDO) lists on Coinbase boosting its visibility an trading volume.

Ondo Finance (ONDO), the native token of the tokenized real-world asset (RWA) platform Ondo Finance, has been experiencing a remarkable price surge recently.

ONDO token recently hit an all-time high of $1.16 and despite experiencing a slight decline, it seems to have regained its footing.

At press time, ONDO was priced at $1.10, reflecting a 10.45% increase over the past 24 hours, a 16.66% increase over the past week, and a 24.00% rise over the past month.

Since its launch, ONDO price has skyrocketed by an impressive 577.86% from its IEO price of $0.055 in January 2024.

These figures highlight ONDO’s strong upward momentum and growing investor interest.

Key catalysts for Ondo price surge

1. SEC Approval of Spot Ethereum ETFs

One of the most significant factors contributing to ONDO’s recent price surge is the U.S. Securities and Exchange Commission (SEC)’s approval of spot Ethereum exchange-traded funds (ETFs).

This landmark decision has fueled market optimism, suggesting a more favorable regulatory environment for cryptocurrencies.

The approval has not only boosted Ethereum (ETH) but also positively impacted Ethereum-related tokens like ONDO, which is considered a strong Ethereum-beta asset and a key player in the “real-world asset” narrative.

2. Coinbase Listing

Another major catalyst for ONDO’s rally is its recent listing on Coinbase’s perpetual market.

The inclusion of ONDO-PERP, along with PYTH-PERP and ZETA-PERP, on Coinbase has provided greater accessibility and trading flexibility for investors.

This move has significantly increased ONDO’s visibility and trading volume, which surged by 130% to reach $455,519,046.

3. Strong institutional backing

Lat but not least is Ondo Finance’s strategic partnerships and investments by major venture capitals that have played a crucial role in boosting investor confidence.

In Aprill 2022, Ondo Finance received $20 million in a Series A investment from several leading venture capitals including Pantera Capital, Coinbase Ventures, Tiger Global Management, Wintermute, and GoldenTree Asset Management among others. These institutional supports are a positive indicator for long-term growth prospects.

In late March 2024, Ondo Finance transferred $95 million of its assets to BlackRock’s tokenized fund, BUIDL, to facilitate instant settlements for its U.S. Treasury-backed token, OUSG.

While this specific transaction might not have directly triggered the recent price movement, the association with BlackRock, a dominant force in the ETF market, has certainly bolstered ONDO’s market perception.

Pantera Capital’s backing further adds to ONDO’s credibility, providing the financial muscle and strategic support needed to navigate the volatile crypto landscape.

On-chain Ondo Finance (ONDO) data insights

According to DeFiLlama, Ondo Finance achieved a peak total value locked (TVL) of $444 million on May 24.

In addition, data from IntoTheBlock also indicates a significant surge of 52.3% in large transaction volume, with 84% of ONDO holders currently in a profitable position and 15% at breakeven.

Furthermore, the concentration by large holders remains notably high at 92%, with approximately 63% of holders retaining their tokens for durations between one to twelve months.

Going by the above on-chain data Market sentiment around ONDO remains bullish, with several analysts and traders predicting further gains.

The post Here’s why Ondo Finance (ONDO) price is soaring appeared first on CoinJournal.

• Standard Chartered expects SEC approval of Ethereum ETFs this week.
• The bank predicted inflows of $15-45 billion that could drive ETH price to $8,000 by the end of 2024.
• Ether’s price has surged 19% in the past 24 hours, reflecting the optimism in the market.

Standard Chartered expects the U.S. Securities and Exchange Commission (SEC) to approve Ethereum (ETH) ETFs this week.

If it happens, it could herald a substantial influx of capital into the ether market, with projections estimating inflows between $15 billion and $45 billion in the first 12 months post-approval.

The critical ether ETFs proposal deadlines

The SEC is approaching critical deadlines for several ether ETF proposals, with VanEck’s submission due on May 23 and Ark Invest/21Shares’ on May 24.

Geoff Kendrick, Head of FX Research and Digital Assets Research at Standard Chartered, stated that the approval of spot ether ETFs could drive significant market activity, with anticipated inflows ranging from 2.39 million to 9.15 million ether.

Kendrick emphasized that these inflows, as a percentage of market capitalization, are comparable to those seen with bitcoin ETFs, which have proven to be accurate predictors of market behaviour.

Ethereum (ETH) price forecasts

In light of this, Standard Chartered has reiterated its ambitious price target for Ethereum (ETH), forecasting it to reach $8,000 by the end of 2024. This projection is based on maintaining the current 5.4% price ratio between ether and bitcoin, with bitcoin itself expected to hit $150,000 by year-end.

The bank’s outlook extends even further, predicting that by the end of 2025, Ethereum (ETH) price could soar to $14,000, assuming Bitcoin reaches a staggering $200,000.

These optimistic targets underscore the potential impact that ETF approvals could have on the broader cryptocurrency market.

SEC requested updates to the 19b-4 spot Ethereum ETFs filings

The momentum towards approval gained additional support on Monday when the SEC requested updates to the 19b-4 filings for spot ether ETFs.

This move suggests progress, albeit without guaranteeing approval. However, the likelihood of approval has been bolstered significantly.

As a result of the SEC’s move, Bloomberg ETF analysts James Seyffart and Eric Balchunas increased their approval probability estimates from 25% to 75%.

Update: @JSeyff and I are increasing our odds of spot Ether ETF approval to 75% (up from 25%), hearing chatter this afternoon that SEC could be doing a 180 on this (increasingly political issue), so now everyone scrambling (like us everyone else assumed they’d be denied). See… https://t.co/gcxgYHz3om

— Eric Balchunas (@EricBalchunas) May 20, 2024

Reflecting the growing optimism, Ethereum’s price surged over 19% in the past 24 hours, reaching $3,782.68 as of 12:28 P.m. ET on May 21.

The broader cryptocurrency market also reacted positively, with the GM 30 Index, which tracks the top 30 cryptocurrencies, rising by 9.25% to 148.75.

The post Standard Chartered anticipates spot Ethereum ETFs approval this week appeared first on CoinJournal.