Bitcoin Hits Yearly Low, SEC Drops Ethereum Investigation; Hashdex Prepares Joint Crypto Fund
Summary:
Bitcoin network's average block size dipped to a yearly low on June 7, indicating a decline in the blockchain's activity. The SEC has ceased its investigation into Ethereum as a security, offering a significant boost to the cryptocurrency sector. Concurrently, Hashdex is set to launch a combined Bitcoin and Ether fund on Wall Street, pending approval from U.S regulators.
On June 7, the Bitcoin (BTC) network took a record dip this year in the size of its individual blocks. In a significant step forward for the cryptocurrency world, an investigation by the SEC's Enforcement Division into whether or not Ethereum is a security has been brought to an end. Concurrently, Hashdex is preparing to unveil a unified Bitcoin and Ether cryptocurrency fund on Wall Street, subject to approval by US regulators.
The Bitcoin network experienced a notable decrease in the average size of its blocks and transaction rates, just at the same time its price dropped to loosely $64,100. This reduction in block size, a quantity indicating the amount of transaction data contained in each block, denotes a steep decline in the activity on the Bitcoin (BTC) blockchain, a sign apparent as of June 7.
The rate of transaction per second (TPS) on the network also fell in June, suggesting lessened activity and possible impacts on the profitability for miners due to reduced rewards post-BTC halves.
The United States Securities and Exchange Commission has terminated its probe into whether Ether (ETH) is a security, according to Ethereum's developer, Consensys. "On June 19th, we received a notification from the SEC's Enforcement Division about them terminating their investigation into Ethereum 2.0," they stated.
"The SEC has chosen not to press charges insinuating that ETH sales are securities transactions," Consensys declared, celebrating the decision as a significant achievement for Ethereum developers, technology providers, and industry stakeholders.
According to Consensys, this decision by the SEC was made after they issued a letter to the regulator on June 7, inquiring whether they would cease their investigation into Ether. This happened after the regulatory body greenlighted ETH exchange-traded funds (ETFs) in May, which Consensys asserted "assumes ETH as a commodity."
On June 18, Hashdex proposed to the United States Securities and Exchange Commission (SEC) the creation of a united spot Bitcoin (BTC) and Ether (ETH) exchange-traded fund on the Nasdaq exchange. The suggested ETF would align crypto assets in line with their market capitalizations, recorded as 70.54% BTC and 29.46% ETH on May 27.
Hashdex maintained that its passive investment approach would reflect the daily market movement based on the Nasdaq Crypto US Settlement Price Index without actively attempting to outperform it. Both Coinbase and BitGo will assume responsibility for safekeeping of the BTC and ETH assets. Analyst James Seyffart praised the combined-asset ETF as a logical move.
Also contributing to this news report, are journalists Geraint Price, Sam Bourgi and Felix Ng.
Published At
6/19/2024 4:09:15 PM
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