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  • Grayscale Submits Revised Application For Ethereum Spot ETF – What’s New?

    Grayscale Submits Revised Application For Ethereum Spot ETF – What’s New?

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    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.

    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.

    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.

    Ethereum price on a deep correction on the daily timeframe | Source: ETHUSDT chart on TradingView

    Featured image from The Economic Times, chart from TradingView

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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    Opeyemi Sule

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  • Gemini, Genesis motions to dismiss SEC Earn complaint denied

    Gemini, Genesis motions to dismiss SEC Earn complaint denied

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    A U.S. judge found a lawsuit alleging securities violation by crypto companies Gemini and Genesis plausible. 

    District Judge Edgardo Ramos denied motions to dismiss filed by Gemini crypto exchange and crypto lender Genesis in a U.S. SEC complaint submitted over an Earn program hosted by both firms until late 2022. 

    In a March 13 court order, Judge Ramos said that the SEC provided sufficient grounds to allege that Gemini and Genesis violated U.S. securities rules. 

    The ruling issued in a Southern District of New York courthouse cited the Howey Test and Reves Test, referenced by the commission, as adequate justification for qualifying the Earn program under existing securities rules.

    At this stage, under both tests, the Court finds that the complaint plausibly alleges that Defendants offered and sold unregistered securities through the Gemini Earn program. As a result, Defendants’ motions to dismiss are denied.

    Judge Edgardo Ramos

    In the January 2023 lawsuit, SEC litigators argued that the crypto companies marketed this Earn product as an investment opportunity. Earn investors held profit expectations from the efforts of others, thus satisfying securities requirements according to the agency.

    Genesis, in particular, has previously attempted to dismiss the SEC’s complaints, claiming Gemini’s Earn program operated under a loan creation model rather than securities contracts. The Digital Currency Group subsidiary also reached a $21 million settlement with the commission in a civil lawsuit. 

    Both firms have been the subject of multiple enforcement actions launched by American regulators, including the New York Attorney General’s (NYAG) office. NYAG Letitia James sued the three firms, Gemini, Genesis, and DCG, for $1 billion in a supposed crypto fraud scheme. 


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    Naga Avan-Nomayo

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  • Ethereum ETFs – What’s Casting Doubt On Their Fate?

    Ethereum ETFs – What’s Casting Doubt On Their Fate?

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    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.

    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.

    Ether market cap currently at $484 billion. Chart: TradingView.com

    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 breaking past the $4k barrier. Source: Coingecko

    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

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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    Christian Encila

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  • Is Ethereum (ETH) a Security? SEC Chair Still Won’t Say

    Is Ethereum (ETH) a Security? SEC Chair Still Won’t Say

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    Gary Gensler, chairman of the U.S. Securities and Exchange Commission (SEC), still won’t give a straight answer on whether Ethereum (ETH) legally classifies as a security.

    During a Thursday interview with Bloomberg, the chairman was asked to clear the regulatory fog surrounding the second-largest cryptocurrency, given that Ethereum spot ETF applications are now piling up on his agency’s desk.

    Why Won’t Gensler Answer?

    Gensler’s response was, as usual, vague – and re-directed listeners to the near-century-old legal precedent established called the Howey Test.

    “On any one of these crypto tokens, it’s about the facts and circumstances as to whether the investing public is anticipating a profit based on the efforts of others,” he said seemingly amused after receiving another “crypto question.”

    “We do have filings in front of us – I’m not gonna comment,” he added.

    Gensler’s hesitancy to answer fuels an era of crypto market confusion dating back to 2018 when former SEC Director William Hinman published a speech espousing his personal view that Ethereum classifies as a commodity, rather than a security.

    Since then, Gensler and the agency have denied making any official statements or proclamations regarding their views on ETH and avoided the question numerous times when asked.

    They’ve also alleged that dozens of other top cryptos including Solana (SOL) and Cardano (ADA) are securities in lawsuits against leading crypto trading platforms including Coinbase and Binance.

    There’s reason to believe the agency views ETH differently, however. Much like Bitcoin, the SEC has approved trading of CME Ether futures. According to Bloomberg ETF analyst James Seyffart, this implies that the asset is viewed as a commodity already.

    Moreover, the Commodities and Futures Trading Commission (CFTC) chairman Rostin Benham has explicitly labeled ETH as a commodity for years, with several crypto-supportive members of Congress taking his side on the matter.

    Testifying before a House committee on Wednesday, the chairman said that Prometheum – an SEC-approved crypto broker – could create more regulatory uncertainty if the SEC allows it to classify ETH as a security on its platform. He is working closely with Gensler on the matter.

    “It would then put our registrants – our exchanges who list Ether as a futures contract – in non-compliance with SEC rules as opposed to CFTC rules,” Benham explained.

    Crypto Is Still A Speculative Place

    Though avoiding the actual question, Gensler made sure to re-emphasize that crypto is a “highly speculative asset class,” referencing Bitcoin’s volatility over the past week. He said:

    “You should be conscious as the investing public that this is a bit of a rollercoaster ride on these volatile assets, and then the question is, how firms it the foundation?”

    Upon approving Bitcoin spot ETFs to trade on public markets in January, Gensler noted that the SEC’s approval was “not an endorsement of Bitcoin,” and claimed that the asset is often used for financial crime.

