Daily News | ETH Rebounded, Meme strengthened; Launch of Spot ETH ETFs was Delayed due to SEC Comments; 21 Shares Submitted S-1 File for Spot SOL ETFs

2024-07-01, 04:10

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## Crypto Daily Digest: The launch of spot Ethereum ETFs has been delayed due to SEC comments; 21 Shares submitted S-1 file for spot Solana ETF; Roaring Kitty faced securities fraud allegations in GME-related lawsuits
Firstly, let's examine 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 June 28, Grayscale Bitcoin spot ETFs (GBTC) experienced outflows of $27.2 million in funds. Meanwhile, Fidelity Bitcoin spot ETF (FBTC) experienced outflows of $25 million, iShares Trust Bitwise Bitcoin spot ETF (IBIT) had an inflow of $84.1 million, and ARK 21Shares Bitcoin spot ETF (ARKB) had an inflow of $42.8 million.

**The launch of spot <a href="/id/price/ethereum-eth" target="_blank" class="blog_inner_link">Ethereum</a> ETF has been delayed due to SEC comments**
The US Securities and Exchange Commission (SEC) has commented on the S-1 form and requested a resubmission before July 8, which has delayed the launch of the spot Ethereum ETF until mid- to late July. Although many people expect to launch Ethereum ETFs as early as July 2, the SEC has postponed this plan.

ETF analyst Eric Balchunas said that this new schedule means that the spot Ethereum ETF may be launched in mid- to late July. ETF Store President Nate Geraci pointed out that the previous round of S-1 revisions was relatively small, and the SEC is expected to approve issuers for trading within 14 to 21 days. Although the exact timeline is still uncertain, the SEC has indicated it may launch this summer.

The approval of the S-1 form is the second part of the two-step process required for ETF listing. The first part involves approving the 19b-4 forms submitted by the issuer in May. On May 23, the SEC approved the 19b-4 forms for eight ETF bidders.

**21 Shares submitted S-1 file for spot <a href="/id/price/solana-sol" target="_blank" class="blog_inner_link">Solana</a> ETF**
Investment company 21Shares submitted the S-1 form for Solana ETF to the US Securities and Exchange Commission, and its competitor VanEck also submitted a similar document on the same day. This is the second time the United States has submitted a SOL ETF application within a few days, which also confirms some analysts' predictions that VanEck's application submitted on June 27 will open the door for competitors seeking to launch Solana-based funds.

21 Shares, headquartered in Zurich, Switzerland, has managed a physically supported Solana Staking exchange-traded product with assets under management exceeding $846 million. It also manages a Bitcoin ETF that has been launched for trading.

"21 Shares is excited about the possibility of an ETF entering the Solana ecosystem in the United States," said Andrew Jacobson, legal director of 21 Shares. "We believe this is a necessary step for the crypto industry and aligns with our mission to launch easily accessible financial products centered around crypto assets." As of publication, SOL's trading price was $147.58.

The research director of VanEck believes that Ethereum will soon launch its series of ETFs, and now is the best time to approve SOL ETFs. However, from a practical perspective, it may be more difficult for SOL ETFs to pass the SEC review process.

**Roaring Kitty faced securities fraud allegations in GME-related lawsuits
**
Keith Gill, a stock trader known for the short squeeze on GameStop in 2021, has faced allegations of securities fraud due to a series of recent posts on social media that led to significant fluctuations in GameStop (GME) stock prices from May to June.

The lawsuit was filed on June 28 in the Eastern District of New York, with the aim of suing Gill for planning a "Pump and Dump" plan through a series of social media posts starting from May 13. The complaint alleges that Gill is guilty of securities fraud and failed to fully disclose the purchase and sale of his GameStop options, suspected of misleading his followers and causing losses to some investors.

The plaintiff Martin Radev, represented by law firm Pomerantz, stated that since mid May, he has purchased a total of 25 GME shares and 3 call options, and has suffered damage from the so-called "Pump and Dump".

Previously, Gill ended two years of social media silence by posting a series of mysterious emojis on his X account, causing GameStop's stock price to soar 180%. As of the close on May 14, the stock price soared from $17.46 to $48.75. As of June 13, Gill stated that he had exercised all 120,000 options, earning millions of dollars, and used these gains to further increase his holdings in GameStop stocks.

## Market Trends: Ethereum spot ETF approval is imminent, with a strong rebound in the market
BTC broke through $63,500 this morning, an important psychological and technical hurdle. Bitcoin's strong performance usually drives up the entire crypto market. In terms of technical analysis, if we stand firm at the $63,500 mark, the next target may be $65,000 or even higher.

ETH also broke through the $3,500 mark this morning. Ethereum's strong performance is not only due to its position as the second largest market value cryptocurrency but also to the continuous expansion of its ecosystem and increasing applications. $3,500 is an important resistance level, and if it can break through and stabilize, it may further rise to $3,700 or even $4,000.

