• US SEC approves Ethereum ETFs after years regulatory process.
• Grayscale has launched two spot Ether ETFs on NYSE Arca after the SEC’s approval.
• The SEC has also approved VanEck Ethereum ETF.

In a landmark decision for the cryptocurrency investment space, the US Securities and Exchange Commission (SEC) has granted approval for Grayscale and VanEck Ethereum exchange-traded funds (ETFs), paving the way for broader institutional and retail investor access to Ethereum (ETH).

This move marks a significant milestone in the regulatory landscape for digital assets in the United States.

‘Notice of Effectiveness’ for VanEck Ethereum ETF

The VanEck Ethereum ETF, which has been in the pipeline for over three years, received its “Notice of Effectiveness” on July 22, 2024.

This regulatory green light follows a protracted process of filings and amendments, including the crucial S-1 registration form and Rule 424(b)(3) prospectus, which were amended several times to meet SEC compliance requirements, detail the ETF’s structure and offerings.

VanEck’s approval comes amid a flurry of activity in the crypto ETF sector. Ether ETFs from BlackRock, Fidelity, 21Shares, Bitwise, Franklin Templeton, and Invesco Galaxy were also approved to begin trading on Tuesday, July 23.

This development further highlights the growing acceptance of cryptocurrency-based investment products in traditional financial markets.

Two Grayscale Ether ETFs launch on NYSE Arca after SEC’s greenlight

While a majority of the submitted Ethereum ETFs were approved on July 22, the Grayscale’s Ethereum ETFs remained unapproved until July 23 morning when they were approved.

Immediately after their approval, the two Ether ETFs were launched on NYSE Acra.

.They did the same for GBTC, waited until the morning of launch pic.twitter.com/iTDwb3hpDi

— Scott Johnsson (@SGJohnsson) July 22, 2024

Grayscale’s ETFs, the Grayscale Ethereum Trust (ETHE) and the Grayscale Ethereum Mini Trust (ETH), began trading on July 23, 2024.

The ETHE, which is currently the world’s largest Ether-based ETF with $9.19 billion in assets, will charge investors a 2.5% management fee.

In contrast, the Ethereum Mini Trust has waived its fees for the first six months or until it accumulates $2 billion in assets, after which a 0.15% fee will apply, making it the most cost-effective spot Ether ETF available in the U.S.

John Hoffman, Grayscale’s managing director, emphasized the transformative potential of these ETFs, stating, “ETH and ETHE will allow investors to tap into Ethereum’s ability to create markets, reshape financial systems, and drive innovation through decentralized finance (DeFi) and other applications, all without the need to directly manage Ether.”

In preparation for the ETF launches, Grayscale transferred over $1 billion worth of Ether to Coinbase on July 22. This transfer was crucial for aligning with the new product structure and mitigating potential outflows from existing investors.

Notably, ETHE holders will receive the new Ether-backed product at a 1:1 ratio, avoiding any capital gains tax implications.

Analysts predict the approval of Ethereum ETFs could spur ETH price surge

The SEC’s approval and the subsequent launch of these ETFs signal a burgeoning acceptance of cryptocurrency assets in mainstream financial products.

Market analysts, including Bloomberg’s James Seyffart, anticipate that these ETFs could attract substantial investment flows, potentially driving Ether’s price higher.

Some experts, like Bitwise’s Matt Hougan, forecast that Ether’s price might surpass its all-time high, projecting a rise to over $5,000 by the end of 2024.

At press time, Ethereum (ETH) was trading at $3,513.09 up from a low of $3,384 on July 19.

The advent of these regulated Ethereum investment vehicles represents a significant step forward for the cryptocurrency market, offering new opportunities for investors and reflecting an evolving regulatory approach to digital assets.

• US SEC approves Ethereum ETFs after years regulatory process.
• Grayscale has launched two spot Ether ETFs on NYSE Arca after the SEC’s approval.
• The SEC has also approved VanEck Ethereum ETF.

In a landmark decision for the cryptocurrency investment space, the US Securities and Exchange Commission (SEC) has granted approval for Grayscale and VanEck Ethereum exchange-traded funds (ETFs), paving the way for broader institutional and retail investor access to Ethereum (ETH).

This move marks a significant milestone in the regulatory landscape for digital assets in the United States.

‘Notice of Effectiveness’ for VanEck Ethereum ETF

The VanEck Ethereum ETF, which has been in the pipeline for over three years, received its “Notice of Effectiveness” on July 22, 2024.

This regulatory green light follows a protracted process of filings and amendments, including the crucial S-1 registration form and Rule 424(b)(3) prospectus, which were amended several times to meet SEC compliance requirements, detail the ETF’s structure and offerings.

VanEck’s approval comes amid a flurry of activity in the crypto ETF sector. Ether ETFs from BlackRock, Fidelity, 21Shares, Bitwise, Franklin Templeton, and Invesco Galaxy were also approved to begin trading on Tuesday, July 23.

