- Only 62.8 ETHs have been subscribed to, and $390,300 has been transacted in a single day for the Ethereum ETF in Hong Kong.
- The US House approves FIT21, classifying cryptocurrency tokens as commodities or securities; it is sent to the Senate for more elaboration.
Ethereum is becoming more and more popular, although participation in the Hong Kong Ethereum spot ETF was surprisingly limited.
On May 22, SosoValue data showed the ETF’s single-day net subscription was merely 62.8 ETH, and that the entire single-day transaction volume was just $390,300. This shows the Ethereum ETF market in Hong Kong is not very interesting to investors, according to a tweet from popular crypto journalist Collin Wu.
Although the popularity of Ethereum has increased significantly in recent days, the Hong Kong Ethereum spot ETF's single-day net subscription on May 22 was only 62.8 ETHs, and the total single-day transaction volume was only $390,300, showing the extremely low participation of…
— Wu Blockchain (@WuBlockchain) May 23, 2024
Viewpoint of a Bloomberg Analyst on Crypto ETFÂ
James Seyffart, a Bloomberg analyst, discussed the prospects for cryptocurrency ETFs in the future. Seyffart predicted that the SOL spot ETF will be approved in a few years after the CFTC approves the futures ETF, with the Financial Innovation and Technology for the 21st Century Act (FIT21) maybe speeding up the process.
But SEC isn't dancing around SOL's status like they have ETH. Those lawsuits against COIN and Kraken and others flat out say "Solana is a security" lol. Which could very easily make this a very rocky road
— James Seyffart (@JSeyff) May 22, 2024
He did point out, though, that Solana’s SEC security designation could make the ETF clearance process more difficult. Seyffart also said that Dogecoin (DOGE) and Litecoin (LTC) ETFs don’t seem to be in high demand.
FIT21 Is Passed by the US House of Representatives
Beside that, the U.S. House of Representatives passed the Financial Innovation and Technology for the 21st Century Act (FIT21) by a vote of 279 to 136. The law is attempting to provide clearer definitions of what a cryptocurrency token is as a security or a commodity.
After 71 Democrats broke party lines to endorse the measure, it will now go to the Senate for more polishing before maybe winning over President Biden.
Price Trends of EthereumÂ
Meanwhile, the price of Ether (ETH) as of writing was at $3,786.32, slightly up 0.73% from the previous day, according to CoinMarketCap data. Ethereum has been trending upward for the last week, up 25.32%. The good performance suggests that the market is quite confident in the worth of Ethereum.
On the other hand, co-founder of Ethereum and CEO of Consensys Joe Lubin made statements that were highlighted in a previous ETHNews article.
According to Lubin, the approval of Ethereum ETFs might cause a serious supply problem, which would be a positive indication for the ETH coin. Expecting such an acceptance has added to Ethereum’s generally positive market outlook.