Ethereum ETFs Could Launch by Late June + More

Ethereum ETFs Poised for Potential June Launch Amid Regulatory Advances

by Faruk Imamovic
Ethereum ETFs Could Launch by Late June + More
© Getty Images/Jack Taylor

Recent developments suggest that the launch of United States spot Ether exchange-traded funds (ETFs) could occur as early as late June, following significant progress in the regulatory approval process. BlackRock, a prominent player in the financial world, updated its Form S-1 filing for the iShares Ethereum Trust (ETHA) with the U.S. Securities and Exchange Commission (SEC) on May 29. This update came just a week after the SEC approved BlackRock's 19b-4 filing.

According to Bloomberg ETF analyst Eric Balchunas, these are promising signs that other applications might soon follow. Balchunas indicated that while a late June launch is possible, an approval around July 4 appears more likely. This optimism is shared by many in the industry who see the approval of Ethereum ETFs as a major step forward for cryptocurrency investment.

Changing Ownership: Binance France's New Chapter

In a significant shift, Binance France has undergone a complete ownership change, now fully owned by new shareholders. This transition follows a warning from France’s Financial Markets Authority. The aim was to remove former Binance CEO Changpeng Zhao from the company’s control due to regulatory issues with U.S. authorities, including the Justice Department and the Financial Crimes Enforcement Network. Zhao had pleaded guilty to U.S. charges in November and was sentenced to four months in prison.

This move underscores the increasing scrutiny and regulatory challenges that major cryptocurrency exchanges face globally. By restructuring ownership, Binance France hopes to navigate these challenges more effectively and maintain its operations within the regulatory framework.

Turbo: A Memecoin's Meteoric Rise

In an astonishing feat, a memecoin called Turbo, created using the OpenAI chatbot ChatGPT with an initial investment of just $69, has achieved a market capitalization of $638 million within a year. The coin’s price peaked at $0.009302 on May 28, marking a new all-time high and representing a substantial increase from its valuation of $27 million three months earlier — a 2,262% rise. Since its launch, Turbo has surged by an incredible 13,192.3% from September 2023.

Bitcoin's Temporary Dip Amid Mt. Gox Movements

Bitcoin experienced a 2% dip on May 28 after wallets associated with the defunct crypto exchange Mt. Gox moved 107,547 BTC, worth nearly $7.3 billion, to an unknown wallet. This movement occurred ahead of the exchange’s plan to return BTC holdings to creditors by October. The transactions, all directed to a single unlabeled address, caused temporary market anxiety but are not expected to have a long-term impact on Bitcoin’s trajectory.

Despite the dip, analysts from QCP Capital maintain a positive outlook on Bitcoin’s price trend. They point to three bullish factors: robust performance of U.S. stocks spilling over into crypto, political support from U.S. presidential candidates, and the anticipated uptake of the forthcoming spot Ether exchange-traded funds. These factors are expected to bolster Bitcoin’s robustness and drive its price higher towards the end of the year.

Bitcoin© Getty Images/Dan Kitwood

Grayscale’s Ethereum ETF: Potential for Significant Outflows

Grayscale’s proposed spot Ether exchange-traded fund (ETF) might face substantial daily outflows averaging $110 million if it mirrors the initial pattern observed with its Bitcoin ETF. The Grayscale Bitcoin Trust, which converted to an ETF on January 11, saw outflows of 23% of its assets under management, totaling $6.5 billion in the first month. Similarly, if the Grayscale Ethereum Trust, which has $11 billion in assets, experiences comparable outflows, it could represent about $110 million leaving daily. This amount equates to 30% of Ether’s average daily trading volume on Coinbase, according to a report by Kaiko analysts.

Weekly Market Wrap: Altcoin Movers and Shakers

As of the end of the week, Bitcoin (BTC) stands at $67,004, Ether (ETH) at $3,749, and XRP at $0.51, with the total cryptocurrency market capitalization reaching $2.5 trillion, according to CoinMarketCap. The top-performing altcoins of the week include Notcoin (NOT) with a remarkable gain of 141.82%, JasmyCoin (JASMY) up by 46.40%, and ORDI (ORDI) increasing by 28.46%. Conversely, the biggest losers were Akash Network (AKT) down by 12.94%, Bittensor (TAO) falling by 9.82%, and Ronin (RON) decreasing by 9.69%.

Bitcoin's Resilience and Future Prospects

Despite recent volatility, Bitcoin bulls have reasons to remain optimistic about the cryptocurrency's uptrend. QCP Capital analysts suggest that the 2% dip triggered by the movement of BTC from Mt. Gox wallets is unlikely to alter the broader positive trend. They highlight three main factors supporting Bitcoin’s future growth: strong performance in U.S. stocks, which often correlates with crypto gains; increasing political support from U.S. presidential candidates advocating for cryptocurrency; and the expected boost from new spot Ether ETFs.

These factors collectively create a favorable environment for Bitcoin, suggesting that short-term fluctuations may be minor interruptions in an overall upward trajectory.

U.S. DOJ Cracks Down on Cybercrime

In a notable law enforcement action, the U.S. Department of Justice has arrested Yune Wang, a 35-year-old national of the People's Republic of China and citizen-by-investment of St. Kitts and Nevis, for his alleged role in operating the 911 S5 botnet. Active from 2014 to 2022, this botnet compromised millions of residential Windows computers globally, affecting over 19 million IP addresses. Blockchain analytics firm Chainalysis identified that wallet addresses linked to Wang held over $130 million in cryptocurrencies derived from illicit activities.

This arrest marks a significant victory in the fight against cybercrime, demonstrating the U.S. authorities' commitment to tackling sophisticated digital threats and protecting the integrity of the cryptocurrency market.