A federal judge ruled that the U.S. Securities and Exchange Commission must pay legal costs for Debt Box, a Utah-based crypto company the SEC brought a suit against, finding that the regulator had committed a “gross abuse of power” in its efforts to secure a temporary restraining order.
Grayscale Submits Revised Application For Ethereum Spot ETF – What’s New?
Asset management firm Grayscale Investments has updated its application for an Ethereum spot ETF (exchange-traded fund) with the United States Securities and Exchange Commission (SEC).
Ethereum Spot ETF Case Just As Solid As Bitcoin’s, Grayscale Argues
According to a recent post on X by Craig Salm, Grayscale’s chief legal officer, the asset management firm has revised its 19b-4 form for an Ether spot ETF. Salm claimed that this move was “important” in an effort for Grayscale to list and trade shares of its Ether Trust on the New York Stock Exchange (NYSE) Arca.
The chief legal officer stated in his post that investors “want and deserve access” to Ethereum via a spot exchange-traded product, likening the situation to the Bitcoin ETF story. “We believe the case is just as strong as it was for spot Bitcoin ETFs,” Salm said.
The asset manager is amongst the numerous firms looking to issue the first Ethereum spot ETF in the United States, having filed an application with the SEC on October 10, 2023. However, these ETF applications have faced delays multiple times, with the most recent coming against BlackRock’s filing on March 4, 2024.
As a result, the likelihood of the SEC approving an Ethereum spot ETF has taken a nosedive in recent weeks. Once-optimistic Bloomberg ETF expert Balchunas even revealed in his latest analysis that the ETH funds now have only a 35% chance of approval.
SEC Chairman Faces Pressure Over Crypto Approval
Two US senators of the Democrat party, Sens. Laphonza Butler of California and Jack Reed of Rhode Island, have urged the SEC chairman to avoid approving crypto investment products. In a letter dated March 11, the lawmakers, who are also members of the Senate Banking Committee, asked the Commission to limit future crypto ETF applications.
The success of the BTC spot products clearly ruffling some feathers on the Hill. @SenatorJackReed and @Senlaphonza write to the @SECGov urging:-no further ETPs for other tokens-make life difficult (i.e. examinations/reviews) for brokers and advisers that recommend BTC ETPs pic.twitter.com/enxdumC02N
— Alexander Grieve (@AlexanderGrieve) March 14, 2024
Following the approval of 11 Bitcoin spot ETFs in January, the attention of the crypto public has somewhat turned to whether the SEC will do the same for the Ethereum versions. However, this latest letter from the senate seems to further hurt the chances of an ETH ETF approval.
A part of the letter read:
Retail investors would face enormous risks from ETPs referencing thinly traded cryptocurrencies or cryptocurrencies whose prices are especially susceptible to pump-and-dump or other fraudulent schemes,” they said. “The Commission is under no obligation to approve such products, and given the risk, it should not do so.
As of this writing, the price of the Ethereum token stands at $3,731, reflecting a 1.2% increase in the past day.
Meme Coins Going Legit Is the Worst Thing for Meme Coins
Institutions like Franklin Templeton are taking meme coins increasingly seriously this cycle. But will these joke-y projects run afoul of regulators?
Democrats Ask SEC’s Gensler to Block Approval of More Crypto ETPs
Senators say that retail investors face “enormous risks” from such products because thin order books for some cryptocurrencies.
A $300M Ponzi Scheme That Targeted Latinos Falsely Claimed to Buy Crypto, SEC Says
The U.S. Securities and Exchange Commission sued 17 individuals tied to an alleged Ponzi scheme that took in $300 million from over 40,000 victims.
Bitcoin Whale Books $217 Million Profit After BTC Broke $73,000
The ongoing Bitcoin surge is proving lucrative for a crypto whale. According to Lookonchain data on March 13, one large BTC address has raked in $217 million in profits after prices rose above $73,000 earlier today. Profits would have even been higher because, over the past, the whale has been unloading large amounts via Binance, the world’s largest crypto exchange.
This development follows Bitcoin’s solid growth. Since October 2023, the coin has been steadily rising, fueled by supportive fundamental events, including interest rate expectations from the United States Federal Reserve and the approval of spot Bitcoin exchange-traded funds (ETFs) by the United States Securities and Exchange Commission (SEC).
