SEC Approves Ether ETFs, Montenegro Discusses Do Kwon Case, Bybit CEO Debunks Insolvency Rumors
Summary:
The United States Securities and Exchange Commission greenlights spot Ether ETFs in a landmark decision, stimulating speculation that Ether is not a security. The Montenegrin government discusses the Do Kwon case with SEC, whilst Bybit's CEO Ben Zhou debunks rumors about the exchange's insolvency, showing proof of reserves exceeding 100% of user deposits.
In a noteworthy ruling by the United States securities regulator, spot Ether ETFs have been given the green light, although it didn’t noticeably raise the value of ETH. The Minister of Justice in Montenegro has been in talks with the United States Securities and Exchange Commission (SEC) regarding the legal action against Do Kwon, while unfounded rumors about the impending collapse of Bybit were categorically dismissed by the CEO of the exchange. Following SEC approval, Ethereum ETFs are one step closer to becoming a reality.
A second groundbreaking regulatory approval this year from the United States Securities and Exchange Commission has paved the way for the listing and trading of spot Ether (ETH) exchange-traded funds (ETFs) in the United States. The SEC gave clearance to the 19b-4 submissions from several key players in the market, including VanEck, BlackRock, Fidelity, Grayscale, Franklin Templeton, ARK 21Shares, Invesco Galaxy, and Bitwise, as revealed in filings from May 23. The decision came amid widespread speculation that the SEC may classify Ether as a security, but many believe the recent decision implies that Ether is not a security.
Despite a slight dip immediately before the announcement, Ether quickly rallied, with the price currently at $3,806. Some market observers attribute the lack of a significant price shift to earlier pricing in of the Ether approvals, while others argue that it’s due to the absence of S-1 approvals needed for the ETFs to launch.
Discussions regarding the Do Kwon case have been taking place between the SEC and the Montenegrin government. For the first time, the Montenegrin government has entered into a dialogue with the U.S. SEC in connection with the arrest of Terraform Labs co-founder Do Kwon. This was outlined in a notice issued by the Montenegrin government on May 22.
The dramatic failure of Terraform in 2022, one of the largest in the history of the crypto market, precipitated a crypto winter characterized by a prolonged slump in digital asset values.
In response to rumors suggesting that Bybit, a cryptocurrency exchange, was hacked and insolvent, CEO Ben Zhou firmly debunked these claims. On May 22, rumors began to circulate that Bybit could be insolvent. Memes mocking a popular FTX-related post gained momentum, intensifying the speculation.
Despite what appeared in a graph to suggest an imminent collapse of Bybit, closer scrutiny revealed that the exchange’s funds were in order. Bybit dispelled the rumors on May 23, labeling them as baseless. Zhou referred to proof of reserves (PoR) and a Nansen dashboard to support his statement, showing Bybit's assets exceeded 100% of user deposits, assuring users that funds will be readily available if needed.
Contributing reporters were Geraint Price, Sam Bourgi, and Felix Ng.
Published At
5/24/2024 3:42:58 PM
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