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Ethereum ETF

Hong Kong’s In-Kind ETFs Set To Launch On April 30

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Hong Kong will witness the launch of its Bitcoin and Ethereum Spot ETF according to a HashKey spokesperson. Slated to go live on April 30, the move marks a new era in the region positioning itself as the global digital asset hub. One particularly noteworthy feature is the structure of these ETFs. Unlike traditional cash-settled ETFs, these financial products will be based on an in-kind approach that facilitates the creation and redemption of shares directly with the underlying Bitcoin and Ethereum.

According to crypto trading firm Wintermute, the in-kind approach will draw more appeal from crypto natives, market makers, and digital-asset exchanges because of its greater efficiency and arbitrage opportunities. Besides closely tracking the actual market prices of Bitcoin and Ethereum, the in-kind mechanism also addresses concerns regarding market manipulation and excessive volatility, a bone of contention particularly between the U.S. SEC and ETF issuers.

While crypto enthusiasts in Hong Kong are allowed to own Ethereum ETFs. Meanwhile, the US: “You’re not allowed to own ETH ETFs or participate in airdrops because the SEC is protecting you. But if you want to get rich quick, why don’t you go to the casino or buy some lottery tickets?

Hong Kong Innovates as US Hesitates

Market experts worldwide are drawing comparisons to the ETF scene in the US market following the news. Besides the approval of a Bitcoin ETF, there is not much progress for an Ethereum ETF approval. Various issuers, such as Grayscale and BlackRock, have made moves regarding Ethereum ETFs. For instance, Grayscale has filed to convert its Ethereum Trust to an Ether ETF, and BlackRock has submitted an amendment to its 19b-4 ETH ETF application. However, the SEC has postponed decisions concerning Grayscale and Franklin.

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Hong Kong's In-Kind ETFs Set To Launch On April 30 2

Hong Kong’s latest launch also indicates the increasing integration of cryptocurrencies into mainstream financial systems and the growing acceptance of digital currencies by institutional investors globally. This step by Hong Kong could set a precedent for other financial centers in Asia and worldwide, promoting further adoption and innovation within the crypto space.

Ethereum Price Prediction: Analysts Eye $3,650 Breakout Beyond 1.63M Addresses Barrier

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Ethereum (ETH), the second largest cryptocurrency, is currently fighting a strong battle as it aims to push through a crucial resistance zone. According to renowned analyst Ali, this is a turning point where the price range should be between $3,170 and $3,270. Ali has identified that over 1.63 million addresses within this resistance zone are currently holding 4.45 million ETH which is pretty much significant enough for consideration regarding these areas of concentration in terms of their ownership pattern, as it means so much in its journey toward where it can go based on what such owners decide.

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For enthusiasts and investors who are passionate about ETH breaking past this ceiling, there is enormous potential here. Ali predicts that if the cryptocurrency clears this hurdle out of its way, then significant upward movement could be expected; thus the price of ETH might move higher to reach $3,650.

Potential Catalyst: Approval of Ethereum Spot ETF

The potential catalyst for this surge lies in the realm of financial regulation, specifically the approval of an Ethereum spot Exchange-Traded Fund (ETF). Recent insights from Bloomberg analyst James Seyffart shed light on significant movements in the Ether ETF arena.

Notably, Grayscale, a prominent player in the cryptocurrency investment space, has filed a prospectus with the U.S. Securities and Exchange Commission (SEC) for the creation of a new Ethereum ETF known as the Grayscale Ethereum Mini Trust. This ETF would be established through a spin-off and distribution from the existing Grayscale Ethereum Trust.

Craig Salm, Grayscale’s Chief Legal Officer, discussed details of its regulatory filings in during an exclusive interview. To enable the launching of the former, Salm stated that Grayscale submitted a registration statement for the Grayscale Ethereum Mini Trust and an Information Statement for the Grayscale Ethereum Trust (ETHE). As part of this process, there would be a “spin-off” where some Ether underlying ETHE shares would seed into the Grayscale Ethereum Mini Trust and distribute ETH shares pro rata to ETHE shareholders pending regulatory approval.

Investors are waiting for the SEC’s decision. The whole approval process consists of several steps, including the effectiveness of registration statements and compliance with regulatory requirements. The crypto community is so much eager to know what is happening with Ether ETFs before May ends in 2024.

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Bitcoin Falls Below $60k In 24-Hours As Altcoins Suffer 30%-50% Drops: Here’s Why

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The crypto market took a major hit in the last 24 hours. Bitcoin fell below $60,000 while altcoins dropped between 30%-50%. This was an extremely rough time for crypto investors. According to analyst Ash Crypto, the reason behind this crash was the Iran drone attack on Israel. During times of war, commodities like oil and gold increase in value, leading to high inflation. High inflation means interest rates are less likely to be cut.

