Weekly Recap: Spot Ethereum ETFs Approved, FIT21 Bill Passed, Bitcoin Reclaims $71K

Weekly Recap: Spot Ethereum ETFs Approved, FIT21 Bill Passed, Bitcoin Reclaims $71K

In this week’s recap, several significant developments have shaped the crypto landscape. U.S. regulators have approved eight issuers for spot Ethereum (ETH) exchange-traded funds (ETFs), Bitcoin (BTC) reclaimed the $71,000 mark, and the U.S. House of Representatives passed the FIT21 bill to ensure regulatory clarity in the crypto sector.

Spot Ethereum ETFs Receive Approval

The U.S. Securities and Exchange Commission (SEC) approved the 19b-4 filings from major financial institutions including BlackRock, Fidelity, Grayscale, Bitwise, VanEck, Ark, Invesco Galaxy, and Franklin Templeton for spot Ethereum ETFs. This decision followed the submission of revised forms by these firms, which excluded staking from their products.

While the final S-1 registrations are still pending, industry experts believe this approval could significantly boost Ethereum’s price. QCP Capital predicts a potential 60% increase, bringing ETH up to $6,000. The move has also spurred speculation about future ETF approvals for other cryptocurrencies, such as Solana and XRP.

Bitcoin Reclaims $71K

Bitcoin experienced a notable resurgence, spiking to a one-month high of $71,500. This rally was attributed to continued inflows into spot Bitcoin ETFs, which saw a cumulative $1.056 billion capital influx over the past week. Analysts also pointed to positive sentiment surrounding the expected approval of spot Ethereum ETFs as a catalyst for the price surge.

The broader crypto market mirrored Bitcoin’s performance, with multiple altcoins experiencing similar upswings. The total value locked (TVL) in decentralized finance (DeFi) hit a two-year high of $105.6 billion. Ethereum notably recorded its largest single-day gain of 19% on May 20, consolidating at a new high despite Bitcoin’s slight pullback.

Lawmakers Pass FIT21 Bill

In a significant legislative move, the U.S. House of Representatives passed the Financial Innovation and Technology for the 21st Century Act (FIT21). This bill aims to provide clear regulatory guidelines for the crypto industry. Despite criticism from SEC Chair Gary Gensler and concerns from the Biden administration about consumer protection, the bill received overwhelming support and will now move to the Senate for further deliberation.

Other Key Developments

  • Spot Bitcoin ETFs: Continued to see strong inflows, with a notable $305 million intraday on May 21.
  • WisdomTree Crypto ETPs: The London Stock Exchange approved WisdomTree’s launch of crypto ETPs backed by Bitcoin and Ethereum.
  • Coinbase and XRP: Coinbase resumed XRP trading in New York following discussions with authorities.
  • Uniswap vs. SEC: Uniswap responded to an SEC Wells Notice, indicating readiness to challenge the agency in court if necessary.

Trump and Crypto

Republican presidential candidate Donald Trump began accepting cryptocurrency donations, aiming to garner support from the crypto community. Additionally, the House passed a bill prohibiting the Federal Reserve from creating a dollar-backed Central Bank Digital Currency (CBDC).

Bitcoin Pizza Day and Kabosu’s Passing

The crypto community celebrated Bitcoin Pizza Day on May 22, marking the first real-world purchase made with Bitcoin. Over the past year, $135,000 worth of pizza was purchased using cryptocurrency. Meanwhile, the meme coin community mourned the passing of Kabosu, the Shiba Inu dog that inspired Dogecoin.

Blockchain Startups Raise $258M

Between May 19 and May 25, blockchain startups raised over $258 million. Farcaster led the funding rounds with a $150 million Series A. Other significant raises included Plume Network’s $10 million seed round and Blockless securing $8 million for its decentralized infrastructure project.

Jian Wen Sentenced

Jian Wen received a six-year and eight-month prison sentence for her involvement in a Bitcoin money laundering scheme.

Phantom Wallet Surges

Phantom Wallet’s popularity surged, surpassing Facebook in Google Play rankings.

This week’s developments highlight the dynamic nature of the crypto market, with regulatory progress, significant price movements, and ongoing innovation driving the industry forward.

Powered by Crypto Expert BD

Follow us on Twitter: https://x.com/CryptoExpert_BD

Join our Telegram channel: https://t.me/CryptoExpert_BD


No comments yet. Why don’t you start the discussion?

Leave a Reply

Your email address will not be published. Required fields are marked *