On May 23, the U.S. Securities and Exchange Commission (SEC) gave the green light to applications from major exchanges like Nasdaq, CBOE, and NYSE to list exchange-traded funds (ETFs) tied to the price of Ether. This move has the potential to open the doors for these products to start trading later this year, pending final approvals from the ETF issuers themselves.

BOOM!! APPROVED! There it is. The SEC just approved spot #Ethereum ETFs. What a turn of events. It's really happening.h/t @PhoenixTrades_ pic.twitter.com/KQ39mDyCbT

— James Seyffart (@JSeyff) May 23, 2024

The cryptocurrency industry was caught off guard by this decision, as it had been largely expecting the SEC to reject the filings until Monday. The approval marks a significant milestone for the nine issuers, including big names like VanEck, ARK Investments/21Shares, and BlackRock, who are now one step closer to launching spot Ether ETFs following the SEC’s approval of spot Bitcoin ETFs in January.

According to a report by Reuters, Andrew Jacobson, vice president and head of legal at 21Shares, described the moment as “exciting” and “a significant step” towards getting the products to market. The SEC’s apparent change of heart has left many in the industry puzzled, with the regulator’s chair, Gary Gensler, declining to comment on the decision.

The approval process is not yet complete, as the ETF issuers still need the SEC to approve their registration statements detailing investor disclosures. While there is no set timeline for this, industry participants believe that many issuers are ready to launch once they receive the green light. However, the SEC’s corporate finance division is expected to request changes and updates in the coming days and weeks.

Going to add here. Typically this process takes months. Like up to 5 months in some examples but @EricBalchunas and I think this will be at least somewhat accelerated. #Bitcoin ETFs were at least 90 days. Will know more soon.

— James Seyffart (@JSeyff) May 23, 2024

At the time of writing (9:23 a.m. UTC on May 24), ETH is trading at around $3,655, down 4.6% in the past 24-hour period.

Source: TradingView

As cryptocurrency analyst Michaël van de Poppe explained earlier today, the Ether price did not surge following the news that the SEC had approved 19b-4 filings for spot Ether ETFs from the sponsor changes because this approval had already been priced in. In fact, many in the crypto space were expecting that such approval would enable these ETFs to start trading as early as this week or next week, and when people realized that there could be several more months of waiting before the launch of these ETFs happens, there was disappointment, which seems to have led to some selling pressure.

Primary question:Why is the market not moving for #Ethereum?Well, the approval was already priced in due to the strong 20% move.It's a waiting time until the listing takes place, and then the inflow will provide whether there's a strong continuation upwards.

— Michaël van de Poppe (@CryptoMichNL) May 24, 2024

The eventual approval of US-listed spot Ether ETFs would be another positive development for the cryptocurrency industry, which has been making significant strides towards mainstream finance. The recent passage of a landmark bill in the U.S. House of Representatives seeking to provide regulatory clarity for cryptocurrencies, coupled with the UK regulator’s approval of listed cryptocurrency products, further demonstrates the growing acceptance and legitimacy of digital assets.

In a recent blog post, CCData, a leading provider of institutional-grade market data for digital assets, explained that a significant SEC decision could impact investors. The SEC has decided to prohibit staking in the initial ETFs, meaning entities holding potential ETH ETFs will miss out on the annual yield from Ethereum staking. CCData illustrated a scenario where holding native Ether with staking rewards over a decade shows substantially higher returns compared to holding an ETF without staking, highlighting potential investor losses.

Despite Ethereum’s recent struggles in trading activity on centralized exchanges and on-chain activity compared to other altcoins and Layer 2 solutions, the approval of spot ETH ETFs could revitalize the Ethereum ecosystem. CCData suggests that increased network usage and Ethereum’s deflationary supply mechanism might create favorable supply dynamics and boost Ethereum’s price.

The CCData Research team analyzed potential inflows for Ethereum ETFs, predicting substantial amounts if they attract a portion of the funds that have flowed into Bitcoin ETFs. Their linear regression analysis indicates a potential 30% price increase for Ethereum within the next 100 days if there is a significant shift in funds. However, the team also notes that Ethereum might face short-term struggles due to outflows from the Grayscale Ethereum Trust, similar to what happened after the approval of spot Bitcoin ETFs.

The CCData Research team also explored unique factors that could impact ETH ETF net flows and prices, such as order book liquidity, the deflationary supply mechanism, staked supply, and Grayscale’s strategic management. These factors could amplify price reactions, reduce selling pressure, and potentially lead to greater net inflows and price stability for Ethereum.

Featured Image via Pixabay

Gold market analyst Jan Nieuwenhuijs has recently examined the state of the precious metal market, revealing a significant surge in gold prices owes much to the dual engines of demand: the private market and the People’s Bank of China (PBOC).

According to Nieuwenhuijs, the Chinese private sector’s gold imports accounted for 543 tons in the first quarter of the year, a figure that was built upon by the country’s central bank, which added 189 tons to its reserves over the same period.

Private gold demand in the country represents a start 74% increase from the last quarter of 2023, while the People’s Bank of China’s accumulation rose 38% from the preceding quarter.

Both of these factors helped the price of the precious metal hit a new all-time high and surpass the $2,450 mark for the first time in history, before enduring a slight correction to now trade at $2,340.

IMG

Data shows that gold demand from central banks in the first quarter of the year was of 290 tons, with the People’s Bank of Chia making up for the majority of that figure as it boosted its reserves to 5,542 tons according to the analyst.

These acquisitions, according to analysts, are being made as China moves away from its U.S. debt holdings in a bid to be less reliant on fiat currency foreign reserves after the European Union blocked €200 billion ($around $216 billion) worth of Russian central bank assets after the country launched its invasion of Ukraine.

Private demand for gold in the country, according to the New York Times, is coming from consumers who have been buying and collecting small “gold beans” as an affordable way to invest in the precious metal.

In China the precious metal has been an attractive investment alternative amid a slump in traditional options like real estate and equities. The analyst wrote:

The Chinese public, which doesn’t have many investment options due to capital controls, will continue to invest in gold and support the price.

Nieuwenhuijs predicts that the gold market will remain red-hot, citing reports that Beijing has recently sold $53 billion worth of US Treasuries and agency bonds in a move that will further strengthen gold as a safe haven amid rising geopolitical tensions.

Featured image via Unsplash.

The potential approval of spot Ether exchange-traded funds (ETFs) in the United States has helped boot the cryptocurrency market significantly and is a significant step forward in cryptocurrency regulation, according to brokerage firm Bernstein, which suggested that Solana ($SOL ) exchange-traded funds could follow.

According to a recent research report from the brokerage firm, which comes ahead of an expected spot Ether ETF application from the U.S. Securities and Exchange Commission (SEC), similar treatment could come to other cryptocurrencies.

In the report, Bernstein analysts Gautam Chhugani and Mahika Sapra noted the see the potential approval as a sign of softening regulatory stance, possibly influenced by the upcoming November elections, adding bey believe that if Donal Trump is elected “crypto could see significant legislative and agency support” with a shift to the SEC’s leadership.

More immediately, the report highlights the potential precedent set by a spot Ether ETF as it would mark the first time a non-Bitcoin blockchain asset is classified as a commodity, potentially opening the door for similar treatment of Ethereum’s rivals, particularly Solana.

