Day: May 20, 2024

This post was originally published on this site

In a significant market move, the price of ether (ETH) surged more than 10% to $3.4K after Bloomberg analysts substantially increased the likelihood of the U.S. Securities and Exchange Commission (SEC) approving spot ETH exchange-traded funds (ETFs). Previously, markets had largely anticipated SEC rejections of proposed funds this week.

Eric Balchunas, Bloomberg’s Senior ETF Analyst, tweeted that he and colleague James Seyffart raised their odds of spot Ether ETF approval to 75%, up from a mere 25%. Balchunas noted a change in sentiment within the SEC, suggesting a potential shift in the regulatory stance on what he termed an “increasingly political issue.” The sudden alteration caught many by surprise, leading to a flurry of activity as investors reassessed their positions.

The SEC faces imminent deadlines for final decisions on spot ETF approvals or denials, following multiple delays in reaching determinations on these funds.

The surge in ETH prices also lifted Bitcoin (BTC), which gained over 5% and approached the $70,000 threshold. Additionally, the Grayscale Ethereum Trust (ETHE), a closed-end fund that Grayscale seeks to convert into a spot ETF, experienced notable movement. ETHE, which had been trading at a significant discount to its net asset value as investors speculated on SEC disapproval, surged more than 23% on Monday in response to the optimistic outlook for spot ETH ETF approval.

Featured Image: Freepik

Please See Disclaimer

This post was originally published on this site

After a decade-long tenure at Grayscale Investments, Michael Sonnenshein is stepping down as chief executive officer of the cryptocurrency asset manager. He will be succeeded by Peter Mintzberg, currently serving as the global head of strategy for asset and wealth management at Goldman Sachs Asset Management. Mintzberg is set to assume the role of CEO on August 15, according to a press release from Grayscale. During this time, Edward McGee, the Chief Financial Officer, will assume leadership of the company.

Sonnenshein, who joined Grayscale in 2014 and served as CEO for the past three years, decided to depart to pursue other interests, the company stated. The Wall Street Journal was the first to report this news.

During Sonnenshein’s tenure, Grayscale achieved a significant victory against the SEC, leading to the approval of the first spot-Bitcoin ETFs. The company had long sought to convert its Grayscale Bitcoin Trust (ticker GBTC) into an exchange-traded fund. However, since the conversion, GBTC has experienced substantial outflows, with investors gravitating towards newly launched, more cost-effective spot-bitcoin ETFs.

GBTC, once a primary avenue for investors to gain exposure to Bitcoin without directly purchasing the token, reached assets of nearly $44 billion in 2021. However, since the ETF conversion in January, GBTC has seen outflows exceeding $17.6 billion. In contrast, other US spot-bitcoin funds have attracted positive inflows this year, with BlackRock’s $15.6 billion leading the pack. GBTC’s 1.5% expense ratio has been cited as a deterrent for investors, compared to the lower fees charged by other funds.

Sonnenshein defended GBTC’s relatively high fee in a January interview with Bloomberg TV, citing the company’s size, liquidity, and track record. Despite Grayscale’s efforts to convert GBTC into an ETF, the SEC rejected the proposal in 2022, arguing that a Bitcoin-based ETF lacked sufficient oversight to detect fraud. Grayscale responded with a lawsuit against the SEC, alleging discrimination against its product while approving similar Bitcoin-futures ETFs.

The search for a new CEO began in late 2023, according to sources familiar with the matter cited by the Wall Street Journal. However, the decision was unrelated to GBTC’s performance or outflows.

The crypto asset class stands at a crucial turning point, making this the opportune time for a seamless transition, Sonnenshein expressed in a press release.

Featured Image: Freepik

Please See Disclaimer