    Bitcoin is up 53% since the start of the year, briefly touching a new all-time high of $69,200 on Tuesday.

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    Andrew Throuvalas

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  • SEC Requests Court Intervenes in Binance Discovery Process

    SEC Requests Court Intervenes in Binance Discovery Process

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    The SEC’s lawsuit against Binance has been ongoing since June when the regulator served a lawsuit to Coinbase as well.

    The proceedings have had their ups and downs. Since then, the main Binance exchange has settled with the SEC when Binance Holdings Ltd was asked to pay fines adding up to $4.3 billion, and former CEO Changpeng Zhao was forced to step down. CZ is currently out on bond – although he is obligated to remain in the US – until his sentencing.

    Allegations of Obscurantism

    However, Binance.US, legally known as BAM Trading Services, is still grappling with the SEC in court. After previous requests for intervention, the Washington D.C. court, in which the case is being judged, directed the two parties to work together on the discovery process. In a joint report submitted yesterday, the SEC alleges that the two sides have met an impasse.

    According to the watchdog, Binance.US relented in its objections to providing agency representatives with an inspection of its in-house software. However, the SEC claims that the tour was scripted and did not provide any real insights into their inner workings.

    “Despite multiple meet and confers concerning its scope and process, BAM refused to conduct anything more than an unrecorded, mostly choreographed tour of certain relevant software and infrastructure relevant to its Customer Assets. BAM’s counsel also refused the SEC’s requests to review different components of BAM’s software and then refused to answer several questions SEC counsel raised during the inspection.”

    The SEC continues by stating that it now doubts that BAM holds exclusive access to private keys.

    “BAM witnesses have testified that BHL established and still retains custody of the private keys to these wallets in an Amazon Web Services environment that hosts BHL’s servers and wallet software for BAM’s wallets and that BAM had no access to the AWS environment, servers, or software.”

    However, the SEC admitted that BAM had indeed remained cooperative overall, supplementing its answers whenever necessary.

    Binance.US Denies Allegations

    When grilled on the subject, representatives of Binance.US stated that they had provided answers to all of the SEC’s requests, even when they had been “exceptionally broad.”

    According to BAM’s legal team, they had already gone above and beyond their obligations as an institution and had simply declined to offer information on trade secrets that in no way affected the ownership of customer assets.

    The information provided by Binance.US allegedly includes thousands of pages of documents, monthly reports, declarations under oath, and inspections of custody devices.

    BAM therefore requests an end to the discovery process, which would allow the court to proceed with a decision regarding BAM’s affairs eventually.

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    Cristian Lipciuc

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  • Justin Sun Moves $100M To Binance, Stacking Ethereum?

    Justin Sun Moves $100M To Binance, Stacking Ethereum?

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    Justin Sun, the co-founder of Tron–a smart contracting platform for deploying decentralized applications (dapps), is once again moving and shuffling millions of dollars. According to Lookonchain data on February 29, Sun reportedly transferred 100 million USDT to Binance, days after moving huge sums earlier this week.

    Justin Sun moves $100 million USDT to Binance | Source: Lookonchain via X

    Justin Sun Holds Millions Of ETH: Will The Co-founder Buy More?

    From February 12 to 24, a wallet associated with Sun acquired 168,369 ETH for an average price of $2,894. This purchase, valued at roughly $580.5 million, currently holds an unrealized profit of around $95 million. Profitability could increase considering the sharp demand for crypto, especially top coins like Bitcoin and Ethereum, in recent days.

    Ethereum price trending upward on February 29 | Source: ETHUSDT on Binance, TradingView
    Ethereum price trending upward on February 29 | Source: ETHUSDT on Binance, TradingView

    The Ethereum price chart shows that ETH has been on a clear uptrend, rising from around $2,200 in early February to over $3,450 when writing. At this pace, and considering the institutional interest in potent crypto assets, including ETH, the odds of the second most valuable coin stretching gains will be highly likely.

    As Bitcoin inches closer to $70,000, the probability of Ethereum also tracking higher toward its all-time high of around $5,000 will be elevated.

    Since ETH already owns a big stash of coins, there is speculation that the co-founder will double down, buying even more coins. The crypto community will continue watching the address until this happens and there is solid on-chain data to support the purchase.

    Spot Ethereum ETFs And The Dencun Upgrade Are Key Updates

    So far, optimism is high, especially among the broader altcoin community. As Bitcoin races to register new all-time highs pumped by institutional billions, eyes will be on the United States Securities and Exchange Commission (SEC). There are multiple applications for a spot Ethereum exchange-traded fund (ETF). 

    The agency has not provided a definitive timeline for approving or rejecting the derivative product. There is regulatory uncertainty around the status of ETH, a significant headwind that might delay or even prevent the timely authorization of this product.

    Still, the community is looking forward to the next communication in May. If the spot Ethereum ETF is a go, the coin will likely rally to new all-time highs, following Bitcoin.

    However, before then, eyes are on the expected implementation of Dencun. The upgrade addresses challenges facing Ethereum, including scalability. Through Dencun, Ethereum developers hope to lay the base for further throughput enhancements in the coming years.

