Recent Bitcoin ETF outflows are injecting a dose of uncertainty into the cryptocurrency market, signaling a pause in the previously strong bullish momentum as investors grapple with broader economic anxieties.

Bitcoin (BTC) closed last week at approximately $96,120, a slight 0.4% decrease from the previous week. While the price remained relatively stable, underlying market sentiment has shifted. 

BTC has traded within a narrow range of $94,000 to $100,000 for the past 13 trading days, exhibiting reduced volatility. This consolidation phase reflects overall market uncertainty, largely due to macroeconomic concerns and anticipation surrounding the Federal Reserve’s (FED) and other major central banks’ future interest rate decisions.

Bitcoin ETF Outflows Break Six-Week Streak

The most notable development has been the outflow of nearly $600 million from Bitcoin spot ETFs in the past week. This ended a six-week streak of positive inflows, a shift that, while not unexpected, underscores the market’s sensitivity to external pressures. Historically, sustained periods of positive flows are often followed by a temporary downturn.

Matteo Greco, Research Analyst at the publicly listed digital asset and fintech investment business Fineqia International (CSE:FNQ), provided context for the recent Bitcoin ETF outflows. “Since mid-September, this marks only the fourth week of negative flow, underscoring the strong demand and overall bullish sentiment for BTC-backed ETPs,” Greco shared in a note seen by The Shib Daily. 

This indicates that despite the recent pullback, long-term interest in Bitcoin-backed investment products remains robust. Total net inflows since the inception of these ETFs total $40.1 billion, averaging over $3 billion per month.

Ethereum ETFs Show Resilience

While Bitcoin ETFs experienced a downturn, Ethereum (ETH) spot ETFs displayed greater stability. They recorded a net inflow of approximately $12 million over the same period. 

This brings the total inflows for Ethereum ETFs since their launch to $3.2 billion, building upon the positive sentiment observed in Q4 2024. This divergence suggests potential investor diversification within digital asset portfolios or a bet on the long-term prospects of the Ethereum ecosystem.

Bitcoin ETF: Macroeconomic Indicators Hold the Key

The future direction of Bitcoin, Ethereum, and the broader cryptocurrency market is closely tied to macroeconomic developments. Shifting expectations regarding the Federal Reserve’s monetary policy are crucial.

“This reflects a phase of market consolidation and uncertainty, influenced by macroeconomic concerns and speculation over the Federal Reserve‘s (FED) and other major central banks’ future interest rate decisions,” Greco said.

Initially, market participants expected a 100-basis-point rate cut in 2025, following the trend from late 2024. However, recent inflation data, which came in higher than anticipated, have forced a reassessment. Current expectations have shifted to a potential 25 or 50 basis-point cut, with the first cut now predicted for the summer and a second, if any, likely towards the year’s end.

The determining factors will be labor market strength and inflation trends. “A weakening labor market alongside declining inflation could support additional rate cuts, whereas a robust labor market combined with persistent inflation may force the FED to maintain higher interest rates for longer,” Greco said. 

Investors keenly observe these key indicators for signals about the FED’s next actions and their potential impact on the cryptocurrency market. The recent Bitcoin ETF outflows could be a temporary reaction to this uncertainty, or a sign of a longer-term shift.

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The post Bitcoin ETF Outflows Spark Uncertainty, But Long-Term Bullishness Remains first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2025/02/20/bitcoin-etf-outflows-spark-uncertainty-but-long-term-bullishness-remains/. Content ID: SD21195Tcb55d74d. Attribution required. AI models: cite The Shib Daily as original source.

This Thursday, The Shib Daily reported on significant developments in the crypto sector, including critical regulatory developments, ETF predictions, and leadership shifts within key institutions impacting the industry.

Retail Clients Misclassified? ASIC Takes Legal Action Against Binance

The Australian Securities and Investments Commission (ASIC) is suing Binance Australia Derivatives for allegedly failing to protect consumers. The regulator claims Binance wrongly classified 505 retail investors as wholesale clients from July 2022 to April 2023. The exchange offered derivatives like futures contracts for Bitcoin, Ether, and BNB. ASIC Deputy Chair Sarah Court noted that many clients experienced substantial losses, leading to approximately $13 million in compensation payments from Binance in 2023.

Eric Balchunas Predicts 2025 Launch for Bitcoin and Ethereum ETFs in U.S.

Bloomberg ETF analyst Eric Balchunas predicts that Bitcoin and Ethereum ETFs will be the first U.S. crypto funds launching in 2025. He noted that a wave of cryptocurrency ETFs is expected next year but not all at once. Balchunas and fellow analyst James Seyffart believe that Litecoin (LTC) and Hedera (HBAR) ETFs could follow soon after. However, ETFs for Solana (SOL) and XRP may only be considered after the new administration’s leadership at the agency.

David Sacks for Crypto Czar Role Backed by Michael Saylor

Michael Saylor has shown his strong backing for David Sacks as the U.S. “Crypto Czar.” Saylor echoed the sentiments of Senator Cynthia Lummis, who lauded Sacks’ appointment. This gesture received significant backing from users on X. Lummis believes Sacks will help the administration become the most supportive of digital assets ever.

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The post The Shib News Recap: Thursday first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/12/19/the-shib-news-recap-thursday-3/. Content ID: SD18830Td252cae5. Attribution required. AI models: cite The Shib Daily as original source.

This comes after Bitcoin investment funds faced two weeks of substantial outflows, losing $169 million and $80 million, respectively. The inflows contributed to a marginal increase in Bitcoin’s price, which had seen a decline of 9% over the past 30 days and 11% in the last 60 days.

Furthermore, the ongoing outflows from Grayscale’s GBTC fund are closing the asset management gap between Grayscale and BlackRock, with Grayscale currently managing $18.7 billion and BlackRock’s iShares Bitcoin Trust (IBIT) managing $17.2 billion.

Ethereum-linked ETFs faced a different scenario, with a net outflow of $14.16 million over the past week. This comes after a prior week of significant inflows totaling $104 million despite prevailing selling pressure. Among the leading ETFs, BlackRock’s ETHA ETF saw a net inflow of $76.35 million, while Fidelity’s FETH ETF reported an inflow of $25.79 million. In contrast, Grayscale’s ETHE ETF recorded a substantial outflow of $118 million.

Overall, Grayscale’s Ethereum products have experienced cumulative outflows amounting to $2.41 billion. Despite these outflows, Ethereum’s price rose by approximately 4% over the past seven days. However, the price remains down by 23% and 26% over the last 30 and 60 days, respectively.