Notably, CNBC “Fast Money” trader Brian Kelly has also suggested that a spot Solana ETf could follow, saying that Bitcoin, Ethereum, and Solana “are probably the big three for this cycle.”

Oh weird @cnbc says $SOL is the next ETF.Hmm, where have I heard that before… pic.twitter.com/aYAedMhcM0

— ◢ J◎e McCann 🧊 (@joemccann) May 22, 2024

He added that Robinhood and Coinbase now have “some clarity on what a security is and what a security isn’t,” suggesting these two firms are the largest beneficiaries from regulatory clarity.

Bernstein predicts a price surge for Ether similar to the 75% increase witnessed by Bitcoin after the approval of spot Bitcoin ETFs, while earlier this week the price of ETH already surged over 20% as optimism surrounding the potential approval of these funds grew.

The report cites Ether’s free float and supply as particularly attractive – with 38% locked in staking and decentralized finance protocols, and a significant portion of the supply remaining inactive for over a year.

As reported, the number of small ETH  investors, those holding 10 ETH or less (around $37,500), has recently climbed to a new all-time high while larger investors are seemingly still lagging behind after divesting most of their funds over the last few months.

According to data from on-chain analytics firm Santiment, smaller Ethereum wallets hits a new all-time high of 121.74 million after the recent ETH price surge, while those holding between 10 and 10,000 ETH  – between $37,500 and $37.5 million – are still down around 5.8% this year.

Notably larger whales, those that have over $37.5 million worth of the second-largest cryptocurrency by market capitalization in their wallets, are down 10.6% in terms of total holdings after divesting of their ETH over the last few months.

Featured image via Unsplash.

Popular cryptocurrency analyst Michaël van de Poppe has recently suggested that so-called hard assets, including cryptocurrencies, gold, and silver, are all currently “extremely” undervalued when compared to the U.S. dollar and equities, meaning we could be on the “edge of a big bull cycle” for these assets.

In a post shared on the microblogging platform X (formerly known as Twitter) with his over 700,000 followers, van de Poppe noted these hard assets, including commodities, are a “must-have in the portfolio” given their potential to enter this “big bull cycle.”

I've not been discussing this much lately.However, the valuations of #Crypto & Gold, Silver are extremely low compared to the Dollar & Equities. It seems like we're on the edge of a big bull cycle in hard assets overall, commodities included. Must-have in the portfolio. pic.twitter.com/tQwCqAqJHl

— Michaël van de Poppe (@CryptoMichNL) May 22, 2024

Notably the stock market’s benchmark index, the S&P 500, has recently hit a new all-time high after rising more than 27% in a year, while BTC also moved to a new high above $73,500 before enduring a strong correction that saw it test the $58,000 mark before recovering, to now trade at $70,000.

Meanwhile, other metals, including gold and silver, have also been surging. Earlier this month, gold topped the $2,450 mark for the first time ever, and silver moved to an 11-year high above $32 as well.

Precious metals have been boosted by growing geopolitical tensions amid the ongoing Russian invasion of Ukraine and the war between Israel and Hamas. Moreover, these hard assets saw a boost after lower-than-expected inflation data in the U.S. boosted expectations the Federal Reserve could soon start cutting its benchmark interest rate.

Gold, in particular, has been seeing growing demand from central banks throughout the world, with China driving a significant part of that demand. Aside from central banks, demand for gold in China also comes from everyday investors collecting it in the form of “beans” meant to store value.

In the cryptocurrency space, a recent surge was triggered after the U.S. Securities and Exchange Commission abruptly requested that the exchanges that want to list and trade these funds update key filings related to these products, fueling speculation that the regulator is considering approving these products.

Featured image via Pixabay.

Historical data suggests that the price of the flagship cryptocurrency Bitcoin ($BTC ) could soon explode upward to near the $140,000 mark after it recently moved strongly upward to touch the $70,000 level for the first time in a month.

Bitcoin’s surge above its 2021 peak around $69,000 has kindled speculation about its potential next move, and analysts are drawing parallels too its past bull cycles, where the cryptocurrency’s price moved sharply upward after hitting new highs.

Historically, Bitcoin has seen substantial price increases following breaches of all-time highs. After its 2013 peak of roughly $1,130, the price didn’t surpass that level until 2017, however, within three months of breaking the record, Bitcoin’s value doubled. Similarly, when the 2017 all-time high of $20,000 was eclipsed in December 2020, Bitcoin’s price doubled again within a month.

This historical trend has some analysts predicting a potential doubling of Bitcoin’s current price in the coming months to near $140,000.

In 2017 the price of Bitcoin doubled in just 4 weeks after it established brand new all time highs. In 2021 the price of Bitcoin doubled in just 4 weeks after it established brand new all time highs. In 2024 the same action would imply a $138,000 price by the end of June.🚀🌛 pic.twitter.com/4kOBPa6y11

— alphanalysis.io (@Sawcruhteez) May 22, 2024

The analyst noted that while the 2021 high was surpassed back in March, previous rallies also saw multi-week declines before resuming their upward trajectories. The current market seems to be mirroring this behavior, with a 23% correction in early May followed by a period of relative stability.

As reported another cryptocurrency analyst, Wily Woo, has said the price of BTC could soon see a short squeeze that would see the price of the flagship cryptocurrency moves to a new all-time high. Bitcoin, it’s worth noting, is currently very close to its all-time high, which was slightly above the $73,500 mark.

Notably, data shows that institutional investors have entered the cryptocurrency space with force, with data suggesting that deep-pocketed investors gained interest in the space after the launch of spot Bitcoin exchange-traded funds (ETFs) in the United States, leading to whales accumulating over $16 billion in BTC since.

Featured image via Unsplash.

As the US 2024 presidential race heats up, the potential impact of a Donald Trump victory on the Federal Reserve is a topic of growing interest among financial experts and political observers. Trump’s tumultuous relationship with the Fed during his previous term, characterized by frequent criticism of the central bank’s policies and its chair, Jerome Powell, has led to speculation about the changes a second Trump administration might bring to the institution.

According to a report by The New York Times (NYT), while the Trump campaign has not yet unveiled a comprehensive plan for the Fed, advisers and supporters have been discussing potential reforms, ranging from minor adjustments to more radical proposals. One extreme idea that has been floated is limiting the Fed’s ability to set interest rates independently of the White House. However, this suggestion has faced pushback from some in Trump’s inner circle, who recognize the legal and political challenges of such a move and the potential for it to destabilize financial markets.

Instead, Trump’s focus may be on other aspects of Fed policy, such as banking regulation. As the NYT article pointed out, the campaign has hinted at plans to curtail the Fed’s regulatory powers, with Trump himself promising to ban “bureaucrats” from punishing companies for violating informal guidance. This could make it easier for financial institutions to operate with fewer restrictions, a move that aligns with the Trump administration’s general deregulatory approach.

Another key area of influence for Trump would be the appointment of a new Fed chair when Powell’s term ends in 2026. Trump has already made it clear that he does not intend to reappoint Powell, whom he originally selected for the position before President Biden renewed his term. While potential candidates for the role include experienced economists and former government officials, the final decision remains far off, and the campaign has not yet focused significant attention on the matter.