    With higher throughput, transaction fees drop, overly improving user experience. This upgrade might go a long way in cementing Ethereum’s role in crypto, wading off stiff competition from Solana and others, including the BNB Chain.

    Feature image from DALLE, chart from TradingView

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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    Dalmas Ngetich

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  • Chamber of Digital Commerce Backs Kraken in SEC Lawsuit

    Chamber of Digital Commerce Backs Kraken in SEC Lawsuit

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    The Chamber of Digital Commerce (CDC) has filed an amicus curiae to defend Kraken in a lawsuit the U.S. Securities and Exchange Commission (SEC) initiated in 2023.

    Notably, the CDC supported the crypto exchange’s motion to dismiss the lawsuit in its latest filing.

    Chamber of Digital Commerce Argues for Kraken

    In a February 27 filing, the Chamber explained that the amicus brief aims to address and counter the SEC’s current approach to digital asset industry regulation.

    The CDC’s argument is rooted in the belief that the SEC’s aggressive regulatory tactics, through enforcement actions rather than clear, legislated rules, could stifle innovation within the digital asset space. According to the CDC, the approach is not only hindering economic growth and job creation but also affecting financial inclusion efforts.

    The trade body explained that the SEC’s attempt to apply securities laws to all digital asset transactions broadly is legally flawed. It further asserted that digital assets are not “investment contracts.”

    The body warned that the enforcement efforts by the SEC could impact the trillion-dollar digital asset space and, by extension, the United States economy. Hence, there is a need to bring about clear regulations whereby Congress needs to bring statutory clarity instead of relying on the watchdog’s efforts to regulate.

    Notably, in November 2023, the SEC initiated a lawsuit against Kraken, accusing the cryptocurrency exchange of functioning as an unregistered securities exchange, broker, dealer, and clearing agency. Furthermore, it alleged that Kraken had mixed customer funds with its corporate finances, among other accusations. In response, the firm and its representatives denied the SEC’s allegations, choosing to challenge the lawsuit in court.

    Kraken Launches Institutional Platform

    Meanwhile, the exchange has launched a new division, Kraken Institutional, dedicated to serving institutional clients to capture a portion of the market for spot Bitcoin exchange-traded funds (ETFs).

    The institution brand aims to combine the existing institutional services, such as crypto staking for clients outside the United States and spot and over-the-counter trading crypto staking. The target audience, it explained, is asset managers, hedge funds, and high-net-worth individuals.

    Tim Ogilvie, the co-founder of Staked (which was acquired by Kraken in December 2021), will lead the newly established division. Ogilvie noted the rapidly growing institutional interest in crypto owing to the recent approval of Bitcoin ETFs.

    Kraken Institutional is entering into direct competition with established players such as Coinbase Institutional and Coinbase Prime, which were launched in 2021 to serve institutional investors. Kraken Institutional faces competition from Binance Institutional, which was introduced in mid-2022.

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    Wayne Jones

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  • Altcoin Market Cap Break From “Wyckoff Accumulation Phase”: Will Ethereum, XRP Fly?

    Altcoin Market Cap Break From “Wyckoff Accumulation Phase”: Will Ethereum, XRP Fly?

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    In a post on X, one analyst observes that the altcoin market capitalization has broken from the Wyckoff accumulation phase. With this upswing, the trader expects altcoin prices to move higher.

    This refreshing breakout coincides with Bitcoin’s (BTC) stellar performance when writing on February 28. At spot rates, the coin is trading above $60,000, a psychological round number- now supported- and is closely approaching $70,000. 

    The Altcoin Breakout From Accumulation

    The “Wyckoff accumulation pattern” is a concept developed by technical analysts to pick out potential buying opportunities, in this case, altcoins. Whenever prices are in this phase, it is widely believed that the so-called “smart money” or large institutional players are accumulating at low prices. 

    Altcoin market cap breaking out | Source: Analyst on X

    Currently, prices consolidate at tight ranges and with low trading volumes. A signal marking the end of this accumulation is a sharp breakout, lifting prices above the defined range. Often, this upswing is with rising trading volume. 

    Looking at the chart, the altcoin market cap has broken above the accumulation phase. With previous resistance and support, the altcoin market cap will likely continue floating higher. As such, top altcoins, including Ethereum (ETH), Solana (SOL), and XRP, will follow suit, posting fresh 2024 highs. 

    Why Spot Bitcoin ETFs Give BTC Edge In This Bull Run

    So far, Bitcoin is leading the way, posting over $10,000 in less than a week. However, with the coin trading above $60,000, its demand-side drivers differ entirely from what’s influencing altcoins. The approval of spot Bitcoin exchange-traded funds (ETFs) by the United States Securities and Exchange Commission (SEC) has seen billions of dollars flow to the world’s first cryptocurrency.

    Therefore, while altcoins have historically outperformed BTC when crypto prices rally, there is an edge with spot Bitcoin ETFs. As such, this bull run will likely differ from 2017 and 2021. This forecast is because institutions will likely favor a regulated asset over altcoins whose status remains undefined. 

