SEC Anticipates Ether ETF Trading, MicroStrategy Raises Funds for Bitcoin, and Whale Investors Seize the Dip
Summary:
SEC Chair Jerome Powell has hinted at the potential start of Ether ETF trading over the summer. MicroStrategy is raising $500 million to increase its Bitcoin acquisitions. Amidst falling Bitcoin prices, large-scale investors purchased 20,600 BTC on June 11 which equates to roughly $1.4 billion, and Terraform Labs settles with the US securities regulator for $4.47 billion.
Jerome Powell, the Chair of the United States Securities and Exchange Commission (SEC), has provided an estimated timeline for the commencement of spot Ether (ETH) exchange-traded funds. In the meantime, MicroStrategy, under the leadership of Michael Saylor, is seeking to raise $500 million to increase their Bitcoin holdings. On June 11, with the price of Bitcoin falling prior to an FOMC meeting, whale addresses purchased nearly $1.4 billion of the cryptocurrency. In other news, Terraform Labs is committed to a $4.47 billion settlement with the US securities regulator.
SEC Chief Gary Gensler, in a recent hearing with the Senate Banking Committee, hinted that spot Ether (ETH) ETFs could start trading in the US over the summer. This was after S-1 registration approvals for ETH asset managers by the securities regulator.
On May 23, the SEC gave the green light to 19b-filings from multiple asset managers. These approvals, however, need to be followed by the endorsement of S-1 filings before the ETH ETFs can become operational. Gensler confirmed that the process is running smoothly and that he expects all approvals to be completed by the summer.
MicroStrategy plans to offer $500 million in convertible senior notes due 2032 to raise additional funds for Bitcoin as well as other general purposes. The sale to institutional buyers will be subject to Rule 144A of the Securities Act 1933 and other prevailing market conditions and factors. Despite these factors, this move is consistent with MicroStrategy's long-term strategy of employing Bitcoin as its treasury reserve asset.
As per data from blockchain analytics firm CryptoQuant, Bitcoin whales made the most of the cryptocurrency's recent price plunge on June 11, accumulating 20,600 BTC worth $1.38 billion on the day. This accumulation marks the largest single-day inflow for Bitcoin whales since February 28. During the price slump, Bitcoin inflows to whale accounts ranged between 1,300 and 2,200 per day, leading to a major influx of 20,600 BTC on June 11. Figures for June 12 are not yet available, but Bitcoin's price saw a temporary surge due to surprisingly positive CPI results.
Reporters Geraint Price, Sam Bourgi, and Felix Ng contributed to this article.
Published At
6/13/2024 7:55:16 PM
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