Altcoins generally rebound with the overall market, especially in the strong performance of Bitcoin and Ethereum. Altcoins usually have greater volatility and upward potential. This is because funds will <a href="/id/price/flow-flow" target="_blank" class="blog_inner_link">Flow</a> into smaller tokens from the market, seeking higher returns.
### Macroeconomics:
US stock market decline: Although the PCE data released last Friday was in line with expectations, the market has already digested the CPI and PPI data in advance, and the PCE data has not changed the up and down market pattern of the US stock market. The performance of the US stock market has a certain impact on the crypto market, but currently, the independence of the crypto market becomes stronger.
### Market Hotspots:
**ETH Ecosystem:**
ENS and SSV: With the strong rebound of ETH, these Ethereum ecosystem projects have surged by over 20%. ENS (Ethereum Domain Name Service) and SSV (Staking Protocol) are important components of the Ethereum ecosystem, reflecting market confidence in the passage of Ethereum spot ETFs.

SEC sues Consensys: The US SEC announced the lawsuit against the Metamak development team Consensys and declared that staking projects such as LDO and RPL belong to securities. This may have some short-term negative impact on these projects.

**Meme Sector:**
Solana chain Meme coins such as MOTHER and POPCAT have surged by over 30%. Due to their fast and low-cost trading characteristics, Meme coins on the Solana chain have attracted a large amount of speculative funds.

Ethereum on-chain political Meme coins: MAGA rebounded by over 25%. Political Meme coins are prone to significant fluctuations driven by specific events or news.

Cat-type Meme coins: MOG has returned to the $0.000002 mark, just one step away from the new high.

**Token Unlocking:**
Leading token WLD in AI sector: Starting from July 24, WLD will unlock nearly $20 million tokens daily for a period of two years. Continuous token unlocking will bring selling pressure to the market, and investors need to be cautious, especially focusing on price fluctuations during the unlocking period.

The overall performance of the current market is strong, especially the breakthroughs in Bitcoin and Ethereum, which have brought confidence to the entire market. However, investors still need to monitor macroeconomic data and regulatory dynamics, which may have short-term impacts on the market. When choosing investment targets, investors should focus on high-quality projects within the Solana and Ethereum ecosystems while being wary of high-risk Meme coins and tokens that are about to face a large amount of unlocking and selling pressure.

## Macro: Market digesting inflation data, Wall Street index falling; Asian market opening sluggish
On Friday, June 28, as investors digested expected inflation data and weighed the political uncertainty after the US presidential debate, the US stock market's early gains gradually weakened and closed lower on Friday.

The index's performance is as follows: the Dow Jones index fell 0.11%, the Standard & Poor's index fell 0.41%, and the Nasdaq index fell 0.71%. In the S&P 500 index, the energy and real estate sectors performed the best, rising 0.42% and 0.62% respectively; Public utility stocks and communication services fell 1.08% and 1.63% respectively.

The data shows that the monthly inflation rate in the United States remained unchanged in May, which is an encouraging progress made earlier this year after strong price increases raised doubts about the effectiveness of the Federal Reserve's monetary policy. The report from the Ministry of Commerce also shows that consumer spending slightly increased last month, which enhances people's <a href="/id/price/optimism-op" target="_blank" class="blog_inner_link">Optimism</a> about the US central bank achieving a "soft landing" in the economy.

According to Federal Watch data from the London Stock Exchange, the market expects the likelihood of a rate cut in September to increase to 66% after the release of the Personal Consumer Expenditure Price Index. Although the Federal Reserve predicts that it will only cut interest rates once this year, traders still bet on two rate cuts, expecting inflation to continue to cool.

On Monday, July 1, the Asian market opened a new week, quarter, and half-year of trading, with investors focused on the data-intensive economic calendar.

Overall, Asian stock markets performed weakly on Monday as traders focused on the outlook for US interest rates. At the same time, the euro rose as in the first round of early elections in France, right-wing parties won despite receiving lower voter turnout than some opinion polls predicted. The euro rose 0.32%, European stock index futures rose 1%, and French OAT bond futures rose 0.15% as investors digested better-than-expected results, although uncertainty still exists.

The June Caixin Manufacturing Purchasing Managers Index report will reflect the current situation in China. Investors hope to see strong growth, but the results show uneven economic growth, persistent deflationary risks, and enormous pressure on the stock market and exchange rate, requiring more stimulus measures.

The manufacturing PMI released by the National Bureau of Statistics of China on Sunday was 49.5, unchanged from May, marking the second consecutive month of decline in manufacturing activity. The service industry PMI fell to 50.2, a new 5-month low, while the construction industry PMI fell to 52.3, the lowest level since July last year. These data all indicate economic growth, but at a slower pace.

The manufacturing PMI for several other Asian countries, including Japan, India, South Korea, and Australia, will be released Monday.

The MSCI Asia Pacific Stock Index rose 0.07%, while the Nikkei Index in Japan rose 0.57%. The Chinese stock market fell, with blue chip stocks falling 0.45%. The Hang Seng Index in Hong Kong remained unchanged.

Regarding commodities, oil prices rose slightly, with Brent futures rising 0.39% to $85.33 per barrel, and West Texas Intermediate crude oil futures in the United States rising 0.42% to $81.88 per barrel.

Spot gold rose 0.1% to $2,327.12 per ounce. Gold prices rose by over 4% in the second quarter. US gold futures fell 0.1% to $2,336.60.

<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>

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