BTC Is Rallying, Whale Books $217 Million Profit
Coupled by bullish holders, expecting more gains ahead and after halving, the coin has been rapidly inching higher, exceeding expectations. The previous all-time high of around $72,800 was broken on March 13 when the coin broke higher, rallying above $73,000.
This expansion comes after a strong price correction in the New York session on March 12. However, with confidence still in the market, prices rallied strongly during the Asian market, pushing prices above $72,800 to as high as $73,700.
While traders clipped fluctuations, the anonymous whale took full advantage of the rally after months of HODLing. Lookonchain data shows that the whale began accumulating Bitcoin on August 24, 2023, at an average price of $32,854, before withdrawing and depositing 4,300 BTC at an average price of $3,534.
The address currently controls 4,300 BTC worth over $313 million and is $217 million in profits. The whale withdrew 100 BTC worth $7.22 million via Binance on March 13, possible to book profits.
BlackRock And Wall Street Driving Bitcoin Demand
Whether the whale will withdraw more and consolidate profits remains to be seen. However, considering the overall optimism across the market, the address could register more gains.
The crypto community expects the deluge of capital from institutions to continue in the weeks ahead. So far, BlackRock, through its IBIT spot Bitcoin exchange-traded fund (ETF) product, controls over 205,000 BTC. There is more demand from other issuers like Fidelity and Ark Invest.
Beyond that, the rising demand from pension funds, mainly in the United States, would further drive prices higher, lifting HODLers’ valuation. This week, the business intelligence firm MicroStrategy said it was also buying more coins after raising $800 million from investors.
Judge Rules Against Gemini, Genesis Motion to Dismiss SEC Case Against Earn Product
A New York judge has ruled that the U.S. Securities and Exchange Commission (SEC) case against crypto lender Genesis and crypto exchange Gemini will be allowed to move forward, denying the two defendants’ motions to dismiss in a Wednesday court filing.
XRP To Skyrockets To $1.33 Amidst April Rally: Analysts
XRP has demonstrated significant strength for a while now, securing its spot as one of the best-performing cryptocurrency assets by market cap, after surging to its highest level since November.
XRP To Yield Gains From April Rally
The crypto community is buzzing about XRP’s latest price spike as several analysts predict the surge will be the start of the eagerly anticipated rally. With a 50% rise from $0.50 on Monday, March 11, to a weekly high of $0.75, it got off to a great start this week.
Cryptocurrency analyst and trader Dark Defender has shared his latest optimistic forecast for XRP with the community on X (formerly Twitter). Dark Defender highlighted that the crypto asset “broke out” from a strong resistance on Tuesday, just as he expected.
XRP broke out from a 6-year-long symmetrical triangle, which denotes a phase of consolidation with prices bouncing between the lower support line and the upper resistance.
According to the analyst, the monthly time frame clearly shows that the much-anticipated move has begun. Also, the daily time frame “confirms that the massive resistance level of $0.6649 has been broken.”
He further added that for the “weekly and monthly time frame, $0.6649 will possibly be confirmed.” As a result, Dark Defender underscored that his targets are now “closer to the mid-resistance around the $1.33” price mark. Meanwhile, he has placed his “Fibonacci price targets at $1.88 and $5.85 in the upcoming weeks.”
The post read:
XRP had the break-out yesterday, as we expected. In the Monthly Time Frame, it is obvious the move has started and the huge Resistance of $0.6649 has been confirmed to be broken in the Daily. $0.6649 will be Confirmed for the Weekly and Monthly Frames. Our targets are closer now to $1.33 mid resistance, and $1.88 and $5.85 Fibonacci targets in the upcoming weeks.
As a result, the expert has urged the community to watch out for “solid strikes” in the coming week. In addition, he noted that “April will be hot,” suggesting significant gains throughout the month.
Presently, the digital asset gradually gaining strength trading at $0.6897, indicating a weekly increase of over 12%. However, its market cap and trading volume are both down by 1.58% and 57% in the last 24 hours.
The Asset Does Not Belong In Your Portfolio
Despite XRP’s latest rally, crypto expert Jason Pizzino has claimed that investing in the token might not be a smart move. Jason Pizzino has issued a warning to the community never to consider adding XRP to their portfolio.
He claims that “even though it climbs this cycle, it still “needs to rise more than 2600%” in value to match Bitcoin‘s peak of 2017. “It achieved 500% in the previous cycle and is now only 30% away from shattering the SEC Lawsuit low,” he added.
