Crypto News This Week: Ether Spot ETFs Approved, US Passes Crypto Bill

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Key Takeaways

  • The SEC has approved spot Ether ETFs, not only expanding investment opportunities in Ethereum but also suggesting that ETH and potentially other tokens are not classified as securities.
  • The US House has passed the FIT21 Act, marking a significant move towards establishing a detailed regulatory framework for the cryptocurrency sector.
  • The US House has also made the decision to ban the Federal Reserve from issuing a CBDC reflecting significant concerns about privacy and the centralization of financial power.

This week’s crypto news roundup highlights the newest developments and trends in the cryptocurrency market.

The U.S. Securities and Exchange Commission has approved key regulatory filings that would pave the way for spot Ethereum exchange-traded funds (ETFs).

However, the funds are not yet cleared to trade, though. The SEC greenlighted so-called 19b-4 forms tied to the ETFs, but the regulator must approve their S-1 filings before investors can buy them.

In another major win for the crypto industry, the United States House of Representatives has approved a comprehensive bill to establish regulatory frameworks for digital asset markets.

SEC Approves Rule Change to Allow Creation of Ether ETFs

The SEC has approved a rule change enabling the creation of Ether ETFs. The move, which will allow investors to gain exposure to ETH through regulated financial products, comes less than six months after the agency approved spot Bitcoin ETFs.

Ethereum ETF: SEC Approves First Batch of Spot Ethereum ETFs (Techopedia)

SEC’s ETF Decision Means Ether and Other Tokens, Not Securities

The SEC’s approval of spot Ether ETFs implies that ETH and potentially other tokens are not considered securities, as they are commodity-based trust shares. However, the SEC might still target staking services, distinguishing between ETH itself and staked ETH in enforcement actions.

Spot Ether ETF Approval Proves ETH is Not a Security, Experts Say (

US House Approves Crypto ‘FIT21’ Bill

The US House has approved the Financial Innovation and Technology for the 21st Century Act (FIT21), garnering significant Democratic support. The legislation aims to provide a comprehensive regulatory framework for the cryptocurrency industry, promoting innovation while ensuring consumer protection.

What is the FIT21 Crypto Bill — And Why Is It So Important? (Techopedia)

House Bans Fed from Issuing a CBDC

The US House of Representatives has also passed a bill prohibiting the Federal Reserve from issuing a central bank digital currency (CBDC). This legislative move reflects concerns over privacy and financial control, aiming to prevent the Fed from creating a digital dollar that could alter the current monetary system.

U.S. House Passes Bill Banning Federal Reserve From Issuing a CBDC (CoinDesk)

US Bitcoin ETF Holdings Hit New High

Bitcoin ETF holdings in the US have reached a record high of over 850,000 BTC, surpassing the previous high of above 845,000 BTC from early April. Grayscale’s GBTC holds the largest amount of Bitcoin with over $20 billion, followed by BlackRock’s IBIT at $19.6 billion, while Hashdex Bitcoin ETF is the smallest holder with $12 million.

Bitcoin ETF snapshot: Week’s inflows hit the highest mark since March (Blockworks)

Ethereum ETF Approval Could Spur 60% Rally as ETH Buying Increases

The approval of Ethereum ETFs could lead to a significant price rally, with predictions of up to a 60% increase. This optimism is based on anticipated heightened demand and buying activity for ETH, spurred by easier access through ETFs, mimicking Bitcoin’s price jump when Bitcoin ETFs were launched.

Ethereum price to rally 60% if SEC approves ETFs (The Street)

WisdomTree Gets Green Light to List Crypto ETPs on LSE

WisdomTree has received approval to list its Bitcoin and Ether exchange-traded products (ETPs) on the London Stock Exchange. The WisdomTree Physical Bitcoin ETP (WBTC) and the WisdomTree Physical Ethereum ETP (WETH) will be among the first crypto ETPs listed in the UK, which are expected to be on 28 May.

Furthermore, Zurich-based 21Shares was approved for Bitcoin and Ether products and may start trading around the same time. A prospectus from Invesco was also approved.

WisdomTree gets approval to list Bitcoin and Ethereum ETPs on LSE (ETF Stream)

Uniswap Labs Urges SEC to Drop Pending Enforcement Action

Uniswap Labs has called the SEC to drop its pending enforcement action, arguing that its decentralized exchange operates within legal boundaries. Though Uniswap Labs said it invented the protocol, it said the protocol is now a “passive” technology that people use to trade cryptocurrencies.

Wells Notice Response (Uniswap)

Grayscale CEO Michael Sonnenshein Steps Down

Michael Sonnenshein, CEO of Grayscale Investments, has stepped down after 10 years at the company. He will be replaced by Peter Mintzberg, head of strategy for asset and wealth management at Goldman Sachs on Aug. 15.

Grayscale Investments Announces CEO Transition (News Wire)

Hong Kong SFC Approves Ether Staking ETF Issuers

The Hong Kong Securities and Futures Commission (SFC) has approved several issuers to launch Ether staking ETFs. After fielding proposals in recent weeks, the SFC reportedly held discussions with the country’s crypto ETF issuers about providing staking services via licensed platforms.

H.K. May Allow Ether ETF Staking, Setting It Apart From US (Bloomberg)

Bybit CEO Refutes Insolvency, Hack Rumors

Bybit CEO has refuted rumors regarding the exchange’s insolvency and alleged hacking incidents. “None of the rumours that I have see so far have any real facts supporting it, please be aware,” CEO Ben Zhou said, sharing a link to Bybit’s proof of reserves (PoR) and a Nansen dashboard showing all Bybit wallets and the amount of assets they hold.

Bybit CEO refutes insolvency rumors, shares proof-of-reserves (Cointelegraph)