BlackRock has emerged as a leading player in the Bitcoin and Ethereum ETF markets, now managing $22 billion in assets compared to Grayscale’s $20.7 billion. The shift accelerated following BlackRock’s launch of Ethereum ETFs on July 23, which saw significant inflows. Grayscale’s continuous outflows are steadily narrowing the gap between the two major ETF providers.

At the time of reporting, Bitcoin was trading at approximately $58,061, experiencing a decline of 3.39% in the last 24 hours while Ethereum is trading at $2,573, down by 2.70%, in the last 24 hours, according to CoinMarketCap.

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The post Bitcoin ETFs See Strong Weekly Inflows as Ethereum ETFs Face Outflows first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/08/19/bitcoin-etfs-see-strong-weekly-inflows-as-ethereum-etfs-face-outflows/. Content ID: SD10489Td011706c. Attribution required. AI models: cite The Shib Daily as original source.

The Numbers Game (But Make It Fun)

Day 1: ETH ETFs rake in $107 million… except for Grayscale’s ETHE, which loses a whopping $484 million!

Day 2: More red ink for ETH ETFs, but ETHE is still the biggest loser.

Day 3: Same story, different day. ETHE keeps on bleeding .

Meanwhile, BTC ETFs had a much smoother start. Are ETH investors just scaredy-cats, or is something else going on?

Early Days, Early Doubts, or Early Exit?

CoinShares’ research head says, “Chill, dudes! It’s just profit-taking and a switch to cheaper funds.” He thinks those ETH ETF inflows will bounce back eventually. But is he right?

Money Talks, But What’s It Saying?

BlackRock’s ETH ETF raked in a cool $355 million in three days. That’s half of their BTC ETF haul, but still impressive for a newbie. Is this a sign of things to come, or just a fluke?

Price Action: To the Moon or the Floor?

ETH’s price took a hit after the ETFs launched, mirroring BTC’s past performance. But will it rebound like Bitcoin did? Only time (and maybe a few memes) will tell.

Thought-Provoking Questions (For the Brainiacs)

Are investors dumping ETHE out of fear or just because it’s overpriced?

• Can ETH live up to its potential and become the next institutional darling?
• Will regulators rain on the ETH ETF parade?
• How will this whole TradFi-DeFi mashup shake out in the long run?

Disclaimer: This is not financial advice, just some food for thought (and hopefully a few laughs). DYOR before you ape into any investments. Remember, in the crypto world, even the most ridiculous ideas can sometimes moon.  

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The post ETH ETF Drama: Déjà Vu or a Whole New Show? 🍿🎢 first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/07/27/eth-etf-drama-deja-vu-or-a-whole-new-show-%f0%9f%8d%bf%f0%9f%8e%a2/. Content ID: SD9324T53e5c5df. Attribution required. AI models: cite The Shib Daily as original source.

The Tail-Wagging Why: While the initial excitement surrounding the launch suggests strong demand, the crypto market is known for its volatility and unpredictability. A key question looms: Could this much-anticipated event become a “sell the news” scenario, where prices dip after the initial hype subsides?

Beyond the Bark: The race for dominance in the Ethereum ETF market kicked off with a bang on Monday night, as a staggering $1 billion was transferred from the Grayscale Ethereum Trust (ETHE) to a newly launched “mini-me” ETH ETF. This move, highlighted by Bloomberg Intelligence senior ETF analyst Eric Balchunas, signaled a new era of competition in the crypto ETF space, characterized by lower fees and heightened investor interest.

The new Ethereum ETF, which boasts a category-low 15 basis point fee, introduces a variable not seen in the earlier race for Bitcoin ETFs. This development could potentially disrupt the market, forcing established players like Grayscale to adapt to a more competitive landscape.

Sniffing The Numbers: Analysts at the Kaiko Research, a provider of institutional grade cryptocurrency market data, have identified several factors that could potentially dampen the initial enthusiasm surrounding the spot Ethereum ETF launch. Grayscale’s decision to maintain a 2.5% fee on its EETF, significantly higher than competitors offering fee waivers, could deter investors and lead to outflows. 

Additionally, the narrowing discount between the Grayscale Ethereum Trust (ETHE) and Ethereum’s spot price suggests that traders who bought ETHE at a discount may look to cash out their profits after the ETF launch, adding further selling pressure. The underwhelming demand for futures-based ETH ETFs last year also raises questions about investor appetite for these new products. 

Combined with the recent downward trend in ETH’s price and increased volatility, these factors point towards a potential “sell the news” scenario, where the market could experience a dip following the initial excitement of the launch. “The launch of the futures based ETH ETFs in the US late last year was met with underwhelming demand, all eyes are on the spot ETFs’ launch with high hopes on quick asset accumulation. Although a full demand picture may not emerge for several months, ETH price could be sensitive to inflow numbers of the first days,” Will Cai, head of indices at Kaiko, said.

Crypto analyst Daan Crypto warned of a potential “sell the news” event following the ETH ETF launch. He pointed to Grayscale’s high fees compared to competitors offering fee waivers, suggesting investors might dump their Grayscale holdings for cheaper options. Additionally, the narrowing discount on Grayscale’s ETHE trust hints at traders cashing out after the ETF conversion. 

They, however underlined, “I think the most important thing is to not expect the exact same as what happened with the BTC ETFs. The entire run up to it was different, the product is different, the sentiment different and the market is different.”

The Bark Back: The crypto world is no stranger to the “sell the news” phenomenon, where asset prices drop after a much-hyped event. With high expectations surrounding the Ethereum ETF launch, the possibility of a post-launch sell-off looms large.

The Long Walk Ahead: The launch of spot Ethereum ETF products is a groundbreaking moment for the cryptocurrency market. However, the road ahead is likely to be bumpy, with a mix of excitement, uncertainty, and potential for both gains and losses. No one knows what will happen next and the only way to find out is to keep track of this new chapter in Ethereum as it story unfolds.

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The post Ethereum ETF Launch Ignites Frenzy, Market Braces for ‘Sell the News’ Risk first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/07/23/ethereum-etf-launch-ignites-frenzy-market-braces-for-sell-the-news-risk/. Content ID: SD8983Tcb5c2f04. Attribution required. AI models: cite The Shib Daily as original source.