Pizzino believes that the major advantage of influencers discussing XRP is that there is still a “large audience interested” in knowing about the project and “optimistic price projects that never appear.”
Terraform Labs Allowed to Hire Law Firm Dentons in Bankruptcy Case by U.S. Court: Reuters
A U.S. court has allowed Terraform Labs to hire law firm Dentons to defend the company in a lawsuit brought against it by the U.S. Securities & Exchange Commission (SEC) in Jan. 2024.
SEC Orders First Trust-SkyBridge to Declare its Bitcoin ETF Application Abandoned
First Trust was one of the first to file for a BTC ETF, and was rejected by the SEC in January 2022.
How an Appeals Court Ruled on an Aspiring Class-Action Lawsuit Against Binance
A federal appeals court ruled last week that Binance needs to face a putative class-action lawsuit from a group of U.S.-based crypto investors who allege the exchange allowed them to buy and trade unregistered securities in the form of certain cryptocurrencies. The ruling doesn’t make a determination on whether the tokens are indeed securities or not, but it’s significant in broader securities cases nonetheless.
Thailand’s SEC Greenlights Investment From Institutional and Wealthy Individuals in Crypto ETFs
Earlier this year, the regulator had denied permission to trade bitcoin ETFs.
Cloudy Future For Ethereum ETFs – What’s Casting Doubt On Their Fate?
The fervor surrounding the eagerly awaited Ethereum spot Exchange-Traded Fund (ETF) has hit a roadblock as regulatory silence between the US Securities and Exchange Commission (SEC) and asset managers raises doubts about the imminent approval.
Regulatory Riddles Surrounding Ethereum’s Fate
Despite the crypto market’s optimistic outlook for Ethereum’s spot ETF, the SEC’s noticeable lack of commentary has set off alarm bells. Eric Balchunas, Bloomberg’s senior ETF analyst, has flagged this radio silence as a “negative sign,” pointing out that the SEC had previously commented on Bitcoin spot ETFs.
The absence of dialogue is viewed as a factor diminishing the approval odds each passing day, contributing to an air of uncertainty within the cryptocurrency community.
Normally I’d say this was good sign but as far as I know the Staff has not given any comments yet to the issuers, which is not a good sign as we past when they gave comments on btc ETFs. Further, there’s no court loss hovering over. And the correlations bt futures and spot isn’t… https://t.co/AVMhL1QKGf
— Eric Balchunas (@EricBalchunas) March 8, 2024
Adding a layer of complexity is the SEC’s ambiguous stance on Ethereum’s status. SEC Chair Gary Gensler’s recent remarks on whether Ethereum should be considered a security or commodity have created a foggy landscape. This uncertainty becomes a pivotal factor as Ethereum’s potential spot ETF awaits regulatory approval.
Unique Position In The Crypto Ecosystem
Investors, eager for a diverse range of investment opportunities beyond Bitcoin, have turned their attention to Ethereum. The second-largest cryptocurrency’s appeal lies in its multifaceted use cases, unlike Bitcoin’s primary function as a store of value.
Ethereum’s versatility, particularly highlighted by its upcoming “Dencun” upgrade on March 13, promises to enhance transaction processing capacity, reduce costs, and foster a more dynamic ecosystem with varied applications.
The correlation dynamics between Ethereum spot and futures ETF are under scrutiny, with indications that it is weaker compared to Bitcoin. This divergence in correlation adds a layer of pessimism to the market sentiment, prompting investors to carefully navigate the uncertainties surrounding Ethereum’s regulatory approval.
Ethereum: Market Dynamics And Institutional Interest
As Ethereum gains momentum, institutional heavyweights like BlackRock and Grayscale have expressed interest in Ethereum spot ETFs, mirroring the trend seen with Bitcoin.
Investors, sensing a potential approval on the horizon, have begun shifting their focus from Bitcoin to Ethereum.
This shift is not only influenced by speculation but also by Ethereum’s fundamental strengths, including ongoing network upgrades and a vibrant decentralized finance (DeFi) ecosystem.
Contrary to earlier predictions, Standard Chartered’s foresight places Ethereum’s ETF approval by May 23. This timeline aligns with expectations that the SEC might follow a similar pattern to the drawn-out process witnessed with Bitcoin.
The research suggests a trajectory of cautious deliberation, leading to a probable green light.
