Daily Market Update: May 23, 2024

May 23, 2024

BTC is currently trading around $67,300 and ETH around $3,750.  Notable gainers in the last 24 hours are ETC, BONK, and TAO. The global crypto market cap is $2.65T, down 2.6% over the last day.  DeFi Total Value Locked is ~$107b and BTC dominance is around 54%.

Crypto prices are little changed as the market eagerly awaits the SEC’s decision regarding VanEck’s (and likely others’) 19b-4 applications for a spot Ethereum ETF.  Historical ETF approvals, including for the spot Bitcoin ETFs, have historically come around 3:45p EST, though this may not necessarily be the case for the ETH applications.  In addition to the actual decision, many will be closely watching the SEC commissioner statements, if any are made, around the potential approval order.  Looking ahead, while the issuers will still need SEC approval of their S-1 registration statements, ETF experts generally regard the 19b-4s as the key approval here, and Bloomberg has suggested that S-1 approval may come in two weeks, at which point the ETFs may launch.  If the SEC does indeed green light the spot Ethereum ETFs, it would be another seminal event for crypto, adding some regulatory clarity to spot ETH, easing access to the digital asset, and further legitimizing crypto as an asset class.

In addition, FIT21, which seeks to establish a comprehensive regulatory framework for digital assets in the US, passed in the House with flying colors yesterday.  While odds of Senate passage are less clear (the bill was said to face an uphill battle as of last week), passage in the House is particularly notable given the level of bipartisan support, the amount of progress made (this is the furthest such a comprehensive US crypto bill has made it), and as it demonstrates some loosening of the US’s view towards crypto.

Notable news includes: SEC Chair Gensler restated that most cryptocurrencies are securities; a bipartisan group of House lawmakers sent a letter to the SEC urging it to approve the spot Ethereum ETFs; Hong Kong is reportedly exploring the possibility of allowing Ethereum ETFs to stake; Robinhood launched gas-free trading on Arbitrum; Coinbase resumed XRP trading in New York; Japanese e-commerce giant Mercari launched ETH trading services; layer 1 blockchain Fantom formed the Sonic Foundation and Sonic Labs to support its Sonic blockchain; the Dfinity Foundation launched an API that allows Internet Computer smart contracts to work with any EVM-compatible chain; layer 1 blockchain NEAR launched an initiative to incubate and invest in AI infrastructure; and, EtherFi unveiled plans for a credit card tied to restaking holdings.

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Brian Rudick, Senior Strategist | TwitterTelegramLinkedIn

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