This development further highlights the growing acceptance of cryptocurrency-based investment products in traditional financial markets.

Two Grayscale Ether ETFs launch on NYSE Arca after SEC’s greenlight

While a majority of the submitted Ethereum ETFs were approved on July 22, the Grayscale’s Ethereum ETFs remained unapproved until July 23 morning when they were approved.

Immediately after their approval, the two Ether ETFs were launched on NYSE Acra.

.They did the same for GBTC, waited until the morning of launch pic.twitter.com/iTDwb3hpDi

— Scott Johnsson (@SGJohnsson) July 22, 2024

Grayscale’s ETFs, the Grayscale Ethereum Trust (ETHE) and the Grayscale Ethereum Mini Trust (ETH), began trading on July 23, 2024.

The ETHE, which is currently the world’s largest Ether-based ETF with $9.19 billion in assets, will charge investors a 2.5% management fee.

In contrast, the Ethereum Mini Trust has waived its fees for the first six months or until it accumulates $2 billion in assets, after which a 0.15% fee will apply, making it the most cost-effective spot Ether ETF available in the U.S.

John Hoffman, Grayscale’s managing director, emphasized the transformative potential of these ETFs, stating, “ETH and ETHE will allow investors to tap into Ethereum’s ability to create markets, reshape financial systems, and drive innovation through decentralized finance (DeFi) and other applications, all without the need to directly manage Ether.”

In preparation for the ETF launches, Grayscale transferred over $1 billion worth of Ether to Coinbase on July 22. This transfer was crucial for aligning with the new product structure and mitigating potential outflows from existing investors.

Notably, ETHE holders will receive the new Ether-backed product at a 1:1 ratio, avoiding any capital gains tax implications.

Analysts predict the approval of Ethereum ETFs could spur ETH price surge

The SEC’s approval and the subsequent launch of these ETFs signal a burgeoning acceptance of cryptocurrency assets in mainstream financial products.

Market analysts, including Bloomberg’s James Seyffart, anticipate that these ETFs could attract substantial investment flows, potentially driving Ether’s price higher.

Some experts, like Bitwise’s Matt Hougan, forecast that Ether’s price might surpass its all-time high, projecting a rise to over $5,000 by the end of 2024.

At press time, Ethereum (ETH) was trading at $3,513.09 up from a low of $3,384 on July 19.

The advent of these regulated Ethereum investment vehicles represents a significant step forward for the cryptocurrency market, offering new opportunities for investors and reflecting an evolving regulatory approach to digital assets.

George Town, Cayman Islands, July 22nd, 2024, Chainwire

Zircuit, a fully EVM-compatible ZK rollup with AI-enabled sequencer level security, today announced it raised a Mainnet funding round with participation from Binance Labs, Mirana Ventures, Amber Group, Selini, Robot Ventures, Nomad Capital, Borderless Capital, and prominent angel investors including the founders of Renzo, Etherfi, Pendle, Parallel, LayerZero, Axelar, F2Pool, Nonce, KelpDAO, ETHGlobal, Maelstrom, and more. With this new funding, Zircuit will be able to supercharge ecosystem growth and activity on its network, building upon a strong technical foundation and over $2.9 billion in staked assets.

Since 2022, the Zircuit team has built a new L2 network that introduces a revolutionary new approach to onchain security. Zircuit protects dApps and their users from blockchain vulnerabilities through its novel infrastructure that is armored by sequencer-level security and built-in, automated AI techniques to guard against smart contract exploits and malicious actors. The network’s hybrid architecture also results in a fast, low-cost, and fully EVM-compatible ZK rollup, offering unparalleled security for users without compromising speed or compatibility.

Bolstered by its strong security infrastructure, Zircuit plans to become a central hub for restaked assets that features unparalleled security and allows users to earn industry-leading yields natively. The landscape of liquid restaking is still nascent and rapidly evolving and new LRT protocols are constantly emerging, making it challenging for even experienced users to track and choose the best and the safest protocols for deploying their capital. Zircuit aims to address this problem by becoming a major liquidity hub for restaked assets (ETH, BTC, LSTs, and LRTs) where users can easily allocate their capital and have peace of mind knowing that funds are deployed to the safest and highest quality protocols.

“At Binance Labs, we support projects that are innovating in Web3 and accelerating the blockchain industry. Through its integration of sequencer level security, Zircuit is providing a more secure L2 solution and we look forward to watching it grow and develop further,” said Yi He, Co-Founder of Binance and Head of Binance Labs.

“Security has been a persistent issue in the crypto space, with breaches occurring almost daily. Zircuit, founded by top security veterans, leads the industry with its best-in-class security architecture. The team’s clear growth strategy has led to explosive growth in assets locked since launch,” said Erick Zhang, Managing Partner of Nomad Capital. “We are excited to support and continue working with the Zircuit team.”