Lower interest rates are good for stocks and crypto. So when people expect inflation to rise due to a war, they sell crypto assets, leading to the crash we saw yesterday. As Bitcoin and altcoins started dropping, investors with leveraged positions got liquidated, forcing them to sell more crypto. This caused even more downward price pressure.

We saw a similar panic selloff during the Covid outbreak in March 2020 and the Russia-Ukraine war. But in both cases, the crypto market rebounded within a month after the initial crash. Rumours suggest Iran gave advance warning of the drone attack to allied countries and groups. This allowed certain players to prepare and take advantage of the upcoming crypto dump.

They likely waited until the weekend when trading volume is lower. Then they started selling, crashing the market. As prices fell, these groups bought up crypto at discounted rates, as they typically do after engineering selloffs. The key takeaway is to avoid leveraged trades which can get liquidated during volatility. Sticking to spot holdings is the safest approach to maximize gains while limiting risk.

The Post-Crash Rebound In Bitcoin Market

Currently, Bitcoin is back above $66,322.37 with strong support around $60,000. If $60,000 doesn’t hold, analysts expect the next major support around $56,000-$58,000 where new institutional investors from ETF purchases accumulated positions.

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Whereas the recent news that the Hong Kong Securities and Futures Commission has approved Hong Kong Bitcoin and Ethereum spot ETFs boosted the rebound in the crypto market, as Bitcoin rose by 3% just after the news. Nevertheless, it is obvious that after every black swan event disrupting crypto, the market has seen huge rallies in the following period. Crypto veterans expect the same explosive upside after this latest shake-up.

Related Reading | Hong Kong Crack Whip: Only BTC & ETH Make the Cut

Ethereum ETF Approval Odds Plummet by 35% Amid Regulatory Doubts

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The cryptocurrency market has been eagerly awaiting the approval of spot Ethereum exchange-traded funds (ETFs) in the United States. However, recent comments from industry insiders paint a bleak picture for those hoping for a quick regulatory green light.

“Pins are dropping,” Jan van Eck, CEO of investment firm VanEck, told CNBC, expressing doubts about the likelihood of the United States Securities and Exchange Commission (SEC) approving spot Ether ETFs in May. Van Eck, whose firm filed for a spot Ethereum ETF alongside ARK Invest, anticipates a probable rejection of their application.

The lack of communication from the SEC regarding the pending roster of Ether ETFs has left many concerned. Van Eck’s sentiments are echoed by CoinShares CEO Jean-Marie Mognetti, who believes approval is unlikely “this side of the year.”

Ethereum ETF Applications Languish

The prolonged silence from the SEC regarding the seven pending applications for spot Ether ETFs has fueled skepticism among industry commentators. Eric Balchunas, a Senior Bloomberg ETF analyst, has revised his odds of approval down to 35%, citing the ongoing “radio silence” between the regulator and fund issuers.

Other analysts, such as James Seyffart, share similar concerns about the lack of interaction from the SEC. Seyffart emphasized that “zero comments/interactions is a bad sign,” suggesting a troubling trend in the approval process.

Despite the uncertainty surrounding Ethereum ETFs, the success of Bitcoin ETFs offers a glimmer of hope for the crypto market. Van Eck highlighted the growing interest in Bitcoin as a “maturing asset,” with significant investor demand still untapped.

VanEck’s spot Bitcoin ETF, known by the ticker HODL, has seen substantial inflows since its launch in mid-January, indicating strong investor appetite for crypto exposure.

While the road to Ethereum ETF approval may be uncertain, the continued growth and acceptance of cryptocurrency assets suggest that opportunities for investment diversification in the digital realm are expanding. However, until regulatory clarity is achieved, investors and industry stakeholders must navigate a landscape marked by uncertainty and regulatory scrutiny.

Ethereum’s Q2 Rally Hinges on SEC’s ETF Approval Amid Regulatory Scrutiny

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Ethereum has been a trending topic among analysts and regulators. Moving forward into the second quarter of the year, ETH appears to be positive in terms of investor sentiment, although regulatory concerns may cloud the market.

According to analyst Ali, in Q2, Ethereum has always had an upward trend. Nonetheless, this positivity is shadowed by the possible late approval of a US Securities and Exchange Commission (SEC) spot Ether exchange-traded fund (ETF). Consequently, this can lead to some turbulence in the market, changing ETH prices direction.