    Ethereum price trending higher on the daily chart | Source: ETHUSDT on Binance, TradingView
    Ethereum price trending higher on the daily chart | Source: ETHUSDT on Binance, TradingView

    As of late February 2024, the United States SEC has not approved spot ETFs of any altcoin, including that of Ethereum. Additionally, the agency has labeled several top altcoins, including Cardano (ADA), unregistered securities. The agency even filed lawsuits against major exchanges like Binance and Coinbase, accusing them of facilitating the trading of what the commission described as “unregistered securities.”

    It is not immediately clear whether the United States SEC will change their preview of leading altcoins, especially Ethereum (ETH), which has a market of over $400 billion. Wall Street heavyweights like BlackRock and Fidelity remain interested in launching spot Ethereum ETFs. 

    Feature image from DALLE, chart from TradingView

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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    Dalmas Ngetich

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  • Texas man made $1.76 million from insider trading by eavesdropping on wife’s business calls, Justice Department says

    Texas man made $1.76 million from insider trading by eavesdropping on wife’s business calls, Justice Department says

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    A man from Houston overheard his work-from-home spouse talking business, and used that information to make over $1.7 million in an insider trading scheme, federal authorities said.

    Tyler Loudon, 42, pleaded guilty Thursday to securities fraud for buying and selling stocks based on details gleaned from his wife’s business conversations while both were working from home. He made $1.7 million in profits from the deal, but has agreed to forfeit those gains, the Justice Department announced in a news release.

    Things might have turned out differently had Loudon or his wife decided to work from, well, the office.

    Loudon’s wife worked as a mergers and acquisition manager at the London-based oil and gas conglomerate BP. So when Loudon overheard details of a BP plan to acquire TravelCenters, a truck stop and travel center company based in Ohio, he smelled profit. He bought more than 46,000 shares of the truck stop company before the merger was announced on February 16, 2023, at which point the stock soared almost 71%, according to the Securities and Exchange Commission.

    Loudon then allegedly sold the stock immediately for a gain of $1.76 million. His spouse was unaware of his activity, according to the U.S. Attorney’s Office for the Southern District of Texas.

    Loudon will be sentenced on May 17, when he faces up to five years in federal prison and a possible fine of up to $250,000, according to the U.S. attorney’s office. He may also owe a fine in addition to other penalties in order to resolve a separate and still pending civil case brought by the SEC.

    “We allege that Mr. Loudon took advantage of his remote working conditions and his wife’s trust to profit from information he knew was confidential,” said Eric Werner, Regional Director of the SEC’s Fort Worth Regional Office. “The SEC remains committed to prosecuting such malfeasance.”

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  • Ethereum ETF: Franklin Templeton Enters The Fray As ETH Rallies

    Ethereum ETF: Franklin Templeton Enters The Fray As ETH Rallies

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    Wall Street titan and Asset manager Franklin Templeton has applied for an Ethereum Spot Exchange-Traded Funds (ETF) after a struggle to gain approval for their Bitcoin Spot ETF in early January.

    Asset Manager Files For Spot Ethereum ETF

    Asset managers have gravitated toward the Ethereum spot ETF since the United States Securities and Exchange Commission (SEC) approved the Spot Bitcoin ETF. Franklin Templeton is the latest manager to apply with the SEC to get approval for this financial product. 

    The asset manager’s move came after successfully introducing the BTC spot ETFs. This is a notable step toward making more crypto investment products accessible to institutional and individual investors.

    James Seyffart, a senior analyst from Bloomberg Intelligence, also shared the update with the crypto community on X (formerly Twitter). Seyffart’s X post included a screenshot of the asset manager’s filing and data regarding other applicants.

    According to the post, Franklin Templeton is the eighth company in the cryptocurrency market to file for product approval. Previous asset managers to file applications for Ethereum ETFs include Hashdex, BlackRock, Fidelity, Ark and 21Shares, Grayscale, VanEck, Invesco, and Galaxy. 

    Per the official filing, a Delaware statutory trust is how the Franklin Ethereum Trust is set up. The ETF aims to give investors access to ETH in a regulated manner by allowing them to store it directly through a custodian.

    It states in the company’s S-1 filing that the proposed “Franklin Ethereum Trust” will hold ETH and “may, from time to time, stake a portion of the fund’s assets through one of the more trusted staking providers.”

    Staking is the act of locking up digital currency to maintain the operations of a blockchain network. They plan to stake some of the ETF’s ETH holdings to supplement its income through staking rewards.

    The Price Of ETH Rallies Amidst The Update

    Franklin Templeton’s spot Ethereum ETF application was made in light of the price of ETH experiencing an uptick. However, no solid proof exists that the latest development impacted the price of crypto assets.

    Related Reading: Ethereum ETFs Approval Date Set For May 23, Forecasts Suggest ETH Could Reach $4,000

    Ethereum was trading at $2,661 as of press time, indicating an increase of over 7% in the past 24 hours. Data from CoinMarketCap shows that its market capitalization is also on the upside, marking an increase of over 7%. 

    Meanwhile, its trading volume has increased significantly by over 172% in the past day. Due to the rise, ETH now ranks third in the entire crypto market by trading volume.

