Mitrade Insights is dedicated to providing investors with rich, timely and most valuable financial information to help investors grasp the market situation and find timely trading opportunities.

2021

Best News & Analysis Provider

FxDailyInfo

2022

Best Forex Educational Resources Global

International Business Magazine

Insights

News

Economic Indicator

Breaking: SEC approves spot Ethereum ETFs after shocking U-turn

Source Fxstreet

The US SEC approved spot ETH ETF applications on Thursday after initial delays.
SEC surprisingly began to engage with issuers on Monday after weeks of silence.
Ethereum may set a new all-time high as Bitcoin did after ETF approval.

The US Securities & Exchange Commission (SEC) approved 19b-4s filings of spot ETH ETFs on Thursday after several weeks of silence towards issuers.

SEC approves spot ETH ETF amended filings

The SEC approved 19b-4s filings of spot ETH ETFs on Thursday after asking exchanges to submit amended filings on Monday. The approval comes after weeks of silence from the SEC towards ETF applications.

The SEC would also have to approve S-1s applications — which may take some weeks — before the ETFs officially launch.

Here's the link for everyone asking https://t.co/mzOPL1EZqC pic.twitter.com/4ZRQY0Y6vk
— James Seyffart (@JSeyff) May 23, 2024

After the SEC approved spot Bitcoin ETFs in January, many expected the agency also to greenlight applications for spot ETH ETFs. However, the SEC reportedly refused to engage with issuers, postponing applications on several occasions. Unlike its approach with spot Bitcoin ETFs, where it was in constant contact with issuers, the SEC's silence led many to believe it wouldn't approve spot ETH ETFs. As a result, Bloomberg analysts Eric Balchunas and James Seyffart tagged approval odds of the ETFs at 25%.

In addition, Ethereum infrastructure provider Consensys court filings showed that the SEC was considering declaring ETH as a security after launching investigations into Ethereum-related firms.

However, the SEC surprisingly began engaging with issuers on Monday, asking exchanges to submit amended 19b-4s filings. As a result, Balchunas and Seyffart increased their approval odds to 75%, terming the move as largely political and possibly spurred by US President Joe Biden after Presidential candidate Donald Trump's pro-crypto speech.

What the Ethereum ETF approval mean for investors

Considering Bitcoin's run to a new all-time high and the general market rally following its ETF approval in January, several experts predict spot ETH ETF will have a similar effect. Specifically, many expect DeFi tokens to be among the largest gainers alongside Ethereum in the next couple of weeks.

Matthew Sigel, Head of digital assets at Van Eck, predicts that yield across staking protocols would skyrocket as ETH leaves the ecosystem into these ETFs. However, this could also have security consequences for the broader Ethereum ecosystem. Some analysts have predicted that spot ETH ETFs inflows would be tiny compared to Bitcoin as most investors won't want to miss out on staking rewards. A recent analysis by CCData sheds light on this take:

"Hypothetically, if you had opened a 1000 ETH position on January 1st, 2023 with an ETF provider, instead of holding native Ether, which accrues staking rewards, you would have missed out on gains of over $200,000."

(This is a developing story and will be updated as we get more information.)

Disclaimer: For information purposes only. Past performance is not indicative of future results.

Recommended Articles

Big Tech's $800 billion AI bill faces its first real test — free cash flow is the judge Alphabet and Microsoft report after the close on October 28, Amazon on October 29, with hyperscaler AI capex running near $800 billion a year. Meta's negative free cash flow and 9.40% drop on October 22 was the warning; this week's prints decide whether cloud growth and backlog can pay for the buildout. Here are the consensus numbers, the free-cash-flow table and the two-sided test.

Author Irene Q.

Oct 26, Mon

Alphabet and Microsoft report after the close on October 28, Amazon on October 29, with hyperscaler AI capex running near $800 billion a year. Meta's negative free cash flow and 9.40% drop on October 22 was the warning; this week's prints decide whether cloud growth and backlog can pay for the buildout. Here are the consensus numbers, the free-cash-flow table and the two-sided test.

Anthropic files for a $2 trillion IPO — the $80.7 billion loss is the decoy, the $450 billion compute bill is the risk Anthropic publicly filed its S-1 on October 26, revealing $16.29 billion of first-half revenue (+1,304% year over year) and a $80.7 billion net loss — of which $72.4 billion is a non-cash convertible-note charge. The real number is the $450 billion of signed, mostly non-cancelable compute commitments. Here is what the filing says, why NVDA, ARM and MU are the tradeable read-through, and the conditions that decide whether the AI trade passes its first public valuation test.

Author Irene Q.

Oct 27, Tue

Anthropic publicly filed its S-1 on October 26, revealing $16.29 billion of first-half revenue (+1,304% year over year) and a $80.7 billion net loss — of which $72.4 billion is a non-cash convertible-note charge. The real number is the $450 billion of signed, mostly non-cancelable compute commitments. Here is what the filing says, why NVDA, ARM and MU are the tradeable read-through, and the conditions that decide whether the AI trade passes its first public valuation test.

Fed October Rate Decision Preview: Rate Hike Pause Has Become Consensus, How Will US Stocks, Dollar, and Gold React?The Federal Reserve will announce its October interest rate decision at 14:00 Eastern Time on October 28, and Fed Chair Warsh will hold a press conference at 14:30. Markets currently wide

Author TradingKey

Oct 27, Tue

The Federal Reserve will announce its October interest rate decision at 14:00 Eastern Time on October 28, and Fed Chair Warsh will hold a press conference at 14:30. Markets currently wide

Bitcoin is back above $80,000 — but 75% of the bounce was shorts, not buyers Bitcoin trades at $80,669, back above the $80,000 line after touching $79,145 on October 24. But 75.4% of the last 24 hours of futures liquidations were shorts, CME open interest fell 36,545 BTC in October, and spot ETFs lost $773.5 million on October 22-23. Price is up; positioning is down. Here is why the bounce is a squeeze, and the four things that would make it real.

Author Suzie

Yesterday 05: 54

Bitcoin trades at $80,669, back above the $80,000 line after touching $79,145 on October 24. But 75.4% of the last 24 hours of futures liquidations were shorts, CME open interest fell 36,545 BTC in October, and spot ETFs lost $773.5 million on October 22-23. Price is up; positioning is down. Here is why the bounce is a squeeze, and the four things that would make it real.

Brent's $115 front month sits $4.6 above January — the $14 spread to WTI is the supply-risk premium December Brent trades at $115.29 while January is $110.71, a $4.58 backwardation. The December Brent-WTI spread is $14.2, versus a $3-5 normal. That gap, not the headline, is where the Middle East supply risk is priced. Here is what the curve says, why the December contract's expiry on October 30 will mechanically cut the headline by $4.6, and the 108.81 neckline that decides the next move.

Author Irene Q.

Yesterday 06: 21

December Brent trades at $115.29 while January is $110.71, a $4.58 backwardation. The December Brent-WTI spread is $14.2, versus a $3-5 normal. That gap, not the headline, is where the Middle East supply risk is priced. Here is what the curve says, why the December contract's expiry on October 30 will mechanically cut the headline by $4.6, and the 108.81 neckline that decides the next move.

Popular Symbols