Altcoin
Hong Kong To Allow Staking for Spot Ethereum ETFs, Will It See More Inflows?
It’s just a matter of a few hours before the U.S. SEC announces its decision over the VanEck spot Ethereum ETF application. Interestingly, unlike the SWEC’s approach, Hong Kong made a surprise move stating that it would facilitate staking feature for its spot Ethereum ETFs.
Hong Kong SFC In Discussions
According to sources familiar with the matter, the Securities and Futures Commission (SFC) has engaged in discussions with Hong Kong’s crypto ETF issuers regarding the potential provision of staking services through licensed platforms. These discussions follow recent proposals submitted to the SFC in recent weeks.
The discussions are ongoing, and there is currently no definitive timeline for a decision, as disclosed by the individuals.
If the proposal receives approval, the inclusion of staking services could potentially enhance demand for Hong Kong’s spot Ethereum ETFs, which have experienced relatively subdued interest since their launch in April.
Additionally, this move could position Hong Kong ahead of the United States, where there have been recent indications of regulatory approval for spot-Ether ETFs, but without any staking functionalities. This was specifically the reason that Valkyrie decided to pull back its US application.
On the other hand, several other US issuers have scrapped plans to remove staking features from their applications.
Will Staking Provide Leverage to HK Ethereum ETFs?
Staking provides investors an opportunity to earn passive income by locking their ETH on the Ethereum network and further help in transaction validation. Presently, Ether staking offers an annual payout of approximately 4% in the form of additional coins.
According to Serra Wei, CEO of Aegis Custody, discussions regarding staking between Hong Kong ETF issuers and regulators have been productive, suggesting it would align well with local regulatory frameworks.
Wei remarked, “The inclusion of staking in spot-ETH ETFs would mark a significant achievement for Hong Kong,” although Aegis has not directly participated in discussions with the SFC. Aegis specializes in providing custody technology solutions to banks in Hong Kong.
The Ethereum price has been hovering around $3,800 with over 25% gains this week. We can expect more volatility after the ETF news in the US.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Bitwise has filed an amended S-1 form for its Ethereum exchange-traded fund (ETF) just days before its July 8 deadline. This move indicates that the product is nearly ready for launch. Analysts predict that these ETFs could begin listing within the next two weeks.
Bitwise Submits Amended S-1 for Ethereum ETF
Bitwise’s updated registration form was submitted on Wednesday. Analysts suggest that these products be listed by mid-July. A source close to the situation indicated the SEC might approve the final drafts by the end of next week.
The SEC approved 19b-4 forms for eight spot Ethereum ETFs, including Bitwise, on May 23. However, issuers need their S-1 statements to become effective before trading can begin. This two-step process has kept the market eagerly awaiting the launch.
Despite the light comments on the S-1 forms, the SEC has taken its time to get approvals. A single problematic issuer may need to be on time to process. Nevertheless, expectations remain high for a launch this month.
Also Read: Federal Reserve Forecasts “AI Will Be Deflationary” To Boost Economy
Analysts Confident in Near-Term ETF Launch
Bloomberg ETF analyst James Seyffart noted the frequent amendments in S-1 forms. He expects more filings from other issuers throughout the week. This pattern suggests a coordinated effort to meet regulatory requirements.
UPDATE: We’ve got another amended S-1 from @BitwiseInvest for their #Ethereum ETF. Expect more from other issuers throughout the rest of the week. We’re thinking these things could potentially list later next week or the week of the 15th at this point. pic.twitter.com/xqVlt9lSGy
— James Seyffart (@JSeyff) July 3, 2024
Senior Bloomberg ETF analyst Eric Balchunas expressed surprise at the SEC’s slow pace. He speculated on possible reasons, including summertime vacations. Despite this, he confirmed indications of a launch this month.
The SEC’s return of S-1 forms with light comments suggests minimal hurdles remain. Analysts view this as the final round of feedback. This has increased confidence in a near-term launch.
Bitwise made significant updates to its S-1 form. One notable change includes waiving the sponsor fee for the first $500 million assets. However, the firm still needs to disclose the fee after this threshold.
Another issuer, VanEck, also announced that fees would be waived initially. These moves suggest competitive strategies to attract initial investors. By waiving fees, these firms aim to lower the entry barriers for new investors.