The question of Fed independence is likely to be a recurring theme in discussions about the central bank’s future under a potential Trump presidency. While direct attempts to control interest rates may prove difficult, Trump could seek to influence monetary policy through his nominations to the Fed’s Board of Governors. However, any nominees would need to be confirmed by the Senate, and previous attempts by Trump to appoint loyalists to the Fed were met with resistance, even from some members of his own party.

Earlier this week, President Donald Trump’s campaign introduced a fundraising page allowing federally permissible donors to contribute using cryptocurrency through the Coinbase Commerce platform. This marks the first time a major party Presidential nominee has accepted cryptocurrency donations, enhancing the campaign’s digital fundraising strategy.

The campaign assures that all contributions will comply with Federal Election Commission regulations, including contribution limits and disclosure requirements. Supporters can now make federally permissible cryptocurrency donations at Trump Campaign Crypto Donations.

A blog post from the campaign highlights Trump’s efforts to reduce regulations and promote innovation in financial technology during his presidency. This is contrasted with Democratic leaders like Joe Biden and Senator Elizabeth Warren, who are depicted as advocating for increased government control over financial systems.

The campaign suggests that this initiative is part of a broader effort to promote individual financial freedom and reduce governmental oversight. They argue that this announcement emphasizes Trump’s commitment to an agenda focused on personal liberty over “government control.”

Elizabeth Warren has expressed concerns about cryptocurrency, reportedly stating her intention to build an “anti-crypto army” to enforce stricter regulations on digital currencies. In response, the Trump campaign is rallying its supporters to form a “crypto army” to support the campaign leading up to the election on 5 November 2024.

Featured Image via Pixabay

Singapore – May 23, 2024 – zkCandy, an emerging Layer 2 scaling solution for Ethereum purpose built for the gaming industry, today announced the appointment of William Croisettier to the role of Chief Growth Officer. William brings an impressive track record in driving innovation and scaling blockchain ecosystems. William is a crypto native with 8 years of experience in web3 across multiple ecosystems including Ethereum, R3 Corda, and Polkadot, 6 years of building businesses in Asia, and 15+ years total with a broad range of experiences at the executive level.

With a deep understanding of web3 and crypto native ecosystem building, William will be instrumental in accelerating zkCandy’s mission to build the leading gaming ecosystem on zkSync. zkCandy leverages zkSync’s zero-knowledge proofs to deliver lightning-fast and affordable transactions, empowering developers to create immersive and expansive gaming worlds without the constraints of traditional blockchain scaling limitations. Prior to joining the zkCandy team, William led the Venture Capital team at Parity Technologies, where he contributed to scaling the Polkadot ecosystem from 0-1 from the launch of parachains to an ecosystem of 800+ builders globally.

In the few weeks since William joined zkCandy, he has initiated GTM efforts in Asia, expanding the marketing team, establishing the Vietnam team, and launching two Korean GTM partnerships. “With 1.5B gamers in the Asia region, and a $70B gaming market, we see Asia as the marquee global region to kick off our ecosystem growth strategy. With teams already on the ground in Singapore, Malaysia, Australia, Vietnam, South Korea, Japan, and other key local markets, we are well positioned to take leadership of the APAC market and enable a seamless experience for growing the zk L2 ecosystem” said William.

“William’s expertise and enthusiasm make him the perfect addition to our growing team,” said Kin Wai Lau, CEO of zkCandy. “His passion for blockchain infrastructure and experience in  scaling ecosystems from 0-1 will be invaluable as we continue to push the boundaries of blockchain gaming.” Kin Wai Lau, Chairman of iCandy and CEO of zkCandy, has been in the gaming industry for the last 15 years, and led iCandy from 10 person team to the 750+ person team around the world currently. 

zkCandy is a dedicated zkSync gaming and AI-focused hyperchain, specifically designed to optimise the deployment of games and for use by gaming companies and developers. 

Emerging from the partnership of zkSync, home to over 5 million addresses and December 2023’s most active Layer 2 platform with 38 million transactions, and iCandy Interactive Ltd, a leading game developer in Southeast Asia and Australia with a portfolio of 400 games, catering to 300 million gamers, and backed by a workforce of 700 experts, zkCandy embodies a convergence of cutting-edge zero-knowledge proof scaling solutions and a dynamic gaming environment. This collaboration marks a bold leap into innovation at the intersection of top-tier technology and gaming expertise.

“I’m incredibly excited to join the zkCandy team,” said William Croisettier. “The potential of zk L2 technology to revolutionize the gaming industry is immense, and zkCandy is at the forefront of this revolution. I’m eager to contribute my skills and experience to help zkCandy become the go-to scaling solution for blockchain game developers.”

About zkCandy

zkCandy is Layer2 ethereum hyperchain that  resulted from a groundbreaking collaboration between Matter Labs (zkSync) and iCandy Interactive (largest game developer of Southeast Asia). It proudly stands as the first hyperchain designed specifically for gaming and entertainment within the zkSync ecosystem. zkCandy’s primary goal is to address the challenges of gas fees and transaction speed through the utilization of cutting-edge zk-rollup Ethereum scaling technologies, all while maintaining a user-friendly approach.

About zkSync

zkSync is cutting-edge zero-knowledge (ZK) technology to scale Ethereum and bring crypto to the mainstream — reaching millions of developers and billions of people in need of a technological solution for achieving progress and prosperity. Deeply rooted in its mission to advance personal freedom for all, the zkSync blockchain network makes digital self-ownership universally available. It is trustless, secure, reliable, censorship-resistant, privacy-preserving, hyperscalable, accessible, and sovereign.

For more information, please contact:

Name: Kimberly San, Media Relations 

Email: media@zkcandy.io

The cryptocurrency space has lost over $100 billion in market capitalization ahead of an expected decision from the U.S. Securities and Exchange Commission (SEC) on the spot Ether exchange-traded fund (ETF) application from VanEck.

Much like the spotlight that shone on Bitcoin earlier this year, the pre-decision volatility has already set in, causing the significant price fluctuations across the market, with BTC itself dropping from over $71,000 to little over $68,000 at the time of writing.

The price of Ethereum’s Ether, the second-largest cryptocurrency by market capitalization that earlier this week saw a 20% surge in a single day after the SEC abruptly asked he exchanges that want to list and trade these funds update key filings related to these products, fueling speculation that the regulator is considering approving these products.

VanEck’s Ethereum ETF has faced its fair share of delays and amendments. Today, its 19b-4 form, a crucial document for regulatory approval, reaches its deadline for the SEC’s verdict, with the securities regulator having to decide whether to greenlight the investment vehicle or reject it.

Bloomberg’s Senior ETF analyst Eric Banchunas has predicted that the SEC’s decision is set to come a few hours from now at around the same time of day it approved spot Bitcoin ETFs back in January.

My best guess is we hear from the SEC around 4pm tomorrow. For spot btc they dropped it at 3:45pm, some others in past were slightly after 4pm. Anything poss tho https://t.co/MzTOcsmTnJ

— Eric Balchunas (@EricBalchunas) May 22, 2024

The market’s volatility has exacted a toll as over $220 million in liquidations occurred today alone, affecting traders who had taken on excessive leverage ahead of the decision, with the market seemingly confident as ETH is up 1.8% over the last 24 hours, outperforming BTC’s 3% drop.