“As the web3 space accelerates toward mainstream adoption, Zircuit will empower this growth by providing the necessary infrastructure to onboard the masses. Our years of research into rollups and blockchain security have allowed us to build an L2 network with unparalleled security and scalability. We’re proud to have the support of Binance Labs, Mirana Ventures, and our other investors as we approach our first phase of Mainnet and establish Zircuit as a cornerstone in the industry,” stated Martin Derka, co-founder of Zircuit.

Zircuit’s Mainnet Phase 1 is set to launch in the coming weeks.

To learn more about Zircuit, users can visit zircuit.com or read the developer docs at docs.zircuit.com

To participate in Build to Earn, users can visit: https://build.zircuit.com/

To participate in Zircuit Staking, users can visit: https://stake.zircuit.com/

About Zircuit

Zircuit is a ZK rollup with AI-enabled sequencer-level security and parallelized circuits. Built by a team of web3 security veterans and PhDs in computer science, algorithms, and cryptography, Zircuit’s unique architecture combines the best of both worlds of performance and security. To learn more visit zircuit.com or follow us on Twitter/X @ZircuitL2

 

Contact

Jessica
Zircuit
[email protected]

The USD/CAD exchange rate has risen for five consecutive days as investors focus on the upcoming Bank of Canada (BoC) decision and US Personal Consumption Expenditure (PCE) data. It rose to 1.3765 on Tuesday, its highest point since June 14th.

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Bank of Canada rate decision

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The Bank of Canada will be in the spotlight on Wednesday as it delivers its interest rate decision on Wednesday.

Analysts expect that the bank will continue cutting interest rates in a bid to stimulate growth and lessen the burden of Canadians. 

If this happens, the BoC will slash interest rates from 4.75% to 4.5% and then point to a few more cuts later this year. In a recent statement, analysts at ING Bank said:

“With inflation now comfortably within its 1-3% target range and rising labour supply and weaker hiring pushing the unemployment rate up by 1.6 percentage points from its July 2022 lows, there is growing evidence that excess supply is forming in the economy.”

The analysts expect the bank to cut rates by another 50 basis points later this year. Like in the US, the BoC is mostly concerned about the country’s unemployment rate, which has risen gradually in the past few weeks.

At the same time, Canada’s inflation has moved in the right direction in the past few weeks. The most recent data showed that the headline Consumer Price Index (CPI) dropped to 2.7% in June from 2.7% in May. Inflation peaked at 8.1% in 2022. 

The USD/CAD pair has also risen because of the performance of the crude oil prices. Recent data shows that the price of West Texas Intermediate (WTI) retreated to $78, from this month’s high of $84.50. Brent, the global benchmark, has also dropped to $82 from this month’s high of $88.

The Canadian dollar reacts to crude oil because the country is the fourth-biggest exporter in the world after Saudi Arabia, the United States, and Russia. 

Personal Consumption Expenditure data ahead

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The other important USD/CAD news will be the upcoming US GDP and Personal Consumption Expenditure (PCE) data set for Thursday and Friday. 

Economists expect the data to show that the economy expanded by 1.9% in the second quarter after growing by 1.4% in Q1. The US will also publish the latest durable goods orders, an important leading indicator. 

While these numbers are important, their impact on the US dollar will be limited. Instead, traders will focus on the upcoming PCE report. PCE is a crucial inflation measure that looks at price changes in rural and urban areas. As a result, the Fed prefers it to the Consumer Price Index (CPI) data that looks at urban prices.

Economists expect the report to show that the headline PCE softened from 2.6% to 2.4% in July while the core CPI slowed from 2.6% to 2.5%. On a MoM basis, the number two numbers are expected to come in at 0.2% and 0.1%. 

A bigger drop than expected will be a positive thing for the market as it will increase the odds of a future rate cut. Earlier this month, data showed that the CPI dropped to 3.0% in July.

The US will also publish the latest personal income and spending data. The expectation is that income dropped from 0.5% to 0.4% in July while personal spending rose to 0.3%. 

These numbers will come a few days before the Federal Reserve meets for its July interest rate decision. In this meeting, analysts expect that the bank will leave rates unchanged between 5.25% and 5.50%. 

The Fed will provide more hints that it plans to cut rates as soon as in its September meeting. These hints will continue at the Jackson Hole Symposium in August, which will happen after it receives next week’s jobs numbers and the July inflation report.

USD/CAD technical analysis

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USD/CAD chart by TradingView

The daily chart shows that the USD to CAD exchange rate has been in a strong uptrend in the past few days. It has jumped for five straight days and is hovering at its highest point since June 14th. 

The current rally happened after the pair formed a small morning star pattern on July 11th. The lower side of the star pattern was at 1.3595, which coincided with the lower side of the ascending channel. 

The pair has risen above the 50-day moving average while oscillators are pointing upwards. Therefore, the pair will likely continue rising as buyers target the upper side of the channel at 1.3850. In contrast, analysts at ING noted:

“USD/CAD appears to have limited room on both the upside and downside at this stage. The dovish repricing in Fed rate expectations is negative for USD/CAD, but the loonie normally underperforms most G10 peers when USD rates decline.”

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