Ether’s Market Surge And Altcoin Potential
In the midst of regulatory uncertainties and market speculations, Ethereum’s price has recently broken through the $4,000 mark, reflecting investor confidence.
This surge is supported by Ethereum’s robust fundamentals, ongoing upgrades, and its pivotal role as a bellwether for altcoin potential.
Ethereum’s price trajectory and market dominance are becoming increasingly intertwined with the broader cryptocurrency landscape, shaping the narrative of its imminent spot ETF approval.
Featured image from Pixabay, chart from TradingView
Shapeshifting Justice: The SEC’s Weakest Case Yet
Nigeria’s SEC Updates Guidelines for Crypto Firms in Bid to Stop Criminal Activity: Report
Nigeria’s government has started a fresh crackdown on crypto firms, reportedly blocking access to several, including Binance, Coinbase and Kraken.
Binance.US Slashed Two-Thirds of Its Workforce as Revenue Plunged After SEC Lawsuit: Court Transcript
“The allegations of the SEC severely undermined institutional trust in our platform,” Binance.US executive Christopher Blodgett said during a deposition.
ShapeShift Settles SEC Charges It Sold Crypto Securities
The federal regulator instituted a cease-and-desist against ShapeShift, which dissolved its U.S. crypto exchange in 2021.
SEC Pushes Back Decision on BlackRock, Fidelity’s Ether ETF Applications
The SEC wants to know if the applications for ETFs that hold Ethereum’s ether (ETH) are supported by the same arguments that led to the approval of spot bitcoin ETFs.
Binance.US Not Being Totally Forthcoming, SEC Complains in New Filing
The SEC and Binance.US filed a joint status report detailing ongoing discovery efforts on Tuesday.
If Bitcoin Clears $70,000, How Fast Will Ethereum Ease Past $5,000?
As Bitcoin surges towards its all-time high (ATH) of nearly $70,000, analysts are closely watching Ethereum, the world’s second-largest cryptocurrency, wondering how quickly it will follow suit and break its record ATHs of approximately $5,000 printed in late 2021.
How Will Ethereum React When Bitcoin Breaks Above $70,000?
One analyst, posting on platform X, highlights the difference in the two coins’ positions compared to the last time Bitcoin broke above 2017 highs of $20,000 in December 2020. Then, Ethereum was trading at $600, a full 57% below its previous ATH of about $1,400.
As Bitcoin nears its record peak of around $70,000 registered in December 2021, Ethereum is approaching $4,000. However, the difference between then and now is that ETH is about 36% shy of its ATH of around $5,000.
The question in the analyst’s mind is, considering historical performance, how fast ETH will ease past $5,000. When Bitcoin broke above $20,000 in late December 2020, the analyst notes that it took approximately two months for ETH to sweep past $1,400 and record new highs.
The boom after this breakout lifted ETH to around $5,000, accelerated mainly by retail activities cycling around decentralized finance (DeFi) and non-fungible token (NFT) minting.
Looking at the Ethereum price action in the daily chart, it is clear that buyers are in control. ETH prices, CoinMarketCap data reveals, are up roughly 7% in the past 24 hours and 15% in the previous week. However, how quickly ETH might repeat the prior 2020-2021 feat remains to be seen.
Exploring ETH’s Chances
Like in the past, the Ethereum price action benefits from the Bitcoin expansion. The revival in Bitcoin prices has seen capital flow to Ethereum, priming its broader ecosystem comprising DeFi and NFT protocols. DeFiLlama data shows that Ethereum manages over $56 billion worth of assets.
Notably, almost all top DeFi protocols in Ethereum, including Lido, Maker, Uniswap, and EigenLayer, have posted strong inflows in the past day, week, and month.
Aside from market-related factors, Ethereum prices are also steadied by hopes around the eventual approval of a spot Ethereum exchange-traded fund (ETF). BlackRock is among the leading asset managers to file with the United States Securities and Exchange Commission (SEC).
However, the agency postponed a ruling on BlackRock’s application for a spot Ethereum ETF, citing concerns about the network’s new proof-of-stake consensus mechanism. The SEC expressed worries that staking, a core aspect of proof-of-stake, could create opportunities for manipulation.
The clear reservation regarding proof-of-stake cast a shadow on Ethereum’s near-term outlook despite the current uptick in prices. Still, the community finds relief realizing that the Commission rejected approving a spot Bitcoin ETF for roughly ten years before January 2024.