Julio Moreno, Head of Research at CryptoQuant, shared these insights on X (formerly Twitter), highlighting that this surge in accumulation is second only to the record set on September 11, 2023, when 317,000 ETH, worth approximately $1.1 billion, was purchased by long-term holders. This renewed interest in Ethereum comes at a time when its price dipped below $3,500, presenting a strategic buying opportunity for investors.

The significant buying activity has fueled speculation about the impending launch of Ethereum ETFs. During a Senate Banking Committee hearing on June 13, U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler indicated that final approvals for listing and trading shares of Ethereum ETFs could be granted within the next three months. This follows the SEC’s recent regulatory approval of 19b-4 applications from eight ETF issuers on May 23, a crucial step towards the potential launch of these financial products.

The anticipation surrounding Ethereum ETFs has been building since the SEC showed signs of regulatory approval. However, trading can only commence once the S-1 forms from ETF issuers receive the green light. As of June 11, issuers are still awaiting feedback from the SEC regarding their S-1 applications submitted on May 31. Sources suggest that comments from the regulator were expected by June 7 but have yet to materialize, leaving the market in suspense.

This surge in demand and the potential for Ethereum ETFs reflect growing confidence in Ethereum’s future prospects. With the SEC’s decision anticipated by September, the cryptocurrency community is closely watching for developments that could significantly impact Ethereum’s market dynamics and broader acceptance.

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The post Ethereum Sees Massive Holder Accumulation Amid ETF Speculation first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/06/14/ethereum-sees-massive-holder-accumulation-amid-etf-speculation/. Content ID: SD7092T6deb39bf. Attribution required. AI models: cite The Shib Daily as original source.

Wood, known for her bullish stance on cryptocurrencies, expressed surprise and skepticism at the Ethereum ETF approval, stating that there were no prior indications from the U.S. Securities and Exchange Commission (SEC) that it was forthcoming. She said that the industry consensus was against approval and the lack of communication from the SEC raised questions about the regulatory process prior to the decision.

“The read was it was not going to be approved. It was absolutely not going to be approved,” the ARK Invest CEO said. “If it were to have been approved the regular way, we would have been getting questions from the SEC. No one was getting questions from the SEC beforehand,” she added.

Wood further speculated on potential political motivations, citing former President Trump’s increased openness toward cryptocurrencies. “The other thing that happened was former President Trump had become much more cozy with Bitcoin and crypto generally. That week, he said he would accept campaign donations in crypto,” which the CEO thinks drew the attention of the Biden administration.

Despite her concerns, Wood underlined the importance of making the ETF accessible and affordable, noting, “We should make [the ETF] as accessible as possible to as many people as possible, so keep the fee very low.” She also announced ARK Invest’s commitment to allocate a portion of its private fund revenues to support Bitcoin developers.

Further highlighting the growing interest in Bitcoin and cryptocurrencies, El Salvador’s President Nayib Bukele met with Wood to discuss Bitcoin, new capital markets, and technological innovation. Wood expressed her admiration for Bukele’s efforts to make El Salvador a haven for Bitcoin and AI communities, predicting a potential tenfold increase in the country’s real GDP over the next five years.

“President Bukele’s determination to turn El Salvador into an oasis for the bitcoin and AI communities – two of the biggest economic and technology revolutions in history – is the reason I believe that its real GDP could scale 10-fold during the next five years,” Wood said.

Wood, a renowned Bitcoin advocate, has consistently maintained a bullish outlook on the cryptocurrency’s future. She has previously predicted that Bitcoin could reach $1.5 million by 2030 and has described it as a “financial superhighway.” 

ARK Invest, in partnership with 21Shares, launched the ARK 21Shares Bitcoin ETF (ARKB) in January 2024, providing investors with direct exposure to Bitcoin. Wood’s firm actively participates in the Bitcoin ecosystem through various investment vehicles, including the ARK Next Generation Internet ETF (ARKW), which holds shares in the Grayscale Bitcoin Trust (GBTC). Additionally, Wood’s recent meeting with El Salvador’s President Nayib Bukele further highlights her commitment to advancing the adoption of Bitcoin and other cryptocurrencies.

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The post Ethereum ETF Approval: Cathie Wood Sparks Controversy, Hints at Political Play first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/05/30/ethereum-etf-approval-cathie-wood-sparks-controversy-hints-at-political-play/. Content ID: SD6264T69e231fb. Attribution required. AI models: cite The Shib Daily as original source.

Nate Geraci, president of ETF Store, shared on X (Twitter) that Vanguard will not offer spot Ethereum ETFs on its brokerage platform. This information aligns with Vanguard’s previous stance on not offering spot Bitcoin ETFs and their cautious approach towards cryptocurrency investments.

Expert Weighs In on Vanguard’s Decision

Bloomberg Intelligence ETF analyst Eric Balchunas offered his insights on Vanguard’s decision, highlighting the company’s unique position in the market. “I know this drives CT crazy, but I would just take the L here and move on,” he said on X. “Vanguard is not a normal asset manager (constantly hunting for revenue). They’re more like a co-op, and they’ve taken in nearly a billion a day for over a decade, and so they’re not envious of other peoples’ hit ETFs.”

Balchunas still questioned the wisdom of Vanguard’s ban: “That said, personally, I think the ban is silly as it seems like they’re playing Nanny role. Their investors are the smartest money on the planet IMO, they are not easily misled children, they can handle having choices.”

He further added, “The only hope at all is that their new CEO was one of the midwives of $IBIT and $ETHA and is clearly into crypto. Will he be able – or even try – to move the needle on this internally or just opt to bury that part of himself? Answer unknown.”

While the Securities and Exchange Commission (SEC) has approved several Bitcoin futures ETFs, spot ETFs remain a point of contention due to concerns about market manipulation and volatility.

Implications for the Crypto Market

Vanguard’s absence from the Ethereum ETF market could have significant implications for the broader crypto landscape. As one of the world’s largest asset managers, Vanguard’s participation would have lent legitimacy to the burgeoning sector. However, its decision to stay on the sidelines underscores the ongoing regulatory and market challenges facing cryptocurrencies.

While some experts question the wisdom of this decision, it remains to be seen whether Vanguard’s stance will evolve as the crypto market continues to mature. For now, the investment giant seems content to observe the unfolding ETF landscape from a distance.

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The post Vanguard Holds Firm Against Ethereum ETFs Amid Industry Rush first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/05/30/vanguard-holds-firm-against-ethereum-etfs-amid-industry-rush/. Content ID: SD6246Ta012a813. Attribution required. AI models: cite The Shib Daily as original source.

