“Should Have Bought” is a news podcast featuring the ForkLog editorial team and friends, discussing the week’s major industry events and the hottest tokens.
Topics of the episode: the approval of spot Ethereum-ETFs and the subsequent market correction, an important US bill, a new currency for Telegram, and the rivalry between Lido and EigenLayer.
Special guest: Konstantin Lomashuk, managing partner of cyber•Fund, co-founder of P2P.org and Lido.
Participants: ForkLog authors Lena Jess, Alex K., Vasily Smirnov.
“Green Light” for Ethereum-ETF
On May 23, the US Securities and Exchange Commission (SEC) approved 19b-4 applications from issuers of spot exchange-traded funds based on Ethereum.
Among the approved companies are VanEck, BlackRock, Fidelity, Grayscale, Franklin Templeton, ARK Invest/21Shares, Invesco/Galaxy, and Bitwise.
However, the regulator did not grant approval for Hashdex, whose application deadline expires on May 30.
Trading will commence once the SEC signs the registration statements on Form S-1.
Industry experts believe the approval of Ethereum-based exchange-traded funds is an “implicit acknowledgment” by the Commission that the asset is not a security.
Sell on the News
Following the approval of the applications, the price of the second-largest cryptocurrency by market capitalization briefly surged above $3900, only to correct to around $3650.
Julio Moreno, head of research at CryptoQuant, noted that the market likely already priced in the regulator’s decision.
MN Trading founder Michaël van de Poppe expressed a similar view, stating that “the approval was already priced in with a strong 20% move.”
“Now it’s time to wait for the listing, and then inflows will show if there will be a strong continuation of growth,” said van de Poppe.
Analyst Captain Faibik highlighted the breach of the lower boundary of the “Rising Wedge” pattern on the weekly Bitcoin dominance chart. In his view, this signals the start of an altcoin season.
Important US Legislation
The US House of Representatives approved the FIT21 bill aimed at regulating the crypto market.
The bipartisan-supported document expands the powers of the CFTC to oversee cryptocurrencies and establishes procedures for trading digital commodities.
However, there are concerns within the Biden administration and among some members of Congress that FIT21 does not provide sufficient consumer protection. Meanwhile, industry representatives consider it a “historic” and necessary step towards establishing clear regulatory rules.
The bill now awaits consideration by the Senate.
Telegram’s New Currency
Starting June 12, Telegram will introduce its internal currency, Telegram Stars, for payments in bots and mini-applications.
This decision responds to Apple’s demands— the tech giant notified the messenger of a violation of the App Store policy, which prohibits accepting internal payments from clients, including crypto-assets. Otherwise, bots and mini-applications faced removal.
Users will be able to purchase the new currency in the App Store or Google Play and then use it for digital purchases. Payments for physical goods and services remain unchanged.
Developers can withdraw Telegram Stars at any time using the TON blockchain.
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