    ETH trading at $2,679 on the 1D chart | Source: ETHUSDT on Tradingview.com

    Featured image from iStock, chart from Tradingview.com

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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    Godspower Owie

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  • Court orders Elon Musk to testify in the SEC’s investigation of his Twitter takeover

    Court orders Elon Musk to testify in the SEC’s investigation of his Twitter takeover

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    In a followup to a tentative ruling made in December, a federal judge has ordered Elon Musk to comply with the U.S. Securities and Exchange Commission’s (SEC) subpoena and testify again in its probe of his Twitter takeover, Reuters reports. Per the order, which was filed Saturday night in a California court, Musk and the SEC now have a week to work out a time and place for his appearance or it will be decided for them. The SEC has been investigating Musk’s purchase of Twitter, now X, since 2022 over concerns about his lateness in disclosing his stake in Twitter.

    The order comes after Musk failed to appear for a testimony in September and later refused to attend a rescheduled interview, prompting the SEC to sue. US Magistrate Judge Laurel Beeler sided with the SEC after Musk tried to challenge its subpoena, which he claims is seeking irrelevant information and is harassment, as he’s already been interviewed twice. But, the SEC says it has obtained new documents in relation to the probe and has further questions for the X owner. Musk also argued that the subpoena exceeds the SEC’s authority because it was issued by a staff member appointed by the SEC’s Director of Enforcement. Beeler struck these arguments down, ruling that the subpoena is valid.

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    Cheyenne MacDonald

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  • SEC Delays Decision on Invesco-Galaxy Spot Ethereum ETF Proposal

    SEC Delays Decision on Invesco-Galaxy Spot Ethereum ETF Proposal

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    The United States Securities and Exchange Commission (SEC) has again delayed its decision on whether to approve or not a joint spot Ethereum exchange-traded fund (ETF) proposed by Invesco and Galaxy Digital.

    This marks the second postponement after a similar delay in December and aligns with the SEC’s recent trend of pushing back deadlines for Ethereum ETF proposals.

    SEC to Institute Proceedings

    According to a Tuesday filing, the SEC indicated that it was “instituting proceedings,” delaying the decision-making process on the proposed ETF.

    “Institution of proceedings is appropriate at this time in view of the legal and policy issues raised by the proposed rule change,” the filing stated.

    The agency has also extended deadlines for other spot Ethereum ETF proposals, including one from Grayscale Investments. Similar to its inquiry with Grayscale, the SEC raised questions regarding Ethereum’s proof-of-stake mechanism and the potential for concentration of control or influence by a few entities. These factors could pose unique concerns related to fraud and manipulation.

    The SEC can extend the Invesco-Galaxy spot Ethereum ETF review period for up to 240 days before reaching a final decision. Invesco filed the proposal with the commission in October 2023, and it was published in the Federal Register in November, setting the deadline for the SEC’s decision to July 2024.

    Meanwhile, stakeholders have a limited time to submit their comments on the Invesco-Galaxy Ethereum ETF proposal. Comments are due within 21 days, followed by a 35-day rebuttal period, according to the SEC.

    Market Analysts Remain Uncertain

    The delay in approving spot Ethereum ETFs has left market analysts uncertain when such investment vehicles might gain approval.

    While some analysts at Standard Chartered suggest that approval could come as soon as May 23, others, like Bloomberg Intelligence analyst James Seyffart, anticipated the recent delay, stating, “100% expected, and more delays will continue to happen in coming months.”

    Seyffart emphasized that the critical date for spot Ethereum ETFs remains May 23, which is VanEck’s final deadline for approval.

    The SEC’s recent decision to approve several spot Bitcoin ETFs prompted speculation about a similar approach toward Ethereum-based investment vehicles. However, Gensler clarified in a statement that the SEC’s move last month was specific to that cryptocurrency and should not be interpreted as a broader endorsement of cryptocurrency ETFs.

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  • SEC’s new rules on dealers could rope in defi liquidity providers

    SEC’s new rules on dealers could rope in defi liquidity providers

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    The SEC is adopting stricter compliance rules for large capital investors in Treasury Markets, but some provisions seem to impact decentralized finance users.

    On Feb. 6, the U.S. Securities and Exchange Commission (SEC) adopted two rules mandating that market participants engaging in substantial liquidity-providing activities register with the watchdog and join a self-regulatory organization, thus complying with regulatory obligations and federal financial laws.

    Initially proposed in March 2022 and geared toward bolstering Treasury market safety, the rules include provisions that speak to crypto asset securities. Defi investors providing over $50 million in liquidity to automated market makers, like Uniswap, will fall under the SEC’s purview if this legislation is enforced.

    A 3-2 vote settled the SEC’s deliberation on the rules, with Commissioner Hester Peirce and Mark Uyeda opposing the proposal. Commissioners Gary Gensler, Caroline Crenshaw, and Jaime Lizarraga supported the idea.

    This rulemaking targets proprietary trading funds, private funds, and others who make money by buying low and selling high in the Treasury market, while creating additional regulatory confusion in other markets, including crypto asset securities.

    Mark Uyeda, SEC commissioner

    Crypto proponents such as the Blockchain Association and the DeFi Education Fund pushed back on the policies in comments letter when the rules were first introduced. Miller Whitehouse Levine, CEO of the DeFi Education Fund, argued that the expanded definition of a market dealer was too ambiguous and left several unaddressed concerns regarding defi protocols.