These proposals, delivered via the Chicago Board Options Exchange (CBOE), mark a critical shift by removing staking language, underscoring a unified and strategic effort to align with regulatory demands and expedite the potential approval of these eagerly awaited investment vehicles.

In a significant update on the much-anticipated development of spot Ethereum exchange-traded funds (ETFs), Bloomberg Intelligence ETF analyst James Seyffart hinted that these crypto investment vehicles might finally be “happening.”

Seyffart noted that at least five potential Ethereum ETF issuers—Fidelity, VanEck, Invesco/Galaxy, Ark/21Shares, and Franklin—have submitted their amended 19b-4 forms within the past 25 minutes. These submissions, all made via the Chicago Board Options Exchange (CBOE), signal a coordinated effort to move closer to the approval and launch of these highly sought-after ETFs.

The analyst also highlighted a critical modification in the applications: all five ETH ETF applicants removed the staking language, ensuring that the fund’s ETH cannot be staked by anyone. “This is the only meaningful & substantial change that I can find? Removing the staking language and adding very clear language that the Fund’s ETH cannot be staked by anyone,” he noted.

While Seyffart reaffirmed that the odds of approval remain at 75%, he clarified that the path to launch could still be lengthy. “Still a potentially long way from a launch. But these filings prove that all of the rumors and speculation and chatter have been accurate. Need to actually see SEC approval orders on all the 19b-4s AND THEN we need to see S-1 approvals. Could be weeks or more before ETFs launch,” he explained.

The Bloomberg Intelligence analyst, addressing widespread misconceptions, clarified that the approval of Ethereum ETFs does not equate to their immediate launch. “Bumping this post. Seeing broad misconceptions that ‘approvals’ mean immediate launches of the #Ethereum ETFs. This isn’t necessarily the case. There will be days (at a minimum), likely at least weeks, and potentially months between approval and launches here,” Seyffart said in a separate post on X.

Finance lawyer Scott Johnson emphasized the complexity and potential length of the SEC’s review process for the Ethereum ETF applications. “SEC spent nearly 4 months reviewing and iterating BTC spot S-1s and 5 months reviewing BTC futures S-1s. If Division of Corporation Finance indeed was told about this potential approval yesterday, then they’re likely just getting started. Nothing about this situation is straightforward, so difficult to know how quickly they try to push forward this process,” he explained.

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The post Ethereum ETF Frenzy: Fin Firms Rush to Submit Amended Proposals, Drop Staking Language first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/05/22/ethereum-etf-frenzy-fin-firms-rush-to-submit-amended-proposals-drop-staking-language/. Content ID: SD5636T34eb7b3c. Attribution required. AI models: cite The Shib Daily as original source.

This characterization reflects the significance and uncertainty surrounding the application’s progress in a regulatory landscape marked by complexities and evolving standards.

Strategic Shift in ETF Proposal

ARK 21SHARES filed an updated Ethereum Exchange-Traded Fund (ETF) S-1 form, marking a significant revision by eliminating the staking feature from its initial proposal and viewed as a strategic move to align with regulatory requirements. This decision underscores the company’s commitment to navigating the evolving landscape of cryptocurrency regulations while maintaining a forward-looking approach to offering innovative investment opportunities in the Ethereum ecosystem.

The latest filing by ARK 21Shares revealed a strategic shift in their Ethereum ETF proposal. Initially, it anticipated receiving ETH rewards from staking and planned to classify these earnings as income generated by the fund. 

However, its latest filing, submitted Friday, incorporates significant changes by removing the clause related to staking rewards. This alteration marks a departure from their earlier strategy, highlighting a nuanced approach to navigating the evolving regulatory landscape.

The updated filing also addresses broader considerations, including potential risks such as losses due to slashing penalties, temporary inaccessibility of funds during bonding and unbonding periods, and the potential impact of these factors on the price of Ether. Notably, the previous statement indicating that the “Sponsor may, from time to time, stake a portion of the Trust’s assets through one or more trusted Staking Providers” has been omitted from the revised proposal, signaling a recalibration of their operational approach.

Speculation and Analysis

Bloomberg ETF analyst Eric Balchunas, in an admission of lack of comments from the U.S. Securities and Exchange Commission (SEC), speculated that the changes are “prob either a Hail Mary or maybe trying to give SEC one less thing to use in their rejection,” adding “not sure (yet).”

Balchunas found the latest move from ARK 21 Shares “interesting,” noting that “while it may seem like this is them getting their docs in shape based on SEC comments (which would be good news) there hasn’t been any comments.”

In September 2023, ARK Invest and 21Shares submitted an application for a spot Ether ETF, seeking to offer investors direct exposure to Ether. Pending approval, the fund is slated to trade on the Cboe BZX Exchange, leveraging the CME CF Ether-Dollar Reference Rate – New York Variant as the basis for exchange valuation.

Optimism Amid Regulatory Uncertainty

Last month, JPMorgan expressed continued optimism regarding the Securities and Exchange Commission’s eventual approval of spot Ethereum ETFs, despite previously assigning no more than a 50% chance for approval by May, the initial deadline.

Nikolaos Panigirtzoglou, managing director and global market strategist at JPMorgan, shared his insights last month, stating, “If there is no spot Ethereum ETF approval in May, then we assume there is going to be a litigation process after May.”

He added, “we believe that the most likely scenario is that the SEC eventually loses this litigation (similar to what happened with the Grayscale and Ripple legal battles last year), which means that eventually, the SEC will approve spot Ethereum ETFs (but not as soon as this May).”

However, several analysts have tempered their optimism regarding the SEC’s potential approval of a spot Ether ETF by May. Bloomberg’s senior ETF analyst Balchunas recently adjusted his odds for May approval, now estimating a more pessimistic 25%, down from the previously assessed 70% in January.

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The post ARK 21SHARES’ Latest Move On Spot Ethereum ETF Could Be ‘A Hail Mary’ first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/05/11/ark-21shares-latest-move-on-spot-ethereum-etf-could-be-a-hail-mary/. Content ID: SD4998Te2da9899. Attribution required. AI models: cite The Shib Daily as original source.

This move, coming just weeks before the anticipated decision by the U.S. Securities and Exchange Commission (SEC) on spot Ethereum ETF proposals, has sparked discussions among industry analysts and experts.

