Ethereum ETF issuers file updated drafts, ETH staking still a possibility
|- Ethereum ETF issuers have started filing their final S-1 registration statements.
- SEC Commissioner Hester Peirce believes the regulator could reconsider allowing staking in Ethereum ETFs.
- Ethereum whales could help ETH reach predicted all-time high of $5,627.
Ethereum (ETH) is down 1% on Wednesday as issuers began filing their final spot ETH ETF S-1 drafts with the Securities & Exchange Commission (SEC) in anticipation of a launch on July 23. Meanwhile, SEC commissioner Hester Peirce also said the regulator may reconsider its position on ETH staking within the ETFs.
Daily digest market movers: Issuers file final S-1s, ETH ETF staking still a possibility
Ethereum ETF issuers filed their final S-1 drafts with the SEC today after Bloomberg analyst Eric Balchunas reported earlier that the regulator asked them to submit the documents before the end of Wednesday. The final drafts of isseurs importantly revealed fees for their respective products:
- 21Shares Core Ethereum ETF revealed a 0.21% fee and a six-month waiver on the first $500 million. The product will be traded under the ticker CETH.
- Grayscale Ethereum Trust maintained high fees coming in at 2.5%.
- Grayscale Ethereum Mini Trust sets fee at 0.25%.
- Bitwise Ethereum ETF revealed a fee of 0.20%.
- Invesco Galaxy Ethereum ETF disclosed a fee of 0.25%.
- Franklin Ethereum Trust revealed a fee of 0.19%
- iShares Ethereum Trust sets fee at 0.25%
The SEC approved spot ETH ETF 19b-4 filings of eight issuers on May 23 but needs to greenlight their S-1 registration statements before the products can go live.
The SEC could give final approval to issuers S-1s and okay them for trading on Tuesday, noted Balchunas in an X post on Monday.
Meanwhile, SEC commissioner Hester Peirce said issuers allowing staking within Ethereum ETFs could be open for reconsideration in the future.
"I think certainly something like staking, or any feature of the product (...) those are always open for reconsideration as far as I'm concerned," said Peirce. Issuers had earlier removed staking from their applications after speculations that the SEC wasn't comfortable with the concept.
ETH technical analysis: Ethereum whales could lead rally
Ethereum is trading around $3,410 on Wednesday, down nearly 1% on the day. In the past 24 hours, ETH has sustained $32.28 million worth of liquidations, with long and short liquidations accounting for $17.22 million and $14.96 million, respectively.
ETH options open interest (OI) increased slightly after a 13% rise yesterday. Open interest is the total amount of unsettled contracts in a derivatives market. ETH's continued rising options OI, combined with its recent price increase, indicates potential for more upside in the market.
Also, IntoTheBlock noticed buying pressure from wallets holding at least 0.1% of ETH's supply after its price bounced from lows seen in the past week. This indicates whales are increasing their holdings in hopes of a rally if ETH ETF launches on Tuesday.
With ETH ETF issuers filing their final S-1 drafts, popular trader Peter Brandt's earlier prediction of ETH potentially reaching a new all-time high of $5,627 is gaining more strength.
ETH/USDT 1-day chart
Brandt predicted that if ETH can complete a move to the upside of a four-month rectangle — with upper and lower boundaries at $4,093 and $2,800 — it could set a new all-time high at $5,627.
On the downside, ETH could find support around $3,235, where investors purchased over 4.54 million ETH.
Cryptocurrency metrics FAQs
The developer or creator of each cryptocurrency decides on the total number of tokens that can be minted or issued. Only a certain number of these assets can be minted by mining, staking or other mechanisms. This is defined by the algorithm of the underlying blockchain technology. Since its inception, a total of 19,445,656 BTCs have been mined, which is the circulating supply of Bitcoin. On the other hand, circulating supply can also be decreased via actions such as burning tokens, or mistakenly sending assets to addresses of other incompatible blockchains.
Market capitalization is the result of multiplying the circulating supply of a certain asset by the asset’s current market value. For Bitcoin, the market capitalization at the beginning of August 2023 is above $570 billion, which is the result of the more than 19 million BTC in circulation multiplied by the Bitcoin price around $29,600.
Trading volume refers to the total number of tokens for a specific asset that has been transacted or exchanged between buyers and sellers within set trading hours, for example, 24 hours. It is used to gauge market sentiment, this metric combines all volumes on centralized exchanges and decentralized exchanges. Increasing trading volume often denotes the demand for a certain asset as more people are buying and selling the cryptocurrency.
Funding rates are a concept designed to encourage traders to take positions and ensure perpetual contract prices match spot markets. It defines a mechanism by exchanges to ensure that future prices and index prices periodic payments regularly converge. When the funding rate is positive, the price of the perpetual contract is higher than the mark price. This means traders who are bullish and have opened long positions pay traders who are in short positions. On the other hand, a negative funding rate means perpetual prices are below the mark price, and hence traders with short positions pay traders who have opened long positions.
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