Crypto SWOT: Is the U.S. SEC ready to approve spot Ethereum ETFs?

Strengths

Of the cryptocurrencies tracked by CoinMarketCap, the best performer for the week was Ronin, rising 35.54%.
Bitcoin is on course to advance for a fifth straight month in what would be the token’s longest such winning streak since a pandemic-era rally oiled by easy money. A run of five straight monthly gains would be the longest since a six-month stretch spanning October 2020 to March 2021, writes Bloomberg.
Hong Kong will launch a consultation very soon on the proposed regulatory framework for over-the-counter venues applied in virtual assets, Secretary of Financial Services and the Treasury Christopher Hui said, and published by Bloomberg.

Weaknesses

Of the cryptocurrencies tracked by CoinMarketCap, the worst performer for the week was Jupiter, down 61.60%.
Binance Holdings’ efforts to re-enter the UK market are being frustrated by reluctance among prospective local partners to work with the world’s biggest cryptocurrency exchange amid regulatory opposition, writes Bloomberg.
The U.S. Justice Department announced charges against individuals for orchestrating at $1.89 billion cryptocurrency fraud scheme, according to a statement. “The defendants falsely represented that investors would receive substantial returns paid from cryptocurrency mining operations which did not in fact exist,” according to an Attorney General, writes Bloomberg.

Opportunities

The U.S. Securities and Exchange Commission is likely to allow exchange traded funds (ETFs) to hold the cryptocurrency Ethereum in May. Standard Chartered expects the SEC to rule on the application on the final date, which could lead to Ethereum climbing up to $4,000.

GSR, one of crypto’s oldest market makers, named former JPMorgan Chase & Co. executive Andreas Koukorinis as head of trading, reports Bloomberg, as the company seeks to expand its liquidity operations and services offered to traditional financial firms.
Demand for Bitcoin futures has eased following the U.S. debut of ETFs that directly hold the largest asset. Outstanding contracts form CME group Bitcoin futures dropped some 24% to 20,679 by January 30 after the 10 spot ETFs began trading three weeks ago, writes Bloomberg.

Threats

German prosecutors provisionally seized nearly 50,000 Bitcoin worth about $2.1 billion as part of an investigation into what they see as an illegal file-sharing platform. It’s the largest amount of Bitcoin ever secured by law enforcement in Germany, according to an article published by Bloomberg.
Somesing, a blockchain-based social karaoke platform in South Korea, suffered an exploit on Saturday and lost 730 million of its native token SSX, which amounts to $11.58 million. The platform reported to the National Police Agency for an investigation into the hacking incident and said it will alert Interpol, writes Bloomberg.
A Manhattan jury on Thursday found an Upper East side women guilty of funding terrorism after she used cryptocurrency to send financial support to several groups operating in Syria, writes Bloomberg.

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).

Please consider carefully the fund’s investment objectives, risks, charges and expenses. For this and other important information, obtain a fund prospectus by visiting www.usfunds.com or by calling 1-800-US-FUNDS (1-800-873-8637). Read it carefully before investing. Distributed by U.S. Global Brokerage, Inc.

All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor. Foreign and emerging market investing involves special risks such as currency fluctuation and less public disclosure, as well as economic and political risk.

The S&P/TSX Global Gold Index is an international benchmark tracking the world's leading gold companies with the intent to provide an investable representative index of publicly-traded international gold companies. The FTSE Gold Mines Index Series encompasses all gold mining companies that have a sustainable and attributable gold production of at least 300,000 ounces a year, and that derive 75% or more of their revenue from mined gold.

Holdings as a percentage of net assets as of 6/30/07: Jiangxi Copper (China Region Opportunity Fund 1.74%); Silvercorp Metals Inc. (World Precious Minerals Fund 2.78%, Global Resources Fund 0.89%, China Region Opportunity Fund 2.42%); Gold Fields Ltd. (Gold Shares Fund 6.05%, World Precious Minerals Fund 2.58%, Global Resources Fund 0.39%); Sino Gold Mining Ltd. (Gold Shares Fund 1.03%, World Precious Minerals Fund 0.58%, China Region Opportunity Fund 0.27%); Anglogold Ashanti (0.0%); Dynasty Gold (0.0%).

Tags:

crypto Bitcoin

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

opinion

Crypto SWOT: Is the U.S. SEC ready to approve spot Ethereum ETFs?

By Frank E. Holmes

Kitco Commentaries
Opinions, Ideas and Markets Talk

Frank E. Holmes

Tags:

‘Nothing stops this train. Nothing.’ – Lyn Alden on US deficit

Gold is the real de-dollarization play – Nassim Taleb

Right on track for gold price to hit $4,800 - Incrementum’s Ronald-Peter Stoeferle

With all the debt in the world, Gold will only look overbought when prices push above $4,000 - AuAg’s Eric Strand

Precious metals brace for breakouts with gold, silver and platinum on the move – FX Empire’s Zernov

opinion

Crypto SWOT: Is the U.S. SEC ready to approve spot Ethereum ETFs?

By Frank E. Holmes

Kitco CommentariesOpinions, Ideas and Markets Talk

Frank E. Holmes

Tags:

Kitco Commentaries
Opinions, Ideas and Markets Talk