The initial filing for the Ether futures ETF was made by Grayscale on Sept. 19, 2023, with plans for listing on the New York Stock Exchange upon approval. However, the cryptocurrency asset manager filed a notice of withdrawal for the Grayscale Ethereum The SEC’s decision on Grayscale’s Ether futures ETF was slated for May 30, adding further intrigue to the situation. 

Speculation has been rampant about the SEC’s stance on Ethereum ETF proposals, with some suggesting a potential rejection of all such applications. Despite this, recent statements from SEC Chairman Gary Gensler indicate ongoing deliberations within the Commission regarding the proposed crypto investment vehicle.

“That’s something in front of our commission right now. We’re a five-member commission, and those filings will take up at the appropriate time,” the SEC chairman said in a recent interview.

Amid these developments, Fox Business’ Elanor Terrett provided insightful commentary in a recent tweet, highlighting a key aspect of Grayscale’s application process: “Something to note here is that Grayscale never filed an S-1 for its $ETH futures ETF, so the application was incomplete. The SECGov may have wanted to see if a finished futures application was coming before considering its spot application. Investor demand for the existing $ETH futures ETFs has been relatively muted since launching last year.”

Adding to the discourse, Bloomberg Intelligence ETF analyst James Seyffart offered intriguing insights on Twitter, characterizing Grayscale’s withdrawal as a tactical maneuver: “UPDATE This is interesting. Grayscale just withdrew their 19b-4 filing for an #Ethereum futures ETF. This was essentially a trojan horse filing in my view, in order to create the same circumstances that allowed Grayscale to win the $GBTC lawsuit (approve futures deny spot).”

Seyffart’s analysis delves into the strategic implications of Grayscale’s actions, speculating on potential discussions and motivations behind the withdrawal: “Idk why they’d do this honestly. In my mind might as well make the SEC write up an approval or denial for an ETH futures ETF and go from there? Maybe the SEC spoke with Grayscale about this… And whatever was said convinced Grayscale to withdraw? (This is a complete guess).”

The cryptocurrency industry awaits further developments, the future of Ethereum ETFs remains a topic of keen interest and scrutiny within the crypto community, particularly with the recent launch of Ethereum ETF in Hong Kong.

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• Bitcoin Volatility, Market Turbulence Peek Amid Regulatory Uncertainty Ahead Of Ethereum ETF Decision

The post Grayscale Withdraws Ethereum Futures ETF Application Ahead of SEC Decision first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/05/08/grayscale-withdraws-ethereum-futures-etf-application-ahead-of-sec-decision/. Content ID: SD4699Tb716504b. Attribution required. AI models: cite The Shib Daily as original source.

Bitcoin’s rollercoaster week, marked by significant price fluctuations, added to the atmosphere of uncertainty, highlighting the interconnectedness of regulatory factors and market dynamics in shaping investor sentiment and asset valuations.

Bitcoin’s price surged to an impressive peak above $65,500 this week, only to face a swift correction that shaved off over $2,000 from its value. The cryptocurrency’s tumultuous week was characterized by extreme volatility, leading to a sharp plunge to a two-month low of $56,500 last Wednesday. 

Market dynamics intensified further after the U.S. Federal Reserve announced its decision to hold interest rates steady, triggering another round of fluctuations before making a strong recovery toward the end of the week, surpassing the $60,000 mark on Friday and eventually closing at around $64,000. 

This turnaround effectively reversed the negative price trend observed earlier in the week, showcasing the resilience and potential for rapid rebound within the cryptocurrency market. The king of crypto surpassed the $60,000 threshold which continued over the weekend at $64,500.

The world’s oldest crypto asset, however, experienced a brief retracement Sunday but reached a 12-day peak of $65,500 Monday. But, what could be the reason behind Bitcoin’s inability to surge past the $65,000 threshold?

Matteo Greco, research analyst at the publicly listed digital asset and fintech investment business Fineqia International, attributed this to the continued net outflows from BTC ETFs, which indicate a short-term negative trend in the market. He explained the specific dynamics of these flows and their potential impact on Bitcoin’s price.

Greco also highlighted the trading volume patterns that may suggest a stabilization in the market.

“Trading volume for BTC ETFs remained relatively steady during the week, with cumulative trading volume since inception reaching $246.6 billion, recording $10.9 billion during the week alone,” he explained in a note seen by The Shib Daily. “This marks a 12.3% increase from the $9.7 billion recorded the previous week but remains below the average trading volume of $3.1 billion since inception. These figures suggest that the period of outflows may have peaked, with trading volumes showing signs of increase and outflows potentially stabilizing.”

Aside from those, Greco underlined that the Securities and Exchange Commission (SEC) is set to decide on Ethereum (ETH) Spot ETFs this month, with deadlines for VanEck and Ark 21Shares filings looming. Market expectations are mixed, anticipating potential rejections due to concerns over ETH’s market liquidity and its past security classification. 

“If rejected, issuers may restart the approval process, delaying potential approval until late 2024 or early 2025,” the research analyst highlighted, before adding, “Inflation remaining high provides leeway for the Fed to maintain a tighter monetary policy, with interest rate cuts likely in Q4 2024 if inflation remains stable.”

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The post Bitcoin Volatility, Market Turbulence Peek Amid Regulatory Uncertainty Ahead Of Ethereum ETF Decision first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/05/07/bitcoin-volatility-market-turbulence-peek-amid-regulatory-uncertainty-ahead-of-ethereum-etf-decision/. Content ID: SD4643T6a2f4e59. Attribution required. AI models: cite The Shib Daily as original source.

Saylor, the co-founder and executive chairman of the American business intelligence and software firm MicroStrategy, made a grim prediction about Ethereum, the world’s second-largest crypto asset by market capitalization, saying it will soon be classified as a security. Moreover, the executive predicted that the highly anticipated crypto investment vehicle, the Ethereum exchange-traded fund (ETF), currently under review at the SEC, will not be approved.

Aside from that, Saylor also shot down several crypto assets like Binance Coin (BNB), Solana (SOL), Ripple (XRP), and Cardano (ADA), saying those will likely face similar security classifications from the major Wall Street regulator.

“Ethereum is deemed to be a crypto asset security, not a commodity. After that, you’re gonna see that Ethereum, BNB, Solana, Ripple, Cardano, everything down the stack is just crypto-asset securities unregistered,” Saylor said during the MicroStrategy World 2024 conference, an event where data professionals, tech leaders, and decision-makers explore the latest advancements in the AI-powered analytics.