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Adding to the mix of speculations are conflicting opinions from industry experts. While Bloomberg analyst James Seyffart jokingly raised hopes by claiming a 99% chance of a May Ether ETF approval, his colleague Eric Balchunas expressed a more pessimistic view, placing the odds at a mere 25%. Balchunas’ skepticism stems from the lack of communication from the SEC, signaling a bleak outlook for the approval process.

Consensys Addresses Ethereum’s Regulatory Concerns

During these discussions, Consensys, one of the core players within the Ethereum ecosystem, has come up to explain some of the concerns expressed by the SEC on possible fraud and manipulation risks from its PoS. In response to an inquiry from the SEC, Consensys responded extensively and pointed out that Ethereum’s strong architecture would always protect its users from deceitful acts originating outside and transparent consensus protocol.

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Moreover, Consensys argued that Ethereum’s move from proof-of-work (PoW) to a proof-of-stake (PoS) consensus mechanism marked a significant step forward in terms of security and efficiency. This functions by having validators stake their ETH and participate in the block validation process as crucial cogs in the wheel whose role is to ensure that network integrity is maintained under the PoS model. It also ensures it saves energy as well as decentralizes control and manipulation risks.

To begin with, the validation process of Ethereum, which is distributed, and randomized ensures that there is no one entity that can control or influence the network improperly. Random roles are allocated to validators so as to avoid any collusion or tampering with transaction blocks. Additionally, it enhances security by imposing penalties on violators.

However, even in the midst of a swirling debate about whether an Ethereum ETF will be approved for trading, it’s important for regulators to appreciate the solid checks built into Ethereum’s design. Therefore, with good supervision and comprehension, products based on Ethereum may assist in creating a safer and open financial space.

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Bitwise CIO Urges SEC To Delay Ethereum ETF Approval Until December: Report 

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Crypto asset manager Bitwise is advocating for the U.S. Securities and Exchange Commission (SEC) to delay approving a spot Bitcoin exchange-traded fund (ETF) tracking Ether, the native cryptocurrency of the Ethereum blockchain. 

Bitwise, which launched its own spot Bitcoin ETF in January, believes the traditional finance world is still getting up to speed on Bitcoin and may not be ready to properly evaluate an Ether product just yet.

Chief Investment Officer at Bitwise, in an interview with Forbes, Matt Hougan said:

“I feel very confident we’ll get an ether ETF. It’s hard to get financial advisors to think about Ethereum right now. We just went through the Dencun upgrade, which in my mind opens the world to a Cambrian explosion of incredible applications and is a massive deal, and it hasn’t come up once in conversations over the past week, and I’ve been on the road all week.

Challenges In Evaluating Ethereum

Bitwise believes traditional finance is still wrapping its head around Bitcoin as a legitimate asset class. Ethereum’s more advanced use cases as a decentralized computing platform may prove too much for advisors to digest simultaneously. 

Hougan stated that while advisors are beginning to understand Bitcoin is not just used for purchases, the idea of Ethereum being a complete blockchain for building apps with a unique burn mechanism is still a larger conceptual leap.

The crypto veteran believes an Ether ETF approved in December or later would likely see much stronger demand than a product rushed to market in May when several issuers have indicated they may launch competing offerings.

Despite his hesitation on the timing, Hougan made clear that Bitwise plans to be a “big player” in the Ether ETF arena once it feels the market is ready, stating “We intend to get there and file. We just haven’t gotten to it yet.”

While contrarian, Bitwise’s stance highlights the complexity in educating the financial establishment on novel crypto assets beyond Bitcoin. With spot Bitcoin ETF over $2 billion raised since its January debut, Hougan argues successful marketing of an ETH fund will require giving advisors more runway to understand Ethereum’s unique value proposition first.

ConsenSys Advocates for Ethereum ETF Amid SEC Scrutiny, Countering Fraud Concerns

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The race for Ethereum ETFs intensifies as ConsenSys, the­ firm responsible for the wide­ly-used MetaMask crypto wallet, le­nds its support. Addressing regulatory apprehe­nsions from the U.S. Securities and Exchange­ Commission (SEC), ConsenSys’ recent le­tter aims to alleviate conce­rns regarding potential fraud, market manipulation, and the­ security of Ethereum’s proof-of-stake­ consensus model.

Amidst raised scrutiny from the SEC towards Ethere­um, a significant move has arisen. The re­gulatory body intensified efforts to classify Ethe­reum as security through legal actions, including issuing subpoe­nas to U.S. companies as part of an ongoing probe. This deve­lopment casts doubt on the crypto industry’s aspirations for a spot Ethereum ETF, especially after the­ SEC approves several Bitcoin ETFs in January 2024.

