Bitcoin

SEC Approves Ether ETFs as Crypto Moves Closer to Mainstream

Published

7 months ago

23 July, 2024

SEC Approves Ether ETFs as Crypto Moves Closer to Mainstream

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The U.S. Securities and Exchange Commission has approved the first ethereum exchange-traded funds, another milestone for cryptocurrency advocates and investors following the debut of bitcoin ETFs earlier this year.

The ether ETFsincluding the conversion of a $9.3 billion Grayscale investment fund and new offerings from bitcoin ETF giants BlackRock and Fidelity, won SEC approval on Monday afternoon, with trading scheduled to begin as early as Tuesday, according to fund sponsors. The SEC did not immediately respond to a request for comment.

Ether is the native cryptocurrency of the Ethereum blockchain and is the second largest crypto token in the world, behind Bitcoin, with a market capitalization of around $415 billion.

The approvals, which follow those for ether futures ETFs last year, give the cryptocurrency a firmer footing Traditional USA finance after the launch of the first spot bitcoin ETFs in the US in January.

“Traditional asset management can no longer ignore crypto as an asset class,” said Matt Hougan, chief investment officer at crypto fund sponsor Bitwise. “I think you’ll see effectively everyone embrace this space.”

As was the case with bitcoinEthereum ETF issuers are vying for investor interest with a relatively narrow range of fees. Final charges for all but one of the products would be below 0.25 percent, with at least five issuers planning to waive fees entirely at the outset, according to data compiled by Bloomberg Intelligence.

There is one glaring exception to the price war: Grayscale Investments will maintain the 2.5 percent management fee for its large converted ethereum ETF while seeding a “mini” version with 10 percent of the larger ETF’s assets. The smaller sibling is expected to have the lowest post-waiver fee of the initial ether ETFs at 0.15 percent.

Grayscale also kept the management fee for its bitcoin ETF at 1.5 percent in January — down from an initial 2 percent but still well above its competitors. That decision has generated $160 million in fee revenue for Grayscale’s bitcoin ETF so far in 2024, the third-highest of any U.S. ETF and good for 2 percent of all U.S. ETF revenue. according to Bryan Armour, director of passive strategies research at Morningstar.

These ether products are not expected to initially attract as much investment as bitcoin ETFs, into which investors have poured more than $17 billion in new money in the past six months since their launch.

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While the Ethereum blockchain has a wide range of uses beyond storing value, investors may not be able to understand it, unlike the common reference point for Bitcoin as “digital gold,” said Tim Ogilvie, global head of institutional at Kraken, a U.S. cryptocurrency exchange.

“I would be surprised if you see a similar explosive start for ETH,” Ogilvie said.

Hougan predicted that ether ETFs would attract about $15 billion in their first 18 months on the market. He added that flows into the new funds “may be a little choppy” in the summer.

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Bitcoin

Big Tech Outperforms Bitcoin (BTC) as Trump Deal Weakens Token

Published

7 months ago

1 August, 2024

Financial Block Staff

Big Tech Outperforms Bitcoin (BTC) as Trump Deal Weakens Token

Bitcoin has lost out on an asset rally fueled by positive comments from the Federal Reserve, while a tight US election race casts doubt on whether Donald Trump will get the chance to implement his pro-crypto agenda.

The digital asset fell 2.4% on Wednesday, following a Fed-fueled surge in an index of megacap tech stocks Magnificent Seven by one of the largest margins in 2024. The token retreated further on Thursday, changing hands at $63,750 as of 6:10 a.m. in London.

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Bitcoin

‘This is huge’ — Billionaire Mark Cuban issues ‘incredible’ Bitcoin and crypto prediction amid price slump

Published

7 months ago

1 August, 2024

Financial Block Staff

'This is huge' — Billionaire Mark Cuban issues 'incredible' Bitcoin and crypto prediction amid price slump

Bitcoin
Bitcoin
came back with a vengeance this year when former President Donald Trump Cryptocurrency boosts US presidential election in November with ‘revolutionary’ plan.

