Tag: spot ETF

Forbes reporter Eleanor Terrett sheds light on the waning optimism surrounding the Securities and Exchange Commission’s (SEC) approval of the Ethereum (ETH) spot exchange-traded fund (ETF) before May 23. Anti-cryptocurrency sentiments from figures like Senator Elizabeth Warren and limited engagement from SEC staff have contributed to the uncertainty.

BlackRock’s proposal for a spot Ethereum exchange-traded fund (ETF), as disclosed in a filing on Monday. This delay also applies to Fidelity’s spot Ethereum ETF, with the SEC extending the timeline for both proposals. The regulatory body is soliciting public feedback on whether these ETFs should be approved, particularly focusing on concerns regarding Ethereum’s proof of stake mechanism and its susceptibility to fraud and manipulation. Comments from the public on both proposals are due within the next 21 days, with rebuttals accepted within 35 days thereafter. BlackRock and Fidelity initially filed for their spot Ethereum ETFs back in November, following the launch of spot bitcoin ETFs, which received SEC approval earlier this year. While some crypto experts anticipate a potential approval for spot Ethereum ETFs as early as May, citing the recent approvals for bitcoin ETFs as a positive precedent, others remain cautious. Variant Fund Chief Legal Officer Jake Chervinsky highlighted legal issues and the policy environment in Washington, suggesting that denial or an SEC request to withdraw is more likely than commonly perceived. SEC Chair Gary Gensler has previously emphasized that the agency’s approval of spot bitcoin ETFs should not be extrapolated to other cryptocurrencies, implying that each proposal will be evaluated on its own merits.

Crypto enthusiasts hoping for a game-changing Ethereum spot ETF debut may be disappointed, according to Bloomberg ETF expert Eric Balchunas. While the recent debut of various Bitcoin spot ETFs in the United States has been spectacularly successful, Balchunas believes a follow-up launch for Ethereum would be “small potatoes” in comparison to the original.

Four Bitcoin spot ETFs – iShares Bitcoin Trust (IBIT), Fidelity Wise Origin Bitcoin Fund (FBTC), ARK 21Shares Bitcoin ETF (ARKB), and Bitwise Bitcoin ETF (BITB) – have recorded remarkable consistency, attracting inflows for all of their first 14 trading days. This stands in stark contrast to the Grayscale Bitcoin Trust (GBTC), which has experienced daily outflows since its conversion into an ETF.

According to a news article, Grayscale’s Bitcoin spot ETF GTC had a net outflow of $394 million on January 25, with a single-day trading volume of $502 million . Net outflows slowed slightly over 3 trading days ($429 million on January 24, $515 million on January 23, and $640 million on January 22) . Grayscale ETF’s cumulative net outflows have reached US$4.079 billion, and it still holds US$20.028 billion in net assets .

Grayscale, the world’s largest digital asset manager, has witnessed a significant outflow of Bitcoin (BTC) since the debut of its spot Bitcoin ETF, GBTC, on January 11, 2024. According to blockchain analytics firm Arkham Intelligence, nearly 113,000 BTC have been shifted from Grayscale wallets, primarily to Coinbase Prime, suggesting potential preparation for large-scale selling. This comes amidst declining GBTC trading volume, raising questions about a potential exhaustion of the recent sell-off.

The SEC will have to investigate itself for possible market manipulation after its X account was hacked and posted a false announcement that it had approved spot bitcoin ETFs. The crypto market reacted with volatility to the fake news and the subsequent denial by the SEC chair. The regulator is expected to make a decision on the first batch of spot bitcoin ETF applications by Wednesday.

The SEC is expected to rule on the first batch of applications for spot bitcoin ETFs this week, amid growing anticipation from the crypto industry and investors. Former SEC chair Jay Clayton said on CNBC that there is nothing left to decide and that approval is a big step for finance.

The U.S. Securities and Exchange Commission is expected to rule on eight applications for Bitcoin spot exchange-traded funds by January 11, 2024. The applicants include some of the biggest names in the ETF industry, such as BlackRock, Fidelity, and Invesco.

Gary Gensler, the head of the U.S. Securities and Exchange Commission, tweeted a cautionary message to crypto investors, reminding them of the legal uncertainties and potential scams in the crypto market. His tweet came as the crypto community is eagerly anticipating the approval of a spot bitcoin ETF by the SEC.