    Commissioner Peirce questioned how an automated market maker (AMM), essentially software, might register with the SEC and how many firms the new rules would impact. Haoxiang Zhu, the SEC’s director for the trading and markets division, said the proposal was aimed at individuals leveraging decentralized software rather than the technology itself. 

    Zhu added that limited information and sweeping non-compliance from defi actors made it difficult to pinpoint the participants who would be affected.

    One of the reasons they’re not compliant is they can’t figure out what our rules are. They can’t even figure out when we think that something is a security.

    Hester Peirce, SEC commissioner


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  • Ripple Initiates Large XRP Transactions Post Legal Setback

    Ripple Initiates Large XRP Transactions Post Legal Setback

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    Ripple Labs, a leading cryptocurrency payment firm, has been seen moving millions of XRP tokens following the United States Securities and Exchange Commission’s (SEC) recent victory in a legal dispute.

    Ripple Moves Millions Of XRP As Price Holds Steady

    According to a recent report, Ripple Labs moved a whopping 120 million XRP tokens valued at about $60.8 million. The move has caused quite a stir within the XRP community and heightened sell-off anxiety in the face of increased market volatility.

    This comes after the payment firm experienced a legal setback in court on Monday. The SEC’s motion to force Ripple to provide its financial statements for XRP was granted by the Southern US District Court of New York.

    It was reported by Bithomp that the aforementioned funds were transferred to a Ripple-related wallet that was used for massive transfers. Data from Bithomp revealed that the wallet address rBg2Fu…uJ4vt5x1o91m moved the funds to a separate wallet address rP4X2hTa7…XvPz7XZ63sKxv3. This indicates that the transaction might include the transfer of such large amounts using other wallets or companies under Ripple’s control.

    Furthermore, the transfer might just be connected to Ripple’s payment services. As a result, it will allow banks to utilize XRP to send funds across borders almost instantly and for a minimal cost. 

    It is noteworthy that the address that received the funds has transferred a notable portion of the XRP tokens. However, the address still contains about 90 million XRP valued at approximately $45 million.

    Bithomp also reported that the firm was seen moving about 53.75 million XRP tokens valued at about $27.5 million. Data from the on-chain platform shows that the wallet address rKveEy…ZsoGMb3PEv transferred the funds to another wallet address rPfSrrKY…R7g1tYzDDJoAys.

    The Payment Firm Brings XRP To The US Market

    Ripple has announced its plan to transform international payments in the US with XRP and its payment services. According to the firm, they will be introducing “new product updates that will cover the majority of US states.”

    These fresh products are going to be powered by its Money Transmitter Licenses (MTLs). Initially, Oliver Segovia, Senior Director and Head of Product Marketing for Payments at Ripple, shared the announcement on Linkedin. 

    Segovia explained that although Ripple’s global headquarters is located in the US, 90% of its businesses serve organizations outside. Specifically, he acknowledges that for the last three years, the firm has remained somewhat quiet in the US market.

    Despite these developments, XRP’s price has still been down by 5.42% in the past week, holding steady at $0.50. Interestingly, its trading volume has increased by over 25% in the past 24 hours.

    XRP trading at $0.5039 on the 1D chart | Source: XRPUSDT on Tradingview.com

    Featured image from iStock, chart by Tradingview.com

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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  • Change of Heart: South Korea to Discuss Spot Bitcoin ETFs With US SEC (Report)

    Change of Heart: South Korea to Discuss Spot Bitcoin ETFs With US SEC (Report)

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    Speculation about the South Korean government rethinking its hostile stance on spot Bitcoin exchange-traded funds (ETFs) may be true, as the country’s financial regulator has officially indicated interest in the products.

    A report from local media outlet Hankyung has revealed that the Financial Supervisory Service (FSS) of South Korea intends to meet with the United States Securities and Exchange Commission (SEC) to discuss the crypto industry and spot Bitcoin ETFs.

    FSS to Meet U.S. SEC for Crypto ETF Talk

    According to the report, FSS chief Lee Bok-hyun is expected to visit the U.S. later this year to meet with SEC chair Gary Gensler. He announced the visit on Monday while revealing his business plans for 2024 at the Financial Supervisory Service in Yeouido, Seoul.

    The FSS director said he and Gensler would discuss Korea discount measures like spot Bitcoin ETFs and corporate value-up programs.

    “I will meet with SEC Chairman Gary Gensler (this year), and there are areas where we will focus on issues such as virtual asset issues and Bitcoin spot ETF. Now, the impact of SEC policy on the world, this is important,” he stated.

    A Possible U-Turn

    Director Bok-hyun’s announcement comes less than a month after the SEC approved the first wave of spot Bitcoin ETFs in the U.S. The agency’s decision followed a decade of rejecting proposals brought by several asset management firms.

    The South Korean government initially reaffirmed its commitment to maintaining the ban on crypto ETFs despite the SEC’s approval. Regulators in the country insisted that cryptocurrencies would not be recognized as financial assets and there would be no policy adjustments to favor the budding sector.

    However, the country’s stance appeared shaky when Sung Tae-yoon, the recently appointed Presidential Chief of Staff, urged the South Korean Financial Services Commission (FSC) to align its crypto viewpoint with international standards by allowing investment vehicles like ETFs. He said having a yes or no stance was unnecessary, but allowing ETFs as investment elements was crucial.

