Ethereum ETF Race Heats Up as SEC Approvals Loom

The long-awaited approval of spot Ethereum ETFs in the US appears to be nearing the finish line. This week, several asset managers including VanEck, 21Shares, Grayscale, Franklin Templeton, Fidelity, and BlackRock all filed amended registration statements with the SEC for their respective Ethereum ETF products.

TL;DR

• The SEC has yet to disclose fees for the proposed ETFs, but analyst Eric Balchunas expects one more round of filings with fees included before final approval. He speculates a possible approval date of July 18th.
• VanEck’s amended filing removed details on how Ethereum withdrawals would be processed, potentially reflecting a concession to the SEC’s ongoing concerns about crypto custody practices.
• Similar to Bitwise’s filing last week, these amended registrations highlight the SEC’s focus on investor protection in the crypto market. They reference SEC Chair Gary Gensler’s concerns about inadequate protection for investors using crypto exchanges and his call for stricter regulations on digital asset trading.
• Grayscale’s amended filing clarifies that its “mini” ETF will not involve staking, a process where Ethereum tokens are used to earn rewards. This aligns with the trend of applicants removing staking language from their proposals before receiving approval.

Ethereum Price Remains Volatile

Despite the positive developments regarding ETFs, the price of Ethereum (ETH) has fallen significantly since its peak near $4,000 in late May. As of today, July 8th, 2024, ETH is trading around $3,051, reflecting broader headwinds in the cryptocurrency market.

Grayscale Announces “Mini” Ethereum ETF Distribution

In a separate development, Grayscale Investments revealed the record date for the first issuance and distribution of shares of its new Grayscale Ethereum Mini Trust. This is set to occur on July 18th, 2024, and will add to the firm’s existing suite of crypto investment products. Existing Grayscale Ethereum Trust (ETHE) shareholders will be entitled to receive shares of the Mini Trust in proportion to their holdings. Notably, the Mini Trust will not involve staking and is designed to offer a lower-cost alternative to the original ETHE.

Ethereum’s First-Ever Hackathon Announced

The Ethereum blockchain is gearing up for its first-ever hackathon, with a $2 million prize pool aimed at attracting security researchers to identify vulnerabilities in its codebase. This “Attackathon” will be a four-week long competition hosted by the Ethereum Protocol Security (EPS) research team in collaboration with bug bounty platform Immunefi.

Ethereum Price Analysis

Technical analysts are cautiously optimistic about Ethereum’s short-term prospects. The price appears to be forming a base above $2,820 and could potentially break resistance at $3,160 and rise towards $3,320. However, a failure to clear the $3,150 resistance level could lead to another decline towards $2,960 or even $2,820.