Daily News | ETH Spot ETFs Obtained SEC Official Approval, Crypto Market Retreated; Plume Network Completed a $10 Million Financing

2024-05-24, 03:45

[//]:content-type-MARKDOWN-DONOT-DELETE
![](https://gimg2.gateimg.com/image/article/17165221151_16.png)
## Crypto Daily Digest: The spot Ethereum ETF has been officially approved by the US SEC, affecting Bitcoin's entry into a "mild decline"; Plume Network completed a $10 million financing
Firstly, let's take a look at the trading activities of <a href="/id/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> ETFs. According to Farside Investor data, on March 6th, Grayscale Bitcoin spot ETFs (GBTC) continued to experience outflows of $13.7 million in funds; Meanwhile, Fidelity Bitcoin spot ETF (FBTC) inflow of $19.1 million, ARK 21Shares Bitcoin spot ETF (ARKB) inflow of $2 million.

**Spot <a href="/id/price/ethereum-eth" target="_blank" class="blog_inner_link">Ethereum</a> ETF has been officially approved by the US SEC**
The United States Securities and Exchange Commission (SEC) has approved the launch of spot Ethereum Exchange Traded Funds (ETFs) in the United States.

On May 23, The SEC approved the "19b-4" document submitted by VanEck, BlackRock, Fidelity, Grayscale, Franklin Templeton, ARK 21Shares, and Invesco Galaxyand Bitwise, in which, the SEC approved a rule change that allows spot Ethereum ETFs to be listed and traded on their respective exchanges. Although some speculate that securities regulators have been investigating whether to mark ETH as a security, the US Securities and Exchange Commission has made this milestone decision.

Just the day before the SEC approved the bill, US House members voted in favor of a legislation that many believe will provide more regulatory clarity for the crypto industry. The 21st Century Financial Innovation and Technology Act will clarify the responsibilities of the SEC and the Commodity Futures Trading Commission, but it still needs to be passed and signed into law by the Senate.

With the continuous progress of approval for spot Ethereum ETFs, several Bitcoin miners and Bitcoin related stocks fell with the overall market on Thursday. Hut 8's stock price led the decline, falling by 10%, while peers such as Riot Platforms and Marathon Digital fell by about 7.6% and 5.5%, respectively. MicroStrategy fell 6.2% due to its large supply of BTC, which many see as a representative of Bitcoin prices.

The stock prices of several spot Bitcoin ETFs have fallen by 3% to 4%; However, analyst Mark Palmer suggests that these sell-offs may only be short-lived.

The analyst from Benchmark Stock Research believes that today's price trend is a mild pullback, "but we still believe that favorable supply and demand dynamics will support price increases in the coming months." "Compared to the past, approving spot Ethereum ETFs aligns with the US government's more proactive regulatory stance on cryptocurrencies."

**Plume Network raised $10 million in seed funding**
Plume Network is a modular layer 2 network that focuses on bringing real-world assets (RWAs) onto the chain. The company raised $10 million in seed round financing led by Haun Ventures.

Plume is a modular, Ethereum Virtual Machine (EVM) compatible Layer 2 network focused on RWA. Plume claims, "So far, there is no permissionless blockchain equipped with a full stack RWA infrastructure that can deploy any asset class in compliance." It also adds that its platform will allow users to do RWA related things, such as earning profits, borrowing, trading, and using leverage for speculation. ".

Plume is currently in a private testnet and has stated that it has established over 80 RWA and DeFi projects on its network, covering collectibles, alternative assets, synthetic materials, luxury goods, real estate, borrowing/lending agreements, and permanent decentralized exchanges.

Plume has been running a private testnet for the past few months and is currently transitioning to the next phase. Yin stated that its open incentive testing network will be launched in the coming weeks, and the main network will be launched later this year.

## Market Trends: ETH spot ETF approved key documents, Altcoin season may come
**BTC and ETH：**
Yesterday evening, BTC fell below the key support level of $66,500, indicating a short-term weakness in the market.
ETH briefly rose to $3,600 and then rebounded to $3,900, showing higher volatility. The increase in ETH volatility is likely due to market sentiment fluctuations triggered by the SEC's announcement of key documents for ETH spot ETFs.

**The decline in BTC dominance:**
The BTC ruling rate has plummeted by 2%, indicating that funds are flowing towards other crypto assets, especially the Altcoin market. This usually indicates that Altcoins may perform better than BTC in the short term.
### Macroeconomic Factors:
**The pullback in US stocks:**
The pullback in US stocks may have a chain reaction on the crypto market, and investors need to keep an eye on the trends in traditional financial markets.

**PMI data and expected interest rate cuts:**
The PMI data has risen to a new high in two years, indicating a recovery in economic activity. The expected first interest rate cut has been postponed to December, which may affect investors' risk appetite.
### Market Hotspots:
**ETH spot ETF:**
The SEC announced the approval of key documents for ETH spot ETFs, but it will still take several months for official approval. Nevertheless, this news has significantly increased market interest and volatility in ETH. With the advancement of ETFs, The market demand for ETH may further increase, and investors should closely monitor relevant developments.

