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Crypto SWOT: Eleven spot Bitcoin ETFs were approved by the U.S. SEC. Are Ether ETFs next?

Kitco Media
By Frank E Holmes
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Crypto SWOT: Eleven spot Bitcoin ETFs were approved by the U.S. SEC. Are Ether ETFs next? teaser image

Strengths

  • Of the cryptocurrencies tracked by CoinMarketCap, the best performer for the week was Ethereum Name Service, rising 80.10%.
  • Competition among prospective Bitcoin ETF issuers intensified this week leading up to the eventual approval of the funds by the U.S. SEC, as companies further slashed fees in a bid to make their products more attractive to investors, writes Bloomberg.
  • Believe it or not, Ether emerged as one of the biggest beneficiaries of the decision by U.S. regulators to approve the country’s first spot Bitcoin ETF this week. Ether rose 9% in the 24 hours following the announcement to $2,585, according to Bloomberg.

Weaknesses

  • Of the cryptocurrencies tracked by CoinMarketCap, the worst performer for the week was Klay, down 20.62%.

  • Some stocks linked to cryptocurrencies reversed early gains from SEC approval of spot Bitcoin ETFs. Shares in Coinbase Global and Robinhood Markets, for example, were among the stocks that fell on Thursday, writes Bloomberg.

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  • South Korea sought to choke off a potential flood of speculative cash heading to U.S. spot Bitcoin ETFs, reports Bloomberg, stoking confusion and roiling a slew of stocks. The Financial Services Commission said that brokering such ETFs may violate the existing government stance on virtual assets and capital markets law, the article explained.

Opportunities

  • Bitcoin pushed past $49,000 for the first time since December 2021 as trading commenced on the first U.S. ETF that invests directly in the biggest cryptocurrency, Bitcoin, according to Bloomberg.
  • Ethereum is emerging as the big winner from the U.S. approval of spot Bitcoin ETFs, writes CoinDesk, and one reason could be the potential for a spot Ether ETF next. In fact, BlackRock had previously filed an S-1 form with the U.S. SEC.
  • Circle Internet Financial said it had confidentially submitted plans to launch an IPO, more than a year after it scrapped a bid to list its shares via a blank-check deal. The $25 billion stablecoin provider filed a draft registration statement with the U.S. SEC, writes Bloomberg.

Threats

  • Leading up to the approval of spot Bitcoin ETFs this week, the U.S. SEC’s X account (formerly Twitter) was compromised on Tuesday with a fake post claiming that the agency had green lit plans to approve the funds, writes Bloomberg.
  • X has removed support for NFT profile pictures which is unsurprising given other social networks have also wound down their NFT experiments. The value of some of the high-priced tokens, such as the Bored Ape Yacht Club, have plummeted from the peak.
  • Cathie Wood of ARK Invest said she was taken aback by the U.S. Securities and Exchange Commission Chair Gary Gensler’s statement shortly after the agency approved around a dozen ETFs that will directly hold Bitcoin. “He just denigrated the whole crypto space. I couldn’t believe it,” Wood said in a Bloomberg Radio interview.
Kitco Media

Frank E Holmes

Frank Holmes is CEO and chief investment officer of U.S. Global Investors, Inc., a boutique investment advisory firm based in San Antonio that manages domestic and offshore funds specializing in the natural resources and emerging markets sectors. The company’s no-load mutual funds include the Global Resources Fund (ticker PSPFX), the World Precious Minerals Fund (UNWPX) and the Gold Shares Fund (USERX).

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