The le­tter from ConsenSys directly confronts the­ SEC’s apprehensions. It contends that Ethe­reum’s security measure­s are not merely robust but surpasses those­ of previously approved Bitcoin ETFs. The le­tter highlights Ethereum’s quicke­r block finalization times, a distributed verification proce­dure, high costs associated with potential attacks, and re­duced penalties for accide­ntal errors compared to Bitcoin’s proof-of-work model.

“We urge the SEC to recognize the advanced safeguards inherent in Ethereum’s design, which not only meet but exceed the exemplary security and resilience safeguards underlying Bitcoin-based ETPs that have previously been approved by the SEC,” stated ConsenSys in the letter.

Ethereum ETF Approval Prospects

The Se­curities and Exchange Commission’s position regarding Ethe­reum continues to be a subje­ct of debate within the cryptocurre­ncy realm. As Ethereum and its de­centralized finance (De­Fi) applications gain widespread adoption, establishing cle­ar regulatory guidelines be­comes essential to e­ncourage innovation and bolster investor trust.

Access to an Ethereum ETF, re­gulated and straightforward, could open avenue­s for investors. Price fluctuations of Ethere­um would be transparently tracked, pote­ntially drawing broader interest. This ne­wfound accessibility might further validate cryptocurre­ncies, attracting a more diverse­ investor base.

However, the SEC’s pe­rsistent inquiry into Ethereum’s proof-of-stake­ protocol adds ambiguity to the approval journey. Regulators’ appre­hensions regarding the Ethe­reum Foundation’s potential sway and Ethere­um’s categorization as a security demand re­solution before granting a spot ETF the cove­ted green signal.

The industry awaits the SEC’s response and a more definitive timeline for potential approval. For now, the ongoing dialogue between industry players and regulators remains crucial in establishing a framework that fosters innovation while protecting investors in the evolving cryptocurrency landscape.

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Ethereum ETF Approval Still Viable, Says BlackRock’s Fink

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The head of asset management powerhouse, BlackRock, remains optimistic about the prospects of an Ethereum spot exchange-traded fund (ETF) coming to market, even if regulators deem the world’s second-largest cryptocurrency a security. Larry Fink’s confident stance emerges as the Securities and Exchange Commission nears a May deadline to rule on applications from eight issuers looking to launch such a product.

While the prevailing sentiment among industry observers is that the SEC will reject the Ethereum ETF proposals no matter how it ultimately classifies the digital asset, Fink believes approval remains a possibility. In a recent interview on Fox Business, the BlackRock CEO responded affirmatively when asked if an Ethereum ETF could still go forward under a security designation.

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Fink’s conviction likely stems from the overwhelming success of BlackRock’s spot Bitcoin ETF, the iShares Bitcoin Trust. Branded by the CEO as “the fastest growing ETF in the history of ETFs,” the fund has raked in over $15 billion in assets under just two and a half months on the market.

The ability of the Bitcoin ETF to inject considerable liquidity and transparency into the market appears to have opened Fink’s eyes to the transformative potential of such products tracking other digital assets beyond just Bitcoin. If his firm’s wildly popular Bitcoin offering is any indication, there could be a substantial appetite among investors for convenient, regulated exposure to Ethereum through an exchange-traded fund.

However, not everyone shares Fink’s optimism. Bloomberg analyst James Seyffart has gone on record stating his expectation that the SEC will ultimately reject the current crop of Ethereum ETF applications when the regulator’s ruling comes down in May. While Seyffart acknowledged the need for further review of Fidelity’s recent filing for a staking Ethereum ETF, his overall assessment suggests the proposals face an uphill battle.

Advocates for Ethereum ETFs

But the asset management giants aren’t alone in their advocacy for an Ethereum ETF. Arthur Hayes, former CEO of pioneering crypto derivatives platform BitMEX, has argued forcefully that the success of Bitcoin ETFs essentially paves the way for similar products tied to other digital assets like Ethereum and Solana. Given the lucrative fees such offerings could generate for major financial institutions, Hayes contends banks have a vested interest in seeing them approved.

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Grayscale’s Chief Legal Officer Craig Salm has also voiced support, stating that the SEC’s perceived lack of engagement with issuers on technical details should not be viewed as an indicator of the final outcome. Many of those operational intricacies, Salm reasons, have already been ironed out through the approval process for Bitcoin ETFs.

