TronWeekly

Crypto World News

You are here: Home / Search for "grayscale bitcoin trust"

Search Results for: grayscale bitcoin trust

Fidelity Seeks Regulatory Green Light: Takes Center Stage in Ethereum ETF Race

by

Fidelity, a major player in asset management with over $4.5 trillion in assets, has officially submitted an application for a Spot Ethereum Exchange-Traded Fund (ETF). This strategic decision came on the heels of BlackRock’s similar application for an Ethereum ETF last week.

The filing highlights Fidelity’s commitment to safeguarding U.S. investors in the crypto space, emphasizing that approval for a Spot ETH ETF would mitigate risks faced by investors seeking exposure through alternative and riskier avenues.

Referencing the recent Grayscale court ruling, the filing underscores the court’s criticism of the SEC’s lack of a coherent reason for rejecting spot crypto ETFs while allowing futures-based products. This legal backdrop lends weight to Fidelity’s application.

Bloomberg ETF analyst James Seyffart highlighted that, to the best of my knowledge, they are the seventh entity to file for a spot at Ethereum. The initial six filings are as follows:

image 67
Fidelity Seeks Regulatory Green Light: Takes Center Stage in Ethereum ETF Race 2

Moreover, it’s worth mentioning that Hashdex’s Ethereum filing was indeed delayed by the SEC this week, in case anyone was curious.

Fidelity’s Confidence in Ethereum ETF

Notably, Fidelity had entered the ETF race back in June with a filing for a spot bitcoin ETF, coinciding with BlackRock’s entry into the same arena. The company remains optimistic about regulatory approval, drawing confidence from ongoing discussions between the SEC and Grayscale over their proposed product.

The court’s rebuke of the SEC in the Grayscale case, asserting a lack of reasonable justification for denying the conversion of the Bitcoin Trust into a full-fledged ETF, has prompted a review of the SEC’s ruling. Current information suggests that the SEC and Grayscale are still discussing the suggested product.

Fidelity’s admiration for Ethereum is evident, as highlighted by Chris Kuiper, the Director of Research at the firm, in a recent discussion. Kuiper explored the rising significance of digital assets and projected their potential for further expansion.

This optimism is seamlessly woven into Fidelity’s application for a Spot Ethereum ETF, where the company envisions Ethereum’s role in facilitating large-scale transactions in the future.

Related Reading |  WisdomTree’s Spot Bitcoin ETF Gains Traction with Revised Filing 

Crypto Radar: Tracking the Top 3 Digital Assets Poised for Action This Week

by

The cryptocurrency sphere is filled with excitement, with the spotlight shifting to the possible endorsement of spot exchange-traded funds (ETFs) for major cryptocurrencies such as Bitcoin and Ethereum. This event has injected a fresh wave of positivity into the market, hinting at the prospect of a revived bullish trend.

As we progress into the second week of November, the attention of investors is directed toward three prominent cryptocurrencies that are emerging as key contenders to monitor. These digital assets provide persuasive reasons for a prolonged recovery, contingent on the continuation of the prevalent optimistic market sentiment.

Crypto Watchlist

Solana (SOL): Exceptional Performance

Solana (SOL) has emerged as a standout performer in the week ending on November 12, showcasing a significant increase of 36.7%. The majority of this notable gain occurred on November 10, with a surge of 25.2%. This upward trend is attributed to the increased focus on projects being developed on the Solana network. Although SOL reached a peak of $63.97 on November 11, 2023, it still remains below its all-time high (ATH) of $267.52 recorded in November 2021.

Nevertheless, the cryptocurrency appears set for a sustained upward movement, having already undergone a substantial 79.8% surge in October and maintaining momentum with a 51.9% increase in November. The ongoing introduction of new projects on the Solana blockchain is expected to contribute significantly to its ongoing recovery.

Polygon (MATIC): Riding the Wave of Institutional Interest

Polygon (MATIC) is causing a stir in the cryptocurrency realm, experiencing an impressive 3,800% surge in transaction volume, surpassing $100,000 in the last 30 days. This upswing is attributed to increased demand from institutional investors and prominent players in the crypto industry.