Subscribe now to Forbes CryptoAsset and Blockchain Consultant and “discover blockchain blockbusters poised to generate 1,000%+ gains” after the bitcoin halving earthquake!

The price of bitcoin has surged to more than its all-time high in recent months, surpassing $70,000 per bitcoin and triggering a wave of mega-optimistic predictions about the price of bitcointhough it fell again this week, falling below $65,000 after the Federal Reserve kept interest rates steady.

Now, as Elon Musk suddenly breaks his silence on bitcoin and cryptocurrenciesBillionaire investor Mark Cuban called a California plan to digitize 42 million car titles using blockchain an “incredible step forward” and “huge” for cryptocurrencies.

Sign up for free CryptoCodex now—A daily five-minute newsletter for traders, investors, and crypto curious people that will keep you up to date and ahead of the bitcoin and crypto bull market

ForbesElon Musk Suddenly Breaks His Silence On Bitcoin After Issuing Shocking Warning Of US Dollar “Doom” That Could Trigger Cryptocurrency Price BoomBy Billy Bambrough

Mark Cuban, famous Shark Tank investor and billionaire owner of the NBA team Dallas Mavericks, has… [+] called a cryptocurrency update “amazing” amid bitcoin’s price slump.

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The California Department of Motor Vehicles (DMV) has digitized 42 million car titles using blockchain, it was reported by Reuters, through technology company Oxhead Alpha on the Avalanche blockchain and designed to detect fraud and facilitate the securities transfer process.

“This is an incredible development for crypto,” Cuban, best known as an investor on TV’s Shark Tank and owner of the Dallas Mavericks NBA team, posted on X, joking that U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler could sue the state as part of his hostility toward cryptocurrencies and blockchain technology.

“The reason this is huge for crypto is because people who hold the tokens will have an app with an Avalanche wallet,” Cuban said. “Tens of millions of Californians having and using a crypto wallet in the next five years, or however long it takes, normalizes the use of wallets and crypto.”

John Wu, president of Avalanche developer Ava Labs, told Reuters that California’s DMV is “creating a wallet that you can download on your phone.”

Sign up for CryptoCodex now—A free daily newsletter for the crypto-curious

ForbesCryptocurrencies Are Suddenly Bracing For A ‘Very Major’ U-Turn In China After Wild Price Swings For Bitcoin, Ethereum, XRPBy Billy Bambrough

Bitcoin’s price has rallied this year, triggering a wave of bullish bitcoin price predictions from… [+] people like billionaire Mark Cuban.

Forbes Digital Assets

Last month, Cuban predicted that if the US dollar falls as the global reserve currency, bitcoin could become “a global ‘safe haven’” and a “global currency.” potentially sending the price of bitcoin to a much higher level.

According to Cuban, bitcoin could become what its most ardent supporters “envision” — a means “of protecting our economies… This is already happening in countries facing hyperinflation.”

The price of bitcoin has skyrocketed over the past year, largely due to the world’s largest asset manager, BlackRock, leading a bitcoin attack on Wall Street.

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Bitcoin

Bitcoin (BTC) miner Riot Platforms (RIOT)’s second-quarter loss widens to $84.4 million as costs rise

Published

7 months ago

1 August, 2024

Financial Block Staff

Bitcoin Mining Profitability Surges in June as Market Adjusts for Halving: Jefferies

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Bitcoin

Why Trump Wants the US Government to Have a “National Stockpile” of Bitcoin

Published

7 months ago

1 August, 2024

Financial Block Staff

Why Trump Wants the US Government to Have a “National Stockpile” of Bitcoin

At a national bitcoin conference in Nashville, Donald Trump finally laid out some of his crypto policy proposals, including a long-awaited part of his plan — building a strategic bitcoin reserve. CNN’s Jon Sarlin explains what it is and why the crypto industry wants it.

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