Ethereum
Hong Kong plans to include stakes in Ethereum ETFs, which could help increase trading volume.
- Hong Kong issuers are reportedly working to integrate stakes into their ETH ETFs.
- ProShares submits 19b-4 application for spot ETH ETF.
- Ethereum will likely continue its limited movement over the weekend.
Ethereum (ETH) is down more than 1% on Friday after news that Hong Kong will allow issuers to integrate staking features into their spot ETH ETFs. ProShares has also submitted a 19b-4 application for a spot ETH ETF to the Securities & Exchange Commission (SEC).
Daily market summary: Hong Kong ETFs and ProShares join the bandwagon
Ethereum ETFs are the main topic of discussion around the number one altcoin. Here are the latest market players:
- Hong Kong asset managers are reportedly working on integrating staking features into their Spot Ethereum ETFs, according to Yat Siu, co-founder and executive chairman of Animoca Brands. Hong Kong crypto ETFs have struggled to attract investor attention despite the enthusiasm generated by their initial launch.
However, with the added benefits of staking, Hong Kong ETH ETFs could be attractive to investors around the world, especially as the SEC has signaled that it will not allow issuers to offer staking if/when spot ETH ETFs would go live.
Learn more: Active Users in the Ethereum Ecosystem Increased 55% in Q1, 2x ETH ETF Sees Impressive Volume
- Asset manager ProShares submitted a Form 19b-4 to the SEC on Thursday, indicating its intention to issue Ethereum spot ETFs on the New York Stock Exchange (NYSE). The move places ProShares as the final member of the list of potential spot ETH ETF issuers.
The SEC previously approved 19b-4 filings from eight issuers on May 23, including Van Eck, Bitwise, BlackRock, Fidelity, Franklin Templeton, Invesco & Galaxy, Grayscale and 21Shares. Following approval, issuers submitted updated S-1 registration statements with the SEC, which the agency must approve before the ETFs go live.
Read also : Ethereum Open Interest Rises 50%, SEC Chairman Says ETH ETF Launch Will Take Longer
- SEC Chairman Gary Gensler told Reuters on Wednesday that the timing of the launch of spot ETH ETFs depends on issuers’ reaction to the SEC’s comments on their S-1s.
ETH Technical Analysis: Ethereum to Maintain Limited Movement Over the Weekend
Ethereum is trading around $3,781 as it continues its range-bound move on Friday. The ETH long/short ratio is tilted toward the shorts, with a difference of 48% to 52% over the last 24 hours, according to Coinglass data. This indicates a slight bias towards a bearish view, especially since long ETH liquidations stand at $58.3 million compared to $7.3 million in short liquidations.
Learn more: Ethereum Leveraged ETFs Launch as Price Unresponsive
Given current market conditions, Ethereum will likely remain above the $3,730 support.
ETH/USDT 4-hour chart
However, higher bearish sentiment will see the $3,618 support become the next key price to watch. ETH could maintain the horizontal movement over the weekend and before starting another attempt towards the $3,901 resistance.
A successful move above resistance will see ETH begin a move towards the yearly high of $4,093 before aiming for a new all-time high.
A daily basis candlestick a close below the $3,300 level will invalidate the bullish thesis.
Ethereum Development FAQ
After the merge, the Ethereum community next considers the Sharding upgrade, which is planned for later in the year. The development can be summed up in four words: “scalability through more efficient data storage.” The software update will increase the capacity of the blockchain, expanding the amount of data that can be stored or accessed. At the same time, all services running on top of the Ethereum blockchain will benefit from significantly reduced transaction fees.
A fork is the splitting of a blockchain after the developers have agreed and implemented upgrades. The decision comes after these developers reached consensus on a software upgrade. The next part will see one part continuing with the status as is, while the other will proceed with new features combined with the old ones. A hard fork essentially involves a permanent divergence of a new sidechain from the original, while a soft fork does the same, with the only difference being that it is temporary.
EIP-4844 is a proposal for improving the Ethereum network. The upgrade promises reduced gas fees, which is an attractive offer considering the high transaction costs that continue to deter crypto players. This has been a long-standing concern for the Ethereum network. The proposal is also called “proto-Danksharding”, with an unparalleled ability to increase the speed of transactions on the Ethereum blockchain. At the same time, it helps reduce transaction costs as everything becomes decentralized.
Gas Token is an innovative new Ethereum contract in which users can tokenize gas on the Ethereum network. This means they can store the gas when it is cheap and start deploying it once the market moves north. Using the Gas token helps subsidize high gas prices on transactions, meaning investors can do everything from arbitrage on decentralized exchanges to pre-purchasing initial coin offerings (ICOs).