Other major cryptocurrency also dropped, as BNB is down 4% to less than $600 a coin, and SOL dropped 4.5% to $172. DOGE, ADA, AVAX, and SHIB are among other tokens that saw dropped between 2.5% and 5.7%.

Featured image via Unsplash.

The U.S. Securities and Exchange Commission (SEC) has signaled a potential shift in its approach to spot Ethereum ETFs.

Update: @JSeyff and I are increasing our odds of spot Ether ETF approval to 75% (up from 25%), hearing chatter this afternoon that SEC could be doing a 180 on this (increasingly political issue), so now everyone scrambling (like us everyone else assumed they'd be denied). See… https://t.co/gcxgYHz3om

— Eric Balchunas (@EricBalchunas) May 20, 2024

According to a recent blog post by the CCData Research team, the SEC has requested stakeholders to update their 19b-4 filings, suggesting that the approval of these long-awaited investment vehicles might be on the horizon.

The news has triggered a seismic shift in the market, with Ethereum experiencing an unprecedented surge in price, trading volume, and open interest.

Source: TradingView

CCData reports that Ethereum recorded its largest daily gain in market capitalization, as investors scrambled to position themselves for the potential approval of spot ETFs. The discount on Grayscale Ethereum Trust (ETHE) relative to its Net Asset Value (NAV) also decreased significantly from 20.5% to 11.8%, indicating a resurgence of investor confidence in Ethereum.

The race for the first spot Ethereum ETF is now in full swing, with nine participants vying for the coveted approval. As noted by the CCData, VanEck, ARK/21Shares, and Hashdex have applications with final decision deadlines approaching later this month, while BlackRock’s iShares Ethereum Trust awaits a decision set for June 8. The SEC is likely to issue approvals simultaneously to avoid giving any single applicant an early advantage. Coinbase has emerged as the popular choice for custodian among the applicants.

However, CCData highlights a crucial decision by the SEC that could have significant implications for investors. The regulatory body has decided to prohibit staking in the initial ETFs, meaning that entities holding potential ETH ETFs will miss out on the annual yield from Ethereum staking. A hypothetical scenario presented by CCData illustrates the substantial difference in returns between holding native Ether with staking rewards and holding an ETF without staking over a ten-year period, emphasizing the potential losses investors could face.

Despite Ethereum’s recent struggles in terms of trading activity on centralized exchanges and on-chain activity compared to other altcoins and Layer 2 solutions, the approval of spot ETH ETFs could breathe new life into the Ethereum ecosystem. CCData suggests that the increased network usage, coupled with Ethereum’s deflationary supply mechanism, may lead to favorable supply dynamics and propel the price of Ethereum to new heights.

Drawing from the CCData Research team’s analysis, the potential inflows for Ethereum ETFs could be substantial, assuming they can attract a portion of the funds that have flowed into Bitcoin ETFs. A linear regression analysis by CCData suggests that a significant shift in funds could result in a 30% appreciation in Ethereum’s price within the next 100 days. However, the team also notes that Ethereum might face short-term struggles due to outflows from Grayscale Ethereum Trust, similar to what was observed after the approval of spot Bitcoin ETFs.

The CCData Research team also delves into the unique factors that could potentially impact ETH ETF net flows and prices, such as orderbook liquidity, deflationary supply mechanism, staked supply, and Grayscale’s strategic management. These factors could amplify price reactions, reduce selling pressure, and potentially lead to greater net inflows and price stability for Ethereum.

As the crypto world eagerly awaits the SEC’s decision, the potential approval of spot Ethereum ETFs could mark a turning point for the industry. The launch of these investment vehicles could not only propel Ethereum to new heights but also open the door for other crypto assets to follow suit, as suggested by the CCData Research team. The spot Ethereum ETFs could potentially bite into the popularity of spot Bitcoin ETFs, offering investors a higher risk-to-reward ratio due to Ethereum’s smaller market capitalization and distinct value proposition.

Featured Image via Pixabay

On 22 May 2024 when Brian Kelly, a notable crypto investor and CNBC’s ‘Fast Money’ trader, suggested that Solana (SOL) could be the next cryptocurrency to get a spot exchange-traded fund (ETF) in the United States. Kelly’s prediction has ignited a lively debate among industry experts and market observers.

Kelly is a financial analyst and television personality known for his expertise in cryptocurrencies and blockchain technology. He is the founder and CEO of BKCM LLC, an investment firm focused on digital currencies. Kelly is also a frequent contributor to CNBC, where he provides analysis and commentary on financial markets, with a particular focus on cryptocurrency trends and investment strategies. He has authored “The Bitcoin Big Bang: How Alternative Currencies Are About to Change the World,” which explores the potential of Bitcoin and other digital currencies to revolutionize the financial industry.

According to a report by Cointelegraph, during the CNBC post-market talk show Fast Money, Kelly expressed his belief that Solana might be the next major cryptocurrency to be featured in a spot ETF. “You’ve got to think about Solana as probably the next one. Bitcoin, Ethereum, and Solana are probably the big three for this cycle,” Kelly remarked.

Oh weird @cnbc says $SOL is the next ETF.Hmm, where have I heard that before… pic.twitter.com/aYAedMhcM0

— ◢ J◎e McCann 🧊 (@joemccann) May 22, 2024

Not everyone shares Kelly’s optimism. Nate Geraci, president of The ETF Store, countered that a spot Solana ETF is unlikely unless there is a Solana futures product listed on the Chicago Mercantile Exchange or a robust cryptocurrency regulatory framework is established by Congress.

James Seyffart, a Bloomberg ETF analyst, echoed Geraci’s caution. Seyffart suggested that a spot Solana ETF would require a Commodity Futures Trading Commission (CFTC)-regulated market, which he believes could happen within a few years. He noted that such an ETF could see significant demand, second only to Bitcoin and Ether. However, he also pointed out that the Securities and Exchange Commission (SEC) has previously classified Solana as a security in lawsuits against Coinbase and Kraken, potentially complicating future applications.

Based on current precedent/needs — Will happen within a few years of getting a CFTC regulated futures market. But congress & Market structure bills like FIT21 could make it happen quicker. I think a SOL ETF would see most demand vs other digital assets (aside from BTC & ETH)

— James Seyffart (@JSeyff) May 22, 2024

Contrary to Kelly’s and Seyffart’s views, Adam Cochran, partner at Cinneamhain Ventures, argued that either Litecoin (LTC) or Dogecoin (DOGE) would be more likely candidates for the next spot ETF.

I think you get LTC and DOGE first.Much lower demand, but cleaner paths.

— Adam Cochran (adamscochran.eth) (@adamscochran) May 22, 2024

At the time of writing (8:47 a.m. UTC on May 23), SOL is trading at around $177.31, down 1.6% in the past 24-hour period. In the year-to-date period, SOL is up 70% vs USD.

Seoul, South Korea – [Date] – In a strategic move signaling a profound shift in its trajectory, LABEL Foundation, a prominent IT company led by software development company Clesson, announces its bold entry into the artificial intelligence (AI) industry, specifically targeting the AI music and sound category. Known for its innovative musicapplication, TRACKS, LABEL Foundation is now setting its sights on leading in AI, unveiling a dynamic roadmap to spearhead the development of cutting-edge AI technology.