However, the crypto world holds its breath as the back-and-forth plays out ahead of the SEC’s looming decision. The ramifications of the regulator’s ruling could profoundly impact the acceptance and accessibility of Ethereum for investors through mainstream, regulated investment vehicles.

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Is The SEC Reconsidering Ethereum’s Security Status?

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The crypto world is holding its breath as rumors swirl that the Securities and Exchange Commission may be gearing up to classify Ethereum as a security. According to Fox Business journalist Eleanor Terrett, if Fortune Magazine’s reporting proves accurate, the SEC could be taking a hard look at Ethereum’s proof-of-stake model and its 2014 initial coin offering (ICO).

Back in 2018, the SEC seemed to give Ethereum a free pass, with top official Bill Hinman declaring that neither Bitcoin nor Ether qualified as securities. But newly released emails reveal that this stance came after SEC brass huddled with Ethereum founder Vitalik Buterin to discuss the Ethereum Foundation’s role. Critics argue the SEC may have jumped the gun by greenlighting Ether before fully vetting concerns over its ICO.

That ICO issue is now front and center, with New York Attorney General Tish James citing it as grounds to treat Ether as an unregistered security in her lawsuit against crypto exchange KuCoin. If the SEC follows James’ lead, it could open a Pandora’s box of regulatory headaches for Ethereum and its founders.

The SEC’s deafening silence on approving ETH spot ETFs has some, like Terrett, wondering if Gary Gensler & Co. are deliberately stalling as they sort through any lingering Ether probes behind closed doors. The agency may want all its ducks in a row before giving the green light to funds tracking the second-biggest crypto.

Defense Of Ethereum’s Status

On the flip side, Coinbase chief legal eagle Paul Grewal has gone to bat for Ethereum’s commodity status in a Twitter thread. Grewal insists the SEC has repeatedly endorsed that position over the years, including from Gensler himself before he became chair. He accuses the agency of peddling “misinformation” and argues classifying Ether as a security would defy legal precedent and utterly fail the famous Howey investment contract test.

With tensions ratcheting up, the SEC’s eventual Ether ruling could be a make-or-break moment for the wider crypto market. An aggressive enforcement crackdown targeting Ethereum over its fundraising model could spook innovators and stifle the next wave of blockchain-based finance. However, reaffirming ETH’s commodity status would provide welcomed regulatory clarity as adoption goes mainstream. The sector’s future path lies in the SEC’s hands.

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Ethereum ETF Approval Odds Plummet to 35% Amid SEC Silence

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The anticipation surrounding the approval of Ethereum exchange-traded funds (ETFs) is intensifying as the Securities and Exchange Commission (SEC) remains notably silent on the matter, leaving prospective fund issuers in limbo. According to senior Bloomberg ETF analyst Eric Balchunas, the prospects for Ether ETF approval are dwindling by the day, with chances now pegged at a mere 35%.

Balchunas expressed concerns over the lack of communication from the SEC to ETF issuers, citing it as a significant red flag just 73 days shy of the final deadline. He emphasized that the SEC’s feedback is crucial for issuers to address any concerns and navigate through the approval process effectively.

Moreover, Balchunas hinted at a deliberate silence from the SEC, speculating that SEC Chair Gary Gensler’s stance on Ethereum as a security might influence the decision-making process. Gensler’s previous scrutiny and political backlash surrounding Bitcoin ETFs and Grayscale’s SEC court loss in August 2023 could further complicate the approval of Ethereum-based products.

Ethereum’s Regulatory Outlook

The analyst’s observations suggest a departure from the dynamics observed during the Bitcoin ETF race, creating an atmosphere of uncertainty and apprehension among market participants. Despite industry optimism stemming from discussions between crypto giants Coinbase, Grayscale, and SEC officials, doubts loom large, fueled by experts’ cautious assessments.

Matt Corva, General Counsel at Consensys, even suggested that an Ethereum ETF denial could serve as a positive development in the long run, potentially eliminating regulatory obstacles for other cryptocurrencies.

Balchunas and other industry insiders also pointed to significant upcoming events, such as the U.S. Presidential election, as potential catalysts for regulatory shifts. The outcome of the election could reshape the regulatory landscape and influence the SEC’s approach towards Ethereum ETFs.

Nevertheless, amidst the uncertainty, Balchunas remains optimistic about the eventual approval of a spot Ether ETF. He believes it’s not a question of if, but when, underscoring the evolving nature of regulatory processes in the crypto sphere.

As stakeholders eagerly await further developments, the Ethereum community remains vigilant, recognizing that regulatory clarity is crucial for broader market participation and the continued maturation of the crypto ecosystem.