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Hot crypto news alert! The SEC is potentially reconsidering its stance on VanEck's spot Ethereum ETF application, causing a buzz in the crypto world. Here are some key takeaways and thoughts on this unfolding situation: - The SEC's surprising move to request updates on 19b-4 filings has sent Ether's price soaring, reflecting market anticipation and speculation. - Speculation is rife about the potential approval, with odds shifting from 25% to 75% according to Bloomberg analysts, leading to a frenzy among issuers. - The rushed nature of the SEC's pivot hints at possible political factors influencing the decision, raising questions about the Biden administration's stance. The dynamics around this development are intriguing and could have far-reaching implications for the crypto market. What are your thoughts and feelings on this intriguing turn of events? Share your insights and join the conversation! https://lnkd.in/eBpZ6sTm

New Post: SEC Commissioner Signals Smooth Path For Approval, ‘No Lawsuit Needed’ - The United States Securities and Exchange Commission (SEC) Commissioner Hester Peirce, often called “Crypto Mom” for her positive stance on cryptocurrencies, shared insights concerning Ethereum in a recent interview with Coinage Media. Peirce suggested that the US SEC might not require a lawsuit to guide its decision on approving Ethereum spot ETFs. SEC Commissioner’s Optimistic Outlook On Ethereum ETFs Peirce referenced the Grayscale court ruling, instrumental in the SEC’s approval of spot Bitcoin ETFs. She emphasized that the US SEC should not wait for court interventions to rectify its approach, acknowledging that the regulatory body’s actions have been “arbitrary and capricious.” The SEC Commissioner noted in the interview: We shouldn’t need a court to tell us that our approach is ‘arbitrary and capricious’ in order for us to get it right There’s a lot of work that goes into getting an exchange-traded product ready for market, including making sure that the disclosures are lining up with how the product actually works Having heard from a court that the approach we were taking was wrong I think that kind of a lesson will certainly stick with us. This acknowledgment signals a potential openness to applying the same precedent to future Ethereum ETF applications, albeit with a recognition that each application’s specific facts and circumstances can vary greatly. However, a single Commissioner can’t determine the decisions of the entire body. The US SEC recently extended its decision timeline for Fidelity’s proposed Ethereum spot ETF. On January 18, 2024, the SEC announced a 45-day extension to review the proposal more thoroughly. Fidelity #ethereum ETF delayed just now. Completely expected. Dates that really matter are late May in my view. https://t.co/8mvhcPRaS7 — James Seyffart (@JSeyff) January 18, 2024 According to the SEC, this delay ensures “sufficient time to consider the proposed rule change and the issues raised therein.” ETH price is moving sideways on the 4-hour chart. Source: ETH/USDT on TradingView.com Chances Of An Ethereum Spot ETF Approval Notably, the crypto community remains cautiously optimistic. Analysts like Bloomberg’s Eric Balchunas have suggested a 70% likelihood of an Ethereum spot ETF approval by May, especially considering the “multiple applications pending review.” So far, several prominent financial firms, including BlackRock, ARK 21Shares, VanEck, Invesco Galaxy, Fidelity, Hashdex, and Grayscale, are contenders in the race to obtain the US SEC approval for their respective spot Ethereum ETF proposals. Digital asset lawyer Joe Carlasare demonstrated confidence in approval within the year, citing the existing ETH futures trading on the Chicago Mercantile Exchange (CME) and the high correlation of ETH futures to the spot market. Carlasare points out that the SEC’s approv

3 Major Crypto Events to Watch Next Week: Crypto Industry Braces for Crucial Decisions: Key crypto events in D.C. next week: Biden's potential veto of SAB 121 repeal, SEC's decision on Ethereum ETF, and House vote on FIT21 Bill.

