GM friends.
It’s been an absolutely wild week for Etheruem, and it might get even crazier today.
So pour up a coffee and take a seat, because here comes your spot ETH ETF update. ☕️📰
Here’s what’s in today’s issue:
- David shares his thoughts on ETH ETF approvals coming today, Trump accepting crypto donations, ETH and BTC ETPs coming to the London Stock Exchange, US BTC ETFs picking up steam & Kelp receiving a $90M valuation.
- Erik has an article on Bitcoin DeFi: Lending, borrowing, staking and more.
- In case you missed it by Rebecca.
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Spot ETH ETF Approvals Coming Today?
For the last few months, the market has been pessimistic about the odds of the SEC approving the stack of pending spot ETH ETF applications for trading. The first SEC approval deadlines are scheduled for today and tomorrow, for VanEck’s and Ark Invest’s applications.
But no one’s been getting too excited, as the agency has just been sitting on the applications, not communicating with the issuers, and not making any forward progress. Thus, Bloomberg analysts Eric Balchunas and Nate Geraci had pegged the odds of approvals at 25%.
But on Monday afternoon, Balchunas and Geraci dropped a bombshell, stating that they now believe the odds for approvals to be 75%, due to positive “chatter” at the SEC, as well as the agency asking the issuers to update some of their application documents.
Ethereum absolutely ripped on the news, going from $3,100 to $3,850, and added a cool $70 billion in market cap, within the span of 24 hours.
So just to drill in on the evidence again, there’s two reasons for why the analysts now believe we will likely see approvals.
First, some unknown source at the SEC is apparently telling NYSE exchange officials that the agency will likely be approving the applications. And second, the SEC requested the exchanges to update their 19b-4 filings, which cover various rules around how the products are traded. The reasoning goes that the SEC wouldn’t ask for updated documents if they were planning on rejecting the applications.
Just to get technical for a minute, but according to Balchunas and Geraci, it is possible that we might see the SEC approve the updated 19b-4s this week, and then the full applications at a later date. But if the 19b-4s do get approved, then it’s very likely that the full approvals will happen at some point in the future.
Fingers crossed that we get full approvals today and tomorrow.
Why the 180 Turn from the SEC?
The more interesting question is why has the SEC made this sudden 180 on the spot ETH applications?
The prevailing theory is that it’s political. Rumors are circulating that Biden campaign officials and Democrats in general are realizing they’ll lose critical votes this November if they continue being anti-crypto.
Indeed, we’ve seen a stark shift from the U.S. Democrats over the last two weeks, going from anti to either…
Hi! My name is Lark Davis!
I’m a cryptocurrency investor with years of experience and I’ve been making consistent profits in the crypto space.
I’m passionate about helping others do the same, so I run multiple educational channels on crypto investing.