The recent amendments highlight Bitwise’s proactive approach to regulatory compliance. The firm’s updates reflect a strategic positioning ahead of the anticipated market entry. This aligns with the broader trend among issuers to streamline their offerings.
Also Read: US Lawmaker French Hill Doubles Down On Trump’s Pro-Crypto Stance
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
UNI, the native token of the decentralized crypto exchange Uniswap is down alongside the other coins. The crypto market has declined again after a slight recovery at the start of the month. Digital assets continue a downward trajectory that saw losses last month reducing the overall sentiments in altcoins.
UNI price soared this year against the market as the community anticipated a vote amongst other factors. In the past weeks, the bullish drive for the asset has plunged leading to sharp losses. A major reason for the downward trend of Uniswap is the reduced transaction activity as assets take a tumble.
Uniswap Nears Double Digit Losses
Uniswap is down 2.12% in the last 24 hours while its price stands at $8.66. This slump takes weekly figures above 7% above other top assets with v slight numbers. UNI soared above multiple resistance levels this year after a strong crypto performance in Q1 2024. At the moment, a chunk of gains are lost with bears becoming main characters in the last 39 days.
Last month, UNI tanked over 9% longer-term figures. Despite sell-offs recorded these weeks, UNI holders on social media spaces express optimism towards an improved price this month. While several commentators believe a market rebound might occur in July, industry and macro factors must flip positively an upward price trajectory.
Interest rate cuts remain a major talking point this year as firms expect cuts between September and October. These factors can swing the tide in favor of the market.
Wider Assets Plunge
Like Uniswap, other crypto assets have plunged with the bearish sentiment. Market leader Bitcoin (BTC) fell below $60,000 before making a slight recovery above the mark. This downtrend for BTC has caused similar movements in altcoins. Ethereum trades at $3,288 plummeting 3.89% today while BNB and Solana are down 4% and 7% respectively.
Also Read: These Crypto Stocks Are Falling Amid Q2 2024 Optimism
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Crypto Market Selloff: The digital asset sector has noted a sharp decline today, with the overall market retreating nearly 3% today in the last 24 hours. Meanwhile, the recent slump in the major cryptos like Bitcoin, Ethereum, DOGE, BNB, LINK, and others, has sparked discussions in the market over the potential reasons.
So, let’s take a look at the possible reasons that have fueled the recent crypto market selloff.
Potential Reasons Behind The Recent Crypto Market Selloff
A series of factors could have triggered the recent crypto market selloff today. Here we explore the top reasons that might have impacted the sentiment of the broader crypto market.
Bitcoin ETF Outflow Fuels Concern
The U.S. Spot Bitcoin ETF has reversed its track after noting inflows for five straight days through July 1. Over the last five days, the U.S. Bitcoin ETF has recorded the highest influx of $129.5 million on July 1. This move has fueled the market sentiment over regaining the confidence of the institutional interests towards the flagship crypto.
However, the overall scenario took a different turn on July 2, with U.S. Spot Bitcoin ETFs recording an outflow of $13.7 million. Despite inflows of $14.1 million and $5.4 million from BlackRock IBIT and Fidelity’s FBTC, the outflux of $32.4 million from GrayScale has allayed the gains.
This move might have once again weighed on the investors’ sentiment, who are still seeking clarity on the market momentum. The recent outflux after a five-day winning streak also indicates that the institutions are taking a pause before making further bets in the sector.
Friday Options Expiry
The Bitcoin ETF outflow has triggered volatility in BTC, potentially impacting the broader crypto market. Apart from that, the massive upcoming options expiry also seems to have impacted the risk-bet appetite of the investors.
Notably, the recent crypto market selloff could be primarily attributed to the upcoming expiration of significant BTC and ETH options. Data from Deribit reveals that BTC options with a notional value exceeding $1.04 billion and a put/call ratio of 0.80 are set to expire on Friday, July 5, with a maximum pain price of $63,000.
Similarly, ETH options worth $479.30 million, with a put/call ratio of 0.38 and a max pain price of $3,450, will also expire. The impending expiries are creating uncertainty and influencing market behavior, as traders adjust their positions ahead of the deadline.
Also Read: Ripple and Coinbase Use Binance Win to Contest SEC Claims
Ethereum ETF Launch Delay
The crypto market was highly anticipating the Spot Ethereum ETF approval by the U.S. SEC this week. However, a potential delay might have sparked concerns among the investors.