As a result, MATIC’s price has surpassed $0.80, marking its first time achieving this since July. With a 62% increase in market capitalization over the past month and substantial accumulation by wallets holding 100,000 to 10 million MATIC, the overall outlook for Polygon appears positive.

Chainlink (LINK): Doubling in Three Weeks

Chainlink (LINK) has undergone a significant surge, more than doubling in value over the past three weeks. Its current trading price of $13.13, up from $6.14, is reflective of this rally, which is partially attributed to the broader recovery in the cryptocurrency market. Grayscale’s Chainlink Trust (GLINK) is trading at a 200% premium compared to the spot LINK markets, indicating increased interest from institutional investors.

The future outlook for the cryptocurrency appears optimistic, supported by the growing total value locked in GLINK, which recently doubled to approximately $4 million. As the cryptocurrency market gains momentum, Solana, Polygon, and Chainlink emerge as the top cryptocurrencies to monitor this week, each showcasing unique strengths and potential for further growth in the weeks ahead.

Solana’s Meteoric Rise: Unveiling GSOL’s Staggering Surge and Market Implications

by

The secondary market price of Grayscale GSOL surged to $202 per share, marking a staggering 146.34% increase in a single day, setting a new record high, as per the Coinglass report on November 10. The premium rate soared to an astonishing 869.29%, with similar trends in other Grayscale assets like MANA, reaching 308.06%, and GLINK at 250%.

Notably, Grayscale unveiled its SOL Trust Fund, valuing a share of gSOL at 0.38 SOL, currently trading at $202. This valuation implies that traditional finance entities are appraising Solana at a remarkable 10x its present value.

image 45

This monumental increase indicates the inception of a bullish market phase, with potential implications for SOL’s price, currently being evaluated at 2x its all-time high.

Solana, a favored asset among institutional investors, notably competes with the likes of Chainlink and XRP. Its distinction in the decentralized finance (DeFi) sector, particularly amid Ethereum’s ongoing struggles with network congestion and high fees, positions it favorably in the eyes of institutional investors seeking diversification.

Solana Price Analysis

Solana is currently priced at $58.50 USD, with a 24-hour trading volume of $3.68 billion USD. A 15.24% increase has been seen in the last day, securing the 6 spot on CoinMarketCap with a market cap of $24.63 billion USD.

SOL 1D graph coinmarketcap 2
Source: CoinMarketcap

The technical analysis indicates a bullish trajectory. The Moving Average Convergence Divergence (MACD) indicator strongly favors the bulls, supported by the momentum strength indicator well above the neutral zone.

SOLUSD 2023 11 10 19 01 40
Source: Tradingview.com

Despite the current bullish sentiment, a likely correction from the $50 mark followed by a consolidation phase is anticipated, crucial for market stability and the influx of new buyers and profit-taking traders.

Furthermore, predictions suggest a potential push towards the $100 mark for Solana if the SEC greenlights multiple Bitcoin spot ETFs, potentially reshaping the traditional investor perspective on cryptocurrencies, including Solana’s market standing.

While immediate corrections are speculative, the potential for SOL to consolidate above $50 and reinforce its bullish position remains a possibility. Such shifts could dramatically influence the crypto market, especially for Solana, in the foreseeable future.

This report highlights the significant surge in Solana’s valuation and its implications for the broader crypto market, particularly in the context of institutional investment and potential regulatory decisions.

Note: The details on this page about markets and instruments are like a sneak peek – just info, not a nudge to buy or sell. Before diving into investments, dive into your own research pool.

Related Reading | Bitcoin on the Brink: Unveiling Phase 5’s Potential and Market Dynamics

SEC’s XRP Battle with Musk and Cuban: Shocking Legal Showdown

by

Elon Musk and Mark Cuban, two influential figures in the investment world, have joined forces to challenge the prosecutorial tactics of the United States Securities and Exchange Commission (SEC) in a joint amicus brief filed with the Supreme Court. This move is in support of plaintiff George Jarkesy, who argues that the commission’s practice of conducting juryless prosecutions infringes upon the seventh amendment of the United States Constitution.