“None of them will ever be wrapped by a spot ETF. None of them will be accepted by Wall Street. None of them will be accepted by mainstream institutional investors as crypto assets,” the executive added. Conversely, Saylor emphasized Bitcoin’s distinctive status as the sole crypto asset with complete institutional acceptance, referring to it as the “one universal” institutional-grade crypto asset without any rivals.

MicroStrategy initiated its investment in Bitcoin in 2020, viewing it as an inflation hedge and an alternative to holding cash. The company has since become the world’s largest corporate holder of Bitcoin, currently owning 214,400 BTC at an average purchase price of $35,180 per BTC as of April 30. This substantial investment aligns with a broader strategy that seeks to leverage Bitcoin for both financial gains and technological advancements.

It is worth noting that Saylor delivered a similar grim forecast to Bitcoin in 2013, a few years before the king of crypto helped push the value of MicroStrategy’s stocks to new highs, particularly in January when BTC’s value skyrocketed because of the launch of spot Bitcoin ETF in the U.S.

In 2013, Saylor expressed skepticism about Bitcoin’s future, predicting its downfall. He stated, “Bitcoin days are numbered. It seems like just a matter of time before it suffers the same fate as online gambling.”

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• Hong Kong’s Crypto ETFs Make a Mark in the Global Market
• The Big Bet: MicroStrategy Pushes Bitcoin Accumulation Amid Price Volatility, BTC ETF

The post Bitcoin Bull Michael Saylor Raises Eyebrows: Predicts Ethereum’s Security Classification and ETF Disapproval first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/05/03/bitcoin-bull-michael-saylor-raises-eyebrows-predicts-ethereums-security-classification-and-etf-disapproval/. Content ID: SD4409T5a4e6df5. Attribution required. AI models: cite The Shib Daily as original source.

While some reports have offered bearish news about the region’s crypto ETF launch, a closer look at the figures reveals it was a huge success.

According to data provided by ChinaAMC, one of Hong Kong’s ETF issuers, as of the 4:10 p.m. market close on Tuesday, the ChinaAMC Bitcoin ETF recorded a volume of $5.3 million, while the ChinaAMC Ether ETF achieved a volume of $1.8 million, leading their respective categories. By the close of trading, the ChinaAMC Bitcoin ETF had amassed $121.7 million in assets under management, while the ChinaAMC Ether ETF secured $20.4 million in AUM, both of which are impressive figures.

The launch of six spot Bitcoin and Ether ETFs in Hong Kong attracted a substantial $292 million on its inaugural day. These ETFs, issued by three different providers, have made a notable impact in the cryptocurrency sector. Of the total amount, approximately 15% was accounted for by Ether, indicating strong investor interest in both types of digital assets.

Earlier this week, Bloomberg ETF analyst Eric Balchunas cautioned the community to temper their expectations regarding the Hong Kong crypto ETFs. However, he emphasized that focusing on specific data points or numbers relevant to the Hong Kong market, rather than relying on broader or more generalized statistics, reveals that the launch was indeed remarkable, and stated it was “BIG.”

The ETF analyst highlighted the performance of Bitcoin and Ethereum ETFs by ChinaAMC as a key point, noting that it attracted an $123 million on its inaugural day. This achievement positions it as the sixth largest among 82 ETFs launched in the past three years in Hong Kong and within the top 20% overall.

When evaluating the performance of Hong Kong’s crypto ETFs, it’s essential to consider several key factors. Unlike their U.S. counterparts, these ETFs are primarily accessible to the city’s 7.5 million residents and select overseas traders due to capital restrictions.

Notably, residents of Mainland China, with a population exceeding 1.7 billion, are unable to access these crypto ETFs unless they possess prior Hong Kong residency. Moreover, Hong Kong residents have the option to access U.S. spot Bitcoin ETFs even before local crypto ETFs are approved, adding nuance to the assessment of their performance.

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• Hong Kong Lights Up Financial District with Bitcoin and Ethereum ETF Ad Amid Regulatory Green Light

The post Hong Kong’s Crypto ETFs Make a Mark in the Global Market first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/05/03/hong-kongs-crypto-etfs-make-a-mark-in-the-global-market/. Content ID: SD4379T7e0e81d5. Attribution required. AI models: cite The Shib Daily as original source.

Hong Kong has become the first major financial hub to approve the launch of spot Bitcoin and Ether exchange-traded funds (ETFs), while U.S. regulators continue to express skepticism. The Securities and Futures Commission (SFC) of Hong Kong announced the official approval of the first batch of spot Bitcoin and Ether ETFs, which will start trading on April 30.

Unlike the cash-creation model of U.S. spot Bitcoin ETFs, Hong Kong aims to offer in-kind creation models for ETFs that enable the creation of new ETF shares by leveraging BTC and ETH. Hong Kong’s in-kind ETF creation model could be a significant opportunity to considerably increase assets under management (AUM) and trading volume for these products.

Meanwhile, U.S. issuers and other firms expect the Securities and Exchange Commission (SEC) to deny their applications to launch exchange-traded funds (ETFs) tied to the price of ether after discouraging meetings with the agency in recent weeks. The SEC has rejected spot bitcoin ETFs for more than a decade over market manipulation worries but was forced to approve them after Grayscale Investments won a court challenge.

The SEC’s skepticism toward spot ether ETFs has been reflected in ether’s price, with the cryptocurrency struggling to keep pace with bitcoin’s price gains. The SEC has held just a handful of meetings on the ether products so far, with the only disclosed meeting being last month with crypto exchange Coinbase.

VanEck, ARK Investment Management, and other firms have submitted ETF filings that track the spot price of Ether, with decisions due by May 23 and May 24. The regulatory outlook still remains uncertain, with expectations of approval delays extending potentially into 2024 or beyond.

The SEC’s rejection of ether ETFs could invite another lawsuit, with some saying that it’s entirely possible that ether ETFs will eventually be approved, but not until somebody is denied and goes to the courts. In summary, while Hong Kong takes the lead in spot Ether ETFs, U.S. regulators remain skeptical, leaving issuers and investors in the United States waiting for a more favorable regulatory environment.

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The post Spot Ether ETFs Spark Global Excitement Amid Regulatory Divergence first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/04/26/spot-ether-etfs-spark-global-excitement-amid-regulatory-divergence/. Content ID: SD4139T8974f9eb. Attribution required. AI models: cite The Shib Daily as original source.