    With a possible U-turn around the corner, South Korean investment giants are speculating that demand for the products, if launched, would be “solid.”

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  • SEC wins motion to disclose Ripple financial statements, XRP sales details

    SEC wins motion to disclose Ripple financial statements, XRP sales details

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    A federal judge ruled that Ripple must disclose its financial records and details of XRP sales in the SEC’s lawsuit over an unregistered securities offering.

    Judge Sarah Netburn ruled in favor of the SEC, ordering Ripple to disclose its financial statements for 2022-2023. The decision aims to shed light on Ripple’s financial dealings and the impact of its post-complaint contracts and institutional XRP sales on the case’s outcome.

    “At this stage, the Court sees no basis to short-circuit that inquiry by denying access to readily available information that may be probative to the remedy stage,” Netburn said.

    Ripple must also produce documentation related to its contracts and institutional XRP sales proceeds following the SEC’s complaint filing. The court refuted Ripple’s concerns about the potential for a mini-trial, highlighting the importance of these documents in determining appropriate injunctions and civil penalties.

    “Because the SEC has made a sufficient showing that this information may assist the court in fashioning its remedy, Ripple must respond to the interrogatory,” Netburn said.

    The directive is part of a broader legal conflict that started in 2020 when the SEC accused Ripple Labs of executing an unregistered securities offering worth $1.3 billion. Despite Ripple’s argument that the SEC’s request was “untimely” and “irrelevant,” the court has set a Feb. 12 deadline for discovery related to the case’s potential remedy.

    The case has seen varied rulings, including a July 2023 decision by Judge Analisa Torres, which found that Ripple’s institutional sales of XRP constituted a securities offering, albeit programmatic sales did not.


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  • Bitcoin reaches highest monthly volume since September 2022

    Bitcoin reaches highest monthly volume since September 2022

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    In January, analysts recorded a record trading volume in the blockchain of the first cryptocurrency; the figure amounted to $1.21 trillion.

    The last time trading volume on the Bitcoin network rose above $1 trillion was only in September 2022, according to The Block. At that time, Bitcoin (BTC) was trading at around $20,000.

    Source: The Block

    According to CoinMarketCap, the first cryptocurrency is trading at $43,089 at the time of writing. Over the past 24 hours, the asset’s price has strengthened by 0.6%. The highest level over the past 24 hours was $43,147 and the lowest was $42,283. Bitcoin’s market capitalization is now $845 billion, with daily trading volume exceeding $15.6 billion.

    Bitcoin reaches highest monthly volume since September 2022 - 2
    Source: CoinMarketCap

    The sharp increase in BTC trading volumes was accompanied by the approval of spot Bitcoin ETFs on Jan. 10 by the Securities and Exchange Commission (SEC). On the first day, the volume of exchange trading in new investment instruments exceeded $4.5 billion, and the price of BTC immediately rose to $48,800.

    Another cryptocurrency that set a record was the surging of Solana (SOL). In January, the volume of transactions on the Solana network was up 30% compared to last month. Thus, the figure almost reached $1 trillion – $951.9 billion. Such a surge in activity has not been observed in the SOL blockchain for nearly two years.

    The growth in transaction volume was primarily due to the excitement around the airdrop from the Jupiter aggregator. In addition, the rise in the value of SOL and the popularity of the new meme coin WEN also affected the indicator.


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    Anna Kharton

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  • Crypto Mom Disagrees With SEC’s Denial of Petition to Amend Gag Rule

    Crypto Mom Disagrees With SEC’s Denial of Petition to Amend Gag Rule

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    Hester Peirce, a commissioner for the United States Securities and Exchange Commission (SEC), has expressed her disagreement with the agency’s denial of a petition to amend a rule that prevents defendants from denying any allegations in settlement enforcement actions.

    According to an official statement from the commissioner, popularly known in the digital asset community as “Crypto Mom,” the prohibition of denials from defendants prohibits the American public from lodging criticisms against the government and assessing its credibility.

    SEC Denies Petition to Amend Gag Rule

    The gag rule is a part of the SEC’s policy adopted in 1972, which requires defendants to agree that they will not take any action or make public statements denying any allegations in the complaints brought against them.

    In essence, the rule does not permit respondents to consent to a judgment or order that imposes a sanction while denying the complaint’s allegations; otherwise, the SEC can ask the court to vacate the settlement. This is to ensure that they do not create the impression that the complaints are without factual basis.

    Peirce explained that the result of the rule is that the respondent agrees to rescind past in-court statements contesting the truth of the regulator’s allegations, promising never to do so or permit others to challenge the accusations for the case to remain settled.

    The petition, brought by the New Civil Liberties Alliance (NCLA), asked the agency to amend the rule to allow a defendant to consent to a judgment in which they admit, deny, or neither admitted nor denied the allegations in the complaint.

    However, the SEC denied the petition on the grounds that the NCLA’s arguments have no merit and that the gag rule is “a proper exercise of the Commission’s authority to decide how it will pursue its enforcement mission and settle cases.”

    Undermining Regulatory Integrity

    Despite the SEC’s claims, Crypto Mom believes otherwise.