One of the key issues addressed in the amicus brief is the internal appointment of administrative judges by the SEC to preside over cases. Musk and Cuban contend that the current structure of administrative proceedings results in unequal outcomes for defendants facing the commission charges. This is a significant concern, as the commission plays a pivotal role in regulating various aspects of the financial markets, including securities fraud and market manipulation.

Notably, the motivation behind Musk and Cuban’s involvement in this legal battle is amplified by their own interactions with the commission. Elon Musk has faced legal action from the commission on multiple occasions, making him no stranger to regulatory disputes. The commission is currently seeking his testimony in relation to his acquisition of Twitter, now known as X.

In their amicus brief, the billionaire duo argues that the commission’s insistence on administrative proceedings, when federal court juries are readily available, contradicts the commission’s mission and ultimately harms the very investors and markets it is meant to protect. This critique highlights the potential repercussions of the commission’s current approach to prosecution.

Amid Regulatory Clash, SEC’s XRP Troubles Multiply

The implications of this legal challenge extend beyond traditional financial markets. If the Supreme Court rules against the commission’s ability to employ administrative proceedings, it could provide a lifeline to crypto platforms facing regulatory scrutiny. Over the past few months, the commission has faced several setbacks in lawsuits involving cryptocurrency firms, such as the favorable outcome for Ripple Labs regarding the classification of XRP and Grayscale’s success in converting its Bitcoin trust into a spot Bitcoin ETF.

The call to eliminate administrative judges and proceedings has far-reaching consequences, affecting market participants across various ecosystems. It remains to be seen how the Supreme Court will respond to this challenge, but the outcome could reshape the regulatory landscape for securities and the crypto industry.

Ethereum Futures ETFs Make a Splash: The Rise of 9 New Players

by

The world of exchange-traded funds [ETFs] based on Ethereum futures received a significant boost with the launch of VanEck’s EFUT fund. VanEck, a global investment manager, activated its EFUT fund for trading, offering investors exposure to Ether-linked investments through an exchange-traded instrument. It’s essential to note that EFUT does not directly invest in ETH or other digital assets; instead, it seeks capital appreciation by investing in Ethereum futures contracts.

EFUT is set to be listed on the Chicago Board Options Exchange [CBOE] and will be managed by Greg Krenzer, VanEck’s Head of Active Trading. Krenzer, with over two decades of experience in trading various asset categories, including futures, brings valuable expertise to the management of EFUT.

Ethereum
Ethereum Futures ETFs Make a Splash: The Rise of 9 New Players 7

Joining VanEck in this venture, other prominent players in the financial market, including ProShares, Bitwise, and others, are launching their respective Ethereum Futures ETFs on October 2. These launches were made possible through filings with the U.S. Securities and Exchange Commission and official announcements.

VanEck’s commitment to the ETH community is evident through its pledge to donate 10% of EFUT’s profits to the Protocol Guild. This guild serves as a compensation plan for core contributors to the Ethereum network, providing crucial support to approximately 150 individuals responsible for maintaining the core Ethereum protocol, as reported by TronWeekly.

Grayscale, a major player in the cryptocurrency investment space, has also made significant moves. Following the introduction of Ethereum Futures ETFs in the U.S. market, Grayscale aims to convert its Grayscale ETH Trust [ETHE] into a spot ETH ETF. This transition is reflected in the filing of a 19b-4 with the SEC. Notably, regulatory permissions for new crypto ETFs are obtained from the exchange listing the fund’s shares rather than from the sponsor itself.

Ethereum Futures- A Closer Look at the Market Dynamics

As of October 2, a total of nine new ETF products have entered the market, all designed to track futures contracts linked to the value of Ethereum’s native currency. Despite witnessing trading volumes of less than $2 million on the first day, these ETFs have garnered attention.