This venture into the AI sector highlights LABEL Foundation’s steadfast commitment to technological evolution and innovation. With a history of pushing boundaries and boasting an impressive user base of over 200,000 on their music app TRACKS, this strategic pivot towards AI underscores the company’s readiness to embrace new challenges and opportunities in the rapidly evolving digital landscape.

LABEL Foundation introduces Signail, an AI sound protocol service and voice platform that allows users to record their voices in one language, with AI seamlessly translating it into another while preserving their unique tone and voice. This service was recently previewed on the company’s official social media platforms.

On [Date], Clesson fortified its position in the AI sector through a strategic collaboration with Alibaba Cloud. This partnership utilizes Alibaba Cloud’s advanced Cloud resourcesㅣto enable not only professionals but also everyday users to create music and voice content, contributing to a creator economy where everyone can participate in creative endeavors.

Clesson plays a crucial role in the software development and operation of LABEL Foundation’s projects. As both LABEL Foundation and Clesson embark on this transformative journey into the AI sector, they reaffirm their commitment to innovation and excellence. With strategic partnerships and pioneering protocols, LABEL Foundation is poised to redefine the possibilities of AI and shape the future of the digital landscape.

The number of small Ethereum ($ETH ) investors, those holding 10 ETH or less (around $37,500), has recently climbed to a new all-time high while larger investors are seemingly still lagging behind after divesting most of their funds over the last few months.

According to data from on-chain analytics firm Santiment, smaller Ethereum wallets hits a new all-time high of 121.74 million after the recent ETH price surge, while those holding between 10 and 10,000 ETH  – between $37,500 and $37.5 million – are still down a around 5.8% this year.

Notably larger whales, those that have over $37.5 million worth of the second-largest cryptocurrency by market capitalization in their wallets, are down 10.6% in terms of total holdings after divesting of their ETH over the last few months.

🐬🐳 #Ethereum's small wallets (holding 10 or less $ETH ) continue to climb in number, reaching an #AllTimeHigh of 121.74M. Meanwhile, the #smartmoney wallets (holding 10-10K $ETH ) are still down -5.8% this past year, and big whales (10K+ $ETH ) are -10.6%. https://t.co/xzG40cdb0v pic.twitter.com/FFn3oPtbNr

— Santiment (@santimentfeed) May 21, 2024

Notably the price of ETH has recently surged over news related to the potential approval of spot Ether exchange-traded funds (ETFs) in the U.S as the Securities and Exchange Commission (SEC) has abruptly requested that the exchanges that want to list and trade these funds update key filings related to these products, fueling speculation that the regulator is considering approving these products.

Before any trading can begin, issuers of spot Ether ETFs must receive the go-ahead on their S-1 registration statements, with the SEC having no set deadline to review these filings.

The SEC’s ongoing investigation into Ether, the native cryptocurrency of the Ethereum blockchain, has intensified over the last few months, especially after the network’s transition to a Proof-of-Stake protocol.

Should Ether be classified as a security, it could provide the SEC with a basis to deny the applications for spot Ether ETFs. Nevertheless, the surge led to the spike in small ETH holders while seeing the cryptocurrency’s trading volume explode.

/1 Chart of the Week: #Ethereum jumped 17.8% in just 2 hours (22:46 May 20 – 00:46 May 21) after ETF analysts revised their predictions of the SEC approving a spot Ether ETF.Trading volume spiked 618%, hitting $21M within minutes, per our CCIX index for ETH-USD. pic.twitter.com/qazeaglaEE

— CCData (@CCData_io) May 21, 2024

The SEC is seemingly nearing a decision on spot Ether ETFs, as the Cboe exchange has published amended 19b-4 filings in response to regulatory feedback for several applicants including asset management giants BlackRock, Fidelity, VanEck, and Franklin Templeton, among others.

These filings came after the SEC requested standardized revisions where applicants could all use the same wording. While final approval of the applications remains uncertain, the feedback has boosted optimism within the industry, with some anticipating approvals as early as this week.

Featured image via Unsplash.

Cryptocurrency whales have become significantly more active in two Ethereum-based altcoins, according to blockchain data that foreshadows “major volatility” and potential price reversals for these two altcoins.

According to on-chain analytics firm Santiment, whale activity has been surging for both Optimism ($OP ) and Chiliz ($CHZ ) in a move that “typically will foreshadow” major price volatility and reversals.

It’s worth noting that Optimism’s OP token is currently trading at $3.7 after moving up nearly 8% over the last week, and 4.5% over the last 30 days, whlle CHZ is up 1.8% in the last week and around 3% over the past month to now trade at $0.12.

🐳 With #crypto rebounding big today, keep an eye on the rising whale activity among many #altcoins like @Optimism and @Chiliz. Sudden high #onchain activity among their largest traders typically will foreshadow major volatility and $OP & $CHZ reversals. https://t.co/oY5swI6DL4 pic.twitter.com/4pJ6vZS7ow

— Santiment (@santimentfeed) May 20, 2024

Cryptocurrency whales have been rather active over the last few weeks, at a time in which the cryptocurrency market has been soaring, with Bitcoin recently surpassing the $70,000 mark amid growing expectations the U.S. Securities and Exchange Commission (SEC) will soon approve spot Ether exchange-traded funds.

As reported, a long-dormant Bitcoin whale has seemingly resurfaced after nearly 11 years and has recently moved 1,000 BTC worth nearly $61 million to new cryptocurrency wallets.

According on-chain analysis service Lookonchain, the whale made two transactions after being inactive for 10.7 years, moving funds from two wallets that received 500 BTC each back in September 2013, when Bitcoin was trading at just $124 per coin.

Institutional investors have entered the cryptocurrency space with force, with data suggesting that deep-pocketed investors gained interest in the space after the launch of spot Bitcoin exchange-traded funds (ETFs) in the United States, leading to whales accumulating over $16 billion in BTC since.

Recent filings with the U.S. Securities and Exchange Commission have been revealing hedge funds and Wall Street giants added exposure to Bitcoin via spot Bitcoin exchange-traded funds in the first quarter of the year, with Bracebridge Capital, a Boston-based hedge fund managing roughly $12 billion in assets, buying up $360 million over three funds.

The disclosure comes amid several others, with the U.S. state of Wisconsin recently becoming the first local government entity to reveal an investment in Bitcoin after purchasing 94,562 shares of BlackRock’s iShares Bitcoin Trust (IBIT), worth nearly $100 million, in the first quarter of the year.

The move sees the state of Wisconsin join several Wall Street giants, including JPMorgan Chase and Wells Fargo, in revealing BTC exposure through investment in spot Bitcoin exchange-traded funds, according to 13F filings.

JPMorgan revealed an investment of $731,246 in BlackRock’s IBIT ETF, Bitwise’s BITB, Fidelity’s FBTC, and Grayscale’s GBTC, while Wells Fargo disclosed $141,817 in GBTC holdings. BNP Paribas and BNY Mellon have also made similar disclosures.

BNP Paribas, the second-largest bank in Europe whose asset management arm has over $600 billion in assets under management, has gained exposure to the flagship cryptocurrency Bitcoin in the first quarter of the year as well by purchasing shares of IBIT.

