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Grayscale withdraws Ether Futures ETF application ahead of SEC decision |
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News - Grayscale Investments, a leading cryptocurrency asset manager, abruptly withdrew its application for an Ether futures exchange-traded fund (ETF) with the U.S. Securities and Exchange Commission (SEC) on 7 May. |
The decision comes just weeks before the SEC's deadline to rule on the proposal. The surprise move has left analysts scratching their heads. |
Speculations are rife - The application, filed in September 2023, aimed to launch an Ether futures ETF on the New York Stock Exchange. Some experts believed Grayscale was using this application as a stepping stone, hoping it would pressure the SEC to approve a separate application for a spot Ether ETF – an ETF that directly tracks the price of Ether, unlike futures contracts. |
The SEC is scheduled to deliver a verdict on several spot Ether ETF applications by 23 May. Analysts' initial optimism for approval (70% in January) has dwindled to just 25%. And Grayscale's Futures ETF withdrawal seems to have no effects on these revised odds. |
However, the move does raise questions about Grayscale's legal options if its spot ETF application is rejected. Meanwhile, ETH is under heavy selling pressure, with a surge in short positions over the past 24 hours. |
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News - Jeo Boden (BODEN), a meme cryptocurrency inspired by a misspelling of U.S. President Joe Biden's name, experienced a surge of up to 25% in value on Wednesday. This, after former President Donald Trump made a remark saying "I don't like that investment." |
Trump's offhand comment about the token occurred during the Trump Cards NFT Gala, an event held at his Mar-a-Lago resort in Palm Beach, Florida, where attendees gathered to celebrate digital collectibles bearing Trump's likeness. |
What's more? Despite being described to Trump as having a $240 million market capitalization, he expressed disapproval of the investment. |
Although BODEN peaked at $0.42 in response to Trump's mention, its value fluctuated slightly and settled at around $0.40 by press time, still marking a significant increase of approximately 15% from pre-comment levels. |
Trump, while not currently accepting cryptocurrency donations for his presidential campaign, indicated his openness to the idea. Thus, suggesting he may enable crypto donations in the future. |
UK plans to implement groundbreaking crypto regulations on Staking and Stablecoins |
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News - The UK is on the verge of passing groundbreaking regulations for staking and stablecoins, solidifying its position as a global cryptocurrency hub. |
This legislative effort is being driven by Economic Secretary Bim Afolami, who recently highlighted the urgency of these regulations at a major industry summit. He expressed optimism about the government's ability to implement these crucial measures impacting core areas of the crypto market. |
What is the intention behind this move? "Our top priorities in the coming months are finalizing the secondary legislation surrounding staking and stablecoins," Afolami remarked. |
As Afolami pointed out, the impending regulations aim to bolster market stability and provide clear, well-defined guidelines, potentially attracting more businesses to the UK's crypto sector. |
This move would also strengthen investors' confidence by establishing a secure, transparent, and stable regulatory environment. |
Solana vs. Ethereum: Battle for transaction fee supremacy heats up |
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Analyst Dan Smith predicts Solana will soon surpass Ethereum in transaction fees. However, Ethereum continued to maintain a commanding lead in Total Value Locked (TVL), indicating higher investors' trust.
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News - The age-old debate between Solana and Ethereum has flared up again on social media, with transaction fees taking center stage. Analyst Dan Smith sparked the discussion by claiming Solana is on track to surpass Ethereum in transaction fees, possibly even within the week. |
Smith's argument hinges on the combined cost of transactions and MEV (Maximal Extractable Value), a measure of profit validators can capture through block processing. Data showed Solana rapidly narrowing the fee gap with Ethereum. |
What's more? This trend aligned with a broader decline in Ethereum's network fees since late February. On 7 May, Ethereum fees stood at $2.8 million compared to Solana's $1.6 million. |
The battle extends beyond fees as well. Solana's Jupiter decentralized exchange (DEX) recently surpassed Ethereum's Uniswap in terms of unique active wallets. This, coupled with Solana's recent price pullback, has led many to believe SOL is undervalued. |
However, Ethereum maintains a clear lead in Total Value Locked (TVL), a measure of cryptocurrency deposited in DeFi protocols. At press time, Ethereum boasted a TVL of $53.3 billion compared to Solana's $4 billion, indicating a higher level of investors' trust in Ethereum. |
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More stories from the crypto ecosystem |
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Interesting facts |
It's challenging to enforce a complete ban on cryptocurrency. While numerous nations have debated the idea of outlawing digital currencies, the inherent nature of cryptocurrency makes it resistant to such prohibitions. As per CoinATMRadar data, there are 34,479 crypto ATMs across 77 countries, managed by 603 operators. The United States dominates with 88% or 30,380 of these ATMs, while Canada (2,253) and El Salvador (205) follow as the second and third, respectively. Over the past nine years, Bitcoin witnessed a staggering growth, surging by more than 500,000%. Enthusiasts of Bitcoin anticipate its continued ascent, challenging traditional economic trends.
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Top 3 coins of the day |
Tron (TRX) |
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TRX, at press time, was trading at $0.1248 with buyers in charge. It noted a surge of 2% in the last seven days.
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What you should know - TRX has shown positive signs of growth recently, especially, after being on an upward trend on daily charts since 19 April. However, this uptick comes after a significant decline since late February, if we look at the bigger picture. The Relative Strength Index, at press time, sat at 63.80, indicating that the coin was neither in oversold nor in overbought territory. Support for TRX could be found between $0.11153 and $0.10626, while near-term resistance stood between $0.12821 and $0.13250. In short, TRX's future trajectory in the short term remained uncertain. |
Binance Coin (BNB) |
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At the time of writing, BNB was trading at $594 with a 6.22% surge over the week. The coin has been moving in a sideways range after 13 March.
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What you should know - BNB has been stuck in a consolidation phase, oscillating between $517 and $638 for quite some time now. At press time, the price was trading a little away from its support level at $471. MACD indicator offered some neutral signals - Both the MACD line and the signal line were positioned parallel to each other above the zero line, suggesting neither strong buying nor selling pressure. With the price nearing support and the MACD lacking a clear direction, BNB's short-term trajectory could change in bear's favor soon. However, a breakout above the resistance level of $641 can change the coin's trajectory in a positive direction. |
Worldcoin (WLD) |
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What you should know - Worldcoin (WLD) seems to be holding steady for now, with neither a strong uptrend nor a significant downtrend in sight. At press time, its RSI sat at around 49, highlighting exhaustion in the market. However, since 10 March, the coin has been on a bit of a downward slide. This decline has been due to the overall negative market sentiment. If Worldcoin makes some advancements in its technology or forms strategic partnerships, it could see a boost in its price. But upon failing to get strong buy pressure, WLD could revisit the $3.741 support within the next week. |
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