Ethereum

The transition to Proof of Stake (PoS) has subjected Ethereum to increased regulatory scrutiny. The SEC Chairman announced plans to classify Ethereum as a security, and U.S. cryptocurrency exchanges have received pre-litigation warnings concerning their staking programs. CoinFactiva analysts highlight that this regulatory pressure has negatively affected Ethereum&#39;s investment appeal and price dynamics, with the altcoin losing 35% against Bitcoin since September 15, 2022. However, several key developments in 2023 have caused the regulator to reconsider its stance. Grayscale’s significant legal victory in converting the GBTC trust fund into a spot ETF, the complexities of distinguishing between commodities and securities, and the inclusion of cryptocurrencies in U.S. presidential candidates’ platforms have all played a role. On June 13, during a Congressional hearing, SEC Chairman Gary Gensler announced that final approval for an Ethereum ETF would occur this summer, pending necessary amendments. On the same day, long-term holders (addresses with two incoming and no outgoing transactions) purchased 298,000 ETH, worth over $1 billion. Julio Moreno, head of research at CryptoQuant, noted this as the second-largest spike in interest since September 11, 2023.<img src="https://academy-public.coinmarketcap.com/srd-optimized-uploads/0480a72928d744cfa79b87c40c1ff904.jpg" />Bloomberg analyst Eric Balchunas reported on social media platform X that the new requirements are straightforward, and applicants are expected to adjust their filings shortly. He suggested that the approval might come on July 2, just before Independence Day celebrations.Ten contenders have filed for the launch of spot ETFs, including BlackRock, the world’s largest asset management company not only in crypto industry but in general. However, particular attention is on Grayscale’s ETHE fund, set to be converted from a trust. The probability of approval significantly increased on May 20 when the SEC, after a long silence, called for application adjustments. On the same day, investors began buying ETHE shares, as the discount relative to the underlying asset exceeded 20% in mid-May.Read the full story: <a href="https://coinfactiva.com/coinfactiva-analysts-why-ethereum-might-crash-after-the-launch-of-an-etf/" rel="noopener noreferrer nofollow">https://coinfactiva.com/coinfactiva-analysts-why-ethereum-might-crash-after-the-launch-of-an-etf/</a>#coinfactiva #ehtereum #ethereumetfs

CoinFactiva Analysts Explain: Potential Ethereum Crash Post-ETF Launch

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