**ETH-series asset performance:**
ENS, ETHFI, MANTA, ETC and other ETH series assets have surged, demonstrating market confidence in the ETH ecosystem.

ETHFI has announced the launch of a re-staking credit card business, which may further enhance its market value and user base.

**Meme concept:**
Meme concept coins such as PEOPLE, PEPE, and MANEKI continue to soar. PEPE has hit a historic high for several consecutive days and currently ranks in the top 20 of the entire market in terms of market value.

MANEKI's amplitude exceeded 30% yesterday, and the project team announced that the UFC's first ranked player in the early stages, Merab Dwalishvili, has become the spokesperson for the project, significantly increasing the project's exposure and market attention.

**RWA sector:**
The surge in RWA (Real World Assets) sectors such as ONDO, TOKEN, and TRU indicates market interest in this emerging sector.

The RWA sector may represent further integration between the crypto market and traditional financial markets, and investors can pay attention to potential opportunities in this field.

### Track Analysis:
**Focus on ETH and its ecosystem in the short term:**
Due to the impact of ETF messages, ETH and its related assets may perform well.

**Follow Meme concept coins:**
Although the Meme concept coin has significant fluctuations, its high exposure and market heat may bring short-term investment opportunities.

**Watch closely macroeconomic data:**
Changes in PMI data and expected interest rate cuts may have a significant impact on market sentiment, and investors should remain vigilant.

**The potential of the RWA sector:**
This sector may have significant growth potential, especially in the context of the integration of traditional financial markets and crypto markets.

Overall, the market is currently in a stage of high volatility, and investors need to operate cautiously, keeping an eye on market hotspots and macroeconomic changes.

## Macro: Strong economic data, but inflation concerns are putting pressure on stock prices, causing global stock markets to decline
On May 23rd, Reuters reported that despite Nvidia's strong revenue forecast driving its stock price soaring, the US stock market closed lower on Thursday as economic data showed that inflation remains a concern and may delay the Federal Reserve's interest rate cut.

Nvidia's stock price rose against the trend, predicting quarterly revenue to be higher than expected, and announcing a stock split, causing its stock price to rise 9.32% at the beginning of the session, closing above $1,000 for the first time, and also helping the Nasdaq and S&P 500 index set a record high in the session.

However, in terms of specific indices, the Dow Jones index fell 1.53%, the S&P index fell 0.74%, and the Nasdaq index fell 0.39%. Although Nvidia's rise drove the S&P 500 Technology Index up 0.56%, becoming the only sector to rise, overall chip stocks fell, with the Philadelphia Semiconductor Index slightly down 0.02%.

The data released by the United States on Thursday showed a decrease in initial jobless claims, while Standard & Poor's Global PMI preliminary survey showed that business activity expanded faster than economists predicted in May.

strong economic data and hawkish meeting minutes from the last Federal Reserve meeting earlier this week have led traders to reduce their bets on this year's interest rate cut. The market expects the Federal Reserve to only cut interest rates by 35 basis points in 2024, compared to the expectation of a 150 basis point cut at the beginning of the year.

On May 24th, Asian stock markets fell on Friday and the US dollar rose due to strong US economic data, enhancing the prospect of maintaining higher interest rates. The Federal Reserve may not be in a hurry to cut rates, thus keeping investors away from risky assets.

The MSCI Asia Pacific Stock Index fell 0.5% and may fall 1% this week, ending four consecutive weeks of upward momentum. The Chinese stock market remained largely unchanged in the early trading session, with blue chip stocks falling 0.05%. The Hang Seng Index in Hong Kong fell by 0.33%. The Nikkei Index in Japan fell 1.45%.

The US dollar index rose nearly to 105.06 this week, expected to record its largest weekly increase since mid April. The rise of the US dollar continues to put pressure on the Japanese yen. The latest exchange rate of the Japanese yen against the US dollar was 157.03, which is not far from the three week low of 157.19 hit on Thursday.

According to data released by the government on Friday, Japan's core inflation rate slowed down for the second consecutive month in April, due to a decrease in food inflation rate, but still remaining at the central bank's target level of 2%.

Regarding commodities, oil prices remain stable, with Brent crude oil futures priced at $81.39 per barrel, while West Texas Intermediate (WTI) crude oil futures in the United States are priced at $76.87 per barrel.

Gold prices rose 0.24% to $2,334.16 per ounce, but have fallen 3.3% for the week since the end of September.

<div class="blog-details-info">
<div>Author:**Sherry S. & Icing**, Gate.io Researcher
<div>Translator:Joy Z.
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
</div>

Konten

Credit Ranking

Complete Gate Post tasks to upgrade your rank