SEC likely to reject Ethereum spot ETF applications

It looks like the SEC is gearing up to rain on Ethereum’s parade. Insiders are saying that the agency is likely to reject the pending Ethereum spot ETF applications, which could be a major blow to those hoping for a more mainstream way to invest in the second-largest cryptocurrency.

Meanwhile, Bitcoin seems to be holding steady above the $64,000 mark, but it’s not all good news on the ETF front. Outflows from Bitcoin ETFs have hit a whopping $200 million, which could be a sign that some investors are getting cold feet. Despite the hype a week after the halving and the entry of big players like Fidelity into the space, the crypto market is still subject to plenty of volatility and uncertainty.

On the regulation front, Consensys isn’t taking the SEC’s stance on Ethereum lying down. The firm is suing the agency, claiming that its classification of Ethereum as a security is a case of regulatory overreach. It’s a bold move that could have major implications for the future of Ethereum and the wider crypto space. If Consensys wins, it could open the door for more innovation and investment in the Ethereum ecosystem. If the SEC prevails, it could mean more red tape and restrictions for projects built on the platform.

Today’s Newsletter

• SEC likely to reject Ethereum spot ETF applications, insiders say
• Bitcoin stable above $64K while ETF outflows hit $200M
• Consensys sues SEC over Ethereum classification, claims regulatory overreach

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ETHEREUM

SEC likely to reject Ethereum spot ETF applications, insiders say

The SEC is expected to reject the pending Ethereum spot ETF applications, according to insiders familiar with the matter. This news comes as a disappointment to many in the crypto community who had hoped that the approval of these ETFs would provide a more accessible way for mainstream investors to gain exposure to Ethereum, the second-largest crypto by market capitalization.

The SEC’s reluctance to approve Ethereum spot ETFs is not entirely surprising, given the agency’s cautious approach to the crypto space and its ongoing concerns about market manipulation and investor protection.

However, the decision could have significant implications for the future of Ethereum and the wider crypto market, as it may limit the flow of institutional capital into the space and dampen enthusiasm for other crypto-related investment products. [cryptobriefing]

BITCOIN

Bitcoin stable above $64K while ETF outflows hit $200M

Bitcoin has managed to maintain its position above the $64,000 level, providing some stability in an otherwise turbulent crypto market. This resilience is particularly notable given the recent outflows from Bitcoin ETFs, which have totaled around $200 million in recent weeks.

The outflows suggest that some investors may be taking profits or reducing their exposure to Bitcoin, possibly in response to the uncertainties surrounding the upcoming halving event or the broader macroeconomic environment. The fact that Bitcoin has held steady despite these outflows is a testament to the underlying strength of the alpha and the continued interest from long-term investors. [coindesk]

REGULATION

Consensys sues SEC over Ethereum classification, claims regulatory overreach

Consensys has filed a lawsuit against the SEC, challenging the agency’s classification of Ethereum as a security. The company argues that the SEC’s stance represents a case of regulatory overreach and could stifle innovation in the crypto space. The outcome of this lawsuit could have far-reaching implications for the future of Ethereum and the wider crypto ecosystem.

If Consensys gets a win here, it could pave the way for more regulatory clarity and support for projects built on the Ethereum platform, encouraging further investment and development.

However, if the SEC’s position is upheld, it could lead to increased scrutiny and compliance burdens for Ethereum-based projects, potentially slowing down the pace of innovation. [cryptobriefing]

Other News

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Centralized crypto exchanges see $2 trillion surge in trading volumes in Q1: CoinGecko

Iconic ‘Buy Bitcoin’ sign from Yellen’s hearing nets $1 million

Stripe integrates USDC payments across Solana, Ethereum, and Polygon blockchains

Meme coin Dog Go To The Moon surpasses $500 million market cap

Solana sees ‘dramatic increase’ in institutional demand — CoinShares

Worldcoin eyes collaboration with PayPal, OpenAI

Bitcoin bull market may return in $1.4T US liquidity spike. [cointelegraph]

Memecoin airdrops briefly cover cost of Solana ‘Chapter 2’ mobile phone. [theblock]

Franklin Templeton Enables P2P Transfers for BENJI Fund. [thedefiant]

Next Week’s Token Unlocks 

• OP has a scheduled unlock of $56M, with a 2.3% increase in supply, further expanding its $2.4B market cap.
• AGIX is set to unlock $7.8M, amounting to a 0.69% supply increase, in the context of its $1.1B market cap.
• DYDX is expecting a significant unlock of $71M, marking a 10.7% supply increase against its $665M market cap.
• MANTA will have a smaller unlock of $3M, which is a 0.7% increase in supply, impacting its $437M market cap.
• RON prepares for an unlock of $1.2M, representing a 0.1% increase in supply, within its $903M market cap.

• PRIME has an unlock of $30M on the horizon, a 4.4% supply uptick, complementing its $676M market cap.

• ZETA plans for a $6M unlock, equating to a 2.2% supply increase, with a total market cap of $276M.

• PORTAL’s upcoming unlock is $6.4M, which is a 4.3% increase in supply, complementing its $149M market cap.

• GMT expects to unlock $5.5M, translating to a 1% increase in supply, against its $469M market cap.

• YGG will unlock $14M, a significant 4.5% supply increase, affecting its $320M market cap.

• PENDLE is preparing for a smaller unlock of $1.5M, which is a 0.3% supply increase, against its $531M market cap.

Vince & Diego