Dispatch #193: ETH ETFs Approved

May 24 4 min read

Dispatch

In this patch of your weekly Dispatch:

Bitcoin ETFs’ Streak 🎱
Nvidia’s Domination 📊
EU’s Own Blockchain 🇪🇺

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The Big Idea

The Facts and the Rumours in Ether’s Rally

We’re skipping the niceties and diving straight into the action – it’s been a huge week for Ethereum. How huge, you may ask? Ethereum started the week with a market cap of around $370B and in less than 24 hours reached a valuation of over $450B. That rise came equivalent to Solana’s entire capitalization…

ETH ripped up the charts to over $3,800 for a 30% rise from the depths of $3,000. Those struggles have been documented in Dispatch #180, which suspected that Ether’s stage is set. And now that the crowd is here (you’ll see more in This Week’s Most Interesting Data Story), are we gonna see the grand act – a US-based spot Ether ETF?

We did just that. The SEC approved eight spot Ethereum ETFs on Thursday. This monumental news comes after weeks of speculation and market anticipation. Here’s how it unravelled:

Ether's price surged over 10% after their predicted chances of SEC approval for spot Ether ETFs from 25% to 75%.

The SEC requested Nasdaq, CBOE, and NYSE to revise their applications to list spot Ether ETFs, hinting at possible approval.

Major ETF issuers, including Fidelity and Ark Investment, have removed staking from their proposed spot Ether ETFs, aligning with regulatory concerns on centralization risks.

The SEC has approved Nasdaq, CBOE, and NYSE applications to list ether ETFs, surprising the industry. While final approval is still needed, this marks a major step towards trading these products.

So why are we seeing all this movement now? Cointelegraph turned to Nexo’s Andrey Stoychev for insight, commenting that it could all come from a major shift in the White House, where the presidential election is looming and a battle for votes has commenced.

And there’s merit, as the US House of Representatives approved the Financial Innovation and Technology for the 21st Century Act. The overwhelming bipartisan support for the FIT21 legislation showcases a promising shift towards comprehensive crypto regulations, setting the stage for a more secure and innovative future in the digital asset space. That’s all the Big Idea we need for now.

The Latest In…

So, Banks Are Now in Love with Bitcoin?

We can’t leave good ol’ Bitcoin unattended for in Dispatch, not when the asset-tied ETFs registered an eight-day inflow streak – here are the highlights of the week:

Standard Chartered Bank anticipates a bullish trend for Bitcoin, projecting it to surpass its latest all-time high during the weekend. Analyst Geoff Kendrick’s prognosis is not his first one – he has shared year-end price targets of $150,000 for 2024 and $200,000 for 2025 already.

U.S. Bitcoin spot ETFs witnessed eight consecutive days of inflows. Overall, Bitcoin ETFs have amassed over 850,000 Bitcoins, inching closer to a global milestone of 1,000,000 BTC. Regulatory hurdles persist, but Glassnode data suggests a positive market sentiment, with reduced selling pressure and volatility hinting at a potential market shift.

The Latest In…

Nvidia: The Pilot in the AI Plane

Nvidia reported outstanding Q1 earnings, with $26B in revenue, beating expectations. The company announced a 10-for-1 stock split and increased dividends. Nvidia's success, driven by strong AI demand, boosted AI-focused cryptocurrencies, with tokens like Fetch.ai (FET) and Render (RNDR) rising 4%-5%, while the Near Protocol token (NEAR) saw a 2% rise. Nvidia's data center revenue surged 427% to $22.6B, underscoring the company's dominance in AI technology.

The Latest In…

Get The Popcorn: EU Battles the USA in Blockchain

The European Union has launched “Europeum”, a blockchain infrastructure initiative aimed at reducing dependence on U.S. technology and enhancing data transfer and record-keeping across its 27 member states. Announced during a telecommunications ministers meeting, Europeum aims to improve transparency, security, and efficiency for individuals and businesses. Ten member states, including Italy, Poland, and Greece, will help implement the blockchain, with more countries expected to join. This initiative is part of the EU's broader effort to create sovereign digital infrastructure under the Digital Decade Policy Programme 2030.

The Week’s Most Interesting Data Story

The All-time High Before the All-time High?

Ethereum traders have made themselves heard as ETH futures climb to an all-time high of $14B in open interest. This rise aligns with Ethereum's latest price spike to over $3,700 and increasing optimism for the approval of spot Ether exchange-traded funds by the SEC.