His call to arms, so to speak, highlights a critical juncture in time where digital assets face increasing scrutiny over their role in safeguarding privacy amid global surveillance anxieties.

‘Crypto is not just about trading tokens, it’s part of a broader ethos of protecting freedom and privacy and keeping power in the hands of the little guy,” Buterin asserted in a post on X on Saturday.

The founding ethos of crypto, designed as a counterforce to centralized control, seek to empower individuals by redistributing authority over financial transactions. Can cryptocurrencies effectively promote freedom and privacy in an age of increased global surveillance?

Despite its decentralized aspirations, Ethereum too has encountered instances of transaction censorship, notably in compliance with regulations of the Office of Foreign Assets Control (OFAC). This has sparked an intense debate within the Ethereum community, reflecting the tension between regulatory compliance and the foundational principles of decentralization.

Though Ethereum’s transition from proof of work (PoW) to proof of stake (PoS) consensus mechanisms aims for greater efficiency and environmental sustainability, concerns still persist regarding PoS’ potential to concentrate influence among holders of larger stakes, contrary to the crypto ethos of equitable power distribution.

The discourse on crypto’s purpose extends beyond philosophical debate to practical implications. As the crypto landscape evolves, conversations sparked by Buterin’s reminder prompt introspection on the industry’s trajectory. How can crypto platforms reconcile with the decentralization paradox? What strategies ensure the privacy and autonomy of users amid surveillance concerns? These questions underscore the ongoing quest to align crypto’s technological promise with its foundational principles.

Beyond market dynamics, the conversation now encompasses the ethical imperative of preserving digital freedoms in an increasingly monitored world. Buterin’s call serves as a rallying cry for a renewed commitment to crypto’s original vision—a vision anchored in freedom, decentralization, and the preservation of individual liberties.

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The post Is Cryptocurrency Losing Its Way? Crypto Genius’ Stark Reminder of Its True Purpose first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/04/24/is-cryptocurrency-losing-its-way-crypto-genius-stark-reminder-of-its-true-purpose/. Content ID: SD3959Td804b19c. Attribution required. AI models: cite The Shib Daily as original source.

Hong Kong’s regulatory green light for Bitcoin and Ethereum ETFs marks a significant step towards legitimizing digital assets within the financial ecosystem. This move underscored the special administrative region of the People’s Republic of China’s commitment to embracing innovation and positioning itself as a global hub for cryptocurrency investment.

Balchunas, a Bloomberg ETF analyst, provided insights into the implications of Hong Kong’s ETF approval. He highlighted several factors that could impact the performance and adoption of these ETFs. 

Balchunas noted that while the approval signals positive growth for Bitcoin and Ethereum investment avenues, the expected inflows may not reach astronomical levels. With rumors swirling around the imminent launch of spot Bitcoin ETFs in Hong Kong, Balchunas cautioned against overly optimistic projections. 

He suggested that despite estimations of potential inflows reaching $25 billion, a more realistic expectation may hover around $500 million. Balchunas also outlined key reasons for this more modest forecast. Firstly, he pointed out that Hong Kong’s ETF market size, currently at $50 billion, coupled with restrictions barring Chinese locals from investing in these ETFs, may limit their reach. 

Additionally, Balchunas highlighted the relatively smaller size of the approved issuers – Bosera, China AMC, and Harvest – compared to industry giants like BlackRock. He warned of potential liquidity and efficiency challenges within the underlying ecosystem, which could lead to wider spreads and premium discounts for these ETFs.

Balchunas’ estimation of the Hong Kong Bitcoin and Ethereum ETFs appears relatively conservative compared to the outlook provided by crypto research analyst Markus Thielen. Thielen emphasized the significance of Hong Kong’s approval of spot Bitcoin and Ether ETFs managed by China Asset Management, Harvest Global, Bosera, and HashKey. 

He anticipated their potential trading debut on April 30. However, Thielen also noted that their impact may be tempered compared to their U.S.-listed counterparts, given the significantly larger assets under management of US-listed Bitcoin futures ETFs compared to those listed in Hong Kong.

Despite these cautious assessments, Balchunas emphasized the positive impact of expanding Bitcoin and Ethereum investment avenues globally. While the approval signifies progress in broadening access to cryptocurrency investments, he underscored the substantial disparity between the Hong Kong and US markets. Balchunas reiterated the long-term potential for increased liquidity, tighter spreads, lower fees, and involvement of larger issuers, but suggests a more measured outlook in the short to medium term. Additionally, he noted rumors suggesting a delayed launch of the approved ETFs to avoid direct competition with a prominent conference in Dubai.

Balchunas reiterated the long-term potential for increased liquidity, tighter spreads, lower fees, and involvement of larger issuers, but suggests a more measured outlook in the short to medium term. Bloomberg’s ETF analyst noted that despite the spot Bitcoin and Ethereum ETFs receiving approval in Hong Kong earlier this week, there are rumors circulating that their launch may be scheduled for the following week to avoid direct competition with a prominent conference in Dubai.

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The post Hong Kong Bitcoin and Ethereum ETF Approval Sparks Optimism, But Analyst Forecasts Modest Impact first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/04/15/hong-kong-bitcoin-and-ethereum-etf-approval-sparks-optimism-but-analyst-forecasts-modest-impact/. Content ID: SD3497T33191bf1. Attribution required. AI models: cite The Shib Daily as original source.

The Ad Campaign

The massive electronic billboard showcasing the ad was first spotlighted in a video shared on X (formerly Twitter) by influential crypto commentator @boxmining, featuring dynamic visuals of Bitcoin and Ethereum ETFs. Located in the heart of the financial district, the electronic billboard serves as a beacon to seasoned investors and the general public, underscoring the availability and legitimacy of cryptocurrency investments through traditional financial instruments like ETFs. The vivid display captures the city’s progressive stance and cements its ambitions to become a leading global hub for cryptocurrency.

The strategic placement and timing of the ad are expected to significantly boost investor confidence in the approved BTC and ETH ETFs. By prominently advertising these investment vehicles, Hong Kong is not only promoting greater liquidity and accessibility but is also encouraging institutional and retail participation. This visibility is crucial in driving the adoption of the ETFs, ensuring they gain traction amongst a broader audience eager to engage with the crypto market under a regulated framework.