Meanwhile, looking at the latest market trends, ETF Store president Nate Geraci said that the U.S. Spot Ethereum ETF might launch on July 15. Besides, Bloomberg also hinted at a mid-July launch for the Ether ETF to go live in the U.S.
Crypto Market Faces Over $120M Liquidation
The recent selloff in the crypto market has caused a liquidation of $123.62 million over the last 24 hours, CoinGlass data showed. In the same timeframe, around 45,000 traders were liquidated with the largest single liquidation taking place on OKX – ETH-USDT-SWAP worth $3.36 million.
Bitcoin faces liquidation of $34.74 million, while Ethereum’s liquidation stood at $32.87 million. However, despite the recent crypto market selloff, some analysts are still optimistic about the future performance of the market. Given the declining value and anticipation over Ethereum ETF approval this month, the crypto market might witness robust gains in the coming days.
However, with Bitcoin price currently crossing the brief $61,000 mark, the risk still prevails in the market. In a recent analysis, popular crypto market expert Ali Martinez warned of over $1 billion liquidation if BTC hits the $62,600 mark.
As of writing, Ethereum price dropped nearly 3% in the last 24 hours, while Dogecoin price fell 1.3%. Simultaneously, the BNB price noted a slump of 2.5% to $566.23, and Shiba Inu price slipped 1.34% to $0.00001695.
Also, CoinGlass data showed that Bitcoin Futures Open Interest (OI) fell about 4% from yesterday, while Ethereum OI slipped about 1.4%. This data also highlights the gloomy sentiment dominating the crypto market.
Also Read: Genesis Digital Is Considering Going Public Via IPO In US
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Bitwise Files Amended S-1 for Ethereum ETF Ahead of Launch Deadline
Market Fluctuations Take Uniswap Exits Near Weekly Double-Digits
Why Bitcoin, ETH, DOGE, SHIB Prices Are Falling Today?
Crypto Trader Bags $59M in PEPE, SHIB, ETH, & 5 Others Hinting Gains Inbound
Kamala Harris Overtakes Biden In Prediction Markets, Has Trump’s Opponent Changed?
KuCoin to Enforce 7.5% VAT on Fees for Nigerian Users from July 8
Hong Kong’s Securities Association Tips Authorities On Crypto Self-Regulation
Terraform Labs Refuses to Pay $5.3 Billion Fine, Says SEC Has No Evidence
CFTC Appoints Dr. Ted Kaouk as First Chief AI Officer
Are Solana, Cardano, Polygon Commodities As US SEC Ends Ethereum Investigation?
Avalanche (AVAX) Under Pressure: Prolonged Downtrend Next?
10 Years Old Dogecoin Stash Sale Leaves DOGE Owner With Million-Dollar Loss
Hong Kong’s Securities Association Tips Authorities On Crypto Self-Regulation
Terraform Labs Refuses to Pay $5.3 Billion Fine, Says SEC Has No Evidence
CFTC Appoints Dr. Ted Kaouk as First Chief AI Officer
Are Solana, Cardano, Polygon Commodities As US SEC Ends Ethereum Investigation?
Avalanche (AVAX) Under Pressure: Prolonged Downtrend Next?
10 Years Old Dogecoin Stash Sale Leaves DOGE Owner With Million-Dollar Loss
-
Blockchain2 months agoHong Kong’s Securities Association Tips Authorities On Crypto Self-Regulation
-
Regulation2 months agoTerraform Labs Refuses to Pay $5.3 Billion Fine, Says SEC Has No Evidence
-
Regulation2 months agoCFTC Appoints Dr. Ted Kaouk as First Chief AI Officer
-
Altcoin2 weeks ago
Are Solana, Cardano, Polygon Commodities As US SEC Ends Ethereum Investigation?
-
Market3 weeks agoAvalanche (AVAX) Under Pressure: Prolonged Downtrend Next?
-
Altcoin2 months ago10 Years Old Dogecoin Stash Sale Leaves DOGE Owner With Million-Dollar Loss
-
NFT3 weeks agoNew And Upcoming NFT Projects
-
Market2 weeks agoTON Foundation’s Plan to Onboard 500 Million Users
✓ Share: