BTC price turned downwards as the U.S. markets opened following statements by Fed members. The ETF also started to decline at the same time. The daily low was temporarily at $2,878, but at the time of writing, it continues to find buyers below $2,900. 2024 is not going as expected for ETH.
Ethereum Breaking News
Just minutes before the Spot Ether ETF application by Ark and 21Shares, the staking section was removed. This part was a detail where ETH ETF holders could earn an extra 4-5% annually. Previously, we had mentioned that the benefit of staking for ETF holders would be a significant supportive event in terms of demand.
The SEC has been virtually waging war against Ethereum and its ecosystem for the last few weeks. It now openly states that the transition to PoS has turned the altcoin king into an investment contract/security. Given that ETH cannot revert to PoW, there are only two paths ahead: either convince the SEC or face the risk of being crushed under devastating legal pressure.
By the end of this month, a final decision will be made on the Spot ETH ETF application by Ark Invest. Given the legal battle initiated by the SEC, approval of this ETF under current conditions is no longer expected. Likely, taking into account equal opportunity and a prolonged legal process, Fidelity and BlackRock will announce their final decision in August ahead of time.
However, there is another detail here. BlackRock’s CEO had stated that even if ETH is labeled a security, they could still launch an ETF. Could ARK Invest have removed the staking part from the application file after contacting the SEC and receiving feedback? Although it’s a slim chance, it will become clearer in the coming days.