Featured image via Unsplash.

An early investor in the meme-inspired cryptocurrency $PEPE has recently realized a gain of around $3.4 million from an investment of little over $460 they made in the cryptocurrency’s early days to realize a gain of nearly 740,000%.

According to on-chain analysis service Lookonchain the trader spent just 0.22 ETH to buy their PEPE tokens in April of last year, which netted them a total of 324.9 billion PEPE. The trader has recently moved a final tranche of 182.9 billion tokens onto leading cryptocurrency exchange Binance, effectively divesting of their position for a total of $3.4 million.

An early buyer of $PEPE deposited all 182.9B $PEPE ($2.53M) into #Binance 6 hours ago.This guy spent 0.22 $ETH($462) to buy 324.9B $PEPE on Apr 15, 2023 and sold it all for $3.4M.He was lucky enough to turn $462 into $3.4M, a gain of 7,368x!Address:https://t.co/o4UcGKVHEh pic.twitter.com/zq03iGzcAe

— Lookonchain (@lookonchain) May 22, 2024

The investor’s sale comes as the price of the meme-inspired cryptocurrency hits new highs, having recently briefly surpassed the $0.000014 mark before correcting slightly. Its gains came amid a wider cryptocurrency market rally that added over $200 billion to the space’s total market capitalization.

he catalyst for the broader market surge appears to be news related to the potential approval of spot Ether exchange-traded funds (ETFs) in the U.S as the Securities and Exchange Commission (SEC) has abruptly requested that the exchanges that want to list and trade these funds update key filings related to these products, fueling speculation that the regulator is considering approving these products.

The surge saw Ethereum itself move up over 20% in a single day, while several Ethereum-related tokens, including memecoins, also jumped. Notably this isn’t the first time an investor makes a major gain with PEPE, as earlier this year CryptoGlobe reported on a whale who made over $3.3 million with the token.

Looking into the wallet of the the trader who turned little over $460 into millions trading the memecoin inspired on the infamous meme and cartoon character Pepe the Frog shortly after it was launched, data shows that the trader often invests in newly launched memecoins hoping one will take off.

The investor was early on several popular memecoins, but also seemingly on several memecoins that faded away soon after being launched, according to Etherscan data.

Featured image via Unsplash.

Wall Street analysts are eyeing a potential turning point in Federal Reserve policy, with some predicting a seismic shift that could ignite a multi-trillion-dollar surge in the cryptocurrency market.

This bullish outlook hinges on the Fed successfully taming inflation, potentially unleashing an estimated $6 trillion in sidelined capital back into the market, according to a recent Forbes report. Some of that capital could move into the cryptocurrency space and boost assets like BTC, ETH, and XRP.

Tom Lee, managing partner at Fundstrat Global Advisors, has revealed he envisions a transformative event, a once-in-a-generation opportunity as if the Fed signals victory over inflation, Lee suggests trillions of dollars could flood back into the market within months.

Lee’s optimism rests on recent signs of progress. The April Consumer Price Index (CPI) showed a deceleration, rising 0.3% compared to 0.4% in March, which suggests the Fed’s aggressive monetary policy may be paying off.

CNBC reports the April CPI rose by 0.3%, below the expected 0.4%, indicating a slight easing of inflation. Year-over-year, the CPI increased by 3.4%, meeting expectations and underscoring persistent inflation.

— CryptoGlobe (@CryptoGlobeInfo) May 15, 2024

Should the Fed pivot, Lee believes a frenzy of investment activity could erupt and the price of Bitcoin could potentially skyrocket to $150,000, more than double its current price of around $71,000. Historically, other major cryptocurrencies like XRP have followed similar trajectories.

Earlier this week, the price of Ethereum soared more than 20% in a single day as the cryptocurrency market added over $200 billion, in a surge triggered by news elated to the potential approval of spot Ether exchange-traded funds (ETFs) in the U.S.

These came after the Securities and Exchange Commission (SEC) abruptly requested that the exchanges that want to list and trade these funds update key filings related to these products, fueling speculation that the regulator is considering approving these products.

A major cryptocurrency analysts are eyeing is XRP, which has struggled to regain its former highs after its legal battle with the Securities and Exchange Commission (SEC) started. The cryptocurrency could be a beneficiary from the potential $6 trillion in capital that could flow into the cryptocurrency space.

Featured image via Pixabay.

In a recent CNBC interview, billionaire investor Stanley Druckenmiller shared his thoughts on a wide range of topics, including the Federal Reserve’s monetary policy, inflation, artificial intelligence (AI), and his global investment strategies.

Stanley Druckenmiller is highly regarded for his consistent and impressive investment performance, particularly during his tenure at the Quantum Fund with George Soros. He played a pivotal role in the fund’s legendary 1992 bet against the British pound, which netted a profit of over $1 billion. Known for his long-term vision and macroeconomic analysis, Druckenmiller has successfully navigated various market conditions, showcasing his adaptability and strategic acumen.

His ability to time markets and manage risk effectively has resulted in significant returns with relatively low risk. Beyond his investment success, Druckenmiller has been a mentor to many in the financial industry, influencing a generation of investors. Additionally, his substantial philanthropic efforts in education, medical research, and social causes have further enhanced his reputation, making him a respected figure both in finance and beyond.

Druckenmiller expressed his perplexity regarding the Fed’s December pivot, believing that they had fumbled an opportunity to control inflation when it was coming down and financial conditions were tightening. He criticized the Fed’s forward guidance, arguing that it trapped them into a cycle of talking about rate cuts, which led to a melt-up in financial conditions. Druckenmiller suggested that the Fed should eliminate forward guidance and simply raise or cut rates as needed without trying to be a “rockstar” on “60 Minutes.”

The investor also questioned the Fed’s obsession with achieving a soft landing, citing Paul Volcker’s willingness to put the economy into a recession to achieve long-term prosperity. He warned that the current focus on avoiding pain could lead to political consequences, as the average American is more affected by rising gasoline prices than stock prices.

Druckenmiller gave the Biden administration an “F” for their economic policies, arguing that they are misdiagnosing the current situation as a depression and overspending when the private sector is healthy and innovative. He expressed concern that government spending and resulting interest rates on debt could crowd out private sector innovation in areas such as blockchain and AI.

On the topic of AI, Druckenmiller revealed that he had invested in Nvidia after being advised by a young partner who predicted the company’s potential in the AI space. Although he pared back his position after significant gains, Druckenmiller remains bullish on AI in the long term, comparing it to the early days of the internet. He acknowledged that AI might be overhyped in the short term but could be underestimated in the long run.

Druckenmiller also discussed his investment in Perplexity AI, an AI-powered answer machine that he believes could potentially challenge Google. He praised the company’s founder and team for their innovation and humility and encouraged viewers to try the platform for themselves.

When asked about the potential for AI language models to become commoditized, Druckenmiller admitted that it is a concern and one of the reasons he reduced his positions. He also questioned the long-term incremental value of increasingly costly AI models.

Regarding the upcoming U.S. presidential election, Druckenmiller expressed concerns about both candidates’ potential impact on inflation. He suggested that under a Trump administration, factors such as tariffs, immigration, and animal spirits could lead to inflation reaching 6% by 2025. Under a Biden administration, he worried about stagflation due to government spending, regulation, and the Fed’s impact on financial conditions.

