. Daily Crypto Analysis - SEC Delays Grayscale's Ethereum ETF, New Deadline Set.

Daily Crypto Analysis – SEC Delays Grayscale’s Ethereum ETF, New Deadline Set.

Daily Crypto Analysis – SEC Delays Grayscale’s Ethereum ETF, New Deadline Set.

06 Dec 2023

Introduction

In today’s financial landscape, a spotlight is cast on the evolving dynamics of the cryptocurrency market, with a particular focus on Ethereum (ETH/USD). Recent developments surrounding the potential approval of a spot Ethereum Exchange Traded Fund (ETF) by the US Securities and Exchange Commission (SEC) have ignited a surge of interest and speculation. Amidst regulatory delays and shifting deadlines, market players navigate the intricate terrain of Ethereum, exploring both its technical outlook and the broader crypto market dynamics. This report delves into the SEC’s decision delay for Grayscale’s Ethereum trust conversion, the ensuing market sentiments, and the technical analysis of Ethereum’s price movements. As we unravel the timelines, deadlines, and potential outcomes, the market’s pulse is examined to provide valuable insights for investors and enthusiasts alike. Additionally, we touch upon the contrasting perspectives in the traditional finance realm, exemplified by notable figures like Peter Schiff, offering a comprehensive view of the current financial landscape where traditional and digital assets intersect. Join us on this journey through the latest developments and market analyses that shape the narrative of Ethereum in the contemporary financial arena.

Market In Focus Today – ETH/USD

SEC Delays Decision on Grayscale’s Ethereum Trust Conversion to ETF

The journey towards the approval of a spot Ethereum ETF in the United States has encountered a recent development. The US Securities and Exchange Commission (SEC) announced a delay in the decision for Grayscale’s Ethereum trust conversion into a spot Exchange Traded Fund (ETF). The SEC extended the evaluation period, setting a new deadline for Grayscale to January 25, 2024, citing the need for additional time to consider the proposed rule change and related issues. Despite the delay, optimism persists within the crypto community regarding the future of spot Ethereum ETFs. Bloomberg ETF analyst James Seyffart suggested that such delays are typical, emphasizing that the Grayscale Ethereum trust filing delay was expected. Timeline for Spot Ethereum ETF Approval Seyffart shared a table of seven spot Ethereum ETF applicants, including VanEck, 21Shares & ARK, Hashdex, Grayscale, Invesco & Galaxy, BlackRock, and Fidelity, along with their respective deadlines. He hinted at potential approvals by mid-2024, responding to criticisms with an optimistic outlook. Bloomberg’s Eric Balchunas indicated strong odds of approval for the first filers, Ark and VanEck, by their final deadline on May 23, 2024. He noted that these filers are expected to use the same mechanics as spot Bitcoin ETFs, and Ether futures have already received approval from the US SEC. Next Deadlines and Tension Building Up The upcoming Ethereum ETF deadlines range from December 23 to 26 for VanEck, Ark Invest, and Invesco & Galaxy, followed by Hashdex on January 1. The SEC’s decision delays are anticipated for this batch of filings, given the unlikelihood of a spot Bitcoin ETF approval by then. BlackRock’s iShares and Fidelity Ethereum Fund face deadlines on January 25 and January 21, 2024, respectively. These dates are critical, potentially involving an extension, requests for more information, or a final decision. Tension heightens toward the final deadlines for all Ethereum ETF filers, with VanEck and ARK Invest expected for May 23 and May 24, 2024, respectively. Other notable filers, including Hashdex Nasdaq Ethereum ETF and Grayscale’s Ethereum Trust Conversion (ETHE), await decisions by May 30, 2024, and June 18, 2024, shaping the timeline for potential approvals.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 2174.52 | Positive Crossover | Bullish
  • MA 20 : 2106.30 | Positive Crossover | Bullish
  • MA 50 : 1973.82 | Positive Crossover | Bullish

Simple :

  • MA 10 : 2141.95 | Positive Crossover | Bullish
  • MA 20 : 2083.45 | Positive Crossover | Bullish
  • MA 50 : 1941.70 | Positive Crossover | Bullish

RSI (Relative Strength Index) : 72.03 | Sell Zone | Bearish

Stochastic   Oscillator : 92.55 | Neutral Zone | Neutral

Resistance   And Support Levels :

  • R1 : 2293 R2 : 2505
  • S1 : 1852.42 S2 : 1767.97

Overall Sentiment : Bullish Market Direction : Buy

Trade Suggestion : Limit Buy : 2293 | Take Profit : 2505 | Stop Loss : 2187

Elsewhere In The Crypto Market

Peter Schiff, chief economist at Europac, shared his perspective on recent movements in the gold and bitcoin markets. Schiff suggested that the pullback in gold prices, following their all-time high levels last week, created an opportunity for bitcoin prices to rise simultaneously. While admitting his criticism of bitcoin, Schiff stated: This could be Bitcoin’s swan song. The speculative frenzy around spot Bitcoin ETFs will end soon. Bitcoin’s collapse will be more spectacular than its rally. Schiff criticized CNBC reports that referred to bitcoin as “digital gold,” arguing that other cryptocurrencies rallied as part of a broader market movement. He concluded that none of these tokens are “digital gold” but rather modern versions of “fools’ gold.” Schiff contrasted bitcoin’s market movements with those of gold, asserting that the gold rally was genuine. In a subsequent post, he explained that the gold pullback to $2000-level prices resulted from natural profit-taking and speculative shorts entering the market. Schiff believes that gold prices are rising due to the anticipated crash of the dollar and the U.S. economy, prompting global powers to increase gold purchases as a “viable alternative” to the U.S. currency.

Key Economic Events & Data Release Today:

8:30PM(IST)-USD-ADP Non-Farm Employment Change