While this trading volume pales in comparison to that of the ProShares Bitcoin Strategy ETF [BITO], which surpassed $1 billion in trading volume on its debut, experts like Bloomberg ETF analyst Eric Balchunas view this activity as substantial. He noted that although investors typically favor spot ETF products over futures, the volume observed was comparatively significant for this type of financial product launch.

Crypto Industry’s Future Hangs on Gensler’s Senate Testimony

by

In the realm of crypto, despite a series of recent legal setbacks, Gary Gensler, Chair of the United States Securities and Exchange Commission, remains resolute that the SEC should be the primary regulator. Gensler’s unwavering commitment will come into focus as he readies himself to speak before the Senate Banking Committee on September 12.

In the past two months, the SEC faced significant setbacks, with defeats against crypto industry giants Grayscale and Ripple, both seen as substantial blows to the regulatory body. However, Gensler is not deterred and intends to emphasize his belief that digital assets are, indeed, securities that should fall under the SEC’s purview.

The Senate hearing’s primary focus is the SEC’s oversight in specific matters related to the crypto industry. In his prepared testimony, Gensler draws parallels between the current crypto landscape and the unregulated chaos of the 1920s before the federal securities laws were established. He argues that widespread noncompliance with securities laws has led to numerous issues in the crypto markets.

Continuing his consistent stance, Gensler asserts that the Howey test, a legal benchmark for determining whether an asset qualifies as a security, is met by the vast majority of virtual tokens. He firmly states, “The vast majority of crypto tokens likely meet the investment contract test.” This viewpoint naturally leads to his conclusion that most digital asset intermediaries must also adhere to securities laws.

Grayscale Saga: SEC’s Second Crypto Defeat Raises Questions

The SEC’s first major legal defeat came on July 13 when Judge Analisa Torres partially ruled in favor of Ripple, stating that the sale of XRP tokens to retail consumers did not violate federal securities laws. Although the SEC is pursuing an appeal, this decision is expected to be cited by other crypto companies facing lawsuits from the regulator.

The SEC’s second major loss occurred on August 29 when a judge declared the SEC’s rejection of Grayscale’s request to convert its Bitcoin Trust into a Bitcoin exchange-traded fund as “arbitrary and capricious.” These high-profile losses have encouraged blockchain-based payments network LBRY to file an appeal against its own securities law violation ruling, signaling its commitment to fight the SEC’s decision rather than winding down.

Gensler’s steadfast determination to assert the SEC’s regulatory authority over the digital asset industry remains undeterred, despite recent legal defeats. As the crypto industry and regulators continue to grapple with defining and regulating digital assets, the upcoming Senate Banking Committee hearing promises to be a crucial moment in shaping the future of crypto regulation in the United States.

Ethereum Spot ETF: Cathie Wood’s Ark Invest Leading The Charge For Approval

by

Cathie Wood’s Ark Invest is on the verge of making history by ushering in the first-ever Ethereum ETF in the United States. This milestone is imminent, thanks to their 19b-4 application submission to the Securities and Exchange Commission [SEC]. The groundbreaking fund, known as the “ARK 21Shares Ethereum ETF,” is poised to trade on the Cboe BZX Exchange, pending the SEC’s authorization.

In their application, Ark Invest has entrusted Coinbase as the custodian, signifying that this cryptocurrency exchange will safeguard the Ethereum assets supporting Ark Invest’s ETF shares. The ETF itself is slated for trading on the Cboe BZX Exchange. The competition has intensified with the arrival of another contender, the VanEck Ethereum ETF, filed by CBOE on September 6, alongside the ARK 21Shares Ether ETF.

image 15 1
Ethereum Spot ETF: Cathie Wood's Ark Invest Leading The Charge For Approval 9

With assets under management exceeding $14 billion, Cathie Wood’s Ark Invest has also emerged as the frontrunner in the race for a spot in the Bitcoin ETF, even amidst formidable industry players like BlackRock. In June 2021, Ark Invest initiated its first application for the Ark21Shares ETF in collaboration with Swiss ETF provider 21Shares AG. If approved, this BTC ETF will be listed on Cboe’s BZX Exchange under the symbol ARKB.