Druckenmiller also discussed his investments in Argentina and Japan. He praised Argentina’s new leader, Javier Milei, for his free-market policies and ability to maintain public support despite implementing significant reforms. In Japan, Druckenmiller sees opportunities arising from the country’s shift towards corporate governance changes and its emergence from a prolonged period of deflation.

The story of how he invested in Argentina was quite interesting.

Druckenmiller said:

“By the way, do you want to hear how I invested in Argentina? It’s a funny story. I saw — I wasn’t at Davos, but I saw the speech in Davos and it was about 1:00 in the afternoon in my office. I dialed up Perplexity and I said, give me the five most liquid ADRs in Argentina … It gave me enough of a description that I follow the old Soros rule, invest and then investigate. I bought all of them. We did some work on them. I increased my positions and so far, it’s been great. But we’ll see.“

Finally, Druckenmiller shared his bullish outlook on copper, citing the long lead times for new production and the increasing demand from electric vehicles, power grids, data centers, and even munitions. He also reiterated his stance on not investing in China as long as the current leader remains in power, preferring to focus on exciting opportunities in the United States, Argentina, and Japan.

Federal Reserve officials have grown increasingly worried about the stubborn nature of inflation, as revealed in the minutes from the April 30-May 1 policy meeting of the Federal Open Market Committee (FOMC). The minutes, released on Wednesday, indicated that policymakers lacked the confidence to move forward with interest rate reductions due to the lack of progress in bringing inflation down to the targeted 2% rate.

The meeting took place following a series of economic readings that showed inflation running well above the Fed’s target despite having eased over the past year. The minutes noted that “various participants mentioned a willingness to tighten policy further should risks to inflation materialize in a way that such an action became appropriate.”

The FOMC unanimously voted to maintain the benchmark short-term borrowing rate in a range of 5.25%-5.5%, the highest level in 23 years. While some incremental signs of progress on inflation have emerged since the meeting, such as the slightly lower consumer price index for April, consumer surveys indicate increasing worries about the inflation outlook.

Fed officials identified several upside risks to inflation, particularly from geopolitical events, and expressed concern about the pressure that inflation was having on consumers, especially those on the lower end of the wage scale. They also noted that consumers were resorting to riskier forms of financing, such as increased usage of credit cards and buy-now-pay-later services, to make ends meet as inflation persists.

Although officials were largely optimistic about growth prospects, they expected some moderation this year and grew uncertain over how long it would take for inflation to return to the 2% objective. Immigration was mentioned multiple times as a factor helping to spur the labor market and sustain consumption levels.

Public remarks from central bankers since the meeting have taken on a cautionary tone, with Fed Governor Christopher Waller stating that he will need to see “several months” of good data before voting to cut rates. Chair Jerome Powell maintained that the Fed will “need to be patient and let restrictive policy do its work” as inflation remains elevated.

According to a report by CNBC, markets have continued to adjust their expectations for rate cuts this year, with futures pricing indicating about a 60% chance of the first cut coming in September and a slightly better than 50-50 chance of a second move in December. This marks a significant shift from earlier this year when markets had been pricing in at least six quarter-percentage point cuts.

According to Bloomberg, the Financial Conduct Authority (FCA), the UK’s financial regulator, has approved the first cryptocurrency exchange-traded products (ETPs), marking a milestone in the UK’s approach to digital asset investment.

An ETP is a type of security traded on stock exchanges, similar to individual stocks. ETPs are designed to track the performance of a specific index, commodity, currency, or other benchmark, allowing investors to gain exposure to various asset classes without directly owning the underlying assets. ETPs can include different structures, such as exchange-traded funds (ETFs), exchange-traded notes (ETNs), and exchange-traded commodities (ETCs).

An ETF is a specific type of ETP that pools together various assets, such as stocks, bonds, or commodities, into a single fund. ETFs aim to replicate the performance of a specific index or benchmark and are structured as investment funds. When you invest in an ETF, you own shares of the fund, which, in turn, owns the underlying assets. ETFs are typically regulated under investment company laws, which provide certain protections and requirements for investors. Additionally, ETFs can distribute dividends to investors if the underlying assets generate income.

The main difference between ETPs and ETFs lies in their structure and scope. ETPs is a broad category that includes various types of exchange-traded securities, not limited to funds. They can encompass notes and commodities as well. While ETFs are a subset of ETPs and are specifically structured as investment funds, other types of ETPs, like ETNs, are debt instruments issued by banks. ETFs are regulated under specific investment fund regulations, while other types of ETPs, such as ETNs, may have different regulatory frameworks. Moreover, ETNs carry the credit risk of the issuer as they are debt securities, whereas ETFs do not have this risk since they own the underlying assets directly. Another distinction is that ETFs can distribute dividends to investors, whereas ETNs do not because they do not directly own the underlying assets.

Per Bloomberg’s article, WisdomTree Inc. announced today that it has received FCA approval to list two physically-backed crypto ETPs, which will track Bitcoin and Ether, on the London Stock Exchange. These products are expected to begin trading as early as 28 May 2024.

Several other issuers, including ETC Group, 21Shares, and CoinShares, have also applied to list their crypto products in the UK. As of midday on Wednesday, the FCA’s approval list included entries from WisdomTree, 21Shares, and Invesco Digital Markets Plc, all set to be part of the first batch of trading on the approval date.

Despite this advancement, the FCA has implemented stringent rules surrounding these products. WisdomTree’s Bitcoin and Ether ETPs, although physically-backed, are only available to professional investors. This restriction is stricter compared to the United States, where the approval of spot Bitcoin ETFs in January has led to significant market growth. In the US, these ETFs now manage a combined $59 billion, which is nearly five times the total for similar crypto vehicles traded in Europe.

ETPs linked to cryptocurrencies have been trading on other European stock exchanges for years. The approval of such products by the US Securities and Exchange Commission (SEC) earlier this year played a crucial role in propelling Bitcoin to a record high in March and has facilitated broader adoption among retail and institutional investors.

However, not all global markets have seen the same enthusiasm. In Hong Kong, despite the approval of Bitcoin and Ether ETFs, investor response has been lukewarm. This contrast highlights the varying degrees of market maturity and investor interest in different regions.

ETC Group confirmed that its application is still under review, while 21Shares has already secured approval. CoinShares and the FCA declined to comment on their status, and Invesco had no immediate response.

On 21 May 2024, prominent macroeconomist and crypto analyst Alex Krüger provided new insights on social media platform X (formerly known as Twitter) regarding the potential for the U.S. Securities and Exchange Commission (SEC) to approve spot Ethereum ETFs. Krüger, who founded the asset management and advisory firm Aike Capital, offered a detailed analysis reflecting the rapidly changing sentiment in the cryptocurrency market.

Until this week, Krüger had been pessimistic about the likelihood of the SEC approving any spot Ethereum ETFs this year or soon. However, recent developments have prompted a reevaluation. On 20 May 2024, Bloomberg ETF analysts Eric Balchunas and James Seyffart significantly increased their estimated odds of SEC approval for spot ETH ETFs from 25% to 75%. This adjustment was based on emerging rumors suggesting that the SEC might be reconsidering its stance, driven by political considerations.

