U.S. Expected to Reject Ether ETFs, BlackRock Denies Tokenizing Fund and Bitcoin Miners' Revenue Drops
Summary:
Despite the success of Bitcoin spot ETFs, experts predict the U.S. is unlikely to approve Ether ETFs next month. BlackRock has also clarified that it had no involvement in the tokenization of its $22 billion money market fund on Hedera, resulting in a decline in the token's value. Bitcoin miners are facing diminished revenues due to the quadrennial halving amidst a high network hash rate. Despite these challenges, the overall crypto market conditions remain sturdy.
While Bitcoin spot ETFs have witnessed significant triumph, it appears that Ether ETFs may not receive approval in the U.S. next month, as per insider knowledge. Also, BlackRock, the asset manager, has dispelled rumors of involvement in tokenizing its $22 billion money market fund on Hedera, causing a slight drop in the token’s value. At the same time, a notable decrease in earnings has been reported by miners.
The U.S. Securities and Exchange Commission (SEC) is anticipated to refuse spot Ether (ETH) exchange-traded funds (ETF) in May, as per a recent report. As disclosed in a Reuters report on April 24, U.S. issuers, among other firms, foresee a rejection of these applications following recent regulatory meetings. This information was obtained from four individuals privy to these discussions.
Affected parties have contrasted the anticipated unsuccessful negotiations for Ether ETFs with earlier comprehensive discussions with the regulator ahead of the approval of Bitcoin spot ETFs. Many experts concur over the likelihood of the SEC approving Ether ETFs being further postponed.
Todd Rosenbluth, ETF data analyst from VettaFi, forecasted a delay in approval until sometime in 2024, citing the prevailing regulatory environment as still too hazy. In March, Bloomberg ETF analyst Eric Balchunas calculated the chances of SEC approval at about 35%, suggesting that the reticence towards prospective fund issuers might be intentional.
BlackRock stated it has neither a commercial bond with Hedera nor any intention of utilizing Hedera Hashgraph to tokenize any BlackRock funds, including shares of its high-value money market fund. Consequently, Hedera’s token (HBAR) experienced a sharp drop of 32% after a steady run.
BlackRock’s lack of involvement in the tokenization was confirmed by a spokesperson, clarifying any misinterpretations from recent announcements related to BlackRock funds being tokenized on Hedera.
On the other hand, in the aftermath of the quadrennial halving, Bitcoin miners are contending with a robust network hash rate and reduced revenues. Mining hash price has notably decreased from almost 12 cents in early April to 7 cents post-halving. Hash price, the mining revenue derived per tera-hash, peaked at 19 cents on the halving day. Despite the reduction in revenues, overall market conditions remain steady.
This report does not provide or endorse investment advice. All investment and trading actions carry inherent risk and readers should undertake their own research prior to decisions.
Additional reportage by Geraint Price, Sam Bourgi, and Felix Ng.
Published At
4/25/2024 3:54:10 PM
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