SEC'S EVOLVING STANCE ON BITCOIN ETFS: A REASSESSMENT IN LIGHT OF LEGAL DEVELOPMENTS What We Know: U.S. Securities and Exchange Commission (SEC) chair Gary Gensler has signaled a potential shift in the regulator's approach to spot #Bitcoin exchange-traded products (ETFs), citing recent legal decisions and ongoing developments in the crypto space. Key Points: Rethinking Spot Bitcoin ETFs - Gensler acknowledged that the #SEC is currently reviewing "between eight and a dozen" spot Bitcoin #ETF applications. This marks a departure from the regulator's historical denial of such applications. Grayscale Court Decision - The SEC's reconsideration comes after a significant court decision in August. The U.S. Court of Appeals for the D.C. Circuit ruled that the SEC must re-evaluate Grayscale's bid for a spot Bitcoin ETF. - The court emphasized the need for consistent treatment of spot Bitcoin ETFs and those based on futures contracts, which the SEC has previously approved. Gensler's Stance on Industry Compliance - Gensler reiterated concerns about noncompliance with existing securities laws within the crypto industry. - He emphasized the prevalence of fraud and bad actors, addressing issues related to securities laws, anti-money laundering regulations, and public protection. Gensler's Response to Grayscale Query - When questioned about Grayscale's specific status, Gensler remained cautious, stating that all SEC actions align with the laws passed by Congress and interpretations by the courts. Focus on U.S. Treasury Market Changes - In a separate interview, Gensler shifted the focus to recent transformations in the U.S. treasury market, indicating that these developments currently precede the SEC's priorities. Industry Giants in the Race - Notable asset management firms, including #BlackRock, Fidelity, Grayscale, Invesco, VanEck, and Valkyrie, are actively pursuing the launch of spot Bitcoin #ETFs. - Despite delays in the approval process, industry analysts anticipate a potential batch approval in early January. Image: Financial Times #Crypto #CryptoNews

“Maybe once — if at all — in a generation a new asset class is born. We fundamentally believe that crypto is one of those once-in-a-generation opportunities,” said Grayscale CEO Michael Sonnenshein in Politico's Morning Money Newsletter. https://lnkd.in/eNF3jhn - Grayscale Bitcoin Trust (BTC) (the “Trust”) has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the Trust has filed with the SEC for more complete information about the Trust and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the Trust or any authorized participant will arrange to send you the prospectus (when available) if you request it by emailing [email protected] or by contacting Grayscale Securities, LLC, 290 Harbor Drive, Stamford, CT 06902.

Week 2 - 5 Things to Know in Investing This Week Point 2) SEC Delays then Complains About Its Own Decision: Despite the effective track record of both a Bitcoin futures trading vehicle and the Grayscale Bitcoin Trust, the SEC did not want to approve these new ETFs. In its filing, the SEC made clear it was only proceeding because it lost a Court case, and even then, two of five people on the Commission still voted to deny the applications. Gary Gensler, the Chairman of the SEC, chose to indicate they “did not approve or endorse Bitcoin”. There are a couple of problems with that approach. Photo from Getty Images. Caption from Yahoo Finance. DKI Takeaway: The SEC had its X (Twitter) account “hacked”, and a post indicating ETF approval a day early had to be withdrawn. Then, there were widespread rumors that ETF issuers had heard from the SEC they were to receive approval Wednesday after the market close. These rumors were paired with comments that they had come from Gensler so were not certain to be fulfilled. Then, the SEC posted the approvals early on their own website, and had to withdraw them once publicized. The SEC doesn’t look great here. Most importantly, it’s not clear Mr. Gensler understands the asset his Commission just approved. The whole point of Bitcoin is its permissionless. The SEC just allowed traditional asset managers a vehicle to get their clients exposure to Bitcoin. Bitcoin itself is beyond the regulatory powers of any government or bureaucrat. You do not need permission to buy and own Bitcoin.

SEC stance is softening on cryptocurrencies and ETFs. With the addition of Ether, it provides options for enthusiastic investors to divest and invest. With regulations coming in support, security will yet again take the center stage. Thoughts from the market?