However, the U.S. Securities and Exchange Commission has prolonged its assessment of the Ark 21Shares Bitcoin exchange-traded fund application as it continues to evaluate applications from traditional financial heavyweights like BlackRock and Fidelity Investments.

Experts Predict Ethereum ETF Final Deadline

According to Bloomberg ETF analyst James Seyffart, the latest 19b-4 filings signify a new phase in the race for a spot in the ETH ETF, marking the official commencement of the competition. He anticipates a final decision around May 23, 2024.

Nonetheless, this news has sparked tremendous excitement within the cryptocurrency community, particularly following Grayscale’s recent victory against the U.S. regulator. A federal court ruling mandated the SEC to reevaluate its rejection of Grayscale’s bid to convert GBTC into an exchange-traded fund.

Many market experts believe this ruling has paved the way for a potential Ethereum spot ETF and increased the likelihood of the SEC approving all current applications. Furthermore, on August 17, the securities regulator reportedly signaled its intention to approve investment products related to Ethereum Futures.

Ethereum’s Prospects Brighten As Analysts Predict Surge In ETF Approval Odds

by

Analysts in the ETF industry have revealed their expe­ctations for the U.S. Securities and Exchange­ Commission (SEC) to approve Ethereum’s future­s ETFs. They now project a 75% likelihood of re­ceiving the gree­n light, aligning with last year’s odds given to Bitcoin futures ETFs in September 2021.

Since then, the SEC has approved several Bitcoin futures ETFs. These­ ETFs track the price of Bitcoin futures contracts inste­ad of the underlying asset. ProShare­s launched the first one in Octobe­r 2021, and it achieved remarkable­ success by attracting over $1 billion in assets unde­r management within its first wee­k.

Many crypto enthusiasts eage­rly await the approval of spot ETFs. These e­xchange-traded funds would enable­ investors to purchase and hold cryptocurre­ncies directly. Notably, experts Se­yffart and Balchunas have raised the like­lihood of a spot Bitcoin ETF being approved from 50% a few we­eks ago to 65%.

They mentioned the­ positive stance of SEC Chairman Gary Gensle­r toward cryptocurrencies. Additionally, they note­d that prominent crypto investment firms like­ Grayscale and BlackRock are strategically conve­rting their existing trusts and funds into ETFs.

Ethereum’s Milestones: ETF Approval And 2.0 Upgrade

The approval of Ethereum future­s ETFs would mark another significant achieveme­nt for the cryptocurrency industry. Ethere­um is not only a valuable asset but also a platform facilitating dece­ntralized applications, smart contracts, and the thriving sector of de­centralized finance (De­Fi).

Ethereum is presently undergoing a substantial enhancement known as Ethereum 2.0, with the primary objective of enhancing scalability, security, and energy efficiency. This upgrade is set to achieve its goals by incorporating sharding and collaborating with layer 2 rollups.

Sharding divides the responsibility of managing large­ volumes of data required by rollups across the­ Ethere­um network. The completion of this update­ is expected to complete in 2024.

Some analysts speculate that Ethe­reum has the potential to e­xceed Bitcoin’s market value­ in the future because of its wide­r range of use cases and innovative­ capabilities compared to the le­ading cryptocurrency.

However, Ethere­um also faces some challenges and risks in its path such as include regulatory unce­rtainty, network congestion, high fee­s, security breaches, and compe­tition from other blockchain platforms.

As per CoinMarketCap data, The current price of Ethe­reum is currently trading at $1,830.06, with a market cap of $219.91B. In the­ last 24 hours, it has experience­d a trading volume of $4.75B and a decline of 0.28%. The­ circulating supply is approximately 120.17M ETH.

Related Reading | TRON and Optimism Face Tough Competition – VC Spectra’s Reign Begins

SEC plays hardball with BTC ETF approval

by

The US Securities and Exchange Commission (SEC) has so far rejected multiple bids to create a spot Bitcoin (BTC) exchange-traded fund (ETF), including those from Fidelity and SkyBridge. However, the lack of investor protection safeguards in the division has been mentioned by the agency as a major cause for the agency’s continued denials.

