StealthEX & CryptoDaily Latest Crypto News: Ethereum ETFs in Limbo

March 22, 2024

Crypto World

Maciej Zerelik

Explore the latest insights from StealthEX and CryptoDaily! Get ready for an exciting overview of the most important updates shaping the crypto sector. Wondering what’s new in the world of crypto this week? Let’s jump right into the world of digital assets and the latest developments in Ethereum ETFs!

Ethereum Faces SEC Scrutiny: A Blow to Crypto ETF Ambitions 

The cryptocurrency world is abuzz as the U.S. Securities and Exchange Commission (SEC) intensifies its legal efforts to classify Ethereum (ETH) as a security. This significant move threatens the approval of a much-anticipated spot Ethereum ETF, shaking the foundation of the crypto industry’s future prospects. The SEC’s focus on the Ethereum Foundation, a Swiss-based nonprofit pivotal in Ethereum’s development, underlines the seriousness of this scrutiny. Companies involved have already started feeling the heat, with subpoenas demanding documentation related to their interactions with the foundation.

This development follows the SEC’s green light on spot Bitcoin ETFs, highlighting a potentially inconsistent regulatory approach towards different cryptocurrencies. The controversy particularly stems from Ethereum’s recent transition to a Proof-of-Stake mechanism, which the SEC could be using as a pretext to tighten its regulatory grip. Critics argue that the SEC’s aggressive stance might be more about exerting control over the burgeoning crypto sector than about protecting investors.

The situation is further complicated by the SEC Chair Gary Gensler’s ambiguous position on whether Ethereum qualifies as a commodity or a security. This ambiguity puts the SEC at odds not only with the crypto industry but potentially also with the Commodity Futures Trading Commission (CFTC), which has traditionally viewed Ethereum as a commodity. The outcome of this regulatory tussle could have profound implications for the future of Ethereum, the broader cryptocurrency market, and the prospects of crypto ETFs in the United States.

SEC Delay Decision on Hashdex and Ark Ethereum ETFs 

The crypto sphere faces a wave of anticipation and uncertainty as the U.S. Securities and Exchange Commission (SEC) hits the pause button on the approval of Ethereum-based Exchange-Traded Funds (ETFs) by Hashdex and Ark 21Shares. In a move that prolongs the suspense, the SEC has decided to extend its review period into May, signaling a cautious approach toward embracing Ethereum in the mainstream financial market. This decision mirrors the regulatory body’s intent to thoroughly assess the implications and regulatory frameworks surrounding these groundbreaking financial products.

As the deadline for the decision now stretches to the 30th of May, 2024, the SEC’s hesitation underscores a broader regulatory dilemma facing the burgeoning cryptocurrency market. Analysts are already tempering expectations, with predictions leaning towards another round of denials. This delay not only casts a shadow over the immediate future of Ethereum ETFs but also raises questions about the regulatory environment for cryptocurrencies at large. The SEC’s prolonged deliberation period signifies a critical juncture for the acceptance and integration of cryptocurrencies within the traditional financial ecosystem.

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Mystery Surrounds Ethereum Foundation Inquiry

The Ethereum Foundation, known for its critical role in the Ethereum network’s development, is currently under investigation by an undisclosed government entity. This investigation, intriguingly cloaked in secrecy due to a confidentiality requirement, raises questions and speculation within the crypto community. 

Speculations abound regarding the involvement of a Swiss regulator and possibly the U.S. Securities and Exchange Commission (SEC), particularly given the SEC’s recent actions aimed at classifying Ethereum as a security. This development occurs amidst significant technical advancements within Ethereum, such as the Denun upgrade aimed at reducing transaction costs, further highlighting the critical timing of the inquiry.

BlackRock Launched $100M Tokenized Fund on Ethereum

BlackRock has initiated a groundbreaking venture into the crypto space by launching a $100 million tokenized asset fund on Ethereum, marking a significant moment in the integration of traditional finance with digital assets. This move, detailed in a recent SEC filing, showcases a partnership with Securitize aimed at enhancing market accessibility and pioneering the tokenization of real-world assets.

The fund, named the BlackRock USD Institutional Digital Liquidity Fund, stands as a testament to the growing interest in blending blockchain’s efficiencies with the tangible asset world. The initiative has not only stirred positive reactions in the crypto markets but also underscores BlackRock’s leadership in adopting digital asset innovations, further cementing its bullish stance on cryptocurrency and blockchain technology.

UK Court Verdict Declares Craig Wright Is Not Bitcoin’s Creator”

A UK court recently made a landmark ruling, stating Craig Wright, who claimed to be Satoshi Nakamoto, the enigmatic founder of Bitcoin, is not the actual creator. This verdict comes after intense legal scrutiny and challenges from the Crypto Open Patent Alliance (COPA), marking a significant moment for the cryptocurrency community. 

The case, focusing on Wright’s claims and the authenticity of his evidence, sets a precedent in the ongoing quest to safeguard the principles of open-source development within the crypto space.

OKX Delists USDT in Europe Amid Regulatory Shifts

In response to impending regulatory changes, OKX, a leading crypto exchange, has removed USDT trading pairs for users within the European Economic Area (EEA). This move preempts the enforcement of the Markets in Crypto-Assets (MiCA) regulations, aiming to align with new requirements. 

The exchange is pivoting towards euro-denominated liquidity, underscoring the evolving landscape of digital asset regulations in Europe. This adjustment reflects a broader trend among exchanges, preparing for the MiCA’s introduction, which mandates stricter compliance for stablecoin issuers.

Fidelity Pioneers Ethereum ETF with Staking Feature

Fidelity Investments has revised its application for a spot Ethereum ETF, introducing an innovative staking option. This amendment allows the proposed Fidelity Ethereum Fund to stake assets, offering an additional income stream for investors. 

Fidelity’s move signals a groundbreaking shift in the traditional ETF landscape, marrying the growth potential of Ethereum with the mainstream financial instruments. This development is poised to attract a broader investor base, eagerly awaiting regulatory green lights in a market ripe for expansion.

This article is not supposed to provide financial advice. Digital assets are risky. Be sure to do your own research and consult your financial advisor before investing.