Balchunas shared the updated odds on X, noting that the shift was fueled by afternoon chatter indicating a possible reversal in the SEC’s approach to this increasingly politicized issue. This unexpected development has caused market participants to scramble to adjust their positions, many of whom had previously assumed that ETF approvals would be denied.

Update: @JSeyff and I are increasing our odds of spot Ether ETF approval to 75% (up from 25%), hearing chatter this afternoon that SEC could be doing a 180 on this (increasingly political issue), so now everyone scrambling (like us everyone else assumed they'd be denied). See… https://t.co/gcxgYHz3om

— Eric Balchunas (@EricBalchunas) May 20, 2024

In his analysis, Krüger acknowledged the potential impact of these rumors. He stated that his base case scenario had been:

Bitcoin rising significantly by the end of the year.

Ethereum underperforming due to the expected rejection of spot ETH ETF proposals by the SEC.

Ethereum outperforming post the U.S. presidential elections in November 2024, driven by a potential change in SEC leadership and subsequent approval of spot ETH ETFs in 2025.

However, the possibility of an SEC approval, possibly as early as this week, could accelerate these timelines. Krüger emphasized that the market had not fully priced in such an approval, suggesting that Ethereum could see a substantial rally if the approval were granted.

Krüger explained that the current market movements were primarily driven by repositioning and the closing of short positions, as the possibility of an SEC approval caught many off guard. He predicted that if approval were granted, it would lead to significant inflows into Ethereum, potentially pushing its price to all-time highs (ATHs).

He cautioned against underestimating the potential for approval, highlighting that such a decision could reinvigorate bullish sentiment and cause Ethereum to lead the market. Despite the day’s rally, he pointed out that ETH/BTC was still down year-to-date, indicating room for further growth.

Source: TradingView

Krüger also touched on the political dynamics influencing the SEC’s stance. He suggested that the seeming shift in the SEC’s approach might be politically driven, possibly influenced by the upcoming elections and the need to counteract former President Donald Trump’s recent pro-crypto stance.

He noted that if the SEC rejects the spot ETH ETF proposals, which he now views as unlikely, the market could experience significant pain. He advised traders to stay alert and monitor developments closely until the SEC’s decision on May 23rd.

My base case scenario has been– Bitcoin much higher into year end – Ethereum underperforming due to an ETF rejection– Ethereum overperformimg from the US elections onwards, as elections would lead to a Gensler removal and subsequent ETF approval in 2025An ETH ETF approval… pic.twitter.com/8rEAeYHMbK

— Alex Krüger (@krugermacro) May 21, 2024

Krüger also delvec into the political dynamics influencing the SEC’s stance. He posits that the seeming change in the SEC’s approach may be driven by top Democratic party members, potentially influenced by the upcoming elections. He believes this shift could be a reaction to former President Donald Trump’s recent support for cryptocurrency, forcing a strategic move from the Democrats to not appear anti-crypto.

Many will disagree but I do believe the SEC's seeming change in stance was politically driven, coming from the top of the Democratic party and with elections in mind. Possibly triggered by Trump's sudden support of crypto, forcing the Dems hands.

— Alex Krüger (@krugermacro) May 21, 2024

Featured Image via Pixabay

May 22nd, Panama – Gate.io, a leading crypto exchange and Web3 innovator, has announced its 11th-anniversary celebrations, showcasing its milestones and launching prize-winning activities for its global user base. Since its founding in 2013, Gate.io has actively worked to create a secure and cutting-edge platform for cryptocurrency users worldwide. Under the leadership of Founder and CEO Dr. Lin Han, the platform has prioritized user asset security, technological advancement, and exceptional user experience.

Dr. Lin Han commented on Gate.io’s 11th anniversary: “Reaching eleven years is a significant milestone for any company. As we continue expanding alongside the entire crypto space, prioritizing security and reliability becomes increasingly clear. We’re here to accompany users and grow alongside them now and in the future. We are eager to contribute to the industry’s long-term, stable, and robust development, as well as the seamless integration of digital assets into everyday life.”

11 Years of Growth and Commitment

With over 15 million users and support for over 2,200 digital assets, Gate.io has established itself as one of the most trusted trading platforms globally, with peak daily trading volume surpassing $14 billion.

In the past 11 years, Gate.io has grown in key areas, including trading volume, user base, and diversity and quality of services. In 2023, the platform saw annual volume reach $1.72 trillion, listing over 360 new assets and attracting over 7 million users to its Startup launchpad. Gate Wealth, its wealth management platform, grew to over $768 million in funds contributed by users.

As one of the first exchanges to commit to a full-reserve model, its most recent Proof of Reserves reported that total reserves exceed $7 billion (USD), with a reserve-deposit ratio of 115.29%. Further, its reserves reporting method has successfully passed an audit by the blockchain security firm Hacken.

Regarding global expansion, Gate Group has obtained licenses for digital asset-related businesses and completed relevant VASP registrations through local entities in several regions. It has established local stations in Malta, Hong Kong, Lithuania, Turkey, and other regions to provide secure and compliant digital asset services for local users. 

A Comprehensive Evolution

In celebration of its 11th anniversary, Gate.io adopted the theme “unlocking an era of omnipotent trading” to mark the milestones. In addition to its core exchange services, Gate.io has built an ecosystem that includes the GateChain public blockchain alongside wallet, DeFi, and Web3 services, research, venture capital, and startup incubation.

Other notable areas of development this past year include the Gate Web3 Wallet, which supports numerous mainstream chains and tens of thousands of digital assets. The broader Gate Web3 ecosystem also features a DApp browser, NFT market, inter- and cross-chain swaps, decentralized perpetuals, airdrops, and more. In addition to accelerating crypto applications, Gate.io has evolved to offer payment services through Gate Pay and Gate Card and on- and off-ramp services through Gate OTC and Gate Connect.

Lastly, in 2023, Gate Charity achieved a new milestone in its global philanthropy, carrying out over 100 charitable activities in 16 countries. Meanwhile, Gate Learn expanded to offer diverse courses that promote crypto education and understanding of blockchain technology. Gate.io actively participates in offline events, expanding its community footprint across Asia, Europe, North America, South America, and Africa.

Celebrating with Users

As part of its 11th anniversary, Gate.io has launched a series of events to give back to users:

1. Send Greetings, Win Anniversary Gifts: Users can share their anniversary wishes to win exclusive gifts.

2. Claim 11th Anniversary Merchandise: Millions of dollars in prizes are ready in the lucky draw.

3. Play Revelry Game, Feast on $100,000 Treats: Users can play games, collect celebration gifts, and get chances to win luxurious prizes.

4. Join Final Gala, Win Big in the Grand Prize Draw: Merchandise is up for grabs, along with many other prizes, including iPhone 15 Pro Max, MacBooks, iPads, and airdrops.

Amid the rapid growth of the global cryptocurrency market, the role and responsibility of trading platforms continue to evolve. Gate.io, with its technical expertise and industry experience, aims to introduce the era of comprehensivity, offering more trading options and improved services. It remains confident that this advancement will further cement Gate.io as a leader in driving the industry into a new phase of development and adoption.