According to a Monday article by London-based financial publication Financial News, Michael Sonnenshein, CEO of asset management firm Grayscale, has stated that acquiring a spot Bitcoin ETF is the firm’s “number one” goal at the present.

Grayscale applied to convert its Bitcoin trust, which presently manages around $25 billion in the largest cryptocurrency, into a spot ETF last October, as reported by Tron Weekly Journal (TWJ).

Screenshot 13

In light of recent events, Grayscale’s proposed rule change is presently up for public comment at the commission. According to Bloomberg’s Eric Balchunas, the vast majority of opinions (approximately 95 percent) were in support of approving the product in February. The overall view seems to be that the commission has already approved multiple futures-based Bitcoin ETFs, so approving a product that follows the value of actual Bitcoin rather than derivatives makes it reasonable.

However, by refusing to authorize a Bitcoin ETF, Grayscale claims the SEC is creating an “unfair playing field.” Sonnenshein, on the other hand, believes the regulator will change its mind in the future.

SEC propels two BTC ETF proposals

The Securities and Exchange Commission (SEC) has approved two more spot bitcoin exchange-traded fund (ETF) proposals, this time from WisdomTree and One River, respectively.

WisdomTree filed a fresh proposal in February, and the 45th day after publication in the federal register, the first window for the commission decision, is March 31. This order gives the new plan an extra 45 days to be considered, pushing the deadline back to May 15. the order read,

“The Commission finds that it is appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change and any comments received.”

As for the digital asset fund One River, which is funded by billionaire investor Alan Howard, filed for its One River Carbon Neutral Bitcoin Trust in May 2021. The product would store bitcoin and value its shares, with an additional adjustment to account for the cost of carbon offsets. In October, the proposed rule change was published in the Federal Register for public comment, putting the commission on notice.

The SEC has repeatedly booted the can on this decision, as it has done with other spot bitcoin products. The Commission was supposed to make a decision on April 3, 180 days after the October 5 publication, but the order gives the Commission a further 60 days to make a conclusion on June 2.

BlockFi to shell out $100M to SEC for violating these rules

by

Crypto lending platform BlockFi Inc. will have to pay $100 million as part of its settlement for SEC and other state regulators’ accusations that it illegally offered a product that promises customers high-interest rates to lend out their digital assets, according to sources familiar with the matter.

Bloomberg which first broke the news also revealed that the New Jersey-based firm will pay a $50 million fine to the SEC and another $50 million to various states, said the people asking to remain anonymous because the deliberations are private.

The penalties of this size are among the toughest levied on a cryptocurrency firm that also comes in the backdrop of a U.S. clampdown on the industry. The SEC and various state investigators have increased scrutiny on several companies, including Celsius Network and Gemini Trust Co. that have gained immense popularity with retail investors for paying yields sometimes exceeding10%.

As part of its deal with regulators, BlockFi will no longer be able to open new interest-yielding accounts for most Americans. Speaking on the development, BlockFi spokesperson Madelyn McHugh stated,

“We have been in productive ongoing dialogue with regulators at the federal and state level. We do not comment on market rumors. We can confirm that clients’ assets are safeguarded on the BlockFi platform and BlockFi Interest Account clients will continue to earn crypto interest as they always have.”

BlockFi and Co. facing the heat

Crypto-lenders, in particular, have come under the prying eyes of the regulators as they have attracted several billions of dollars in deposits by promising yields much higher than those available through traditional savings accounts.  

A representative of Gemini Trust said the firm was cooperating with an “industry-wide inquiry” into crypto-yield products. Celsius also stated that it was working with regulators to “operate in full compliance with the law”.

Downplaying reports of SEC going after the firm, Voyager spokesman said it was normal to be in ongoing communications with financial watchdogs. The SEC as of now hasn’t accused any of the above companies of wrongdoing but the fear remains.

The top agency has separately issued a warning to Coinbase Global Inc., the biggest U.S. crypto exchange, against going forward with a lending product, prompting the firm to halt the project last September.