    “I agree with the petitioner that this issue warrants a spot on our rulemaking agenda. One thing I love about this country is that Americans can and often do criticize their government…This freedom to speak against the government and government officials is essential in a free society committed to the preeminence of the people,” she stated.

    The commissioner insisted that the policy of denying defendants the right to criticize a settlement after it is signed publicly undermines regulatory integrity and raises First Amendment concerns.

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  • Bankrupt Genesis Global Resolves SEC’s Earn Lawsuit

    Bankrupt Genesis Global Resolves SEC’s Earn Lawsuit

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    Crypto lender Genesis Global has settled with the U.S. Securities and Exchange Commission (SEC) in a lawsuit related to its bankrupt Gemini Earn lending program.

    As part of the deal, Genesis has agreed to pay a $21 million civil penalty, contingent upon the full repayment of customers during its ongoing bankruptcy proceedings.

    Genesis Agrees to $21 Million Settlement

    The agreement, filed in U.S. Bankruptcy Court in Manhattan on Wednesday evening, allows Genesis to evade the expenses and uncertainties associated with defending itself against the SEC’s allegations of illegally selling securities.

    While Genesis did not admit or deny wrongdoing in the settlement, the resolution will enable the company to focus on repaying customers and other creditors during its bankruptcy proceedings. The deal stipulates that the $21 million fine will only be enforced if Genesis successfully fulfills its financial obligations to creditors.

    To expedite the resolution and streamline the bankruptcy process, Genesis is pushing forward with a liquidation plan that aims to repay customers in cash or cryptocurrency, depending on the types of currency deposited in the Earn program. The company will seek court approval of its bankruptcy plan on February 14.

    The settlement agreement is pending approval by a bankruptcy judge and, if successful, will mark a significant step in resolving the legal challenges surrounding the Gemini Earn program.

    Genesis Faces Potential Industry Ban

    The SEC lawsuit against Genesis was initiated just before Genesis sought bankruptcy protection in January 2023. The legal dispute revolved around Genesis and Gemini Trust, jointly overseeing the Gemini Earn program.

    Launched in December 2020, the program allowed Gemini customers to lend their crypto assets to Genesis, earning interest and amassing billions in crypto assets from investors.

    Allegations from the SEC accused both companies of illegally selling securities to hundreds of thousands of investors through the program. The collaboration stopped during a crypto market downturn in November 2023, leading to legal proceedings between Genesis, Gemini, and Genesis’s parent company, Digital Currency Group (DCG).

    Meanwhile, Genesis, Gemini, and DCG are facing a parallel enforcement action initiated by New York Attorney General Letitia James. The Attorney General seeks to ban these companies from the financial investment industry in New York while obtaining restitution for affected investors and securing the disgorgement of ill-gotten gains.

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  • Cboe BZX Withdraws Application for Global X Bitcoin ETF Listing

    Cboe BZX Withdraws Application for Global X Bitcoin ETF Listing

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    As stated in an SEC filing on Tuesday, the ETF provider Global X has withdrawn its application for a spot in Bitcoin ETF.

    The CBOE BZX Exchange submitted a notice of withdrawal for the Global X Bitcoin Trust on January 26, roughly two weeks after the SEC approved 11 other spot Bitcoin ETFs.

    Global X Withdraws Application

    The Global X Bitcoin Trust’s initial application was submitted in August 2023, and despite two extensions for consideration in September and November, the exchange officially withdrew its proposal on January 26. As of December 2023, Global X had approximately $51 billion in assets under management in its ETFs worldwide.

    Bloomberg Intelligence ETF analyst James Seyffart commented on the withdrawal, stating that it was not surprising, given prior indications. Seyffart mentioned in a post on X that the official withdrawal request for Global X ETFs’ Bitcoin ETF was expected, as it was known they were no longer in contention since at least early December.

    The decision to withdraw the application for a spot Bitcoin ETF comes amid a complex regulatory backdrop, notably characterized by the SEC’s landmark approval of spot Bitcoin ETFs on U.S. exchanges on January 10. While this marked a significant step forward, the overall regulatory environment remains uncertain.

    Spot Bitcoin Approvals in the Spotlight

    Earlier this month, the SEC approved 11 spot Bitcoin ETFs, including BlackRock’s iShares Bitcoin Trust (IBIT.O) and Grayscale Bitcoin Trust (GBTC.P), among others, concluding a decade-long struggle with the digital asset industry.

    The move has sparked speculation about the SEC potentially approving spot Ethereum exchange-traded products in the near future. The commission has extended deadlines for proposals from asset managers BlackRock and Grayscale, with final decisions anticipated in May.

    Despite approximately $5 billion in outflows from the Grayscale Bitcoin Trust following its conversion to an ETF as of January 26, there were $759 million in net inflows across all spot Bitcoin ETFs approved by the SEC on January 10.

    Attention is now focused on the possibility of a spot Ethereum ETF, with notable firms such as Fidelity and BlackRock recently submitting applications for such products. Meanwhile, industry experts remain cautiously optimistic, awaiting the SEC’s final decisions on pending spot Ethereum applications.

    While some, like Bloomberg ETF analyst Eric Balchunas, predict a high likelihood of approval by May, others, including Morgan Creek Capital’s CEO Mark Yusko, express more conservative estimates, highlighting the ongoing uncertainty in this evolving sector.

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