BREAKING All ELEVEN Bitcoin ETFs are approved by U.S. Securities and Exchange Commission. MUST READ: There’s a spectacular piece written by Commissioner Hester Peirce to add color to the announcement: “Today’s order does not undo the many harms created by the disparate treatment of spot bitcoin products. First, our arbitrary and capricious treatment of applications in this area will continue to harm our reputation far beyond crypto. Diminished trust from the public will inhibit our ability to regulate the markets effectively. This saga will taint future interactions between the industry and our staff and will dampen the rich, informative dialogue that best protects investors. Second, our disproportionate attention on these filings has diverted limited staff resources away from other mission critical work. Over ten years, likely millions of dollars of staff time has gone toward blocking these applications. Third, our actions here have muddied people’s understanding of what the SEC’s role is. Congress did not authorize us to tell people whether a particular investment is right for them, but we have abused administrative procedures to withhold investments that we do not like from the public. Fourth, by failing to follow our normal standards and processes in considering spot bitcoin ETPs, we have created an artificial frenzy around them. Had these products come to market in the way other comparable products typically have, we would have avoided the circus atmosphere in which we now find ourselves. Fifth, we have alienated a generation of product innovators within our space. Our unreasonable approach to these applications has signaled that regulatory prejudice against new products and services can lead us to sidestep the law and unreasonably delay product launches. The industry has logged hundreds of meetings, has filed submissions, withdrawals and amendments, and ultimately had to resort to a costly legal battle to get us to today. Although this is a time for reflection, it is also a time for celebration. I am not celebrating bitcoin or bitcoin-related products; what one regulator thinks about bitcoin is irrelevant. I am celebrating the right of American investors to express their thoughts on bitcoin by buying and selling spot bitcoin ETPs.[10] And I am celebrating the perseverance of market participants in trying to bring to market a product they think investors want. I commend applicants’ decade-long persistence in the face of the Commission’s obstruction.” Full article in the link below:

**BTC spot ETFs: A moving and momentous dissent** Yesterday, SEC Commissioner Hester Peirce published an excellent comment on the BTC spot ETF approval. The title is just beautiful: “Out, Damned Spot! Out, I Say!” Yes, a regulator is quoting MacBeth in an official document. I could weep. Some key quotes: - “The Commission, rather than admitting error, offers a weak explanation for its change of heart. … Today’s approval order notes that the Commission now finds that means for “preventing fraud and manipulation” have been demonstrated because the prices on the CME bitcoin futures market and the spot bitcoin markets have been highly correlated throughout the past **two-and-a-half years**.” (author emphasis) - “We squandered a decade of opportunities to do our job.” - “Perhaps the one silver lining here is now that we know that the Commission can execute a robust correlation analysis, perhaps the road to approving other spot crypto ETPs will not be as bumpy (even if the Commission insists on continuing to apply a test it applies nowhere else).” - “Today’s order does not undo the many harms created by the disparate treatment of spot bitcoin products.” - “Over ten years, likely millions of dollars of staff time has gone toward blocking these applications.” - “Congress did not authorize us to tell people whether a particular investment is right for them, but we have abused administrative procedures to withhold investments that we do not like from the public.” - “Had these products come to market in the way other comparable products typically have, we would have avoided the circus atmosphere in which we now find ourselves.” - “Our unreasonable approach to these applications has signaled that regulatory prejudice against new products and services can lead us to sidestep the law and unreasonably delay product launches.” - “I am not celebrating bitcoin or bitcoin-related products; what one regulator thinks about bitcoin is irrelevant. I am celebrating the right of American investors to express their thoughts on bitcoin by buying and selling spot bitcoin ETPs.” In this statement, there are two things to be immensely grateful for. 1) One is Commissioner Peirce herself, for having the perspective to understand the role of markets in offering protected choice to investors, the insight to see Bitcoin as a new type of asset with evolving uses cases and potential, and the courage to stand up to her employers, putting her reputation on the line for what she feels is right. 2) The other is that the US system allows dissent among SEC commissioners, that each can say what they think in public (following disclosure laws, obviously) without fear of losing their job. https://lnkd.in/dxdATxay

Five Things to Know in Crypto This Week: SEC v Crypto and Deaton v Warrren | FXEmpire: This week, Ripple CEO Brad Garlinghouse talked about the case, the spot ETF market, and crypto custody in an interview with Bloomberg. Garlinghouse ...