SEC Could Approve All Ethereum ETFs Concurrently

U.S. Securities and Exchange Commission (SEC) is reportedly gearing up to approve several exchange-traded funds (ETFs) tracking Ethereum futures concurrently. This move signifies a potential shift in the regulatory stance towards digital asset-based ETFs.

Asset management firm Volatility Shares has announced plans to debut its ETF, which tracks futures linked to Ethereum, on October 12. This could potentially mark it as the inaugural Ethereum futures ETF in the U.S. In a parallel development, Valkyrie, another prominent asset management entity, is eyeing an early October launch for its BTC-Ethereum ETF.

The SEC has witnessed a deluge of applications since July, with over 16 ETF proposals, either solely for Ethereum or combined with Bitcoin, currently in the regulatory pipeline. Contrasting its 2021 approach, where the SEC directed firms to retract similar applications, the regulatory body has refrained from issuing such directives this year. This change hints at a more accommodating regulatory environment for such ETFs.

Distinct from direct cryptocurrency investments, a crypto futures ETF channels its investments into futures contracts pegged to the prices of digital assets like Bitcoin or Ethereum. The ETF sector underscores the importance of the first-mover advantage. To illustrate, ProShares’ Bitcoin futures ETF, launched in October 2021, amassed over $1 billion in assets under management, while Valkyrie’s analogous product, introduced shortly after, garnered close to $28 million.

Major financial institutions, including Fidelity and BlackRock, are eagerly awaiting the SEC’s decision on the approval of a spot Bitcoin ETF. Echoing the sentiment around concurrent Ethereum futures approvals, Cathie Wood, Chief Investment Officer and Portfolio Manager at ARK Investment Management LLC, predicted on August 7, 2023, that the SEC might greenlight multiple spot Bitcoin ETFs simultaneously. Wood shared this perspective during her Bloomberg interview.


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Elon Musk Endorses Pro-Crypto Republican Presidential Candidate Vivek Ramaswamy

Elon Musk, the CEO of Tesla and SpaceX, publicly endorsed Vivek Ramaswamy, the emerging United States Republican presidential candidate. On August 18, 2023, Musk responded to a post by Tucker Carlson on Twitter, stating, “He is a very promising candidate.” Carlson’s original tweet even highlighted Ramaswamy as the “youngest Republican presidential candidate ever” and emphasized his significance in the current political landscape.

Vivek Ramaswamy has been in the spotlight for his candid opinions on digital finance and cryptocurrencies. His stance appears to diverge sharply from current authorities, especially the SEC chairman Gary GenslerThe SEC has taken action against prominent cryptocurrency firms including Coinbase, Kraken, Binance, and Gemini at the chairman’s direction. This strident regulatory stance has even prompted Coinbase’s CEO to think about moving the business outside of the United States.

Ramaswamy’s pro-crypto attitude is evident in his advocacy for a robust crypto environment within the United States. Notably, during the Bitcoin 2023 conference in Miami, he announced his campaign’s decision to accept Bitcoin contributions. This move positions him as the second presidential contender in the 2024 U.S. election race to endorse BTC donations, following closely behind Robert F. Kennedy Jr.

Ramaswamy’s political path has encountered some difficulties, nevertheless. He is now dealing with legal problems resulting from his prior association with Strive Asset Management, a business he co-founded.  Despite these hurdles, his rising popularity has brought him into proximity with fellow Republican Ron DeSantis, the Bitcoin-friendly Governor of Florida.

The increasing integration of cryptocurrencies in the political arena underscores their growing significance. 44% of American voters either own or are contemplating owning digital assets, according to a survey done last year. Given the pro-crypto positions of top Republican candidates like Ramaswamy and DeSantis, the result of the next 2024 U.S. elections might have a significant effect on the cryptocurrency sector.

Musk’s endorsement, along with the shifting political dynamics and existing regulatory environment, indicates that the 2024 elections might play a crucial role in shaping the trajectory of cryptocurrencies in the U.S.

Image source: Shutterstock


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FTX Founder Sam Bankman-Fried Pleads for a Weekday Release Ahead of October Fraud Tria

The cryptocurrency world is abuzz with the latest developments surrounding FTX’s founder, Sam Bankman-Fried, commonly referred to as SBF. In a move that has captured the industry’s attention, SBF has made a formal plea for weekday release from his current confinement at the Metropolitan Detention Center in Brooklyn, New York. This request follows closely on the heels of a federal judge’s decision to revoke his substantial $250 million bail, a decision rooted in allegations of witness tampering.

The primary rationale behind SBF’s request hinges on the overwhelming volume of case-related documents. The defense team has been inundated with a massive trove of evidence, notably including three-quarters of a million pages of Slack communications. Given the constraints of his confinement, SBF argues that a thorough review of these documents is virtually impossible. With the clock ticking down to his fraud trial in October, the pressure to process this information is palpable.

The charges levied against the FTX founder are nothing short of grave. He is embroiled in allegations of orchestrating a sophisticated fraud scheme, purportedly allowing him unauthorized access to a staggering sum—billions of dollars from FTX customer accounts—for personal enrichment. Yet, in the face of these daunting accusations, SBF remains steadfast in proclaiming his innocence.

On the prosecution’s side, they’ve adopted a resolute stance. Their argument is clear-cut: if SBF intends to base his defense on the premise of legal advice he previously received, he must be transparent about the specifics of this advice and its origins. While they’ve extended an offer to furnish SBF with the requisite documents on hard drives, they’ve also highlighted the logistical challenges, noting the impossibility of storing all the information on a single laptop.

Further complicating matters, there were whispers of potentially relocating SBF to an upstate detention facility, one equipped with internet services. However, these murmurs were swiftly quashed by prison officials, leaving the defense’s request hanging in the balance.

As the global crypto community awaits further developments, this case underscores the intricate legal landscape of cryptocurrency regulations. The outcome of SBF’s trial, given the high-profile nature of the accused and the weight of the evidence, including Caroline Ellison‘s diaries, promises to have far-reaching implications for the industry.

Image source: Shutterstock


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