This text appears to be a news article summarizing various events related to cryptocurrencies and politics from the previous and upcoming week. It includes information about the Republican Party platform including crypto, Parliamentary elections in France, and UK elections resulting in a Labour landslide. The article also lists upcoming hearings and events related to crypto regulation and digital asset markets. Additionally, it mentions an ongoing case against Binance and a local Bitcoin mine causing unusual medical conditions in residents of Granbury, Texas.

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Following BTC

The narrative

As an analyst, I’m observing that the SEC appears ready to give the green light for the launch of spot Ether ETFs in the United States markets. These ETFs could potentially start trading as early as this week, subject to completing some final procedural requirements.

Why it matters

I, as a crypto investor, have long anticipated the approval of spot Ethereum (ETH) Exchange-Traded Funds (ETFs). This desire for ETH ETFs has been present nearly alongside the pursuit of spot Bitcoin (BTC) ETFs. The Securities and Exchange Commission (SEC), however, took its time in giving the green light to Ethereum counterparts, only doing so in May, following a decade-long wait for Bitcoin products. Similar to their Bitcoin counterparts, proponents of Ether ETFs believe these funds will establish a secure and controlled investment avenue. They argue that this will offer the general public an opportunity to invest in the second-largest cryptocurrency by market cap without the need for direct ownership.

Breaking it down

As a crypto investor, I’ve noticed that a few potential issuers submitted amended S-1 forms over the weekend and early this week, indicating some progress in the regulatory approval process. However, these filings were missing fee information, suggesting that we might still need to wait for more comments from the SEC staff before trading can commence. Invesco and Galaxy disclosed their proposed fees of 0.25% on Tuesday, while VanEck was the only one to do so earlier in the process.

The SEC’s decision on these 19b-4 filings isn’t time-bound like the ones they approved in May. Unlike those instances, there’s no definitive deadline for the agency to make a final call. Consequently, the back-and-forth between regulators and issuers might conclude as early as this week or stretch out for several more weeks. A source close to the process informed CoinDesk that they anticipate the dialogue to persist for approximately three weeks.

As an analyst examining these filings, I’ve noticed that they lack information regarding expense ratios. Including this vital data in any upcoming amendments would suggest that those revisions might be the definitive ones.

As a researcher studying the regulatory process for bitcoin ETFs, I’ve observed that the Securities and Exchange Commission (SEC) typically provides feedback within a few days of receiving amended forms from issuers. If the SEC renders its decision by Tuesday evening, it’s likely that issuers will submit their final set of amended forms on Wednesday. These documents should include fee information and any other required details. Historically, for spot bitcoin ETFs, the SEC has taken about two days to grant approvals after receiving the necessary fees. Consequently, if issuers submit their fees by Wednesday, it’s conceivable that an approval could be obtained as early as Friday.

The products could begin trading relatively quickly afterward.

As a researcher studying the world of cryptocurrencies and exchange-traded funds (ETFs), I’ve come across an intriguing pattern. Approximately hours before the Securities and Exchange Commission (SEC) gave its green light to bitcoin ETFs in January, Cboe BZX Exchange added these funds to its “New Listings” page, stating it was just a “standard procedure” prior to approval. With five proposed ether ETFs slated for listing on Cboe, we might anticipate a similar occurrence on the day these ETFs secure SEC approval.

Stories you may have missed

Former FTX Execs Nishad Singh, Gary Wang to Be Sentenced Later This Year: Nishad Singh will be sentenced on Oct. 30, and Gary Wang on Nov. 20. Both pleaded guilty to criminal charges after FTX’s collapse, and both testified against former FTX CEO Sam Bankman-Fried.
Trump’s Official Republican Platform Pledges to Halt Crypto ‘Crackdown’: The Republican Party platform officially contains crypto, after standard bearer Donald Trump and other lawmakers in the party have campaigned on crypto issues.
France Votes for Hung Parliament as Major Parties Fall Short of Majority: France held its Parliamentary election over the weekend.
Labour Landslide Sets Up Starmer as UK Prime Minister With Unstated Crypto Plans: The U.K. held its elections last Thursday.

This week

What Still Needs to Happen Before Spot Ether ETFs Can Trade

Tuesday

14:00 UTC (10:00 a.m. EDT) Federal Reserve Chairman Jerome Powell testified before the Senate Banking Committee.
18:00 UTC (2:00 p.m. EDT) Following a federal judge’s ruling last week, there was a scheduling conference in the SEC’s ongoing case against Binance.

Wednesday

14:00 UTC (10:00 a.m. EDT) Fed Chair Powell is back, this time before the House Financial Services Committee.
14:00 UTC (10:00 a.m. EDT) The Senate Agriculture Committee is holding a hearing on digital asset regulation with CFTC Chair Rostin Behnam.
17:00 UTC (1:00 p.m. EDT) The Department of Energy’s Energy Information Administration is holding a webinar on its proposal to collect information from crypto mining firms.

Thursday

14:00 UTC (10:00 a.m. EDT) The Senate Banking Committee will hold its confirmation hearing for CFTC Commissioners Christy Goldsmith Romero and Kristin Johnson, who have been nominated to chair the Federal Depository Insurance Corp. and be an assistant secretary for the U.S. Treasury Department (respectively); a renewal hearing for SEC Commissioner Caroline Crenshaw to serve another term and Gordon Ito to join the Financial Stability Oversight Council.

Friday

14:00 UTC (10:00 a.m. EDT) There will be a hearing in the U.S. criminal case against Roman Storm. Storm’s attorneys have asked for his trial to be postponed from September 2024 to January or February 2025.

Elsewhere:

(Time) Time Magazine’s Andrew Chow spoke to dozens of residents of Granbury, Texas, who have suffered from unusual medical conditions. A local Bitcoin mine appears to be the likely suspect – the noise from cooling fans may be causing people’s bodies to exhibit stress responses (this isn’t unheard of).

If you have ideas for topics I should cover next week or any suggestions you’d like to make, please don’t hesitate to reach out to me via email at nik@coindesk.com or connect with me on Twitter @nikhileshde.

You can also join the group conversation on Telegram.

See ya’ll next week!

2024-07-09 20:56

What Still Needs to Happen Before Spot Ether ETFs Can Trade