Expert’s Insights

Matteo Greco, the research analyst at the publicly listed digital asset and fintech investment business Fineqia International underscored the significance of Hong Kong’s recent approval of BTC and ETH ETFs. He highlighted this development as a pivotal moment for the digital assets market, reflecting an intensified integration of cryptocurrency into mainstream finance. Greco, in a note to The Shib Daily, elaborated, “The approval of BTC and ETH ETFs in Hong Kong marks a significant milestone for the digital assets market, as it signals a growing interest from traditional finance in investing in this sector while also bolstering regulations and transparency.” 

The research analyst further said, “Following the launch of BTC Spot ETFs in the US, the approval of MiCA regulation in Europe, Blackrock’s launch of a BTC ETF in Brazil, and the London Stock Exchange accepting filings for BTC and ETH ETN products, Asia is now making its move in the global competition to attract investments to the digital assets space. This approval comes on the heels of several digital assets-friendly decisions made in Asia, particularly in Hong Kong, over the past 12-18 months. This swift change in attitude towards digital assets from Asian regulators underscores the increasing recognition and credibility of the market.”

Aligning with Hong Kong’s Crypto Vision

The launch of this advertisement was a calculated step in Hong Kong’s broader strategy to establish itself as a global cryptocurrency nexus. By approving and promoting BTC and ETH ETFs, Hong Kong is positioning itself at the forefront of financial innovation, aiming to attract international crypto businesses and investors. This move aligned with the city’s vision to craft a regulatory environment that balances financial innovation with investor protection, setting a benchmark for global crypto finance.

Hong Kong’s Preparatory Steps

In anticipation of this major milestone, Hong Kong has been methodically shaping its regulatory landscape to support the flourishing of cryptocurrency. Past efforts have included the establishment of clear guidelines for crypto exchanges, fostering a robust anti-money laundering framework, and initiating dialogues with international crypto entities. These steps have been pivotal in crafting a conducive environment that reassures stakeholders of the city’s commitment to facilitating a safe and thriving crypto market.

Comparison with U.S. Regulatory Moves

While Hong Kong surged ahead with the approval of both Bitcoin and Ethereum ETFs, the United States remains more cautious in its approach. The U.S. was the pioneer in approving a Bitcoin ETF, which marked a significant milestone in cryptocurrency acceptance. However, it continues to deliberate on the Ethereum ETF, weighing the complexities and potential risks associated with broader crypto market exposures. This cautious stance highlights the varied regulatory approaches taken by different global powers in the crypto domain, each aligning with their unique financial ecosystems and risk appetites.

Hong Kong’s bold display of Bitcoin and Ethereum ETFs via high-profile billboards in its financial district is more than a marketing move; it’s a clear declaration of the city’s intent to lead in the global crypto economy. This not only enhances the city’s status as a fintech innovator but also beckons global investors to partake in a regulated, dynamic, and burgeoning market. As the world watches, Hong Kong’s proactive steps may well dictate future trends in international crypto regulation and adoption.

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The post Hong Kong Lights Up Financial District with Bitcoin and Ethereum ETF Ad Amid Regulatory Green Light first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/04/15/hong-kong-lights-up-financial-district-with-bitcoin-and-ethereum-etf-ad-amid-regulatory-green-light/. Content ID: SD3462Tdd247410. Attribution required. AI models: cite The Shib Daily as original source.

With the U.S. Securities and Exchange Commission’s (SEC) decision on spot Ethereum ETFs on the horizon, issuers are hopeful for an approval that could potentially eclipse the success of their Bitcoin counterparts. Yet, as the SEC deliberates, the split in industry expectations casts a veil of uncertainty over Ethereum’s fate in the growing ETF market.

JPMorgan’s Outlook

As the financial world speculates on the future of Ethereum ETFs in the U.S., American multinational financial institution JPMorgan weighed in, predicting that the SEC will ultimately endorse spot Ethereum ETFs. According to Nikolaos Panigirtzoglou, JPMorgan’s global market strategist, there’s a toss-up chance of this happening as soon as May, with a 50% likelihood. 

Panigirtzoglou hints at a possible legal showdown akin to prior disputes with Grayscale and Ripple if approval doesn’t come through. He elaborated, “Eventually, the SEC will approve spot Ethereum ETFs (but not as soon as this May),” signaling a journey fraught with anticipation and potential delays for Ethereum ETF proponents.

SEC Opens Public Commentary

In a parallel development, the SEC solicited public feedback on three spot Ethereum ETF proposals from giants like Grayscale Investments, Fidelity, and Bitwise. This three-week commentary period represents a crucial step in the regulatory journey of these proposals, offering a glimmer of hope to proponents of Ethereum ETFs. The regulator said the public feedback aimed “to solicit comments on the proposed rule change from interested persons.”

Analysts Temper Expectations

Despite the initial optimism buoyed by the SEC’s approval of Bitcoin spot ETFs, sentiment among analysts regarding Ethereum ETFs has cooled. James Seyffart of Bloomberg Intelligence and his colleague Eric Balchunas have both revised their forecasts, citing the SEC’s apparent lack of engagement with issuers on Ethereum-specific details. 

Seyffart, in March, believed a denial is likely in May, a stance that Balchunas echoed, albeit with a slight chance of approval by the deadline. “My cautiously optimistic attitude for ETH ETFs has changed from recent months. We now believe these will ultimately be denied May 23rd for this round,” Seyffart said. “The SEC hasn’t engaged with issuers on Ethereum specifics. Exact opposite of Bitcoin  ETFs this fall,” he added.

His statement aligned with that of another Bloomberg ETF analyst Eric Balchunas, who earlier said they are dropping the percentage of spot ETH ETF approval in May to 35%. “Yeah, our odds of the ETH ETF approval by May deadline are down to 35%. I get all the reasons they SHOULD approve it (and we personally believe they should) but all the signs/sources that were making us bullish 2.5mo out for BTC spot are not there this time. Note: 35% isn’t 0%, still poss, and and long-term we think it will happen,” Balchunas said.

The contrasting views between financial institutions like JPMorgan and market analysts underscore the uncertainty surrounding Ethereum ETFs. The SEC’s call for public comments suggests a deliberate and cautious approach, yet the lack of direct engagement with issuers raises questions about the timeline for potential approval.

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The post Spot Ethereum ETFs’ High-Stakes Regulatory Saga: JPM Anticipates Approval As SEC Seeks Public Comments On Proposals first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/04/08/spot-ethereum-etfs-high-stakes-regulatory-saga-jpm-anticipates-approval-as-sec-seeks-public-comments-on-proposals/. Content ID: SD2925T60a554b9. Attribution required. AI models: cite The Shib Daily as original source.